Yangzijiang Financial H2 profit jumps 53.3% as dividend income surges to S$6.3 million

YANGZIJIANG Financial Holding posted a web revenue of S$39.3 million for the six months ended Dec 31, 2023, up 53.3 per cent from earnings of S$25.6 million within the year-ago interval.

This got here as its dividend earnings shot as much as S$6.3 million, from nearly S$110,000 a yr earlier.

The mainboard-listed funding supervisor, which was spun off from Yangzijiang Shipbuilding, attributed the dramatic rise in dividend earnings to its non-public fairness funds that invested in China.

Apart from dividend earnings, the group identified that it additionally derived “significant” earnings from maritime non-public fairness funds, noting that it “closely mirrors” annual figures at S$23 million.  

However, curiosity earnings from its debt investments enterprise – a considerable earnings supply for the group – fell 10 per cent within the half-year, to S$118.3 million. The group attributed this to a decrease common stability of debt investments over the interval.

That mentioned, curiosity earnings from its money administration actions grew 3 per cent, rising to S$17.5 million, from S$17 million within the year-ago interval, as a consequence of a better common money stability and improved returns.

Overall, income for H2 FY2023 rose 12.8 per cent yr on yr, to S$142.3 million.

Earnings per share stood at 1.08 Singapore cents for the half-year, up from 0.68 cents a yr in the past.

The board has proposed a last money dividend of two.2 Singapore cents per extraordinary share, greater than the 1.8 cents per share declared for FY2022.

Vincent Toe, chief government officer of Yangzijiang Financial, mentioned the 22 per cent improve in dividend per share got here as a “reward” for shareholders amid the group’s improved efficiency in FY2023 regardless of difficult market situations.

“Our improved performance reflects our higher risk-adjusted returns and various initiatives to increase the group’s assets under management,” he mentioned, stating that the group has sturdy threat management and company governance insurance policies in place.

“This crystallises the road map for the group to transit to our next phase of growth,” he added.

For the total yr, the group’s web revenue rose 24.6 per cent to S$201.8 million, from S$162 million in FY2022. Total earnings grew 16 per cent to S$348.4 million, from S$300.4 million earlier than.

Notably, the group spent 125 per cent extra on compensating its staff within the yr, spending S$8.1 million, up from S$3.6 million in FY2022. 

The group mentioned this was as a consequence of its “strategic expansion” efforts, including that it had raised its Singapore headcount to help its rising enterprise operations.

The group additionally made a foray into maritime fund investments, which added considerably to bills. Operating prices of the brand new maritime fund property got here in at S$9.2 million for FY2023.

Meanwhile, its web international trade positive aspects fell to S$8.4 million within the yr, from S$42.4 million a yr earlier. This got here amid the slowing development of the US greenback’s appreciation in opposition to the Chinese yuan over the yr.

As at Dec 31, 2023, the group had S$4 billion of property underneath administration (AUM).

Moving ahead, the group mentioned it would stay targeted on its diversification efforts. 

It additionally mentioned it has set a brand new long-term goal to additional cut back its China debt or credit score publicity to lower than 30 per cent of whole AUM. The ratio stood at 40 per cent as on the finish of 2023, it famous.

Yangzijiang Financial hit its earlier goal of getting China debt or credit score publicity be lower than 50 per cent of whole AUM forward of schedule, within the third quarter of 2023.

Regarding its debt investments in China, the group mentioned it would proactively take measures to mitigate the influence of exposures to the Chinese actual property market. It added that it has minimised the granting of recent loans which are uncovered to the sector.

It will “diligently” handle its non-performing loans by way of avenues together with mortgage restructuring and authorized treatments, it mentioned.

The group additionally intends to optimise potential returns from its maritime fund, which “remains key”. In doing so, it would proceed to collaborate with professionals and establishments on a world scale to play a “dual role”, each as a facilitator and strategic investor, it mentioned.

Shares of Yangzijiang Financial closed down 1.5 per cent at S$0.335 on Wednesday previous to the outcomes announcement.