Company's Prudent & Diversified Investment Approach Improved Financial Assets and Achieved Loss Deduction
HONG KONG, Mar 31, 2015 - (ACN Newswire) - Eagle Ride Investment Holdings Limited ("Eagle Ride" or the "Company;" stock code: 901) today announced its Annual Results for the year ended 31 December 2014.
Last year, the low interest-rate environment continued to make the search for attractive yields on investments somewhat challenging. Under the new management together with the change in investment objectives and policies, Eagle Ride's fair value of the unlisted equity investments was increased by 6.06% while the net unrealised gain arising on revaluation of financial assets designated as held for trading was increased by 89% during the year ended 31 December 2014.
Furthermore, the Group also achieved a net realised gain of approximately HK$1,857,000 through disposing a listed securities investment. All these were valid indicators of the Group's well-formulated strategic investment objections and plans.
As at 31 December 2014, the Company has been maintaining a diversified investment portfolio across different sectors of business including manufacturing, education and oilfields as well as investment in securities.
Mr. Tung Shu Sun, Chairman of Eagle Ride, said, "Looking ahead to 2015, the Company will continue fully leveraging our strong market analytical capability and carefully identify the market trend to target projects or assets with growth potential for investment, through a flexible investment strategy. The Company will maintain its diversified investment approach in order to reduce investment risks and to optimize portfolio efficiency. To strengthen the management of the invested projects, when necessary, the Company will participate in a project's capital operation to expand the Company's market presence and profitability and to create the greatest benefits for the shareholders."
Financial ReviewDuring the year, Eagle Ride made a net realised gain on disposal of financial assets designated as held for trading of approximately HK$1,857,000 while the unrealised gain arising on revaluation of financial assets designated as held for trading and the net unrealised gain arising on revaluation of financial assets designated as at fair value through profit or loss of approximately HK$15,684,000 or increased by 89% and HK$5,763,000 or increased by 6.06% respectively.
The Company achieved a turnaround as the total realised and unrealised gain on the financial assets in the current financial year was approximately HK$23,304,000 in contrast to a net realised loss of approximately HK$45,451,000 in the last corresponding year. The net loss attributable to the owners of the Company was approximately HK$25,203,000, a reduction of approximately HK$42,402,000 from a loss of HK$67,605,000 in the last financial year. The significant reduction in loss is testimony to the effectiveness of its investment strategy.
With the extensive management experience and solid investment record, as well as the wide network of the board members and partners, the Group is well-positioned to target investments with growth potential and continues to bring real value to the Group and all of its shareholders.
ProspectsThe investment market is expected to remain challenging in 2015. In spite of this, Eagle Ride will maintain a prudent investment approach to capture attractive investment opportunities as and when they arise. It will also strive for a sustainable development and to bring the maximum returns for all the shareholders.
An excellent management team is crucial in leading the Group to attain its long-term development goals. Eagle Ride has appointed respected industry professionals who bring extensive experience to their roles on the Board of Directors while offering added network and resources advantages to the Company.
Furthermore, the Company will continue a diversified investment approach focusing on a mix of equities and equity-linked securities. Looking to 2015, the Company believes strength in corporate profits and consumer spending is likely to support continued economic growth in the United States. Amid this favorable outlook, the Company believes fundamentals will continue to support asset prices and provide performance potential, and US equity-market fundamentals will be continued to look strong.
Enterprises in Mainland China are playing an increasingly important role in the local stock market. Through the new cross-border investment channel, the Company believes that China-related stock markets will continue to benefit from the long-overdue recovery in the next few years.
Mr. Tung concluded, "With the new management team and the change in investment objectives and policies, the Company will invest in those enterprises which are established in their respective fields and may seek to identify investments where there are synergies with other investee entities."
About Eagle Ride Investment Holdings Limited
Eagle Ride Investment Holdings Limited is an investment holding company. The Company's investment instruments will be made in the form of equity securities or equity-related securities or debt-related instruments in listed and unlisted companies engaged in, including but not limited to other industries, the oil sector. The Company will invest those enterprises which are established in their respective fields and may seek to identify investments where there is a certain degree of synergy with other investee entities. With the extensive management and investment experiences, as well as extensive network of the Board members and partners, Eagle Ride endeavors to bring value to all shareholders.
Source: Eagle Ride Investment Holdings Limited
Contact:
Strategic Financial Relations Limited Joanne Lam +852 2864 4816 joanne.lam@sprg.com.hk Grace Lai +852 2114 4313 grace.lai@sprg.com.hk
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