Yangzijiang Financial Holding

[dreamybear]

Kudos to the mgmt for being proactive in improving the communication and engagement with shareholders.

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OVERVIEW OF INVESTMENT STRATEGIES AND FREQUENTLY ASKED QUESTIONS
https://links.sgx.com/FileOpen/YZJ%20FAQ...eID=730772

[weijian]

Kudos to the mgmt for being proactive in improving the communication and engagement with shareholders.

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OVERVIEW OF INVESTMENT STRATEGIES AND FREQUENTLY ASKED QUESTIONS
https://links.sgx.com/FileOpen/YZJ%20FAQ...eID=730772

Thanks dreamybear. I thought this question would be really interesting for all OPMIs to know. While it is in progress but the approval is pending to transfer funds offshore and hit their medium goal of 50% of assets outside China.

10. How does the Group transfer funds out of China?

The Group is also in the midst of applying for the Qualified Domestic Limited Partnership (“QDLP”) program. As mentioned previously in the introductory document, the QDLP program is one that allows foreign and domestic (PRC) asset managers to raise RMB from high net worth and institutional investors in China to
be channelled towards offshore investments through a Chinese product or fund.

For an offshore entity to participate in the QDLP program, it will first have to apply for the “QDLP allocation quota” from the local authority, which the Group has obtained. Subsequently, to utilise its allocated quota, the Group shall (i) seek a license under the Asset Management Association of China (“AMAC”); and (ii) be
registered as a QDLP manager. The Group is currently in the process of fulfilling the AMAC licensing requirements.

The Group can also repatriate funds via dividend payments, of which full provision for the withholding tax has been made

[Squirrel]

Kudos to the mgmt for being proactive in improving the communication and engagement with shareholders.

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OVERVIEW OF INVESTMENT STRATEGIES AND FREQUENTLY ASKED QUESTIONS
https://links.sgx.com/FileOpen/YZJ%20FAQ...eID=730772

Yes this is a very informative piece. This is the information asymmetry that I was talking about that could be driving a discount to stock price. In the Q&A piece, the company clearly spells out that their debt instruments are the “closed loop” kind that is backed and secured by hard assets. This is vastly different from corporate loans hogging the headlines as I have mentioned in my article.

The issue of Share Buybacks is also addressed. It’s in line with what I think is best for the company, and very consistent with how they should act as finance professionals. They should always aim to buy low and not to make temporal price changes by flooding the market. Seemingly if prices stay at these levels, they will use up the $200m as much as possible. They can easily achieve the 395m shares with change in the pocket.

All in all, this answers a lot of queries and hopefully fills up the information gap. I am particularly interested in the ship financing portion. This is a direct link up to their shipyards. They could much more efficiently track progress and drawdowns on loans, client integration by being closer to the buyer etc. it’s a very exciting space for them to develop.

[CY09]

Besides being proactive in its communications to the investing community, YZJFH has been active in its share buyback to back its words.

However 3 days since its announcement to clarify its balance sheet/investment portfolio, nothing has improved. In my view, the proof is in eating the pudding; this means YZJFH has to execute what it promised: redeeming its China investments shifting s$1 billion for investments in Singapore, maxing this year's share buyback, s$100 million to fund its expected dividends by the release of its year end FY report in February 2023 and renewal of the s$200 million share buyback mandate in April 2023 as well as executing it.

This operational execution will clear the doubts of naysayers that its China investments are set for a "huge write off"; that the cash and investments are real. Failure to do so and we will continue to see the current huge discount

<vested>

What would be more interesting is that YZJFH maxes its 10% share buyback by the end of this year (Dec 2022) and convenes another EGM to renew it to last until April 2023. If YZJFH does this, it will definitely narrow the discount factor. *Hint to YZJFH Investor relations, if they are reading this*

[Yoyo]

Well said, CY09.  I concur with your views and hopefully we are able to see YZJFH management making good progress in that direction.  It will be good for YZJFH management to note the good faith suggestions penned in this forum.

Vested with 400k shares
PS: I am just an insignificant member in this community.  Collectively the shareholding of ValueBuddies in this well regarded investment community is a different story.  YZJFH, we hope we got your attention.

[Squirrel]

Well said, CY09.  I concur with your views and hopefully we are able to see YZJFH management making good progress in that direction.  It will be good for YZJFH management to note the good faith suggestions penned in this forum.

Vested with 400k shares
PS: I am just an insignificant member in this community.  Collectively the shareholding of ValueBuddies in this well regarded investment community is a different story.  YZJFH, we hope we got your attention.

Hi Yoyo,

400k shares from a partial divestment from Samudera is very impressive! Makes me wonder how much you have in Samudera itself! We are once again in the same boat. Hope this works out as well!

CY09 is right in pointing out that there is actually a very straightforward path to increasing shareholder value. The company just need to continue keeping up the share buy backs and they will either dry up the float first or create such immense value that makes the company hard to ignore.

[CY09]

Yes. YZJFH has a straightforward path to execute which is to honor its promises and words that the company is undervalued relative to the price Mr Market is ascribing

If it continues to do so, rational investors will not complain. However, should YZJFH reduce the speed of its share buyback when trading volume remains the same. It becomes a concern. As it has become a company I am invested, I am tracking closely the speed of its buyback relative to trading volume. Based on the trajectory of its share buyback, YZJFH will max its mandate in about 60 trading days which is end Nov.

The company will need to be pro-active to renew its share buyback mandate and cancel all the shares it repurchased in end Oct, invoke a virtual EGM which is likely to be passed and resume its share buybacks as the market continues to sell down its shares. From what I read and hear, the sell down is largely due to perceived distrust market participants have on YZJFH's debt investments. This action is something I will be watching closely to see if YZJFH does what it says

[weijian]

Interesting to see the ex SGX guy and currently lead ID of the company, backing the company with his own cash.

https://links.sgx.com/FileOpen/_eFORM1V2...eID=731993

[CY09]

Hopefully the ID's actions are due to him seeing YZJFH has moved a significant amount of capital from China to Singapore.

The rumour mills are still circulating that China is in a bad shape and YZJFH is struggling to redeem its china investments and shifting the money to SGD. Time will only tell who is right. I would appreciate if YZJFH provides an interim update in November 2022 on the status of its fund transfers, hopefully with close to SGD 900 million of the required SGD 1.1 billion transferred to Singapore

What is important to me is seeing a SGD 1.1 billion of cash + investment portfoilo in Singapore in Feb 2023 slides to fund the declared dividends, spent an additional SGD 150-170 million to purchase 10% of shares as part of the share buyback mandate and renewing it. If it dosent happen, next year's AGM, which likely is a physical event, will be a good show to watch.

I am starting to sound like a broken recorder repeating the same thing*

[BlueKelah]

Hopefully the ID's actions are due to him seeing YZJFH has moved a significant amount of capital from China to Singapore.

The rumour mills are still circulating that China is in a bad shape and YZJFH is struggling to redeem its china investments and shifting the money to SGD. Time will only tell who is right. I would appreciate if YZJFH provides an interim update in November 2022 on the status of its fund transfers, hopefully with close to SGD 900 million of the required SGD 1.1 billion transferred to Singapore

What is important to me is seeing a SGD 1.1 billion of cash + investment portfoilo in Singapore in Feb 2023 slides to fund the declared dividends, spent an additional SGD 150-170 million to purchase 10% of shares as part of the share buyback mandate and renewing it. If it dosent happen, next year's AGM, which likely is a physical event, will be a good show to watch.

I am starting to sound like a broken recorder repeating the same thing*

At the end of the day its a mega-SCHIP. No matter whats on the balance sheet they are just paper numbers, you can see hard asset things like property etc... but you wont know exactly where that cash is and investment portfolio you wont know exactly what they invested in if its paper or if it can be sold. 

China is definitely getting in a worse shape now as FED funds go up and up and up causing offshore credit markets to tighten even more. You can see that only the USD is going up, other major currencies are all going down. Since the mortgage payment strikes not much news coming out of china except for reports of covid lockdowns. 

IMO YZJ has partition off their junk loans portfolio and used the SGX to relist. Should something really bad happen to the property sector, i wont be surprised if YZJF has to do some massive write downs. They may be forced to use up the cash as well to plug any leaking boats.