Far East Horizon posts 2.68% rise in H1 2026 profit, declares HK$0.25 interim dividend

Far East Horizon Limited (FE Horizon) reported first-half 2026 revenue of RMB 18.04 billion, up 4.05 % year on year. Growth was driven by its Financial, Advisory & Other segment, which contributed RMB 12.16 billion, accounting for 67 % of total turnover. Industrial Operation revenue slipped 5.98 % to RMB 5.95 billion, reflecting softer contributions from equipment and hospital operations.

Net profit attributable to ordinary shareholders edged up 2.68 % to RMB 2.22 billion, equivalent to basic earnings of RMB 0.47 per share. Net interest income expanded 28.30 % to RMB 7.63 billion, lifting net interest margin to 5.50 % (H1 2025: 4.51 %). Return on average equity stood at 8.47 %, while return on average assets remained stable at 1.21 %.

Operating efficiency improved: the cost-to-income ratio narrowed to 44.65 % (H1 2025: 50.70 %). Pre-provision operating profit rose 24.36 % to RMB 5.36 billion. Asset quality stayed resilient with the non-performing asset ratio inching down to 0.99 % and provision coverage at 227.98 %.

By segment, Equipment Operation recorded revenue of RMB 4.02 billion (-7.49 %) and gross profit of RMB 1.12 billion (+19.11 %); Hospital Operation delivered RMB 1.69 billion in revenue (-6.48 %) and RMB 0.29 billion in gross profit (-13.97 %). Inclusive finance assets grew 26.63 % to RMB 35.11 billion, contributing RMB 2.71 billion in interest income.

Total assets reached RMB 373.22 billion, while total liabilities stood at RMB 312.11 billion, resulting in a gearing ratio of 83.62 %. Cash and cash equivalents amounted to RMB 16.23 billion at period-end.

Capital expenditure during the period was RMB 1.23 billion, mainly for equipment upgrades and investments. No material acquisitions or disposals were completed.

Following the payout of a 2025 final dividend of HK$0.31 per share in June, the Board has approved an interim dividend of HK$0.25 per share for H1 2026, payable on 29 September 2026 to shareholders on record as of 18 September 2026.

Management reiterated its focus on risk control, noting that the inclusive finance business continues to expand while maintaining prudent provisioning; the group’s NPL coverage remained above 225 %. The company plans to advance its “finance + industry” strategy, deepen integrated services, and pursue measured overseas growth within its equipment and healthcare platforms.