China Development Financial (hereinafter CDF, TWSE: 2883) held its annual general shareholders’ meeting on June 12, approving a cash dividend of NT$0.6 per share. As a result of solid global financial markets and business growth, CDF consolidated net profit reached NT$19.654bn in 2019 (including NT$6.858bn from non-controlling equity), up 53% YoY from NT$12.815bn (including NT$4.962bn from non-controlling equity).
CDF says it will continue to integrate group resources, strengthen customer management and boost cross-selling synergies. Meanwhile, it incorporates corporate governance, sustainable development as well as ESG (environment, social and governance) into its investment analysis and decision-making processes. In the recent 6th (2019) Corporate Governance Evaluation carried out by the Taiwan Stock Exchange, CDF was ranked in the top 5% among all listed companies, which demonstrates the competent authorities’ approval of CDF’s years of efforts.
KGI Bank leveraged its three major businesses, corporate banking, consumer banking and global markets with digital platform access, applications and group resources to further grow customers and enhance business synergies in 2019. Through various channels, the Bank expanded businesses in investment risk-hedging, bills/ bond underwriting, financial products marketing and asset management, developing multiple derivatives products. The Bank believes that customized products are integral to excellent customer relations by meeting the needs of different groups of clients.
KGI Securities remains a market leader in brokerage, investment banking, warrant trading and bond underwriting. With the advent of digital trading and growing number of millennial customers, KGI Securities dedicates to innovating financial services, introducing smart robo-advisor services and optimizing online trading platforms and customer experiences. Investors then could receive timely suggestions to their investment portfolio. In terms of overseas business strategy, KGI Securities continues its pursuit to become a regional niche securities house through leveraging Hong Kong as a strategic hub that bridges the Greater China and ASEAN markets.
The venture capital/ private equity arm, CDIB Capital Group currently manages ten funds denominated in NT dollars, US dollars and Renminbi, with the majority of its portfolio companies in the US and Greater China. The funds totaled NT$39.8bn as of the end of 2019, of which NT$25.8bn has been drawn down for direct investment and proceeds of around NT$4bn have been received. CDIB Capital Group plans to raise new funds denominated in NT dollars and US dollars in 2020 to further expand its AUM (asset under management).
Looking forward to 2020, major research institutions are conservative about the outlook of global economy. Besides the uncertainties of the US-China phase-1 trade deal and the subsequent negotiations, the global economic activities have also been affected by the rapid spread of COVID-19 in China and other major economies since the beginning of this year.
Given these uncertainties, CDF Group has prioritized digitalization as a shared goal for its members. For instance, KGI Bank continues to integrate digital tracing of its customers to drive Open Banking momentum and optimize its services. Meanwhile, the Bank has swiftly responded to the COVID-19 relief policy outlined by Financial Supervisory Commission, rolling out corporate and personal financing services.
KGI Securities combines instant messaging with social media, introducing a LINE account, through which consumers could access to personalized one-stop wealth management services, such as online account opening and trading without the hassle to download extra apps.
China Life’s ““i-Agent”, a proprietary mobile system platform, integrates customers management, marketing/solicitation and customer services, making the platform a mobile office for sales agents. Customers could not only purchase insurance policies online but upload necessary documentation at their fingertips. China Life has been dedicated to streamlining its customer experience and deploying resources to prepare itself for future growth in the post-COVID-19 economy.
