Yangzijiang Financial Holding has reported lower earnings for its maiden results announcement since its spin-off listing from Yangzijiang Shipbuilding in April.
For the six months to June, the investment and fund management firm reported earnings of $136.4 million, down 30.6% y-o-y.
Total income in the same period was down 27.3% to $173.8 million.
Out of which, interest income was down 3% y-o-y to $184.9 million, due to lower average debt investments balance in 1H2022.
Non-interest income, meanwhile, dropped from $48.5 million in 1HFY2021 to a loss of $11.1 million for 1HFY2022. The drop was mainly because a lower fair value of YFH’s investments in financial assets. Other reasons for the loss include overall market losses from listed shares within the private equity funds invested by the company.
As at June 30, YFH has some $4.6 billion in assets under management. It has a net asset value of $1.07 as of the same date.
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YFH says that in view of the current macro uncertainty, it will adopt a more cautious approach in deploying its capital, preferring to diversify across different vintages.
The company maintains it is on track to achieve its long-term target of allocating 50% of its AUM in Singapore for offshore investments, as it reduces its exposure in China.
“We seek to create a diversified portfolio with a focus on growth opportunities to achieve attractive risk-adjusted returns while providing a steady stream of dividends to shareholders through income generated from our investment management and fund/wealth management businesses,” says executive chairman Ren Yuanlin.
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CEO cum chief investment officer Vincent Toe (picture) says that more than 10% of YFH’s assets are currently in Singapore, ready for deployment. “We will continue to explore investment opportunities in the Asia-Pacific emerging markets and global developed markets.”
YFH has also announced it has set up a new maritime fund, with an initial target size of up to US$250 million of which up to US$100 million will be funded internally.
The fund will focus on investments in maritime assets (including vessels) for the purposes of leasing, chartering and/or sale, and providing financing for small to medium-sized shipping companies.
The company has launched a $200 million share buyback programme, with around $9 million used.
It has also committed to a dividend payout ration of 40% of its earnings for FY2022 to FY2024.
YFH shares closed at 39 cents on Aug 11, down from 55 cents when it started trading.
