Yangzijiang Financial Holding

[CY09]

Weighing the speed and magnitude, it does not make sense to give up 81.8% returns in a few years (45%/55%).

YZJ Shipbuilding has good cashflow and even if it waits for 5 years for the collateral to be seized and force sold. It is still a wonderful annualised returns. I am more inclined to believe that the collateral fell in value. Let's not forget the primary clients of DI for YZJ are not the state owned real estate developers/companies; they are the weaker private individuals. It may be that YZJ Shipbuilding held the worst of all debts where debt recovery would not yield 100% and hence it took such debts and not spin off to YZJFH.

However, this shows the collateral value held by YZJFH (especially land) is not "strong". Real Estate in China is going down because the population is declining and the supply of houses is too much. The property speculative element among the population was killed off. These diminish the value of real estate land banks that any company is holding.

[Yoyo]

2023 1H FAQ
GOOD communication from management
https://links.sgx.com/1.0.0/corporate-an..._final.pdf

[mslee888]

https://links.sgx.com/1.0.0/corporate-an...4188ea43ac

CEO Vincent Toe resigned, Chairman Ren will takeover as CEO...not a good sign for YZJFH.

[weijian]

https://links.sgx.com/1.0.0/corporate-an...4188ea43ac

CEO Vincent Toe resigned, Chairman Ren will takeover as CEO...not a good sign for YZJFH.

I think the C-suite shake up should be read in full context as below.

Mr Toe and Chairman Ren goes a long way before YZJFH spin off in mid 2022. Was Mr Toe (CIO-Spore) disappointed at the "slower than promised" pace of redemption of onshore Chinese capital onto offshore Spore?

I thought the redesignation of the CIO-China role is the more significant announcement, since 85% of its capital are still in China.

Yangzijiang Financial Announces Changes to Senior Management Roles

With Mr Toe’s impending departure and as part of the streamlining process, the Group has made the following strategic decisions that will take place on the Effective Date. The roles of (i) Chief Investment Officer – PRC and (ii) Chief Investment Officer – Singapore will be removed. The Group’s Executive Chairman, Mr Ren Yuanlin, will further assume the role of CEO on the Effective Date, and will assume the responsibility of overseeing the Group’s investments, including sourcing, executing, managing and monitoring of the Group’s investments, both in the PRC and Singapore, which are currently being undertaken by the Chief Investment Officer – PRC and Chief Investment Officer – Singapore.

https://links.sgx.com/FileOpen/Attachmen...eID=775430

[donmihaihai]

Why not look into this in another way.

Toe Teow Heng is an ex investment banker and rode the China wave in 2000s. A fund manager after that wave ended. His record is not available (never search) but it is reasonable to assume his record was at best so-so. Why? Because he sold his company to and became a CEO of YZJFH. If he was highly successful, why should he do it? I believe a good fund manager won't do it but a marketer will. And he is a marketer, just look at how different YZJFH and YZJSB in their PR approach. After some time, if he is not able to deliver, then he has to go. What YZJFH/YZJSB achieve today is by no accident. If it is anywhere near to my guess, then it is a slight plus for YZJFH.

As for Ren Yuanlin and why move money out of China, one of the best place for investment then, I think we can start think about it after he was "investigated" by the Chinese government. After with Ren Yuanlin being "retired" in Singapore while still young, it is not hard to see how what happened if you link both of them up. A marketer will do what they are best at. As for Ren Yuanlin, I can only hope that he will not think that just because he was successful at YZJSB, he will be good at investment. Same for Liu Hua, who I believe is the work horse YZJFH.

Of course, that is just me.

[Big Toe]

Cant comment much on Vincent Toe even though he shares the same sir same. (Actually no.)
But it would be nice good to see some stability within a new organization irregardless of capability.
I wouldnt read too much into the departure, for now.

What is true is that it would be extremely difficult and rare to find a capable person to run an entire company for you. Be it fund management or otherwise. If the person is capable enough to do that, usually the heart and the head would not be at the same place. If both the heart and head is at the right place, the person would be working for himself, no reason to do otherwise.

[CY09]

Chairman Ren is back at the helm. However, something has not changed; if YZJ Finance assets are real, the company itself is a gem. At 0.28 times P/B, YZJ finance should continue scopping up shares in the open market to realise shareholder value. However, this is not done.

It is going to be a tough question levied at Chairman Ren who seems no longer able to spot gems in my view. There is one under his nose, why is he not able to pick it up? unless.....

[weijian]

Chairman Ren is back at the helm. However, something has not changed; if YZJ Finance assets are real, the company itself is a gem. At 0.28 times P/B, YZJ finance should continue scopping up shares in the open market to realise shareholder value. However, this is not done.

It is going to be a tough question levied at Chairman Ren who seems no longer able to spot gems in my view. There is one under his nose, why is he not able to pick it up? unless.....

hi CY09,

What would you mean by "if YZJ Finance assets are real"? I reckon these assets are not fake and they exist in reality. But whether or not they are finally worth as it is valued by the Mgt, that is another question. For a public market to value its assets (or loan book) at 0.28x P/B, it is quite clear that it disagrees with Mgt and there is good probability of permanent impairment. The DI sales made by its parent earlier this year, has already confirmed Mr Market's assessment.

@donmihaihai,
I didn't know about Liu Hua been the workhorse....But I was appropriately annoyed when she kept mentioning about their "proprietary capital" during an IR call. How can capital be proprietary? It is just a commodity.
As for Chairman Ren, I remember previously Specuvestor did mention that he did a good job to get parent out of the shadow banking mess ~10years ago. While it remains to be seen if he is "good at investment" but all he needs to do here, is to get out of the current debt mess...

[CY09]

But whether or not they are finally worth as valued by the Mgt,--> My real means this. Whther the debt instruments are as real as the value described in its balance sheet.

AS the saying goes: "When looking at the balance sheet, you can be sure that the asset is as fully valued as it can be..."

[donmihaihai]

@donmihaihai,
I didn't know about Liu Hua been the workhorse....But I was appropriately annoyed when she kept mentioning about their "proprietary capital" during an IR call. How can capital be proprietary? It is just a commodity.
As for Chairman Ren, I remember previously Specuvestor did mention that he did a good job to get parent out of the shadow banking mess ~10years ago. While it remains to be seen if he is "good at investment" but all he needs to do here, is to get out of the current debt mess...

If not who, Ren Yuanlin won't be operating daily and who would he trust? She might be even preparing and shaping the investment decision. But it is just me again. I don't know what is really happening at YZJFH. As for Toe Teow Heng, just google his name, deal after deal will keep popping up. Ren Yuanlin name follow as well. Why work there for some little salary when he was doing multi million deals.

I would very much prefer YZJFH stay in China, stay right in the middle of debt mess, looking for opportunities. The street is flooded with blood because of debt mess. If YZJFH does that, I know what I would do next.