Good day to our Directors, Officers, stockholders and stakeholders. Welcome to the 2021 Abacore Annual Stockholders’ meeting.
Like most of the operating companies in the Philippines and the entire world, ABACORE failed to meet target revenues in 2020 due to the Covid-19 pandemic. NEDA has optimistically announced that the Philippines will recover and reach pre-COVID economic growth levels by 2023. I am certain that your Company, Abacore Capital Holdings, Inc., will be ahead of this curve. Abacore will not only recover, but will substantially surpass our 2020 and even pre-COVID consolidated operational performance this year, 2021.
As of mid-year, June 30, 2021, Abacore has already generated approximately P100 Million in profits from trading in marketable securities.
I am not only hopeful, but also confident, that your Company will be able to sustain this performance until year end, 2021,such that we project to deliver on our annual 10% dividend policy by the 4th quarter of this year.
As an update, qualified Shareholders will receive 2020 stock dividends soon, since Abacore has paid the Securities and Exchange Commission (SEC) fees related to its application for issuance of said shares. We hope this brings better fortune and values for our shareholders.
To sustain our growth, the subscribed capital of Abacore has been increased by P1 Billion, and P250 Million has been paid. This new capital seeded the establishment of the 100-hectare ABA Energy Hub in Batangas, via joint venture with Chinese partners in accordance with existing Memoranda of Agreements signed in 2019.
Despite the pandemic crippling our society for a second year, Abacore shareholder value has increased year to date by at least 60%.
Furthermore, Abacore has been included in the Holdings Index of the Philippine Stock Exchange. This reflects our remarkable performance in the middle of an on-going pandemic. Looking forward we expect better values for our shareholders as we pivot towards industries less affected by the pandemic, and have seen growth; logistics and energy.
As I mentioned, this year we launched the Abacore Energy Hub. Our first partnership in this project is with a subsidiary of A Brown Co, Inc., Vires Energy. Vires will be building its liquefied natural gas regasification facility and power plant in the Abacore Energy Hub. The Energy hub will be consolidated under Abacore’s investment in Simlong Energy Development Corp. which is currently consolidating assets for the energy hub.
Abacore is also looking towards logistics as shipping and home delivery of goods continues to grow during the pandemic. We continue to see our land assets near sea front go for 15 – 25 thousand pesos per square meter and expect this to grow and substantially appreciate in the coming years. Our land bank in Batangas continues to grow both in size and value as reassessment of zonal values of our properties continue to increase.
We are taking advantage of the trend of cashless transactions as we move to digitize Philstar Development Bank. Philstar is a subsidiary of our wholly owned subsidiary Philippine Regional Investment Development Corporation. This move towards the fintech industry stems from Abacore’s drive to innovate. Abacore was a founder of Pacific Online Systems Corporation (PSE:LOTO). Abacore continues to hold a substantial stake in LOTO which provides the company a steady stream of cash flow and contributes to the value of the Abacore investment portfolio.
Our flagship project for tourism, the Montemaria Tower of Peace in Montemaria, Batangas City will be our center for tourism-based investments as we see domestic tourism grow for Luzon because of regional lock downs. Batangas is the number 1 spot for domestic tourism in the Philippines as a majority of those in Metro Manila flock to Batangas resorts and beaches every weekend.
We expect the number of visitors to Batangas for tourism to increase in the coming years as we come out of lockdown and reach herd immunity as travel to other countries, and even regions within the Philippines continues to be cumbersome and difficult with different quarantine procedures.
Abacore will be ready with our tourist oriented developments around the Montemaria project which are just an hour and a half drive away from Metro Manila.
In sum, we are positive our investments, our land bank in Batangas, and our joint venture partnerships will provide the needed growth for our company to succeed and overcome the current circumstances.
We are aware of our ever-changing business environment, and we will continue to be vigilant to ensure the growth of our company and enhancement of shareholder values. We thank you for your trust and support.
Good afternoon, and Stay safe.
REGINA R. MANDANAS
President and CEO