[Immediate Release] DFH Announces 2017 Interim Results Record Sustained Growth in Turnover and Profit * * * Continuously Diversifies Business Portfolio Actively Explores Cooperation Opportunities To Further Reinforce its Leading Position in the Industry Financial Highlights

For the Six Months Ended 30 June

RMB'000

2017

2016

Change

Turnover

151,993

132,880

+14.4%

Overview of Major Businesses

Asset Management Services

51,918

34,433

+50.8%

Finance Lease Services

30,839

22,792

+35.3%

Financial Services

31,781

15,512

+104.9%

Express Loan Services*

34,437

54,136

-36.4%

Guarantee Services

3,018

6,007

-49.8%

Profit

80,024

75,263

+6.3%

Basic Earnings Per Share (RMB cents)

1.74

1.68

+3.6%

* Including entrusted loan services, money lending services and pawn loan services (pawn loan services has been disposed on 24 June 2016)

(Hong Kong, 21 August 2017) - Differ Group Holding Company Limited ("DFH" or the "Group") (stock code: 6878), a leading provider of short- to medium-term financing and financing-related solutions in the PRC, has announced its unaudited interim results for the six months ended 30 June 2017 (the "Period").

Benefiting from the robust income growth of its asset management, finance lease and financial services businesses, the Group's turnover increased by 14.4% to approximately RMB152.0 million, profit for the Period rose to approximately RMB80.0 million and basic earnings per share climbed to RMB1.74 cents.

The Group maintained a healthy financial position with a 26.4% gearing ratio. As at 30 June 2017, it had total cash and bank balances (including restricted bank deposits) of approximately RMB116.0 million.

Mr. Hong Mingxian, Chairman and Executive Director of DFH, said, "Amidst the transformation and upgrade process of the Chinese economy, the Group has implemented a diversified strategy so as to capture the opportunities in the industry, adjusted its development focus and concentrated on the businesses with greater profitability and higher sustainability, such as asset management and finance lease businesses, and strive to achieve sustainable growth with a flexible business model."

Business Review

Asset Management Services

To capture the opportunities presented by abundant asset in Fujian Province, the Group has continued to expand the asset management business, and actively looking for quality asset which could potentially offer high-percentage returns. During the Period, the income from asset management services surged by 50.8% to approximately RMB51.9 million, mainly due to the fact that more obligors of non-performing loans settled the debts and the Group received dividend income from its equity investments. The increase also demonstrated that the Group has extended its disposal of distressed asset from immovable property to other asset class given the fact that no property was disposed during the period.

Finance Lease Services

Following the acquisition of Jiashi International Financial Limited and its subsidiaries ("Jiashi Group") in late October 2015, the Group further developed its finance lease business. Apart from the finance lease business for machineries, distant marine fishing vessels and car leasing to individuals, the Group has started its finance lease business for properties in late 2016 and has commenced its finance lease business in Hong Kong in the first half of 2017. Income increased by 35.3% to approximately RMB30.8 million in relation to the finance lease business in Hong Kong.

Financial Services

The Group has mainly focused on financial services that charge customers based on a certain percentage of the amount of financing obtained as a result of consultation. During the Period, the income from financial services soared by 104.9% to RMB31.8 million assisted by the PRC government encouraging the banks to support the SMEs, which often have difficulty in obtaining bank loans. Thus in the first half of 2017, it has become easier for SMEs to obtain loans from PRC banks. This in turn has led to the increase of the amount and the successful rate of financing obtained from banks by the Group's customers.

Express Loan Services

The Group has continued to expand the Hong Kong money lending business in 2017 and has also provided short-team financing to customers in the PRC. For the sake of stability, the Group took a more prudent approach and preferentially granted loans to customers with decent credit histories during the economic downturn, and lowered the interest rates accordingly. Moreover, in order to focus on the businesses with greater profitability and higher sustainability, the Group retained capital for further expanding its asset management business, and a certain amount of cash was used in redeeming the convertible bonds of US$30 million. During the Period, affected by the lower average interest rate charges and adjustment in business strategy and resource allocation, income from express loan services declined to approximately RMB34.4 million.

Guarantee Services

Since the overall macroeconomic environment has led to more prominent credit risks, the Group has continued to take a prudent approach towards vetting the applications of potential customers. As a result, the number of guarantee services decreased and income declined by 49.8% to approximately RMB3.0 million.

Outlook

Looking ahead, asset management business and finance lease business will continue to be the Group's key growth drivers. Furthermore, the Group has actively expanded these businesses along with continued to explore cooperative opportunities with various state-owned / well-known companies. Apart from the formation of Xiamen Chuang Yi Commercial Factoring Company Limited with state-owned enterprises in late 2016, the Group has cooperated with Tsinghua Asset Management in order to further establish an offshore fund focusing on investments in overseas high-tech projects with good quality and high growth. Leveraging on this opportunity and the first-hand resources it could offer, the Group intends to pave the way for developing to Fintech business. We believe that the close ties forged with these renowned companies can enable the Group to develop new businesses, broaden the customer base, bolster the competitiveness and expand the geographical coverage of its businesses, therefore generating sustainable growth momentum to further capture enormous opportunities in the market.

In the capital markets, the Group has issued corporate bonds of approximately HK$141.7 million during the Period. The funds raised can enhance the Group's capital base and accelerate the development of its business. On the other hand, the Group has redeemed convertible bonds of US$30 million early in order to increase the flexibility of its business.

Mr. Hong concluded, "We will continue to actively grasp the opportunities presented by the rapidly-changing economic environment in the PRC, continue to facilitate the strong development of asset management and finance lease services in domestic and overseas. The Group will also explore cooperation plans with different renowned companies at the same time, in a bid to maintain sustainable growth momentum. We are optimistic about our overall business and financial prospects in the future, so we will further seek to develop new businesses and explore business opportunities in order to broaden our income stream, and maintain our leading position as the preferred choice of comprehensive short- to medium-term financing solutions by SMEs, thus maximising value for our shareholders."

- End -

About Differ Group Holding Company Limited (stock code: 6878)

Headquartered in Xiamen, Differ Group Holding Company Limited mainly provides short- to medium-term financing and financing-related solutions for SMEs. The Group mainly offers five types of financing and financing-related solutions, including 1) Finance Lease Services; 2) Asset Management Services; 3) Express Loan Services; 4) Financial Guarantee Services; and 5) Financial Consultant Services. DFH has continued to achieve remarkable business results and is seeking to develop new businesses to broaden its income streams. In December 2016, the Group announced the formation of a joint venture for providing commercial factoring related services in the PRC. DFH was listed on the GEM Board of the Hong Kong Stock Exchange on 9 December 2013 and has since transferred its listing to the Main Board on 6 July 2015. The Group was selected as a constituent stock of the MSCI Small Cap Indices - China Index in May 2015 and entered the Hang Seng Composite Index in March 2016. For details, please visit its website: www.dfh.cn

Media Contact:

Strategic Financial Relations Limited

Heidi So

+852 2864 4826

heidi.so@sprg.com.hk

Janet Fong

+852 2864 4817

janet.fong@sprg.com.hk

Jenny Lam

+852 2864 4883

jennysy.lam@sprg.com.hk

Website

www.sprg.com.hk

Fax:

+852 2527 1196

Differ Group Holding Co. Ltd. published this content on 23 August 2017 and is solely responsible for the information contained herein.
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