2024-03-19 11:14:40
Shin Kong Financial Holdings held a legal meeting on the 19th, hosted by Chen Enguang, general manager of Shin Kong Financial Holdings. (Photography/Ye Jiahua)
Shin Kong Gold held a corporate briefing for the fourth quarter today (19th), hosted by General Manager Chen Enguang. Since Shin Kong Gold suffered losses last year and its capital adequacy ratio (RBC) was less than 200% of the legal standard, on-site legal persons and the media were very concerned about the timetable for the next cash capital increase, this year’s profit outlook, and when it would be able to convert Issues such as turning losses into profits and whether there will be dividends paid this year.
Last year, New Life suffered a huge loss of more than 17 billion, and legal persons were concerned about the schedule of capital increase and capital tools.
Advertisement (Please continue reading this article)
In 2023, Shin Kong Gold’s full-year consolidated after-tax loss was 7.32 billion yuan, and the after-tax loss per share was 0.48 yuan, which was the only loss among financial holdings. Among the subsidiaries, Shin Kong Life was mainly affected by last year’s market fluctuations, and its stock and debt capital gains were higher than the previous year. It decreased year-on-year, and recognized foreign exchange hedging costs of 34.18 billion yuan, resulting in a full-year consolidated after-tax loss of 17.11 billion yuan.
Shin Kong Bank’s consolidated after-tax net profit reached 6.79 billion yuan due to an increase in fee income and investment income. Among them, bank loan balance increased by 7% year-on-year to 807.13 billion yuan. The main lending momentum came from consumer finance lending and small and medium-sized enterprise lending; Yuanfuzheng’s consolidated net profit after tax was 2.5 billion yuan.
As Huang Tianmu, chairman of the Financial Supervisory Commission, pointed out to the Legislative Yuan Finance Committee yesterday (18th) that it is the Financial Supervisory Commission’s goal for Xin Life to reach 200% RBC by the end of June this year. Even if Xin Life increases its capital by another 125 yuan, it is still not enough, and it will continue to require “Unless the standards are met, other measures will not be discussed.”
Advertisement (Please continue reading this article)
(More News/Sing Kong Gold Plans to Increase Cash by 12.5 Billion Yuan” At the end of June, it still failed to meet the standard. Huang Tianmu, chairman of the Financial Supervisory Committee, said harsh words…)
The board of directors will be held on the 29th. Chen Enguang: Turning over the subsidiary’s surplus to increase capital and increase capital will not be a “fixed practice.”
Chen Enguang, general manager of Shin Kong Financial, pointed out that the competent authorities expect Shin Kong Life’s RBC to reach 200% by the end of June this year. Therefore, Shin Kong Financial will formally hold a board meeting on March 29 to discuss the entire capital increase plan and improve the tools and schedule of Shin Kong Life’s RBC. , conditions, etc. will be discussed in detail, he pointed out: “We will work hard towards this goal, and the direction of increasing capital is clear.”
Shin Kong Financial spokesperson Lin Yijing added that after Financial Holdings completed the 13 billion sub-prime bond raising in October last year, it exceeded RBC by 200% in October. However, due to the sharp fluctuations in the exchange rate in the fourth quarter of last year, especially the New Taiwan dollar, the The sharp appreciation has put great pressure on the entire life insurance industry, and also caused New Life to fail to reach the legal standard of 200% at the end of last year.
At present, Xinguang Gold has handed over the surplus of the subsidiary to the parent financial holding, increased the capital of Xin Life by 7 billion yuan, and Xin Life will issue 8 billion yuan of subordinated bonds. If combined with the 12.5 billion yuan cash capital increase recently reported by the media, Shin Kong Gold has invested 27.5 billion yuan.
The media is also concerned. In February this year, Shin Kong Gold’s board of directors approved that the surplus of its subsidiaries such as banks and securities companies would be handed over to Financial Holding, which would then inject 7 billion yuan into its life insurance subsidiary. Will Shin Kong Gold continue to use this method of capital injection in the future?
In this regard, Chen Enguang said that this approach has actually been done by many financial holdings in the past. After all, financial holdings originally balance the resource utilization of various financial holding subsidiaries, but this will not be a fixed practice, but must take into account the needs of each subsidiary. Capital needs and future business development.
“Currently there is no cash dividend planning plan,” and it was announced in advance that the dividend this year may be zero.
It is understood that Shin Kong Gold’s external financial advisory report also includes recommendations for the disposal of real estate. Chen Enguang said that the financial consulting company has put forward many and comprehensive opinions. Indeed, they have mentioned the disposal of real estate. Since Shin Kong Gold has quite a lot of real estate that can be activated, some self-use real estate can increase its yield, and even some investment real estate. , it can also be used as a disposal to achieve value-added benefits when there is a real emergency need. “However, at this stage, the capital increase will be completed first, which is the current primary goal.”
As for the cash dividend policy that shareholders are most concerned about, Lin Yijing pointed out that last year’s loss at New Life led to a loss in after-tax earnings of Financial Holdings. Therefore, the most important thing now is to strengthen capital. “There is no cash dividend planning plan at the moment.” It is equivalent to an advance notice that Shin Kong Gold’s cash dividend may be zero this year.
In addition, Shin Kong Gold also disclosed the latest changes in unrealized losses and special surplus reserves under other equity items at the press conference. Lin Yijing pointed out that losses under other equity items have reached a level that can be offset by the special surplus reserve due to a reduction of 9 billion in losses in the first two months of this year.
As of the end of last year, Shin Kong Gold’s accumulated special surplus reserve was 46.3 billion yuan. At the end of last year, losses under other equity items had rebounded by 38.3 billion yuan, so unrealized losses had shrunk to less than 20 billion yuan. This year, there has been another The loss has been reduced by 9 billion and has reached the level where the special surplus reserve can be offset.
Further reading
1710924023
#Chen #Enguang #Chief #Executive #Shin #Kong #Golden #Dharma #Conference #Sun #Lifes #capital #increase #subsidiarys #surplus #fixed #practice #cash #dividend #plan #Xin #Media #LINE #TODAY