Uni-Asia Group Ltd. · SGX:CHJ
Uni-Asia — H1 2023 Earnings Presentation
50 slides from Uni-Asia's earnings presentation, Aug 14, 2023
Slide 1: 1H2023 Corporate Presentation
1H2023 Corporate Presentation
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements which can be identified by the context of the statement and generally arise when the Company is discussing its beliefs, estimates or expectations. Such statements may include comments on industry, business or market trends, projecti
Slide 3: Table of Contents
Table of Contents Corporate Overview 1H2023 Financial Highlights 1H2023 Business Update 3
Slide 4: Corporate Overview
@ UNI-ASIA itt GROUP LIMITED Corporate Overview
Slide 5: Corporate Profile
Corporate Profile The Group was founded on 17 March 1997 Listed on Singapore Shanghai Exchange on 17 August 2007 Bloomberg Code: UAG:SP Tokyo SGX Stock Code: CHJ Total number of issued shares: 78,599,987 The Group’s main offices are in Hong Kong Hong Kong, Tokyo and Singapore. Guangzhou The Group ha
Slide 6: Corporate Philosophy and Principles
Corporate Philosophy and Principles Corporate Philosophy We will continue to take on new challenges, create new value, and contribute to society. Corporate Principles 1. We will uphold business ethics, ensure regulatory compliance and fulfil our responsibilities as a member of society without fear,
Slide 7: Mission Statement
Mission Statement We aim to be a truly trusted partner for our clients as A PRODUCER OF ALTERNATIVE INVESTMENT OPPORTUNITIES and AN INTEGRATED SERVICE PROVIDER RELATING TO ALTERNATIVE INVESTMENTS so as to deliver value to the Group’s shareholders, clients and employees. To achieve this vision, we st
Slide 8: Business Model
Business Model • Acquire assets at • Manage and/or operate • Capital returns competitive prices. assets to enhance asset • Recurring income • Provide clients solutions value and recurring including charter income, relating to alternative income. administration fee assets including ship and income. p
Slide 9: Business Model Example - Subsidiary
Business Model Example - Subsidiary Subsidiary Lenders (consolidated) Fair Value Charter or Legend or Rental Realised Income Charterer / Tenant Gain/Loss Income to Uni-Asia 9
Slide 10: Business Model Example – JV Structure
Business Model Example – JV Structure Investment Partner(s) Admin Fee Loan Special Purpose Company Fair Lenders Arrangement Dividend/ (not consolidated) Value/ Fee Interest Realised Income G/L Acquisition/ Disposal Fee Brokerage Commission Charter or Legend Rental Income Income to Uni-Asia Charterer
Slide 11: Business Segments
Business Segments SHIPPING PROPERTY HEADQUARTERS Ship Owning Maritime Property Property Headquarters’ Maritime and Asset Investment Investment Shared Corporate Services Chartering Management (ex-Japan) (in-Japan) Services • Ship Owning • Investment/ • Commercial/ • Investment/ • Investment/ and Asse
Slide 12: 1H2023 Financial Highlights
1H2023 Financial Highlights 12
Slide 13: 1H2023 Profit
1H2023 Profit The Group recorded profit of US$4.3m for 1H2023 (EPS: 5.34 US₵/share), as shipping market slowed down (US$'000) 1H2023 1H2022 % Change Remarks Total income decreased by 39% as dry bulk shipping market Total Income 29,707 48,860 (39%) slowed down since mid-2022 Total expenses decreased
Slide 14: 1H Results For Past Years Profit After Tax
1H Results For Past 5 Years US$'m Profit After Tax 20.0 16.5 15.0 The Group’s 1H2023 10.0 profit was down to 6.8 7.0 US$4.3 million mainly 5.0 4.3 due to slower shipping market and HK - property business. 1H2019 1H2020 1H2021 1H2022 1H2023 (5.0) (3.9) 14
Slide 15: Dividend of 2.2 SG ¢/share
Dividend of 2.2 SG ¢/share The Board Key Dates for Dividend is pleased to announce Date on which Registrable Transfers an interim dividend of to be received by the Company will be registered before entitlements to the dividend are determined: 2.2 SG ¢/share 5.00 p.m., 19 September 2023 for 1H2023 re
Slide 16: Balance Sheet Summary
Balance Sheet Summary As at As at Increase / (US$’million) Remarks 30 Jun 2023 31 Dec 2022 (Decrease) Total assets reduced mainly due to Total Assets 218.4 236.7 (18.3) reduction in cash in reducing liabilities Total liabilities reduced mainly due to Total Liabilities 69.7 85.5 (15.8) repayment of b
Slide 17: Strong Balance Sheet
Strong Balance Sheet Financial Position as at 30 June 2023 US$'m 200.0 176.2 150.0 Current Assets > Current Liabilities 100.0 42.2 49.7 50.0 20.0 - Assets Liabilities Assets Liabilities Current Non-Current US$'m Debt/Equity Ratio Debt/Equity ratio is < 0.5 120% 150.0 90% 100.0 60% 50.0 30% - 0% 1H20
Slide 18: Total Assets Allocation
Total Assets Allocation 2.6% 3.6% Maritime Investment 14.4% Property Investment (ex-Japan) 19.9% 7.8% Property Investment (in-Japan) Cash and Cash Equivalents 8.4% 55.5% 60.5% 14.7% Others 12.6% US$’million As at 30 June 2023 As at 31 December 2022 Total Assets 218.4 236.7 18
Slide 19: Cash Flows
Cash Flows Operating cash flows were US$7.7 million (US$'000) 1H2023 1H2022 for 1H2023 compared to US$21.2 million for 1H2022 due to slowdown in ship charter Cash and cash equivalents at market, less properties under development beginning of the period 47,069 36,732 sold and absence of fee income fr
Slide 20: Cash
Cash US$'m Cash Balance 60.00 56.09 50.00 47.07 40.00 35.48 36.73 31.46 30.00 The Group’s total cash 20.00 decreased by US$15.6 million 10.00 in 1H2023. 0.00 Dec 19 Dec 20 Dec 21 Dec 22 Jun 23 US$’m Operating Cashflows 25.0 18.22 21.19 20.0 15.0 10.0 8.13 7.69 5.0 1.84 Operating cashflows of the 0.0
Slide 21: Borrowings
Borrowings US$'m Borrowings as at End of Financial Period 142.6 Total borrowings reduced mainly due to 150.0 scheduled repayment and prepayment of 114.0 existing borrowings. 100.0 83.8 71.3 72.7 44.4 22.3 62.0 Total finance costs of the Group for 1H2023 had 50.0 31.1 13.0 increased compared to that
Slide 22: Borrowings vis-à-vis Cash
Borrowings vis-à-vis Cash As at 30 June 2023 Current Non-Current Total Book Values of Borrowings Borrowings Borrowings Borrowings Assets Collateralised As at 30 June 2023, all of the Collateralised By: USD'm USD'm USD'm USD'm Group’s total borrowings of US$62.0 million are secured by Ship assets 12.
Slide 23: 1H2023 Business Update
@Y UNI-ASIA tl GROUP LIMITED 1H2023 Business Update 23
Slide 24: Group Segment Results
Group Segment Results Both Shipping and Property Segments were profitable for 1H2023 although net profits for both segments had declined. (US$’000) 1H2023 1H2022 % Change Revenue 23,340 36,608 (36%) Shipping Net Profit / (Loss) 4,712 19,109 (75%) Revenue 6,306 12,224 (48%) Property Net Profit / (Los
Slide 25: Results of Shipping Segment
Results of Shipping Segment Following the stellar performance in 2022, the shipping market has slowed since 2H2022. Accordingly, the Group’s profit from shipping has declined by 75% from US$19.1 million in 1H2022 to US$4.7 million in 1H2023. (US$’000) 1H2023 1H2022 % Change Revenue 23,340 36,608 (36
Slide 26: Ship Owning and Chartering
Ship Owning and Chartering (US$'000) 1H2023 1H2022 % Change Remarks Turnover 21,201 34,615 (39%) Charter income decreased by 40% due to slower dry bulk Charter Income 20,568 34,036 (40%) market in 1H2023 as compared to 1H2022. Fee Income 381 458 (17%) Interest Income 167 13 N/M Other Income 85 108 (
Slide 27: Baltic Handysize Index
Baltic Handysize Index The bulkcarrier market which started slowing in 2H2022, mainly due to softening of seaborne dry bulk trade demand coupled with easing of port congestion, continued in 1H2023. Iron ore trades were on weak trends due to China’s weakening property sector, while the Ukraine war, R
Slide 28: Seaborne Dry Bulk Trade Supply/Demand
Seaborne Dry Bulk Trade Supply/Demand Dry Bulk Trade Demand vs Dry Bulk Ship Supply 5.0% 3.3% 4.0% 3.3% 3.3% 3.0% 2.4% 2.0% 2.9% 2.9% 1.9% 1.0% 1.7% 0.0% (1.0%) (1.5%) (2.0%) 2022 2023 (f) 2024 (f) Trade Demand Growth (Bn Tonne Miles) Handysize Dry Bulk Supply Growth Dry Bulk Supply Growth Source: C
Slide 29: Average Charter Hire Rate Per Day of Wholly Owned Ships
Average Charter Hire Rate Per Day of Wholly Owned Ships No. of Total Charter Income (US$'000) Total Charter Income and No. of Operating Days for each Quarter Operating Days 20,000 1,500 15,000 1,000 10,000 500 5,000 0 0 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 2Q2023 Charter In
Slide 30: Wholly Owned Dry Bulk Portfolio
Wholly Owned Dry Bulk Portfolio Name of Ship Capacity Type Year of Built Shipyard 1 M/V Uni Challenge 29,078 DWT Bulker 2012 Y-Nakanishi 2 M/V Uni Wealth 29,256 DWT Bulker 2009 Y-Nakanishi 3 M/V Uni Auc One 28,709 DWT Bulker 2007 Shin-Kurushima 4 M/V Victoria Harbour 29,100 DWT Bulker 2011 Y-Nakanis
Slide 31: Maritime Asset Management
Maritime Asset Management (US$'000) 1H2023 1H2022 % Change Remarks Turnover 1,698 1,627 4% No arrangement deal closed in 1H2023 Fee Income 359 1,459 (75%) resulting in decrease in fee income. Gain recognised in 1H2023 pertained to Investment Returns 1,274 102 N/M distributions received from 49% owne
Slide 32: Joint Investment Dry Bulk Portfolio
Joint Investment Dry Bulk Portfolio Name of Joint Investment Ownership Type Capacity Year of Built Shipyard Company Percentage 1 Olive Bulkship S.A. 18% Bulker 57,836 DWT 2015 Tsuneishi 2 Polaris Bulkship S.A. 18% Bulker 57,836 DWT 2015 Tsuneishi 3 Quest Bulkship S.A. 18% Bulker 37,700 DWT 2016 Imab
Slide 33: Maritime Services
Maritime Services The Group’s Maritime Services arm includes the Services provided include commercial / following subsidiaries: technical management of ships and ship o Uni Ships and Management Limited related brokerage services for chartering o Wealth Ocean Ship Management (Shanghai) Co., Ltd as we
Slide 34: Results of Property Segment
Results of Property Segment Property business segment, led by Property Investment (in-Japan) sub-segment, recorded total profit of US$1.1 million. (US$’000) 1H2023 1H2022 % Change Revenue 6,306 12,224 (48%) Property Net Profit / (Loss) 807 1,323 (39%) Property Investment Revenue 356 133 168% (ex-Jap
Slide 35: Property Investment (ex-Japan)
Property Investment (ex-Japan) (US$'000) 1H2023 1H2022 % Change Remarks Turnover 356 133 168% Fee income, comprising mainly administration fee Fee Income 245 242 1% income, remained fairly stable No significant returns were recorded for the Investment Returns 101 (117) (186%) portfolio of HK propert
Slide 36: Hong Kong Properties
Hong Kong Properties The Group has invested in 8 Hong Kong property projects to date. We had recovered capital and received/ recorded strong positive returns from the first three projects in the past (i.e. HTR35, CSW650, and K83 in the picture on the left). While the commercial/ industrial property
Slide 37: Updates on Hong Kong Property Projects
Updates on Hong Kong Property Projects 2nd HK Property Project – CSW650 Final Dividend HKD437,000 (around USD56 thousands) received from project. Total Dividend Received HKD193 million (around USD25 million) 3rd HK Property Project – K83 HKD50 million or around USD6.4 million Investment: (11.9% effe
Slide 38: Updates on Hong Kong Property Projects
Updates on Hong Kong Property Projects T73 5th HK Property Project – T73 HKD33.8 million or around USD4.3 million Investment: (7.5% effective ownership) Location: 71 – 75 Chai Wan Kok Street, Tsuen Wan, Hong Kong Project: Industrial building 4 office units and 1 car park were sold in 1H2023, Current
Slide 39: Updates on Hong Kong Property Projects
Updates on Hong Kong Property Projects 7th HK Property Project – T11 HKD53.75 million or around USD6.9 million Investment: (8.27% effective ownership) Location: 11 – 15 Chai Wan Kok Street, Tsuen Wan, Hong Kong Project: Office building 2 office units were sold in 1H2023. A total of 2.5% GFA Current
Slide 40: Tsuen Wan Projects (Aerial View)
Tsuen Wan Projects (Aerial View) 7th – T11 5th – T73 4th – T18 40
Slide 41: Property Investment (in-Japan)
Property Investment (in-Japan) (US$'000) 1H2023 1H2022 % Change Remarks Turnover 5,950 12,091 (51%) Decrease in fee income mainly due to less arrangement fee Fee Income 1,271 1,717 (26%) income from acquisition/disposal of property assets. Sale of Properties under 1 property under development were s
Slide 42: ALERO Projects
ALERO Projects Before The Group invests in and develops small residential property projects in Tokyo, named “ALERO” Series. The Group purchases land and develops into 4 - 5 storey buildings with 10 - 30 units of studio or maisonette type flats. The completed projects are typically sold en bloc. Afte
Slide 43: ALERO Projects
(9) ALERO Projects
Slide 44: Classification of ALERO Projects
Classification of ALERO Projects The Group’s ALERO projects may be classified as the following in the Group’s financials: Balance Sheet Amount Stake owned Investment Balance Sheet Income Statement As At 30 June 2023 by the Group Objective Classification Classification US$' million Develop and hold I
Slide 45: ALERO Projects
ALERO Projects The Group has very stringent selection criteria in selecting new ALERO projects and will not compromise internal assessment requirements to chase after new projects. It is due to the Group’s cautious approach that every ALERO project that the Group invested in had been profitable sinc
Slide 46: UACJ Assets Under Management
UACJ Assets Under Management JPY'billion 45.0 UACJ Asset Management AUM by Segment 38.2 40.0 36.9 The Group’s property assets under 35.0 32.7 management by subsidiary Uni-Asia Capital 30.4 (Japan) Ltd (“UACJ”) had reached JPY38.2 30.0 26.3 billion as at 30 June 2023. As shown on the 25.0 23.9 chart
Slide 47: Example of New Project Exploration
Example of New Project Exploration The Group initiated the purchase of a piece land in Furano, Hokkaido with a group of investors (including Singaporean investors) in 2021. The Group had a minority stake in this purchase and earned fees in initiating the acquisition. The land was sold in 1H2023 for
Slide 48: Retirement of Mr. Fukuyado as CEO
Retirement of Mr. Fukuyado as CEO Mr. Kenji Fukuyado first joined the Group in 2001 and had since held various management appointments within the Group before being appointed Chief Executive Officer in 2020. Under Mr. Fukuyado’s leadership, the Group successfully weathered the COVID-19 pandemic, res
Slide 49: Appointment of Mr. Iwabuchi as CEO
Appointment of Mr. Iwabuchi as CEO Following the retirement of Mr. Fukuyado, the current Executive Director of the Company, Mr. Masahiro Iwabuchi will be appointed Chief Executive Officer of the Company with effect from 29 February 2024. Mr. Iwabuchi joined the Group when it was established in 1997
Slide 50: Thank You!
Thank You! For Investor/Media enquiries: clarissa@gem-comm.com emily@gem-comm.com kenneth@gem-comm.com 50