OP Financial Limited (1140.HK) Announces FY2019/2020 Interim Results

Profit for the Period amounted to HK$266 million, turning loss into profit YOY

Corporate News 29 Nov 2019

(Hong Kong, 29 November 2019) OP Financial Limited (“OP Financial” or “the Company”, stock code: 1140.HK) along with its subsidiaries (“the Group”) announced its FY2019/2020 interim results for the period ended 30 September 2019 (the “Period”).

 

Results Highlights

  • Profit for the Period amounted to HK$266 million, as compared to a loss of HK$34.96 million for the same period last year.
  • Total comprehensive income for the Period amounted to HK$266 million, as compared to a loss of HK$ 35.34 million for the same period last year.
  • Basic earnings per share amounted to HK$9.17 cents, as compared to a loss of HK$1.19 cents for the same period last year.
  • Net asset value (NAV) amounted to HK$5,751 million, or HK$1.98 per share, as compared to HK$5,630 million and HK$1.94 respectively as at 31 March 2019.

 

The trade war between China and the US, which erupted in the first half of 2018, has brought about uncertainties for the prospect of global economy and made the markets deeply concerned. Under this circumstances, despite facing challenges, OP Financial’s portfolio still achieved stable growth during the Period benefiting from the Company’s prudent and diversified investment strategy and rigorous risk management approach, which drove the overall financial performance achieving significant improvement compared with the same period last year. Profit for the Period recorded a gain of HK$266 million, as compared to a loss of HK$34.96 million for the same period last year. Total comprehensive income recorded a gain of HK$266 million, as compared to a loss of HK$35.34 million for the same period last year. NAV increased to HK$5,751 million from HK$5,630 million as at 31 March 2019 and NAV per share increased to HK$1.98 from HK$ 1.94 correspondingly, mainly attributable to the increase in the value of multiple investments.

 

During the Period, the Company continued to carry out the established investment strategy of focusing on China’s fast-growing industries and identifying market leaders or potential leaders thereof to add to its core holding portfolio, and centering on the core holding companies to explore medium- and short-term investment opportunities along their industrial chains. Considering the uncertainty and volatility of global macro economy and capital markets, OP Financial remained prudent on new equity investment and endeavored to make maximum value on capital and financing capability as a public company.

 

During the six months ended 30 September 2019, OP Financial invested HK$1,217 million mainly through private equity and debt instruments, and the divestment/disposals amounted to HK$834 million. With respect to short-term arbitrage investment, OP Financial invested in debt instruments providing financing for borrowers and at the same time generating marginal and diversified return for the Company.

 

Mr. ZHANG Gaobo, Chairman of OP Financial commented, “The trade war between China and the US has been exerting pressure on the economy of both countries, and is expected to drag down the growth of global economy. Despite this, we still have implicit faith in the long-term development of China’s economy, and firmly believe that China can gain global leading edges in many sectors. We will continue to implement the investment strategy of centering on long-term core holding and focusing on China’s fast-growing industries, such as healthcare and environmental protection. We will leverage the platform advantage of a public company to explore the medium- and short-term investment opportunities along core holding companies’ industrial chain, enabling them to build their ecosystem through capital and at the same time achieving the synergies of our investment strategy and creating marginal and diversified returns for shareholders.”

 

Dr. LIU Zhiwei, Chief Executive Officer of OP Financial commented, “The total comprehensive income for the Period recorded a gain of HK$266 million, turning a profit as compared to a loss of HK$35.34 million for the same period last year. It proofs the effectiveness of our investment strategy. Going forward, OP Financial will vigorously explore the potential investment opportunities in the Greater Bay Area (GBA) leveraging three key elements in the area, which are industry, technology and capital, and taking advantage of the preferential government policies. Combining the advantages of GBA with our own ones of cross-border and cross-sector investment and financing capability, we endeavor to capture the historic opportunities and achieve our long-term strategic goal. ”

 

About OP Financial Limited

OP Financial Limited (1140.HK), listed on the main board of the Stock Exchange of Hong Kong Limited, is a cross-border and cross-sector investment company with strong capability of investment, financing and industry consolidation holding its portfolio covering listed and unlisted companies in multiple sectors. OP Financial builds its cross-cycle portfolio flexibly based on different holding period and strategy, including long-term core holding, medium-term PE/VC and short-term arbitrage, striving to create diversified and steady returns for shareholders.

 

Full details of the 2019/2020 interim results have been posted on the designated website of Hong Kong Exchanges and Clearing Limited at www.hkexnews.hk and corporate website www.opfin.com.hk

 

For more information, please contact:

 

Investor relations

 

Tel: (852) 2842 9688

 

Fax: (852) 2842 9666

 

E-mail: ir@oriental-patron.com.hk

 

Website: http://www.opfin.com.hk/