Chen Enguang/Sunbeam Gold General Manager Chen Enguangfa said that the meeting will be the first show and talk about the four key points of improving efficiency

2023-08-31 07:14:13

With 440,000 shareholders, Shin Kong Gold (2888) held its first substantive law meeting today (31) following its management rights changed. The new general manager Chen Enguang presided over the debut show. The legal person asked how to improve the efficiency of financial holdings with the new team in place. He mentioned that the future will develop in four key directions, and agrees that “efficiency is very important” in the transformation of Shin Kong Gold. To increase the proportion of bank and securities profits, at least double-digit growth in profits this year is required.

Chen Enguangfa, general manager of Shin Kong Gold, talked regarding the first show, and talked regarding the four key points of improving efficiency.Photo/photographed by reporter Ye Yiru

Shin Kong Gold held the second season corporate briefing this followingnoon (31), which was the first physical meeting since the epidemic, and was presided over by the new general manager Chen Enguang for the first time. Asked by the legal person that the new team is in place, how to improve the efficiency of financial holdings?

He said that he had reported to work for less than two months, and he also very much agrees that efficiency is very important, and it is also linked to future profitability and capital. He mentioned that the three major subsidiaries of Shin Kong Financial Holdings, life insurance, banking and securities, are very important, especially life insurance, which accounts for nearly 70% of assets. Therefore, we must first start with Shin Kong Life.

Key point 1: Shin Kong Life integrates with international standards to release CSM benefits

Facing the integration of the No. 17 Communiqué, the business and the entire future product design must have more foresight and strategy, and we must always emphasize the need to use CSM (contract service margin, which means selling profitable insurance policies) and high-quality products as the business center of gravity. Shin Kong attaches great importance to the benefits and insurance income released by CSM, and is willing to promote business in a disciplined manner. Shin Kong Life aims to achieve an annual CSM of 30 billion, and the benefits will not appear until 2026.

Focus 2: Improving the efficiency of insurance investment

The second is the efficiency of insurance investment, but it also depends on the cost of hedging. Chen Enguang said that it takes a lot of effort to adjust the allocation of Taiwan’s assets and liabilities. “Hedging is a very important test.” We must always work hard towards the cost of hedging at 150 basis points (1 basis point is regarding 0.01 percentage points). Get there soon.

The third key point is the enrichment of capital

Chen Enguang said that Shin Kong Life’s capital is sufficient, and the parent financial holding company is “obliged to assist.” However, he also mentioned that fundraising is second, and the most important thing is to enrich its own capital (meaning to make a profit). Shin Kong Gold Flag Life Insurance recently announced that it intends to issue 13.2 billion yuan of sub-bonds to improve capital.

The fourth priority is to increase the contribution of securities and bank subsidiaries to the profit of financial holdings

Chen Enguang said that for the two major subsidiaries of banks and securities, banks also hope to pay attention to deposit and loan business. At present, they hope to especially strengthen lending to small and medium-sized enterprises, because small and medium-sized enterprises are the backbone of Taiwan’s economy and hope to do it more efficiently;

As for securities subsidiaries, self-management and bonds have done well at present, but for brokerage, entrustment, securities lending and other businesses, it is also the direction to increase profit margins in the future. He believes that if the proportion of securities and banks contributing to the profit of the financial holding company increases, it will also help the financial holding company to improve its profit efficiency. Chen Enguang also expressed that he has double-digit growth expectations for banks and securities subsidiaries.

Ye Yiru, Special Correspondent of Yahoo Finance: 22 years of experience in financial mainstream media, from the bubble of Web1.0 in 2000 to Web3.0 of the Meta universe, witnessed the history of the rise and fall of large and small business groups in Taiwan, and experienced five international financial crises. Think that finance is life, omnipresent, no matter how difficult financial management knowledge should be explained in a simple way. No matter you are young or old, you should manage money. If you don’t manage money, money will ignore you.

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