Far East Horizon (3360) H1 2025 earnings summary

Executive summary

• Total revenue for H1 2025 was RMB 17.34 billion, down 3.88% year-over-year, with net profit attributable to ordinary shareholders rising 3.77% to RMB 2.16 billion.

• Financial services revenue grew 2.10% year-over-year, while industrial operation revenue declined 12.64%.

• Inclusive finance segment saw rapid growth, with net interest-earning assets up 28.39% and interest income up 124.10%.

• Gross profit margin decreased to 44.13% from 45.03% in H1 2024.

• Equipment operation faced domestic headwinds but expanded overseas, while hospital operations remained within target range.

Financial highlights

• Total assets reached RMB 363.8 billion, up 0.95% from year-end 2024; net interest-earning assets at RMB 266.6 billion (+2.30%).

• Net interest margin improved to 4.51% (up 4 bps year-over-year); net interest spread rose to 4.06%.

• Return on average assets was 1.21%, and return on average equity was 8.66%.

• Basic EPS was RMB 0.51, up 3.15% year-over-year.

• Cost to income ratio rose to 50.70% from 43.57% due to higher selling and administrative expenses.

Outlook and guidance

• The group will continue its “finance + industry” strategy, focusing on industrial upgrades, urban renewal, and model innovation.

• Financial services will target both top-tier and inclusive customers, while industrial operations will pursue international expansion and agile resource allocation.

• Horizon Healthcare aims to expand in lower-tier cities/counties, focusing on health management and sustainable growth.

• Board approved interim dividend of HKD 0.25 per share, unchanged from 2024, with a 50% payout ratio.

• Solid foundation for maintaining or improving dividend payout ratio in the future.