XSPring Capital announces a major business plan to move towards the financial and securities business as a fully integrated financial service, providing trusted solutions across traditional and digital platform.
Strong financial position that has received overwhelming support with capital increase, now with more than Bt10,000 million in capital. The 1H/2021 performance was better than target with Bt167 million in revenue and Bt65 millionin profit.
The Company is confident that the revenue and profit for the year will touch the 3-digit mark with the figures significantly higher than in the previous year. It is expected that a significant revenue growth in the year of 2022 could be achieved, in accordance with the expansion of the world’s digital finance market now worth more than Bt40 trillion.
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Rathian Srimongkol, Chairman of XSpring Capital Public Company Limited (XPG), said that this year marks a major step in the big transformation of XSpring, both in the change of the company name to ‘XSpring Capital Public Company Limited’, as well as the confidence from the investors so that we were able to increase the capital to Bt7,111 million within a short period of time.
Also significant is the joint venture with strategic partners such as Sansiri Public Company Limited in the field of Digital Financial Service.
Currently, XSpring comprises of five main financial business groups that are ready to grow in tandem strongly and sustainably to create opportunities and confidence for investors at all levels.
These are: Securities under Krungthai ZMICO Securities Company Limited; Fund Management by XSpring Asset Management Company Limited; Distressed Asset Management Business by XSpring AMC Asset Management Company Limited; Digital Asset by XSpring Digital Company Limited; and Investment.
The capital increase also provided XSpring with a strong financial position with a high cash flow consisting of the original shareholders’ Bt3,094 million along with the capital increase of Bt7,111 million.
As a result, XSpring has more than Bt10,000 million of capital on hand that will be used for business development in three areas, namely: 1. Digital Business: With the focus on developing the digital investment platform and create a business ecosystem for financial services; 2. Current business: Growing securities business and provide one-stop financial solutions for clients, supporting private equity investment, expanding asset management and distressed asset, and enhancing risk management and tech capabilities; 3. Loan repayment and working cap.
“XSpring Capital’s performance in the first half of 2021 is very satisfactory, achieving total revenue including profit/loss from associated company of Bt167 million which was higher than the total revenue including profit/loss from associated company in the whole year of 2020 which totalled Bt141 million. For the first half-year the net profit was Bt65 million, a 791 percent increase over the same period of the previous year showing the positive sign. We are confident that the business plan from now will gradually manifest itself in continuous increase in earnings and profits, with the expectation that the revenue will grow exponentially in 2022.”
“Transformation & Leap Forward”
In 2021, the Company put in place a major business plan to move into “Digital Financial Service” – an integrated full-service financial and securities service provider that will transform the traditional financial business to new financial innovation be leveraging the expertise in combination with digital technology to connect the current financial world with the digital financial services world of the future, to allow everyone the opportunity to access the world of finance and investment conveniently and easily with a small initial investment. Also, it will be possible to receive comprehensive, transparent, and reliable investment information which is considered to be a business with high growth rate in the world market.
XSpring’s next step has been derived from the recognition of the exponential growth trend of digital finance businesses in Thailand and around the world now worth more than Bt40 trillion (US$1.3 trillion) that carries high growth opportunities and will help drive the country’s digital economy tremendously in the future.
XSpring aims to grow with the global market through assets that will replace money, such as cryptocurrencies or trading in gold through digital systems. Just the Bitcoin market alone has grown to more than Bt24 trillion (US$0.8 trillion), including the markets in Smart Contract and Decentralized Finance platforms worth over Bt11.7trillion (US$0.39 trillion) and Bt1.35trillion (US$45,000 million), respectively.
In addition, Utility Token and Security Tokens are also a high-growth digital finance with a current market size of Bt1.95trillion (US$64,000 million). Globally, digital tokens and blockchain system are also used in various industries, including tokens based on traditional assets such as gold, stock market, bond market, real estate, bond market, etc. We believe that this phenomenon will lead to a global disruption that will bring to XSpring many business opportunities in the future.
Rathian added, “XSpring’s three strengths following the disruption are “Partners – Strong funding from capital increase – and 17 licenses on hand”. The target is to grow by positioning XSpring as the expert in providing investment consultation, using the advantage of the XSpring ecosystem to grow securities firms, focus on mid-cap stocks, turnkey capital market services and digital token selling (ICO) solutions, leverage partnerships to expand business and strengthening human capital. In addition, XSpring will further evolve into the future by improving the efficiency in asset management (AM) and investing in private enterprises (PE) to attract the growing high-wealth groups, as well as investing in new digital platforms to offer digital assets in an innovative way.
For the business penetration plan after the capital increase, XSpring will proceed fully with the “Transformation & Leap Forward” business plan. Since Q2 2021, XSpring AMC Asset Management Co., Ltd. (XSpring AMC”), a subsidiary of XSpring Capital Plc., has partnered with Sansiri to “invest in asset pool” consisting of debtors with rights to claim under the commercial and residential credit agreement and collateral contracts consisting of land and land with buildings in Bangkok and vicinity (NPL), which will be used to manage assets to expand the business and generate more income in the long run.
At the same time, the Company will penetrate the digital finance market through XSpring Digital, the provider of digital token offering system in Thailand (ICO Portal) by issuing two ICOs within this year, moving forward with “SiriHub Investment Token” which is the first Real Estate-backed ICO in Thailand under the supervision of the Securities and Exchange Commission (SEC), and the launch of “Ready to Use Utility Token” for the first time in the entertainment industry and EV charging ecosystem in Thailand through the cooperation with Sharge Management Company Limited (SHARGE), the No. 1 service provider of comprehensive EV charging services. Another significant point to talk is the acceptance of digital currencies in the purchase of residences at all Sansiri projects, as well as for use to pay for the centra management fee at any project – for the first time in Thailand’s real estate industry.
In addition, XSpring also plans to launch a digital asset brokerage and dealer business, including the digital asset trading platform, while in the process of obtaining Digital Asset Fund Manager and Open-Architecture licenses, to increase investment products for customers, as well as finding investment opportunities in high-potential private companies.
“XSpring Capital would like to thank all shareholders and investors for putting your confidence in us. You can rest assured that the Company will utilize our expertise and long experience in the financial business to relentlessly drive the business to suitably create diverse investment opportunities to create financial return and full satisfaction for all interested investors, be it retail investors or high net worth investors, that will lead the Company to become the leader in financial service business as a full-suite financial service provider, providing trusted solutions across traditional an digital platform,” said Rathian
