Group 1 - The article provides a list of Hong Kong listed companies along with their upcoming shareholder meeting dates and earnings announcement dates [1][2][3] - Companies mentioned include Jiangnan Buyi, Zhongguancun Technology Leasing, Huatai Ruilin, and many others, indicating a diverse range of sectors represented [3][4] - Dividend distribution dates are highlighted for several companies, such as Beijing Waterworks Group and Evergrande Group, which may attract investor interest [3][4] Group 2 - The document outlines specific companies that will have their earnings announced or shareholder meetings scheduled, which is crucial for investors tracking performance [3][4] - The inclusion of dividend payment dates for companies like NetEase and Hong Kong Electric indicates potential income opportunities for shareholders [3][4] - The information serves as a resource for investors to plan their investment strategies based on upcoming corporate events [1][2][3]

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佈的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈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。 香港信貸集團有限公司（「本公司」）之董事會（「董事會」）欣然宣佈，於2025年9 月3日（星期三）舉行之本公司股東週年大會（「股東週年大會」）上提呈全部普通決 議案已獲本公司之股東（「股東」）以按股數投票方式正式通過，有關提呈全部決議案 之投票結果如下： | | | 票數 | | | --- | --- | --- | --- | | | 普通決議案 | （佔總投票票數之 | | | | | 概約百分比） | | | | 一般事項 | 贊成 | 反對 | | 1. | 省覽及批准本公司截至2025年3月31日止年度之 | 261,760,181 | 0 | | | 經審核綜合財務報表連同董事會報告及獨立核數 | (100.0000%) | (0.0000%) | | | 師報告。 | | | | 2. | 就截至2025年3月31日止年度宣派末期股息每股 | 261,760,181 | 0 | | | ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 香港信貸集團有限公司 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01273 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | FF301 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 香港信貸集團有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01273 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.01 HKD | | | 100,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 HKD | | | 100,000,000 | 本月底法定/ ...

[Corporate Information](index=2&type=section&id=Corporate%20Information) This section provides essential corporate information, covering board composition, key professional advisors, and administrative details - This section provides fundamental company details, including board and committee members, company secretary, registered office, principal place of business, principal bankers, legal advisors, auditors, and share registrars[3](index=3&type=chunk)[4](index=4&type=chunk)[5](index=5&type=chunk)[6](index=6&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Industry Overview](index=5&type=section&id=BUSINESS%20REVIEW%20AND%20INDUSTRY%20OVERVIEW) The Group's core business is property mortgage loans in Hong Kong. Despite a stagnant real estate market and high interest rates, the Group maintained prudent credit strategies, achieving robust financial performance with profit attributable to owners reaching HKD 46.2 million in FY2025, an 8.2% year-on-year increase - The Group primarily engages in money lending, with a core focus on secured property mortgage loans and diversification into unsecured homeowner loans[9](index=9&type=chunk)[13](index=13&type=chunk) - Despite the Hong Kong government's removal of cooling measures, the local real estate market remains stagnant, with high interest rates suppressing investment and consumption demand, leading to continued weak market sentiment[10](index=10&type=chunk)[13](index=13&type=chunk) 2025 Fiscal Year Key Financial Performance | Indicator | 2025 FY (HKD million) | 2024 FY (HKD million) | YoY Change | | :--- | :--- | :--- | :--- | | Interest Income | 156.3 | 158.9 | -1.6% | | Impairment Allowance for Loans and Interest | 12.5 | 18.0 | -30.6% | | Profit Attributable to Owners | 46.2 | 42.7 | +8.2% | [Financial Review](index=6&type=section&id=FINANCIAL%20REVIEW) Total interest income slightly decreased by 1.6% to HKD 156.3 million, primarily due to lower unsecured loan income, while interest expenses significantly reduced through deleveraging, leading to an 8.2% increase in profit attributable to owners to HKD 46.2 million Interest Income Composition (HKD million) | Business Category | 2025 FY | 2024 FY | YoY Change | | :--- | :--- | :--- | :--- | | Secured Property Mortgage Loans | 105.2 | 104.4 | +0.8% | | Unsecured Homeowner Loans | 51.1 | 54.5 | -6.2% | | **Total** | **156.3** | **158.9** | **-1.6%** | - Due to the Group's deleveraging strategy in a high-interest rate environment, borrowings decreased, leading to a reduction in interest expenses from **HKD 18.9 million** to **HKD 15.7 million**, and the gearing ratio decreased to **0.14**[18](index=18&type=chunk)[22](index=22&type=chunk) Impairment Loss on Loans and Interest Receivables and Recovered Assets (HKD million) | Category | 2025 FY | 2024 FY | YoY Change | | :--- | :--- | :--- | :--- | | Secured Property Mortgage Loans | 6.9 | 13.3 | -48.1% | | Unsecured Homeowner Loans | 5.6 | 4.7 | +19.1% | | **Total** | **12.5** | **18.0** | **-30.6%** | - Impairment allowances decreased this year due to proactive credit risk management measures, such as regular review of customer repayment records, reduction in average loan size, and shortening of loan tenures[31](index=31&type=chunk)[35](index=35&type=chunk) [Liquidity and Sources of Financial Resources](index=9&type=section&id=LIQUIDITY%20AND%20SOURCES%20OF%20FINANCIAL%20RESOURCES) The Group's working capital primarily stems from retained earnings, advances from a fellow subsidiary, and bank borrowings, maintaining robust liquidity with net assets of HKD 852 million and substantial unused bank facilities as of March 31, 2025 Key Financial Resources Status (HKD million) | Indicator | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Net Assets | 852.0 | 816.6 | | Cash and Cash Equivalents | 33.5 | 28.4 | | Interest-bearing Bank and Other Borrowings | 105.0 | 246.3 | | Amounts Due to a Fellow Subsidiary | 50.3 | 60.7 | | Unused Bank Facilities | 209.8 | N/A | - The Group's funding sources primarily include retained earnings, advances from Tin Ching Industrial Limited (a fellow subsidiary), and bank and other borrowings[39](index=39&type=chunk)[43](index=43&type=chunk) [Key Financial Ratios](index=10&type=section&id=KEY%20FINANCIAL%20RATIOS) Key financial ratios showed positive improvement this fiscal year, with the gearing ratio significantly decreasing to 0.14, while return on equity and interest coverage ratios improved, and net interest margin remained stable Key Financial Ratios Comparison | Ratio | 2025 FY | 2024 FY | | :--- | :--- | :--- | | Gearing ratio | 0.14 | 0.34 | | Net interest margin ratio | 16.1% | 16.0% | | Return on equity ratio | 5.4% | 5.2% | | Interest coverage ratio | 4.9 times | 4.0 times | [Business Model and Loan Portfolios](index=12&type=section&id=BUSINESS%20MODEL%20AND%20LOAN%20PORTFOLIOS) The Group offers secured property mortgage loans and unsecured homeowner loans, with secured loans constituting 75.3% of the total portfolio, primarily backed by Hong Kong residential and commercial properties, and a diversified customer base mitigating concentration risk Loan Portfolio Overview (As of March 31, 2025) | Loan Type | % of Total Loans | Interest Rate Range | | :--- | :--- | :--- | | Secured Property Mortgage Loans | 75.3% | 11% to 34% | | Unsecured Homeowner Loans | 24.7% | 12% to 44% | - As of March 31, 2025, the Group had **782 active accounts**, an increase from **736** in the previous year, with individual customers accounting for the vast majority[60](index=60&type=chunk)[64](index=64&type=chunk) - Customer concentration is low, with the top five customers contributing approximately **8.0%** of total revenue, and the largest single customer accounting for approximately **2.5%** of total revenue, consistent with the previous year[61](index=61&type=chunk)[64](index=64&type=chunk) [Outlook](index=15&type=section&id=OUTLOOK) The Group anticipates continued challenges in the Hong Kong lending industry amidst global economic uncertainties but aims to consolidate its market position through prudent risk management, diversified loan portfolios, and leveraging Greater Bay Area integration opportunities - Macroeconomic and geopolitical risks, such as Sino-US trade tensions and a high-interest rate environment, significantly impact Hong Kong's money lending business, particularly property mortgage loans[82](index=82&type=chunk)[85](index=85&type=chunk) - The Group's future strategy includes adhering to strict risk management, diversifying its loan portfolio, strengthening credit policies, focusing on high-net-worth clients, and leveraging the "Hong Kong Finance" brand reputation to seize growth opportunities[84](index=84&type=chunk)[86](index=86&type=chunk) - External opportunities, such as Greater Bay Area integration and cross-border financial cooperation, along with potential government support policies, are expected to create favorable conditions for industry recovery and the Group's development[84](index=84&type=chunk)[86](index=86&type_chunk) [Corporate Governance Report](index=16&type=section&id=Corporate%20Governance%20Report) [Corporate Governance Practices](index=16&type=section&id=CORPORATE%20GOVERNANCE%20PRACTICES) The Group is committed to high corporate governance standards, adhering to the Corporate Governance Code, fostering an integrity-driven culture, and implementing whistleblowing and anti-corruption mechanisms to ensure lawful and responsible operations - The Group has adopted and complied with the Corporate Governance Code for the year ended March 31, 2025, and regularly reviews relevant policies[88](index=88&type=chunk)[93](index=93&type=chunk) - The Group has established whistleblowing and anti-corruption policies, overseen by the Board, relevant committees, and senior management, to ensure ethical conduct among employees[99](index=99&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) [Board of Directors](index=19&type=section&id=BOARD%20OF%20DIRECTORS) The Board comprises seven directors with diverse expertise, ensuring separation of Chairman and CEO roles, confirming independence of INEDs, including those serving over nine years, and all directors participate in continuous professional development - The Board consists of **7** directors: **4** Executive Directors and **3** Independent Non-Executive Directors, meeting the Listing Rules' requirement that INEDs constitute at least one-third of the Board[113](index=113&type=chunk)[118](index=118&type=chunk) - The roles of Board Chairman (Mr. Chan Kwong Yin) and Chief Executive Officer (Mr. Tse Pui To) are separate and held by different individuals[114](index=114&type=chunk)[115](index=115&type=chunk) - The Board has assessed the independence of Mr. Chu Yat Pong and Mr. Cheung Kwok Cheong, Independent Non-Executive Directors who have served for over nine years, and confirmed their continued independence[121](index=121&type=chunk)[123](index=123&type=chunk) Board Meeting Attendance | Director Name | Board Meeting Attendance/Meetings Held | | :--- | :--- | | Mr. Chan Kwong Nam | 3/4 | | Mr. Chan Kwong Yin | 4/4 | | Mr. Tse Pui To | 4/4 | | Ms. Chan Siu Ching | 3/4 | | Mr. Chu Yat Pong | 4/4 | | Mr. Cheung Kwok Cheong | 4/4 | | Mr. Wong Kai Man | 4/4 | [Board Committees](index=26&type=section&id=BOARD%20COMMITTEES) The Board has Audit, Remuneration, and Nomination Committees, overseeing financial reporting, internal controls, executive compensation, and board structure, with the Nomination Committee adopting a diversity policy and appointing the first female executive director this year - The Audit Committee, composed of three Independent Non-Executive Directors, is responsible for reviewing financial statements, risk management, and internal control systems, and has reviewed this annual report[153](index=153&type=chunk)[155](index=155&type=chunk) - The Remuneration Committee, comprising one Executive Director and two Independent Non-Executive Directors, is responsible for determining the remuneration packages of Executive Directors and senior management[166](index=166&type=chunk)[169](index=169&type=chunk) - The Nomination Committee, consisting of the Board Chairman and two Independent Non-Executive Directors, is responsible for reviewing board structure, diversity, and director nominations; during the year, the committee reviewed its board diversity policy and appointed Ms. Chan Siu Ching as the company's first female Executive Director[178](index=178&type=chunk)[189](index=189&type=chunk)[192](index=192&type=chunk) [Risk Management and Internal Control](index=35&type=section&id=RISK%20MANAGEMENT%20AND%20INTERNAL%20CONTROL) The Board oversees and annually reviews the Group's risk management and internal control systems, which are deemed effective and sufficient following an independent review by APAC, with internal audit functions currently outsourced for cost-effectiveness - The Board confirms its responsibility to continuously oversee the Group's risk management and internal control systems and to review their effectiveness at least annually[199](index=199&type=chunk)[203](index=203&type=chunk) - The Group has engaged independent internal control consultant APAC to conduct an annual review of its risk management and internal control systems, which the Board considers effective and adequate[213](index=213&type=chunk)[216](index=216&type=chunk) - The Group currently does not have an internal audit function, as the Board believes outsourcing this function to independent professionals is more cost-effective, and this need will be reviewed annually[214](index=214&type=chunk)[217](index=217&type=chunk) [Environmental, Social and Governance Report](index=43&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) [ESG Governance](index=47&type=section&id=ESG%20GOVERNANCE) The Board holds primary oversight for sustainable development, supported by an ESG working group comprising executive directors and senior management, which identifies key ESG issues through annual materiality assessments and stakeholder engagement - The Board is responsible for overseeing ESG-related risks and ensuring management has sufficient resources to execute ESG strategies[275](index=275&type=chunk)[279](index=279&type=chunk) - The Group has established an ESG working group, comprising Executive Directors and senior management, responsible for reviewing and overseeing ESG processes and risk management[276](index=276&type=chunk)[277](index=277&type=chunk)[280](index=280&type=chunk) [A. Environmental Aspects](index=48&type=section&id=A.%20Environmental%20Aspects) Despite minimal direct environmental impact, the Group actively reduces its operational footprint through energy conservation, waste reduction, and climate change risk identification, showing year-on-year improvements in key environmental metrics Key Environmental Performance Indicators (FY2025 vs FY2024) | Indicator | Unit | 2025 FY | 2024 FY | Change | | :--- | :--- | :--- | :--- | :--- | | Total Greenhouse Gas Emissions | tonnes of CO2 equivalent | 43.57 | 51.29 | -15.0% | | Total Energy Consumption | MWh | 108.20 | 124.17 | -12.9% | | Disposal of Non-hazardous Waste | tonnes | 2.20 | 3.20 | -31.3% | - The Group has formulated and implemented a "Corporate Environmental Policy" to promote efficient resource utilization and environmentally friendly operations through measures such as energy saving, waste reduction, and green procurement[285](index=285&type=chunk)[287](index=287&type=chunk) - Regarding climate change, the Group has identified relevant physical risks (e.g., extreme weather) and transition risks (e.g., policy, legal changes) and has developed management measures, including scenario analysis, to address them[321](index=321&type=chunk)[344](index=344&type=chunk)[345](index=345&type=chunk) [B. Social Aspects](index=67&type=section&id=B.%20Social%20Aspects) The Group prioritizes employees as key assets, ensuring fair employment, competitive compensation, and professional development, while upholding service quality, customer data protection, and anti-corruption, and actively contributing to the community through charitable donations - The Group is committed to providing an equal, diverse, and inclusive work environment, strictly adhering to labor laws such as the Employment Ordinance, and opposing any form of discrimination[357](index=357&type=chunk)[358](index=358&type=chunk)[360](index=360&type=chunk) Employee Turnover Rate and Training Status | Indicator | 2025 FY | 2024 FY | | :--- | :--- | :--- | | Overall Employee Turnover Rate | 27% | 32% | | Percentage of Trained Employees | 74% | 70% | - The Group strictly complies with product liability regulations, has robust customer complaint handling mechanisms and customer data protection policies, and reported no related complaints or violations during the period[388](index=388&type=chunk)[394](index=394&type=chunk)[395](index=395&type=chunk) - The Group actively fulfills its social responsibilities, donating a total of **HKD 136,000** to various charitable organizations, including Po Leung Kuk, in FY2025[411](index=411&type=chunk)[414](index=414&type=chunk) [Report of the Directors](index=81&type=section&id=Report%20of%20the%20Directors) [Dividends](index=81&type=section&id=DIVIDENDS) The Board recommends a final dividend of 1.3 HK cents per share for the year ended March 31, 2025, bringing the total annual dividend to 2.6 HK cents per share, including the interim dividend already paid 2025 Fiscal Year Dividend Details | Dividend Type | Amount Per Share (HK cents) | Payment Date | | :--- | :--- | :--- | | Interim Dividend | 1.3 | January 14, 2025 | | Proposed Final Dividend | 1.3 | October 10, 2025 | [Directors' and Chief Executive's Interests in Shares](index=86&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20in%20Shares) This report discloses directors' and chief executive's interests in the company's shares, highlighting that Executive Directors Mr. Chan Kwong Nam and Mr. Chan Kwong Yin hold significant stakes through Tin Ching Holdings, a jointly controlled entity, making them controlling shareholders Major Directors' Shareholdings (As of March 31, 2025) | Director Name | Capacity | Number of Shares Held (thousand shares) | % of Issued Share Capital | | :--- | :--- | :--- | :--- | | Chan Kwong Nam | Interest in Controlled Corporation | 260,000 | 62.65% | | Chan Kwong Yin | Beneficial Owner and Interest in Controlled Corporation | 305,796 | 73.69% | - Mr. Chan Kwong Nam and Mr. Chan Kwong Yin each hold **50%** equity in Tin Ching Holdings, and are therefore deemed to have a joint interest in the **260 million** company shares held by Tin Ching Holdings[496](index=496&type=chunk)[498](index=498&type=chunk) [Connected Transactions](index=89&type=section&id=Connected%20Transactions) The Group engaged in a continuing connected transaction with Tin Ching Industrial Limited, a fellow subsidiary controlled by the controlling shareholders, involving a loan facility of up to HKD 200 million, which is fully exempt from disclosure and shareholder approval requirements under Listing Rules due to favorable terms - The Group entered into a loan agreement with Tin Ching Industrial Limited, a connected party, which provides the Group with a loan facility of up to **HKD 200 million** for its money lending business[513](index=513&type=chunk)[517](index=517&type=chunk) - This transaction constitutes a continuing connected transaction but is fully exempt from relevant disclosure and approval requirements under Listing Rule 14A.90 due to its favorable terms for the company (unsecured, interest rate at prime rate plus 1%) and its provision of financial assistance to the Group[514](index=514&type=chunk)[517](index=517&type=chunk) [Independent Auditor's Report](index=91&type=section&id=Independent%20Auditor%27s%20Report) [Opinion](index=91&type=section&id=OPINION) PricewaterhouseCoopers issued an unmodified opinion, affirming that the Group's consolidated financial statements fairly present its financial position as of March 31, 2025, and its financial performance and cash flows for the year, in compliance with Hong Kong Companies Ordinance disclosure requirements - The auditor believes that the consolidated financial statements fairly present the Group's financial position, performance, and cash flows in accordance with Hong Kong Financial Reporting Standards[526](index=526&type=chunk)[529](index=529&type=chunk) [Key Audit Matters](index=92&type=section&id=KEY%20AUDIT%20MATTERS) The sole Key Audit Matter identified is 'Expected Credit Loss (ECL) allowance for loans and interest receivables,' deemed critical due to significant management judgment and complex estimations involved in its measurement, particularly regarding credit risk increase, model parameters, and forward-looking information - The key audit matter is "Expected Credit Loss allowance for loans and interest receivables," as its measurement involves significant management judgment and estimation, and it has a material impact on the financial statements[534](index=534&type=chunk)[535](index=535&type=chunk)[543](index=543&type=chunk)[544](index=544&type=chunk) - ECL measurement involves complex estimations such as loan segmentation, model selection, determination of probability of default (PD), loss given default (LGD), and judgment on whether credit risk has significantly increased[537](index=537&type=chunk)[540](index=540&type=chunk) - The auditor, through procedures such as evaluating key controls, model methodology, key assumptions, and sampling tests of aging and collateral values, concluded that management's judgments and estimates for ECL allowance are supported by evidence[538](index=538&type=chunk)[541](index=541&type=chunk)[545](index=545&type=chunk)[548](index=548&type=chunk) [Consolidated Financial Statements](index=98&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Comprehensive Income](index=98&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the year ended March 31, 2025, the Group reported net interest income of HKD 140.6 million and operating profit of HKD 57.04 million, with profit attributable to owners increasing by 8.2% to HKD 46.173 million, resulting in basic earnings per share of 11.1 HK cents Consolidated Statement of Comprehensive Income Summary (HKD thousand) | Item | 2025 FY | 2024 FY | | :--- | :--- | :--- | | Interest Income | 156,280 | 158,933 | | Interest Expense | (15,710) | (18,914) | | **Net Interest Income** | **140,570** | **140,019** | | Operating Profit | 57,040 | 52,529 | | **Profit and Total Comprehensive Income for the Year** | **46,173** | **42,693** | | Basic Earnings Per Share (HK cents) | 11.1 | 10.3 | [Consolidated Statement of Financial Position](index=99&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2025, total assets were HKD 1.021 billion, total liabilities HKD 169 million, and total equity HKD 852 million, with significant decreases in both total assets and liabilities compared to the prior year, reflecting the Group's deleveraging strategy Consolidated Statement of Financial Position Summary (HKD thousand) | Item | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Loans and Interest Receivables | 781,486 | 894,018 | | Property, Plant and Equipment | 119,837 | 121,234 | | **Total Assets** | **1,020,942** | **1,134,998** | | **Equity and Liabilities** | | | | Total Equity | 852,001 | 816,618 | | Bank and Other Borrowings | 105,004 | 246,342 | | **Total Liabilities** | **168,941** | **318,380** | [Consolidated Statement of Cash Flows](index=102&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) Net cash inflow from operating activities significantly increased to HKD 170 million this fiscal year, while financing activities resulted in a net outflow of HKD 163 million, primarily for bank loan repayments, leading to a net increase in cash and cash equivalents of HKD 5.11 million Consolidated Statement of Cash Flows Summary (HKD thousand) | Item | 2025 FY | 2024 FY | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 169,980 | 28,960 | | Net Cash Outflow from Investing Activities | (2,345) | (139) | | Net Cash Outflow from Financing Activities | (162,525) | (30,320) | | **Net Increase/(Decrease) in Cash and Cash Equivalents** | **5,110** | **(1,499)** | | Cash and Cash Equivalents at Year End | 33,486 | 28,376 | [Notes to the Financial Statements](index=103&type=section&id=Notes%20to%20the%20Financial%20Statements) [Note 3 Financial Risk Management](index=106&type=section&id=Note%203%20FINANCIAL%20RISK%20MANAGEMENT) This note details the Group's primary financial risks, including market, credit, and liquidity risks, with a focus on credit risk management through the HKFRS 9 three-stage ECL model, explaining significant credit risk increase criteria, default definitions, ECL measurement, and forward-looking information application - The Group's credit risk primarily arises from loans and interest receivables. The Group manages this risk using a three-stage ECL model, where loans overdue by more than **30 days** are considered to have a significant increase in credit risk (entering Stage 2), and those overdue by more than **90 days** or borrower bankruptcy are considered in default (entering Stage 3)[618](index=618&type=chunk)[622](index=622&type=chunk)[625](index=625&type=chunk) ECL Allowance Sensitivity Analysis to Collateral Value Changes | Assumed Scenario | Impact on ECL Allowance (HKD million) | | :--- | :--- | | Forecast collateral value decrease by 7% | Increase by 9.98 | | Forecast collateral value increase by 7% | Decrease by 6.77 | - The Group maintains prudent liquidity risk management, ensuring sufficient cash to meet operational needs through cash flow forecasting. As of March 31, 2025, financial liabilities due within one year (undiscounted) amounted to **HKD 164 million**[660](index=660&type=chunk)[668](index=668&type=chunk) [Note 22 Loans and Interest Receivables](index=154&type=section&id=Note%2022%20LOANS%20AND%20INTEREST%20RECEIVABLES) This note provides a detailed breakdown and aging analysis of loans and interest receivables, totaling HKD 805 million before impairment allowance, with a net amount of HKD 781 million as of March 31, 2025, showing improved asset quality with a decrease in loans overdue by over 90 days Loans and Interest Receivables Composition (HKD thousand) | Item | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Total Secured Property Mortgage Loans | 606,052 | 732,288 | | Total Unsecured Homeowner Loans | 198,450 | 205,715 | | **Total Loans and Interest Receivables** | **804,502** | **938,003** | | Less: Impairment Allowance | (23,016) | (43,985) | | **Net Loans and Interest Receivables** | **781,486** | **894,018** | Loans and Interest Receivables Aging Analysis (HKD thousand) | Aging | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Not Overdue | 560,007 | 548,993 | | Overdue 1-90 Days | 109,913 | 199,983 | | Overdue Over 90 Days | 134,582 | 189,027 | | **Total** | **804,502** | **938,003** | [Five-year Financial Summary](index=179&type=section&id=Five-year%20Financial%20Summary) [Five-year Financial Summary](index=179&type=section&id=Five-year%20Financial%20Summary) This section summarizes the Group's key financial data over the past five fiscal years, indicating a slight revenue decrease in FY2025 but an increase in profit attributable to owners, alongside notable reductions in total assets and liabilities, reflecting efforts in capital structure optimization and shareholder value enhancement Five-year Financial Data Summary (HKD thousand) | Item | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 156,280 | 158,933 | 160,974 | 153,488 | 155,503 | | Profit Attributable to Owners | 46,173 | 42,693 | 58,885 | 70,550 | 73,218 | | Total Assets | 1,020,942 | 1,134,998 | 1,126,206 | 1,177,075 | 1,101,991 | | Total Liabilities | 168,941 | 318,380 | 341,491 | 440,455 | 425,131 | | Total Equity | 852,001 | 816,618 | 784,715 | 736,620 | 676,860 |

Financial Performance - For the fiscal year ending March 31, 2025, the company reported net interest income of HKD 140,570,000, a slight increase from HKD 140,019,000 in the previous year[3]. - Total comprehensive income attributable to owners of the company for the year was HKD 46,173,000, compared to HKD 42,693,000 in 2024, representing an increase of approximately 10.3%[3]. - Basic and diluted earnings per share increased to HKD 11.1 from HKD 10.3, reflecting a growth of 7.8% year-over-year[3]. - Operating profit rose to HKD 57,040,000 from HKD 52,529,000, an increase of about 8.6%[3]. - The group’s net profit attributable to shareholders increased by 8.2% to HKD 46,200,000, compared to HKD 42,700,000 in the previous year[51]. Assets and Liabilities - The company’s total assets decreased to HKD 1,020,942,000 from HKD 1,134,998,000, indicating a decline of approximately 10%[4]. - The company’s total liabilities decreased significantly to HKD 168,941,000 from HKD 318,380,000, a reduction of approximately 47%[4]. - Total assets for the mortgage segment were HKD 648,610, and for the unsecured segment, they were HKD 203,320, resulting in total segment assets of HKD 1,020,942[16]. - As of March 31, 2025, the group's total assets amounted to HKD 852,000,000, up from HKD 816,600,000 in the previous year[52]. - Total assets pledged as collateral for bank loans amounted to HKD 387,700,000 in 2025, down from HKD 426,000,000 in 2024[60]. Cash Flow and Liquidity - Cash and cash equivalents increased to HKD 33,486,000 from HKD 28,376,000, marking an increase of about 18%[4]. - Cash and cash equivalents increased to HKD 33,500,000 from HKD 28,400,000 in the previous year[52]. - The group utilized HKD 32,129,000 of bank loans and overdrafts as of March 31, 2025, compared to HKD 210,339,000 in 2024, indicating a significant reduction in usage[33]. Loans and Interest - The company reported a decrease in loans and interest receivable to HKD 781,486,000 from HKD 894,018,000, a reduction of approximately 12.6%[4]. - Interest income for the year reached HKD 156,300,000, a decrease of 1.6% from HKD 158,900,000 in the previous year[41]. - Mortgage loans accounted for approximately 67.3% of total revenue, with interest income from mortgage loans increasing by 0.8% to HKD 105,200,000[42]. - Interest income from unsecured owner loans decreased by 6.2% to HKD 51,100,000, representing about 32.7% of total revenue[42]. - The aging analysis of receivables shows that overdue amounts over 90 days decreased to HKD 134,582,000 in 2025 from HKD 189,027,000 in 2024, a reduction of about 28.9%[31]. Expenses and Impairments - Total operating expenses increased to HKD 67,577 in 2025 from HKD 66,455 in 2024, with significant costs in employee benefits and depreciation[20]. - The company reported a total impairment loss on loans and interest of HKD 10,245 for the year ended March 31, 2025, compared to HKD 17,421 for the previous year[19]. - The group recorded a net impairment loss on receivables of HKD 12,500,000, a decrease of 30.6% from HKD 18,000,000 in the previous year[48]. Dividends and Shareholder Information - The company maintained a consistent dividend payout of HKD 10,790,000 for both years[3]. - The total declared and paid dividends for the year is HKD 10,790,000, consistent with the previous year, maintaining a dividend per share of HKD 1.3[27][28]. - The company proposed a final dividend of HKD 0.013 per share for the fiscal year ending March 31, 2025, subject to shareholder approval at the annual general meeting[72]. - The annual general meeting is scheduled for September 3, 2025, to discuss various corporate matters[71]. Operational Strategy and Outlook - The company is primarily engaged in providing mortgage loans secured by properties and unsecured personal loans in Hong Kong[5]. - The company has not conducted any inter-segment sales between its operating segments for the years ended March 31, 2025, and 2024[14]. - The company maintained a prudent strategy in operations, implementing strict credit policies to ensure loan portfolio quality[41]. - The outlook indicates significant uncertainty due to geopolitical risks and high interest rates affecting the lending business[64]. - The company plans to diversify its loan portfolio and strengthen credit policies to manage risks effectively[65]. Ratios and Performance Metrics - Debt ratio improved to 0.14 in 2025 from 0.34 in 2024[54]. - Return on equity rose to 5.4% in 2025 compared to 5.2% in 2024[54]. - Interest coverage ratio improved to 4.9 times in 2025 from 4.0 times in 2024[54]. - The net interest margin for the lending business remained stable at 16.1%, compared to 16.0% in the previous year[50]. - Net interest margin increased to 16.1% in 2025 from 16.0% in 2024[54].

Financial Reporting and Compliance - The interim financial information for the six months ended September 30, 2024, has been reviewed and is in compliance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" [10] - The Group's interim condensed consolidated statement of comprehensive income, financial position, changes in equity, and cash flows are included in the report [9] - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, focusing on inquiries and analytical procedures [9] - No significant matters were identified that would lead to a belief that the interim financial information is not prepared in all material respects [10] - The report includes selected explanatory notes relevant to the interim financial information [9] - The review was performed by PricewaterhouseCoopers, a certified public accountant firm [13] - The report is intended solely for the Board of Directors of Hong Kong Finance Group Limited [9] - The financial information covers the period up to September 30, 2024, and is part of the interim report for 2024 [8] - The report emphasizes that it does not express an audit opinion due to the nature of the review [11] Financial Performance - Net interest income for the six months ended September 30, 2024, increased to HK$73,802, up 18.5% from HK$62,436 in the same period of 2023 [14] - Profit and total comprehensive income for the period reached HK$24,359, representing a 17.9% increase compared to HK$20,709 in the prior year [14] - Basic and diluted earnings per share rose to 5.87 HK cents, an increase of 17.6% from 4.99 HK cents in the previous year [14] - The total cash generated from operating activities increased to HK$73,287, compared to HK$62,198 in the same period last year, marking a 17.5% growth [22] - The company reported a profit attributable to owners of HK$24.4 million for the current period, representing a 17.9% increase from HK$20.7 million in the previous period [150] Financial Position - Total assets as of September 30, 2024, decreased to HK$1,112,821 from HK$1,134,998 as of March 31, 2024 [16] - Total equity attributable to owners of the Company increased to HK$835,582, up from HK$816,618 as of March 31, 2024 [16] - Current liabilities decreased to HK$273,211 from HK$314,196 as of March 31, 2024, reflecting a reduction of 13.1% [18] - Loans and interest receivables decreased to HK$546,720 from HK$627,138, indicating a decline of 12.8% [16] - As of September 30, 2024, the Group's loans and interest receivables amount to HK$912,847,000, with a provision for impairment of HK$48,848,000 [82] Cash Flow and Financing Activities - For the six months ended September 30, 2024, net cash generated from operating activities was HK$62,111, an increase of 24.3% compared to HK$49,896 for the same period in 2023 [22] - The company reported cash and cash equivalents at the end of the period of HK$32,020, down 23.4% from HK$41,704 in the previous year [22] - Cash flows from investing activities showed a net cash outflow of HK$3,212, significantly higher than HK$40 in the same period last year [22] - Net cash used in financing activities was HK$55,255, compared to HK$38,027 in the previous year, indicating an increase in financing costs [22] - The company made repayments of bank and other borrowings totaling HK$128,259, a significant reduction from HK$663,828 in the previous year, indicating a strategic shift in debt management [22] Impairment and Credit Risk - Impairment losses on loans and interest receivables increased to HK$9,017 from HK$3,616, indicating a significant rise in credit risk [14] - The expected loss rate for loans and interest receivables as of September 30, 2024, is 5.4%, up from 4.7% as of March 31, 2024 [82] - The Group noted an increase in forced sales rate and a decrease in fair value of underlying collaterals, contributing to higher impairment losses [141] - Average loan sizes were reduced and loan tenors shortened to manage credit risk effectively [142] Segment Performance - The Management Committee has identified two main operating segments: secured property mortgage loans and unsecured personal loans [52] - The performance of the segments is measured based on profit/loss before taxation, excluding unallocated income/expenses [53] - For the six months ended September 30, 2024, the total interest income from external customers was HK$82,959,000, with secured property mortgage loans contributing HK$56,108,000 and unsecured personal loans contributing HK$26,851,000 [58] - The total segment assets as of September 30, 2024, amounted to HK$1,112,821,000, with secured property mortgage loans at HK$719,503,000 and unsecured personal loans at HK$218,068,000 [58] Dividends and Shareholder Information - The company declared dividends of HK$5,395, consistent with the previous year [14] - The interim dividend declared is HK1.3 cents per ordinary share, totaling HK$5,395,000, which has not been recognized as payable as of September 30, 2024 [75][76] - Directors and the chief executive held significant interests in the Company, with Chan Koung Nam owning 300,000 shares (72.29%) and Chan Kwong Yin William holding 305,796 shares (73.69%) as of September 30, 2024 [171] Economic Outlook and Strategic Initiatives - The overall economic landscape remains challenging, with stagnation in both local residential and commercial property markets [127] - Management plans to diversify the loan portfolio, modify loan terms, and focus on high net-worth customers to adapt to market changes [168] - The Group's strategy includes reassessing and reinforcing credit policies to safeguard the quality of the loan portfolio while pursuing growth opportunities [168] - Following the removal of property market cooling measures, the Hong Kong prime rate began to decline in late September 2024, indicating potential changes in the property market [168] Corporate Governance and Compliance - The Audit Committee reviewed the unaudited interim financial information and the interim report for the current period [185] - The Company has complied with the Corporate Governance Code during the review period [183] - There were no changes in the information of the Directors since the publication of the 2024 annual report [185]

Financial Performance - Net interest income increased to HKD 73,802,000, up 18% from HKD 62,436,000 in the previous year[3] - Total comprehensive income for the period reached HKD 24,359,000, representing a 17% increase compared to HKD 20,709,000 in the same period last year[6] - Basic and diluted earnings per share rose to HKD 5.87, an increase of 17.6% from HKD 4.99[7] - The group reported a total profit for the period of HKD 24,359 thousand, compared to HKD 20,709 thousand for the same period in 2023, reflecting a year-on-year increase of 17.5%[32] - The company’s shareholders' profit attributable reached HKD 24,400,000, reflecting a growth of 17.9%[63] - Basic earnings per share increased to HKD 5.87 for the six months ended September 30, 2024, compared to HKD 4.99 for the same period in 2023, representing a growth of 17.6%[42] Assets and Liabilities - Total assets as of September 30, 2024, were HKD 1,112,821,000, a decrease from HKD 1,134,998,000 as of March 31, 2024[9] - Non-current assets totaled HKD 505,180,000, up from HKD 453,669,000 at the end of the previous fiscal year[9] - Current assets decreased to HKD 607,641,000 from HKD 681,329,000, reflecting a decline of approximately 10.8%[9] - Total liabilities decreased to HKD 277,239,000 from HKD 318,380,000, indicating a reduction of about 12.9%[11] - The total amount of loans and interest receivable, net of impairment provisions, was HKD 912,847,000 as of September 30, 2024, down from HKD 938,003,000 as of March 31, 2024, indicating a decrease of 2.7%[47] - The expected credit loss rate increased to 5.4% as of September 30, 2024, compared to 4.7% as of March 31, 2024[47] Income and Expenses - For the six months ended September 30, 2024, the total interest income from external customers was HKD 82,959 thousand, an increase of 13.5% compared to HKD 73,154 thousand for the same period in 2023[35] - The operating profit before tax for the mortgage loan segment was HKD 30,989 thousand, while the private loan segment reported an operating profit of HKD 10,203 thousand[27] - Interest income from mortgage loans increased by 18.9% to HKD 56,100,000, accounting for approximately 67.6% of total revenue[65] - Interest expenses decreased to HKD 9,157,000 for the six months ended September 30, 2024, down from HKD 10,718,000, a reduction of 14.6%[38] - The total employee cost for the period was HKD 14,400,000, compared to HKD 13,500,000 in 2023, with a total of 50 full-time employees as of September 30, 2024[87] - Other operating expenses increased to HKD 33,400,000, up HKD 2,000,000 or 6.4% from HKD 31,400,000 in 2023, primarily due to increased employee benefits and adjustments in salaries[75] Impairment and Losses - The impairment loss on loans and interest receivables increased to HKD 9,017,000 from HKD 3,616,000, marking a significant rise of 149%[3] - The impairment losses on loans and interest receivables for the first stage amounted to HKD 1,018 thousand, while the second and third stages reported HKD 2,208 thousand and HKD 5,791 thousand respectively, totaling HKD 9,017 thousand[35] - The company recorded a net impairment loss on receivables of HKD 10,600,000, compared to HKD 4,100,000 in the previous year[70] - The impairment losses on receivables and interest amounted to HKD 9,000,000, and the impairment losses on recovered assets were HKD 1,600,000, totaling HKD 10,600,000, an increase from HKD 4,100,000 in the previous period, reflecting a significant rise in default loans and receivable interest[73] Dividends and Shareholder Returns - The company maintained a dividend of HKD 5,395,000, consistent with the previous period[8] - The board declared an interim dividend of HKD 0.013 per share, consistent with the previous year, to be paid on January 14, 2025[99] Market and Strategic Outlook - The group expects that the newly issued and revised accounting standards will not have a significant impact on its operational performance and financial position[20] - The management anticipates potential recovery in the Hong Kong real estate market following the government's removal of cooling measures, with signs indicating that property prices may bottom out and transaction volumes could rise in the short term[93] - The company plans to diversify its loan portfolio and adjust loan terms to enhance credit policies, focusing on high-net-worth clients and realigning its product offerings in response to the expected economic recovery[93] Operational Segments - The group has identified two main operating segments: mortgage loans secured by properties and unsecured personal loans, with performance measured based on profit or loss before tax[21] - The total assets for the mortgage loan segment amounted to HKD 719,503 thousand, and for the private loan segment, it was HKD 218,068 thousand, leading to a total of HKD 1,112,821 thousand in segment assets[28] - The total liabilities for the mortgage loan segment were HKD (183,078) thousand, and for the private loan segment, it was HKD (51,435) thousand, leading to total segment liabilities of HKD (277,239) thousand[28] Financial Ratios - The current ratio improved to 2.22 from 2.17, and the debt ratio decreased to 0.26 from 0.34[81] - The net interest margin ratio increased to 16.3% from 13.6%, and the interest coverage ratio improved to 4.3 times from 3.6 times[81] Other Information - The company has not engaged in any significant investments or acquisitions during the period[84] - There were no significant events affecting the company or its subsidiaries from the end of the reporting period until the announcement date[85] - The group reported no significant foreign exchange risk during the period, as all business activities were denominated in HKD, and no derivative financial instruments were used for hedging foreign currency transactions[90] - There were no significant contingent liabilities or capital commitments as of September 30, 2024, maintaining a stable financial position[91][92] - As of September 30, 2024, the group has pledged assets worth HKD 116,700,000 in land and buildings, and HKD 47,200,000 in investment properties, alongside total loans and interest receivables of HKD 450,600,000 as collateral for bank borrowings[89]

Financial Performance - The Group's interest income decreased by HK$2.1 million or 1.3% to HK$158.9 million for the current year, primarily due to a decline in mortgage loan interest income[15]. - Interest income from mortgage loans fell by HK$3.8 million or 3.5% to HK$104.4 million, while personal loan interest income increased by HK$1.8 million or 3.4% to HK$54.5 million[16]. - The Group's overall financial performance was negatively impacted by economic uncertainties, including interest rate hikes and geopolitical tensions[9]. - Profit and total comprehensive income attributable to owners decreased to HK$42.7 million, representing a decline of 27.5% compared to HK$58.9 million in the previous year[43]. - Other income and gain decreased to HK$1.6 million from HK$3.3 million, primarily due to a reduction in rental income from investment properties[17]. - Other income and gains recorded for the year amounted to HK$1.6 million, down from HK$3.3 million in the previous year, mainly due to a decrease in rental income from investment properties[21]. - The Group recorded a provision for impairment and write-off of loans and interest receivables of HK$18.0 million for the current year[9]. - Provision for impairment and write-off of loans and interest receivables totaled HK$18.0 million, a significant increase from HK$5.8 million in the previous year, due to deteriorating property market conditions[24][28]. Loan Portfolio and Receivables - As of March 31, 2024, gross mortgage loan and interest receivables amounted to HK$732.2 million, and gross personal loan and interest receivables stood at HK$203.6 million[10]. - Mortgage loans contributed approximately 65.7% to total revenue, while unsecured personal loans accounted for about 34.3%[10]. - The gross property mortgage loans and interest receivables accounted for approximately 78.2% of the entire gross loan and interest receivables as of March 31, 2024, up from 77.8% in 2023[66]. - As of March 31, 2024, the gross personal loans and interest receivables accounted for approximately 21.8% of the total loan and interest receivables of the Group, a slight decrease from 22.2% in 2023[68]. - The Group had 736 active accounts as of March 31, 2024, an increase from 705 in 2023, with individual customers making up 690 accounts and corporate customers 46 accounts[70]. - The top five customers accounted for approximately 8% of total revenue in the current year, down from 10.8% in 2023, while the single largest customer contributed about 2.1%, down from 3.2%[71]. Interest Rates and Margins - The net interest margin for the money lending business improved to 16.0% from 15.4% in the previous year, attributed to increased interest rates charged to customers[42]. - The net interest margin increased to 16.0% for the current year, up from 15.4% in 2023, attributed to rising interest rates charged to customers[48]. - Interest rates for property mortgage loans ranged from 11% to 31% in 2024, compared to 9% to 36% in 2023[66]. - The interest rates for personal loans ranged from 12% to 44%, consistent with the previous year, while mortgage loan rates varied from 11% to 31%, up from 9% to 36% in 2023[72]. Economic Outlook and Market Conditions - The Centra-City Leading Index for Hong Kong's residential property market declined from 168.27 in March 2023 to 147.08 in March 2024, indicating a continued downturn[9]. - The economic outlook for Hong Kong in 2024 remains uncertain, influenced by factors such as the U.S. presidential election and Federal Reserve rate adjustments, which may constrain loan portfolio growth[95]. - The complete removal of property market cooling measures by the Hong Kong Government indicates potential for revival in the property sector, stimulating transactions and market momentum[96]. - Anticipated interest rate cuts from the second half of 2024 could gradually stabilize the property market, counteracting its previous downward trend[96]. Corporate Governance - The Group's corporate governance practices comply with the Code Provisions, ensuring transparency and accountability to shareholders[100]. - The Board consists of seven Directors, including four executive Directors and three independent non-executive Directors, ensuring a balance of skills in various fields such as accounting, business, and finance[129]. - The independent non-executive Directors have confirmed their independence in writing, ensuring compliance with the Listing Rules[136]. - The Board has conducted regular reviews of its authorisation and guidelines for management decisions, ensuring accountability[124]. - The Company has complied with the Listing Rules requiring at least three independent non-executive Directors, representing at least one-third of the Board[134]. - The Board's main task is to supervise management to maximize shareholder value while balancing stakeholder interests[137]. - The Company has implemented anti-corruption and bribery policies, providing guidance to employees on identifying and reporting violations[126]. - The Group's compliance with legal and regulatory requirements is regularly reviewed and monitored by the Board[142]. Risk Management - The Group emphasizes maintaining a robust risk management policy and credit review processes to ensure the quality of its loan portfolio[96]. - The Audit Committee reviewed and monitored the integrity of the interim results, annual results, and financial statements of the Company and the Group[169]. - The Audit Committee reviewed the effectiveness of the risk management and internal control systems of the Group[169]. - The Audit Committee discussed risk management and internal control systems with management to ensure effective systems are in place[169]. - The Board has established a framework for internal control and risk management to assess and manage the Group's risks[141]. Employee and Operational Metrics - Other operating expenses rose by HK$9.3 million or 16.3% to HK$66.5 million, primarily due to increased employee benefits and marketing expenses[33][34]. - The total staff costs for the Group were HK$31.2 million in the current year, compared to HK$28.7 million in 2023, reflecting an increase in employee expenses[84]. - The Group employed 49 full-time employees as of March 31, 2024, an increase from 47 in 2023, indicating a slight growth in workforce[84]. Committees and Meetings - The Company established three Board committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee relevant aspects of the Group's affairs[163]. - The Audit Committee held two meetings during the year ended March 31, 2024, with full attendance from all members[172]. - The Nomination Committee held two meetings during the year ended March 31, 2024, with all members attending both meetings[194]. - The Remuneration Committee determined the remuneration packages and bonuses for executive Directors and senior management in accordance with the company's written remuneration policy[182]. - All members of the Remuneration Committee are independent non-executive Directors, ensuring unbiased decision-making regarding remuneration[185].

[Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) [Consolidated Statement of Comprehensive Income](index=1&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the year ended March 31, 2024, the Group's revenue slightly decreased by 1.3% to HKD 159 million, with operating profit and profit attributable to owners of the company declining significantly due to increased impairment provisions Key Data from Consolidated Statement of Comprehensive Income (For the Year Ended March 31) | Metric | 2024 (HKD thousands) | 2023 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 158,933 | 160,974 | -1.3% | | Operating Profit | 71,443 | 93,137 | -23.3% | | Profit Before Income Tax | 52,507 | 72,225 | -27.3% | | Profit for the Year Attributable to Owners of the Company | 42,693 | 58,885 | -27.5% | | Basic Earnings Per Share (HK cents) | 10.3 | 14.2 | -27.5% | - The primary reason for the decrease in annual profit is the significant increase in net impairment provisions and write-offs for loans receivable and recovered assets, from **HKD 5.76 million** last year to **HKD 17.99 million** this year[3](index=3&type=chunk) [Consolidated Statement of Financial Position](index=2&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2024, total assets remained stable at HKD 1.135 billion, while total equity grew 4.1% to HKD 817 million, with net current assets significantly increasing to HKD 367 million, indicating improved liquidity Key Data from Consolidated Statement of Financial Position (As of March 31) | Metric | 2024 (HKD thousands) | 2023 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 453,669 | 525,830 | -13.7% | | Total Current Assets | 681,329 | 600,376 | +13.5% | | **Total Assets** | **1,134,998** | **1,126,206** | **+0.8%** | | Total Current Liabilities | 314,196 | 337,008 | -6.8% | | **Total Liabilities** | **318,380** | **341,491** | **-6.8%** | | **Total Equity** | **816,618** | **784,715** | **+4.1%** | | Net Current Assets | 367,133 | 263,368 | +39.4% | [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=15&type=section&id=Business%20Review%20and%20Outlook) In FY2023/24, the Group faced challenges from rising interest rates and a declining property market, adopting prudent strategies; future prospects include potential recovery from policy changes and anticipated interest rate cuts [Business Review and Industry Overview](index=15&type=section&id=Business%20Review%20and%20Industry%20Overview) In FY2023/24, the Hong Kong residential property market declined due to global factors, leading to increased impairment provisions despite stable interest income; the Group responded with strict credit policies and a shift towards private loans - During the reporting period, continuous interest rate hikes, geopolitical tensions, and China's economic slowdown led to a sustained decline in the Hong Kong residential property market, with the Centa-City Leading Index decreasing from **168.27** points at the end of March 2023 to **147.08** points at the end of March 2024[51](index=51&type=chunk) - To address these challenges, the Group adopted prudent measures, including implementing strict credit policies, controlling loan-to-value ratios, adjusting interest rates to offset rising funding costs, and actively shifting its product portfolio towards private loan products[52](index=52&type=chunk) [Outlook](index=21&type=section&id=Outlook) Hong Kong's 2024 economic outlook remains uncertain, but the government's removal of property cooling measures and anticipated interest rate cuts offer recovery hope; the Group will maintain prudence and adjust strategies to capitalize on opportunities - The Hong Kong government's recent comprehensive removal of property cooling measures and anticipated interest rate cuts starting from the second half of 2024 are expected to stimulate property transactions and stabilize the market[81](index=81&type=chunk) - Facing an uncertain outlook, the company will continue to remain prudent, adhere to robust risk management policies, and actively adjust its strategies, including diversifying its loan portfolio, adjusting loan terms, and focusing on high-net-worth clients, to seize potential business opportunities[81](index=81&type=chunk) [Financial Review](index=16&type=section&id=Financial%20Review) Total revenue slightly decreased by 1.3% to HKD 159 million, while net profit declined 27.5% to HKD 42.7 million due to increased impairment provisions; operating expenses rose, but net interest margin improved to 16.0% [Revenue](index=16&type=section&id=Revenue) Total revenue for the year was HKD 158.9 million, a 1.3% decrease, with mortgage loan revenue declining 3.5% to HKD 104.4 million, while private loan revenue grew 3.4% to HKD 54.5 million Revenue Composition (For the Year Ended March 31) | Business Segment | 2024 (HKD millions) | 2023 (HKD millions) | YoY Change | | :--- | :--- | :--- | :--- | | Mortgage Loan Business | 104.4 | 108.2 | -3.5% | | Private Loan Business | 54.5 | 52.7 | +3.4% | | **Total Revenue** | **158.9** | **161.0** | **-1.3%** | [Impairment Losses](index=16&type=section&id=Impairment%20Losses) Net impairment provisions for loans receivable significantly increased to HKD 18 million this year, up from HKD 5.8 million, primarily due to deteriorating property market conditions, increased defaults, and declining collateral values - Due to the continuous deterioration of the property market and an increase in defaulted loans, total impairment provisions and write-offs recorded this year amounted to **HKD 18 million**, a significant increase from **HKD 5.8 million** last year[57](index=57&type=chunk)[58](index=58&type=chunk) - The Group has noted an increase in forced sale ratios and a decrease in the fair value of collateral, leading to a substantial increase in impairment provisions recognized this year[58](index=58&type=chunk) [Operating Expenses and Finance Costs](index=17&type=section&id=Operating%20Expenses%20and%20Finance%20Costs) Other operating expenses increased 16.3% to HKD 66.5 million due to higher personnel, marketing, and legal fees, while finance costs decreased from HKD 20.9 million to HKD 18.9 million - Other operating expenses increased by **HKD 9.3 million** (**+16.3%**), primarily due to higher staff welfare expenses, advertising and marketing expenses, and legal fees[59](index=59&type=chunk) - Finance costs decreased from **HKD 20.9 million** to **HKD 18.9 million**, mainly comprising interest on bank borrowings and amounts payable to a fellow subsidiary[62](index=62&type=chunk) [Profit and Net Interest Margin](index=18&type=section&id=Profit%20and%20Net%20Interest%20Margin) Profit and total comprehensive income attributable to owners of the company decreased 27.5% to HKD 42.7 million due to surging impairment provisions; however, net interest margin improved from 15.4% to 16.0% - Due to surging impairment provisions, profit and total comprehensive income attributable to owners of the company decreased by **27.5%** this year, from **HKD 58.9 million** in the previous year to **HKD 42.7 million**[64](index=64&type=chunk) - The net interest margin for the money lending business increased to **16.0%** this year (2023: **15.4%**), primarily due to higher interest rates charged to customers[63](index=63&type=chunk) [Liquidity and Capital Resources](index=18&type=section&id=Liquidity%20and%20Capital%20Resources) The Group's working capital is primarily from retained earnings, advances, and bank borrowings; as of March 31, 2024, it held HKD 28.4 million in cash and HKD 367 million in net current assets, with HKD 190 million in unutilized facilities, indicating sufficient liquidity Liquidity and Financial Resources Status (As of March 31) | Metric | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 28,376 | 29,875 | | Interest-bearing Bank and Other Borrowings | 246,342 | 230,102 | | Amounts Payable to a Fellow Subsidiary | 60,697 | 96,467 | | Net Current Assets | 367,133 | 263,368 | - As of March 31, 2024, the Group had unutilized drawable bank facilities of **HKD 50.2 million** and other unutilized facilities of **HKD 139.3 million**[66](index=66&type=chunk) [Key Financial Ratios](index=19&type=section&id=Key%20Financial%20Ratios) This year, the Group's current ratio and net interest margin improved to 2.17 and 16.0% respectively, while debt-to-equity ratio, return on equity, and interest coverage ratio all declined, reflecting weakened profitability and debt servicing capacity Key Financial Ratios | Ratio | 2024 | 2023 | | :--- | :--- | :--- | | Current Ratio | 2.17 | 1.78 | | Debt-to-Equity Ratio | 0.34 | 0.38 | | Net Interest Margin Ratio | 16.0% | 15.4% | | Return on Equity | 5.2% | 7.5% | | Interest Coverage Ratio | 4.0x | 4.9x | [Business Segment Performance](index=5&type=section&id=Business%20Segment%20Performance) [Property Mortgage Loans](index=5&type=section&id=Property%20Mortgage%20Loans) Property mortgage loans remain the core business, contributing 65.7% of total revenue, though segment revenue decreased 3.5% to HKD 104 million, and profit before tax declined significantly due to increased impairment provisions - The mortgage loan business remains the Group's primary source of revenue, accounting for approximately **65.7%** of total revenue this year[52](index=52&type=chunk) Property Mortgage Loans Segment Performance (For the Year Ended March 31) | Metric | 2024 (HKD thousands) | 2023 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 104,439 | 108,244 | -3.5% | | Net Impairment Provisions and Write-offs | (13,272) | (2,681) | +395.0% | | Profit Before Income Tax | 41,092 | 57,618 | -28.7% | [Personal Loans](index=5&type=section&id=Personal%20Loans) The personal loan business grew this fiscal year, with revenue increasing 3.4% to HKD 54.5 million, accounting for 34.3% of total revenue; despite increased impairment provisions, profit before tax remained at HKD 21.22 million, showing growth potential - Interest income from the unsecured personal loan business increased by **3.4%** to **HKD 54.5 million**, accounting for approximately **34.3%** of the Group's revenue this year[52](index=52&type=chunk) Personal Loans Segment Performance (For the Year Ended March 31) | Metric | 2024 (HKD thousands) | 2023 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 54,494 | 52,730 | +3.4% | | Net Impairment Provisions and Write-offs | (4,715) | (3,077) | +53.2% | | Profit Before Income Tax | 21,216 | 27,097 | -21.7% | [Significant Matters and Corporate Governance](index=11&type=section&id=Significant%20Matters%20and%20Corporate%20Governance) [Dividend Policy](index=11&type=section&id=Dividend%20Policy) The Board recommends a final dividend of 1.3 HK cents per share, bringing the total annual dividend to 2.6 HK cents per share, or HKD 10.79 million, consistent with the prior year Annual Dividends | Dividend Type | 2024 (HK cents per share) | 2023 (HK cents per share) | | :--- | :--- | :--- | | Interim Dividend | 1.3 | 1.3 | | Proposed Final Dividend | 1.3 | 1.3 | | **Total for the Year** | **2.6** | **2.6** | - The proposed final dividend of **HKD 5.395 million** is subject to shareholders' approval at the Annual General Meeting on September 4, 2024[37](index=37&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) [Corporate Governance and Compliance](index=20&type=section&id=Corporate%20Governance%20and%20Compliance) During the reporting period, the Group strictly complied with corporate governance and money lenders regulations; the Audit Committee reviewed annual results, and resources were invested in data management to meet 'Credit Reference Agency' requirements - The Group has complied in all material respects with the Money Lenders Ordinance and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, and the Directors are not aware of any matters that could lead to the suspension or non-renewal of the money lender's license[71](index=71&type=chunk) - The company's Audit Committee has reviewed the annual consolidated financial statements with management and the auditors and recommended them for Board approval[87](index=87&type=chunk) - To enhance the integrity and security of credit data management, the Group has invested resources in implementing the 'Credit Reference Agency' model and is soon to become an accredited member[60](index=60&type=chunk)