Yangzijiang Financial Holding has reported earnings of $201.8 million for the FY2023 ended Dec 31, 2023, 25% higher y-o-y. The group’s earnings for the 2HFY2023 surged by 53% y-o-y to $39.3 million.
Earnings per share (EPS) for the FY2023 and 2HFY2023 stood at 5.53 cents and 1.08 cents respectively.
FY2023 total income rose by 16% y-o-y to $348.4 million with strong investment income from its maritime fund assets and offset by a drop in interest income from its debt investments business.
Profit before allowances was up by 11% y-o-y at $302.1 million.
As at Dec 31, 2023, the group has $4.0 billion of assets under management (AUM).
Looking ahead, the group says it is still focused on its efforts to diversify its business. It has also set up a new long-term target to further reduce its China debt / credit exposure to less than 30% of its total AUM. The ratio currently stands at 40% as at the end of 2023.
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On its debt investments in China, the group adds that it is “pro-actively taking measures to mitigate the impact of exposures to the Chinese real estate market”.
“The group has minimised the granting of new loans that are exposed to the real estate sector, and diligently managing its non-performing loans through various avenues such as loan restructuring and legal mechanisms,” says Yangzijiang Financial in its Feb 28 statement.
For the period, the group has proposed a dividend of 2.2 cents per share, up from the 1.8 cents a share in the FY2022. This year’s dividend amounts to a payout ratio of 40%.
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“With an improved performance in 2023 despite challenging market conditions, we are pleased to reward our shareholders with a 22% increase in dividend per share. Our improved performance reflects our higher risk adjusted returns and various initiatives to increase the group’s AUM. Our management team is well-supported by strong risks control and corporate governance policies that the board has put in place. This crystallises the roadmap for the group to transit to our next phase of growth,” says Vincent Toe, CEO of Yangzjiang Financial.
On Toe’s resignation, Ren Yuanlin, the group’s executive chairman, notes: “Vincent has been an invaluable member of the group since the company’s initial public offering (IPO) back in 2022. Under his charge, the group has successfully diversified its revenue and income source beyond China, with him playing a quintessential role in the growth of our overseas fund and wealth management businesses.”
Ren adds: “His departure as CEO does not spell the end of our collaboration but instead the beginning of a new partnership with ICH, where Vincent will be helming the organisation in his new capacity as president of ICH. In his stead, Ms Liu Hua will step up as deputy CEO of the group and will assist me in spearheading our overseas operations.”
Toe’s last day will be on April 24.
Shares in Yangzijiang Financial closed 0.5 cents lower or 1.47% down at 33.5 cents on Feb 28.