Credit Bureau Asia Limited Responds to SIAS Queries: Key Updates and Insights
Credit Bureau Asia Limited (the “Company”) has responded to queries from the Securities Investors Association Singapore (“SIAS”) regarding its annual report for the financial year ended 31 December 2024. The responses provide clarity on several key matters, including licensing, business operations, innovation pipeline, macroeconomic volatility, and board attendance.
Licensing and Business Operations
The Company’s 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 with effect from 1 April 2025. This license is new and distinct from existing licenses held by the group, and it potentially enables CBS to broaden its services or offerings [[Page 1]].
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. The license is required under the Credit Bureau Act 2016 to continue the group’s existing business operations.
Innovation Pipeline and Product Offerings
The Company develops new products and services based on market demand and needs. It currently provides consumer credit reports with FI data and various commercial credit reports with non-FI data to its diverse customers [[Page 2]].
Macroeconomic Volatility and Business Resilience
The Company has a defensive business model, which is resilient to external factors. However, it cannot guarantee that its business will be completely immune to future external factors. The group revenues and net profits grew during the 2018 financial crisis and the 2020 Covid-19 pandemic [[Page 2]].
Vietnam Market Entry and Partnership
The Company has been discussing with FiinGroup JSC to form a joint venture in Vietnam. While there have been discussions, there are no concrete and substantial developments to announce yet [[Page 2]].
Cash and Capital Allocation
As at 31 December 2024, 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 [[Page 2]].
Board Attendance and Fiduciary Duties
The Company’s executive chairman, Mr Kevin Koo, was absent from a board meeting due to an overseas business trip. 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 meant to chair, and the remuneration committee meeting due to a medical procedure [[Page 2-3]].
The Board is satisfied that the directors have discharged their fiduciary duties and board committee responsibilities effectively [[Page 3]].
Conclusion and Shareholder Implications
The responses from Credit Bureau Asia Limited provide insights into its business operations, innovation pipeline, and board attendance. While there are no major red flags, the Company’s licensing, business resilience, and cash allocation may be of interest to shareholders.
Disclaimer: This article is based on the Company’s announcement and has not been examined or approved by the Singapore Exchange Securities Trading Limited (“SGX-ST”). The SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made or reports contained in this announcement.
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Credit Bureau Asia Limited Addresses SIAS Queries: Licensing, Innovation, and Board Attendance
Share Price Sensitive Information: The licensing of Credit Bureau (Singapore) Pte Ltd and the Company’s cash and capital allocation may be of interest to shareholders and potentially impact the share price.
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