This morning, finance company Hong Leong Finance (SGX:S41) held its annual general meeting (AGM) for the financial year ended 31 December 2021 (FY2021), where I’ve attended as a shareholder.
The meeting was held virtually (due to precautionary measures as a result of Covid-19), and it was an extremely short one (15 minutes in length from start to finish), with no live Q&A session (and according to Chairman Mr Kwek Leng Beng, there were no questions submitted by shareholders as well, apart from SIAS, to which they have already responded to, and you can read about it here), nor live voting of resolutions.
For the benefit of those who would like to know about the company’s updates but are unable to attend the meeting, in this post, you’ll find a summary of the Company President Mr Ang Tang Chor’s presentation (who shared about the company’s performance highlights for the year), along with results of all the resolutions put to vote during the meeting:
FY2021 Performance Highlights Presentation by Mr Ang Tang Chor
- Net profit for FY2021 rebounded strongly to $84.8m (FY2020: $63.9m) on the back of the pandemic, largely contributed by an increase in net interest margin, along with successful management of funding cost.
- Its total equity as at 31 December 2021, at $2.bn, was a record for the finance company. Mr Ang also added that the company’s balance sheet remains resilient supported by strong capital and liquidity buffers.
- Customer loans declined by 2.3% to $10.3bn (FY2020: $11.0bn) on lower net loan, with customer deposits also managed down by 3.5% to $10.8bn (FY2020: $11.2bn) to optimise loan funding.
- The key pillars of loans continue to remain strong, with limited exposures significantly impacted by the pandemic – by product, 74% comprised of mortgage (commercial/residential), and 13% comprised of HP Vehicles; by sector, 50% was to building and construction, 21% to professional and private individuals, and 18% to hotels, associations, and charitable organisations. On top of that, its loan portfolios are largely collateralised.
- NPL ratio, as at 31 December 2021, was at 1.6%, of which secured NPL stands at 95.1%.
- Total dividend for FY2021 was at 12.0 cents (with payout ratio at 63.3%.)
Results of Resolution Put to Vote during the AGM
- Resolution 1, on the receipt of Director’s Statement and Audited Financial Statements together with the Auditor’s Report thereon, was passed with 99.99% of the votes for, and 0.01% of the votes against.
- Resolution 2, on the declaration of a final dividend, was passed with 99.99% of the votes for, and 0.01% of the votes against.
- Resolution 3, on the approval of Directors’ fees, was passed with 99.99% of the votes for, and 0.01% of the votes against.
- Resolution 4(a), on the re-election of Mr Kevin Hangchi, was passed with 99.43% of the votes for, and 0.57% of the votes against.
- Resolution 4(b), on the re-election of Mr Peter Chay Fook Yuen, was passed with 99.39% of the votes for, and 0.61% of the votes against.
- Resolution 4(c), on the re-election of Mr Tan Tee How, was passed with 99.98% of the votes for, and 0.02% of the votes against.
- Resolution 4(d), on the re-election of Mr Clarence Yeo Gek Leong, was passed with 99.98% of the votes for, and 0.02% of the votes against.
- Resolution 5, on the re-appointment of KPMG LLP as Auditors, was passed with 99.43% of the votes for, and 0.57% 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 1967 and the Listing Manual of Singapore Exchange Securities Trading Limited, was passed with with 99.99% of the votes for, and 0.01% 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 (the “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 98.37% of the votes for, and 1.63% of the votes against.
- Resolution 8, on the adoption of the new Constitution, was passed with 99.43% of the votes for, and 0.57% of the votes against.
Disclaimer: At the time of writing, I am a shareholder of Hong Leong Finance Limited.
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