(HONG KONG, 28 June 2016) China Innovative Finance Group Limited ("CIFG" or the "Company" and together with its subsidiaries, the "Group"; stock code: 0412.HK) is pleased to announce its audited annual results for the year ended 31 March 2016 (the "Period").
During the Period, the Group's revenue significantly increased by 24.5 times to HK$96.992 million for the year ended 31 March 2016. The Group has recorded a turnaround performance in the year, which was mainly attributable to fair value gains on investments at fair value through profit and loss of approximately HK$241 million (for the year ended 31 March 2015: approximately HK$33.907 million) as well as financial leasing income of approximately HK$69.655 million (for the year ended 31 March 2015: nil). Profit for the year attributable to owners of the Company was HK$71.696 million (for the year ended 31 March 2015: loss of approximately HK$129 million).
Mr. Yau Wai Lung, Executive Director of CIFG said, "In October 2015, the Group has officially changed its name as China Innovative Financial Group Limited, which turned a new leaf for the Group's development. During the period, the Group has mapped out some strategies for short term to long term so as to become an integrated financial platform providing a comprehensive spectrum of financial services. Currently, the Group's core business includes financial leasing, operation of an asset trading platform (Shenzhen Asia-Pacific Leasing Assets Exchange Center Co., Ltd. (referred to as "LAECAP")), equity investment, money lending, etc. CIFG will capitalise on its extensive experience to create values for society and shareholders with its innovative businesses."
During the Period, the Group is dedicated to expanding its exposure in financial sector and enhancing its market presence by scattering its business throughout the mainland China. The first strategic action was gaining support from strategic partners. Therefore, CIFG has completed the issuance of convertible bonds to its strategic partners, including China Taiping Insurance Holdings Company Limited, Haitong International Securities Group Limited and CCB International (Holdings) Limited. It manifests the confidence of the strategic partners in CIFG.
Moreover, CIFG entered into a strategic cooperation agreement with Taiping Petrochemical Financial Leasing Co., Ltd. in April this year that Taiping Leasing will grant a general credit facilities for the leasing business of CIFG and its financial leasing companies. The parties will commence their cooperation in the joint leasing business and sharing project earnings based on the source of business, the ratio of capital contributions and other factors, and will also actively refer quality leasing projects to the other party for development. CIFG will provide international leasing business services to Taiping Leasing with reference to the specific requirements of the financial leasing projects. The parties have agreed that the acquisition and disposal of leasing assets will be conducted by way of listing on LAECAP, a subsidiary of CIFG. Also, the Group has entered into a strategic cooperation agreement with internet financing platform Licaifan (理財範, www.licaifan.com) owned by Beijing Wangrong Tianxia Financial Information Services Co., Ltd (北京網融天下金融訊息服務有限公司) with the theme of "Listed Companies Industrial Financing". The Group will further expand into the internet financing sector through Licaifan's established platform, with a view to extending into consumer finance business while realising resource sharing. The cooperation is expected to generate synergy with our existing businesses.
The Group has been included in Morgan Stanley Capital International (MSCI) Hong Kong Small Cap Index. The inclusion in the MSCI Hong Kong Small Cap Index will expand CIFG's investor base and enhance its corporate image and market presence. This further assures the Group's development in new businesses.
Mr. Yau Wai Lung expressed, "The People's Bank of China has stabilised the Renminbi currency rate through foreign exchange reserves and tightening its capital controls. To support economic growth and enhance domestic liquidity, interest rates and deposit reserve ratio continued to decrease. Furthermore, General Office of the State Council promulgated the 'Guidance on Accelerating the Development of Financial leasing Industry' in September 2015 to support important policies on financial leasing industry. Riding on the rapid growth of financial service industry in China, these policies help enhancing CIFG's competiveness and providing huge support to the Group. Leveraging the stable and effective operating system established last year, the Group will continue to explore various business. By horizontal and vertical integration, the Group aims to improve its performance by the means of upscaling its assets and diversifying its product portfolio. Benefitting from the unique policies in Shenzhen Special Economic Zone, Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone and other provinces in China, the Group will continue to maximise its competitive edges and expand its customer base as well as transaction scale through acquisition, achieving the mid-term target of the Group."
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About China Innovative Finance Group Limited
China Innovative Finance Group Limited (stock code: 0412.HK) is a financial holdings institution listed on the main board of the Hong Kong Stock Exchange since April 1992. At the present, the Group's core business includes financial leasing, operation of an asset trading platform (Shenzhen Asia-Pacific Leasing Assets Exchange Center Co., Ltd. (referred to as "LAECAP")), equity investment, money lending, etc. The Company aims to provide an integrated financial platform offering a comprehensive spectrum of financial services by obtaining licenses and qualifications for banks, insurance, trusts, asset management and other financial institutions through partnership, equity investment or acquisition. CIFG has received continuous support from various renowned financial institutions in China, such as China Taiping Insurance Holdings Company Limited (stock code: 0966.HK), Haitong International and CCB International (Holdings), which have subscribed to the Group's convertible bonds, becoming strategic shareholders. CIFG is dedicated in becoming an integrated financial platform providing a comprehensive spectrum of financial services. CIFG has been included in MSCI Hong Kong Small Cap Index, effective as of the close of 31 May 2016.
This press release is distributed on behalf of China Innovative Finance Group Limited by Anli Financial Communications Limited.
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