Financial institution Hong Leong Finance Limited (SGX:S41) conducted its annual general meeting for the financial year 2020 ended 31 December 2020 earlier this morning (29 April 2021), which I’ve attended as a shareholder.

Due to the existing safe distancing measures in place, the meeting was held virtually. As such, there was no live Q&A section. Neither was there any questions submitted by fellow shareholders (according to Chairman Mr Kwek Leng Beng.) The meeting was a very short one (it lasted only 15 minutes from start to finish.)

In this post, you’ll find a summary of the presentation by President of the financial institution, Mr Ang Tang Chor, and also results of the resolutions put to vote during the meeting…

Summary of President Ang Tang Chor’s Presentation

  • Net attributable profit was down by 38.0% to S$63.9m (FY2019: S$103.1m) due to reduced customer activities, compressed earnings and conservative buildup of general loan loss allowances (of S$7.7m) on the impact of sustained low interest rates and economic disruption caused by the Covid-19 pandemic.
  • Hong Leong Finance’s balance sheet position, according to Mr Ang, continues to remain resilient, supported by strong capital and liquidity buffers. Also, its Capital Adequacy Ratio and Minimum Liquid Asset Ratio are well above regulatory requirements.
  • In terms of the composition of loans, Mr Ang shared that there are limited exposures to sectors that are significantly impacted by the pandemic (to elaborate, 47% of the loans are to the building and construction industries, 22% are to professional and private individuals, 20% are to hotels, associations, and charitable organisations, 6% are to investment and holding companies, 3% are to transport, storage, and communication industries, 1% are to general commerce industry, and 1% to manufacturing industry), and that the financial institution’s loan portfolios are largely collateralised.
  • Non-performing loans ratio remains stable at 1.0% (even though its up slightly compared to the previous financial year, which was 0.8%.)

Results of Resolution Put to Vote during the Meeting

  • Resolution #1, on the receipt of the Directors’ Statement and Audited Financial Statements, together with the Auditor’s report thereon was passed with 100.0% (or 250,082,718) of the votes for, and 0.00% (or 5,000) of the votes against.
  • Resolution #2, on the declaration of a final dividend, was passed with 100.0% (or 250,085,418) of the votes for, and 0.00% (or 5,000) of the votes against.
  • Resolution #3, on the approval of Directors’ fees, was passed with 99.48% (or 248,792,418) of the votes for, and 0.52% (or 1,298,000) of the votes against.
  • Resolution #4(a), on the re-election of Director, Mr Kwek Leng Beng, was passed with 99.37% (or 241,934,158) of the votes for, and 0.63% (or 1,537,653) of the votes against.
  • Resolution #4(b), on the re-election of Director, Mr Kwek Leng Peck, was passed with 99.44% (or 248,169,657) of the votes for, and 0.56% (or 1,403,402) of the votes against.
  • Resolution #4(c), on the re-election of Director, Mr Kwek Leng Kee, was passed with 99.48% (or 247,194,990) of the votes for, and 0.52% (or 1,300,349) of the votes against.
  • Resolution #4(d), on the election of Director, Mr Christian Gautier de Charnace, was passed with 99.98% (or 250,051,122) of the votes for, and 0.02% (or 39,296) of the votes against.
  • Resolution #5, on the re-appointment of KPMG LLP as Auditors, was passed with 99.98% (or 250,048,322) of the votes for, and 0.02% (or 42,096) of the votes against.
  • Resolution #6, on the authority for Directors to issue shares and/or make or grant offers, agreements or options pursuant to Section 161 of the Companies Act, Chapter 50 of Singapore and the Listing Manual of Singapore Exchange Securities Trading Limited, was passed with 99.47% (or 248,764,273) of the votes for, and 0.53% (or 1,326,145) of the votes against.
  • Resolution #7, on the authority for Directors to offer and grant options to eligible participants under the Hong Leong Finance Share Option Scheme 2001 (‘SOS’) other than Parent Group Employees and Parent Group Non-Executive Directors and to issue shares in accordance with the provisions of the SOS, was passed with 97.92% (or 235,701,714) of the votes for, and 2.08% (or 5,009,643) of the votes against.

Disclaimer: At the time of writing, I am a shareholder of Hong Leong Finance Limited.

 

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