Differ Group Holding Company Limited

(Stock Code: 6878.HK)

Announces 2021 Interim Results

Profit increased by 140%

Tapping into New Automobile Retail Business, A New Driver for Long-term Development

[Hong Kong - 26 August 2021] Differ Group Holding Company Limited, ("Differ Group" or "the Company", and together with its subsidiaries, the "Group")(stock code: 6878.HK), a full-link asset operator focusing on distressed asset and entering into new automobile retail business, is pleased to announce its interim results for the six months ended 30 June 2021 (the "Period").

During the Period, the Group took initiatives to adjust its business strategies, reducing the scale of the commodity trading business and allocating its resources on business segments with greater gross margin. Turnover decreased 89.4% year-on-year ("yoy") to RMB291.8 million. Profit for the Period surged 140.1% to RMB55.5 million. Profit attributable to owners of the Company for the Period was approximately RMB48.5 million. Basic earnings per share increased 97.1% yoy to RMB0.67 cents.

 
Asset management business

The income from assets management business is mainly contributed by the sales of properties of Differ Sky Realm (鼎豐天境), which is a residential development comprises mostly properties for residential purposes and minor areas for commercial use on the ground floor. It covers a total site area of approximately 99,729 sq.m and a total gross floor area of approximately 377,169 sq.m upon completion. The revenue from Differ Sky Realm for the Period was approximately RMB53.9 million. The Group also recorded the revenue of approximately RMB5.4 million from sales of other property projects. Apart from the income as mentioned above, the Group also recorded other income from assets management business of approximately RMB7.7 million, mainly represented the income from rental income, asset management fee income and property management fee income.

Financial related services

The Group's express loan services increased by 51.3% yoy to RMB84.4 million, which was mainly due to the increase of average loan receivables during the Period. Guarantee service income increased by 117.1% to RMB10.9 million, mainly due to the guarantee service income from associates.

Commodity trading business

During the Period, the Group devoted its financial resources to develop its other businesses, leading to a significant decrease in revenue from commodity trading business to approximately RMB121.0 million.

Mr. Hong Mingxian, Chairman and Executive Director of Differ Group, commented, "I am honored to share with you the outstanding results of the Group in the first half of the year despite the uncertainties in macroeconomic environment. This is a year of change for Differ Group. We further develop and strengthen the Group's core business by riding on the positive market environment of the distressed assets management business with the aim to become a leading full-link asset operator. In the meantime, we have seized the opportunity and strategically tapped into the new automobile retail business, striving to achieve a better business synergy. After acquiring Guancheng Taifeng in August, the Group actively integrates its own resources with their online automobile e-commence platform to create a new business ecology, and aims to leverage Guangcheng Taifeng as the foundation to introduce more strategic partners for comprehensive collaboration, in order to forge an all-rounded ecology of automobile industry. The Group's ultimate goal is to root in the highly potential digital automobile industry, so as to create more fruitful returns to shareholders."

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About Differ Group Holding Company Limited (Stock Code: 6878.HK)

Established in 2008, Differ Group Holding Company Ltd. (the Group) listed in the Stock Exchange of Hong Kong (SEHK) in December 2013, making us the first non-bank financing company listed in Hong Kong. In 2015, the Group was ranked 11th in the 2015 Forbes China Top 100 Potential Listed Enterprises.  Because of our steady operation as well as rapid and healthy development of various businesses, the Group has now become a diversified listed company with businesses in financial services and urban renewal. We were selected as the Forbes Asia's Best Companies and Fujian's Top 100 Private Companies in 2018 and 2019 and are included in the MSCI China Small Cap Index.