Asia Corporate News

China Success Finance Announces 2020 Interim Results

ACN Newswire

China Success Financial Group Holdings Limited (China Success Finance, together with its subsidiaries the “Group”, stock code: 03623) has announced its unaudited interim results for the six months ended 30 June 2020. During the reporting period, faced with challenges brought by the outbreak of Coronavirus Disease 2019 (COVID-19), the group paid close attention to the market trend and adopted prudent and steady development strategies. While steadily developing its traditional guarantee business, it sustained its other businesses pragmatically. However, as operating environment in various industries remained weary while the global economy continued to suffer from uncertainties, the steady development of the group’s major operations was unable to offset the negative impact of abovementioned factors. During the reporting period, the Group’s loss before taxation and loss for the period were approximately RMB 2.7 million and RMB 17.5 million, respectively. The Board did not recommend to distribute an interim dividend for 2020.

Zhang Tiewei, Chairman and Executive Director of China Success Finance indicated, “In the first half of the year, COVID-19 brought unprecedented shocks to the global economy. Faced with the difficult time, the Group focused on the prevention and control of epidemic, meanwhile grasping the opportunities brought by the government’s financial support to micro, small and medium sized enterprises and prosperous development in the Greater Bay Area. Through giving full play to its own advantages, the Group provided customers with more professional and efficient comprehensive financial services, while assisting customers to overcome hardships during the epidemic.”

In terms of guarantee business, with innovation and technology as its focus, the Group actively enhanced the development of financial technology business through investing resources, meanwhile exploring new service models to satisfy customers’ demand on personalized financial services during the reporting period. Capitalizing on the opportunities brought by the government’s financial support to micro, small and medium sized enterprises and the establishment of Foshan Financing Guarantee Fund, the Group further optimized its guarantee business, thereby enhancing its market competitiveness and laying a solid foundation for future business expansion.

Regarding financial leasing, factoring and asset management businesses, due to the increase of market uncertainty, the group continued to review its businesses in a prudent and pragmatic manner, in order to reduce cost and improve efficiency. Meanwhile, capitalizing on the government’s favorable policies, the Group made good use of its existing resources and actively explored opportunities in the field of integrated financial services in the Greater Bay Area, whilst strengthening its partnership with financial institutions and financial technology companies to jointly explore diversified cooperation models, thus providing customers with more comprehensive, efficient integrated financial services.

In the first half of 2020, a provision for impairment loss was recognized in the reporting period. Additionally, since the Group’s investment in associated enterprises recorded losses and operating expenses increased, a net loss was reported despite a substantial revenue growth in the Group’s major operations.

Looking forward, Mr. Zhang Tiewei said, “While the government has doubled its efforts in supporting micro, small and medium sized enterprises and the development of inclusive finance, the Group will seize the occasion to steadily develop its traditional guarantee business, while promoting the development of its financial technology business, in order to respond to market demand. In the future, the Group will continue to take root in the Greater Bay Area. With regards to market opportunities and its long-term development strategy, the Group will continue to explore new investment opportunities in agricultural projects by investments, equity purchases and acquisitions, in hopes of improving business flexibility and profitability, thus maximizing returns for investors and shareholders.”

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