Revenue and Profitability - Revenue increased by 8.1% to approximately HK$179.3 million[17] - Profit attributable to equity shareholders increased by 0.3% to approximately HK$86.4 million[17] - Total revenue from the pawn loan business increased to HK$79,559,000 in 2024, up 7.5% from HK$74,309,000 in 2023[20] - Revenue from mortgage loan business rose to HK$99,748,000 in 2024, representing an increase of 8.8% compared to HK$91,532,000 in 2023[20] - The Group's profit for FY2024 increased to approximately HK$86.4 million from approximately HK$86.1 million in FY2023, representing an increase of approximately HK$0.3 million or 0.3%[116] - Revenue increased by approximately HK$13.5 million in FY2024, contributing to the overall profit growth[116] Loan Performance - Revenue from mortgage loan receivables increased by 9.0% to approximately HK$99.7 million[17] - Total amount of new mortgage loans granted decreased by 42.8% to approximately HK$341.2 million[17] - Average amount of mortgage loans granted decreased by 33.6% to approximately HK$3.9 million[17] - The total new mortgage loans granted during FY2024 amounted to approximately HK$341.2 million, a decrease from approximately HK$596.5 million in FY2023[78] - The average month-end balance for gross mortgage loans receivables increased from approximately HK$791.2 million in FY2023 to approximately HK$821.9 million in FY2024[78] - The average loan-to-value ratio for first mortgages was approximately 54.1%, while the average for subordinary mortgages was about 52.7%[67] Financial Ratios - Net profit margin decreased by 3.7 percentage points to 48.2%[17] - Operating profit margin decreased to 61.0% in 2024 from 67.8% in 2023[22] - Return on total assets was 7.3% in 2024, a slight decrease from 7.5% in 2023[36] - Current ratio improved to 11.1 in 2024 from 11.9 in 2023, indicating better short-term financial health[22] - Gearing ratio decreased to 7.7% in 2024 from 9.3% in 2023, reflecting reduced reliance on debt[22] - The effective tax rate remained stable at approximately 16.3% in FY2024 compared to 16.2% in FY2023[115] Impairment and Losses - Impairment losses on loan receivables in FY2024 amounted to approximately HK$15.1 million, measured under HKFRS 9[101] - Impairment losses on pawn loan receivables were approximately HK$4.8 million in FY2024, related to four pawn loan agreements[104] - Impairment losses on mortgage receivables were approximately HK$10.3 million in FY2024, primarily from defaulted loans[105] - The net profit margin decreased from 51.9% in FY2023 to 48.2% in FY2024, mainly due to impairment losses recognized on loan receivables of approximately HK$15.1 million[145] Operational Developments - The Group launched a premier service center at East Tsim Sha Tsui MTR Station, marking its first location in an MTR station[55] - A limited partnership fund was established with PACM Group to expand the loan portfolio overseas, targeting stable returns in a volatile market[56] - The Group maintained a cautious underwriting stance to build a resilient loan portfolio amid economic uncertainties[67] - The Group has established internal guidelines for granting pawn loans, with loan-to-value ratios typically ranging from 50% to 85%[159] - The Group's operational risk management includes regular identification and assessment of key operational exposures[165] Market Conditions - The Hong Kong economy is gradually recovering, which is expected to increase overall loan demand in the future[54] - Market conditions in Hong Kong, including economic conditions and property market trends, significantly impact the Group's business performance[166] - The residential property prices in Hong Kong declined by 6.8% in 2023, with the Group monitoring trends for potential investment opportunities[70] - Property prices in Hong Kong have adjusted to a relatively reasonable level, reducing business risk, according to the Directors[189][190] Staff and Expenses - Total staff costs for FY2024 were approximately HK$31.7 million, an increase from approximately HK$29.6 million in FY2023, with no change in the number of employees at 50[176][181] - Operating expenses increased by approximately HK$2.4 million or 4.2%, from approximately HK$57.1 million in FY2023 to approximately HK$59.5 million in FY2024[92] - Staff costs increased by approximately HK$2.1 million or 7.1%, from approximately HK$29.6 million in FY2023 to approximately HK$31.7 million in FY2024[93] Cash Flow and Liquidity - As of February 29, 2024, cash and cash equivalents amounted to approximately HK$170.6 million, representing a net increase of approximately HK$8.2 million compared to February 28, 2023[128] - The net cash generated from operating activities for the year ended February 29, 2024, was HK$72.1 million, slightly down from HK$73.1 million for the previous year[129] Strategic Initiatives - The Group will continue to integrate new technologies into the pawn sector to modernize the industry and maintain its leading position[188][190] - The Group strategically partnered with PACM Group (Holdings) Limited to establish a limited partnership fund, marking entry into the real estate private credit institutional investment management sector[189][190] - A new premium service center was launched at East Tsim Sha Tsui MTR Station, along with a cutting-edge mobile app to enhance customer experience and streamline loan applications[188][190] Dividends - The final dividend recommended is HK$0.76 cents per ordinary share, representing 40.1% of the profit attributable to shareholders for FY2024[196]

Financial Performance - Revenue for the fiscal year ending February 29, 2024, was HKD 179,307,000, an increase of 8.1% from HKD 165,841,000 in the previous year[3] - Profit before tax was HKD 103,282,000, reflecting a slight increase of 0.5% compared to HKD 102,727,000 in the prior year[3] - Net profit attributable to shareholders was HKD 86,447,000, up 0.4% from HKD 86,107,000 year-on-year[3] - Operating profit was HKD 109,412,000, a decrease from HKD 112,500,000 in the previous year[4] - The group reported a pre-tax profit of HKD 86,447,000 for 2024, slightly up from HKD 86,107,000 in 2023, reflecting a marginal growth of 0.4%[61] Assets and Liabilities - The total assets increased by 3.0% to HKD 1,188,706,000 from HKD 1,153,570,000[3] - The total equity rose by 4.8% to HKD 1,079,682,000 compared to HKD 1,030,045,000 in the previous year[3] - Total liabilities decreased from 89,815,000 HKD in 2023 to 101,811,000 HKD in 2024, reflecting a change of approximately 13.4%[25] - The net asset value increased from 1,030,045,000 HKD in 2023 to 1,079,682,000 HKD in 2024, representing a growth of around 4.8%[26] - The total lease liabilities decreased from HKD 15,540,000 in 2023 to HKD 13,985,000 in 2024, representing a reduction of approximately 10%[89] Revenue Sources - The company reported an increase in revenue from the sale of recovered assets due to stable brand watch prices and rising gold prices[18] - Revenue from the sale of recovered assets was approximately 58,300,000 HKD in 2024, compared to 49,200,000 HKD in 2023, marking an increase of about 18.5%[36] - The revenue from pawn loan business for the year 2024 was HKD 79,559,000, an increase from HKD 74,309,000 in 2023, representing a growth of approximately 3.4%[51] - The interest income from mortgage loans for 2024 was HKD 99,748,000, compared to HKD 91,532,000 in 2023, indicating an increase of about 8.5%[51] - The revenue from mortgage loans increased by 9.0% or HKD 8,200,000 to HKD 99,700,000 for the fiscal year ending February 29, 2024, compared to HKD 91,500,000 for the previous fiscal year[139] Expenses and Costs - Other operating expenses increased by 6.1% to approximately HKD 15,700,000, primarily due to higher legal and professional fees[10] - Employee costs rose from 20,368,000 HKD in 2023 to 21,737,000 HKD in 2024, an increase of approximately 6.7%[37] - The total employee costs for the fiscal year 2024 amounted to approximately HKD 31,700,000, an increase of about HKD 2,100,000 or 7.1% from the previous fiscal year[165] - Operating expenses increased by approximately HKD 2,400,000 or 4.2% to about HKD 59,500,000 for the fiscal year 2024[175] Dividends - The company proposed a final dividend of HKD 0.76 per share, down from HKD 0.87 in the previous year[16] - The company declared an interim dividend of HKD 20,043,000 for the fiscal year 2024, compared to HKD 17,730,000 for the previous year[137] - The group has paid dividends amounting to HKD 36,810,000 for the fiscal year 2024, down from HKD 38,550,000 in the previous year[183] Credit and Receivables - The expected credit loss provision amounted to approximately HKD 15,100,000 for the year, with HKD 1,100,000 written off due to borrowers' inability to fulfill their credit obligations[97] - The company’s receivables from pawn loans increased by 4.3% to approximately HKD 180,500,000 as of February 29, 2024[113] - The group’s total receivables amounted to HKD 973,929,000 in 2024, compared to HKD 953,230,000 in 2023, reflecting an increase of approximately 2.2%[95] - The impairment loss recognized for receivable loans was approximately HKD 15,100,000 for the fiscal year ending February 29, 2024[149] Financing and Debt - The total financing costs decreased to HKD 6,130,000 in 2024 from HKD 9,773,000 in 2023, a reduction of about 37.5%[56] - Financing costs decreased by approximately HKD 3,700,000 or 37.8% to about HKD 6,100,000 due to a reduction in issued debt securities[121] - The group has made repayments of debt securities amounting to HKD 12,000,000 in the fiscal year 2024, compared to HKD 50,000,000 in the previous year[183] Strategic Initiatives - The company has entered into a strategic partnership with PACM Group (Holdings) Limited to establish a limited partnership fund, marking its entry into the real estate private credit investment management sector[164] - The group aims to enhance customer experience and expand its potential customer base through a new premium service center and advanced mobile application at the East Tsim Sha Tsui Station[191] - The group has maintained a focus on modernizing the industry by integrating new technologies with its pawn business[191] Market Conditions - The company continues to monitor property price trends in Hong Kong, which saw a decline of 6.8% in 2023, to capture potential investment opportunities[142] - The group does not anticipate any significant foreign exchange risk for the fiscal year 2024, as the impact is minimal[194]

Financial Performance - Revenue increased by 10.0% to approximately HK$90.2 million[20] - Profit attributable to equity shareholders increased by 12.5% to approximately HK$49.6 million[20] - Net profit margin increased by 1.2 percentage points to 55.0%[20] - Profit for FP2024 increased to approximately HK$49.6 million from approximately HK$44.1 million in FP2023, representing an increase of approximately HK$5.5 million or 12.5%[60] - Earnings per share increased to 2.6 HK cents, compared to 2.3 HK cents in the previous year[107] - The Group's profit attributable to shareholders rose from HK$44,120,000 in 2022 to HK$49,648,000 in 2023, marking an increase of about 12.5%[168] Loan Portfolio - The principal of gross loan receivables increased by 10.8% to approximately HK$1,027.8 million[20] - Total amount of new pawn loans granted decreased by 16.1% to approximately HK$402.0 million[20] - Total amount of new mortgage loans granted decreased by 24.6% to approximately HK$282.7 million[20] - The average loan-to-value (LTV) ratio of the mortgage loan portfolio maintained at around 55.0%[20] - Loan receivables rose significantly to HKD 1,022,365,000 as of August 31, 2023, from HKD 885,304,000 as of February 28, 2023, indicating an increase of about 15.5%[109] - As of August 31, 2023, total loan receivables were HK$1,063.56 million, with HK$759.29 million classified as not past due[188] Interest Income and Margins - Net interest margin for pawn loans increased by 0.6 percentage points to 37.7%[20] - Net interest margin for mortgage loans increased by 0.8 percentage points to 11.4%[20] - Interest income from the pawn loan business increased by approximately HK$1.7 million or 4.9%, from approximately HK$34.6 million in FP2023 to approximately HK$36.3 million in FP2024[28] - Interest income from the mortgage loan business increased by approximately HK$4.7 million or 10.4%, from approximately HK$45.3 million in FP2023 to approximately HK$50.0 million in FP2024[38] - The net interest margin increased from approximately 15.6% in FP2023 to approximately 16.3% in FP2024, primarily due to a decrease in finance costs by approximately HK$1.6 million[89][91] Operating Expenses - Operating expenses increased by approximately HK$400,000 or 1.5% from approximately HK$26.7 million in FP2023 to approximately HK$27.1 million in FP2024[51] - Staff costs slightly increased by approximately HK$700,000 or 5.4% from approximately HK$13.0 million in FP2023 to approximately HK$13.7 million in FP2024[48] - Finance costs decreased by approximately HK$1.6 million or 34.8% from approximately HK$4.6 million in FP2023 to approximately HK$3.0 million in FP2024[53] Cash Flow and Liquidity - As of 31 August 2023, cash and cash equivalents amounted to approximately HK$91.3 million, representing a net decrease of approximately HK$71.1 million compared to 28 February 2023[69] - For FP2024, the net cash outflow from operating activities amounted to approximately HK$41.9 million, primarily due to an increase in loan receivables by approximately HK$110.3 million[70][72]. - The net cash outflow from financing activities for FP2024 was approximately HK$29.4 million, mainly attributed to dividend payments (approximately HK$16.8 million), finance costs (approximately HK$2.6 million), and repayment of debt securities (approximately HK$5.0 million)[70][72]. - The current ratio decreased from 11.9x as of 28 February 2023 to 10.4x as of 31 August 2023, mainly due to the decrease in cash and cash equivalents[78][85]. - The net decrease in cash and cash equivalents was HK$71,102,000, compared to a decrease of HK$108,104,000 in the same period last year, indicating an improvement of 34.3%[30] Market Conditions - The local real estate market remains stagnant, with no significant uptick in valuations or transactional momentum despite regulatory changes[35] - The Group's customer base is diversified, with no single customer exceeding 10% of total revenue during both periods[148] Strategic Initiatives - The Group launched a premium service center at East Tsim Sha Tsui MTR Station, enhancing its presence in Hong Kong's railway system and modernizing the pawn sector[90]. - A strategic partnership with PACM Group has been established to enter the real estate private credit institutional investment management sector, broadening revenue sources and customer base[93] - The company is focusing on digitalizing the pawn loan application process, providing a streamlined one-stop loan solution for customers[92] Impairment and Risk Management - Impairment losses on loan receivables in FP2024 were approximately HK$2.5 million, with no impairment losses recorded in FP2023[54] - The Group's impairment allowance on pawn loans increased to HK$2,462,000 as of August 31, 2023, from zero as of February 28, 2023, indicating a significant increase in risk assessment[184] - The ageing analysis showed that HK$20.2 million of pawn loans at amortized cost were past due for one month or more, with an expected credit loss allowance of HK$2.5 million recognized[191] Regulatory and Accounting Policies - The Group has applied new and amendments to HKFRSs effective from March 1, 2023, which are expected to affect the accounting policy disclosures in the Group's annual consolidated financial statements for the year ending February 29, 2024[128] - The financial statements have been prepared in accordance with the applicable disclosure provisions of the Listing Rules and HKAS 34[120] - The Group's accounting policies are consistent with those followed in the preparation of the annual consolidated financial statements for the year ended February 28, 2023[126]

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之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部分內容而 產生或因倚賴該等內容而引致之任何損失承擔任何責任。 （於開曼群島註冊成立之有限公司） （股份代號：1319） 截至二零二三年八月三十一日止六個月之 未經審核中期業績公佈、 宣派中期股息及 暫停辦理股份過戶登記手續 財務摘要 截至八月三十一日止六個月 | --- | --- | --- | --- | |----------------------|------------|------------|-------| | | 二零二三年 | 二零二二年 | 變動 | | | 千港元 | 千港元 | | | 收益 | 90,201 | 81,991 | 10.0% | | 除稅前溢利 | 59,332 | 52,684 | 12.6% | | 股東應佔期內溢利 | 49,648 | 44,120 | 12.5% | | 純利率 | 55.0% | 53.8% | | | 每股基本盈利（港仙） | 2.6 | 2.3 | | | 淨息差 | 16.3% | 15 ...

Revenue and Profit Growth - Revenue increased by 9.1% to approximately HK$165.8 million[19] - Profit attributable to equity shareholders increased by 20.1% to approximately HK$86.1 million[19] - Revenue from mortgage loan receivables increased by 10.6% to approximately HK$91.5 million[19] - Operating profit rose to HK$112,500,000 in 2023, representing a 14.1% increase from HK$98,082,000 in 2022[24] - Profit attributable to equity shareholders increased to HK$86,107,000 in 2023, up 20.2% from HK$71,671,000 in 2022[29] - Basic earnings per share improved to 4.5 HK cents in 2023, compared to 3.7 HK cents in 2022, reflecting a 21.6% increase[24] Loan Performance - Total amount of new pawn loans granted increased by 22.1% to approximately HK$966.3 million[19] - Total amount of new mortgage loans granted increased by 39.2% to approximately HK$596.5 million[19] - Average amount of pawn loans granted increased by 16.2% to approximately HK$13,600 per transaction[19] - Average amount of mortgage loans granted increased by 37.2% to approximately HK$5.9 million[19] - Number of new pawn loans (larger than HK$100,000) granted increased by 45.9% to 725 cases[19] - The number of pawn loan transactions exceeding HK$0.1 million increased from 497 in FY2022 to 725 in FY2023, with the average loan amount rising to approximately HK$13,600 per transaction[72] Profitability Metrics - Net profit margin increased by 4.7 percentage points to 51.9%[19] - Operating profit margin increased to 67.8% in 2023, up from 64.5% in 2022[36] - Return on total assets was 7.5% in 2023, an increase from 6.2% in 2022[38] - Return on equity rose from 7.3% in FY2022 to 8.4% in FY2023, reflecting improved profitability[128] - Net profit margin improved to 51.9% in 2023, compared to 47.2% in 2022[32] Financial Ratios - Current ratio improved to 11.9 in 2023, up from 8.9 in 2022, indicating better liquidity[24] - Gearing ratio decreased to 9.3% in 2023, down from 15.0% in 2022, reflecting reduced financial leverage[24] - Net interest margin for mortgage loans increased by 0.6 percentage points to 10.5%[19] - The gross mortgage loan receivables reached approximately HK$754.5 million, with new mortgage loans granted totaling approximately HK$596.5 million in FY2023[66] Operating Expenses and Income - Operating expenses increased by approximately HK$2.5 million or 4.6% from approximately HK$54.6 million in FY2022 to approximately HK$57.1 million in FY2023[93] - Finance costs decreased by approximately HK$2.6 million or 21.0% from approximately HK$12.4 million in FY2022 to approximately HK$9.8 million in FY2023[97] - Other income increased from approximately HK$3.0 million in FY2022 to approximately HK$3.7 million in FY2023, representing an increase of approximately HK$0.7 million or 23.3%[89] Strategic Initiatives - The Group plans to open a new premium service center at a busy MTR station and launch a pawn loan mobile application to enhance customer experience[57] - The Group aims to partner with reputable foreign funds to expand its loan portfolio overseas, targeting a more balanced and resilient portfolio[58] - The Group's strategic offshore expansion is expected to fuel the next phase of growth and enhance shareholder value in the long term[58] Risk Management and Compliance - The Group's risk management procedures are designed to identify and control various types of risk within the organization[157][159] - The performance of the Group's business is affected by market factors in Hong Kong, including economic conditions and property market conditions[154][159] - The Group has established standard procedures for ongoing monitoring of loan recoverability, including quarterly reviews of collateral market value[144][156] Shareholder Returns - A final dividend of HK$0.87 cents per ordinary share has been recommended, along with an interim dividend of HK$0.92 cents per share, representing 40.1% of the profit attributable to shareholders for FY2023[185][191] - The aggregate amount of distributable reserves was approximately HK$316.9 million, a decrease from approximately HK$348.0 million in 2022, reflecting a decline of about 9.5%[197] Staff and Operations - As of February 28, 2023, the Group had a total of 50 staff, with total staff costs approximately HK$29.6 million for FY2023, a slight increase from HK$29.5 million in FY2022[163][168] - The Group did not engage in any material acquisitions or disposals during FY2023[166][172]

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之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部分內容而 產生或因倚賴該等內容而引致之任何損失承擔任何責任。 （於開曼群島註冊成立之有限公司） （股份代號：1319） 截至二零二三年二月二十八日止年度之 年度業績公佈 財務摘要 二零二三年 二零二二年 變動 千港元 千港元 收益 165,841 151,977 9.1% 除稅前溢利 102,727 85,643 19.9% 股東應佔年內溢利 86,107 71,671 20.1% 純利率 51.9% 47.2% 每股基本盈利（港仙） 4.5 3.7 建議年內股息 －末期股息（港仙） 0.87 0.71 －特別股息（港仙） – 0.37 於二零二三年 於二零二二年 二月二十八日 二月二十八日 ...

Revenue and Profit Growth - Revenue increased by 7.6% to approximately HK$82.0 million[20] - Profit attributable to equity shareholders increased by 17.3% to approximately HK$44.1 million[20] - The Group's profit for FP2023 increased to approximately HK$44.1 million from approximately HK$37.6 million in FP2022, representing a 17.3% increase[60] - The increase in profit was mainly attributable to an increase in revenue of approximately HK$5.8 million and a decrease in finance costs of approximately HK$2.7 million[60] - Earnings per share rose to 2.3 cents, up from 1.9 cents, marking an increase of 21.1%[180][181] Loan and Mortgage Activity - Principal of gross loan receivables increased by 14.2% to approximately HK$1,016.8 million[20] - Total amount of new pawn loans granted increased by 36.9% to approximately HK$521.3 million[20] - Total amount of new mortgage loans granted increased by 91.7% to approximately HK$375.0 million[20] - The total amount of new mortgage loans granted during FP2023 was approximately HK$375.0 million, compared to HK$195.6 million in FP2022[36] - The Group recorded 54 new mortgage loan transactions during the period[27] Interest Margins and Loan Performance - Net interest margin for pawn loans decreased by 3.0 percentage points to 37.1%[20] - Net interest margin for mortgage loans increased by 0.8 percentage points to 10.6%[20] - Interest income from the pawn loan business rose by approximately HK$5.7 million or 19.7%, from approximately HK$28.9 million in FP2022 to approximately HK$34.6 million in FP2023[40] - The average loan amount per transaction increased to approximately HK$15,000 in FP2023, up from HK$11,100 in FP2022[30] - The average month-end balance for gross mortgage loans receivables increased from approximately HK$730.3 million in FP2022 to approximately HK$780.2 million in FP2023[36] Operating Expenses and Financial Position - Operating expenses increased by approximately HK$2.1 million or 8.5% from approximately HK$24.6 million in FP2022 to approximately HK$26.7 million in FP2023[49] - Finance costs decreased by approximately HK$2.7 million or 37.0% from approximately HK$7.3 million in FP2022 to approximately HK$4.6 million in FP2023[51] - The charge for impairment losses on loan receivables was HK$1.2 million in FP2022, while no impairment losses were recorded in FP2023[52] - The Group maintained a healthy financial position during FP2023, financing operational and capital requirements through retained earnings and loans[61] Asset Management and Future Plans - The Group acquired approximately HK$8.0 million in pawn loan receivables and opened a new pawnshop in Tuen Mun, bringing the total to 11 pawnshops[33] - The Group plans to expand its branch network to more convenient locations, such as MTR stations, to meet rising loan demand[85][86] - The Group is developing a mobile app to enable customers to make online appointments, get collateral evaluations, and apply for pawn loans[85][86] - The Group will continue to monitor credit risk closely while remaining prudent in loan granting amid uncertain market conditions[85][86] - The Group aims to balance business growth and risk management to maximize returns for shareholders[85][86] Economic and Market Conditions - The economic outlook for Hong Kong has been revised downwards to a real GDP growth forecast of -0.5% to 0.5% for 2022 due to worse-than-expected economic performance[82][85] - Revenue from the disposal of repossessed assets decreased due to a significant drop in brand watch prices and gold prices, impacting overall revenue negatively[44] - Other revenue increased from approximately HK$1.8 million in FP2022 to approximately HK$2.1 million in FP2023, representing a 16.7% increase, mainly due to a one-off government subsidy[44] Financial Ratios and Metrics - Return on total assets increased from approximately 6.4% in FP2022 to 7.4% in FP2023, while return on equity rose from 7.8% to 8.8%, and net profit margin improved from 49.4% to 53.8%, mainly due to an increase in net profit by approximately HK$6.5 million in FP2023[106] - Net interest margin increased from approximately 14.8% in FP2022 to approximately 15.6% in FP2023, attributed to a decrease in finance costs by approximately HK$2.7 million during FP2023[107] - The current ratio decreased from 8.9 times as of February 28, 2022, to 7.6 times as of August 31, 2022, primarily due to a decrease in cash and cash equivalents by approximately HK$94.1 million and an increase in bank overdrafts by approximately HK$21.0 million[96] - The gearing ratio remained stable at approximately 15.0% as of February 28, 2022, and approximately 15.1% as of August 31, 2022, with no material changes noted[97]

Revenue Performance - Revenue decreased by 16.8% to approximately HK$152.0 million[12] - Revenue from mortgage loan receivables decreased by 30.3% to approximately HK$82.7 million[12] - Revenue from mortgage loan business decreased significantly to HK$82,672,000 in 2022, down from HK$118,571,000 in 2021, a decline of 30.3%[16] - The Group's revenue decreased from approximately HK$182.8 million in FY2021 to approximately HK$152.0 million in FY2022, representing a decrease of approximately HK$30.8 million or 16.8%[75] - Revenue from the pawn loan business increased by approximately HK$5.1 million or 7.9%, from approximately HK$64.2 million in FY2021 to approximately HK$69.3 million in FY2022[75] Profitability - Profit attributable to equity shareholders decreased by 23.1% to approximately HK$71.7 million[12] - Operating profit for 2022 was HK$98,082,000, down from HK$133,005,000 in 2021, reflecting a decrease of 26.3%[16] - Profit attributable to equity shareholders decreased to HK$71,671,000 in 2022 from HK$93,144,000 in 2021, a decline of 23.0%[16] - The Group's profit for FY2022 decreased to approximately HK$71.7 million from approximately HK$93.1 million in FY2021, representing a decrease of approximately HK$21.4 million or 23.1%[98] - Basic earnings per share dropped to 3.7 HK cents in 2022, compared to 4.8 HK cents in 2021, a decrease of 22.9%[16] Margins - Net profit margin decreased by 3.8 percentage points to 47.2%[12] - Operating profit margin decreased to 64.5% in 2022 from 72.8% in 2021, indicating a decline of 8.3 percentage points[16] - Net profit margin also decreased to 47.2% in 2022 from 51.0% in 2021, a decline of 3.8 percentage points[16] - Return on total assets decreased from approximately 7.6% in FY2021 to 6.2% in FY2022, primarily due to a decrease in revenue from the mortgage business by approximately HK$35.9 million[132] - Return on equity decreased from approximately 9.8% in FY2021 to approximately 7.3% in FY2022, attributed to a decrease in borrowings and funding available for lending[133] Loan Performance - Gross pawn loan receivables increased by 23.4% to approximately HK$164.0 million[12] - Total amount of new pawn loans granted increased by 19.7% to approximately HK$791.1 million[12] - Average amount of mortgage loans granted increased by 56.3% to approximately HK$4.3 million[12] - Number of new mortgage loans granted decreased by 30.1% to 100 cases[12] - The total amount of pawn loans granted increased from approximately HK$660.9 million in FY2021 to approximately HK$791.1 million in FY2022, representing an increase of approximately HK$130.2 million or 19.7%[72] Financial Position - Current assets decreased to HK$1,093,407,000 in 2022 from HK$1,155,499,000 in 2021, a decrease of 5.4%[19] - Non-current liabilities decreased to HK$50,388,000 in 2022 from HK$91,773,000 in 2021, a decline of 45.0%[19] - Gearing ratio improved to 15.0% in 2022 from 26.2% in 2021, indicating a reduction in leverage[19] - The current ratio increased from approximately 6.5 times as of February 28, 2021, to approximately 8.9 times as of February 28, 2022[130] - The gearing ratio decreased from approximately 26.2% as of February 28, 2021, to approximately 15.0% as of February 28, 2022[131] Risk Management - The Group's operations are subject to various financial risks, including credit risk, interest rate risk, liquidity risk, and fair value risk, with credit risk being the primary concern[144] - The Group plans to strengthen risk management measures by increasing the proportion of first mortgage loans and tightening the loan-to-value ratio[188] - The Group's risk management procedures are designed to identify and control various types of risk, ensuring the best interests of the Group and its shareholders[167] Future Outlook - The Group anticipates more challenges in the upcoming financial year due to macroeconomic uncertainties and geopolitical risks[187] - Future loan demand in Hong Kong will largely depend on government disease prevention measures, with local businesses remaining cautious about expansion[182] - The Group sees opportunities to expand its market share as business activities are expected to pick up with the easing of COVID-19[52] Dividends - A final dividend of HK0.71 cents per ordinary share and a special dividend of HK0.37 cents per ordinary share were recommended, representing 50.1% of the profit attributable to shareholders for FY2022[198] Other Financial Metrics - Finance costs decreased by approximately HK$8.5 million or 40.7% from approximately HK$20.9 million in FY2021 to approximately HK$12.4 million in FY2022, primarily due to a reduction in bank loans and overdrafts[94] - The effective tax rate decreased from approximately 16.9% in FY2021 to approximately 16.3% in FY2022, mainly due to the absence of additional assessments in FY2022[97] - Other income decreased from approximately HK$7.9 million in FY2021 to approximately HK$3.0 million in FY2022, representing a decrease of approximately HK$4.9 million or 62.0%[86]

Financial Performance - Revenue decreased by 23.3% to approximately HK$76.2 million[15] - Profit attributable to equity shareholders decreased by 27.7% to approximately HK$37.6 million[15] - Net profit margin decreased by 3.0 percentage points to 49.4%[15] - The profit for FP2022 decreased to approximately HK$37.6 million from approximately HK$52.1 million in FP2021, representing a decrease of approximately 27.7%[60] - Revenue decreased by approximately HK$23.1 million, which contributed to the decline in profit[60] - Basic earnings per share is HK1.9 cents[15] - Profit from operations for the six months ended August 31, 2021, was HK$52.2 million, compared to HK$76.4 million in 2020[104] - Profit before taxation for the six months ended August 31, 2021, was HK$44.8 million, down from HK$63.5 million in 2020[104] - For the six months ended 31 August 2021, the profit attributable to shareholders was HK$37,611,000, a decrease of 27.8% from HK$52,053,000 in the same period of 2020[170] Loan and Interest Income - Total amount of new pawn loans granted increased by 17.2% to approximately HK$380.8 million[17] - Total amount of new mortgage loans granted increased by 7.4% to approximately HK$195.6 million[17] - Interest income from mortgage loan business decreased by approximately HK$23.8 million or 35.8% to approximately HK$42.8 million[20] - Interest income from pawn loan receivables increased by approximately HK$0.3 million or 1.0% from approximately HK$28.6 million in FP2021 to approximately HK$28.9 million in FP2022[36] - Interest income from mortgage loan receivables calculated using the effective interest method was HK$42.8 million for the six months ended August 31, 2021, down from HK$66.6 million in 2020, a decline of about 35.8%[140] - The average loan amount for pawn loans increased to approximately HK$11,100 per transaction in FP2022, up from HK$10,000 per transaction in FP2021[26] Operating Expenses and Costs - Finance costs decreased by approximately HK$5.5 million or 42.8% from approximately HK$12.8 million in FP2021 to approximately HK$7.3 million in FP2022[52] - Operating expenses decreased by approximately HK$0.5 million or 2.0% from approximately HK$25.1 million in FP2021 to approximately HK$24.6 million in FP2022[45] - Other income decreased by approximately HK$1.5 million or 45.5% to approximately HK$1.8 million in FP2022, primarily due to the absence of a one-time subsidy received in FP2021[43] - Staff costs increased to HK$12.2 million for the six months ended August 31, 2021, compared to HK$11.7 million in 2020, reflecting an increase of approximately 4.3%[156] Cash Flow and Liquidity - Cash and cash equivalents as of 31 August 2021 amounted to approximately HK$220.5 million, representing a net decrease of approximately HK$24.8 million compared to 28 February 2021[67] - The net cash inflow from operating activities for FP2022 was approximately HK$74.0 million, mainly due to operating profit of approximately HK$58.2 million[68] - The company reported a net decrease in cash and cash equivalents of HK$24,821,000 for the period, compared to an increase of HK$44,361,000 in the previous year[28] - Cash generated from operations for the six months ended August 31, 2021, was HKD 79,302,000, compared to HKD 248,431,000 in 2020, showing a significant decline of about 68.1%[112] Asset and Liability Management - Principal of gross loan receivables decreased by 2.2% to approximately HK$913.4 million[15] - The current ratio increased from 6.5 times as of February 28, 2021, to 8.7 times as of August 31, 2021, attributed to a decrease in other loans and current debt securities by approximately HK$23.3 million and HK$33 million respectively[88] - The Group's gearing ratio decreased from approximately 26.2% as of February 28, 2021, to approximately 19.3% as of August 31, 2021, mainly due to a reduction in other loans and current debt securities[89] - The total cash outflow for leases reflects a slight decrease of approximately 1.05% year-over-year[186] Market Outlook and Strategy - The Group remains positive about the prospects of its mortgage loan businesses, especially with the anticipated reopening of Hong Kong's borders[31] - The Group plans to strengthen risk management measures, including increasing the proportion of first mortgage loans and tightening the loan-to-value ratio in response to market recovery[79] - The Group will continue to explore new business opportunities to create long-term value for shareholders, despite the Federal Reserve's tapering of its bond-buying program[80] Taxation and Compliance - The effective tax rate decreased from approximately 18.0% in FP2021 to approximately 16.1% in FP2022[59] - The Group is not subject to any income tax in the Cayman Islands and the British Virgin Islands[165] - The two-tiered profits tax rates regime in Hong Kong taxes the first HK$2.0 million of profits at 8.25% and profits above that at 16.5%[164] Impairment and Credit Risk - The charge for impairment losses on loan receivables was HK$1.2 million in both FP2021 and FP2022, indicating ongoing concerns regarding collateral value[53][57] - The allowance for expected credit loss on mortgage loans amounted to approximately HK$6.3 million as of August 31, 2021, compared to HK$5.1 million as of February 28, 2021[200]

飄華押業 Oiwahpawn Oi Wah Pawnshop Credit Holdings Limited 華 押 業 信 貸 控 股 有 限 公 司 電 (Incorporated in the Cayman Islands with limited liability) ( 於 開 曼 群 島 註 冊 成 立 之 有 限 公 司 ) Stock Code 股份代號 : 01319 ANNUAL REPORT 年報 海開発 2 6 3 3 1 Contents 目錄 2 Company Information 公司資料 4 Financial Highlight 財務摘要 5 Five-Year Financial Summary 五年財務概要 9 Chairman Statement 主席報告 10 Management Discussion and Analysis 管理層討論及分析 20 Report of the Directors 董事會報告 35 Corporate Governance Report 企業管治報告 EP Directors and Senior Management 董事及高 ...