Financial Performance - Total revenue for the fiscal year ended February 29, 2020, was HKD 1,297.686 million, a decrease from HKD 1,322.678 million in the previous year, representing a decline of 1.9%[9] - The pre-tax profit for the same period was HKD 444.930 million, down from HKD 524.122 million, reflecting a decrease of 15.1%[9] - The annual profit for the year was HKD 370.083 million, compared to HKD 437.254 million in the previous year, indicating a decline of 15.3%[9] - Earnings per share for the fiscal year was HKD 88.37, down from HKD 104.41, a decrease of 15.4%[9] - The group's revenue for the fiscal year was HKD 1,297,700,000, a decrease of 1.9% or HKD 25,000,000 compared to the previous fiscal year[18] - The pre-tax profit for the fiscal year was HKD 444,900,000, down HKD 79,200,000 from the previous fiscal year[18] - Net interest income for the fiscal year was HKD 1,047,400,000, a decrease of 0.7% or HKD 7,400,000 compared to the previous fiscal year[19] - Operating income for the fiscal year was HKD 1,225,200,000, a decrease of 1.6% or HKD 19,600,000 compared to the previous fiscal year[20] - Total comprehensive income for the year was HKD 307,151, a decrease of 34.3% compared to HKD 467,403 in 2019[151] Asset and Liability Management - Total assets as of February 29, 2020, were HKD 5,729.718 million, a decrease from HKD 6,180.684 million in the previous year[11] - Total liabilities decreased to HKD 2,416.176 million from HKD 2,990.037 million, reflecting a reduction of 19.2%[11] - The total equity as of February 29, 2020, was HKD 3,313,500,000, compared to HKD 3,190,600,000 as of February 28, 2019[24] - The net debt to equity ratio improved to 0.4 as of February 29, 2020, from 0.7 as of February 28, 2019[18] - The company's total non-current liabilities amounted to HKD 1,173,689 thousand, a decrease from HKD 1,608,449 thousand in the previous year, showing a reduction of 27%[153] Credit and Risk Management - Credit card and personal loan sales decreased by 5.3% during the fiscal year due to adverse economic conditions[13] - The group recorded a 27.0% increase in impairment losses and provisions, rising to HKD 258,700,000 from HKD 203,700,000 in the previous fiscal year[23] - Private loan receivables decreased by 14.3% from HKD 1,197,200,000 to HKD 1,025,900,000 due to cautious credit assessment and weakened market demand[26] - Credit card receivables fell by 6.9% or HKD 263,200,000 from HKD 3,842,300,000 to HKD 3,579,100,000, impacted by ATM service suspension and social events[26] - Impairment provisions increased by 19,000,000 to HKD 262,500,000, reflecting deteriorating asset quality[26] - The company has implemented a bad debt warning program to manage credit risk more effectively[13] - The company adopted a prudent approach to increase credit while controlling asset quality amid challenging market conditions[13] Operational Strategy and Investments - The company plans to continue investing in digital projects to enhance productivity and expand its customer base through more attractive promotional activities[13] - The company plans to focus on controlling asset quality and will temporarily suspend loan promotion activities until market conditions improve[33] - The company aims to improve customer experience by providing multiple payment channels, including convenience stores and online banking[39] - The company plans to focus on enhancing operational efficiency and exploring new market opportunities in the upcoming fiscal year[149] Employee and Training Initiatives - The number of employees decreased from 455 to 391, with 338 in Hong Kong and 53 in China as of February 29, 2020[37] - The company has implemented a comprehensive training program to enhance employee understanding of company values and compliance with legal regulations, including anti-money laundering measures[47] - The training programs saw a total of 66 courses conducted in 2019/20, down from 153 in 2018/19, with total training hours increasing from 985 to 4,938[59] - The number of employees trained increased from 1,501 in 2018/19 to 1,887 in 2019/20, with male participants rising from 51% to 56%[59] - The company maintained a zero fatality rate due to work-related incidents in both 2018/19 and 2019/20[62] Corporate Governance and Compliance - The board includes experienced members with over 30 years in marketing and finance, enhancing strategic decision-making capabilities[74][75][76][78][79] - The company has adopted a board diversity policy, recognizing the benefits of diversity in skills, experience, and perspectives, and aims to achieve a balanced board composition[85] - The company emphasizes high levels of corporate governance to balance the interests of shareholders, customers, employees, and other stakeholders[81] - The independent non-executive directors do not have any significant relationships with the company, ensuring their independence[87] - The company has established a risk management framework that includes credit, operational, market, liquidity, compliance, legal, and regulatory risks[103] Environmental and Social Responsibility - The total electricity consumption decreased by 131,613 kWh in the fiscal year 2019/20, representing a reduction of approximately 22.94% compared to the previous year[69] - The net greenhouse gas emissions from major sources decreased from 338.92 tons CO2 equivalent in 2018/19 to 321.549 tons CO2 equivalent in 2019/20[70] - The company has achieved a 34.27% adoption rate of electronic statements among customers, promoting a paperless office initiative[71] - The company has been awarded the "Caring Company" logo for thirteen consecutive years, reflecting its commitment to community support and environmental protection[67] - The company donated a total of HKD 630,000 to support educational projects through the AEON Scholarship, benefiting 85 students from various universities[65] Shareholder Engagement and Market Position - The company engages primarily in consumer financing, including credit card issuance, personal loan financing, payment processing services, and insurance agency and consultancy services[121] - The company has established various communication channels with shareholders, including annual general meetings and regular updates through reports and announcements[114] - The market capitalization of the company as of February 29, 2020, was HKD 2,508,000,000, with an issued share capital of 418,766,000 shares and a closing share price of HKD 5.99[116] - Cumulative revenue from the top five customers accounted for less than 30% of the total revenue for the year[124]

Financial Performance - The company reported total revenue of HKD 654,867,000 for the six months ended August 31, 2019, a slight increase of 0.2% compared to HKD 653,394,000 for the same period in 2018[7]. - Net interest income was HKD 529,493,000, up from HKD 524,807,000, reflecting a stable performance in interest earnings[7]. - The company recorded a profit for the period of HKD 190,394,000, down 17.7% from HKD 231,231,000 in the previous year[7]. - Basic earnings per share decreased to HKD 45.47 from HKD 55.22, indicating a decline in profitability[7]. - Total comprehensive income for the period was HKD 187,215,000, compared to HKD 235,045,000 in the prior year, showing a decrease of 20.3%[8]. - Cash generated from operating activities was HKD 396,893 thousand, up from HKD 388,855 thousand, indicating an increase of approximately 2.66%[12]. - The company reported a net cash increase of HKD 402,659 thousand for the period, compared to a decrease of HKD 95,941 thousand in the previous period[12]. - The total comprehensive income for the period was HKD 235,045 thousand, compared to HKD 142,917 thousand in the previous period, reflecting an increase of about 64.38%[11]. - The company declared an interim dividend of HKD 22.0 cents per share, totaling HKD 92,128,000[47]. - The company reported a net interest expense of HKD 37,788,000, down from HKD 42,866,000, a decrease of approximately 11.5%[38]. - The company recognized a loss of HKD 7,067,000 from lease modifications during the reporting period[43]. Assets and Liabilities - The company's total assets amounted to HKD 4,524,260,000, down from HKD 4,799,096,000 as of February 28, 2019[9]. - Total equity increased to HKD 3,285,734 thousand as of August 31, 2019, compared to HKD 3,190,647 thousand as of February 28, 2019, reflecting a growth of approximately 2.97%[10]. - Non-current liabilities decreased to HKD 1,238,526 thousand from HKD 1,608,449 thousand, representing a reduction of about 23.05%[10]. - The total amount of bank loans decreased to HKD 1,011,403 thousand from HKD 1,056,483 thousand, showing a decline of about 4.25%[10]. - The group's bank loans as of August 31, 2019, were HKD 1,216,403,000, down from HKD 1,381,483,000 as of February 28, 2019[69]. - The carrying value of bank loans as of August 31, 2019, was HKD 1,216,403,000, with a fair value of HKD 1,222,088,000[88]. Impairment and Credit Risk - The company reported a significant increase in impairment losses, with a provision of HKD 330,303,000 compared to HKD 93,462,000 in the previous period[7]. - The impairment provision for receivables as of August 31, 2019, was HKD 255,065,000, an increase from HKD 243,493,000 as of February 28, 2019, indicating a rise of approximately 4.76%[57]. - The total overdue customer loans and receivables exceeding one month amounted to HKD 231,307,000 as of August 31, 2019, representing 4.6% of total customer loans and receivables[59]. - The provision for credit losses increased due to changes in credit risk, impacting the expected credit losses by HKD 33,209,000 during the period[58]. - The group has sufficient provisions for expected credit losses in accordance with HKFRS 9, ensuring adequate control over credit risk[116]. Operational Developments - The company plans to focus on enhancing its digital services and expanding its market presence in the coming months[7]. - The management highlighted ongoing efforts in product development and technology upgrades to improve customer experience and operational efficiency[7]. - The group plans to launch online personal loans in the second half of FY2019/20, allowing customers to apply via a mobile app[104]. - Testing for a new credit card and loan system has begun, with plans to migrate selected merchants to the new system in Q4 of this year[104]. - The group opened two new flagship stores in prime locations to enhance brand image and customer experience[91]. Risk Management - The group faces significant foreign currency risk primarily from USD-denominated bank loans, but this risk is mitigated through currency swaps that convert foreign currency debt to functional currency[113]. - The group has implemented interest rate swaps to reduce cash flow interest rate risk by converting part of its floating-rate debt to fixed-rate[114]. - The group has adopted a risk management system to address operational risks, including internal and external events that may cause losses[120]. - The group has established a comprehensive liquidity risk management framework to effectively manage short-term, medium-term, and long-term financing needs[118]. Future Outlook - Future outlook indicates a projected growth rate of 8% for the next fiscal year, driven by market expansion strategies[134]. - AEON plans to invest HKD 200 million in new product development and technology enhancements over the next two years[134]. - The company is exploring potential acquisitions to enhance its market presence, targeting a 5% increase in market share[134]. - AEON's anticipated credit losses are expected to decrease by 20% due to improved risk management practices[134]. - The company aims to expand its footprint in the Asia-Pacific region, with plans to open 10 new stores by the end of the fiscal year[134]. Shareholder Information - As of August 31, 2019, the group had issued and fully paid 418,766,000 shares, amounting to HKD 269,477,000 in share capital[78]. - AEON Japan holds 67.13% of the company's issued share capital with 281,138,000 shares[124]. - AFS owns 52.86% of the issued share capital, totaling 221,364,000 shares[124]. - FMR LLC holds 8.00% of the issued share capital with 33,508,000 shares[124]. - The board has approved a dividend payout of HKD 0.50 per share, representing a 25% increase from the previous year[134].

Financial Performance - For the fiscal year ending February 28, 2019, AEON Credit Service reported total revenue of HKD 1,322.68 million, representing a growth from HKD 1,282.87 million in the previous year, an increase of approximately 3.1%[26] - The company achieved a profit before tax of HKD 524.12 million, up from HKD 447.27 million in the prior year, reflecting a growth of about 17.2%[26] - Net profit for the year was HKD 437.25 million, compared to HKD 371.15 million in the previous year, marking an increase of approximately 17.8%[26] - Earnings per share rose to 104.41 HKD cents, up from 88.63 HKD cents, indicating a growth of around 18%[26] - The total revenue for the fiscal year was HKD 1,322.7 million, reflecting a 3.1% increase from HKD 1,282.9 million in the previous fiscal year[33] - The group’s net profit for the fiscal year ending February 28, 2019, rose to HKD 437.3 million, a 17.8% increase from HKD 371.1 million in the previous year[33] - The net interest income increased by 2.3% to HKD 1,054.9 million, compared to HKD 1,031.3 million in the previous year[34] - The operating income for the fiscal year was HKD 1,244.7 million, up 3.4% from HKD 1,203.8 million in the previous year[35] - The group’s return on assets increased to 7.1% from 6.0% in the previous year, while the return on equity rose to 13.7% from 12.3%[33] - Total comprehensive income for the year was HKD 467,403,000, compared to HKD 430,476,000 in the previous year, indicating a growth of 8.6%[161] Assets and Equity - Total assets as of February 28, 2019, were HKD 6,180.68 million, a slight decrease from HKD 6,192.98 million in the previous year[28] - The total equity increased to HKD 3,190.65 million from HKD 3,005.04 million, representing a growth of approximately 6.2%[28] - Customer loans and receivables decreased to HKD 1,197,200,000, a decline of 13.0% from HKD 1,375,900,000[39] - Credit card receivables increased by 0.9% or HKD 34,100,000 to HKD 3,842,300,000, driven by an expanded customer base and stimulated credit card spending[39] - Total equity as of February 28, 2019, increased by 6.2% or HKD 185,600,000 to HKD 3,190,600,000 compared to the previous year[38] Dividends and Payouts - The company declared a final dividend of 44.00 HKD cents per share for the fiscal year, consistent with the previous year's dividend[26] - The group’s dividend payout ratio for the fiscal year was 42.1%, with a proposed final dividend of HKD 0.22 per share, up from HKD 0.42 per share in the previous year[32] Market and Operational Strategy - The company plans to continue investing in digital development to enhance productivity and expand its customer base[29] - AEON Credit Service is closely monitoring market conditions due to uncertainties from the US-China trade war and rising interest rates, adopting precautionary measures accordingly[29] - The group plans to invest approximately HKD 480 million over the next ten years to upgrade its credit card and loan systems, aiming to enhance operational efficiency and reduce costs[31] - The group has launched various marketing campaigns that have been well received among customers, aiming to enhance the brand image in Japan[45] - The group has established a data analytics team to improve data analysis capabilities, which is expected to enhance marketing and credit approval processes[44] Employee and Training Initiatives - The total number of employees was 455, a decrease from 575 the previous year, indicating a reduction in workforce[47] - The company has been actively providing training programs to enhance employee skills and promote professional development since 2008[70] - The company has established a robust employee training and development policy, with the latest revision in 2011 to meet evolving training needs[70] - In the fiscal year 2018/19, the total number of training courses increased to 985, with a total training duration of 1,501 hours, compared to 558 courses and 1,905 hours in the previous year[71] Environmental and Social Responsibility - The company has maintained a commitment to environmental standards and has obtained ISO 14001 certification for its environmental management system[82] - The company encourages and supports environmental activities, reforestation, and other related social programs[82] - Total electricity consumption decreased by 97,320 kWh in the fiscal year 2018/19, primarily due to effective energy-saving policies and employee cooperation, resulting in a 14.5% reduction in office and branch electricity usage[85] - The total greenhouse gas emissions from major sources were 344.606 tons of CO2 equivalent in the fiscal year 2018/19, down from 397.462 tons in the previous year, reflecting a significant reduction in emissions[86] - The company donated a total of HKD 1,190,000 to support educational projects during the year, providing scholarships to 70 students across various universities[80] Corporate Governance - The company has maintained high levels of corporate governance, adhering to the corporate governance code, except for specific provisions regarding the appointment and rotation of non-executive directors[94] - The board consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors, complying with the requirement for at least three independent non-executive directors[95] - The company has established a risk management framework that includes credit, operational, market, liquidity, compliance, legal, and regulatory risks[115] - The company has established a whistleblowing policy to maintain high standards of integrity, allowing employees and stakeholders to report suspected misconduct confidentially[118] Financial Reporting and Compliance - The financial statements for the year ended February 28, 2019, were audited by Deloitte, reflecting a true and fair view of the group's financial position[149] - The independent auditor confirmed compliance with Hong Kong Financial Reporting Standards in the audit of the consolidated financial statements[150] - The company’s financial reporting process is overseen by management, ensuring compliance with HKFRS and the Companies Ordinance[155] - The company has not early adopted new Hong Kong Financial Reporting Standards that are not yet effective, including HKFRS 16 on leases[188] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to enhance its service offerings[1] - The group maintains a strong position in the Hong Kong market and is optimistic about future performance, expecting satisfactory results in the fiscal year 2019/20[45]