OP Financial (01140) Announces Gratifying 2016/2017 Results

Profit for the Year Increased 326% YoY to HK$188.06 Million

Total Comprehensive Income Increased 417% YoY to HK$205.12 million

Key Highlights

- Profit for the Year amounted to HK$188.06 million, +326% YoY

- Total Comprehensive Income amounted to HK$205.12 million, +417% YoY

- Net Asset Value amounted to HK$2.91 billion, +10% YoY

- Basic earnings per share was HK 10.15 cents, +252% YoY

- Proposed final dividend of HK 4 cents per share

HONG KONG, June 26, 2017 /PRNewswire/ -- OP Financial Investments Limited ("OP Financial", stock code: 1140), announced its audited annual results for the twelve months ended 31 March 2017 (the "Year"). During the Year, the strategic layout of OP Financial has yielded promising preliminary results.

The Group's portfolio delivered strong growths. Profit for the Year amounted to HK$188.06 million, representing a YoY growth of 326% from HK$44.16 million last year. Total Comprehensive Income amounted to HK$205.12 million, representing a YoY growth of 417% from HK$39.65 million last year. The Group's net assets as at 31 March 2017 increased by 10% YoY from HK$2.64 billion to HK$2.91 billion, which benefited from fair value and revenue growth. The NAV per share increased from HK$1.43 to HK$1.54.

The Group's bank and cash balances increased to HK$1.79 billion, mainly attributable to operating cash inflow, net proceeds of HK$107.01 million from the placing of 56 million shares and offsetting the fund utilized in new investments.

During the Year, basic earnings per share was HK 10.15 cents, representing a YoY growth of 252%. OP Financial exit a few material profitable investment positions. As part of a long term commitment to providing shareholder value, the Board recommend the payment of a final dividend of HK 4 cents (2015/2016 dividend: HK 2.5 cents) per share.

Commenting on the future development, Zhang Gaobo, Chief Executive Officer of OP Financial, said: "In 2017, we see extensive business opportunities embedded in crossborder and crossover investments. On one hand, a large number of Chinese enterprises have to turn to Hong Kong for financing as China has strengthened capital control. It creates an excellent opportunity for our crossborder investments. On the other hand, overcapacity difficulties and homogeneous competition force enterprises in traditional industries experience greater challenges. OP Financial is going to capture the crossover opportunities by investing in enterprises which deeply understand the industry and are able to make good use of the Internet and other technologies."

"We have established meaningful strategic alliance with China EBS International, Hangzhou Magsun and Finance Center for South-South Cooperation. We will focus on two categories going forward: one is strategic investment such as platforms to obtain long-term capital appreciation and create synergies; the other is medium to short-term investment by leveraging on our capabilities of strong capital base and tailor-made integrated investment solutions. We will continue our efforts to become a leading cross-border investment platform in Asia, as well as create greatest value for our shareholders", Zhang continued.

Investment Portfolio

OP Financial has built an investment portfolio of companies and investment funds that is diversified across geographies and industries. The Group also invests in bonds and other debt instruments to generate diversified returns. As of 31 March 2017, the portfolio and core investments are as follows:

Investment holdings by source (HK$ millions, as a percentage of total assets)

• Beijing International Trust Co. Ltd. BITIC is a Chinese large-scale non-banking financial institution, which engages in trusts, investment fund, financial services, brokerage and advisory businesses. As of 31 December 2016, BITIC reported net assets of RMB7.7 billion, revenue of RMB1.849 billion and net income of RMB993 million. OP Financial owns a 3.8% indirect interest of BITIC. The investment in BITIC gives OP Financial access to one of the dominant participants in China's trust industry.
• CSOP Asset Management Ltd. CSOP is the largest RQFII manager established by OP Financial and China Southern Asset Management Co. Ltd. OP Financial owns 24% of issued capital of CSOP. The carrying value of the Group's CSOP position was HK$132.19 million at 31 March 2017, an increase of 26% as compared to the fair value at 31 March 2016.
• Guardforce Investment Holdings PTY Ltd and Guardforce Holdings (HK) Ltd ("Guardforce"). OP Financial has provided funding to China Security & Fire Co., Ltd, a listed company on Shanghai Stock Exchange (Stock Code: 600654) and Guardforce Holdings (HK) Ltd, a related company under the same controlling shareholder. To help its expansion in Thailand, OP Financial subscribed a US$15 million exchangeable bond issued by Guardforce Holdings (HK) Ltd. In addition, OP Financial also subscribed approximately US$64.18 million 6.5% interest-bearing promissory notes issued by Guardforce Investment Holdings PTY Ltd, a subsidiary of China S&F. In March 2017, the promissory notes were fully redeemed by Guardforce Investment Holdings PTY Ltd.
• Xiaoju Kuaizhi Inc. Xiaoju Kuaizhi is the parent company of Didi Chuxing, the Chinese ride-hailing service provider with over 400 million users in more than 400 cities in China. OP Financial subscribed series A-18 preferred shares issued by Xiaoju Kuaizhi Inc in May 2016. Total subscription from OP Financial was US$15 million. In April 2017, Didi Chuxing completed a new financing round of over US$5 billion to support its global strategy and continued investments in artificial intelligence. This latest financing showed a 33% increase in the subscription price per preference share.
• Nobel Holdings Investments Ltd. Nobel is one of the largest independent upstream oil producers in Russia, with principal assets include nine subsoil licenses covering seven oil fields and two exploration areas in Komi Republic and Western Siberia. OP Financial invested alongside China Investment Corporation in Nobel in 2008. The current position of OP Financial in Nobel was HK$124.71 million.
• Sinagri Yingtai AMP Limited. Sinagri Yingtai is a Chinese high-tech biotechnology company focusing on research, development, production and distribution of antimicrobial peptides (AMPs). OP Financial invested RMB20 million in Sinagri Yingtai and also committed further capital of RMB56 million to cater for its expansion needs.
• OPIM Holdings Limited. OPIM is an asset management platform which serves Asian-based managers to develop funds across diversified strategies for institutional and professional investors. The ecosystem built by OPIM enables the fund managers to work with the industry's best service partners and launch funds in fast and affordable structures. The current position of OP Financial in OPIM was HK$43.16 million.

Full details of the 2016/2017 annual results have been posted on the designated website of Hong Kong Exchanges and Clearing Limited at www.hkexnews.hk and the corporate website at www.opfin.com.hk.

About OP Financial Investments Limited (Stock Code: 1140)

OP Financial Investments Limited is an investment company listed on the Hong Kong Stock Exchange (Stock code: 01140), and an exempted company with limited liability under the Companies Law of the Cayman Islands. OP Financial develops customized syndicate investment solutions leveraging proprietary capital and co-investment structures to access scalable opportunities. Part of the Oriental Patron Group, OP Financial possesses a strong global network of investment partners and industry leaders.

For further information, please contact:
Investor Relations
Tel: (852) 2842 5888
Fax: (852) 2842 5833
E-mail: ir@oriental-patron.com.hk
Website: http://www.opfin.com.hk/

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