Steady Growth in Financial Business, Mergers and Acquisitions Aim at Expanding Asset Management Platform
DL Holdings Group is a leading asset management and financial service platform with a core focus on family offices in the Asia-Pacific region. The provisions of its business include DL Family Office, DL Securities, DL Asset Management, DL Global Real Estate Investment, DL Emerald Wealth Management, and DL Advisory. The Group’s asset under management (AUM) and asset under advisory (AUA) have exceeded US$ 3 billion. For the Financial Year 2023, DL Holdings recorded a revenue of approximately HK$191.1 million, a gross profit of approximately HK$102.6 million, and a total comprehensive expenses attributable to the owners of the Company of approximately HK $49.5 million. During the Reporting Period, the Group acquired DL Family Office (HK) Limited (“DL Family Office HK”) and DL Emerald Wealth Management Limited. (formerly known as Emerald Wealth Management Limited) (“DL Emerald”) to further expand the Group’s financial services business. During the Reporting Period, in order to achieve diversification of investment strategy, the Group acquired ONE Advisory Limited to develop enterprise solution service business. The Group has entered into a strategic partnership with Soochow Securities. Established DL Asset Management, which holds Type 4 and Type 9 licenses; launched global asset management business. Established DL Global Real Estate Investment Department to expand real estate investment, advisory and management business, with a focus on Asia and North America. Its investment project “One Carmel” has made significant progress.
HONG KONG, June 27, 2023 /PRNewswire/ — DL Holdings Group Limited (“DL Holdings” or the “Company”; Stock Code: 1709.HK; and its subsidiaries collectively referred to as the “Group”) has announced its consolidated annual results for the year ended 31 March 2023 (the “Reporting Period”).
Amidst global market turbulence and uncertainty, the Group proactively adjusted to the economic landscape and strived to deliver higher returns for shareholders. Despite challenges in finance and apparel business, the Group has achieved satisfactory financial performance and ongoing business growth. During the Reporting Period, the Group recorded a revenue of approximately HK$191.1 million, a gross profit of approximately HK$102.6 million and a total comprehensive expenses attributable to the owners of the Company of approximately HK$49.5 million. The Group’s asset under management (AUM) and asset under consulting (AUA) have exceeded US$3 billion.
During the Reporting Period, the segment revenue for the provision of financial services of licensed business was approximately HK$136.9 million and segment profit was approximately HK$22.6 million. The segment revenue of money lending services was approximately HK$16.7 million and segment profit was approximately HK$12.0 million. The segment revenue of enterprise solution business was approximately HK$15.3 million and segment profit was approximately HK$2.5 million. The segment revenue of apparel business was approximately HK$22.3 million and segment loss was approximately HK$11.9 million.
Hong Kong’s First Listed Entity in Family Office Sector
During the reporting period, to further expand its financial services businesses, the Group acquired 45% interest in its affiliated company, DL Family Office (HK) Limited (“DL Family Office HK”), for HK$63.0 million and acquired the entire issued share capital in DL Emerald Wealth Management Limited (previously known as Emerald Wealth Management Limited) (“DL Emerald”) for HK$15.5 million, involving a total of HK$78.5 million.
DL Family Office HK is principally engaged in licensed businesses in provision of wealth management financial services for ultra-high-net-worth families, including advisory and asset management services, with a total asset under management and advisory of over US$2.1 billion. DL Emerald is a licensed insurance intermediary that engages in insurance, wealth planning and other related businesses.
In recent endeavour to promote Hong Kong as a family office hub in Asia, the Hong Kong SAR government has issued a number of favorable policies to attract more family offices to settle in Hong Kong, echoing the city’s determination to enhance its competitiveness as a global wealth management center and a family office hub. Established in 2012, DL Family Office possesses over a decade of experience and it is one of the earliest recognized multi-family offices in Hong Kong with SFC licenses. Headquartered in Hong Kong, DL Family Office has extended its presence in mainland China, Singapore and North America.The core team of DL Family Office are seasoned professionals from international private banks, investment banks and wealth management institutions, with an average of more than 20 years of experience.
Through the acquisition of family office business, the Group becomes the first listed entity in the family office sector in Hong Kong. Such positioning is conducive to the Group’s business plan in wealth management and impact investment in Singapore and North America, as well as the expansion of the Group’s asset management scale and business scope. It accelerates the group’s transformation into a comprehensive asset management and financial service sector. With the support of the Hong Kong SAR government through implementation of favourable policies, DL Family Office will continue to maintain its position as a leading multi-family office in the Asia-Pacific.
Strategic Partnership with Soochow Securities
During the reporting period, the Group and Soochow Securities has entered into a strategic cooperation. Both parties will launch all-round cooperation in the aspects of family office, wealth management, joint operation and equity, including docking domestic and overseas client resources, providing asset allocation strategies and investment products, and selling various financial products on behalf of each other, to jointly promote cross-border investment and wealth management between mainland China and Hong Kong, the Greater Bay Area, and even the Asia-Pacific region, thereby empowering each other for win-win cooperation.
The Group will fully leverage its own strengths, particularly focusing on the unique advantages of serving family office clients, corporate clients, and global asset allocation. The Group will fully connect with Soochow Securities’ extensive domestic and international client resources, deeply explore the wealth management needs of existing clients, jointly expand the service scope for clients in new areas, and achieve alignment in principles, complementing each other’s businesses, and promoting mutual assistance, all with the goal of swiftly seizing the cross-border asset management market in Hong Kong and the Greater Bay Area in this new era.
Groundbreaking for a California Ultra-luxury Real Estate Project and Engaging in Global Real Estate Investment
On 21 August 2020, DL Investment Holdings US, LLC, a wholly-owned subsidiary of the Group, agreed to subscribe for approximately 27.06% of the interest in Carmel Reserve LLC at the consideration of US$5 million (equivalent to approximately HK$39 million), investing in an ultra-luxury real estate project, ONE Carmel, located in the North American Bay Area. ONE Carmel is a closed ultra-luxury residential community, covering a total area of 891 acres (3.6 square kilometers). It has the capacity to build 73 ultra-luxury detached residence and community.
As at 31 March 2023 , the fair value of the Group’s investment in the Target Company was approximately HK $107.1 million, representing for approximately 12.0% of the total assets of the Group as at 31 March 2023. It is expected that the project will bring considerable contribution to the Group’s revenue and form a broader top-tier client base.
After seven years of hard work, “One Carmel” has made significant progress and investment income. The first phase of the project has started and made significant progress. The widening of the community driveway and the initial earth leveling have been completed. At the same time, the sales centre was officially launched, and some cooperation intentions and plot reservations were established.
During the Reporting Period, the Group has established DL Global Real Estate Investment to expand its business in real estate investment and global real estate investment advisory and management, including DL Real Estate, ONE Carmel, ONE Plus Property Management, real estate-related private equity and private debt. DL Global Real Estate Investment Department provides real estate investment opportunities and property management and trade, with a focus on Asia and North America. It plans to complete investment and achieve AUM growth to US$500 million next year.
Looking forward, Mr. Andy Chen, Chairman of the Board and Chief Executive Officer of DL Holdings, said, “In the future, DL will adapt to the transformation of the times, enabling the Group to be lightly loaded and more focused, accelerating the development of asset management and financial services business with a focus on family office, and expanding partnership cooperation through mergers and acquisitions to meet the business development needs of more ultra-high-net-worth families and their enterprises. We will continue to design a range of tailored and standardized products that are robust and sustainable. Together with our strategic partners, we cater to a broader range of high-net-worth clients with providing full lifecycle asset management and wealth succession services. We aim to grow our current $3 billion AUM to $8 to 10 billion by 2024. Leveraging DL’s unique competitive advantages and our efficient management team, the Group will continue to share long-term compounded growth with investors, delivering sustained returns to all shareholders.”
About DL Holdings Group Limited (Stock Code: 1709.HK)
DL Holdings Group (1709.HK) is a Hong Kong-listed asset management and financial services platform with a core focus on investment banking business, covering securities trading, financial consulting, multi-strategy investment fund management, investment research, financial loans and other financial services. Its subsidiary, DL Securities, holds SFC licenses for Type 1 (securities trading), Type 4 (advising on securities) and Type 6 (advising on corporate financing) regulated activities. The Group’s subsidiary, DL Capital, mainly provides asset management services, holding SFC licenses for Type 4 (advising on securities) and Type 9 (asset management) regulated activities. The Group’s subsidiary, ONE Advisory, provides one-stop, bespoke and comprehensive global identity planning consulting services and solutions for high-net-worth individuals and families. The listed company also holds a Singapore RFMC fund license and a Cayman Islands SIBL fund license. The Group has established 18 limited partnership funds in Hong Kong, which mainly invest in private equity. The Group’s subsidiary, Seazon Pacific, is committed to providing overall solutions for supply chain management.