UC Asset is debt free, cash positive, and aims at $0.19/share gross profit
February 16 2023 - 11:41AM
InvestorsHub NewsWire
Atlanta, GA -- 02/16/2023 --
InvestorsHub NewsWire -- UC Asset LP (OTCQB:
UCASU) (OTC:
UCASU) management announces that the company has paid off all
its debt obligations and carries zero debt, either bank loans or
private notes, while it will maintain positive cash reserve, and is
on track in its pursuit of $1 million gross profit (about $0.19 per
share) for the year of 2023.
"Ever since our incorporation, our
management have adopted a disciplined investment strategy and kept
our debt/equity ratio under 30%," explains Larry Wu, founder of UC
Asset. "We decided to further reduce our debt obligations when the
interest rate started to hike in the beginning of 2020. By the end
of last year, we had only about $800,000 outstanding debts. And
this month, we have paid all of them off."
Wu elaborates that being debt free will
eliminate the uncertainty of rising cost, in case that the interest
rate may continue to climb. The company may remain debt free for an
extended period until the interest rate will stabilize and starts
to decrease.
Meanwhile, rising interest rate has
moved the average return on equity (ROE) up. It means that UC Asset
may earn higher return on its equity investments, which consist of
the majority of UC Asset's portfolio.
UC Asset also holds about $600,000 debt
investment in its portfolio. As a result of interest rate hikes, UC
Asset has restructured major part of these debt investments to earn
higher interest incomes.
Wu confirms that UC Asset is on track
for its goal of $1 million annual gross profit. The company has
already realized $550,000 gross profit in the very first month of
the year.
UC Asset had been operationally
profitable in previous years, and it had managed to maintain steady
growth of gross profit. According to its filings, the company
reported gross profit of about $491,000 for the fiscal year of
2021, about $103,000 gross profit for the fiscal year of 2020, and
about $42,000 gross profit for the fiscal year of 2019.
Recently, UC Asset announces that that
the company has a plan to cut back the management team's payment
considerably for the year of 2023, and thus may increase the margin
of net income.
Management have indicated that the
company may distribute more dividend to its shareholders, if it
reports higher net income.
Last year, the company completed
distribution to its shareholders a cash dividend of $0.10 per
share.
About UC Asset
LP
UC Asset LP is a limited partnership
formed for the purpose of investing in real estate with innovative
strategies.
For more information about UC Asset,
please visit: www.ucasset.com
Disclaimer:
This News Release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements involve known and unknown risks, uncertainties and other
important factors that could cause our actual results, performance
or achievements, or industry results, to differ materially from any
these statements. You are cautioned not to place undue reliance on
any those forward-looking statements. Except as otherwise required
by the federal securities laws, we undertake no obligation to
publicly update or revise any forward-looking statements after the
date of this news release. None of such forward-looking statements
should be regarded as a representation by us or any other person
that the objectives and plans set forth in this News Release will
be achieved or be executed.
For More Information Contact:
IR@UCasset.com
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