• Net loss for FY2025: YZJ Financial reported a small full-year net loss (S$0.52 m / ¥ 4.3 m), a swing from a profit in FY2024 to a loss in FY2025. The decline was mainly due to significant expected credit loss allowances on its debt investment portfolio, reflecting tougher credit conditions especially in parts of the China property/credit market.      
• Underlying business: Ex-these allowances the ongoing business still made a modest profit, signalling that the core asset management and investment income streams have not collapsed.      
• Balance sheet: The company remained net cash positive, holding over RMB638 million in cash with no external borrowings, which gives it a cushion while competition and credit markets recover. 

The spin off is creating some accounting challenge for investors to understand. While YZJM recognised full year profit based on all the maritime assets, it only give dividends based on it actual earning based on its maritime assets post spin off. Meanwhile, YZJF also recognised its FY25 profit and loss based on all pre spin off assets including the maritime assets. That' s why it full year losses is only $5.2m despite huge provision. 1H25' s profit $137.7m + 2H25' s profit $148m [implied] -$290.9m provision = $5.2m. The $137.7m and $148m including profits from pre spin off maritime assets. So this is accounting ' big bath' . YZJF made use of the spin off opportunity to clean up its balance sheet by providing huge one time $290.9m provisions. Effectively, this is ' hidden' profits if in future, this amount somehow get written back.

As far as YZJF' s own assets is concerned, it chalked up 1H25' s profit of $55.42m [$137.7m - $82.28m as per YZJM' s introductory spin off document indicating its 1H25' s earning] and about 48m 2H25' s profit [FY $103m-1H25 $55.42m]. It has officially stated that it would record $92.2m profit if not because of the credit loss allowance so the figure is close enough. Going forward, it shouldn' t have the need to provide any more provisions. For context, it has not provide more than $40m provision in any single financial year previously. I think YZJF can generate returns of at least 3 to 5 cents eps in FY2026 and anything higher beyond that would have to depend on its investment strategies and executions.  Market may or may not whack YZJF following the results as it could have already whacked in the past 2 trading days following profit guidance.