Financial Performance - Revenue for the nine months ended November 30, 2022, was HKD 887,361,000, representing a 15.2% increase from HKD 770,280,000 in the same period last year[1]. - Profit for the period was HKD 250,314,000, up from HKD 243,256,000, indicating a 2.3% increase year-on-year[2]. - Total comprehensive income for the period reached HKD 292,255,000, compared to HKD 236,522,000 in the previous year, marking a 23.5% rise[2]. - The group reported a profit before tax of HKD 299,664,000 for the period, compared to HKD 291,839,000 in the prior year, reflecting a growth of approximately 2.5%[12]. - Revenue for the reporting period was HKD 887.4 million, representing an increase of HKD 117.1 million or 15.2% year-on-year[30]. - Net interest income for the reporting period was HKD 715.8 million, an increase of 14.1% or HKD 88.7 million compared to the previous year[31]. - Operating income increased to HKD 878.3 million for the nine months, up HKD 131.5 million from HKD 746.8 million in the previous year[32]. - The group recorded an operating profit of HKD 380.7 million for the nine months of the fiscal year 2022/2023, an increase of 17% compared to HKD 325.3 million in the same period last year[33]. Assets and Equity - Total assets as of November 30, 2022, amounted to HKD 4,634,667,000, up from HKD 4,057,168,000, reflecting a 14.2% increase[3]. - The company's equity totalled HKD 3,741,541,000, an increase from HKD 3,633,542,000, representing a growth of 3.0%[4]. - The total amount of customer loans and receivables reached HKD 5,277.2 million as of November 30, 2022, up from HKD 4,274.6 million as of February 28, 2022[36]. - Total assets increased by 18.8% from HKD 5,089.6 million as of February 28, 2022, to HKD 6,045.6 million as of November 30, 2022[35]. Customer Loans and Receivables - Customer loans and receivables increased significantly to HKD 1,081,108,000 from HKD 750,797,000, a growth of 43.9%[3]. - The total customer loans and receivables amounted to HKD 5,277,168,000, an increase from HKD 4,209,886,000 in the previous year, marking a growth of about 25.3%[19]. - The group’s credit card receivables were HKD 4,047,100,000, up from HKD 3,304,452,000 in the previous year, indicating a growth of approximately 22.4%[19]. - Personal loan receivables rose by HKD 247 million to HKD 1,152.4 million as of November 30, 2022, driven by successful marketing and brand building[36]. Operating Expenses - The group’s operating expenses totaled HKD 497,615,000, compared to HKD 421,475,000 in the previous year, representing an increase of approximately 18.0%[17]. - Total operating expenses rose to HKD 497.6 million, an increase of HKD 76.1 million or 18.1% compared to the previous year, with the expense-to-revenue ratio slightly increasing to 56.7%[32]. Cash Flow - For the nine months ended November 30, 2022, the net cash generated from operating activities was a negative HKD 652,527,000, compared to a positive HKD 95,484,000 for the same period in 2021[7]. - The net cash used in financing activities was HKD 620,326,000, contrasting with a negative cash flow of HKD 385,145,000 in the same period last year[7]. - The cash and cash equivalents at the end of the period were HKD 558,132,000, a decrease from HKD 531,287,000 at the end of the previous year[7]. Impairment and Provisions - The total amount of impairment provisions as of November 30, 2022, was HKD 199,438 thousand, with HKD 90,418 thousand in Stage 1, HKD 26,923 thousand in Stage 2, and HKD 82,097 thousand in Stage 3[21]. - Impairment losses and provisions increased by 115.6% from HKD 65 million in the previous fiscal year to HKD 140.2 million in the current fiscal year[33]. Revenue Segments - Credit card segment revenue reached HKD 694,582,000, up from HKD 611,204,000 in the previous year, indicating a year-over-year increase of about 13.6%[12]. - The group’s insurance segment revenue was HKD 19,287,000, down from HKD 21,047,000 in the previous year, reflecting a decline of about 8.4%[12]. - Revenue from Hong Kong operations increased by HKD 114,100,000 or 15.1%, from HKD 757,300,000 to HKD 871,400,000[42]. - Mainland China business revenue rose from HKD 13,000,000 to HKD 16,000,000, an increase of HKD 3,000,000 or 23.08%[43]. Strategic Initiatives - The company launched promotional activities, including a "Japan Travel Spending Reward" program, to stimulate overseas consumer spending[25]. - The group signed a new distribution partnership with An Dan Life Insurance to expand offline and online insurance sales channels, enhancing customer access to various insurance products[27]. - The group established a sustainable performance-linked loan framework, signing three agreements totaling HKD 320 million for a three-year term, marking its first sustainable financing initiative[28]. - Significant resources will be invested in digitization to improve internal business processes and sustainability[45].

Financial Performance - Revenue for the six months ended August 31, 2022, was HKD 571,730,000, an increase of 11.8% compared to HKD 511,570,000 for the same period in 2021[4] - Net interest income rose to HKD 463,632,000, up 11.1% from HKD 417,047,000 year-on-year[4] - Profit before tax for the period was HKD 211,111,000, slightly up from HKD 206,999,000 in the previous year, representing a growth of 1.1%[4] - The company reported a net profit of HKD 176,774,000, compared to HKD 172,340,000 for the same period last year, reflecting a 2.5% increase[4] - The company reported a total comprehensive income of HKD 209,026,000 for the period, compared to HKD 155,581,000 in the previous year, indicating a substantial increase of 34.3%[6] - The company reported a net profit of HKD 172,340,000 for the six months ended August 31, 2022, compared to HKD 176,774,000 in the same period of 2021, showing a slight decline of about 2.5%[9] - The company achieved a net profit of HKD 176.8 million for the first half of 2022, a 2.6% increase from HKD 172.3 million in the same period last year[67] Assets and Equity - Total assets as of August 31, 2022, amounted to HKD 4,809,988,000, an increase from HKD 4,599,202,000 as of February 28, 2022[8] - The company's total equity rose to HKD 3,750,440,000, compared to HKD 3,633,542,000 at the end of February 2022, marking a 3.2% increase[8] - Non-current assets totaled HKD 1,277,503,000, compared to HKD 1,032,388,000 as of February 28, 2022, reflecting a significant increase of 23.7%[7] - The total amount of customer loans and receivables, net of impairment, was HKD 4,822,040 as of August 31, 2022, compared to HKD 4,635,063 as of February 28, 2022[32] - The total amount of customer loans and receivables increased by HKD 2,476 during the reporting period, with specific transfers between credit loss stages impacting the overall provision[37] Cash Flow and Dividends - The net cash generated from operating activities was a negative HKD 312,019,000 for the six months ended August 31, 2022, compared to a positive HKD 169,447,000 in the same period of 2021[10] - The company declared a final dividend of HKD 92,128,000 for the year ended February 28, 2022, compared to HKD 75,378,000 for the previous year, representing an increase of about 22.2%[9] - The company declared an interim dividend of HKD 22.0 per share, totaling HKD 92,128,000, compared to HKD 75,378,000 in the previous year[27] Customer Loans and Receivables - Customer loans and receivables increased to HKD 3,670,897,000, up from HKD 3,342,610,000, indicating a growth of 9.8%[7] - The company reported a non-credit impaired customer loan balance of HKD 475,725,000, an increase from HKD 426,917,000 year-on-year[22] - The total overdue customer loans and receivables exceeding one month amounted to HKD 131,474, representing 2.8% of total customer loans and receivables as of August 31, 2022, compared to HKD 145,595 and 3.5% as of February 28, 2022[38] Expenses and Costs - The company reported a total of HKD 323,464,000 in employee costs, an increase from HKD 274,974,000 in the previous year[24] - Overall operating expenses increased by 17.6% or HKD 48,500,000 to HKD 323,500,000, with the expense-to-revenue ratio slightly rising from 55.7% to 56.5%[71] - Impairment losses and provisions surged by 157% or HKD 54,700,000 to HKD 89,500,000 due to weak economic indicators and a significant rise in customer loans and receivables[72] Risk Management - The group has established a risk management system to monitor and control market risk, credit risk, liquidity risk, equity risk, operational risk, and cybersecurity risk[96] - The group utilizes cross-currency swaps to hedge foreign currency debt, effectively transferring foreign currency liabilities to functional currency[98] - The group has implemented policies and systems to monitor and control credit risk, significantly reducing the overall credit risk exposure[99] Market and Business Strategy - The company plans to maintain sales and receivables growth momentum while closely monitoring asset quality in a competitive market[80] - The company aims to enhance customer relationship management and promote customer interaction through various channels[80] - The company’s credit card and personal loan businesses will continue to see large promotional campaigns to capture rising consumer demand[80] Shareholder Information - The total issued share capital as of August 31, 2022, was 269,477 thousand HKD, with 418,766,000 shares outstanding[53] - Major shareholders include AEON Japan with 286,088,000 shares (68.32% of issued capital) and AFS with 226,314,000 shares (54.04% of issued capital)[108] - The company has not purchased, sold, or redeemed any of its listed shares during the period[111] Compliance and Governance - The board of directors confirmed compliance with the standard code of conduct during the review period[106] - The company’s financial statements were reviewed by Deloitte, confirming no significant issues were found[115]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 （股份代號︰900） （於香港註冊成立之有限公司） AEON 信貸財務（亞洲）有限公司 AEON CREDIT SERVICE (ASIA) COMPANY LIMITED 截至二零二二年五月三十一日止三個月之未經審核業績 AEON信貸財務（亞 洲）有限公司（「本 公 司」）董事會欣然宣佈本公司及其附屬公 司（「本 集 團」）截 至 二 零 二 二 年 五 月 三 十 一 日 止 三 個 月 之 未 經 審 核 綜 合 業 績，連 同 上 期 比 較 數 字 如 下： 簡明綜合損益表 截至二零二二年五月三十一日止三個月 | --- | --- | --- | --- | |----------------------------------------------------------------------------------------- ...

Financial Performance - Total revenue for the fiscal year 2022 was HKD 1,049,589 million, a decrease from HKD 1,089,858 million in 2021[22]. - The annual profit for 2022 was HKD 342,592 million, compared to HKD 301,575 million in 2021, reflecting an increase of approximately 13.6%[22]. - Earnings per share for 2022 were HKD 81.81 cents, up from HKD 72.02 cents in 2021, representing a growth of 13.5%[22]. - Total revenue for the year was HKD 1,049.6 million, a decrease of 3.7% or HKD 40.3 million from the previous fiscal year[29]. - Net interest income decreased by 6.3% to HKD 847.4 million, down from HKD 904.6 million in the previous year[30]. - The group’s operational income for the fiscal year 2021/22 was HKD 1,020.5 million, a decline of 4.0% compared to HKD 1,063.1 million in the previous year[32]. - The group recorded a pre-tax profit of HKD 398 million, an increase of HKD 40.1 million from the previous fiscal year, resulting in a net profit growth of 13.6%[29]. - The total comprehensive income for the year was HKD 379,018, up from HKD 292,744, indicating a significant increase of 29.4%[186]. Assets and Equity - Total assets as of February 28, 2022, were HKD 5,089,556 million, a slight decrease from HKD 5,083,366 million in 2021[23]. - The total equity as of February 28, 2022, was HKD 3,633,542 million, an increase from HKD 3,422,030 million in 2021, indicating a growth of approximately 6.2%[23]. - As of February 28, 2022, the company's net asset value was HKD 3,633,500,000, an increase from HKD 3,422,000,000 on February 28, 2021, reflecting a growth of approximately 6.2%[44]. - The net debt-to-equity ratio as of February 28, 2022, was 0.1, unchanged from the previous year[153]. Customer Loans and Receivables - The group's overall sales increased by 21.1% compared to the fiscal year 2020/21, with total customer loans and receivables rising by 5.2% as of February 28, 2022[25]. - Total customer loans and receivables increased by HKD 212.3 million to HKD 4,274.6 million, with personal loans rising by 15.9% to HKD 905.4 million[37]. - The overdue customer loans and receivables ratio decreased from 4.1% to 3.5% year-on-year, indicating improved credit quality[25]. - The impairment provision balance as of February 28, 2022, was approximately HKD 181,143,000, with HKD 94,095,000 deducted in the consolidated income statement for the year ended February 28, 2022[179]. - The expected credit loss model is applied based on a three-stage process, with the expected credit loss calculated using individual assessments and/or a provisioning matrix based on internal credit ratings[179]. Dividends - The company declared an interim dividend of HKD 0.22 per share for the fiscal year 2022[21]. - The group plans to maintain a stable dividend policy with a target payout ratio of no less than 30% of the fiscal year's consolidated net profit, proposing a final dividend of HKD 0.22 per share[28]. - The proposed final dividend is HKD 0.22 per share, totaling HKD 92,128,000, an increase from HKD 0.18 per share in the previous year, totaling HKD 75,378,000[155]. - The company declared dividends totaling HKD 92,128 thousand for the year, consistent with the previous year[189]. Operational Challenges and Strategies - The company faced challenges due to the ongoing COVID-19 pandemic but saw a rebound in local consumer spending during the first three quarters of the fiscal year[24]. - The demand for anti-epidemic products increased significantly as consumer behavior shifted back to online shopping in response to tightened social distancing measures in the fourth quarter[24]. - The company plans to continue focusing on market expansion and adapting to changing consumer preferences in the post-pandemic environment[24]. - The management remains optimistic about returning to a stable growth trajectory despite the challenges faced during the fiscal year[24]. - The company anticipates continued challenges in the operating environment due to geopolitical and economic conflicts, impacting business activities in Hong Kong[46]. Employee and Training Initiatives - The total number of employees increased from 379 on February 28, 2021, to 510 on February 28, 2022, with 358 based in Hong Kong and 152 in mainland China[50]. - The company has implemented various training programs to enhance employee skills and ensure high-quality customer service[50]. - Total training hours increased from 4,938 in 2020/21 to 8,034 in 2021/22, representing a growth of approximately 62.5%[83]. - The number of employees trained rose from 1,887 in 2020/21 to 2,737 in 2021/22, an increase of about 45%[83]. - The company has a comprehensive onboarding training program for new employees to understand its corporate values and compliance standards[79]. Sustainability and Corporate Governance - The company established a Sustainability Committee that held four meetings and reported five times to the Board during the fiscal year ending February 28, 2022[59]. - The company conducted a comprehensive materiality assessment to identify key sustainability issues impacting its operations and stakeholders[60]. - Eight key sustainability focus areas were developed, including customer-centricity, corporate governance, and environmental protection[61]. - The company is committed to maintaining high standards of corporate governance and social responsibility, ensuring compliance with applicable laws and regulations[63]. - The company has implemented a risk-based approach to establish effective anti-money laundering and counter-terrorist financing systems, with no violations reported for the fiscal year ending February 28, 2022[64]. Risk Management and Internal Controls - The company has established a corporate risk management framework that includes credit, operational, market, liquidity, compliance, legal, and regulatory risks[134]. - The internal control system is designed to prevent unauthorized use or disposal of the group's assets and ensure reliable financial reporting[134]. - The company has established a three-line defense risk management model, including operational units, risk management department, and internal audit department[135]. - No significant internal control deficiencies were found during the year, and appropriate measures have been taken based on recommendations from internal auditors and external auditors[136]. - The company has implemented a whistleblowing policy to maintain high standards of integrity and accountability, ensuring confidentiality for whistleblowers[137]. Shareholder Communication and Corporate Structure - The company held its annual general meeting on June 25, 2021, with all board members and key executives in attendance[146]. - The company has established various communication channels with shareholders, including annual general meetings and regular meetings with investors and analysts[145]. - The company’s board of directors is required to retire at the annual general meeting in 2022 but is eligible for re-election[159]. - The board consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors, complying with the requirement of at least one-third independent non-executive directors[113]. Financial Reporting and Compliance - The company’s financial statements for the year ended February 28, 2022, were audited by Deloitte, confirming compliance with Hong Kong Financial Reporting Standards[176]. - The application of revised Hong Kong Financial Reporting Standards did not have a significant impact on the financial position and performance of the company for the current and prior years[3]. - The company’s financial reporting adheres to the applicable disclosure requirements set forth by listing rules and company ordinances[8]. - The auditors identified and assessed risks of material misstatement in the consolidated financial statements due to fraud or error, implementing audit procedures to address these risks[182].

Financial Performance - Revenue for the six months ended August 31, 2021, was HKD 511,570,000, a decrease of 11% compared to HKD 574,460,000 for the same period in 2020[5] - Net interest income decreased to HKD 417,047,000 from HKD 474,553,000, reflecting a decline of 12% year-over-year[5] - Operating profit before impairment losses was HKD 219,133,000, down from HKD 301,873,000, representing a decrease of 27%[5] - Profit for the period attributable to owners of the company increased to HKD 172,340,000, compared to HKD 152,401,000, marking an increase of 13%[5] - Basic earnings per share rose to HKD 41.15 from HKD 36.39, an increase of 13%[5] - The company reported a net profit of HKD 172,340,000 for the six months ending August 31, 2021, compared to HKD 152,401,000 for the same period in the previous year, representing a growth of approximately 13.1%[9] - The company reported a pre-tax profit of HKD 206,999,000 for the period, compared to HKD 181,640,000 in the same period of the previous year, indicating an increase of approximately 14%[24] - Net profit after tax rose by 13.1% from HKD 152.4 million in the first half of 2020 to HKD 172.3 million in the first half of 2021[71] Assets and Liabilities - Total assets as of August 31, 2021, were HKD 4,298,722,000, compared to HKD 4,141,605,000 as of February 28, 2021, indicating an increase of 4%[8] - Non-current assets decreased to HKD 893,990,000 from HKD 882,362,000, a decline of 1%[7] - Current liabilities decreased to HKD 843,723,000 from HKD 941,761,000, a reduction of 10%[7] - The company’s equity increased to HKD 3,502,233,000 from HKD 3,422,030,000, reflecting an increase of 2%[8] - The total amount of customer loans and receivables was HKD 4,058,860,000 as of August 31, 2021, slightly down from HKD 4,062,272,000 at the end of the previous period[37] - The total amount of fixed deposits as of August 31, 2021, was HKD 383,351,000, compared to HKD 135,302,000 as of February 28, 2021[45] - The company’s total bank loans amounted to HKD 1,186,511,000, an increase from HKD 1,182,881,000 as of February 28, 2021, representing a growth of approximately 0.3%[50] Cash Flow and Dividends - Cash generated from operating activities was HKD 169,447,000, a significant decrease from HKD 734,855,000 in the previous year, indicating a decline of approximately 77.0%[10] - The company ended the period with cash and cash equivalents of HKD 681,882,000, down from HKD 816,932,000 at the end of the previous year[10] - The company declared a final dividend of HKD 75,378,000 for the fiscal year 2020/21, compared to HKD 92,128,000 in the previous year, reflecting a decrease of approximately 18.2%[9] - The company declared an interim dividend of HKD 0.22 per share, totaling HKD 92,128,000, compared to HKD 0.18 per share and HKD 75,378,000 for the previous period[32] Operational Expenses - Total operating expenses for the period were HKD 274,974,000, an increase from HKD 257,536,000 in the previous year, reflecting a rise of about 6.7%[8] - The company’s general administrative expenses increased to HKD 81,060,000 from HKD 77,643,000, marking an increase of about 4.9%[8] - The company’s market and promotional expenses rose significantly to HKD 43,529,000 from HKD 26,494,000, indicating a growth of approximately 64.4%[8] - Operating expenses rose by 6.8% or HKD 17,400,000 to HKD 275,000,000, with the expense-to-revenue ratio increasing from 46.0% to 55.7%[74] Credit and Loans - Revenue from credit card services was HKD 405,533,000, while private loans generated HKD 91,894,000, and insurance services contributed HKD 14,143,000, totaling HKD 511,570,000[21] - The company’s overdue customer loans as a percentage of total customer loans decreased from 4.8% in August 2020 to 3.4% in August 2021[68] - The total overdue customer loans and receivables exceeding one month amounted to HKD 136,817,000 as of August 31, 2021, accounting for 3.4% of total customer loans and receivables[43] - Credit card business accounted for 79.3% of total revenue, while private loans accounted for 18.0%[79] Risk Management and Compliance - The company has established policies and procedures to measure, monitor, and control various financial risks, including market risk and interest rate risk[89] - The group has implemented measures to manage liquidity risk, ensuring sufficient reserves and monitoring cash flow forecasts[94] - The group has established an operational risk management system to identify, assess, and mitigate various inherent risks, including process and information security risks[96] - The group has invested resources in cybersecurity risk management to enhance its network defense capabilities and regularly conducts assessments to evaluate the robustness of its cybersecurity measures[97] - The company is committed to maintaining compliance with the Securities and Futures Ordinance in Hong Kong[112] Corporate Governance - The company has adhered to corporate governance codes, although it has exceptions regarding the appointment and rotation of non-executive directors[98] - The company’s board of directors underwent several changes, including the appointment of new non-executive directors[103][104] - The company’s financial statements must comply with Hong Kong Accounting Standards[108] - The company’s directors are responsible for preparing and presenting the financial statements according to the relevant standards[109] Future Outlook and Strategy - The company anticipates an increase in vaccination rates due to more incentives for vaccination, although the emergence of the Delta variant may hinder the recovery of normal social activities and overseas travel[83] - The company plans to enhance data analysis to strengthen marketing and credit control activities, with a focus on increasing promotional activities for credit cards and personal loans[83] - The company aims to allocate more resources to improve the IT infrastructure of its Shenzhen operations to enhance profitability while maintaining reasonable asset quality[84] - The company will continue to invest significantly in digitalization to improve operational efficiency and adapt to market changes[83]

Financial Performance - For the fiscal year ending February 28, 2021, total revenue was HKD 1,089,858,000, a decrease of 13.7% compared to the previous year[7] - The company reported a net profit of HKD 301,575,000 for the fiscal year, reflecting a decline from HKD 370,083,000 in the previous year[7] - Earnings per share decreased to HKD 72.02 from HKD 88.37 in the prior year[7] - The group's revenue for the fiscal year was HKD 1,089,900,000, a decrease of 16.0% or HKD 207,800,000 compared to the previous fiscal year[15] - The pre-tax profit for the fiscal year was HKD 357,900,000, down HKD 87,000,000 from the previous fiscal year, resulting in a post-tax profit decrease of 18.5% to HKD 301,600,000[14] - The net interest income for the fiscal year was HKD 904,600,000, a decrease of 13.6% or HKD 142,800,000 compared to the previous fiscal year[16] - The company recorded a decrease in credit card fees and commissions by 30.7% to HKD 52,300,000 due to a decline in credit card sales[17] - The company achieved ISO 9001 certification for quality management, ISO 14001 for environmental management, and ISO 27001 for information security management, demonstrating its commitment to continuous improvement in service quality and operational efficiency[47] Assets and Liabilities - The total assets as of February 28, 2021, were HKD 5,083,366,000, down from HKD 6,180,684,000 in the previous year[9] - The total liabilities decreased to HKD 1,661,336,000 from HKD 2,416,176,000 in the previous year[9] - The total equity as of February 28, 2021, was HKD 3,422,000,000, an increase from HKD 3,313,500,000 as of February 29, 2020[21] - The customer loans and receivables decreased by HKD 628,200,000 compared to the previous year, indicating a challenging lending environment[16] - The impairment losses and provisions decreased by 18.5% or HKD 47,900,000 to HKD 210,800,000, reflecting improved asset quality[20] Business Strategy and Operations - The company experienced a 13.7% decline in credit card and personal loan sales due to the pandemic's impact on consumer behavior[11] - The company prioritized investment in digitalization to enhance capabilities across its business sectors[11] - The company is developing new credit card and loan systems to prepare for further technological upgrades in the payment industry[11] - The company closed three branches during the year, including its flagship branch in Mong Kok, and shifted its strategy to focus on customer-dense department stores[12] - The company plans to enhance digital transformation and improve data analytics for better marketing and credit management[32] - The company aims to explore new payment solutions to expand its business scope and market coverage[32] Dividends and Shareholder Returns - The company distributed an interim dividend of HKD 0.22 per share and a final dividend of HKD 0.18 per share, pending shareholder approval[6] - The company implemented a stable dividend policy with a proposed final dividend of HKD 0.18 per share, resulting in a total annual dividend of HKD 0.40 per share and a payout ratio of 55.5%[13] - The interim dividend paid to shareholders was HKD 0.22 per share, totaling HKD 92,128,000, consistent with the previous year[138] - The proposed final dividend is HKD 0.18 per share, totaling HKD 75,378,000, down from HKD 0.22 per share in the previous year[138] Employee and Community Engagement - As of February 28, 2021, the total number of employees was 379, with 334 in Hong Kong and 45 in China, down from 391 the previous year[36] - The employee turnover rate was 15% as of February 28, 2021, with gender distribution being 7% male and 8% female[65] - The company provided a total of HKD 472,000 in donations to support university students through the AEON scholarship program during the reporting year[61] - Credit card holders raised donations worth HKD 27,100 through the points donation program to support the conservation work of WWF-Hong Kong during the reporting year[60] - The company supports community development and quality of life improvement initiatives, contributing to local projects and activities[58] Environmental and Social Responsibility - The company reported a total greenhouse gas emission of 239.87 tons of CO2 equivalent for the fiscal year ending February 28, 2021[76] - The company has implemented a paperless operation strategy, encouraging electronic communication and online applications for credit card services[77] - The company has received ISO 14001 environmental management system certification since 2009, demonstrating its commitment to environmental compliance[74] - The company has not reported any significant impact on the environment or natural resources during the fiscal year ending February 28, 2021[74] - The company has established a health and safety system to ensure employee well-being, with no reported claims related to occupational health and safety standards violations[73] Governance and Compliance - The company is committed to maintaining high levels of corporate governance, having complied with the corporate governance code for the year ending February 28, 2021, except for specific provisions regarding the appointment and rotation of non-executive directors[89] - The board consists of nine members, including four executive directors, one non-executive director, and four independent non-executive directors, complying with the requirement of at least three independent non-executive directors[92] - The company has established a robust risk management and internal control system to ensure effective governance and compliance with applicable laws and regulations[114] - The company has implemented a whistleblowing policy to maintain high standards of integrity and accountability, ensuring confidentiality for reporters[118] - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of February 28, 2021[162] Risk Management - The risk management framework includes credit, operational, market, liquidity, compliance, legal, and regulatory risks, with continuous monitoring by the risk management committee[115] - The internal audit department conducts regular audits of financial, operational, and compliance controls, with significant findings reported monthly to the board[120] - No major internal control deficiencies were identified during the year, and appropriate measures were taken to address areas for improvement[117] Future Outlook - The company anticipates a rebound in economic activity in Hong Kong in the second half of the fiscal year 2021/22 if the pandemic is controlled[32] - The company is prepared to face future challenges and seize new opportunities as market conditions normalize, supported by strong liquidity and a solid balance sheet[34]

Financial Performance - Revenue for the six months ended August 31, 2020, was HKD 574,460,000, a decrease of 12.3% compared to HKD 654,867,000 for the same period in 2019[5]. - Net interest income decreased to HKD 474,553,000 from HKD 529,493,000, reflecting a decline of 10.4%[5]. - Profit for the period was HKD 152,401,000, down 20% from HKD 190,394,000 in the previous year[5]. - Basic earnings per share decreased to HKD 36.39 from HKD 45.47, representing a decline of 19.9%[5]. - Total comprehensive income for the period was HKD 171,634,000, compared to HKD 187,215,000 in the prior year, a decrease of 8.3%[6]. - Total revenue for the six months ended August 31, 2020, was HKD 574,460,000, a decrease of 12.3% compared to HKD 654,867,000 for the same period in 2019[16]. - Interest income decreased to HKD 498,644,000, down 12.1% from HKD 567,281,000 year-over-year[16]. - The pre-tax profit for the period from March 1, 2020, to August 31, 2020, was HKD 181,640,000, compared to HKD 230,371,000 in 2019, reflecting a decline of approximately 21.1%[21]. - The company reported a total comprehensive income of HKD 171,634,000 for the period, compared to HKD 190,394,000 in the prior period, reflecting a decrease of 9.8%[9]. - The net profit after tax decreased by 20.0%, from HKD 190.4 million in the previous year to HKD 152.4 million in the current period[79]. Assets and Liabilities - Non-current assets decreased to HKD 959,925,000 from HKD 1,051,218,000, a decline of 8.7%[7]. - Current assets decreased to HKD 4,284,023,000 from HKD 4,678,500,000, reflecting a decrease of 8.4%[8]. - The company’s total assets increased to HKD 3,393,048,000 as of August 31, 2020, up from HKD 3,285,734,000 at the end of the previous period[9]. - The total amount of trade payables as of August 31, 2020, was 64,263 thousand HKD, slightly up from 63,005 thousand HKD as of February 29, 2020[51]. - The total amount of prepayments, deposits, and other receivables as of August 31, 2020, was 85,262 thousand HKD, a decrease from 96,683 thousand HKD as of February 29, 2020[45]. - The total overdue customer loans and receivables exceeded one month amounted to 202,112 thousand HKD, representing 4.8% of total customer loans and receivables[44]. - The total amount of restricted deposits was zero as of August 31, 2020, due to the full repayment of related asset-backed loans during the period[46]. - The bank loans as of August 31, 2020, amounted to 1,410,435 thousand HKD, with 365,000 thousand HKD due within one year[54]. Cash Flow and Dividends - Net cash generated from operating activities was HKD 734,855,000, an increase of 85.0% from HKD 396,893,000 in the previous year[10]. - The company paid dividends of HKD 92,128,000 during the period, consistent with the previous year[10]. - The company declared an interim dividend of HKD 0.22 per share, totaling HKD 92,128,000, consistent with the previous year's interim dividend[32]. - The net cash used in financing activities was HKD 688,207,000, compared to a net cash generated of HKD 38,321,000 in the prior year[10]. Operational Efficiency and Strategy - The company plans to focus on enhancing operational efficiency and exploring new market opportunities in the upcoming periods[5]. - The company plans to continue focusing on enhancing its operational efficiency and exploring new market opportunities[12]. - The company focused on promoting AEON credit cards and enhancing online services to adapt to the pandemic's impact on consumer behavior[77]. - The company implemented a bad debt warning mechanism to reduce overdue loans and receivables[77]. - Significant resources will be allocated to digital projects to improve operational efficiency, including new credit card and loan systems, and optimization of mobile applications and websites[90]. - The company anticipates a challenging operating environment due to ongoing pandemic effects and rising unemployment in Hong Kong, impacting operations in the second half of the year[90]. Risk Management - The company has established policies to manage market, credit, liquidity, equity, and operational risks, with regular reviews by management and internal auditors[96]. - The group has implemented cross-currency swaps to hedge foreign currency debt, effectively transferring foreign currency liabilities to functional currency[99]. - The group has adopted interest rate swaps to convert part of its floating-rate debt to fixed-rate, aligning swap terms with hedged loans[99]. - The group has a liquidity risk management framework in place to manage short, medium, and long-term financing needs[101]. - The group has established policies and systems to monitor and control credit risk, ensuring adequate provisions for recoverable loans and receivables[100]. Shareholder Information - The total issued and paid-up share capital as of August 31, 2020, was HKD 269,477,000, with 418,766,000 shares outstanding[63]. - The group’s major shareholders include AEON Japan with a 67.13% stake and AFS with a 52.86% stake in the company[107]. - AFS holds 100% equity interest in AFS (Hong Kong), representing 221,364,000 shares[108]. - The company has not purchased, sold, or redeemed any of its listed shares during the reporting period[112]. Future Outlook - AEON anticipates a credit loss of approximately HKD 50 million for the upcoming quarter, reflecting a cautious outlook[117]. - The company is investing in new product development, with a budget allocation of HKD 100 million for innovative financial services[118]. - AEON plans to expand its market presence in mainland China, targeting a 20% increase in market share by the end of the fiscal year[118]. - The company’s future guidance indicates expected revenue growth of 12% for the next quarter, driven by increased consumer demand[117].

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]