Credit Bureau Asia Limited Responds to SIAS Queries, Shares Insights on Business Operations and Future Plans
Credit Bureau Asia Limited (the “Company”) recently addressed queries from the Securities Investors Association Singapore (“SIAS”) regarding its annual report for the financial year ended 31 December 2024. The responses provided insights into the company’s operations, financials, and future plans, which could potentially impact its share price.
Key Points and Updates
New License for Consumer Credit Reporting Business
The Company announced that its subsidiary, Credit Bureau (Singapore) Pte Ltd (“CBS”), has been licensed 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. According to the Company, this license is new and distinct from existing ones, potentially allowing it to expand its offerings.
[[Page 1]] The Board of Directors of Credit Bureau Asia Limited responded to queries from SIAS regarding its annual report and provided updates on its business operations. The Company clarified that the license issued to CBS is a new one, required under the Credit Bureau Act 2016, and allows it to carry on a consumer credit reporting business.
Business Segments and Revenue Streams
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.
[[Page 1]] The Company’s two main business segments are the FI data business and the non-FI data business, serving both consumer and commercial credit risk segments.
Impact of Global Economic Slowdown
The Company’s management noted that its defensive business model is resilient to external factors. However, it cannot guarantee that its business will be completely immune to future economic downturns.
[[Page 2]] The group has a defensive business model which is resilient to external factors. The group revenues and net profits grew during the 2018 financial crisis and the 2020 Covid-19.
Upcoming Products and Services
The Company regularly reviews its product and service offerings to ensure they cater to market requirements. It currently provides consumer credit reports with FI data as well as various commercial credit reports with non-FI data to its diverse customers.
[[Page 2]] New products and services are developed based on market demand and market needs.
Vietnam Market Entry and Partnership Update
The Company has been discussing a potential joint venture with FiinGroup JSC since four years ago. It has made tangible progress towards establishing operations in Vietnam, but concrete developments are subject to further announcements.
The partnership with FiinGroup remains a strategic priority for the Company.
Cash and Capital Allocation
As of 31 December 2024, the group held $67.0 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.
The board has reviewed and will continue to review all available options, and nothing has been taken off the table.
Attendance of Directors at Board Meetings
There were instances where directors missed board meetings. The Company explained that Mr. Kevin Koo, the Executive Chairman and CEO, had to attend an overseas business trip and hence was absent from a board meeting that he chairs.
Another director, Mr. Low Seow Juan, missed one out of two board meetings and audit committee meetings, as well as the nominating committee meeting which he was supposed to chair.
The Company confirmed that these absent directors did not participate in meetings remotely.
Financials and Dividend Payout
The group held $67.0 million as cash and bank balances, an increase of about $9.7 million from $57.3 million a year ago. Approximately $30 million have been put in short term deposits with a weighted average interest rate of 2.91% per annum.
A balance of $20.8 million remains unutilised from the IPO proceeds that raised $27.0 million in the initial public offering 5 years ago.
The board will make decisions in the best interests of all shareholders.
Conclusion
The Company provided updates on its business operations, product offerings, and market expansion plans.
While the Company’s responses addressed several concerns raised by SIAS, it did not provide detailed insights that could potentially move its share price.
Disclaimer: This article is based on the responses provided by Credit Bureau Asia Limited to SIAS queries. The information provided is for general purposes only and should not be considered investment advice. For more information, please consult the Company’s official announcements and financial reports.
“This article is for general information purposes only and does not provide investment advice or recommendations. Readers are advised to consult with a financial advisor or conduct their own research before making any investment decisions.”
