Yangzijiang Financial Holding Ltd. · SGX:YF8
Yangzijiang Financial — FY2022 Earnings Presentation
35 slides from Yangzijiang Financial's earnings presentation, March 2023
Slide 1: Yangzijiang Financial Holding Ltd. 2022 Results Presentation
Yangzijiang Financial Holding Ltd. 扬子江金融控股有限公司 2022 Results Presentation March 2023 1
Slide 2: Content
1 CORPORATE OVERVIEW 2 FINANCIAL RESULTS CONTENT 3 INVESTMENT MANAGEMENT 4 FUND AND WEALTH MANAGEMENT 5 SUMMARY 2
Slide 3: At a Glance
AT A GLANCE SGX:YF8 S$1.29b S$3.87b Stock Code Market Cap Net Asset Value (As of 28 February 2023) (As of 31 Dec 2022) 43% S$200m S$4.1b Dividend Payout Ratio (For FY2022) Share Buyback Programme (~S$99m utilized as of 31 Dec 2022; Asset Under Management 6.6% shares repurchased) （As of Dec 2022) Sha
Slide 4: Strengthened the Core Team
STRENGTHENED THE CORE TEAM Since April 2022, the Group has grown its team to 80 professionals Board of Directors Key Management Ren Yuanlin Toe Teow Heng Liu Hua Executive Chairman CEO, CIO - Singapore CFO and COO Investment Team Risk Management and Compliance Peng Alex Yan Wu Head of Sean Low Xingk
Slide 5: Overview of Strategies
OVERVIEW OF STRATEGIES Yangzijiang Financial Holding Ltd. Fund Wealth Management Investment Management Business Management Business Debt Investment Direct Fund Fund Wealth Microfinancing (at amortised costs) Investments Investments Management Management Fixed interest debt Provision of Investment in
Slide 6: 2022 Financial Results
2022 FINANCIAL RESULTS 6
Slide 7: 2022 Financial Highlights
2022 FINANCIAL HIGHLIGHTS Decrease in total income due to strategic portfolio reshuffling + negative impact on China related investments which were affected by the weak economic growth in 2022 S$(million) except for per share y-o-y % y-o-y % 2H2022 2H2021 2022 2021 item change change Total Income 13
Slide 8: 2H2022 Income Highlights
2H2022 INCOME HIGHLIGHTS y-o-y S$ million 2H2022 2H2021 Comments change Total Income 132.4 145.7 -9% • Lower average debt investments balance in 2H2022 vs 2H2021 • Increase in non-performing loans during 2H2022 Interest Income 147.9 178.1 -17% • Partially offset by higher average cash balance and hi
Slide 9: 2022 Income Highlights
2022 INCOME HIGHLIGHTS y-o-y % S$ million 2022 2021 Comments change Total Income 306.2 384.8 -20% • Lower average debt investments balance in 2022 vs 2021 • Increase in non-performing loans during 2H2022 Interest Income 332.8 368.7 -10% • Partially offset by higher cash balance and higher return fro
Slide 10: 2022 Balance Sheet Highlights
2022 BALANCE SHEET HIGHLIGHTS S$ million 31 Dec 2022 31 Dec 2021 Comments Total Assets 4,205.9 4,399.9 To be discussed in the next slide Mainly increase due to a rise in deferred income tax liabilities as a result of undistributed dividend receivable Total Liabilities 332.1 151.1 from PRC subsidiary
Slide 11: 2022 Balance Sheet Highlights
2022 BALANCE SHEET HIGHLIGHTS Assets as of 31 Dec 2022 (S$ million) Description Current Assets Non-Current Assets Total Comments Comprises of the Group’s investments in Financial assets at fair value through P&L 56.2 413.9 470.1 equities and/or funds Debt Investments at amortised cost 2,264.6 407.3
Slide 12: Current Portfolio
CURRENT PORTFOLIO Portfolio Allocation By Risk Profile And Portfolio Allocation By Asset Classes Geography Cash and Investment Singapore, yield property, S$534m, Most of the assets in Singapore enhancement S$22m, 0.5% 12.9% are denominated in USD. products, S$891m, 21.6% As of As of 31 Dec 2022 Publ
Slide 13: Equity Portfolio
16.3% EQUITY PORTFOLIO Retailing Education Business Service 3% 2% 4% Financial Service Machinery 5% 22% Software 6% Equity Portfolio By Sector New Energy Net asset value: S$672m 6% As of 31 Dec 2022 Real Estate 6% Manufacture 17% Health Care 8% Metals & Mining Others 10% 11% 13
Slide 14: PRC Debt Investment Portfolio
58.2% PRC DEBT INVESTMENT PORTFOLIO (Excluding Micro-Finance) PRC Debt Investment Portfolio (Excludes microfinancing) Debt Investments By Maturity S$ million (PRC) 2022 more than 2 Beginning of financial period 3,514.6 years, 5% Investments transferred to YZJ Group before spin-off (536.4) Additions
Slide 15: PRC Debt Investment Portfolio
58.2% PRC DEBT INVESTMENT PORTFOLIO (Excluding Micro-Finance) 3% 3% 2% 4% 4% 2% 5% 4% 11% 10% 4% 5% 4% 18% 27% 29% 37% 29% 35% 45% 34% 35% Analysis on 14% 27% Type of 25% 36% 44% 25% 22% 22% Collaterals 51% (%) 23% 27% 23% 23% 34% 30% 25% 30-Jun-19 31-Dec-19 30-Jun-20 31-Dec-20 30-Jun-21 31-Dec-21 3
Slide 16: PRC Debt Investment Portfolio: Non-Performing Loan
PRC DEBT INVESTMENT PORTFOLIO : NON-PERFORMING LOAN (Excluding Micro-Finance) Principal Provisions Net Book Non-Performing Projects Industry 31-Dec-22 31-Dec-22 Value (S$’millions) (S$’millions) (S$’millions) Project A Diversified Consumer Services 10.5 3.4 7.2 Project B Construction & Engineering 3
Slide 17: PRC Debt Investment Portfolio: Non-Performing Loan
PRC DEBT INVESTMENT PORTFOLIO : NON-PERFORMING LOAN (Excluding Micro-Finance) Active credit risk management and High Non-performing loan ratio Increase in allowances for credit and other losses due to the Group’s debt recovery efforts showcased in due to deteriorating China real estate market in 202
Slide 18: PRC Debt Investment Portfolio: By Risk
58.2% PRC DEBT INVESTMENT PORTFOLIO : BY RISK (Excluding Micro-Finance) Expected Credit Net FY2022 SGD (million) Principal Provision Loss Rates Balance* % Performing 1,348 (76) 5.6% 1,272 53% Under-performing 149 (16) 10.9% 133 6% Non-performing 1,142 (145) 12.7% 997 41% 2,639 (237) 8.9% 2,402 100%
Slide 19: Investment Management
INVESTMENT MANAGEMENT 19
Slide 20: Where We Want To Be
WHERE WE WANT TO BE Long Term Target Grow the Group’s AUM and diversify its exposure Increase AUM by Reduce Debt Investment In China Increase Investment in Singapore Launch of own General Partner 70% (GP) Funds (Target 59% 50% 20-60% of AUM to be raised from third parties) 30% 13% Expand Fund/Wealth
Slide 21: Liquidity Pool Scheme - To facilitate capital flow outside China
Liquidity Pool Scheme- To facilitate capital flow outside China Allows the deployment of capital from China to overseas in a faster and more cost efficient manner Qualified Domestic Limited Liquidity pool scheme Dividend distribution Partnership (QDLP) What is it Foreign asset managers raise RMB fro
Slide 22: Investment Key Focus
INVESTMENT KEY FOCUS In China Global Beyond China Clean Energy Maritime Fund Capital markets outside China Provide ship financing for ship Ship financing and the facilitation building projects that utilise clean of sales and leaseback of vessels Direct investments energy (E.g. Liquified Natural Gas)
Slide 23: Investment Management – Fund Investments
INVESTMENT MANAGEMENT – FUND INVESTMENTS Sustainable and responsible investing in maritime assets and technologies Maritime Fund- Up to US$500 million Fund Objective: Generate a steady stream of income and attractive returns through investments in maritime assets (including vessels) for the purpose
Slide 24: Fund Management Wealth Management
FUND MANAGEMENT WEALTH MANAGEMENT 24
Slide 25: Fund and Wealth Management
FUND AND WEALTH MANAGEMENT To generate fee income and advisory income Wealth Management AUM Signed an agreement to provide investment advisory services for a family office S$500m Fund Management AUM S$116m (US$86m) ICH Gemini Asia Growth Fund o Fund term has been extended to June 2023 S$209m (US$155
Slide 26: Summary
SUMMARY 26
Slide 27: Summary
0.3x Price/Book SUMMARY S$1.29b S$3.87b Market Cap Net Asset Value (As of 28 Feb 2023) (As of 31 Dec 2022) Team of professional industry experts Aims to diversify across vintage, asset classes and geographies Three-pronged strategy o Co-GP fund; GEM o Access to top-tier PE and Private Credit Funds o
Slide 28: Disclaimer
DISCLAIMER The presentation is prepared by Yangzijiang Financial Holding Ltd. (the “Company”) and is intended solely for your personal reference and is strictly confidential. The information contained in this presentation is for information only and is subject to change without notice, its accuracy
Slide 29: Thank You
THANK YOU For media and investor enquiries: public@yzjfin.com emily@gem-comm.com cy@gem-comm.com 29
Slide 30: Board of Directors
BOARD OF DIRECTORS Ren Yuanlin Executive Chairman Toe Teow Chief Executive Officer, Chief Investment Officer - (任元林) Heng Singapore • Mr. Ren is the founder of Yangzijiang Shipbuilding Ltd. and currently the Chairman of YZJFH Board • Mr. Toe has over 25 years of experience in fund management and inv
Slide 31: Key Management
KEY MANAGEMENT Toe Teow Heng (卓侨兴) Chief Executive Officer, Chief Investment Officer - Singapore • Mr. Toe has over 25 years of experience in fund management and investment advisory, M&A, IPO deals and fundraising, throughout Asia. Prior to joining ICHAM, a Singapore-based fund management company as
Slide 32: Key Management
KEY MANAGEMENT Su Qing (苏庆) Chief Compliance Officer – PRC • Mr. Su has over 14 years of experience in handling the legal affairs of Yangzijiang Shipbuilding (Holdings) Ltd. • He joined Yangzijiang Shipbuilding (Holdings) Ltd in November 2007 and has progressed through the ranks to the Legal Directo
Slide 33: Heads of Investment Team
Heads of Investment Team Alvin Chew (周利源) Head of Private Investments • Prior to joining the Company, Mr Chew was the Managing Partner of Investments & Head of Strategic Growth Programme, China at EDBI Pte. Ltd. (“EDBI”), the investment arm of Singapore’s Economic Development Board. • During his
Slide 34: Heads of Investment Team
Heads of Investment Team Alex Yan (闫中兵) Head of Shipping & Maritime Technology Fund • Mr. Yan has 20 years of experience in the shipping industry, holding positions that range from leasing and financing to fleet management. • His past experience includes being the head of Partner Relations – Far Eas
Slide 35: Advisors
ADVISORS Sean Low Shieng Ang (刘轩昂) External Senior Investment Advisor • Mr Low is currently the Chief Executive Officer and Chief Investment Officer of Golden Vision Capital (Singapore) Pte. Ltd., a global private equity (“PE”) fund registered with the Monetary Authority of Singapore and anchored by
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