Far East Horizon (3360) H2 2024 earnings summary

Executive summary

• Revenue remained stable at RMB37.7 billion in 2024, with a 0.55% year-on-year decrease; pre-provision operating profit was RMB9.3 billion.

• Net profit attributable to ordinary shareholders dropped 37.6% to RMB3.86 billion, mainly due to non-operating factors and a one-off cross-border income tax.

• Industrial operation revenue grew 9.78% to RMB16.18 billion, now 42.71% of total revenue, offsetting financial sector fluctuations.

• Equipment operation (HCD) expanded overseas and achieved profitability; hospital operation (HH) improved efficiency and profitability.

• Cash dividends distributed reached HK$0.55 per share, with a payout ratio above 55%; special dividends distributed in specie of HCD shares.

Financial highlights

• Total revenue was RMB37.7 billion, down 0.55% year-over-year; pre-provision profit fell 12.6% to RMB9.3 billion.

• Net profit attributable to ordinary shareholders dropped 37.6% year-over-year to RMB3.86 billion; EPS decreased 37.9% to RMB0.92.

• Total assets increased 2.53% to RMB360.39 billion; net interest-earning assets were RMB260.64 billion, down 3.14%.

• ROA was 1.27% and ROE was 7.80%, both declining from the previous year.

• Cost to income ratio rose to 48.98%.

Outlook and guidance

• Emphasis on prudent strategy, risk management, and ongoing market uncertainties.

• Continued focus on optimizing business structure, expanding equipment and healthcare operations domestically and internationally.

• Inclusive and green finance, digital transformation, and ESG integration remain key growth drivers.