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10 March 2017 : As to SET requirements.

As to SET requirements.

10 Mar 2017

The stock Exchange of Thailand had issued a disclosure to ask information to Group Lease Public Company Limited on 2 points. First, details of Loan Receivables in our Financial statement and second, Corporate Governance. The company is willing to and ready to answer the regulators and will answer properly to SET stated today will finish before 13th of March 2017 in which date SET ask for the explanation.

To our shareholders and Investors, the management of the company would like to declare as follows:

– These businesses are normal, properly managed, profitable and have great chance to expand on our Digital Finance Platform.

– These are not new information and we had always show to the public in our Financial Statement every quarter already.

– This information was provided properly as complete set to our Auditor Ernst & Young Office Limited already before the audited Financial Statement year of 2016. And based on above these information, the Auditor provided the unqualified Opinion (so called clean opinion and best opinion), so Managements are quite confident that we are ready to provide such information.

– Since our Board of Directors and Audit Committee are quite active and have done 19 times BOD in the year of 2016. All information is always shared properly and discussed.

 

 

Thank you

 

Tatsuya Konoshita

Chairman of Executive Committee

Group Lease Public Co., Ltd.

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09 March 2017 : Posted presentation video related to Analyst Meeting on 09 March 2017

Posted presentation video related to Analyst Meeting on 09 March 2017

09 Mar 2017

Analyst Meeting was held on the 09th of March, 2017, at Sarocha Room, Swissotel Le Concorde Hotel.

On the mentioned date, Chairman of Executive Committee, Mr. Tatsuya Konoshita clarified the concern over business transaction completed in Singapore and Cyprus.

Please refer to the following video on that day

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08 March 2017 : Explanation news on Khao Hoon newspaper

Explanation news on Khao Hoon newspaper

08 Mar 2017

Dear Investors,

With Regards to News on Thai economic newspaper, Khao Hoon, dated March 8th 2017, we have received many inquiries from our shareholders, market participants and business partners.

The news on Khao Hoon dated March 8th 2017 is inaccurate and “fabricated fact” based on speculation.

Based on the confirmation of the above matters, we’ll demand a retraction of the news and print an apology on the newspaper to Khao Hoon.

 

Thank you.

 

(Mr. Tatsuya Konoshita)

Chairman of Executive Committee

Group Lease Public Company Limited

 

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06 March 2017 : GL Clarifies Dealings in Singapore and Cyprus

GL Clarifies Dealings in Singapore and Cyprus

06 Mar 2017

The senior management of SET-listed digital finance firm Group Lease Public Company Limited (GL) has given assurance that the 3,477 million baht worth of loans and accrued interests as at the end of 2016 were extended to GL’s trusted long-time partners who are dealers in various products and services for which GL provides financing to end consumers.

“These are loans given to the dealers of motorcycles, agricultural machineries, solar panels and various electrical appliances. Many of them are our business partners who have also become our shareholders. They are trust-worthy,” GL chairman and chief executive officer Mitsuji Konoshita stated today (March 6, 2017).

He added: “What I care most is the relationship with our clients; we need to know the nature and requirements of their business. In this sense, it is perfectly reasonable and we are quite comfortable to extend the SME loans since most of our dealers have more than 3 years of relationship with us in leasing and other financing services.”

Mr. Konoshita issued the statement after some investors have raised concern about the transparency in the dealings following remarks by GL’s auditor in the 2016 financial statements. The statements referred to the loans and accrued interests in question which were extended to two groups of borrowers in Singapore and Cyprus who used a combination of GL shares and other assets such as real estate in Cyprus and Brazil plus government bonds as collateral.

The concern which circulated within some VI (value investors) circles was believed to be one of the factors behind the steep declines of GL share prices in recent days.

GL has been expanding aggressively from its home base in Thailand to neighboring countries in Asia by adopting its highly efficient and low-cost digital finance platform to extend leasing services to large number of grassroots borrowers. On top of that, the company has also expanded its lending portfolios to cover the small and medium-sized dealers who supply the various products and services to the end consumers.

Loans to these SME dealers have helped boost the company’s profitability in recent years. The most recent financial results showed GL making a record-high profit of 1,062 million baht last year, which represents a whopping 82.34% increase from the year before.

Referring to another part of the auditor’s remarks about the “extension” of the repayment period of the SME loans, Mr. Konoshita stated that the loans were initially given on a three-month rollover period over one-year maturity. After the company became fully satisfied with the borrowers’ credit worthiness, then the repayment term would be extended to one-year rollover period over total 3-year maturity.

As for the question on why the transactions were done in Singapore and Cyprus, Mr. Konoshita said it was because the tax regimes in the two countries are favorable for such deals.

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28 February 2017 : GL Using Cyprus to Spearhead Expansion into Eastern Europe, Africa & Latin America

GL Using Cyprus to Spearhead Expansion into Eastern Europe, Africa & Latin America

28 Feb 2017

SET-listed digital finance firm Group Lease Public Company Limited (GL) has decided to set up an investments and financial services company in Cyprus to spearhead its expansion into Eastern Europe, Africa and Latin America.

Cyprus has been chosen as the springboard for GL’s global expansion because of its strategic location; it is a member of the European Union (EU) which is well known for its favorable taxation, legal and financial regimes making it ideal for GL to use as a center to raise funds and expand globally.

The strategic plan on global expansion came after GL has achieved historical-high profits of 1,062.82 million baht in 2016, which represents a whopping 82.34% increase from the year before. GL today (Feb 28) reported its 2016 audited financial statements to the SET, which were exactly the same as the unaudited numbers filed earlier.

“Our record-high profits, low D/E ratio of only one time and healthy balance sheets will help sustain our expansion globally,” GL chairman and chief executive officer Mitsuji Konoshita stated. The new expansion to Latin American is on top of earlier plans to expand to African and Eastern European countries.

Mr. Konoshita disclosed that GL has recently received a US$30 million credit line from one of the biggest banks in Brazil which can be used to support mergers and acquisitions or other financial services in Brazil or other countries in Latin America when the opportunities arise.

The flurry of overseas corporate activities underscore GL’s aggressive strategies to elevate itself into a world-class company after it has successfully expanded from its Thailand base into six other Asian countries namely Singapore, Cambodia, Laos, Myanmar, Indonesia and Sri Lanka.

Mr. Konoshita noted that GL has extended short-term investments and advisory services in Cyprus over the past two years on a trial basis before finally deciding to set up the new company there. “Now we are sure that Cyprus is the best place to do financial and investment services and even to raise funds globally to support our operations,” he stated.

Cyprus is a part of the European Union (EU) and the country is well-known as a center for the extension of investments and financial services into Eastern Europe and Africa because of its efficient taxation and legal regimes as well as favorable tax treaties with a lot of countries all over the world.

“We have decided to establish the investment and financial services company in Cyprus to accelerate our expansion into Eastern Europe and Africa as we have been contacted by many companies in those countries for collaboration in finance, leasing and micro finance services,” Mr. Konoshita stated.

He added that the Cyprus company will be set up shortly with an initial capitalization of about US$ 2-3 million.

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14 February 2017 : GLF get into contract with U.S. government agency, OPIC.

GLF get into contract with U.S. government agency, OPIC.

14 Feb 2017

~ securing debt facility from WorldBusiness Capital Inc. with a guarantee from OPIC~

“GL Finance PLC (Cambodia) is in the process of securing a $15 million senior debt facility from WorldBusiness Capital Inc(WBC 1). The facility will carry a guarantee from OPIC (*2)– a U.S. government agency based in Washington, DC. The loan application is presently in process and disbursement is expected to be completed towards Q2 of FY2017. All OPIC supported facilities require a US sponsor, and the investment from Creation Investments(*3) in Group Lease (Thailand) will act as a sponsor to this transaction. An OPIC supported facility will open doors for Group Lease to access additional financing in the future from OPIC as well as other Development Financial Institutions across the world.”

The main reasons for this tremendous opportunity are GL business is highly reviewed by OPIC and is recognized as helping development of people’s life and human rights. And also big supports from Creation Investments Capital Management who is a long term investor of Group Lease.

*1 WorldBusiness Capital, Inc. (WBC) is a commercial finance company based in Hartford, Connecticut, USA that offers flexible term loans helping businesses compete in the global marketplace. Founded in 2003, WBC is a direct lender staffed by multilingual professionals with many years of experience in cross-border trade and project finance and a proven track record of successfully closed loans around the world, in a variety of sectors. WBC focuses on lending to businesses in asset-intensive sectors such as manufacturing, distribution, logistics, transportation, agribusiness, food processing, packaging, renewables, equipment leasing, and commercial finance. Borrowers generally have annual revenue in the range of $10 million to $150 million. All borrowers must have some form of “U.S. affiliation”. WBC is an approved guaranteed lending partner of the Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution.

*2 OPIC mobilizes private capital to help U.S. businesses invest in emerging markets, catalyzing revenues, jobs and growth opportunities both in the U.S. and abroad. As of September 30, 2016, OPIC’s project portfolio totaled $21.5 billion.” OPIC achieves its mission by providing investors with financing, political risk insurance, and support for private equity investment funds, when commercial funding cannot be obtained elsewhere. Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers.

All OPIC projects adhere to high environmental and social standards and respect human rights, including worker’s rights. By mandating high standards, OPIC aims to raise the industry and regional standards in countries where it funds projects. OPIC services are available for new and expanding business enterprises in more than 160 countries worldwide.

*3 Creation Investments Capital Management is a private equity firm focused on financial services in emerging markets. Base in Chicago, the firm currently manages 15 platform investments in financial institutions across Latin America, South Asia, Southeast Asia and Eastern Europe. Through Creation’s portfolio companies, the firm serves over 7 million unbanked/underbanked individuals and small businesses with needed financial services totaling US $5 billion in loans outstanding. Creation’s investors include leading institutional investors and family offices dedicated to achieving attractive financial returns and social impact.

Creation is GL shareholder for 2 years already of GL and GL new CD(20MUSD) underwriter now.

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14 February 2017 : GL Q4/16 Profits Break New High

GL Q4/16 Profits Break New High

14 Feb 2017

Fast-growing SET-listed digital finance firm Group Lease Public Company Limited (GL) has posted net profits of 324.4 million baht in the three-month period ending 2016, which marks a new record high for the ninth consecutive quarter. Adding that to the 738.4 million baht profits in the first nine months of the year, all-year 2016 profits topped 1,062.8 million baht, which represents a whopping 82.34% increase from the year before.

The all-year 2016 profits, which exceeded the management’s target of 1 billion baht, reflected improved financial performance in all the markets in which GL operates, particularly in the two key traditional markets of Thailand and Cambodia.

Significantly, the Q4/16 profits also took into account, for the first time, profit contributions from the listed Sri Lanka finance firm Commercial Credit & Finance (CCF), in which GL acquired a 29.99% stake since late last year.

In spite of the record-high profitability in 2016, GL chairman and chief executive Mitsuji Konoshita declared that the group’s performance will be even stronger in 2017 because of a combination of organic growth and more mergers & acquisitions (M&A).

For a start, GL will be able to consolidate full-year profits from its 29.99% stake in CCF. “CCF has a very successful operation; the company is making more profits than previously projected,” Mr. Konoshita stated. CCF’s previous estimates of US$ 30 million net profits for 2017 have now been revised upward to US$ 32 million.

Sri Lanka aside, GL’s operations in Myanmar are taking off on a full scale this year after the group took over full ownership of a micro-finance firm BG Microfinance Myanmar (BGMM) and struck a strategic partnership with Myanmar whisky tycoon Aung Moe Kyaw who also owns Century Finance, a local finance firm licensed by Myanmar’s central bank.

According to Mr. Konoshita, BGMM which now operates more than 30 branches in various parts of Myanmar is expected to extend small-scale and group loans totaling US$ 50 million this year while another GL joint venture with Century Finance which focuses on providing “channeling” services (securing clients on a fees-based basis for Century Finance) is expected to lend about the same amount of US$ 50 million. If these targets are met, the two operations would generate total portfolios worth a combined US$ 100 million.

Meanwhile, GL Finance Indonesia (GLFI) is reported to be expanding aggressively after taking off late last year. Mr. Konoshita reckoned the Indonesian portfolio will top US$ 200 million this year, comprising of various types of consumer and micro financing loans. Being the largest market in ASEAN with more than 250 million population, GLFI is projected to make substantial profit contributions to the group in the years to come.

As for the Cambodian market which has surpassed Thailand to become the biggest profits contributor to the group, Mr. Konoshita expected that GL Finance (GLF, the group’s wholly-owned subsidiary in Cambodia) will roughly double its outstanding portfolio to about US$ 400 million by end-2017.

Cambodia has become the success story for GL. Through an exclusive franchise with Honda, the most popular motorcycle brand there, GLF has dominated the motorcycle leasing market and expanded to cover Kubota agricultural machineries and solar panels. GL’s IT team has also developed a highly efficient and cost-effective digital finance platform which is now being applied in all other GL markets.

The GL chairman maintained that with GL’s digital finance platform and its efficient IT system, the group can expand very fast to new markets. The group now operates in seven countries – namely Thailand, Singapore, Cambodia, Laos, Myanmar, Indonesia and Sri Lanka. Mr. Konoshita has announced earlier that it will expand to 13 new markets in Africa and Eastern Europe this year, bringing GL’s corporate footprint to cover a total of 20 countries.

The aggressive expansion plan is crucial to GL’s strategic goal to become a “global” company.

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08 February 2017 : GL donated to help flood victims

GL donated to help flood victims

08 Feb 2017

On February 8, 2017, Group Lease PCL. and its subsidiaries by Mr. Muneo Tashiro (Director and Chief Operating Officer) donated Baht 100,000 to help flood victims in southern parts of Thailand via The Thai Red Cross Society by M.R. Priyangsri Watanakun (Assistant Secretary General in Fund Raising & Director of Fund Raising Bureau) and Mrs. Janprapa Vichitcholchai (Deputy Director of Fund Raising Bureau)

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04 January 2017 : GL Expanding to 20 Countries in 2017

GL Expanding to 20 Countries in 2017

04 Jan 2017

In its quest to become a “global” company, SET-listed digital finance firm Group Lease Public Company Limited (GL) is embarking on another major expansion program in 2017 that will see its fast-growing model of digital-finance business extending from Asia to Africa and Eastern Europe. The target is to expand its corporate footprint from seven countries in Asia at present to 20 countries worldwide this year.

“Our model of digital-finance platform can apply to any countries. That is why we can expand very fast,” GL chairman and chief executive officer Mitsuji Konoshita stated. Having just returned from visiting South African, Mr. Konoshita said he saw enormous growth potentials in Africa as a whole as well as the emerging economies in Eastern Europe.

From its home base in Thailand, GL has expanded to six other countries in Asia – namely Singapore, Cambodia, Laos, Myanmar, Indonesia and Sri Lanka. According to Mr. Konoshita, the target this year is to expand GL’s type of consumer finance blending with IT business to 13 more countries in Africa and Eastern Europe, thus boosting GL’s total worldwide corporate presence to 20 countries.

Under Mr. Konoshita’s chairmanship, GL has been particularly successful in expanding to the booming markets in the ASEAN region in recent years. Aided by an efficient and cost-effective digital finance platform developed by GL’s own IT team, profits have continued to climb steadily.

The 260.41 million baht net profits in Q3 2016 marked the eighth consecutive quarter of record-high profits and raised total nine-month profits last year to 738 million baht. Given the continuous robust growth of the Cambodian market and the huge growth potentials of the relatively untapped market in Indonesia, senior executives are confident that quarterly profits will continue to break new records from here on.

GL’s shareholders in early December gave their consent to the company’s plans to acquire 29.99% of Commercial Credit & Finance PLC (CCF), a highly profitable finance company listed on the Sri Lanka stock exchange, and full ownership of BG Microfinance Myanmar (BGMM), a microfinance firm in the newly emerging and booming market of Myanmar.

These acquisitions – coupled with the recent entry into Indonesia, the largest market in ASEAN with more than 250 million population — were part of an aggressive expansion plan that GL’s senior executives described as the “Great Leap Forward”.

A combination of organic growth (such as the highly successful businesses in Cambodia and, more recently, Indonesia) plus mergers and acquisitions (such as the CCF and BGMM deals) will drive this new phase of major expansion.

Company executives are bullish on the CCF acquisition since it is a well-managed and highly profitable company. CCF has projected to generate net profits of US$22 million this year, rising to about US$30 million next year. Having completed the 29.99% acquisition of CCF, GL will start consolidating its share of the CCF profits in Q4 of 2016.

They are now projecting that profits in 2017 will further double from the anticipated 1 billion baht in 2016 – thanks to profit contributions from the recent acquisitions plus additional revenues from other existing operations in the region.

Looking ahead, GL’s chairman Mr. Konoshita said the “Great Leap Forward” strategy will see the company expanding its corporate outreach from Asia to Africa and Eastern Europe to pursue its quest to become a truly “global” company.

He added that he recently visited South Africa, the center of the African continent, and was very impressed by the economic dynamism there. Likewise, he also foresaw huge growth potentials in various emerging economies in Eastern Europe.

Unlike the traditional financial institutions which tend to focus on cities and developed urban areas, GL has specifically targeted the mass population in the rural countryside, or the grassroots people who have emerged from the poverty line and now can afford some modern amenities such as motorcycles, agricultural machinery or electrical appliances to improve their economic livelihood and quality of life.

By blending high-margin consumer financing with efficient but low-cost IT, GL has been able to score rapid business expansion with high profitability. The end objective is to become a global company serving some 2.5 billion clients.

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21 December 2016 : Message from Managements regarding the SET Index and Business Expansion

Message from Managements regarding the SET Index and Business Expansion

21 Dec 2016

Dear Investors,

In the last few days, we have been approached by a large number of investors including retail, local and foreign institutions, with questions on why ‘GL’ has been excluded as a constituent in the SET100 index following the release of semi-annual review by the SET last week. While we appreciate investors’ concerns, we are not in a position to respond on the matter. Such questions should be directed to the SET as the manager of SET indices.

It is almost needless to say that the exclusion of GL from SET indices does not impact our business in anyway. The company has been and continues to make rapid progress towards meeting our strategic goals. Such track record has contributed to its inclusion in the MSCI Thailand Small Cap Index (ranked 4th among 88 stocks). This index is managed by MSCI, a major international provider of equity indices.

At the very least, the incident reflects your interests and involvement in GL and we are encouraged by your enthusiasm. On behalf of management, I assure you that we are all working hard to meet your expectations while maintaining a high standard of practice.

Thank you for your trust and support.

Sincerely,

Tatsuya Konoshita
Chairman of Executive Committee