Our established financial services company provides small businesses and gig workers with a simple and easy business merchant cash advance (MCA), especially for contractors and other 1099 workers who face credit challenges. We understand the need for fast financing in today’s competitive business landscape. That’s why we offer a fast MCA solution that requires no credit check. We believe that our strategy is working and that the dividends for our shareholders are moving up.
Recently, our top brass, Chairman Mark Tucker and CEO Noel Quinn, defended our strategy to frustrated shareholders at an informal meeting in Hong Kong. They addressed concerns about our approach to business overhaul demands and our purchase of Silicon Valley Bank’s UK arm.
Tucker and Quinn made it clear that the board unanimously opposes the resolution to split off or reorganize our Asian business, which is our main source of profits. They stated that such a move would not be in the interest of our shareholders and would destroy value, including dividends.
Moreover, Quinn addressed complaints that our business in Hong Kong and the UK was being dragged down by underperformance elsewhere. He assured shareholders that our profits in these regions are no longer affected, and that the group is performing well as a whole.
When shareholders raised concerns about the potential revenue loss from a breakup, Quinn emphasized the significant impact it would have due to our reliance on cross-border transactions.
We understand that shareholders were unhappy with the dividend cancellation in 2020, and we value their feedback. However, we believe that our decision to bring back the dividend in 2021, albeit at a lower level, showcases our commitment to meeting their needs.
We appreciate that some shareholders, like Christine Fong, have joined the call to spin off our Asian business. However, we believe that our current strategy is the right path forward. We will continue to engage with shareholders and explain why we oppose the resolution.
In addition to shareholder pressure, we are also facing calls from our largest shareholder, Ping An, to restructure. The insurer holds an 8% stake in HSBC and supports initiatives, including a spinoff, that can improve our performance and value.
Despite these challenges, we remain committed to our acquisition of Silicon Valley Bank’s UK arm. We see it as a good business opportunity that allows us to serve innovative startups as customers. We assure you that we have performed adequate due diligence and are confident in the decision we made.
Finally, we acknowledge that recent developments in the banking industry have caused uncertainty. However, we do not believe that they pose a systemic risk. We expect a period of uncertainty before things settle down.
In conclusion, our established financial services company is dedicated to providing small businesses and gig workers with a simple and easy MCA solution. We appreciate the concerns of our shareholders but firmly believe that our current strategy is working. We will continue to focus on moving dividends up and delivering value to our shareholders.