China Development Financial Holding Company (hereinafter CDF; stock code: 2883 TT) held a regular shareholders’ meeting today and approved the resolution to distribute cash dividend of NT$0.6/share. CDF posted 2017 consolidated net income of NT$11.7bn, for EPS of NT$0.80. As such, the cash payout ratio is 75%. In 2017, consolidated assets were worth NT$2.39tn. FINI holdings were 26.93% (as of April 24, 2018), up 2.62% YoY.
CDF says in September 2017, it succeeded in acquiring a 25.3% stake in China Life, becoming China Life’s single largest shareholder. This marked the beginning of CDF’s involvement in the four businesses of life insurance, commercial banking, securities brokerage, and venture capital/private equity. KGI Bank, a subsidiary, has solid asset quality and sufficient capital for future operations. For 2017, KGI Bank posted net income of NT$3.182bn, capital adequacy ratio of 14.18%, and non-performing loan ratio of 0.21%. In 2017, KGI Securities posted net income of NT$8.078bn, a record high. Due to the recovery of global economic momentum and capital market turnover, the overall environment is conducive to better operations of securities business, which enables KGI Securities to maintain the lead in businesses including brokerage, investment banking, warrant transactions, and bond underwritings. Since official renaming on March 15, 2017, CDIB Capital has been focused on raising and managing equity investment funds and actively expanding its asset management business. In 2017, the scale of asset management continued to grow, benefiting from stable performance of the capital market and large-scale investment disposals at home and abroad, resulting in consolidated net income of NT$3.365bn.
In 2018, CDF has leveraged life insurance, commercial banking, securities brokerage, and venture capital/private equity businesses to speed up Asian deployment. In addition, CDF has strived to conduct capital redistribution, enlarge leverage multiples, enhance the efficiency of capital usage, and transform corporate culture. This has simultaneously pushed forward individual and institutional client operations to form a business model that produces stable income, integrates group resources, strengthens client management, as well as the cross-selling of products to create synergies, polish the asset management brand name, elevate the scale of funds under management, improve risk control, activate assets, and boost corporate governance and sustainable development.
CDF stresses that the environmental, social, and governance (ESG) concept has trickled down to the operations of various subsidiaries. KGI Bank’s Ling Huo Card, for example, has come up with EGS benefits that extend preferential fees and interest rates to borrowers that possess occupational certificates, draft proposals on crowd-funding websites, and are members of low-income households. KGI Securities conducted all three cases of green corporate bond underwriting last year, for total value of NT$14.1bn. The hope is that the capital market as a fund-raising platform will make it easier for enterprises dedicated to sustainable development of the environment to raise capital. CDIB Capital has conducted every investment in compliance with the UN’s (six) principles of responsible investment (US PRI), lived up to the required stewardship for institutional investors, and focused on ESG investment projects. Down the road, CDF will continue to create ESG returns, strengthen corporate governance, seek information release that is transparent, real-time, and fair, abide by a corporate culture that is honest, boost returns for shareholders, and achieve the goal of sustainable operations of CDF.
