Yangzijiang Financial net profits up 25% to $201.8m in FY2023

A dividend payment of S$0.022 per share has been proposed.

Yangzijiang Financial saw its net profit jump 25% to S$201.8m in FY2023, its latest financial statement showed.

Total income– which includes interest income from its debt investment business, and investment income from maritime fund assets– rose 16% to S$348.4m for the fiscal year. This is despite interest income from debt investment businesses falling 17% to S$259.1m during the period.

Basic and diluted earnings per share is S$5.53 for FY2023, 31% higher than the S$4.22 announced for FY2022, which Yangzijiang Financial said was thanks to the group’s buyback activity during the period.

The board has proposed a dividend payment of S$0.022 per share, for a payout ratio of 40%, subject to shareholders’ approval during the annual general meeting scheduled on 24 April. 

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Looking ahead, Yangzijiang Financial said that it is taking measures to mitigate the impact of exposures to the Chinese real estate market. This includes minimising granting new loans exposed to the sector and undergoing loan restructuring and legal mechanisms to manage non-performing loans.

Already, the group revealed that it has reduced its China debt/ credit exposure to less than 50% of its total assets under management as of end-2023, from an 81% exposure in end-2021.

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Beyond China, the group is focused on its Maritime Fund, having already enlarged it to US$600m. Around US$300m has been earmarked for investments into what the group touts as “eco, modern, efficient, and highly marketable” maritime assets. 

The fund has so far closed 14 deals and invested around US$180m, Yangzijiang Financial said.