Category: Press Releases

Categories
Press Releases

28 August 2017 : Pre-payment by GL’s Cyprus Borrowers

Pre-payment by GL's Cyprus Borrowers

28 Aug 2017

As part of its effort to improve credit risk management, SET-listed digital finance firm Group Lease Public Company Limited (GL) has secured the pre-payment of loan principals and accrued interests totaling US$13.6 million or 453.2 million baht from its Cyprus borrowers.

In an official filing with the Stock Exchange of Thailand (SET) today (August 28), GL said the pre-payment comprised of three loan agreements with Cyprus-based Adalene Limited with total principals amounting to US$13.13 million (436.9 million baht) plus accrued interests of US$489,158 (16.3 million baht). The pre-payment was made with GL Holdings (GLH), GL’s wholly-owned subsidiary in Singapore.

As a result of the pre-payment, a pledge of 11.5 million GL shares made with GLH has been released.

Following the pre-payment, the remaining outstanding principals of the Cyprus borrowers now amounted to US$16.5 million or 547.5 million baht plus accrued interests of US$326,202 or 10.8 million baht. The Cyprus borrowers included Adalene Limited and AREF Holdings Limited.

According to Mr. Tatsuya Konoshita, chairman of GL’s executive committee, the pre-payment of the Cyprus loans was made in the best interest of GL since the principals were paid earlier but the pre-payment included all interests until September 30.

“GL is currently expanding into the high-potential Myanmar market with higher interest rates of more than 40% as compared to the average 15% from the (Cyprus) borrowers. We have already begun to shift the new funds to support our business expansion in Myanmar,” Mr. Konoshita stated.

For the remaining outstanding Cyprus loans of US$16.5 million, GL now has secured collateral value of US$23.7 million or a collateral coverage ratio of 144%.

Meanwhile, GL’s remaining outstanding loans to another group of SME borrowers in Singapore amounting to US$39.6 million are covered by collateral value of US$48.8 million or representing a coverage ratio of 123%

Mr. Konoshita noted that there are now no longer any GL shares in the collaterals from both the Cyprus and Singapore borrowers. He added that these loans have been secure, with no overdue from the beginning until now.

“The (Cyprus and Singapore) borrowers have enough ability to pay as GL has stated in the past,” he added.

Categories
Press Releases

24 August 2017 : Clarification on news regarding one of the Company’s major shareholders which is not related to the Company’s operation

Categories
Press Releases

15 August 2017 : GL Q2 Profits Hit New High

GL Q2 Profits Hit New High

15 Aug 2017

SET-listed digital finance firm Group Lease Public Company Limited (GL) has reported a 337.69 million baht net profit in the second quarter this year, up 31.70% from the same period last year, representing the 11th consecutive quarter of new record-high profits.

“The Q2/2017 profits have resulted from steady improvements in all the markets in which we operate,” stated Mr. Tatsuya Konoshita, chairman of GL’s executive committee. GL’s corporate footprint now covers a total of seven Asian markets, including its home base in Thailand, neighboring Cambodia, Laos, Myanmar, Singapore, Indonesia and Sri Lanka.

In an official filing with the Stock Exchange of Thailand (SET) today (August 15), GL said its consolidated hire purchase interest income stood at 525.89 million baht, up 33.61 million baht or 6.83% from the same period last year, due mainly to increases in interest income from its subsidiaries in Cambodia and Laos by 14.86 million baht and 13.18 million baht respectively.

The Thailand-based operations, particularly by GL’s subsidiary Thanabun, have also seen significant improvement. Interest income from assets-backed loans (where borrowers pledge their motorcycles as collateral) rose 12.41 million baht or 46% to 39.37 million baht. The bulk of this increase or 12.02 million baht was accounted for by Thanabun while the remaining small portion of 0.39 million baht came from GL’s Cambodian subsidiary which just launched this new product in Q2/2017.

The filing pointed to Micro-finance as a successful new product launched by GL’s subsidiary in Myanmar which for the first time generated interest income of 6.22 million baht in Q2/2017. This new product consists of an average 50-week micro loans made to women in groups of five members each collectively responsible for each other’s repayment on a weekly basis. The micro loans were considered very successful because they carried 0% NPL.

Another highlight of the Q2/2017 results was 12.18 million baht worth of “consumer finance interest income” derived from GL’s joint venture with its strategic partner JTrust Asia (JTA) in Indonesia.

Established last year, the multi-finance joint venture, PT Group Lease Finance Indonesia (GLFI) is a fees-based operation engaged in marketing, credit screening and collecting loan claims targeting agriculture-related equipments and motorcycles while the financing is provided by PT Bank JTrust Indonesia, a banking subsidiary of GL’s strategic partner the J Trust Co. which is listed on the Tokyo Stock Exchange.

While GL considers Myanmar as a high-growth market, Indonesia is seen as carrying even more substantial growth potentials because of its huge population of more than 250 million. J Trust Co. President & CEO Nobuyoshi Fujisawa stated recently that the Indonesian joint venture will grow to become GL’s largest portfolio and biggest profits contributor over the next 2-3 years.

Meanwhile, interest on loans to SME borrowers in Singapore and Cyprus in Q2/2017 totaled 125.99 million baht, up 8.88% from the same period last year.

GL booked a 36.73 million baht profit share from its 29.99% investment in Commercial Credit & Finance (CCF) in Sri Lanka in this quarter, which marks a drop of 24% from the previous quarter, largely because of a two-week national holidays in April in that country during which interests on loans to CCF’s clients were exempted.

According to Mr. Konoshita, the latest record-high profits were achieved in spite of higher administrative expenses and legal fees that were incurred because of GL’s aggressive overseas expansion in this quarter. These expenses totaled 271.89 million baht in this quarter, or 25.12% increase from the same period last year.

“However, the service and administrative expenses grew at a slower rate than revenue, reflecting cost-effective management,” the SET filing stated.

Operations in Cambodia and Thailand still constituted GL’s main businesses, accounting for 49.3% and 45.3% shares respectively of its total outstanding portfolio of 10,246 million baht while Laos, Myanmar and Indonesia accounted for 3.7%, 1.1% and 0.7% respectively.

Categories
Press Releases

10 August 2017 : GL Finance Indonesia and TATA Motors Distribusi Indonesia Reach Agreement for GL to Become the Recommended First Choice for TATA

GL Finance Indonesia and TATA Motors Distribusi Indonesia Reach Agreement for GL to Become the Recommended First Choice for TATA

10 Aug 2017

TATA Motors Distribusi Indonesia (TMDI) and GL Finance Indonesia (GLFI) are pleased to announce they have reached an agreement for GLFI to become the Recommend First Choice financial company for TMDI dealers in Indonesia. TMDI dealers will provide showroom space for GLFI and TMDI, TMDI dealers, and GLFI plan to work together to jointly increase brand awareness.

TATA Motors Indonesia was established in December 2011 as a fully owned subsidiary of Tata Motors and launched its commercial operations in September 2013. Since its launch, TATA Motors Indonesia has rapidly grown and become one of the key automotive brands in Indonesia. GL Finance Indonesia (GLFI) is a direct subsidiary of Group Lease PCL in Thailand, a leading leasing company quoted on the Thailand Stock Exchange. GLFI began its commercial activities in Indonesia in 2016.

 

Categories
Press Releases

08 August 2017 : BGMM Received Approval for Expansion in 4 New Regions and 2 New States in Myanmar

BGMM Received Approval for Expansion in 4 New Regions and 2 New States in Myanmar

08 Aug 2017

The microfinance market and BGMM continue to grow in Myanmar. BGMM had 3 branches in February 2017 when it was acquired by GL. Branches allow BGMM the ability to disburse loans and collect repayments locally, which is critical in microfinancing. To continue BGMM’s growth, we are pleased to announce BGMM recently received approval to begin operations in 4 new regions and 2 new states: Ayeyarwaddy, Kayah, Mandalay, Magway, Shan, and Tanintharyi. We look forward to beginning operations in these areas and expect BGMM to continue to grow as the Myanmar microfinance market is still expanding and BGMM continues to expand throughout Myanmar.

Categories
Press Releases

05 July 2017 : Renewal of Exclusive Agreement with HONDA NCX to Boost HONDA’s Sales in Cambodia

Renewal of Exclusive Agreement with HONDA NCX to Boost HONDA's Sales in Cambodia

05 Jul 2017

The First and Biggest Financial Lease company in Cambodia GL FINANCE Plc. (GLF), a subsidiary of Group Lease PCL listed on the Stock Exchange of Thailand, renews its exclusive agreement with N.C.X. CO., LTD (Honda NCX), the leading Honda motorcycle assembler and distributor in Cambodia, marking another milestone for a stronger exclusive partnership and forecasting increased new Honda motorcycle sales via GLF’s financial lease services on top of already strong Honda motorcycle cash sales . This new Exclusive Agreement follows the first exclusive agreement between GLF and Honda NCX officially executed in 2012.

Digital Finance Company GLF was established in Cambodia in 2012 and became the First Financial Lease Company to provide financial leasing services in the country and was also the first overseas subsidiary of GL Group. Subsequently, GLF had expanded its presence to all Honda dealers all over Cambodia and now dominates the rural market. Under the exclusive partnership with Honda NCX, GLF is the only finance company that provides finance services on Honda motorcycles to Honda NCX’s customers at any Honda dealership in the country. GLF will continue to work closely with Honda NCX ranging from strategic setting to co-marketing in order to enhance mutual growth.

Having its services available at throughout the country through its more than 5,000 GL own Agent Dealers and using the most cutting-edge GL Digital Finance Application, GLF aims to boost its market shares, expands its portfolio upon this new Exclusive Agreement and continue to provide better access to financial leasing services to all Cambodian people, regardless of their occupation. GLF confidently predicts both growth in Honda motorcycles sales and grow in the percent of those sales financed through leasing. Honda has seen exponential growth which shows no sign of slowing and is bringing Honda’s market share in line with other ASEAN markets and the motorcycle market overall has seen a relatively low rate of penetration and as motorcycles ownership increases, Honda is positioned with GLF to dominate the market.

HONDA NCX, with an industry market share of 95%, is the market leader of Motorcycle industry in Cambodia, exclusively providing all Honda motorcycles to the Cambodian people. Honda motorcycle sales are expanding from an estimated 300,000 new sales in 2017 to more than 500,000  sales annually within 5 years, due in part by Honda’s strong financial support from GLF.

Officially signed on 26th June 2017 between GLF and Honda NCX, the new exclusive partnership is expected to energize and reinforce the strong relationship between Honda NCX and not only GLF but also GL group for beneficially mutual business growth. This agreement execution marks a robust relationship between GL and Honda NCX in Cambodia, Laos and Myanmar with huge expectation of potential GL’s regional uplift beyond Asia. GL Group has been expanding rapidly in the last few years and is currently operating in 7 Asian countries including Exclusive Agreement with HONDA NCX in Myanmar.

Categories
Press Releases

09 June 2017 : Clarification of News or Information

Clarification of News or Information

09 Jun 2017

In response to the letter from the Office of Securities and Exchange Commission of Ref: KorLorTor.Por.Sor.935/2560 dated 2 June, 2017, which inquires in relation to the proceedings conducted by foreign supervisory agency, with this letter, I, Mr. Mitsuji Konoshita, would like to provide facts and information to the SEC and the investors as follows:

1. On 1 November 2013, the Japanese Securities and Exchange Surveillance Commission (“SESC”) recommended to the Japanese Financial Services Agency (“FSA”) to order an administrative monetary penalty to me for the reason of the act of using fraudulent means regarding the securities in Japan in 2010 (“Recommendation”). On the same day, FSA made a decision on commencement of trial procedures corresponding to the Recommendation. The “trial procedures” above is not judicial procedures of criminal or civil but administrative procedures and was held at FSA.

2. On 11 April 2017, FSA made the decision ordering myself to pay to the national treasury an administrative monetary penalty (“FSA Decision”), citing the following main reasons for its decision. This decision was made not by a judicial court but only by FSA.

a) I had the purpose of pumping up the prices of the securities of Wedge Holdings Co., Ltd. (“Wedge”);

b) I directed Wedge to make disclosures which contained false information that stated that Wedge would expect an acquisition of A.P.F. Hospitality Co., Ltd. (“APF HOS”), a holding company of Zeavola Resort, as well as the increase in investment profits such as interest income though in fact Wedge could not expect those mainly for the reason of that the payment to be made for the debentures issued by APF HOS to Wedge (“Debentures”) was disguised by transferring funds less than its payment amount;

c) I created and carried out the plan of funds transfers for the payment made as above; and

d) the prices of the securities of Wedge were pumped up by the series of the acts above.

3. On 11 May 2017, I filed a complaint “Heisei 29 (Gyou wa) No. 218” to Tokyo District Court against the State claiming to cancel the FSA Decision. This case is a civil case (any criminal case had never been pended) and will start from a first tier. The complaint states that the FSA Decision has no ground for the reasons mainly as follows:

a) the payment of the Debentures was actually made by Wedge;

b) I did not control funds transfers since there was no fact or evidence showing that I controlled each of funds transfers;

c) I never aimed to pump up the share price of Wedge and it is easily understood that I did not sell but rather decided to subscribe shares in Wedge by a company of which I seated a representative director after share price rose up;

d) I had never controlled Wedge or APF HOS to have the relevant transactions or never made any disclosure of Wedge since there were the other responsible people in both companies engaged in the said transactions and disclosures relatively which were done by themselves, and there was no fact or evidence showing that I controlled Wedge and APF HOS and made or procured someone to make the relevant disclosures; and

e) the disclosures mentioned in the FSA Decision never affected share price of Wedge.

4. The first trial date of the case as described in 3. above will be held at Tokyo District Court on 14 July 2017.

5. On 14 March 2017 which I was interviewed, I was not subject to an order to pay a fine or administrative monetary penalty. Such administrative monetary penalty which is not a criminal fine was issued on 11 April 2017 which is after that. In addition, I was not sued by any authority, but I am the one who filed the case in May 2017. Therefore I would like to confirm that I had no intention to give any false statement or inaccurate information in order to mislead the investors or the SET at all

6. The FSA Decision has no impact on Group Lease Public Company Limited (“GL”) and GL’s businesses since the FSA Decision was made directed at me, not at GL, the companies in GL’s group or Wedge (a shareholder of GL). Therefore, the administrative monetary penalty will not be paid by GL, the companies in GL’s group or Wedge and for that, GL, the companies in GL’s group or Wedge will not be financially affected. Additionally, the transactions questioned in the FSA Decision were not made or involved by GL, the companies in GL’s group or Wedge.

Sincerely yours,
(Mr. Mitsuji Konoshita)

Categories
Press Releases

30 May 2017 : IT donation to Association of Persons with Physical Disability International

IT donation to Association of Persons with Physical Disability International

30 May 2017

On May 30, 2017, Group Lease Public Co., Ltd. and Thanaban Co., Ltd. (subsidiary company) donated IT devices to Association of Persons with Physical Disability International to enhance capability of disabilities.

Categories
Press Releases

15 May 2017 : GL Reports Impressive Q1 Results

Press Releases

15 May 2017

Fast-growing SET-listed digital finance firm Group Lease Public Company Limited (GL) has reported impressive profits of 327.36 million baht in the first quarter this year, up 47.35% from the same period last year, on the back of improved performance in Thailand and most of the other regional markets in which the group operates.

The Q1 profits represent a new record high for the tenth consecutive quarter, up from the 324.40 million baht net profits in the last quarter of 2016.

In an official filing with the Stock Exchange of Thailand (SET) today (May 15), the company also disclosed that GL Holdings (GLH, a wholly-owned subsidiary in Singapore) resolved in a Board decision on May 9 to pay a US$9.99 million (about 346 million baht) dividend to GL within May 17. The dividend should provide a significant boost to the company’s operating results in the current quarter.

Chairman of GL’s Executive Committee Mr. Tatsuya Konoshita noted that the Q1 results could have been better if it had not been for the large investment expenses incurred to jump-start businesses in the two high-potential markets of Indonesia and Myanmar. “It was in the early phase and developmental stage of New Countries and New Products, but our business operations in this quarter made historical high profits,” Mr. Konoshita stated.

Significantly, Mr. Konoshita said the Q1 financial statements were given a “clean” audit by the company’s auditor Ernst & Young. As GL’s management had stated before, there was no need for any provisions for bad loans to the company’s two groups of major borrowers in Singapore and Cyprus or for impairment of GL’s investment in the Sri Lanka-listed finance firm Commercial Credit & Finance (CCF).

There had been concern among some GL shareholders over the need to provide an impairment charge for GL’s 29.99% stake in CCF since CCF’s price on the Colombo Stock Exchange had fallen from the time of GL’s acquisition. But Mr. Konoshita stressed that this was not necessary since CCF is a highly profitable company and GL treats this as a long-term investment. GL fully consolidated about 55.5 million baht profit of profit from CCF in the Q1 results.

The CCF profit contribution made up about 20% of GL’s total Q1 profits while the bulk of the remaining 80% came from operations in Thailand and Cambodia with the three other markets of Laos, Indonesia and Myanmar making smaller contributions since operations there are still in an early stage.

Mr. Konoshita noted that Thailand operations are picking up after a slowdown for the past three years in accordance with company strategy. On the company’s mainstay of motorcycle leasing, average monthly sales had risen from about 4,100 units in the first quarter last year to more than 4,500 units in the same period this year despite April being full of holidays as the company has increased the number of motorcycle contract dealers.

The Thailand business is also enhanced by a new addition to the hhire purchase division for second-hand motorcycles which is taking off after being introduced on a trial basis over the past year.

Meanwhile, GL’s operations in Cambodia have slowed down somewhat due to a drought which has affected the local economy, but sales of Honda motorcycles, Kubota agricultural machinery and solar panels are expected to pick up this year in light of more plentiful rainfalls.

Aside from motorcycle leasing, the company has also introduced “Asset-backed Loans” type of business in Cambodia as a new line of business whereby clients who already own motorcycles obtain financing by using their vehicles as collateral, Group Loans in Indonesia as new products and by new subsidiary in Myanmar.

Mr. Konoshita is bullish on the long-term growth potentials of the Indonesian and Myanmar markets where the group’s operations are in the early stages of development.

While the sheer size of the Indonesian market (with a population of more than 250 million) offers enormous opportunities for various financial services, Mr. Konoshita is particularly upbeat on the prospect in Myanmar where GL recently obtained a five-year exclusive license to provide financing for Honda, similar to the exclusive deal for Honda in Cambodia.

The Myanmar market is estimated to be roughly one million motorcycle sales per year (more than three times the size of the Cambodian market), yet Honda currently only has a 10% market share or about 100,000 units since the brand entered the Myanmar market only recently. The bulk of the market is dominated by low-quality Chinese models. “This means there is plenty of room for growth as Honda increases its market share to more than 50% in several years, and GL is the only finance company which can provide the financing for this market,” Mr. Konoshita stated.

Categories
Press Releases

23 March 2017 : New Exclusive agreement with HONDA progress to Boost GL Sales in Myanmar

New Exclusive agreement with HONDA progress to Boost GL Sales in Myanmar

23 Mar 2017

SET-listed digital finance firm Group Lease Public Company Limited (GL) is forecasting a major boost to its new high potential business in untapped Myanmar through a new partnership with HONDA NCX, the exclusive distributer of HONDA motorcycle in Myanmar, that will significantly increase the sales of GL’s financial services via High Growth Dealers network of 100 places now spread out nationwide in Myanmar.

GL-AMMK Company Limited (GL-AMMK, GL’s Joint Venture subsidiary 57%-owned subsidiary in Myanmar with AMK group which is one of biggest retail products distributer in Myanmar) is newly established in February 2017th. “As a result, the new exclusive agreements, GL will be only 1 Finance company which could stay in the Honda’s Authorized dealers of New and 2nd hand motorcycles whole country of Myanmar. This will immensely boost up our marketing and sales expansion,” stated Mitsuji Konoshita, Chairman and CEO of GL.

Myanmar is an untapped High growth market for the GL Group. Mr. Kaname Hashimoto Managing Director of GL-AMMK mentioned. ‘Now the market size of Myanmar of new motorcycle is around 1 million unit of annual sales. Honda has only 10% share (around 100 thousand unit) currently, but its sales is growing more than 30% every year. Honda will be able to increase their market share to 60% at least within 10 years as we experience in all other ASEAN countries, Honda is outperformed always. I believe with confident.’

Mr. Hashimoto expected that the number of the dealer of Honda now are 103 now and it will increase rapidly. It was just early February to start its operation of GL- AMMK, and it had already opened test POS at 14 places. ‘We are opening very fast and will cover all of HONDA 103 dealers within 6 months.’

Calling it a win-win partnership, GL CEO Mitsuji Konoshita said: “There are 3 factors which make us so confident on our business expansion in Myanmar. 1 the market is now expanding rapidly, 2, Honda Market share will increase sharply since its quality of the motorcycles are far better than the Chinese motorcycles which are majority in the market now, 3, The competitors are still not expand yet since Myanmar is the place which development happened very recently.’

The GL-AMMK MD signed a term sheet with Mr.Myint Oo, Managing Director of NCX Myanmar Company Limited, in Yangon on March 23rd 2017 and the new partnership will become effective from April 2017.

AMK group is one of biggest retail products distributer in Myanmar and business partner of GL in Myanmar. This agreement execution shows strong and huge business partnership spreading throughout Asia developed by GL and becomes strategic move for expansion out of Asia.

From the right side

Mr. Aung Moe Kyaw (AMK Group）
Mr. Mitsuji Konoshita (Chairman, GL)
Mr. Myint Oo (Managing Director, NCX Myanmar co.,ltd.)
Mr. Nay Minh (Director, NCX Myanmar co.,ltd.)

LINK-GL Business group

Related Link

Copyright © 2021 Group Lease Public Company Limited. by . All rights reserved. | Sitemap