ATLANTA, Feb. 16, 2023 /PRNewswire/ -- 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: +1 470-475-1035, IR @UCasset.com
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SOURCE UC Asset LP
