Yangzijiang Financial Holding Ltd reported a net loss attributable to shareholders of S$5.2 million for the year ended 31 Dec 2025, reversing a profit of S$304.6 million a year earlier, after setting aside S$290.9 million in expected-credit-loss (ECL) allowances on its debt investment portfolio.
The group’s total income from continuing operations fell 19% year-on-year to S$103.7 million, dragged down by a 29% slide in interest income to S$92.5 million as the average balance of debt investments in China declined. Basic and diluted earnings per share slipped to a negative 0.15 Singapore cent from 8.66 cents. The board did not propose a dividend for FY25, compared with a final payout of 3.45 Singapore cents per share for FY24 that was distributed on 15 May 2025.
Interest income remained the largest revenue contributor at S$92.5 million, or 89% of total income, followed by dividend receipts of S$4.1 million, up 29% YoY on higher distributions from venture-capital holdings. Net fair-value gains on financial and derivative instruments swung to a positive S$2.7 million from a S$7.3 million loss, reflecting steadier market conditions. Other income more than doubled to S$4.4 million, aided by stronger trading and commission fees.
Operating expenses eased 22% to S$11.5 million as headcount adjustments and lower business taxes trimmed both staff costs and other expenses. Despite these savings, the hefty ECL charges — mainly linked to deteriorating credit quality in China’s real-estate related exposures — pushed the group to a pre-tax loss of S$188.3 million from a S$175.3 million profit in FY24. A tax credit of S$53.8 million, arising from the recognition of deferred-tax assets on the new impairment provisions, partly offset the losses.
During the year the company completed the spin-off of its Maritime Fund and Maritime Investments Business via a distribution in specie, removing S$2.19 billion of net assets and eliminating S$167.1 million of non-controlling interests from its balance sheet. Total assets almost halved to S$1.89 billion, while cash and cash equivalents stood at S$638.2 million with no outstanding bank borrowings.
Looking ahead, management plans to redeploy capital towards a target mix of roughly 40% income-generating debt investments, 40% equity investments and 20% cash. About 20% of assets under management — currently S$1.71 billion — is earmarked for private equity opportunities, with the remainder to be invested in listed equities across China and Southeast Asia. For 1H 2026, the group intends to invest up to RMB1 billion in selected high-yield shares, subject to market conditions. It also aims to balance its geographic exposure evenly between China and the broader Asia-Pacific region over the next three years.
The board said the strengthened liquidity position and zero gearing after the maritime spin-off position the company to “progressively redeploy capital in a disciplined and measured manner,” while continued portfolio optimisation and recovery of non-performing assets remain near-term priorities amid the ongoing restructuring of China’s property and credit markets.