Shin Kong Gold (2888) today (10th) announced a single-month self-tax loss of 1.747 billion yuan, a cumulative loss of 2.431 billion yuan, and a loss of 0.16 yuan per share. It is the only loss-making company among the 14 financial holdings. Analysis by the company’s acting spokesperson Lu Yaru The reason is mainly due to three major factors, including the increase in exchange costs offsetting the benefits of the depreciation of the New Taiwan dollar, the surge in U.S. long-term bond interest rates and the decline in the stock market.
Further reading:A chart showing the profit reshuffle of 14 financial holding companies in October, with only one company, Shin Kong Financial, losing money.
There are three main reasons why Shin Kong Gold became the only loss-making company among 14 financial holding companies in October.Picture/Provided by Shin Kong Gold
After making a small profit of 300 million yuan in September, Shin Kong Gold once again suffered a monthly after-tax loss of more than 1.7 billion yuan in self-settlement, compared with a profit of 1.173 billion yuan in the same month last year. It fell into a low ebb again in October. In terms of accumulation, the outside world had been expecting that the new team would be able to smoothly turn losses into profits. However, as of the end of October, it still suffered a loss of 2.431 billion yuan. Compared with the profit of 11.3 billion yuan in the same period last year, it has not yet returned to the right track of growth.
Shin Kong Gold’s acting spokesperson Lu Yaru said in an interview today that Shin Kong Gold’s losses in September were mainly caused by its subsidiary Shin Kong Life Insurance’s loss of 2.059 billion yuan and Yuanfu Securities’ loss of 126 million yuan.
Life Insurance lost nearly 2.06 billion yuan in a single month, mainly due to exchange factors. Lu Yaru said that although the Taiwan dollar has depreciated by 1.5 cents, the cost of traditional avoidance tools CS and NDF is still relatively high, thus offsetting the exchange gains brought by the depreciation of the Taiwan dollar and putting greater pressure on hedging costs; in addition, the financial market was also affected by the U.S. dollar in October. Affected by the surge in bond interest rates and violent stock market fluctuations, the capital gains space of New Life’s stock and bonds has been compressed, so the profit performance is not as expected. The balance of foreign exchange reserves currently remains at the upper limit of 27.4 billion yuan, and no additional withdrawals or deposits are required, nor have they been used. However, there is still room for flexible adjustment of risk aversion strategies.
Yuanfu Securities’ investment performance was mainly due to the impact of the decline in the stock market, resulting in a small loss. The banking sector maintained stable development and maintained its profit-making pace. Looking forward to November, it seems that we currently want to work towards the goal of profit, but market changes are elusive and it is difficult to predict now.
This month (November) of Xinshou is a performance competition month. In the first week, it has achieved its full-month performance target ahead of schedule, and it currently reaches 113%. Among them, foreign currency policies account for 80%, all of which are in line with annual operating targets. In the first ten months of this year, Shin Kong Life, a subsidiary of Shin Kong Financial, lost a total of about 9.968 billion yuan, while Shin Kong Bank made a profit of 5.688 billion yuan. Yuanfu Securities still made a cumulative profit of 1.863 billion yuan in the first ten months of this year. Shin Kong Investment Trust and Shin Kong Financial Insurance Agency both made small profits of tens of millions of yuan. .
Yahoo Finance special correspondent Ye Yiru: 22 years of experience in mainstream financial media. From the Web1.0 bubble in 2000 to the Meta Yuanverse Web3.0, he has witnessed the rise and fall of Taiwan’s large and small enterprise groups and has experienced five international financial crises. We believe that finance is life and is everywhere. No matter how difficult financial knowledge is, we should explain it in a simple way. Everyone, young and old, should manage money. If you don’t manage money, money will not care about you.
2023-11-10 10:35:51
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