Transcription of Finance News Network Interview with 8I Holdings Limited (ASX:8IH) Executive Director, Clive Tan
Carolyn Herbert: 8I Holdings Limited (ASX:8IH) is a Singapore based group that conducts an investment business, as well as a financial education and training seminar business. The company was founded in 2008 and listed on the ASX at the end of 2014.
I’m Carolyn Herbert and joining me at the CEO Sessions in Melbourne is the company’s Executive Director, Clive Tan. Clive, welcome back to FNN.
Clive Tan: Thank you and thank you for the invitation.
Carolyn Herbert: For investors who aren’t familiar with your company, can you tell us a little bit more about 8I Holdings and how it was established?
Clive Tan: Our company actually first started in September 2008, during the depth of the financial crisis. But actually we started way before that. Because how we started was, we actually had a group of very keen investors who came together, a total of eight of us. And that’s why we call it 8I Holdings, eight-investment right. And from there actually, what we did was we actually formed a company during that time, because a lot of people were realising a lot of pain in the market. That the market was not in their favour and they were just panicking.
So we thought this is the best opportunity to invest and if you’re not in the market, what are you doing? So we actually seek to educate the public, in terms of how to invest and how to analyse fundamentally strong companies.
Carolyn Herbert: The vast majority of the company’s profit comes from its investments. What’s your acquisition strategy?
Clive Tan: Our acquisition strategy has always been based on our 3R approach. Whether it be public companies or private companies, which is the right business model, the right management, as well as the right valuation. So in terms of the business itself, it must have strong fundamentals. And also the management, we must feel that the management has a lot of drive and has good values, in terms of integrity, so that it can drive the business sustainably forward.
Carolyn Herbert: How has the company performed since listing on the ASX at the end of last year?
Clive Tan: I think from a fundamental point of view, we’ve done pretty well. And I think our profits, based on the latest financial reports, are up in excess of 60 per cent. Right now in fact, the stock price itself has also gone up quite significantly.
Carolyn Herbert: You’ve recently announced a joint venture to expand 8I’s business into China. What does this entail?
Clive Tan: That announcement is actually with our China partner, who we actually have been corresponding with for over two years already. When we agreed to set up our China office, right now we have that agreement in place, but we are now going through the details. In fact at this very current moment, to set up our office there.
Carolyn Herbert: The company’s financial education business has become one of the leading operators in Singapore. How do you plan on growing this part of the business further?
Clive Tan: The financial education business itself in terms of profits, may not generate very much. But it’s the power of the network and the contacts and people that come across us, that creates that synergy and that power. And that’s why our investments and our contacts, and our network are very strong. And that’s how our company can grow so fast.
Carolyn Herbert: Finally Clive. What’s your priority for the next 12 months and what’s your outlook for the longer term?
Clive Tan: Our priority right now, actually I’m building the inner core team. Because in terms of where we’re growing, we’re growing so significantly that I’m concentrating on getting the right people in the right places, for our company. There’re a lot of talented people, who are joining our team and I think we have a lot more room to grow, going from there.
Carolyn Herbert: Clive, thank you for joining us on FNN.
