Far East Horizon Ltd : UNAUDITED QUARTERLY OPERATION SUMMARY AS AT MARCH 31, 2012

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of this announcement.

(Incorporated in Hong Kong with limited liability)

(Stock code: 3360) UNAUDITED QUARTERLY OPERATION SUMMARY AS AT MARCH 31, 2012

This announcement sets out unaudited operation summary of Far East Horizon Limited (the
"Company") and its subsidiaries (the "Group") for the first quarter ended March 31, 2012.
This announcement is made in accordance with Rule 13.09(1) of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited.
In the first quarter of 2012, the world's economies showed sluggish recovery, financial environment was still volatile, and the PRC economy slowed down its growth pace. In this case, uncertainties are still hiding in financial policies. When the external environment is uncertain as a whole, the Group still adhered to our overall strategies that focused on industrial integrated operation services and steadily propelled all business lines through rational and effective operation management. While all our key financial indicators showed constant increase, the Group, by continuing our strict risk control system, diversified funding strategies and prudent financial structure, further ensured asset safety and effectively controlled overall liquidity risks.
Facing a complicated operating environment, the Group remained a steady, prudent growth and attained continuous increment with respect to total assets and leasing assets for the first quarter of
2012. Total assets and leasing assets realized rapid increase of over 50% and 65% (denominated in RMB) respectively as compared with the same period of 2011, and the rates of increase were both approximately 10% as compared with the beginning of the year. Since, when comparing with the same period of the previous year, all our businesses remained healthy and returns from our project exhibited steady improvement, the Group achieved a more than 45% growth in profit before tax from 2011 for the first quarter of 2012.
When growing consistently as a whole, all business segments within the Group, by closely following changes in the market trend, also further expanded the sub-market segments, diversified operation structure, expanded customer coverage and enhanced integrated operation, thereby attaining steady growth in overall business expansion for the first quarter of 2012. Among all our business segments, construction, textiles, and shipping enjoyed rapid growth; healthcare and other new business segments achieved solid growth. Influenced by normal seasonal factors, education segment only showed slight growth, but, after commencement of academic year and improved investment from customers in education in near future, we anticipate that this segment will experience rapid growth after the first quarter. Furthermore, taking into account the macro- economic trends in the first quarter and the clients' characteristics in the industry equipment and printing industries, the Group increased its efforts in the auditing of projects at the preliminary stage and strengthened the control of the introduction of the projects in such industries, the growth rate of which fell behind the Group's overall growth rate. The Group vigorously adjusted operating strategies for such industries, strengthened coordination among integrated operation services, including consultancy and brokerage services, to relieve the impact on such industries. We estimate that the growth rate for these segments will remain relatively stable for 2012.
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With respect to expansion of new businesses, the Group continued to systematically explore and receive trial orders in industries like electronic information and public transportation. As the Group is progressing in the above industries, risk management capacity and integrated operation method for such industries are improving step by step. We estimate that the above industries will become new drive for the Group's business development in future.
In the first quarter of 2012, the Group seized development opportunities arising from tight funding situation, having successfully avoided negative impact from the rising financing cost and having resulted in significant increase in yield of new projects over the same period of last year. The Group's net interest margin (NIM) and net interest spread (NIS) remained stable on the basis of its levels as at the end of 2011. It is remarkable that, as our business diversification strategy is propelling consistently, income from the Group's healthcare engineering company, operating leasing company, and other new businesses attained rapid growth. On the other hand, in terms of income structure, as the Group's capacity in integrated business developed gradually, our revenue from trading and other segments achieved rapid growth and fee income remained stable increase.
Thanks to the prudent risk management measures and asset management policies, during the first quarter of 2012, the quality of Group's assets remained healthy, while lease overdue ratio (over 30 days), ratio for assets under special mention, and non-performing assets ratio remained low. In the meantime, facing a changing external environment that is becoming more and more complicated, the Group adopted conservative provisioning policy, so that our provision coverage for non- performing assets still remained at a reasonable level.
With respect to funding, the Group continued to propel our strategy that focused on diversified financing channel, pursuant to which, our funding sources expanded from bilateral to multilateral, our financing platform extended from domestic to overseas, and our financing means changed from indirect financing only to a combination of direct and indirect financing. During the first quarter of 2012, on one hand, the Group enhanced our indirect financing, such as domestic bank borrowings, and cooperated with more banks to increase our total credit; on the other hand, since the Group's growth rate was higher than our expectation for 2011, our demand for equity financing arrived earlier than expected. During the first quarter of 2012, the Group perfectly followed market trend and completed the issue of new shares with net proceed of approximately US$370,000,000, which consolidated our capital strength and provided a safe financial structure to support our stable development in the long-run.
As always, the Group effectively controlled cost and expenditures in the first quarter of 2012. As our business scale is expanding, the number of our employees increased to 1,440, but the Company's operating cost almost remained at the same level as compared with the end of the previous year.
Looking into 2012, although there are many uncertainties among economic and financial environment in both PRC and overseas, the Group will stick to our existing operating strategies and conservative risk management policies to propel a steady growth in our business and reciprocate all shareholders with satisfactory results.
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CAUTION STATEMENT

The board of directors of the Company (the "Board") hereby reminds investors that the above operation summary for the first quarter ended March 31, 2012 is based on the Group's internal records and management accounts which are not reviewed or audited by auditors. Investors are cautioned not to unduly rely on such operation summary for the first quarter ended March 31,
2012. In the meantime, investors are advised to exercise caution in dealing in the shares of the
Company.
Words such as "may", "could", "will", "expect", "intend", "estimate", "anticipate", "believe", "plan", "seek", "continue" or similar expressions in this announcement are forward-looking statements. These forward-looking statements are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of the Group and are difficult to predict, that may cause actual results to differ materially from any future results or developments expressed or implied from the forward-looking statements. Such risks and uncertainties include the effects of volatility in domestic and international financial markets and macro-economics, economic conditions in individual markets in which the Group operates, and other factors affecting the level of Group's business activities and the costs and availability of financing for Group's activities.
Any forward-looking statement contained in this announcement should not be taken as a representation that such trends or activities will continue in the future. No statement in this announcement is intended to be a profit forecast or to imply that the earnings of the Group as at the date of this announcement or in future will necessarily match or exceed the historical or published earnings of the Group. Each forward-looking statement speaks only as of the date of the particular statement. The Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
By the order of the Board Far East Horizon Limited KONG Fanxing

Chief Executive Officer and Executive Director

Hong Kong, April 30, 2012

As at the date of this announcement, the executive directors of the Company are Mr. KONG Fanxing and Mr. WANG Mingzhe, the non-executive directors of the Company are Mr. LIU Deshu (Chairman), Mr. YANG Lin, Ms. SHI Dai, Mr. LIU Haifeng David and Ms. SUN Xiaoning, and the independent non-executive directors of the Company are Mr. CAI Cunqiang, Mr. HAN Xiaojing, Mr. LIU Jialin and Mr. YIP Wai Ming.

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