Yangzijiang Financial Holding Ltd. (YZJFH) today reported a net profit of S$38.3 million for the six months ended Jun 30, 2026, down 72% year-on-year (YoY) from S$137.7 million. The decline was driven mainly by a smaller debt-investment portfolio following last year’s spin-off of the maritime business and lower interest income from China.
Earnings per share slipped to 1.10 Singapore cents from 3.96 cents a year earlier, when results included contributions from the divested maritime unit. No interim dividend was declared; the company last paid a final tax-exempt dividend of 3.45 cents a share for FY2024 in May 2025.
Total income from continuing operations fell 31% YoY to S$35.5 million, with interest income contracting 40% to S$31.2 million as average debt-investment balances in China shrank. China remained the main market, contributing S$32.1 million, or 90% of group income, while Singapore generated S$3.4 million after new investments were made from the city-state. Profit before tax from continuing operations slipped 33% to S$50.4 million.
The earnings slide was cushioned by a S$16.6 million reversal of expected credit losses on debt investments, compared with a S$13.0 million write-back a year earlier, as several non-performing assets were recovered or fully repaid. Operating expenses were mixed: employee costs almost doubled to S$2.8 million after performance incentives at mainland subsidiaries, while other expenses eased 10% to S$4.1 million on lower business tax.
Cash and cash equivalents stood at S$575.4 million at end-June, down from S$618.6 million at end-2025 after net operating and investing outflows were partly offset by S$33.1 million in foreign-exchange gains. Financial assets at fair value through profit or loss rose to S$271.3 million following S$159.1 million of new acquisitions, including a January convertible-bond investment initially booked as a prepayment. Debt investments at amortised cost narrowed 5% to S$802.9 million as redemptions exceeded deployments.
Management said its immediate focus is to accelerate recoveries from legacy non-performing debt and redeploy capital into higher-yielding opportunities. During 1H2026 the group reinvested S$186.8 million into new debt instruments while collecting S$276.4 million from maturities and repayments. YZJFH intends to channel funds towards China’s high-tech and new-economy sectors—such as semiconductors, artificial intelligence and new energy—and to expand private-credit activities across fast-growing ASEAN markets.
The Singapore-headquartered firm is also developing an investment-management platform and seeking a Capital Markets Services licence to launch fund-management operations. Over the next three years it aims to rebalance its portfolio towards a long-term mix of about 40% income-generating debt, 40% equity investments and 20% cash, subject to market conditions.