Credit Bureau Asia Limited Responds to SIAS Queries: Key Updates and Insights
Credit Bureau Asia Limited (the “Company”) has addressed queries from the Securities Investors Association Singapore (“SIAS”) regarding its annual report for the financial year ended 31 December 2024. The responses provided by the Company shed light on its licensing, business operations, innovation pipeline, and market entry strategies.
Licensing and Business Operations
The Company has clarified that its subsidiary, Credit Bureau (Singapore) Pte Ltd (“CBS”), has been issued a license by the Monetary Authority of Singapore (MAS) to carry on a consumer credit reporting business. This license, effective from 1 April 2025, enables CBS to broaden its services, subject to MAS approval. The Company operates two main business segments: the financial institutions (“FI”) data business and the non-FI data business, serving both consumer and commercial credit risk segments.
Key Points:
- The license issued to CBS is new and distinct from existing licenses held by the group.
- The Company operates two main business segments: FI data business and non-FI data business.
- The group regularly reviews its product and service offerings to ensure they cater to market requirements.
Impact of Global Economic Slowdown
The Company’s management addressed concerns about the potential impact of a global economic slowdown on its FI and non-FI businesses. According to the Company, its defensive business model is resilient to external factors, and it has grown during previous economic downturns, such as the 2018 financial crisis and the 2020 COVID-19 pandemic.
Key Points:
- The group has a defensive business model which is resilient to external factors.
- The Company’s revenues and net profits grew during the 2018 financial crisis and the 2020 Covid-19 pandemic.
Innovation Pipeline and Credit Reporting Services
The Company develops new products and services based on market demand and needs. It provides consumer credit reports with FI data and various commercial credit reports with non-FI data to its diverse customer base.
Key Points:
- The group currently provides consumer credit reports with FI data and various commercial credit reports with non-FI data.
- Examples of credit reports offered by the group include those with FI data and non-FI data.
Vietnam Market Entry and Progress Update
The Company has made progress in establishing operations in Vietnam, having signed a Memorandum of Understanding (MoU) with FiinGroup JSC four years ago. However, it did not provide updates on tangible progress but mentioned that discussions with FiinGroup are ongoing.
Key Points:
- The partnership with FiinGroup remains a strategic priority.
- The group will make announcements when there are concrete and substantial developments in Vietnam.
Attendance of Directors at Board and Committee Meetings
The Company provided explanations for the absences of its directors from board and committee meetings. Mr. Kevin Koo, the Executive Chairman and CEO, had to attend an overseas business trip and thus missed a board meeting. Mr. Low Seow Juan, who was absent from one out of two board meetings and one out of two audit committee meetings, as well as the nominating committee meeting, had undergone a medical procedure.
Key Points:
- The board and management will continue to review all available options to improve shareholder value.
- The Company has \$67 million in cash and bank balances, with \$20.8 million remaining unutilized from its IPO proceeds.
Cash and Capital Allocation
The Company has $67 million in cash and bank balances, an increase of about $9.7 million from $57.3 million a year ago. Approximately $30 million has been placed in short-term deposits with a weighted average interest rate of 2.91% per annum.
Key Points:
- The board has reviewed and will continue to review all available options to improve shareholder value.
Conclusion
The Company’s responses to SIAS queries provide insights into its operations, strategic priorities, and financial position. While there are no major red flags, investors may take note of the following:
Key Points:
- The Company has been licensed by MAS for consumer credit reporting, potentially enabling it to broaden its services.
- The group has a defensive business model that has been resilient to external factors.
- The Company continues to explore opportunities in Vietnam through its joint venture with FiinGroup JSC.
Disclaimer
This article is based on the responses provided by Credit Bureau Asia Limited to SIAS queries and is for informational purposes only. It does not constitute investment advice or an offer to buy or sell any securities. Readers are advised to do their own research and consult with financial advisors before making any investment decisions. The information provided may not be up-to-date, and readers should verify with the Company or other reliable sources for the most current data.
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