DHWM Releases Audited Financial Report for Fiscal Year 2025

I. Proactively Engages Big Four Accounting Firm Deloitte as Independent Auditor; Setting a New Benchmark for Compliance Governance

DH Wealth Management (hereinafter referred to as "DHWM") released its audited financial report for the fiscal year ended December 31, 2025.

Without any regulatory requirement, DHWM exercised prudence and chose to entrust the audit to Deloitte & Touche LLP, one of the global Big Four accounting firms, renowned for its higher audit standards, stricter procedures, and correspondingly higher fees compared to most other audit firms. This truly reflects DHWM's pursuit of compliant operations, transparent governance, and investor protection.

Deloitte has since issued an unqualified audit opinion, explicitly stating:

"The financial statements present a true and fair view, in accordance with the Singapore Companies Act and Singapore Financial Reporting Standards (FRS), of the company's financial position as at December 31, 2025."

II. Gradual Increase in Total Assets Under Management (AUM), Signifying Strengthening Fund Management Capabilities

Despite overall macroeconomic pressure on capital markets in 2025, the AUM of DHWM's two main VCC funds showed positive changes:

Analysis Note: 

In 2025, as global market conditions gradually stabilized, DHWM optimized its fund asset allocation structure and executed a strategic adjustment: reducing exposure to private/primary markets and alternative investments, while increasing allocations to public/secondary markets.

Indicatively:

· Total AUM focused on private markets and alternative investments were adjusted from S$213.58M to S$144.97M, a decrease of 32.1%, due to the Company's strategic reduction in private and alternative asset exposures and portfolio optimization.

· The AUM focused on public and secondary markets, such as equities, debt securities, and other publicly traded assets, correspondingly grew from S$74.75M to S$115.10M, an increase of 54.0%.

This is a result of a strategic rebalancing, and total AUM remained above S$260 million (S$260.08M in 2025), demonstrating DHWM's ability to actively manage and flexibly re-allocate across different market cycles. It is also a significant testament to its clear strategic shift from primary markets to secondary markets in 2025.

III. Company's Financial Health: Enhanced Capital Strength, Increased Profitability

1. Total Assets

Total assets remained stable with positive growth, largely attributable to investment optimization and capital structure improvements.

 2. Paid-up Capital (Share Capital)

Notable Change: In 2025, DHWM formally converted S$8.24 million capital contribution into ordinary shares, increasing paid-up capital to S$10 million, significantly enhancing capital strength and regulatory compliance capability.

Capital Adequacy and Alignment of Interests:

As a CMS-licensed fund management company, DHWM fully understands that the fund management industry predominantly operates on an asset-light business model. MAS only imposes a relatively prudent minimum capital threshold for all licensed institutions. DHWM’s current paid-up capital, however, exceeds that regulatory minimum by more than twenty times.

Therefore, we would like to share 4 key points regarding DHWM’s capital strategy:

1. DHWM’s Strong Capital Foundation

DHWM not only meets the minimum requirement imposed by MAS, but has proactively built a capital buffer far above the industry average. This reflects not just DHWM’s financial prowess but more importantly, it signifies our commitment to ensure operational resilience even during extreme market conditions.

2. Deep Alignment of Interests between GP and LP

By injecting substantial registered capital and assets, DH seeks to send a core message to the market: we are not merely an "investment manager" collecting fixed management fees, but rather a "co-investor" standing alongside you.

We do not rely on management fees or performance fees as our sole source of survival. Instead, we directly link DH’s own capital returns to the fund’s performance. This mechanism ensures that only when investors achieve outstanding returns can DH realize its own asset growth.

3. Skin in the Game

4. Through significant capital contributions, there is now a healthy buffer of funds. This however, is not a common industry practice but a manifestation of DHWM’s corporate philosophy — that we are willing to put our money where our mouths are, clearly exhibiting the level of commitment and confidence in sharing both risks and rewards with our investors.

V. 2026 Outlook: Focusing on Hong Kong’s Market, and Optimizing DHGI’s Investment Strategy

Looking ahead to 2026, DHWM will advance its strategic priorities around the following two areas:

1. Increased Focus on the Hong Kong Market

· Leverage Hong Kong's advantages as an international asset management hub to establish or strengthen localized service capabilities.

· Expand multi-currency, cross-border asset management products for high-net-worth clients and family offices in the Greater China region.

· Actively study the application for, or collaborative arrangements regarding, Hong Kong Securities and Futures Commission (SFC) compliance licenses.

2. Adjustment of the DH Global Investment Fund‘s (DHGI) Investment Strategy

In view of the fund's transition in 2025 and global market changes, DHWM will prioritize the following strategy for DHGI:

· Shift from a single multi-asset allocation to a 'Core + Satellite' structure: The core portion of funds will be allocated to high-quality, low-volatility assets (Long-Short Investment Strategy); the satellite portion will focus on event-driven, special opportunities, and other yield-enhancing strategies.

· Enhanced Liquidity Management Mechanism: Establish a more flexible sub-share class structure to meet the diverse needs of different investor types.

· Strengthened Risk Management Metrics: Introduce stricter downside risk controls (e.g., VaR, stress testing), particularly in equity and alternative investment exposures.

· Explore collaborations with local Hong Kong financial institutions to establish HKD/RMB share classes, increasing participation from Greater China investors.

Conclusion

Anchored by high compliance standards and focused on professional investment capabilities, DHWM strives to advance on its regional strategic plans. The 2025 audit report not only validates the company's financial stability and operational effectiveness over the past year, but also lays a solid foundation for high-quality development in 2026 and beyond.