Letter To Shareholders (1) - Performance Review 2015Q4

We are proud to present the 1st issue of ZZ Holdings Shareholders Letter, a brand new effort to bring regular updates to its shareholders. ZZ Holdings is a private investment holding company aimed at achieving long term financial growth and capital protection for its investors. We achieve this with our unique 3-pillar management strategy - strong cashflow generation, long-term sustainability and fortress balance sheet.

Strong Cashflow Generation

We invest in companies with predictable cash-flow and strong dividends record. A steady cash flow offsets expenses in good times, and sustain the company in bad times without dipping into reserves.

Long Term Sustainability

We invest with a long-term view, avoiding market speculation and short term economic trends. We invest in quality companies that will still be profitable far in the future, and limit our exposure to cyclical industries and unproven startups.

Fortress Balance Sheet

We never overstretch, always maintaining a fortress-like balance sheet to give investors peace of mind and more importantly, capitalize on downswings and opportunities. Our reserves grants us exceptional holding power, ensuring the company can withstand any crisis and emerge stronger.

-----------------------------------------------------------------------------------------------------------------------

Streamlining Operations

In late 2015 and early 2016, the company streamlined its financial accounts by closing OCBC Bonus+ (which pared down its interest significantly) and other legacy savings accounts. CIMB StarSaver was also vacated in favor of the higher interests and no frills FastSaver. Following this, our funds are now parked in CIMB FastSaver and OCBC360, generating risk-free interest of 1% to 1.75%.

The company also applied for its first credit facility, the AMEX, in Nov 2015. AMEX provides a 1.5% true cashback rebate, and we are already reaping its benefits.

Performance Highlights

2015 was a bear market year, with the STI losing over 13% of its value. Comparatively, the company made losses of 12.2%. In light of its 5-year low valuation, we brought into the STI for the first time in 2015Q4 as we believe it represents the most prudent investment at the moment. Going forward, the STI is expected to become the core holding in the company, supplemented by other higher yielding investments.

The board is glad to announce that over $2400 total dividends has been paid out in 2015, our first full year since listing. This is in line with our initial forecast of $200/month in our prospectus.

Outlook

The global economy and market is expected to remain volatile, with possible recession looming in the horizon. The company may also lose its main source of revenue in 2016Q2. Despite the challenging outlook, ZZ Holdings remains committed to actively pursue a replacement that will enhance shareholder value.