Far East Horizon Limited · HKEX:3360
Far East Horizon — FY2024 Earnings Presentation
41 slides from Far East Horizon's earnings presentation, March 2025
Slide 1: Far East Horizon Limited 2024 Annual Results
Far East Horizon Limited 2024 Annual Results March 2025
Slide 2: Disclaimer
Disclaimer This material is prepared by Far East Horizon Limited (the “Company”) and has not been independently audited. This document contains confidential and proprietary information, and its contents have not been verified by an independent third party. The Company does not guarantee the accuracy
Slide 3: Contents: Results Overview
Contents 1 Results Overview 2 Business Analysis 3
Slide 4: Operated in a prudent manner and maintained steady performance
Operated in a prudent manner and maintained steady performance • In 2024, facing the complex environment, the Company adhered to a prudent strategy, gave full play to its advantages of marketization, internationalization and professionalism, continuously strengthened business foundation, and achieve
Slide 5: Main business stable; multiple factors disrupted financial performance
The main business was stable and controllable, and multiple factors have been superimposed to disrupt the financial performance • Gross profit: The net interest income of the financial business decreased by approximately RMB700 million, and the consulting service fees decreased by approximately RMB3
Slide 6: Value shareholder returns and continuously increase dividends
Value shareholder returns and continuously increase dividends • Considering the impact of fluctuations of the environment, the Company has been continuously enhancing shareholder returns. The Board has approved a final dividend of HK$0.30 per share. Together with the interim dividend of HK$0.25 per
Slide 7: Revenue structure has been optimized, and industries' contribution has climbed
Revenue structure has been optimized, and the industries’ contribution has climbed • The dual - wheel drive strategy of "finance + industry" has become increasingly prominent. HCD has continued to grow, and HH has steadily improved its performance. The revenue proportion of the industrial operation
Slide 8: Financial services: Strengthened risk control and accelerated asset turnover
Financial services: Strengthened risk control and accelerated asset turnover • In terms of financial business, the business volume remained stable and asset duration has been shortened. On the basis of ensuring operational safety, the net interest-earning assets slightly decreased to RMB260.6 billio
Slide 9: Financial services: Stable asset quality and prudent provision policy
Financial services: Maintain stable asset quality and prudent provision policy • The balance of non-performing assets remained stable. Due to the change in the net amount of interest-earning assets, the non-performing asset ratio was at the level of 1.07%. The proportion of interest-earning assets o
Slide 10: Financial services: Return on assets stable, diversified financing advantages
Financial services: The overall return on assets remained stable, and the advantages of diversified financing became evident • The Net Interest Spread (NIS) was 4.00%, representing an increase of 0.02 percentage points compared with the same period last year. the Net Interest Margin (NIM) was 4.48%,
Slide 11: Financial services: Keep stable leverage and match duration
Financial services: Keep stable leverage and match the duration of assets and liabilities • Due to the impact of the interim dividend distribution, the asset-liability ratio was 84.05%, maintaining a reasonable level. • The Company adhered to a stable and prudent liquidity management strategy, with
Slide 12: HCD: Domestic business optimized, overseas business profitable
HCD: The domestic business has been integrated and optimized, and the overseas business has achieved profitability • The industry position has been further consolidated, and the revenues from both domestic and overseas markets have continued to increase. The overall revenue reached RMB11.58 billion
Slide 13: HCD: Overseas layout expanding rapidly
HCD: The overseas layout is expanding rapidly, providing a strong driving force for growth • Since 2024, the overseas assets of HCD have gradually increased, and the operating income has risen rapidly, driving the overseas business to realize the single-month profit since the second half of the year
Slide 14: Horizon Healthcare: Improved operating efficiency and profitability
Horizon Healthcare: Continuously improved operating efficiency and profitability • Gave full play to the advantages of group-based medical operation, HH improved the efficiency of operation and management, continuously optimized the operation cost, and achieved a revenue of RMB4.09 billion and a net
Slide 15: Appendix: Condensed Balance Sheet
Appendix: Condensed Balance Sheet RMB'00 million 31 December 2024 31 December 2023 Change Total assets 3,603.90 3,514.83 2.53% Interest-earning assets 2,606.41 2,690.85 -3.14% Total liabilities 3,029.13 2,939.14 3.06% Interest-bearing liabilities 2,649.18 2,556.36 3.63% Total equity 574.77 575.70 -0
Slide 16: Appendix: Condensed Income Statement
Appendix: Condensed Income Statement RMB'00 million 2024 2023 Change Total revenue 377.49 379.60 -0.55% Pre-provision profit 92.76 106.15 -12.62% Profit before tax 80.21 104.25 -23.06% Net profit attributable to ordinary 61.93 -37.63% shareholders 38.62 EPS (RMB/share) 0.92 1.47 -37.90% ROA 1.27% 1.
Slide 17: Business Analysis
Contents 1 Results Overview 2 Business Analysis 17
Slide 18: Business Analysis Highlights
Business Analysis 1. Unique business model that transcends economic cycles Highlights 2. Prudent business strategy to achieve safe development 3. Steady operational results continue to create value for all parties 18
Slide 19: Unique business model that transcends economic cycles
1. Unique business model that transcends economic cycles
Slide 20: The 'finance + industry' business model validated over economic cycles
The "finance + industry" business model has been validated over economic cycles • Financial leasing business: Leading in the industry with net interest-earning assets of RMB260.6 billion • Equipment operation business (HCD): China's leading equipment operation service provider, ranking among the top
Slide 21: Interest-earning assets grown steadily; industry in mature stage
The scale of interest-earning assets has grown steadily across economic cycles and the industry has entered a mature and stable stage The scale of interest-earning assets remains stable in the long term (RMB'00 million) 2,706 2,691 2,584 2,606 2,354 2,240 1,940 2,031 1,398 1,220 1,008 807 576 418 20
Slide 22: Excellent asset-liability management, interest margin maintained
Excellent asset-liability management capabilities, with interest margin levels consistently maintained over the long term Net interest spread (NIS) Net interest margin (NIM) 4.67% 4.58% 4.48% 3.94% 3.98% 4.00% 4.06% 3.83% 3.21% 2.85% 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 22
Slide 23: Prudent promotion of inclusive finance
Prudent promotion of inclusive finance and gradual maturity of business model • The net scale of interest-earning assets in inclusive finance reached RMB17.25 billion, representing an increase of 38% compared with the end of 2023. The judgment of asset quality is more prudent, and 100% of the non- p
Slide 24: Industrial operation business continued to develop
The industrial operation business continued to develop and the overall business stability has been further strengthened • With the growth of HCD and the improvement of operation of HH, the proportion of revenue from industrial operation business increased from 3% in 2011 to 43%, effectively helped t
Slide 25: HCD: Leading comprehensive equipment operation service provider in China
HCD: The leading comprehensive equipment operation service provider in China • Total assets:RMB36.4 billion • Ranked the 14th in IRN World’s Top 100 Rental Companies • Customers served:325,000 • Ranking No.2 in ACCESS Global Top 50 Ariel Machinery Leasing • Outlets: 528 domestic + 53 overseas • The
Slide 26: HCD: Optimized resource allocation, overseas contribution growing
HCD: Continuously integrated and optimized the allocation of resources, and the contribution of overseas business has been growing rapidly Asset of HCD Revenue of HCD Profit of HCD (RMB'00 million) (RMB'00 million) (RMB'00 million) Domestic Overseas Domestic Overseas Domestic Overseas 364.3 35.5 115
Slide 27: Horizon Healthcare: China's first tier social capital medical service organization
Horizon Healthcare: China’s first tier social capital medical service organization • 26 holding hospitals • Effective supplementation of the public healthcare system • About 10,000 beds available • Layout in third, fourth, and fifth tier cities and counties • Annual outpatient visits exceed 4,000,00
Slide 28: Horizon Healthcare: Steady growth in operating performance
Horizon Healthcare: Steady growth in operating performance and continuous improvement in operational efficiency Revenue of HH Profit of HH (RMB'00 million) (RMB'00 million) 42.4 40.9 36.7 2.3 1.7 0.5 2022 2023 2024 2022 2023 2024 28
Slide 29: Prudent business strategy to achieve safe development
2. Prudent business strategy to achieve safe development
Slide 30: Deeply cultivate and flexibly allocate in nine major industries
Deeply cultivate and flexibly allocate in nine major industries Changes in the proportion of net interest-earning assets in nine major industries in recent years 51.0% 43.6%45.6% 39.8% 33.8% 13.6% 14.4% 11.1% 10.5% 8.9% 10.9% 9.9% 11.9% Urban 8.0% 9.4% Engineering Culture & public construction touri
Slide 31: Nationwide layout focused on economically developed regions
Nationwide layout with a focus on selecting and prioritizing economically developed regions Regional distribution of interest-earning asset balances Decrease Increase 46.05% 33.45% 14.39% 15.77% 10.31% 9.82% 11.12% 10.78% 8.38% 8.24% 5.70% 4.72% 6.83% 6.29% 5.81% 2.34% Northeast Southwest Northwest
Slide 32: Prudent asset deployment with asset safety proven through cycles
A prudent asset deployment strategy with asset safety proven through cyclical tests Over 30 days ratio and NPL provision NPL has maintained stable for a long time since listing coverage ratio remained stable 246% 242% 1.86% 220% 228% 228% 218% 219% 1.29% 1.74% 1.73% 201% 1.67% 1.56% 1.08% 0.94% 0.91
Slide 33: Reasonable matching of financial asset and liability maturity
Reasonable matching of financial asset and financial liability maturity and balance liquidity safety and efficiency Matching of financial asset and financial liabilities (RMB'00 million) 1,393 1,290 1,281 1,035 534 520 232 28 33 69 29 On demand Less than 3 months 3 to 12 months 1 to 5 years Over 5 y
Slide 34: Leverage maintained at reasonable level, risks well controlled
Leverage has been maintained at a reasonable level in long term and risks have been well controlled, balancing risk control and future growth potential The leverage level of the Company and main financial leasing business entities Regulatory Control Line (8x) 6.63 6.62 6.33 6.11 6.27 6.15 5.81 5.21
Slide 35: BBB- credit rating confirmed by S&P and ESG rating maintained
BBB- credit rating confirmed by S&P and ESG rating maintained industry-leading Credit rating maintain stable and S&P confirmed ESG rating are all in the forefront of BBB- long-term issuer rating with a stable outlook the domestic financial industry CSA rating score was 54 in 2024, ranks Global Ratin
Slide 36: Steady operational results continue to create value for all parties
3. Steady operational results continue to create value for all parties
Slide 37: Long-term and stable management achieved excellent performance
Long-term and stable management achieved excellent performance The core management team has joined the Company Managed the Company to achieve long-term for more than 20 years outstanding performance Since listed in 2011, key metrics keep KONG Fanxing growing at high CAGR Stable Chairman of the board
Slide 38: Operating with long-term safety and creating value for all stakeholders
Operating with long-term safety and stability and continuously creating value for all stakeholders Continuously creating value for shareholders, customers, creditors, government and employees • Corporate clients served Cumulative taxes paid Awards 36 Billion+ cumulatively 30,000+ Best Listed Leasing
Slide 39: Continuously improving shareholder returns through multiple initiatives
Continuously improving shareholder returns through multiple initiatives • Since its listing, the total cash dividend paid has reached HKD16.54 billion, exceeding the amount of public equity financing after the Company's IPO and listing. • Cash dividend: The cumulative cash dividend per share for the
Slide 40: Q&A
Q&A 40
Slide 41: Contact us
Contact us Far East Horizon Company Website： www.fehorizon.com Contact of Investor Relations： ir@fehorizon.com Horizon Construction Development Horizon Healthcare 41