Yangzijiang eyes SGX-listing of spin-off by end-April

However, this is subject to the approval of the company’s shareholders.

The listing of Yangzijiang’s proposed spin-off of its investment segment on the mainboard of the Singapore Exchange is expected to proceed by end-April 2022 but is subject to the approval of the company’s shareholders.

In a response to questions from the Securities Investors Association Singapore, the company said the proposed spin-off via a transfer of existing investments to a newly incorporated company, Yangzijiang Financial Holdings (YZJFH), and its listing will be tackled in the extraordinary general meeting to be held on 18 April.

Ren Yuanlin will be the executive chairman of the company which will be “placing strong focus on expansion into fund and wealth management.”

Yangzijiang said that the board is not expecting significant risks in its operations that could delay the listing of the spin-off, but it is still subject to “potential adverse macroenvironmental changes or unforeseen circumstances.”

YZJFH is also proposing to acquire GEM Asset Management Pte. Ltd. which is a fund management firm. It is also planning to build a “recurring income-based model.”

Meanwhile, the COVID situation in Jiangsu in China, where the company has a shipyard, is less severe than in other parts of the country such as Shanghai as Jiangsu is not in lockdown.

However, the restrictions in place disrupted its operations such as mobility restrictions on cross-cities movements, and workers travelling between cities may have to undergo an isolation period. The measures also posed logistics challenges impacting the transportation of raw materials across cities.

Despite the logistics challenges, the company said its operations in its shipyards remain smooth.

“Overall, productivity at the Group’s shipyards have decreased but the Group will continue to mitigate potential disruptions to its business operations,” it said.

It also said that it remains on track to meet its delivery schedule for the first half of 2022 amidst the implementation of pandemic-related health measures and lockdown.

“The Group will continue to monitor the situation closely to prevent disruptions to our delivery schedule and maintain constant communication with our customers to keep them updated on the delivery of vessels,” it said.