Yangzijiang Financial has reported a loss of $5.2 million in FY2025 ended Dec 31, 2025, compared to a profit of $304.6 million in FY2024.
“The recognition of FY2025 allowances reflects prevailing market conditions and aligns our portfolio valuations on a more conservative basis,” says executive chairman Liu Hua.
The loss was mainly due to the $290.9 million the group recognised in expected credit loss (ECL) allowances, mainly attributable to ECL provisions on certain non-performing debt investments, particularly in the real estate segment. This year, credit loss allowances made for under-performing debt investments, also increased due to deterioration in credit risk profiles and reflecting prevailing market conditions.
According to the group, the provisions include both specific allowances on identified exposures and adjustments to reflect updated forward-looking macroeconomic assumptions.
In its release dated Feb 28, the group said the ECL allowances were mainly due to “changes in market conditions and recovery expectations within China’s property and credit markets”.
Excluding these allowances, profit from continuing operations fell by 19% y-o-y to $92.2 million.
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Total income, which comprises interest income from the group’s debt investment business in China and dividend income, fell by 19% y-o-y to $103.7 million.
Interest income fell by 29% y-o-y to $92.5 million mainly due to a lower average balance of debt investments in China.
Dividend income was up by 29% y-o-y to $4.1 million mainly due to higher distributions received from venture capital investments in China.
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Loss per share stood at 3.8 cents, down from earnings per share (EPS) of 3.51 cents last year.
No dividend was declared this year, compared to the 3.45 cents per share that was paid in FY2024.
Yangzijiang Maritime’s earnings down by 5% y-o-y at US$129.7 mil
Meanwhile, Yangzijiang Maritime Development reported earnings of US$129.7 million ($164.0 million) in FY2025 ended Dec 31, 2025, 5% lower y-o-y. The maritime financial solutions provider spun-off from Yangzijiang Financial and listed on the Singapore Exchange’s (SGX) Mainboard on Nov 18, 2025.
“Reflecting the strength and sustainability of our business model within the maritime industry, we are pleased to report a resilient set of results in our inaugural full-year announcement since our listing in November 2025,” says executive chairman and CEO Ren Yuanlin.
He attributes the group’s “resilient” results to its asset-light strategy, maritime expertise and partnerships, which helped it optimise construction costs without compromising on quality, safety, or technological standards.
Total income for the year fell by 4% y-o-y to US$142.4 million mainly due to lower interest income and lower net fair value gains. This was partly offset by higher income from its maritime fund assets and higher interest income from financial assets at fair value through profit or loss (FVTPL).
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Interest income fell by 58% y-o-y to US$20.8 million mainly due to lower interest earned on cash and cash equivalents and lower interest from debt investments at amortised cost.
Interest income from financial assets at FVTPL surged by 155% y-o-y to US$31.8 million, largely due to the full-year income contribution from investment projects deployed in FY2024.
Income from the company’s maritime fund assets increased by 60% y-o-y to US$69.3 million mainly due to higher charter income and higher interest income from finance leases.
Other net changes in fair value on financial assets and financial liabilities at (FVTPL) fell by 53% y-o-y to US$20.4 million.
With this, Yangzijiang Maritime has proposed a dividend of 0.5 cents per share. Approval will be sought at its next annual general meeting.
The company will also convene an extraordinary general meeting (EGM) on March 6 as it seeks shareholders’ approval for a share buyback mandate.
Outlook
Looking ahead, Yangzijiang Maritime says it will tap on the macro opportunities brought on by the structural shifts within the maritime industry, driven by tighter capital conditions in the Western capital markets and accelerating decarbonisation requirements by the International Maritime Organization (IMO), among others.
The company remains upbeat on its prospects as it sees the maritime industry as an “indispensable cornerstone of global economic development”.
“The shipping industry, which forms the core of maritime operations, is essential for global trade, transporting majority of the world’s goods by volume,” it adds.
Meanwhile, Yangzijiang Financial says it will focus on portfolio optimisation with “clear priorities”. It will continue to drive cash recovery and resolve non-performing exposures, unlock value from existing assets and cultivate new growth opportunities by redeploying capital.
“With a strengthened balance sheet and zero external borrowings, we are focused on disciplined capital redeployment and building a more resilient and diversified earnings base over time,” Liu adds.
As part of this strategy, Yangzijiang Financial aims to rebalance its portfolio towards a long-term allocation framework. This will comprise 40% income-generating debt investments, 40% equity investments, which includes private equity and listed equities, and 20% cash and cash equivalents to preserve liquidity and flexibility.
Under the 40% equity allocation, the group plans to deploy about 20% of its assets under management (AUM) into private equity, particularly fundamentally strong businesses with restructuring or value-enhancement potential. The remaining portion will go towards selected listed public equities in China and Southeast Asia.
In 1HFY2026, Yangzijiang Financial intends to progressively deploy up to RMB1 billion ($184.3 million) into selected listed equities with yields above 4.5% and value-accretive investment opportunities.
The group also aims to achieve a 50:50 allocation between China and Asia Pacific over the next three years.
As at Dec 31, 2025, Yangzijiang Financial has a total AUM of $1.71 billion.
Shares in Yangzijiang Financial closed 1.5 cents higher or 5.09% up at 31 cents on Feb 27, while shares in Yangzijiang Maritime closed 4.5 cents higher or 7.76% up at 62.5 cents.
