Yangzijiang Financial Holding Ltd. Responds to SGX Queries: Detailed Financial and Remuneration Disclosures for FY2025

Yangzijiang Financial Holding Ltd. (“Yangzijiang Financial” or the “Company”) has published its official responses to queries raised by Singapore Exchange Regulation (SGX RegCo) regarding its Annual Report for the financial year ended 31 December 2025. The clarifications address critical aspects of executive remuneration disclosure and significant variances in cash flow statements, following the Company’s group restructuring and spin-off activities.

Key Points from the Report

• Remuneration Disclosures:
  • The Company clarified that Mr. Malcolm Ong, named as key management, was only appointed and employed with effect from 28 January 2026. Thus, he received no remuneration in FY2025. His inclusion in the FY2025 report was for transparency and compliance, and any remuneration estimate disclosed pertains to FY2026 and not FY2025.
  • For FY2025, the total aggregate remuneration for the Company’s top key management personnel (excluding the Executive Chairman and CEO) was approximately S\$865,438. This amount was distributed among four individuals only due to the Group’s restructuring: Ms. Liu Hua, Mr. Peng Xingkui, Mr. Qian Jiang, and Mr. Gao Zeng Feng.
  • Ms. Liu Hua served as Deputy CEO and CFO until 31 October 2025, and then became Executive Chairman. Her total remuneration for FY2025, including incentives, fell within the S\$500,001 to S\$700,000 band.
  • Mr. Peng Xingkui served on the Investment Committee until 31 October 2025 and was appointed CEO thereafter. Of his total annual remuneration of S\$177,947, only S\$29,658 pertained to his CEO role in FY2025.
  • The Company had fewer than five key management personnel (excluding Executive Chairman and CEO) during FY2025 due to the spin-off of its Maritime Fund and Maritime Investments business—a significant structural change that may impact future management and operations.
• Material Adjustments in Cash Flows:
  • There was a substantial reclassification in cash flow reporting after audit finalisation, especially relating to the treatment of money market funds (MMF) connected to the spin-off group.
  • Net cash used in investing activities was restated from S\$3.5 million to S\$194 million (a S\$190 million change). This arose mainly because MMF holdings, previously recognised as cash and cash equivalents, were reclassified as financial assets at fair value through profit or loss.
  • Net cash used in financing activities improved from S\$623.5 million to S\$428.3 million (a S\$195 million variance), also due to the reclassification of MMFs upon the spin-off.
  • The Company explained that the difference of approximately S\$4.8 million between these reclassified amounts is due to foreign exchange translation differences in USD-denominated MMF balances between acquisition and spin-off dates.
  • The Company confirmed compliance with SGX Listing Rule 704(6), emphasizing these were reclassifications with no impact on the Group’s profit or loss.

Implications for Shareholders and Potential Price-Sensitive Information

• Management Changes and Remuneration: The Company’s leadership experienced significant transition during FY2025, with Ms. Liu Hua and Mr. Peng Xingkui moving into the roles of Executive Chairman and CEO, respectively. These changes, along with detailed remuneration disclosures, provide transparency on the cost and continuity of key management.
• Group Restructuring: The spin-off of the Maritime Fund and Maritime Investments business not only reduced the number of key personnel but also led to substantial changes in cash management and reporting. This restructuring is a material event, potentially affecting future revenue streams, risk profile, and group focus.
• Restatements and Cash Flow Adjustments: The large reclassification of MMFs from cash equivalents to financial assets at fair value through profit or loss significantly altered the cash flow profile presented to investors. While the Company states there is no impact on profit or loss, the restatement may influence investor perceptions of liquidity and operational cash flows.
• Transparency and Governance: The Company’s voluntary disclosures and detailed explanations demonstrate a commitment to governance best practices, potentially enhancing investor confidence.

Conclusion

Yangzijiang Financial’s responses provide critical clarity on executive remuneration, structural changes following the business spin-off, and the basis for material changes in cash flow statements. Shareholders should note the impact of the group restructuring and cash flow restatements, as these may affect future operating metrics and management continuity. The Company’s transparency and adherence to governance codes may support investor trust, but the magnitude of changes—particularly in cash flow reporting—warrants close attention in subsequent financial periods.

Disclaimer: This article is based on official disclosures and responses from Yangzijiang Financial Holding Ltd. Investors should not rely solely on this summary for investment decisions and are advised to review the full financial statements and consult professional advisors as appropriate. No liability is accepted for actions taken based on this article.

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