Message from the Chairman

Mr Tan Choon Wee
Interim CEO and Executive Chairman

Dear Shareholders & Friends,

As we approach the end of 2018, the management of Pine Capital Group Limited (“PCG”) would like to thank each one of you for your support not only for 2018, but over the years, which has been integral to PCG’s progress and success.

2018 in Review:

The past year was an extraordinary time for PCG. Each year, with each strategic move, we aim for PCG to move towards strength and prosperity. We continue to see exciting opportunities to invest for the future and are confident that we are in an optima position in some of the world’s fast growing markets. With our resilience, be it geopolitical risks, global uncertainties or meeting the accelerating changes worldwide, we are focused and dedicated to power our future not only in sustaining and accelerating PCG’s growth but, as importantly, to bring benefits to communities locally and worldwide.

This was illustrated in our past year’s achievements:

  • January 2018: The year started strong with two acquisitions;
    • Acquisition of 51% stake in Advance Capital Partners Asset Management Pte Ltd (ACPAM). ACPAM, a fund management company registered with the Monetary Authority of Singapore, has actively secured investments by subscribing to the convertible notes of several corporations in Malaysia and Thailand. With these two strong markets performing well, we can expect to secure more of such deals in the near term. In addition, ACPAM’s assets under management grew by an additional USD30 million with an additional subscription into a segregated portfolio of Advance Credit Fund SPC.
    • Acquisition of a 100% stake in BSDCN Pte. Ltd. BSDCN Pte. Ltd. holds a 9.98% stake in Pine Asia Asset Management Inc. Pine Asia is a Korean asset management company with approximately USD3 billion of assets under management.
  • May 2018: PCG completed a Renounceable Non-Underwritten Rights and Warrants Issue exercise, issuing a total of 787.2 million Rights Shares and raising gross proceeds of approximately SGD1.97 million.
  • October 2018: PCG completed the Proposed Placement of 611.1 million Shares, raising an aggregate of SGD550,000.
  • November 2018: PCG secured a convertible loan of SGD2.7 million. The loan is convertible into 1 billion new shares at 0.27 cents each. PCG also entered into a conditional subscription agreement, pursuant to which it will issue an aggregate of 799 million shares, raising proceeds of SGD2.2 million.
  • December 2018: PCG has announced the proposed acquisition of 51% stake in Silver Tree Hong Kong Limited, a licensed entity registered with the Securities and Futures Commission of Hong Kong providing financial services to professional investors.

These achievements are recognitions of our prudent strategy and profound management insights. At PCG, we combine data, research and the talents of our people to help drive improvement, ultimately creating value for all shareholders. We are of the view of the bright future of PCG and that there is still plenty to be achieved in PCG’s evolution.

We will continue to strive to make impressive progress and, at the same time, continue to raise our profile and prominence in the industry. We see next year lined up with many successes and great achievements and we hope you will be part of our growth and pride.

Towards 2019:

Looking to the future, we will build on our fundamental strengths, global presence and continuous innovation to move forward to create more value in 2019.

We wish to move towards 2019 with three main objectives:

  1. Revenue Growth. We look forward to our key initiatives of generating growth, scale and financial development.
  2. Capital Allocation. We aim to continue to generate cumulative free cash flow through 2020. This would give us significant flexibility to re-invest into our company, expand our business and boost the value of PCG.
  3. Global Expansion. We understand the importance of optimizing the distribution of our network and have plans to expand the company’s footprint into prime locations in South East Asia. PCG will be able to extend our reach into these countries by early 2019.

All told, when we look towards the future, we see a gold mine of opportunity – opportunity for growth, opportunity for innovation and opportunity for talent cultivation. We are committed to achieving our goals and, in doing so, we will drive sustainable, long-term, incremental value for our clients and for our shareholders.

In this holiday season, we should be thankful for what we have and be grateful for having our loved ones around. Thank you for your investment and trust in our company. PCG wishes you a merry Christmas and a very happy new year, filled with success, happiness and good health.

Yours faithfully,

Pine Capital Group Limited