China Everbright Limited Announces 2021 Interim Results

Profit Attributable to Shareholders of the Company Increased significantly by 133%

HONG KONG, Aug. 26, 2021 /PRNewswire/ --

Financial Highlights

 (in HK$ hundred million)

2021 1H

2020 1H

Change

Total amount of income

31.33

20.13

+56%

Profit attributable to shareholders of the Company

17.81

7.65

+133%

 - Profit from direct business operations (including profit from
Fund Management business, Strategic industry platform and
Financial investments)

17.45

7.93

+120%

- Cornerstone investments (certain portion of equity interests
in China Everbright Bank and Everbright Securities)

9.67

8.72

+11%

Less: Unallocated corporate expenses, taxes and profit
attributable to holders of senior perpetual capital securities

-9.31

-9.00

+3%

Earnings per share

 (HK$)

1.06

0.45

+136%

Interim dividend per share

 (HK$)

0.28

0.14

+100%

China Everbright Limited ("CEL" or "the Group", stock code: 165.HK) today announced its interim results for the six months ended 30 June 2021 ("the reporting period").

During the reporting period, CEL's overall operations showed strong performance, achieving total amount of income of HK$3.133 billion, a year-on-year increase of 56%. Profit attributable to shareholders of the Company was HK$1.781 billion, representing a significant year-on-year increase of 133%. The Group's key financial indicators rebounded strongly, gradually moving away from influencing factors such as the pandemic, the results of transformation and development are also gradually manifesting, with the overall value steadily increasing.

During the reporting period, CEL's fund-raising scale continued to grow, with the Group's newly added AUM amounting to approximately HK$3.7 billion, which increased the total AUM to HK$186.5 billion. The Group now has 79 funds under management, and the fund management business has 212 post-investment management projects.

The Board declared a 2021 interim dividend of HK$0.28 per share. (2020 interim dividend: HK$0.14 per share)

Financial Highlights of 2021 Interim Results

1. Key indicators rebounded strongly, maintaining a good momentum of continued progress in strategic ranking

In the first half of 2021, taking advantage of the favorable prospect for the recovery of the global economy, CEL proactively seized the opportunity to strengthen its core business and rebounded strongly in terms of income, profit and ROE. Total assets grew by 9%, breaking through the HK$100 billion milestone for the first time. The Group climbed nine places to 75th in the PEI 300 ranking compared to 2020, standing in the leading position among the other domestic institutions, while maintaining good momentum of continued progress in strategic ranking.

2. The scale of fundraising continued to grow, further enriching product portfolio

In the first half of 2021, the fundraising environment of China's private equity industry remained formidable. CEL realized fund-raising in Secondary Fund, Everbright Dynamic Bond Fund, Everbright Income Focus Fund, and CEL CSII Special Situation Fund, among others, with newly added AUM amounted to approximately HK$3.7 billion, which increased the total AUM to HK$186.5 billion, hitting a new record high. Meanwhile, CEL further enriched its product portfolio.

3. The number of IPOs hit record high in recent years, while the exit of projects has achieved fruitful results

In the first half of 2021, nine "three-universal and one-innovative" projects were listed on the Shanghai Stock Exchange, Hong Kong Stock Exchange, New York Stock Exchange, Nasdaq and other exchanges. Also, the Group led the number of IPO projects to a record high in recent years. Many funds and principal investment projects have completed the exit, creating excellent returns for investors.

4. Gave full play to the advantages of cross-border platforms, and achieved new breakthroughs in the domestic and international dual circulation

CEL continued to exert its advantages as a cross-border platform, proactively exploring the Chinese market and opportunities around the world to achieve new breakthroughs in the domestic and international dual circulation strategy. In Hong Kong, CEL joined hands with Hong Kong Science and Technology Parks Corporation to establish "Everbright Hong Kong Innovation Centre" and "CEL HK Innovation Fund" in driving technological transformation in the city. CEL also signed a shareholders' agreement with IP Group, a UK-listed company, to develop a joint venture in Hong Kong and launch a venture capital fund in China, supporting companies with high-growth and core technology that are willing to establish in the Chinese market, and helping them pave the way to the Chinese new technology space. Taking advantage of CEL's dual-platform in financing, the Group issued RMB4 billion medium-term notes in the Chinese inter-bank market, setting a record as the largest panda bond issuance by non-financial companies in China's domestic bond market in the first half of 2021.

5. Maintained its leading position for industrial platforms, as well as improved the industry-finance integration

CEL strengthened the collaboration and industry-finance integration with its industrial platforms, with each platform seeing steady development and maintaining its leading position in the industry. CALC demonstrated a strong business resilience, maintaining its position as one of the world's top 10 aircraft lessors. During the reporting period, CALC signed a confirmed order for 30 ARJ21 series aircraft and an intended order for 30 aircraft to help domestically produced aircraft expand into overseas markets with the Commercial Aircraft Corporation of China, Ltd.  Meanwhile, Everbright Senior Healthcare maintained its leading position in China with the number of beds reaching approximately 30,000. As for Terminus, it sustained its rapid growth with a substantial increase in valuation, and its robot won the German IF Design Award, with several representative projects launched. EBA Investments, on the other hand, has now ranked 1st in the "Top 10 Funds in terms of Comprehensive Strength among China Real Estate Funds" for seven consecutive years, while the Huaan Zhangjiang Everbright Park Close-ended Infrastructure Securities Investment Fund, jointly promoted by EBA Investments and Zhangjiang Hi-Tech, officially listed on the Shanghai Stock Exchange, becoming one of the first batch of infrastructure public REITs projects approved in Shanghai and Mainland China.

6. Proactively implemented the strategy of "Emission Peak" and "Carbon Neutrality", driving the advancement in ESG governance

In the first half of 2021, CEL continued to push forward its efforts relating to the "Everbright Belt and Road Green Fund", which focuses on screening investment projects in the field of green energy, green environment, green manufacturing, green living and others, to help economic development achieve a green and low-carbon transition. Adhering to the concept of sustainable development, CEL established an ESG committee to carry out the Group's ESG governance and optimize the Group's ESG system in a comprehensive and systematic manner from the top down, integrating ESG principles into the business decision-making process of the Group in order to implement the national strategy of "Emission Peak" and "Carbon Neutrality". Given the Group's promotion and practice of ESG principles, as well as its effective delivery of sustainable development, CEL received the honor of "2021 China's Top 20 Investment Institutions in ESG" from 36Kr.

Strategy and outlook

Looking ahead, the Group remains optimistic on the key role that technology will play in the economic and social changes happening around the world, and will strive to proactively adjust its fundraising strategies, innovate cooperation models, optimize operational efficiency, improve special task-handling capabilities through management, further integrate the Group's resources and deploy more resources for innovative technology, carbon neutrality, universal healthcare and other fields to strengthen its technology and green-oriented foundation for a technology-driven "PE+Industry" cross-border asset management platform.

Mr. Zhao Wei, Chairman of the Board of Directors of CEL, said, "The year 2021 is the first year of the 14th Five-year Plan, and also a critical year for CEL in terms of overcoming the pandemic through gradual recovery, transformation and development. We will resolutely execute our development strategy in response to the national strategic needs, and capitalize on specific opportunities such as technological revolution, industrial transformation and regional changes. While promoting China's technology innovation and the domestic and international dual circulation, CEL will also continue to strive for its strategic goal of becoming a world-leading cross-border asset management firm and stay committed to the mission and tasks bestowed by the times."

Mr. Zhang Mingao, President of CEL, said, "In the post-pandemic era and at a critical time for the global economic recovery, CEL continues to leverage its advantages in cross-border asset management and investment in accordance with the requirements of the Board of Directors, and enhance its ability in 'fundraising, investment, management and withdrawal'. Furthermore, the Company will continue strengthening its cross-border platforms by establishing a non-replicable core competitiveness across the platforms, which will provide the shareholders and investors with sustainable growth in returns."