In the first half of 2022, the international and domestic environment was complex and volatile, with increasing risks and challenges. Although the environment was posing new challenges to China’s stable economic growth, the economy generally demonstrated a steady recovery. In reliance upon China’s real economy, the Group continued to adhere to the operational philosophy of “finance + industry”, and achieved stable growth in overall results in spite of the complicated and ever changing macro environment.
During the Review Period, the Group realized revenue of RMB17.72 billion, representing an increase of 9.46% year-on-year (“YoY”). Among which, the financial and advisory segment remained stable overall with a slight increase, accounting for 65.17% of the total income (before taxes and surcharges). Structurally, financial services maintained growth, while advisory services recorded decline. The industrial operation segment continued to record substantial growth with an increase of 21.13% YoY, accounting for over 30% of the total income (before taxes and surcharges). The profit attributable to holders of ordinary shares of the Company during the Review Period amounted to RMB2,842 million, representing an increase of 10.47% YoY, basic earnings per share reached RMB0.68, together with the return on average equity (ROE) of 13.58%, demonstrating a steady growth momentum.
Financial Business Developed Steadily with Significant Growth in Industrial Operation
In the first half of 2022, with respect to market competition, focusing on market changes and customer needs, the Group continued to strengthen the practice of the concept of “model innovation”, and accelerated its implementation at the level of financial services and industrial operations, so as to form differentiated advantages from strategy to tactics, thereby ensuring the healthy development of the Company in a highly uncertain environment.
In terms of financial business, to address the changes in financial needs in the market, the Group took “urban upgrading and industrial private bank” as its core strategy and simultaneously promoted the strategy in four aspects, namely the industry, customer base, regions and products. At the same time, the Group continuously strengthened the operational efficiency and service coordination of inclusive finance, overseas business, PPP investment, non-performing asset management and other businesses to ensure high-quality and stable development. During the Review Period, the income (before taxes and surcharges) of the financial and advisory segment was RMB11.60 billion, representing an increase of 4.17% YoY; Income derived from financial services increased by 12.39% YoY. In particular, interest income contribution from inclusive finance, commercial factoring, PPP investment, overseas business, asset business and other new business directions amounted to RMB1,187 million, representing an increase of 35.91% YoY. Income derived from advisory services decreased by 39.23% YoY mainly due to the active adjustment and continuous optimization of the Group’s service structure in response to customers’ needs after changes in the external operating environment.
During the Review Period, the overall asset quality of the Group remained safe and under control. The non-performing asset ratio remained at a low level of 1.06% as at 30 June 2022, which remained the same as at the end of last year.
In terms of industrial operation, the Group continued to stay close to the local markets, innovated service models, strengthened operational efficiency, emphasized management effectiveness, and highlighted differentiated competitive advantages. The income of the industrial operation segment sustained continuous growth. The industrial operation segment, which comprises of Horizon Construction Development, Horizon Healthcare and others, realized a total income of RMB6,198 million, representing an increase of 21.13% YoY. Income of the industrial operation segment increased to account for 34.83% of the total income.
In particular, as a leading equipment operation service provider in China, Horizon Construction Development actively expanded its business size and consolidated its competitive advantages. Horizon Construction Development realized an income of RMB3,565 million during the Review Period, representing an increase of 46.73% YoY. As a large medical group funded by social capital in China, Horizon Healthcare has been actively responding to the country’s call to encourage the communities to establish hospitals and expand the supply of quality medical services, continuing its focus on areas with scarce medical resources, and building a hospital network with unique Far East characteristics. During the Review Period, Horizon Healthcare realized an income of RMB2,067 million, representing an increase of 4.05% YoY.
In the first half of 2022, in the face of the complex and difficult external environment, the Group adhered to its original aspiration and followed its development vision of “vigorously building excellent enterprises”, placed more emphasis on the persistence and effectiveness of value creation, and continuously created incremental value for shareholders, customers, partners and employees. In the second half of the year, the Group will reinforce its strategic focus and operational efficiency, focus closely on the real economy, use finance as the major means to provide service, enrich service forms, enhance service capabilities, strengthen strategic synergies, and connect domestic and overseas markets, so as to lay a solid foundation for the Company’s sustainable development.
About Far East Horizon Limited
Far East Horizon Limited is one of China’s leading innovative financial companies focusing on the Chinese fundamental industries and leveraging the business model of integrating finance and industry to serve enterprises of greatest vitality with the support of the fast-growing and enormous economy in China. Based on its operational philosophy of “finance + industry”, Far East Horizon endeavours to realize its vision of “Integrating global resources and promoting China’s industries” by making innovations in products and services to provide our customers with tailor-made integrated operations services. Over the past more than 10 years, the Group has been leading the development of the industry, and has been listed among the Fortune China 500 and Forbes Global 2000.
Over the past two decades, the Group has evolved from a single financial service company into an integrated service provider with a global vision centered on China so as to facilitate national economic and sustainable social development. With the creative integration of industrial services and financial capital and with unique advantages in the organization of resources and value added services, we provide integrated finance, investment, trade, advisory and engineering services in healthcare, cultural & tourism, engineering construction, machinery, chemical & medicine, electronic information, public consuming, transportation & logistics, urban public utility as well as other fundamental sectors.
The Group, headquartered in Hong Kong, has business operations centers in Shanghai and Tianjin, and has offices in major cities throughout China such as Beijing, Shenyang, Ji’nan, Zhengzhou, Wuhan, Chengdu, Chongqing, Changsha, Shenzhen, Xi’an, Harbin, Xiamen, Kunming, Hefei, Nanning and Urumqi, forming a client service network that covers the national market. The Group has been successfully operating its multiple specialized business platforms in China and abroad in financial services, industrial investment, hospital investment and operations, equipment operation services, exquisite education, trade brokerage, management consulting, engineering services, etc.
The Company was officially listed on the Main Board of The Stock Exchange of Hong Kong Limited on 30 March 2011.
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