China Development Financial Holding Corporation (CDF) reported today its profit for the previous month. Spokesperson Richard Chang stated that the capital market has moved upwards in August and public companies have entered the peak season for issuing dividends. As a result, subsidiaries have continued a steady and positive business performance. CDF reported its unaudited after-tax profit for August at NT$3.59 billion, accumulated after-tax profit from January to August at NT$23.36 billion, and an EPS of NT$1.56.
Subsidiary KGI Bank's profits are mainly generated from interest and fee income, as well as contributions from cash dividends. Its after-tax profit was NT$0.61 billion for the month and accumulated after-tax profit from January to August was NT$3.338 billion. With regards to its Securities business, and despite a 30% decrease in transaction volume from the Taiwan Stock Exchange in August, the profit remains stable and almost the same as last month. KGI Securities reported its August after-tax profit at NT$1.15 billion and accumulated after-tax profit from January to August at NT$9.47 billion. Subsidiary CDIB Capital Group reported its August after-tax profit at NT$0.37 billion, which mainly reflects on the positive performance of its investment positions. Its accumulated after-tax profit from January to August was NT$3.05 billion. China Life reported its August after-tax profit at NT$4.01 billion and accumulated after-tax profit from January to August at NT$24.03 billion.
On August 12, CDF announced the approval of a share exchange plan to issue ordinary shares, preferred shares, and cash in order to acquire all outstanding shares of China Life from all shareholders. CDF and China Life will both convene an extraordinary shareholders meeting on October 1 to discuss the share exchange plan, which is expected to be completed after it’s approved by the shareholders' meetings, and the competent authority. At this time China Life will become a wholly-owned subsidiary of CDF. Steve Bertamini, CEO China Development Financial, stated that the share swap will accelerate the development of banking, securities, private equity, asset management, and insurance businesses at CDF as well as enhance the group's competitiveness, create synergies, and allow CDF to realize its vision of becoming a leading financial company in Asia.
