Yangzijiang Financial H1 profit from continuing operations falls 29% to S$38.3 million

[SINGAPORE] Yangzijiang Financial Holdings on Wednesday (Aug 12) posted a 29 per cent year-on-year drop in profit from its continuing operations to S$38.3 million for its first half ended Jun 30, from S$53.9 million.

Its overall net profit fell 72 per cent over the same period, after its maritime investments business was classified as a discontinued operation following its spinoff and listing as Yangzijiang Maritime Development on Nov 18, 2025.

Profit from continuing operations fell 29 per cent to S$38.3 million, compared to S$53.9 million in the previous corresponding period.

The group had recorded S$89.6 million in net profit from discontinued operations in H1 FY2025, prior to the maritime unit’s listing.

Total income from continuing operations for H1 FY2026 fell 31 per cent to S$35.5 million, from S$51.5 million in the preceding year.

Interest income, the group’s primary source of revenue, dropped 40 per cent year on year to S$31.2 million from S$52.2 million, mainly attributable to a lower average balance-of-debt investments in China.

The drop in income was partially cushioned by a net fair-value gain of S$2.7 million on financial assets and liabilities, reversing a net fair-value loss of S$1.4 million in H1 FY2025.

Other income rose to S$1.5 million in H1 from S$350,000, driven by higher trading and commission income.

Credit loss allowance reversals rose 27 per cent to S$16.6 million from S$13 million, as the group recovered certain non-performing debt investments and recorded full repayments on other debt holdings.

SEE ALSO

Yangzijiang Financial sinks into red in H2, posts FY2025 loss on China property provisions

Total expenses rose, with employee compensation increasing 93 per cent to S$2.8 million from S$1.4 million, largely due to one-off performance-based incentive payments recognised by Chinese subsidiaries for non-performing debt recoveries.

Earnings per share for the half-year stood at S$0.011, down from S$0.0396 in the year-ago period.

No dividend was declared for the half-year, unchanged from the previous corresponding period.

Looking ahead, Yangzijiang Financial said its near-term priorities remain the recovery and resolution of its non-performing debt exposures and the disciplined redeployment of recovered capital.

The group is focusing on redeploying capital into China’s new economy sectors, including semiconductors, artificial intelligence, data storage technologies and new energy.

Under its one billion yuan (US$148.3 million) programme targeting high-yield opportunities, about 70 per cent had been deployed as at Jun 30.

In Singapore, the group is expanding its investment management activities and pursuing a Capital Markets Services licence to develop a fund management business.

The counter ended 4.3 per cent or S$0.01 lower at S$0.22 on Wednesday prior to the release of the results.