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Five Advisors With Focus Partner Firm Escala Partners Named to Australia’s Top 100 Financial Advisers 2020 List

Focus Financial Partners Inc. (NASDAQ: FOCS) (“Focus”), a leading partnership of fiduciary wealth management firms, announced today that five advisors with Melbourne-based Escala Partners Limited (“Escala”), a Focus partner firm, were named to Australia’s Top 100 Financial Advisers List 2020. The list is based on an extensive, national survey conducted by Barron’s and The Australian’s business magazine The Deal, and is a guide to the country’s leading wealth management advisors.

Escala was established with the collective ambition to become the new standard of personalized wealth management in Australia. The firm quickly emerged as a leading fiduciary wealth advisor to individuals, families, foundations and institutional investors across Australia, providing them with customized investment solutions through a collaborative, team-based approach. Escala’s client relationships are sustained over time through their dedication to highly personalized service and an ongoing commitment to innovation in defining the standards for excellence in the Australian wealth management industry.

Mason Allamby, Scott Carmichael, Steve Collins, Amanda Fong and Ben James are Partners and members of the original group of Escala founders who started the firm in 2013. They each have deep expertise in multiple areas of wealth management, including financial planning, asset allocation, tax strategy and, in Ms. Fong’s case, the not-for-profit space.

“We are honored to have such an impressive group of our advisors named to the Top 100 Financial Advisors list,” said Pep Perry, CEO of Escala. “They embody the collaborative approach and dedication to client service that are the foundation of Escala and make our firm uniquely successful.”

“We are thrilled for Escala on receiving this important recognition,” said Rajini Kodialam, Co-Founder and Chief Operating Officer of Focus. “Their team of talented advisors are leaders in their field and have been at the forefront of the evolution of the Australian wealth management industry. Their passion for excellence is at the core of everything that they do for their clients and positions them for strong growth in the years ahead.”

About Focus Financial Partners Inc.

Focus Financial Partners Inc. is a leading partnership of fiduciary wealth management firms. Focus provides access to best practices, resources, and continuity planning for its partner firms who serve individuals, families, employers and institutions with comprehensive wealth management services. Focus partner firms maintain their operational autonomy, while they benefit from the synergies, scale, economics and best practices offered by Focus to achieve their business objectives. For more information about Focus, please visit www.focusfinancialpartners.com.

About Escala Partners Limited

Founded in 2013, Escala provides objective advice and investment management solutions to high net worth individuals, families, foundations and institutional investors. Escala serves its clients through a collaborative, team-based approach focused on the client experience, a relationship built on trust and sustained over time by performance in line with evolving investment objectives. For more information about Escala, please visit https://escalapartners.com.au.

About The Australia’s Top 100 Financial Advisers List 2020 Rankings

Barron’s and The Australian’s business magazine The Deal rank investment advisers based on client assets managed by the adviser, fees and revenue generated by their business, and the quality of the adviser’s business (as measured by factors including the adviser’s experience, credentials, client-service resources, and charitable and philanthropic work).

Cautionary Note Concerning Forward-Looking Statements

This release contains certain forward-looking statements that reflect Focus’ current views with respect to certain current and future events. These forward-looking statements are and will be, subject to many risks, uncertainties and factors relating to Focus’ operations and business environment, including, without limitation, uncertainty surrounding the current COVID-19 pandemic, which may cause future events to be materially different from these forward-looking statements or anything implied therein. Any forward-looking statements in this release are based upon information available to Focus on the date of this release. Focus does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could affect Focus may be found in Focus’ filings with the Securities and Exchange Commission.

Any services described in this release are not intended for United States persons.

Investor and Media Contact
Tina Madon
Senior Vice President
Head of Investor Relations & Corporate Communications
Focus Financial Partners
P: +1-646-813-2909
tmadon@focuspartners.com

VPower Group’s Joint Venture Starts Powering Myanmar with LNG

Opening Up New Fuel Source for the Country

VPower Group International Holdings Limited (“VPower Group” or the “Group”, stock code: 1608.HK) has successfully expanded its footprint into the liquified natural gas (LNG)- to-power industry through a partnership with China National Technical Import and Export Corporation (“CNTIC”). On 14 June 2020, the power station in Thaketa Township of Yangon, Myanmar built by the 50-50 joint venture of VPower Group and CNTIC (“CNTIC VPower”) started generating electricity with LNG. This is the first time LNG being used as the fuel source in power generation in Myanmar.

The power station in Thaketa Township of Yangon has started generating electricity for the people of Myanmar.

The power station, with an installed capacity of 477.1 MW, was built on a fast-track basis for one of the Myanmar Government’s shortlisted critical projects to boost power supply for summer 2020. The project was awarded to the consortium of VPower Group and CNTIC in late 2019 through a public tender. In addition to the efficient and flexible engine-based power generation technology, CNTIC VPower offers a one-stop LNG solution integrating LNG import, logistics, storage and regassification to the country. The LNG infrastructure is located in Thanlyin of Yangon.

After the power purchase agreement was signed by a project company of CNTIC VPower, the power station has commenced operation in phases starting from 14 June 2020. Electricity generated by this power station will be transmitted to support the nationwide electricity demand, in particular that in Yangon Region, via the national grid.

“This is a milestone for the people of Myanmar and we are proud to be a pioneer of the monumental achievement. This has been a project impossible to many, and executed under the most extraordinary circumstances. We thank all of our suppliers, engineers, consultants, project and commercial teams and numerous government authorities who have given us their unwavering support, dedication and faith that have contributed to our success.” said Mr. Earnest Cheung, Chief Executive Officer of CNTIC VPower, “Access to LNG will help the country meet its growing electricity demand and broaden its energy mix whilst allowing a more environmental friendly and sustainable generation for the future.”

On top of this project, CNTIC VPower is going to deliver more electricity to the country with another two power projects which were also awarded to the consortium in the same public tender.

“VPower Group has developed a strong position in the gas-fired distributed power generation industry in Asia, and it has been actively working on delivering more low carbon and sustainable energy as a responsible global citizen. The success of this LNG-to-power project has turned the development of VPower Group to a new page as it demonstrates our capability to provide the cleanest fossil fuel available for power generation with operational flexibility and agility. We are extremely pleased to join hands with our strategic partner CNTIC on the project and look forward to further deepening our cooperation.” Added Mr. Ambrose Lee, Chief Strategy Officer and Head of Capital Markets and Corporate Finance of VPower Group.

About VPower Group International Holdings Limited
Headquartered in Hong Kong, VPower Group is an integrated expert in distributed power generation (DPG). It principally engages in power system integration (SI) business, covering designing, integrating and sale of gas-fired and diesel-fired engine-based gen-sets and power generation systems, and Investment, Building and Operating (IBO) business, involving investing in, building and operating distributed power stations to supply reliable electricity. It is now a leading distributed power station owner and operator in Asia.

Lawrence Ho’s Family Office Black Spade Capital Makes its First Move in the Medical IT Space via My Platform

Black Spade Capital Limited (“Black Spade Capital”), a family office managing the private investments of Mr. Lawrence Ho, Chairman and Chief Executive of Melco International Development Limited, has announced it has invested and held shares in My Platform, a medical IT services platform.

Founded in Hong Kong as a start-up, My Platform was launched as a brand-new medical management system by marrying IT with the concept of smart medical care. The result is a one-stop resources sharing platform with real-time access that connects the many stakeholders in the traditional healthcare ecosystem. The enormous growth potential of My Platform has attracted various investors, among them Black Spade Capital, whose investment affirms the value of My Platform.

Since its establishment in 2016, My Platform has been focusing on developing a simple and easy-to-use interface. With user experience in mind, the system allows users to master the clinic operating system in a short period of time. Be it a doctor, a medical group, an insurance company, a patient or the human resources department in an organization, users of My Platform can make use of the one-stop data management service to run analysis of different workflow from outpatient consultation to insurance claim. By constantly adding and customising system functionalities, not only does My Platform enhance user safety and operational efficiency, but it also saves time for performing diagnosis by doctors and healthcare practitioners. In response to the inconvenience and negative impact brought by the epidemic, My Platform has since been strengthening its service offerings and developing remote consultation services (“Telemedicine Services”).

My Platform is one of the participating service providers under the D-Biz Programme launched by the Hong Kong SAR Government. It is committed to promoting a paperless medical work environment by transferring medical records and insurance information to cloud platform, thus allowing clinics to share resources. My Platform places great emphasis on data security so that users need not worry about any loss caused by computer malfunctioning. To shorten the lengthy process for medical insurance claims, My Platform enables doctors to directly connect with insurance companies such that both parties can choose their partners freely. By allowing real-time review and follow-up on claim status, the entire process becomes more transparent and the time lag from lodging a claim application to getting insurance compensation reduces significantly.

My Platform boasts a mature operation system which is recognized and appreciated by many doctors. In 2018, the well-known medical group Virtus Medical (managed by Dr Manson Fok, son of the late Mr. Henry Fok Ying-Tung, a vice chairman of the Chinese People’s Political Consultative Conference (CPPCC)) took the lead to adopt the operation system of My Platform. At present, the system developed by My Platform is serving hundreds of general clinics, specialist clinics and radiology & imaging diagnostic centres in Hong Kong. It has also been adopted by reputable practitioners at Central Building, Hing Wai Building, Entertainment Building and the 15-storey Virtus Medical Tower (where the operation system of My Platform is adopted by practitioners in the entire building) in the Central district, as well as H Zentre (newly opened last year) and Hong Kong Pacific Center in Tsim Sha Tsui. In addition, the system of My Platform is also adopted by iRAD, one of the largest radiology & imaging diagnostic groups in Hong Kong, which further boosts the brand recognition of My Platform in the sector.

To date, the operation of My Platform has expanded to first-tier cities in the Mainland China such as Beijing and Shenzhen. With the support of the business development centre in Guangzhou, My Platform is capable of seizing business opportunities in mainland cities and providing a quality management system to local high-end clinics. Looking to the future, My Platform will strive to roll out its service to different cities in China to make its service portfolio more accessible to all stakeholders.

About Black Spade Capital Limited
Black Spade Capital Limited is an established family office managing the private investments of Mr. Lawrence Ho. Headquartered in Hong Kong, its global portfolio consists of a wide spectrum of cross-border investments as it consistently seeks to add new projects and opportunities to its investment mix. Black Spade’s investment strategy maximizes coverage of geographic regions and sectors whilst maintaining a portfolio of diversified asset classes, ranging from equity, fixed income, medical technology, leisure and culture, green energy, real estate to Pre-IPO investments.

Grand Ming Group Holdings Limited Announces Annual Results for the Year Ended 31 March 2020

HONG KONG, June 8, 2020 – (ACN Newswire) – Grand Ming Group Holdings Limited (the “Company” and together with its subsidiaries, the “Group”, stock code: 1271.HK) today announces its annual results for the year ended 31 March 2020 (“FY 2019/20”).

Highlights
– Revenue amounted to HK$902.6 million, an increase of 47.1% from the previous financial year.
– Net profit was HK$33.8 million, representing a decrease of 77.3%.
– Underlying profit decreased by 65.9% to HK$44.2 million, excluding the change in fair value of investment properties.
– Proposed payment of a final dividend of 4.0 HK cents per share.
– Proposed issue of bonus issue on the basis of one (1) bonus share for every one (1) existing share held
– Remains cautious in acquiring land and properties in face of economic uncertainty while striving to extend its market reach in prudent approach.

The Group’s consolidated revenue increased 47.1% from HK$613.4 million for the year ended 31 March 2019 (“FY 2018/19”) to HK$902.6 million for FY 2019/20. The increase was primarily driven by the revenue generated from a new building construction contract in Kai Tak and the sales of five units of Cristallo during the FY 2019/20.

The Group’s underlying profit for FY 2019/20, excluding the change in fair value of investment properties, amounted to HK$44.2 million, representing a drop of 65.9% from HK$129.6 million in FY 2018/19. Underlying earnings per share was 6.2 HK cents (2019: 18.3 HK cents). The drop in the profit were mainly attributed to the increase in selling expenses derived from advertising and marketing expenses incurred in the sales campaign of the Grand Marine (a residential project under construction located at Tsing Yi), and increase in depreciation charges from the renovation and equipment in the sales office. Net profit for FY 2019/20 was HK$33.8 million, inclusive of an unrealised fair value loss on investment properties of approximately $10.3 million (2019: gain of $19.4 million), representing a decrease of 77.3% compared to that of HK$149.0 million for FY 2018/19. Basic earnings per share were 4.8 HK cents (2019: 21.0 HK cents).

It is the Group’s policy to reward shareholders in participating the Group’s profit. The Board now recommended to pay a final dividend for FY 2019/20 of 4.0 HK cents per share. Together with the interim dividend of 4.0 HK cents per share and special interim dividend of 50.0 HK cents per share, the total dividends for FY 2019/20 amounted to 58.0 HK cents per share. The Board also proposes issue of bonus shares on the basis of one bonus share for every one existing share held.

During FY 2019/20, revenue derived from the construction business increased by approximately 87.7% or HK$232.2 million, from approximately HK$264.9 million for FY 2018/19 to approximately HK$497.1 million for FY 2019/20. The increase was mainly attributable to a new construction project at Kai Tak, of which the contract was awarded in March 2019 and work commenced in May 2019.

For the data centre leasing business, the Group’s two high-tier data centre buildings, namely iTech Tower 1 and iTech Tower 2, offered stable rental income to the Group. As at 31 March 2020, binding commitments have been secured on all the raised floor area space of iTech Tower 2. For FY 2019/20, revenue derived from this segment decreased by approximately 8.2% to approximately HK$139.8 million for FY 2019/20, primarily due to reduction of rental related income as a result of lower electricity consumption by the tenant of iTech Tower 1 during the year under review.

The Group’s first property project at 18 Sai Shan Road, Tsing Yi, New Territories is now named “The Grand Marine”. This project will provide 776 residential units in two towers, ranging from one-bedroom to four-bedroom and special units. The foundation works have been completed and the superstructure work will be proceeded immediately. The development is expected to be completed in late 2021. The project had received overwhelming response from the market since its presale was launched in November 2019, with over 83% of the residential units being sold and cumulative presale proceeds of approximately HK$4.0 billion being recorded as of the end of May 2020.

The Group’s another luxury low-density residential development project, CRISTALLO, located at 279 Prince Edward Road West, Kowloon also sold well. During the year under review, sales and delivery of five apartments had been completed, and revenue of approximately HK$265.6 million was recognized accordingly. The Group also entered into eight provisional sales and purchase agreements in respect of sales of eight apartments with aggregate contract sum of approximately HK$405.7 million. Completions of these eight apartments are scheduled to take place from June 2020 to October 2021.

Mr. Chan Hung Ming, Chairman and Executive Director of Grand Ming Group Holdings concluded, “This year has been very challenging as Hong Kong’s economy has been hit hard by local protests from mid 2019 as well as the Novel Coronavirus pandemic from the beginning of 2020. We expect the economic outlook in short and medium-term remain soft. Despite being cautious, the Group will not stop the pace in identifying suitable opportunities for land and properties acquisition to increase our land reserve. The success of the Grand Marine project had provided a solid foundation for the Group’s future property development business. We also extend our market reach into Mainland China and start to seek suitable property development projects in Nanning City of Guangxi Province with an aim to broaden the Group’s income stream. Meanwhile, we continue to invest and upgrade our existing infrastructure and facilities of our two data centres to cater for customers’ needs, and look for new sites in the territory and elsewhere outside Hong Kong for setting up our third high-tier data centre. As for the construction business, the focus remains in existing construction projects. We adhere to our extremely prudent strategy in tendering new construction contracts as profit margins have been substantially undermined due to a drop in new residential projects and severe industry competition.”

About Grand Ming Group Holdings Limited (Stock code: 1271.HK)
The Group is principally engaged in the business of building construction, property leasing and property development. As a local wholesale co-location provider of high-tier data centres, the Group is one of the dedicated service providers in Hong Kong which owns and uses the entire building for leasing to customers for data centre use. Its clientele includes multinational data centre operator, telecommunications company and financial institutions. With more than 20 years of experience in the construction industry, the Group also provides building construction services as a main contractor, and is involved in residential property development projects with prominent local developers, as well as offering alteration, renovation and fitting-out services for existing buildings in Hong Kong. Furthermore, the Group owns a land in Sai Shan Road, Tsing Yi for developing a residential project now named “The Grand Marine” with gross floor area of 400,000 square feet, as well as a luxury residential project, Cristallo, at Prince Edward Road West, Kowloon.

Media Contacts:
Angel Yeung
Jovian Communications Ltd
Tel: +852 2581 0168
Email: news@joviancomm.com

MINY Makes Crypto Mining Affordable For Everyone

MINY, the Hong Kong based blockchain startup, has announced the launch of it’s MINY platform to facilitate crypto mining. As is common knowledge, crypto miners have the luxury to choose to mine the most valuable coins. However only a very few miners are capable of earning huge profits. MINY is launching a platform where miners from different countries and with different levels of expertise and knowledge about mining can come together and share in their resources to earn mining rewards.

The primary reason why a lot of individuals are limited from venturing fully into cryptomining is the high costs that are associated with it. MINY understands the need for every miner to maximize his or her profits. For this reason, it has identified the problem lies in miners not having enough resources. As such, the platform has devised three major strategies that are a sure way in which miners will earn profits even though they have limited resources.

Cloud Mining Pool
To help miners to maximize their profits, MINY combines its computational power by bringing various miners together. The users on the platform join a mining pool where they bring together their resources. Then the profits that are realized from mining are distributed proportionately according to the amount that a user has in their mining pool.

AI
This is another significant way that MINY is using in a bid to ensure that their users can reap big. The cryptocurrency market is very dynamic, and this means that the value of different coins keeps changing over time. As a way of making sure that miners do not suffer from losses, MINY uses an AI algorithm that will analyze the future value of various coins. This will then help to focus the mining activities at only those coins that are valuable. The MINY AI algorithm is accurate in its predictions, and as such, it helps to increase the mining efficiency.

MINY Token
The MINY platform has developed a native token, MINY, which is a self-established cryptocurrency. The token is obtainable by earning mining rewards and commissions, starting at a price of $1. It is also designed with an artificial scarcity, meaning it cannot lose value, but rather increases when parts are sold. After 12 months it is released and can be traded on external exchanges and is then pegged on economic principles. In addition to the many advantages of the MINY token it will be available for renting computational power on the Miny platform and for purchasing mining equipment.

It is very easy to join MINY’s cloud mining pool and become one of the many users that are benefiting from this great initiative. Once users open an account, they can deposit their funds, which will be used to rent computational power. Besides this, they can purchase MINY tokens that users can also use to rent computational power. The profits that will be accrued from the mining rewards will then be shared among the users according to the amount that they contributed towards their mining pool.

Company: MINY LIMITED
Contact: PR Team
Email: info@miny.cc
Website: https://miny.cc

Sapphire to Strategically Divest 43.87% Equity Stake of Subsidiary Ranken Railway for Cash Consideration of RMB 280 Million

To Retain 48.82% Effective Interest in Ranken Railway after Divestment

Sapphire is to strategically divest a 43.87% equity stake of subsidiary Ranken Railway for a cash consideration of RMB 280 million; and to retain 48.82% effective interest in Ranken Railway after divestment.

– With Ranken Railway’s (excluding the carved-out assets) transaction valuation of approximately RMB 638.2 million, Shandong Hi-Speed will purchase a 43.87% equity stake from Sapphire for RMB 280 million and subscribe for more shares in Ranken Railway, amounting to approximately 10.6% of the enlarged equity capital post-proposed transactions, for approximately RMB 75.7 million.

– Shenzhen-listed Shandong Listco (Shandong Hi-Speed’s sole shareholder) has a market capitalisation of approximately RMB 5.24 billion as at 31 December 2019 and it is majority-owned by a wholly-state-owned enterprise in the PRC, hence Ranken Railway will become an indirect and partial SOE and it will be able to tender for key infrastructure projects in the PRC which require contractors or vendors to be state-owned.

– Upon the completion of the proposed transactions, Sapphire will retain 48.82% effective interest of Ranken Railway.

– The total consideration is 314% of Company’s market capitalisation based on the closing price of the shares of the trading day prior to the date of this announcement.

Shandong Listco is a listed company on the Main Board of the Shenzhen Stock Exchange (stock code:000498) and it is engaged in the business of undertaking infrastructure construction, including highways, bridges, tunnels, municipal works engineering, traffic engineering, ports and waterways.

As at 31 December 2019, Shandong Listco’s market capitalisation is approximately RMB 5.24 billion, with an order book of approximately RMB 22.1 billion. Based on Shandong Listco’s annual report for the 2019 financial year, the net assets attributable to its holding company amounted to approximately RMB 5.5 billion, and total assets approximately RMB 32.1 billion.

The controlling shareholder of Shandong Listco is Shandong Hi-Speed Group Co., Ltd. (“Shandong HSG”), which holds 60.66% of the shares of Shandong Hi-Speed. Shandong HSG is a wholly-state-owned enterprise (“SOE”) headquartered in Jinan City, Shandong Province of the PRC.

From a financial perspective, the proposed transactions has positive financial effects on the Group and in particular, the Group’s net tangible assets (“NTA”) per share will increase from RMB cents 131.82 to RMB cents 155.51 (where retained interest in Ranken Railway is measured at fair value), and which the NTA of RMB cents 155.51 represents more than 5.6 times the closing price of the shares of the trading day prior to the date of this announcement; and (ii) a gain of approximately RMB 58 million (where retained interest in Ranken Railway is measured at fair value).

And given its status as an indirect SOE following the proposed transactions, Ranken Railway would be placed in a more favourable position to secure project contracts in the PRC, and may be able to enjoy lower interest rates on external borrowings from financial institutions.

In addition, Ranken Railway currently faces strong competitive pressure in tendering for projects in the PRC, with most of the projects it has tendered for awarded to SOEs. Hence, as an indirect and partial SOE, Ranken Railway will be able to tender for key infrastructure projects in the PRC which require contractors or vendors to be state-owned which it was previously ineligible to participate, in addition to projects which it could previously access as a privately-owned enterprise.

Ms Wang Heng, Chief Executive Officer of Sapphire, said, “While unlocking value for shareholders, we believe that this strategic divestment to Shandong Hi-Speed can significantly enhance the value and prospects of Ranken Railway with the combination of both companies’ capabilities and resources to tap new market opportunities in urban railway infrastructure and water environmental management projects.

“And by retaining a meaningful stake in Ranken Railway, we have the opportunity to participate in the future growth of Ranken Railway as an indirect and partial state-owned- enterprise in the PRC.

“Notably, the gross cash consideration of RMB 280 million will give the Group’s increased financial flexibility to strengthen our balance sheet and create optionality in our other business areas.”

About Sapphire Corporation Limited
(Bloomberg Code: SAPP:SP / Reuters Code: SAPP.SI / SGX Code: BRD.SI)

Listed on the Mainboard of the Singapore Exchange since 1999, Sapphire Corporation Limited (“Sapphire” or the “Group”) is an investment management and holding company with a business model aligned towards urbanisation trends. Particularly, the Group is principally engaged in the engineering, procurement and construction (“EPC”) business related to the land transport infrastructure and water conservancy and environmental projects in China.

The Group owns a 100% stake in China-based EPC business Ranken Holding Co., Limited (“Ranken”) and its subsidiaries, which is a full-edged EPC firm and one of the largest privately owned integrated urban rail transport infrastructure groups in China.

Ranken holds full Triple-A qualifications and licences for design, supervision, construction and project consultation in the urban rail sector. Ranken’s expertise includes civil engineering works for metro lines, urban rail transit, expressways, roads and bridges as well as water conservancy and environmental projects. Its track record includes major infrastructure projects in China and South Asia. Ranken’s blue-chip customer clientele includes government agencies, consortiums and Fortune 500 companies.

Issued on behalf of Sapphire Corporation Limited by:
Waterbrooks Consultants Pte Ltd, Tel: +65 6958 8002
Mr. Wayne Koo, (M): +65 9338 8166, wayne.koo@waterbrooks.com.sg
Mr. Alex Tan, (M): +65 9451 5252, kai@waterbrooks.com.sg

Wintermar Offshore (WINS:JK) back to black in 1Q2020

Wintermar Offshore Marine (WINS:JK) returned to profitability during 1Q2020 with Owned Vessel Revenue up 18% YoY to US$9.9 million, and gross profit of US$1.28 million compared to a gross loss of US$0.73 million during 1Q2019. The quarter saw a pick up in utilization of high tier vessels as several new contracts commenced, lifting the average utilization of the fleet to 68% compared to only 46% a year ago. The Company turned positive in gross and net profit for the first time in three years.

-Owned Vessel Division-

Continuing the uptrend in offshore activity for 1Q2020 which began in 2019, the Company earned a positive gross margin of 7% in the Owned Vessel Division compared to losses in the past 4 quarters. High tier vessels were again in demand, in particular the Platform Supply Vessel type, which improved to 90% utilization in the month of March 2020. There were several oil and gas projects in Indonesia which required a combination of mid and high tier vessel for drilling, engineering and support jobs. For 1Q2020, Owned Vessel direct costs declined by 8% YOY mainly due to a 17% decline in depreciation from vessel sales and impairment of fleet. Fuel costs also fell significantly by 30% due to higher utilization and the end of the “wet contract” which was in operation a year ago, whereby fuel cost was borne by the Company. With the better utilization, Crewing costs also rose by 18% to US$2.5 million, also due to some foreign contracts which require foreign crew.

-Chartering and Other Services-

Chartering Revenue for 1Q2020 was 22% lower than a year ago at US$2.3 million. However, chartering margins improved from 11% to 15% and gross profit from Chartering improved by 2% to US$0.33 mil compared to the previous year. Income from Other Services fell by 52% to US$0.29 mil.

The Management’s continued drive for efficiency has produced results, as indirect expenses fell by 12% YOY to US$1.5 million for 1Q2020. These were due to savings in staff costs, marketing and office utility, while depreciation fell after some equipment was fully depreciated. The lower overhead costs are the result of the shedding of older and smaller vessels in the continued vessel sale program undertaken in the past two years, which has facilitated the streamlining of onshore staff. The Company’s fleet has now been reduced to 47 vessels from 58 vessels two years ago at the end of 2018.

-Other Income, Expenses and Net Attributable profit-

Interest Expenses fell 16% YOY to US$0.94 million for 1Q2020. Debt has been reduced significantly to achieve a net gearing ratio of 36% at the end of the first quarter. Share of losses at associated companies amounted to US$0.27 million but this was offset by a US$0.97 million profit on sale of vessel and foreign exchange gain of US$0.7 million.

The Company turned a profit of US$48,327 during 1Q2020, compared to a loss of US$2.3 million in 1Q2019. EBITDA improved by 27% YOY to US$5.1 million for 1Q2020.

-Oil and Gas Industry-

The Coronavirus pandemic has caused major disruptions to the world. The necessary lock down measures taken by many countries all over the world to protect human life also caused the worst contraction in economic activity in recent history. Air and road traffic was brought to a standstill in 2Q2020 as a result of the strict travel restrictions being imposed all over the world. As oil demand collapsed, storage capacity in the USA started to fill up. With nowhere to store crude, the WTI Crude oil price fell to a historical negative US$37 per barrel. US oil producers had no choice but to shut down producing wells, and OPEC responded with an agreement to reduce production by 9 million barrels a day by 2020. The supply cuts were swift because of the lack of storage capacity.

It is estimated that oil demand hit bottom in April 2020 at low of 72 million barrels per day (bpd). Since early May, there has been some recovery in oil demand as some countries which have COVID-19 under control are starting to ease travel restrictions. Rystad Energy Research estimates that oil demand will gradually recover over the rest of the year, and total oil consumption for 2020 will likely be about 89 million bpd, a decline of 11% from 2019.

However, because of the sharp decline in capex that has already occurred in the past few years, researchers are now projecting an oil supply shortfall of 5 million bpd by 2023. There is therefore more optimism that offshore production will have to meet this shortfall.

Oil prices are projected to stay around US$30-40 per barrel in 2020 and 2021, as inventories will be drawn down before supply and demand find a balance.

-Outlook for Offshore Support Vessels (OSV)-

Many oil companies have announced cuts to their capital expenditure projections for 2020, which is estimated to be 20-24% lower in 2020 compared to 2019. The majority of the announced cuts are in the US Shale segment which has higher average costs and a shorter investment cycle.

For owners of Offshore support Vessels (OSV), 2020 was supposed to be a recovery year as utilization and rates both started to rise. However, COVID-19 has put a halt on that. The recovery is now likely to be delayed by a year. In Indonesia, we expect Pertamina Hulu Energi, as Indonesia’s national oil company, to continue to ensure that production delivers the required supply to the country. However, for some independent international oil companies, the current weak oil price has already caused a slashing of capex and some suspensions in operations.

In the short term, there will be lower utilization and some downward pressure on charter rates. The OSV industry has already reduced costs significantly and charter rates have not really recovered from the lowest point last year. Therefore, we do not expect a sharp decline in charter rates as a result of the COVID-19 impact because many companies are already operating at low or even negative margins. It is also expected that offshore oil production will benefit from lower shale output as demand recovers over the next two years, which will underpin OSV demand in the coming year.

-COVID-19 Response and Impact-

Wintermar is committed to prioritizing the health and safety of all staff and clients. As the COVID-19 pandemic started to impact the world, management activated the Business Continuity Plan in mid-March. This was to ensure that business operations were undisrupted while at the same time taking measures to ensure the health and well-being of all personnel and clients. Starting with socialization across our fleet and office on sanitization and hygiene practices, new procedures were implemented, including daily temperature taking, frequent cleaning and disinfecting of premises, provision of hand sanitisers, masks, and PPE, as well as social distancing. For office staff, we implemented Team A & B segregation with half the office “Working From Home” (“WFH”) on alternate days. By the 23rd March 2020, the company moved to full scale WFH before the Indonesian government implemented wide scale social distancing (“PSBB”). The Company’s fleet continued to operate normally during WFH through remote management of the fleet and using online video meeting applications for daily meetings.

Due to the strict travel restrictions put into place globally, there was an impact on the crew change schedule and delivery of spare parts. There were widespread flight cancellations, port closures, quarantine requirements and some charterer regulations prohibiting new crew from going on board during COVID-19. As a result, some of the crew who were scheduled to be relieved had no choice but to stay on board for longer. Crew which were allowed to go on board had to serve a 14 day quarantine prior to boarding the vessels. So far, because most of our vessels work in remote areas and not many are carrying passengers, the crew are able to mitigate the risk of COVID through various procedures of social distancing and frequent disinfection. Sourcing of some spare parts required for maintenance and docking were also affected due to disruptions in logistical services which caused some operational delays.

A COVID-19 task force has been tasked with coordinating all procedures and responses for the Company. The team meets regularly to monitor and adapt to the changing situation. Procedures for temperature taking, frequent disinfecting and distancing were put in place on board the fleet. There will be continued monitoring of procedures and more work to ensure that our shore teams and crew are well cared for during this time while ensuring no disruptions to clients’ operations.

In terms of business operations, Wintermar is affected by an international oil company who has terminated their exploration and development work in Indonesia, citing COVID-19 as the reason. In another case, a contract in Africa which was supposed to commence in April has been suspended until further notice. The Indonesian government has provided tax reliefs for personal income taxes which will benefit staff and crew as the Company operates on a gross salary basis.

-Strategy and Outlook-

Wintermar had already experienced a turnaround in 1Q2020 and expectations were for a continued improvement in profitability for 2020. Unfortunately, the COVID-19 pandemic has caused a sharp contraction in oil demand resulting in cuts in capital expenditure by the oil producers.

Management expects that utilization rates will decline in 2Q and perhaps stay low for the rest of 2020 as short term contracts which expire in this period are unlikely to be renewed.

Learning from recent experience in the 2015 downturn, the Company has been quick to implement cost cutting measures in the past month. Some of these include reduction of crew on idle vessels, usage of shore power connection, cutting back on subscriptions for communications services for non operational vessels as well as postponement of non essential expense and a hiring freeze.

There will be more effort to improve efficiency through streamlining processes to reduce paperwork and increase automation.

There have been some postponement of drilling projects from 2020 to 2021 as oil companies have been unwilling to commit while the outlook on oil prices remains unpredictable. However, the worst month for oil consumption and demand seems to be behind us in April. As countries start to loosen travel restrictions, there are signs that consumer preferences have shifted towards private vehicles instead of mass transport, which has a bigger impact on road fuel demand. It is likely that by the third quarter, there will be a better understanding of how economies will resume activities post COVID-19 and demand for oil is predicted to recover to 2019 levels by end of 2021.

Wintermar’s major lenders have been very supportive during this time. The Company is in the final stages of rescheduling loan repayments with major lenders which will provide better matching of cash outflows with the current scenario.

Contracts on hand as at end March 2020 amount to US$78.5 million.

About Wintermar Offshore Marine Group

Wintermar Offshore Marine Group (WINS.JK), developed over nearly 50 years with a track record of quality that is both a source of pride and responsibility that we are dedicated to upholding, and sails a fleet of more than 48 Offshore Support Vessels ready for long term as well as spot charters. All vessels are operated by experienced Indonesian crew, tracked by satellite systems and monitored in real time by shore-based Vessel Teams.

Wintermar is the first shipping company in Indonesia to be certified with an Integrated Management System by Lloyd’s Register Quality Assurance, and is currently certified with ISO 9001:2015 (Quality), ISO14001:2015 (Environment) and OHSAS 18001:2007 (Occupational Health and Safety). For more information, please visit www.wintermar.com.

Contact:

Ms. Pek Swan Layanto, CFA
Investor Relations
PT Wintermar Offshore Marine Tbk
Tel: +62-21 530 5201 Ext 401
Email: investor_relations@wintermar.com

Southern Asset Management’s Li Haipeng Sees Promising Future for Bond Index Funds

BEIJING – (ACN Newswire) – Since 2018, bond index funds have delivered an eye-catching performance as the bond market goes bullish, and bond index fund products have reported an exponential growth in not only the quantity but also the size, drawing increasing attention from investors. Southern Asset Management, as one of the earliest fund companies in China to develop bond index funds, has scaled up its bond index fund products continuously in recent years. According to Wind and the 1Q product reports, as of 1Q20, bond index funds managed by Southern Asset Management added up to more than RMB30 billion, ranking ahead in the entire market; China Southern China Bond 1-3 Years CDB Bond Index Fund has become one of the largest bond index funds across the whole market with a size of over RMB28 billion.

Mr. Li Haipeng, Deputy General Manager & Chief Investment Officer (Fixed Income) at Southern Asset Management, expects the bond index fund market to continue to grow in size and sophistication with the new business formats of the asset management industry. He says his company will further improve the index fund product line based on customer requirements, and provide customers with more diversified instruments.

Advantageous bond index funds onto a fast growth track

As early as in 2011, a bond index fund, namely China Southern CSI 50 Bond Index Fund, was made debut in China’s fund industry. It is the predecessor of China Southern China Bond 10-year Treasury Bond Index Fund. However, it was not until 2018 that the bond index market stepped onto a fast growth track in the real sense. Over the past two years, there has been a growth of more than RMB300 billion in the market size. As of 1Q20, the entire market had 103 bond index funds putting RMB367,953 million under management and covering many different classes of assets, e.g. policy-related financial bonds, local government bonds and unsecured bonds with high credit ratings.

Mr. Li said, rapid development in the past years is an inevitability for China’s bond index funds, and this is also an irresistible development trend of global mutual fund industry. According to the statistics of Bloomberg, as of 1Q20, bond index funds (including ETFs) in the U.S. had a size of about USD1.52 trillion, accounting for over 28% of all the fixed-income mutual funds. China’s bond index funds share a series of common characteristics with their foreign counterparts but they are also unique in their own ways: First, with a clear risk & return characteristic, bond index funds are an ideal instrument for customers to realize the strategy of allocating assets among major categories and also the timing strategy. Second, the clear and transparent operations of bond index funds make them suitable for penetrated management of underlying assets, which is right in the direction of regulatory policies in the era of new asset management regulations. Third, the management fees of bond index funds are usually lower than traditional money market funds and active bond funds. Therefore, they are more cost-effective. Fourth, from a long-term point of view, the performance of passive products may beat active ones. Especially in the current low-interest rate environment, there are relatively limited opportunities of getting an alpha, i.e. excessive return, and thus passive products stand out with their particular advantages.

Mr. Li also stressed, China’s bond index fund sector, in spite of a fast growth in recent years, is still in infancy compared with overseas, typically seen in: (1) a relatively small market size. In the entire market bond index funds account for about 8% of all the bond funds, a big gap from the 28% weight in the U.S.; (2)lack of product diversity. Bond index funds currently available in the market mostly invest in short- and medium-term policy-related financial bonds to reflect the common index performance. Their types and tenors call for innovation.

Promising bond index fund market to further enlarge volume

Mr. Li offered insights into the future development of bond index funds. He predicted the market volume and instrument nature of bond index funds would be further strengthened in the days to come. In the new era of pan-asset management, net worth-based product and penetrated supervision will define the development of financial industry. However, net worth-based product does not mean that customers can tolerate sharp fluctuations of product performance. In consideration of customers’ traditional wealth management habit, the ability to create sustained absolute return will become the core competitiveness of mutual fund companies, wealth management subsidiaries of banks and other asset management institutions. Because of the big volatility of single assets and the difficulty for them to get an alpha, to secure a long-term stable return must rely on a portfolio which is made up of different assets and takes asset allocations among major categories as the core strategy.

Mr. Li analyzed, in the above-mentioned context, bond index funds which boast a low cost, clear risk & return characteristic, good liquidity, high transparency, stable return and risk decentralization will possibly become the next type of superb instrument products under the new business formats of the asset management industry in the future and help wealth management subsidiaries of banks and other asset management institutions to construct multi-asset portfolios in a cost-efficient manner. Thus, broad development prospects are expected for bond index funds.

Concerning what kind of competitive landscape China’s bond index fund market will show in the future, Mr. Li said, “the development of bond index funds in the rest of the world obviously features ‘leader effect’ and ‘first-mover advantage’. The bond index funds managed by Vanguard Group which has accumulated decades’ experiences and been reputable in the industry approximate USD700 billion. iShares is a leader in the bond ETF sector, and bond ETFs managed by it exceed USD400 billion. In our opinion, the main reason lies in the fact that a larger fund decentralizes its liabilities and is thus more stable. This is conducive to the application of different asset strategies. What’s more, purchases and redemptions by investors usually have a small impact on fund operations and help to control the tracking errors. Moreover, a larger ETF usually has higher liquidity and lower discount/premium in the secondary market, thus in a better position to meet the trading needs of investors, form a loop of positive feedbacks and continuously push up the size. A leader effect is expected in China’s developing bond index fund market, just the same as the foreign markets, and the leading companies will become even stronger.

Southern Asset Management expanding bond index fund size to above RMB30 billion after years’ endeavors

Back to 2011, Southern Asset Management began to tap the bond index sector, and issued China Southern CSI 50 Bond Index Fund, which was transformed into China Southern China Bond 10-year Treasury Bond Index Fund in 2016. After nearly a decade’s endeavors, Southern Asset Management has become increasingly mature in the management techniques, system development and team building of bond index fund products. Its bond index funds post an annualized tracking error rate far lower than the average of comparable counterparts in the market during the operating period, and are more accurate in tracking indexes.

For many years, Southern Asset Management has made unremitting efforts to enhance the management capabilities of bond index funds and committed itself to building a China-famous bond index fund management brand. The long-term efforts have paid off. The company has accumulated rich experiences in the management of bond index funds and put in place an advanced management system. In addition, Southern Asset Management has continued to accelerate the deployment of index fund product line in a bid to provide institutional bond investors with a wide array of investment instruments. Since 2018, Southern Asset Management has taken faster moves in offering bond index fund products. By successively incepting and issuing index product series including China Southern China Bond 1-3 Years CDB Bond Index Fund, China Southern China Bond 3-5 Years ADBC Bond Index Fund and China Southern China Bond 7-10 Years CDB Bond Index Fund, the company has fully covered the yield curves of short-, medium- and long-term products. It has also successively issued a regional unsecured bond index fund, further enriching the product mix.

The years’ endeavors of Southern Asset Management have been well recognized by customers. According to Wind and the 1Q product reports, as of 1Q20, bond index funds managed by Southern Asset Management added up to more than RMB30 billion, ranking ahead in the entire market; China Southern China Bond 1-3 Years CDB Bond Index Fund has become one of the largest bond index funds across the whole market with a size of over RMB28 billion.

Following the general trend of increasing investment in bond index products, Mr. Li introduced, “Southern Asset Management will remain focused on two aspects in the future. At the product level, we will, based on customer needs, further improve the index fund product line and provide customers with more diverse instrument products. On the basis of having extended our interest rate bond products to all yield curves, we will place a high premium on index enhanced products, unsecured bond index products and innovative ETF products to further diversify our product line. Particularly in terms of innovative products, Southern Asset Management will deem the development of inter-market ETFs and inter-bank market convertible bond index funds a key project in line with the policy orientation, and make efforts to become one of the first group of fund companies to pilot and premiere innovative products.”

Company Overview

On March 6th, 1998, China Southern Asset Management Co., Ltd. (Southern Asset Management) was officially established as one of the first domestic asset management companies approved and regulated by the China Securities Regulatory Commission (CSRC), which symbolizes the start of our nation’s “New Golden Era for Funds”.

Southern Asset Management has stood the tests of time and sweeping change in the Chinese capital markets. By showing stable and sustainable performance and providing improved and professional services, Southern Asset Management has managed to continuously build trust and recognition through a wide range of investors including mutual fund investors, the National Council for Social Security Fund, corporate annuity clients and high-net-worth clients.

Southern Asset Management has grown to become an industry leader, with a diverse range of products, comprehensive business activities, exceptional investment performance and a large scale of assets under management. As of March 31st, 2020, Southern Asset Management and its subsidiaries had combined assets under management (AUM) of USD 160.8 billion. Visit www.southernfund.com.

Media Contact: Si Chen

E: chensi@southernfund.com

China Southern Asset Management

URL: https://southernfund.com

Blood on the streets: is it the right time to invest?

In just about three months, the coronavirus managed to spread across the globe triggering an economic crisis in its wake. As a result, the entire globe has experienced a short-term collapse in productivity hence a global financial crisis that experts predict could be worse than that of 2008.

Even though central banks and financial authorities are trying to soften the blow with policies aimed at increasing liquidity in the global economy, it is evident that a global economic downturn is unavoidable. The big question, however, is: How are you as an investor preparing for the looming global economic crisis?

What should investors do?

In the words of Warren Buffet (the oracle of Omaha), the best move is an “attempt to be fearful when others are greedy and to be greedy only when others are fearful.” Fear has gripped the markets and for any seasoned investor, the obvious move is to buy low hanging stocks, shares, and bonds in collapsed markets.

However, while markets can be hard to predict even at the best of times, the coronavirus pandemic makes it even harder to understand. Reports show that investors who are getting back into the market are receiving confusing signals as quarterly earnings continue to shrink and corporate reports provide fewer clues about the future.

The truth however is that while some industries are bound to suffer, some will thrive on this pandemic. Therefore, the best move for smart investors is to jump on a platform that gives them a leg up in the market in terms of access to a set of hybrid trading strategies in multiple markets and in a variety of industries.

The tomato analogy

At this time, most investors will be tempted to sit on cash and wait. Even though signs of a market rebound are evident, most investors consider it too early to buy and too late to sell. However, sitting on cash right now will probably do more lasting damage and here is why.

“Government is the only institution that can take a valuable commodity like paper and make it worthless by applying ink.” This famous quote by the renowned Australian Economist Ludwig Von Misses, on inflation, is the main reason why you should not sit on cash.

Governments erode the value of each monetary unit whenever they expand a nation’s money supply. As governments across the world resort to extraordinary economic stimulus measures in response to the pandemic, the price of assets is bound to go up.

Here is how it works.

Consider the tomato analogy where you are in a market and have only two tomatoes to exchange with your partner’s two seashells. In total there are only four items in that market. This means you can swap one tomato for one seashell to the satisfaction of both parties.

However, if two more seashells are discovered in the market while the number of tomatoes remains constant, the price of tomatoes automatically goes up. Now you will have to exchange two seashells for one tomato. This is assuming you only have access to that one market.

What if you had access to avenues of mitigating inflation? You could probably find the most profitable price for your tomatoes or seashells. Well, trusted investment platforms like STAX help you do just that.

With STAX you won’t have to settle for the investment options in an inflated market. STAX gives you democratized access to an alternative asset class while enabling you to identify profitable investments even while there is blood on the streets.

What is STAX?

STAX is the first of its kind for raising equity capital in Australia. Its ethos is predicated on bridging the cryptocurrency markets and the traditional securities market. With an investor first approach, the rigorous screening process gives STAX investors access to attractive capital raising opportunities through the utilisation of FIAT or Digital Currencies.

STAX connects companies to people and paves a way for investors to make an impact by investing in the early stages of businesses. At its core, STAX was designed to be an attractive solution for investors. This rings true especially during uncertain times as is the current case with the coronavirus pandemic.

With an investor first approach, STAX allows investors to either use fiat or digital currencies to take part in equity capital raises. This means that FIAT and Digital Currency holders get to invest in companies to create more value in the market thus increasing overall productivity in the economy in the long run.

With this model, STAX democratises access to investors thus lowering the high barrier of entry that locks out startups and small and medium sized enterprises.

The bottom line

Without an inflation-resistant monetary system, an increase in the supply of money in such a system would lead to diminished wealth for investors who choose to hold currency rather than invest appropriately. As the world continues to fight COVID-19, the jury is still out on whether the market will eventually return to normal after the pandemic.

However, for the modern investor, the current pandemic is an opportunity to identify investment opportunities that can stand the test of time. The best move is to rigorously select investment with recurring revenues and scalable business models even amid an economic crisis.

By bridging securities with digital currencies, STAX offers an attractive proposition to experienced investors as well as new entrants to the investment arena. With the secondary market platform in the works, stay tuned for updates at: www.stax.exchange.

You can check out their offerings here https://www.stax.exchange/about/.

BHD Submits Application for Digital Token Offering to Coinbase

BHD has submitted a listing application to Coinbase. BHD’s STO application with the U.S. Securities and Exchange Commission (SEC) was approved on March 30th. The application to Coinbase is the first SEC-approved STO (security token offering) project to be submitted, which may accelerate BHD’s entry onto the Coinbase Exchange.

Coinbase provides varying levels of support for various assets. It supports around 20 cryptocurrencies and provides market information for around 300 cryptocurrencies, determined by market cap. BitcoinHD (BHD) appears in the latter group, which is not supported by Coinbase. Support for new assets follows the company’s Digital Asset Framework.

BHD uses a new Conditional Proof-of-Capacity (CPOC) mining mechanism with a perfect economic model and optimal consensus algorithm. BHD uses hard disk as consensus participant, reducing power consumption, and favors decentralization. BHD lowers the barrier to entry and creates safety and trust so everyone can participate in mining.

Compared with POW mining, CPOC mining is characterized by eco-friendliness. It consumes much less power, has lower noise, no heat, and is anti-ASIC. CPOC-based BHD fulfills the original intention of Satoshi Nakamoto: everyone can become a miner.

Coinbase is among the largest and most trusted companies in the digital currency space. It is the largest Bitcoin broker and established US digital currency exchange, with access to GDAX, 30 million registered users, and US$1 billion crypto under management. If BHD receives support from Coinbase Exchange, it will be a significant milestone for the BHD ecosystem.

Contact: Master L, master@btchd.org, www.btchd.org. BHD Community is now BHD Global Autonomy Foundation.