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29 August 2016 : True Money to Boost GL Sales in Cambodia

True Money to Boost GL Sales in Cambodia

29 Aug 2016

SET-listed digital finance firm Group Lease Public Company Limited (GL) is forecasting a major boost to its already flourishing business in Cambodia through a new partnership with True Money, a mobile-payment subsidiary of True Corp in Thailand, that will significantly increase the sales of GL’s financial services via True Money’s extensive network of about 5,000 agents spread out nationwide in Cambodia.

GL Finance (GLF, GL’s wholly-owned subsidiary in Cambodia) currently operates about 240 Points of Sales (POS) of its own in all parts of the country. “As a result of the new partnership, the 5,000 or so True Money small shops will become our sales agents. This will immensely improve our marketing and sales capability – without increasing our fixed costs,” stated Tatsuya Konoshita, chairman of GL’s executive committee. The True Money small shops are located even in small rural villages which will help extend GLF’s outreach to those areas.

Cambodia is already a key market for the GL Group. Of the 255.85 million baht net profit in Q2 this year, about 120 million baht was contributed from the operations in Cambodia and the profit number represents a three-fold increase from the roughly 40 million baht profit in the same quarter last year.

Mr. Tatsuya expected that the number of applications for loans will increase by about 50% in the fourth quarter this year as a result of the stepped-up sales drive through the new partnership with True Money and that the total number of loan applications next year will likely double – to be split half-half between GLF’s own POS and the True Money agents.

Calling it a win-win partnership, GLF CEO Riki Ishigami said: “I strongly believe our driving forces and cross-selling services shall provide us in the broader markets with big capacity to expand and operate successfully, particularly new opportunities for GLF to acquire a vast number of customers through True Money agents who can get commission in return, increase customer foot traffic which will boost usage of True Money’s money transfer services.”

The GLF CEO signed a memorandum of understanding (MOU) with True Money (Cambodia) Limited Managing Director Kong Mean in Phnom Penh on August 26 and the new partnership will become effective beginning September 1.

Parts of the Joint Cooperation Statement read: “GLF’s target customers are grassroots people who are mostly un-banked and in fact (they are) also True Money’s target customers. This mutually beneficial cooperation will create strong and unique synergies for GLF, True Money and its agents and thus, deliver robust business growth …”

Typically, the True Money shop operators who will from now double up as GLF’s sales agents will download GL Digital Finance Application (GL’s own-developed digital finance platform which has been successfully used in Cambodia) onto their smart phones, input prospective GLF clients’ information and send to the nearest GLF POS offices immediately. Then, GLF’s local-area credit officers will visit the potential clients to evaluate the loan applications. “This way, we can also fully utilize our staffs since our credit officers can visit 2-3 clients a day while at present they just visit on average 0.25 client daily,” Mr. Tatsuya said.

He added that even at the current rate of staffs utilization, GLF is already making good profits and therefore, the more effective staffs utilization will generate better results. Each GLF POS is staffed with 3 credit officers.

GLF at present handles financing for about 3,000 Honda motorcycles per month, which represents just 10% of the total motorcycles market in Cambodia. “The other 90% of the market is bought and sold in cash. This means there is enormous room for growth for our financing services,” Mr. Tatsuya said. Honda is by far the most popular brand in Cambodia and GLF has enjoyed a virtual monopoly because it has the exclusive rights to arrange financing for all Honda sales.

GLF also enjoys a virtual monopoly in the leasing of Kubota agricultural machineries in Cambodia where there is also huge growth potentials for this business since only about 20% of the total agricultural-machinery market is conducted through financing while the remaining major part of 80% is also cash-based. Meanwhile, the financing of solar panels is still a relatively new business and as such, there appears to be massive growth potentials.

The new alliance with the 5,000 True Money agents, Mr. Tatsuya noted, will accelerate the sales of solar panels in particular.

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15 August 2016 : GL Q2 Profits Nearly Doubles from Last Year

GL Q2 Profits Nearly Doubles from Last Year

15 Aug 2016

Thanks to very strong performance both in Thailand and particularly in Cambodia and Laos, SET-listed digital finance firm Group Lease Public Company Limited (GL) has reported a staggering 255.85 million baht profit in the second quarter this year which nearly doubles from the same period last year.

The Q2 numbers are a new record high and represents the seventh consecutive quarterly new record-high profits. Given the positive economic outlook in Thailand and the region – plus the fact that GL’s new subsidiary in Indonesia, PT Group Lease Finance Indonesia (GLFI), has started operations — senior management has expressed confidence that the company will be able to continue the momentum of making new quarterly record-high profits well into the future.

“We had made projections in the past that our net profits of more than 500 million baht last year will double to 1 billion baht this year,” stated GL’s Executive Committee chairman Tatsuya Konoshita. “We are now quite confident that we will be able to achieve that.” Adding the 222.17 million baht net profits in the first quarter this year to the latest numbers, total profits in the first half-year period amounted to 478 million baht.

The 255.85 million baht Q2 net profits was 97.6% more than the 129.47 million baht net profits in the same quarter last year. Of the latest number, roughly 105 million baht came from the Thailand operations (representing about 17% growth) while the remaining 150 million was contributed from GL’s operations in Cambodia and Laos.

Mr. Tatsuya noted that the estimated 120 million baht profit from Cambodia was particularly outstanding as it roughly tripled from the 40 million baht profits in the same period last year. Meanwhile, GL Laos and Thanaban contributed about 15 million baht profits each in this quarter. GL Laos has been operating since September last year while Thanaban in Thailand was acquired by GL in 2014.

Mr. Tatsuya explained that although Laos is a small country, it will significantly make roughly 10 million baht profits contribution per month from within this year. “In Laos, we are by far the top market leader in the financing of Kubota agricultural machineries and motorcycles,” he said.

Since the operations in Indonesia are just starting, Cambodia will remain the star performer of the GL group in the foreseeable future. Mr. Tatsuya noted that the performance of GL Finance (GLF, the Cambodian subsidiary) in Q2 could have been much better if it had not been for the slowdown of motorcycle sales caused by the implementation of a 10% Value Added Tax (VAT) and the negative impact of a drought similar to that in Thailand.

The Cambodian government has been charging the VAT for a long time but only began strictly enforcing it for motorcycle sales in April this year which has caused some market disruptions. But after the initial adjustment, the market situation has now returned to normal while the drought was also over.

“Therefore, we expect strong recovery in the Cambodian market – and hence our performance there – in the third quarter and thereafter,” Mr. Tatsuya stated. Through a cost-effective and highly efficient digital finance platform developed by itself, GL has been very successful in expanding the financing business for HONDA motorcycles, Kubota agricultural machinery and extending loans for small and medium enterprises (SMEs). The same digital finance platform has now been adopted in Laos and Indonesia making the Lao operations profitable only after four months after the launch of business.

Meanwhile, Mr. Tatsuya stated that the Indonesian business looks highly promising. From its ‘test’ Point of Sales (POS) in southern Sumatra, GLFI signed two contracts for the leasing of agricultural machinery on July 25, the first day when the company formally commenced operations in Indonesia, while also receiving 12 loan applications on the same week.

“This is a very promising start,” Mr. Tatsuya said. The latest entry into the Indonesian market marks an important turning point that will support the company’s next phase of major expansion because of the huge business potentials from Indonesia’s over 250 million population. “We are the financial specialist for rural areas and much of Indonesia is rural because it has about h12,000 islands,” Mr. Tatsuya said. GL Chairman and Chief Executive Officer Mitsuji Konoshita has stated before that the Indonesian market will be ten times the size of the Cambodian market.

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11 August 2016 : To inform the exercise date of GL-W4 (no.1)

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02 August 2016 : Rocket Start Kick Off of GLF Indonesia.

Rocket Start Kick Off of GLF Indonesia.

02 Aug 2016

PT Group Lease Finance Indonesia(GLFI), a subsidiary of Group Lease PCL(GL) “Digital Finance company” in Indonesia achieved first contract in agriculture machine finance service on 25th of July 2016.

GLFI kicked off its business based on ARFC (ASEAN Regional Finance Company) vision to expand its “Digital Finance” to provide various products on its platform throughout ASEAN Market. The first contract was made at the official dealer of KUBOTA who is also a big and strong business partner in Cambodia.

In detail, the first contract was made at Lampung province in Sumatera Island. After that, GLFI had actually made 2 contracts on the first day and got 12applications within the first week. It was the first and trial week. The numbers of application as 1 POS are clearly out performed and above expected as first week.

In detail, the first contract was made at Lampung province in Sumatera Island. After that, GLFI had actually made 2 contracts on the first day and got 11 applications within the first week. It was the first and trial week. The numbers of application as 1 POS are clearly out performed and above expected as first week. The feedback made our managements satisfied and pleased to inform all our investor with full of confidence on our Rocket Start in this huge market with 230million population. GL stepped into the Rural Area of Indonesia which have 200million population with the Rocket Start which will be far faster growth than the successful achievements in Cambodia and Laos. Also, GLFI opened 2 more POS (Point of Sales) within the week.

Republic of Indonesia was composed of various sized 13,466 islands but GLFI will expand its business throughout nation especially focusing on rural areas where GLFI has a strong competence. GL group will make a big role in supporting economic growth and improvement of living standards in ASEAN region through its “Digital Finance Business”.

Find attached pictures below for first contract and delivery moments.

First customer for GLFI (PT Pilar Putra Teknik, Metro)

GLFI manager and dealer owner (PT Pilar Putra Teknik, Palembang)

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25 July 2016 : Mr. Tatsuya Konoshita (Chairman of Executive Board and Director) on Money Talk Weekly

Mr. Tatsuya Konoshita (Chairman of Executive Board and Director) on Money Talk Weekly

25 Jul 2016

Mr.Tatsuya Konoshita, GL chairman of executive committee, was interviewed with Thai language on Money Channel that aired on Friday, May 20, 2016. We are pleased to offer this program.

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12 July 2016 : New Major Expansion for GL in Indonesia

New Major Expansion for GL in Indonesia

12 Jul 2016

Now that the official license has been granted by the Indonesian authorities (OJK), SET-listed digital finance firm Group Lease Public Company Limited (GL) is embarking on a new, major expansion in Indonesia which is expected to support substantial growth both in terms of revenue and net profits over the next five years.

“Our Indonesian operations will kick off to a ‘rocket start’ because we have been waiting for the license for a long while and, in the process, have been making the various necessary preparations,” GL’s Executive Board Chairman Mr. Tatsuya Konoshita stated.

Spearheading the Indonesian operations will be PT Group Lease Finance Indonesia (GLFI), a joint venture between Group Lease Holdings PTE. Ltd. (GLH, a GL subsidiary based in Singapore which holds 65%), J Trust Asia (JTA, GL’s strategic partner which subscribes to GL’s latest batch of US$130 million convertible debentures, holding 20%) and local Indonesian partners holding the remaining 15%.

Mr. Tatsuya projected that the Indonesian operations will enjoy profit margins higher than that in Thailand and Cambodia and will turn profitable in a very short period – thanks to a new, fees-based model where GLFI will charge fees and commission from various lines of consumer financing it manages while its partner J Trust Bank (Indonesia), through its local network of 62 branches, provides the funding and is responsible for any NPLs.

Mr. Tatsuya added that GLFI will focus on agricultural machinery, second-hand motorcycles, assets-backed loans (such as cars and motorcycles), white goods (various types of electrical appliances) and solar panels. GLFI also plans to expand into new areas of financing for low-income people such as housing finance and household refurbishments. Since all preparations are ready, the company expected to sign the first client for agricultural machinery within this month.

Out of its base in Thailand, GL has been expanding successfully into the neighboring countries of Cambodia and Laos. Of the 222 million baht net profit in the first quarter this year, more than half or about 120 million was contributed from operations outside Thailand the bulk of which from Cambodia.

GL has attached a great deal of importance to the Indonesian business which represents a new phase of major expansion. GL Chairman & Chief Executive Officer Mr. Mitsuji Konoshita has stated that the Indonesian market, with its more than 250 million population, is ten times the size of the Cambodian market. “Significantly, about 70% of the Indonesian market is still untapped by anybody,” Mr. Mitsuji stated.

The digital finance platform that GL has successfully developed in Cambodia will now be implemented in Indonesia. According to Mr. Tatsuya, the fees-based model in Indonesia will bring net profit margin of more than 40% which is significantly higher than in Cambodia and Thailand.

GLFI is now projecting net profit for the first full year of operation in 2017 to top 120 million baht and, according to Mr. Tatsuya, profits from the Indonesian operations are projected to balloon to ten times the profits in Cambodia in five years’ time.

An extraordinary meeting of GL shareholders last month approved the issuance of US$ 130 million convertible debentures for JTA plus 170 million warrants (GL-W4) for GL shareholders. Carrying a conversion price of 40 baht each for both the debentures and warrants, the new funds that are being raised will be used to finance expansion in GL’s existing markets of Thailand, Cambodia and Laos as well as other markets in Southeast Asia and elsewhere. Funding in Indonesia will come from J Trust Bank (Indonesia) which can mobilise deposits from the local Indonesian market.

The GL Chairman Mr. Mitsuji stated recently that volatilities in regional financial markets as a result of Brexit would present good opportunities for mergers and acquisitions (M&As) since companies that are potential takeover targets will now become cheaper.

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04 July 2016 : explanation for correct understanding- share hold by JTrust

explanation for correct understanding- share hold by JTrust

04 Jul 2016

Dear Investors

Regarding to our strategic partner and shareholder of us, Group Lease Public company limited, JTrust ASIA PTE LTD.(JTA), the SET website will not show their name on the name of JTA itself since JTA will transfer their share into custodian service and in the SET system it shows as the custodian name.

It may confuse investors so we inform all the investors about this.

JTA is a company in the Group of companies of J Trust company limited which is a listed entity in Tokyo Stock exchange and one of the subsidiary is J Trust Bank which is our strategic business partner sharing an extra huge ambition of business expansion together in Indonesia with `Digital Finance` business model.

Even SET web site will not show JTA name, in fact JTA still hold 6.43% stakes, as same numbers of stocks as they converted without selling even 1 share of them. Using custodian service is a normal practice all over the world and not showing the name of the owner is normal in SET system. We confirm our valuable investors again that JTA never have any intention to sell the GL share at all and our strong relationship remain unchanged. Actually when we had issued Convertible Debenture to JTA, the contract state that JTA must hold all the shares at least 2 years.

Today we had already contacted to JTA again and make this announcement for them. JTA would like to confirm to the investors that JTA is GL’s strategic partner to expand our new, original and innovative business model ‘Digital Finance’ to the world and JTA had never sold their shares and have no intention to sell at all.

Regarding to this announcement please see below PR from us on 10 June 2016, too.

URL: http://gl.listedcompany.com/news.html/id/531876

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27 June 2016 : Brexit Presents New Opportunities for GL

Brexit Presents New Opportunities for GL

27 Jun 2016

SET-listed digital finance firm Group Lease Public Company Limited (GL) expects new opportunities for mergers & acquisitions (M&A) in the regional markets and elsewhere as potential targets for takeover become “cheaper” because of sharp volatilities in the financial markets triggered by Brexit.

“There are always opportunities in any crisis,” asserted GL Chairman and Chief Executive Officer Mitsuji Konoshita. “Financially we are very strong. Our debt-to-equity ratio is only 0.5 and we are raising a lot of new funds. This is great for a crisis situation (like this),” he added.

Mr. Konoshita stated that there had been many offers in the past for GL to take over financial-services companies in the region but negotiations were inclusive because “they were too expensive”. But given the sharp volatilities in the financial markets triggered by Brexit, he expected that the prices for potential takeover targets would be cheaper now.

The GL boss is eyeing the M&A opportunities in Indonesia, Vietnam and Sri Lanka which are large markets for GL’s successful model of digital financing and carry enormous growth potentials into the medium- and longer-term future.

From a simple motorcycle-leasing company based in Thailand, GL has in recent years successfully expanded to Cambodia and Laos as it develops an efficient digital finance platform and expands its consumer-finance portfolios to cover agricultural machineries, solar panels and electrical appliances. It is set to launch new expansion into Indonesia shortly.

The new opportunities for M&A presented by Brexit has come after GL’s shareholders last week gave their consent for the company to issue 170 million warrants (GL-W4) which will be allocated to shareholders at the ratio of 9:1 (9 shares for 1 free warrant) at the exercise price of 1 warrant for 1 share for 40 baht over a two-year period.

Last week’s Extraordinary Shareholders Meeting (EGM) also approved the issuance of up to US$130 million convertible debentures for GL’s strategic partner J Trust Asia (JTA). The new funds from the convertible debentures and conversion of warrants will be used to finance expansion in GL’s existing markets of Thailand, Cambodia and Laos as well as other new markets in the Southeast Asian region and elsewhere.

Meanwhile, Mr. Konoshita reaffirmed that JTA has not sold any GL shares and would remain GL’s strategic partner as both groups join forces to expand their mutually-beneficial business in Indonesia and other ASEAN markets.

The clarification was necessitated after misunderstanding among some investors that JTA might have sold some GL shares after converting their first batch of US$30 million worth of debentures at the end of last year when JTA was listed as holding 98.1 million shares or equivalent to 6.43%.

The misunderstanding was caused recently when SET’s website listed JTA’s holdings as only 4.82% or amounting to 73.575 million shares. The difference, in fact, has been held by the Custodian.

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10 June 2016 : Regarding to the share hold by JTrust asia

Regarding to the share hold by JTrust asia

10 Jun 2016

On 9th of June SET website had started to show JTrust ASIA PTE LTD.(JTA), our strategic partner who had converted their CD into stocks at the end of year 2015 as a shareholder. It shows that JTA hold 4.82 % while they had converted CD equivalent to 6.43%. So we think some of investors may be confused on this announcement.

In fact JTA still hold 6.43% stakes, as same numbers of stocks as they converted without selling even 1 share of them. A part of stocks are under custodian service as nomal practice.

Today we had already contacted to JTA and make this anouncement for them. JTA would like to confirm to the investors that JTA is GL’s strategic partner to expand our new, original and innovative business model ‘Digital Finance’ to the world and JTA had never sold their shares and have no intention to sell.

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23 May 2016 : GL & J Trust Join Forces, Expanding Digital Finance to Indonesia

GL & J Trust Join Forces, Expanding Digital Finance to Indonesia

23 May 2016

SET-listed Group Lease Public Company Limited (GL), the pioneer of Digital Finance in ASEAN, has formed a solid alliance with the Japanese financial group J Trust to expand the efficient and cost-effective digital financial services to the huge Indonesian markets and elsewhere in the region.

The alliance was cemented after GL’s Board of Directors last week decided to issue US$130 million worth of convertible debentures in a private placement for J Trust Asia (JTA), a subsidiary of J Trust in Japan. This is the second batch after the first batch of US$30 million in May last year which was fully converted by JTA into GL shares at the end of last year.

J Trust is a Japanese financial group listed on the Tokyo stock exchange. Among other things, it owns the J Trust Bank, an Indonesian bank which has a local network of 62 branches.

“Our alliance with J Trust is a strategic partnership that is mutually beneficial,” stated GL Chairman and Chief Executive Officer Mitsuji Konoshita. “J Trust Bank can raise the funds locally with their deposits license while GL can manage the funds by lending to our local Indonesian clients in very efficient ways by using our unique ‘digital finance’ methods,” he added. “It’s a perfect collaboration between Bank and Finance.”

Explaining that the Indonesian business model is a “channelling” fees-based model, Mr. Konoshita said GL will not do motorcycle leasing but will diversify into agricultural machineries, solar panels and electrical appliances which are already implemented in Cambodia and being expanded to Laos. In addition, Mr. Konoshita expected to expand financing to cover areas that relate to the improvement of local Indonesians’ quality of life such as house renovation, farms improvement and inventory financing.

GL expects the Indonesian operations to turn profitable in a short period. The local joint venture company – GLFI, in which GL holds 65%, JTA holds 20% with the remaining 15% held by local Indonesian partners – is now awaiting a license from the Indonesian authorities and operation is expected to commence in this quarter.

Meanwhile, J Trust Chief Executive Officer Mr. Nobuyoshi Fujisawa also expressed confidence that the GL-J Trust alliance is a win-win partnership for both sides as they join forces to expand to the Indonesian and other regional markets.

Aside from the convertible debentures, the GL Board also decided to issue 170 million warrants (GL-W4) for shareholders at the ratio of 9:1. The warrants carry a two-year period while the debentures have a five-year maturity but both carry the same conversion price of 40 baht each. An Extraordinary Shareholders Meeting (EGM) has been scheduled for June 24 to give the final approval before both issues become effective.

GL will effectively raise more than 10 billion baht in new funds if the holders of the warrants and convertible debentures exercise all their conversion rights. The new funds will be used to support a major expansion in Cambodia, Laos. Indonesia and other new regional markets over the next 2-3 years.

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