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Third Quarter Financial Statement and Dividend Announcement for the period ended 30 September 2019
The Group's income is primarily derived from the realisation and/or revaluation of its investments.
For the three months ended 30 September 2019, the Group reported profits and total comprehensive income attributable to shareholders of S$2.65 million mainly attributed to:
(i) Fair value gain on equity investments at FVTPL (after adjusting for dividends from subsidiary of S$2.05 million) of S$2.91 million.
(ii) Other operating income of S$0.76 million.
(iii) Interest income of S$0.21 million arising from the loan granted to a portfolio company.
The profits were offset partially by:
(iv) Operating expenses of S$1.19 million.
The Group's NAV as at 30 September 2019 was S$125.76 million (representing a NAV of S$0.52 per share), an increase of S$11.09 million from the NAV of S$114.67 million (S$0.47 per share) as at 31 December 2018.
The increase in the Group's NAV of S$11.09 million was largely due to fair value gains on equity investments at FVTPL (after adjusting for dividends from subsidiary) of S$14.12 million which was partially offset by dividend payment of S$2.42 million for FY2018.
Over the past year, global growth has been slowing, due to broad-based weakening across most major economies. Geopolitical tensions, such as the US-China trade war and the Gulf tensions, continue to afflict the economy, pinching investor confidence and business sentiments. The latest forecast from the International Monetary Fund in October puts global growth at 3.0 per cent for 2019, the lowest level since 2009 and a 0.3 percentage point downgrade from the outlook in April 2019. There has also been an increasing trend of monetary policy easing, with central banks turning dovish and reducing interest rates.
On the other hand, despite the softening global financial markets, the Southeast Asian region remains attractive to private capital and venture capital investors. Besides the rising volume of dry powder, the conducive business environment such as strong government backing for entrepreneurship, established infrastructures and large number of prominent start-ups are strong pull factors for these investors.
Going forward, TIH will capitalise on the volatility in the current markets to source for attractive opportunities in special situations, corporates deleveraging and non-core secondary assets. Together with its expertise in corporate finance and network of strategic relationships in the Southeast Asian and Greater China regions, TIH is well poised to tap on venture capital investments and long-term investment opportunities.
In line with TIH's strategy to optimise shareholder value and increase capital on equity, the Group's wholly-owned subsidiary TIH Investment Management Pte. Ltd. ("TIHIM"), which has a Capital Markets Services License from the Monetary Authority of Singapore, will continue to actively seek out non-dilutive financing to deploy or manage to increase its recurring income base.