Credit Bureau Asia Limited Responds to SIAS Queries, Shares Insights on Business Operations and Future Plans
In a recent announcement, Credit Bureau Asia Limited (the “Company”) 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 business operations, product offerings, and market entry strategies.
Key Points and Updates
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.
In response to SIAS queries, the Company 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, allows CBS to broaden its services, subject to approval by MAS.
License and Business Operations
The Company confirmed that the license issued to CBS is new and distinct from existing licenses held by the group. The license was issued under the Credit Bureau Act 2016, which requires entities to be licensed by MAS to carry on a consumer credit reporting business.
The Company stated that it regularly reviews its product and service offerings to ensure they cater to market requirements. Currently, it provides consumer credit reports with FI data, as well as various commercial credit reports with non-FI data to its diverse customer base.
Financials 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.
A balance of \$20.8 million remains unutilized from the IPO proceeds that raised \$27.0 million in the initial public offering five years ago. The board has reviewed and will continue to review all available options, including increasing the dividend payout or returning capital to shareholders through a special dividend, share buyback, or equal access offer.
Market Entry and Expansion Plans
The Company has discussions with FiinGroup and aims to make tangible progress towards establishing operations in Vietnam. The partnership with FiinGroup, formed four years ago, remains a strategic priority, but no concrete timeline has been provided for market entry.
Attendance of Directors at Board Meetings
The Company also addressed concerns regarding the attendance of directors at board meetings. The executive chairman, Mr. Kevin Koo, was absent from a board meeting due to an overseas business trip, while 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.
The absent directors did not participate remotely via tele- or videoconferencing in the meetings. The board has clarified that the absent directors did not participate via remote means.
Impact on Share Price and Investor Takeaways
Investors and shareholders should note that the Company’s responses to SIAS queries provide insights into its business operations, financials, and market entry strategies.
The clarification on the license and its impact on business operations could potentially influence investor sentiment and perceptions of the Company’s growth prospects. The disclosure of financials and capital allocation strategies may also interest shareholders looking for updates on the Company’s cash management and dividend policies.
The information provided by the Company on its license, business segments, and product offerings may be considered positive by investors, as it sheds light on the Company’s position in the market and its ability to operate effectively under new regulations.
Disclaimer
This article is based on publicly available information and is intended for general information purposes only. It should not be considered as investment advice or a recommendation to buy or sell any securities. The information contained in this article has not been examined or approved by the Singapore Exchange Securities Trading Limited (“SGX-ST”). The Company’s responses to SIAS queries and the information contained in this article may not be comprehensive or up-to-date. Readers are advised to exercise caution when interpreting this information and to do their own research before making any investment decisions.
By reading this article, you acknowledge that the information provided is for general information purposes only and may not be suitable for your specific needs or circumstances. We encourage you to seek professional advice or conduct your own research before making any investment decisions.
Share price movements can be influenced by various factors, including market sentiment, economic conditions, and company-specific developments. The information provided in this article may not be directly related to the Company’s current or future share price.
Any opinions or views expressed in this article are not intended to be a recommendation or solicitation to buy or sell any securities. We recommend that you consult with a financial advisor or conduct your own research before making any investment decisions.
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