[Company Overview and Financial Summary](index=1&type=section&id=I.%20Company%20Overview%20and%20Financial%20Summary) [Financial Summary](index=1&type=section&id=I.A.%20Financial%20Summary) K Cash Group reported significant growth in interest income and profit for H1 2025, declaring an interim dividend of 4.4 HK cents per share Financial Highlights | Metric | Six Months Ended June 30, 2025 (HKD '000) | Six Months Ended June 30, 2024 (HKD '000) | | :--- | :--- | :--- | | Interest Income | 164,552 | 136,029 | | Profit for the Period | 44,230 | 34,307 | | Earnings Per Share (Basic & Diluted) | 8.85 HK cents | 6.86 HK cents | - The Board resolved to declare an interim dividend of **4.4 HK cents per share** for the six months ended June 30, 2025[3](index=3&type=chunk) [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=II.%20Interim%20Condensed%20Consolidated%20Financial%20Statements) [Consolidated Statement of Comprehensive Income](index=2&type=section&id=II.A.%20Consolidated%20Statement%20of%20Comprehensive%20Income) For H1 2025, the company achieved year-on-year growth in net interest income, operating profit, and profit, indicating enhanced profitability Consolidated Statement of Comprehensive Income | Metric | Six Months Ended June 30, 2025 (HKD '000) | Six Months Ended June 30, 2024 (HKD '000) | | :--- | :--- | :--- | | Interest Income | 164,552 | 136,029 | | Interest Expense | (18,509) | (14,585) | | Net Interest Income | 146,043 | 121,444 | | Other Income | 5,292 | 5,042 | | Net Other Losses | (2,355) | (923) | | Selling Expenses | (14,951) | (15,577) | | General and Administrative Expenses | (37,470) | (31,999) | | Net Expected Credit Losses | (43,916) | (36,407) | | Operating Profit | 52,643 | 41,580 | | Profit Before Income Tax | 51,869 | 41,285 | | Income Tax Expense | (7,639) | (6,978) | | Profit for the Period | 44,230 | 34,307 | | Total Comprehensive Income for the Period | 44,263 | 34,307 | | Basic and Diluted Earnings Per Share | 8.85 HK cents | 6.86 HK cents | [Consolidated Statement of Financial Position](index=3&type=section&id=II.B.%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets and equity grew, with loans to customers as the main asset, while cash equivalents decreased Consolidated Statement of Financial Position | Metric | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | **Assets** | | | | Cash and Cash Equivalents | 41,614 | 116,428 | | Loans and Advances to Customers | 1,318,080 | 1,232,380 | | Total Assets | 1,461,168 | 1,449,835 | | **Equity and Liabilities** | | | | Total Equity | 934,363 | 917,600 | | Bank and Other Borrowings | 497,269 | 491,902 | | Total Liabilities | 526,805 | 532,235 | | Total Equity and Liabilities | 1,461,168 | 1,449,835 | - Cash and cash equivalents decreased, primarily due to increased advances to customers and interest payments on bank and other borrowings[43](index=43&type=chunk) [Notes to the Interim Condensed Consolidated Financial Information](index=4&type=section&id=III.%20Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) [General Information](index=4&type=section&id=III.A.%20General%20Information) K Cash Group, incorporated in the Cayman Islands, primarily provides unsecured loans in Hong Kong and was listed on HKEX in December 2023 - The Company was incorporated as an exempted company in the Cayman Islands on **October 25, 2022**[6](index=6&type=chunk) - The Group primarily engages in providing **unsecured loans in Hong Kong**[7](index=7&type=chunk) - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on **December 5, 2023**[8](index=8&type=chunk) [Basis of Preparation and Accounting Policies](index=4&type=section&id=III.B.%20Basis%20of%20Preparation%20and%20Accounting%20Policies) Interim financial information is prepared under HKEX Listing Rules and HKAS 34, with consistent accounting policies and no significant impact from new standards [Basis of Preparation](index=4&type=section&id=III.B.1.%20Basis%20of%20Preparation) This interim financial information is prepared under HKEX Listing Rules Appendix D2 and HKAS 34 'Interim Financial Reporting' - The financial information is prepared in accordance with Appendix D2 of the HKEX Listing Rules and Hong Kong Accounting Standard 34 'Interim Financial Reporting'[9](index=9&type=chunk) [Accounting Policies](index=4&type=section&id=III.B.2.%20Accounting%20Policies) Accounting policies for interim financial information are consistent with the Group's annual consolidated financial statements for 2024 - The accounting policies adopted are consistent with those in the annual consolidated financial statements for the year ended **December 31, 2024**[10](index=10&type=chunk) [New and Revised Standards](index=4&type=section&id=III.B.3.%20New%20and%20Revised%20Standards) The Group adopted HKAS 21 and HKFRS 1 (Amendments) for 2025, with no significant impact expected on financial information - Adopted HKAS 21 and HKFRS 1 (Amendments) 'Lack of Exchangeability'[11](index=11&type=chunk) - The Directors' preliminary assessment indicates that the newly issued and revised standards and interpretations will not have any significant impact on the Group's operating results and financial position[12](index=12&type=chunk) [Accounting Estimates and Judgments](index=5&type=section&id=III.C.%20Accounting%20Estimates%20and%20Judgments) Key estimates and judgments for interim financial information are consistent with those applied in the 2024 annual consolidated financial statements - The key estimates and judgments made by management in applying accounting policies for the interim financial information are the same as those applied in the consolidated financial statements for the year ended **December 31, 2024**[13](index=13&type=chunk) [Segment Information and Revenue](index=6&type=section&id=III.D.%20Segment%20Information%20and%20Revenue) The Group's sole segment is unsecured lending in Hong Kong, with interest income mainly from homeowner loans; other income includes rent and credit cards, while net other losses are due to exchange fluctuations [Segment Information](index=6&type=section&id=III.D.1.%20Segment%20Information) The Group's executive directors review internal reports; unsecured lending in Hong Kong was the sole reportable segment for H1 2025 - The Group has only one operating segment, which is the provision of **unsecured loans in Hong Kong**[15](index=15&type=chunk) [Revenue Composition](index=6&type=section&id=III.D.2.%20Revenue%20Composition) For H1 2025, total interest income was HKD 164,552 thousand, primarily contributed by unsecured homeowner loans at HKD 121,400 thousand Interest Income by Source | Source of Interest Income | Six Months Ended June 30, 2025 (HKD '000) | Six Months Ended June 30, 2024 (HKD '000) | | :--- | :--- | :--- | | Unsecured Homeowner Loans | 121,400 | 96,789 | | Unsecured Personal Loans | 36,116 | 33,025 | | Credit Card Advances | 2,674 | 446 | | SME Loans | 4,362 | 5,769 | | **Total** | **164,552** | **136,029** | [Other Income and Net Other Losses](index=6&type=section&id=III.D.3.%20Other%20Income%20and%20Net%20Other%20Losses) For H1 2025, other income was HKD 5,292 thousand, mainly from related party rental and credit card income; net other losses were (HKD 2,355) thousand, impacted by exchange losses Other Income | Other Income | Six Months Ended June 30, 2025 (HKD '000) | Six Months Ended June 30, 2024 (HKD '000) | | :--- | :--- | :--- | | Rental income from fellow subsidiaries | 300 | 395 | | Rental income from a related party | 2,191 | 2,566 | | Bank interest income | 754 | 1,916 | | Credit card income | 2,019 | 164 | | Others | 28 | 1 | | **Total** | **5,292** | **5,042** | Net Other Losses | Net Other Losses | Six Months Ended June 30, 2025 (HKD '000) | Six Months Ended June 30, 2024 (HKD '000) | | :--- | :--- | :--- | | Net exchange losses | (7,483) | – | | Impairment allowance for recovered assets | (528) | – | | Change in surrender value of life insurance plan investments | 149 | (1,218) | | Fair value gain on derivative financial instruments | 5,884 | – | | Gain on termination of leases | – | 295 | | Loss on disposal of property, plant and equipment | (377) | – | | **Total** | **(2,355)** | **(923)** | [Loans and Advances to Customers](index=7&type=section&id=III.E.%20Loans%20and%20Advances%20to%20Customers) As of June 30, 2025, total loans and advances to customers amounted to HKD 1,318,080 thousand, primarily unsecured homeowner loans; net expected credit losses increased, and the company provided detailed aging analyses by overdue date and installment due date [Loan Portfolio Overview](index=7&type=section&id=III.E.1.%20Loan%20Portfolio%20Overview) As of June 30, 2025, total loans and advances to customers were HKD 1,428,893 thousand (net HKD 1,318,080 thousand), with unsecured homeowner loans being the largest portion Loans and Advances to Customers | Loan Type | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Unsecured Homeowner Loans | 1,135,559 | 1,037,042 | | Unsecured Personal Loans | 249,377 | 253,103 | | Credit Card Advances | 26,967 | 12,002 | | SME Loans | 16,990 | 47,168 | | **Total** | **1,428,893** | **1,349,315** | | Less: Impairment Allowance | (110,813) | (116,935) | | **Net Amount** | **1,318,080** | **1,232,380** | - Loans and advances to customers are unsecured, interest-bearing, and repayable over fixed terms agreed with customers[18](index=18&type=chunk) [Net Expected Credit Losses](index=7&type=section&id=III.E.2.%20Net%20Expected%20Credit%20Losses) For H1 2025, net expected credit losses were HKD 43,916 thousand, an increase from the prior year, primarily due to the expanded loan portfolio Net Expected Credit Losses | Metric | Six Months Ended June 30, 2025 (HKD '000) | Six Months Ended June 30, 2024 (HKD '000) | | :--- | :--- | :--- | | Net Expected Credit Losses | 43,916 | 36,407 | - Expected credit losses are measured based on whether credit risk has significantly increased since initial recognition (Stage 1 or Stage 2)[19](index=19&type=chunk) [Aging Analysis of Loans and Advances (by Overdue Date)](index=8&type=section&id=III.E.3.%20Aging%20Analysis%20of%20Loans%20and%20Advances%20(by%20Overdue%20Date)) As of June 30, 2025, current portions of homeowner and personal loans remain dominant, but overdue over 90 days also warrants attention; current credit card advances significantly increased Loans and Advances Aging Analysis (by Overdue Date) | Loan Type | Aging | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | :--- | | Unsecured Homeowner Loans | Current | 668,710 | 597,163 | | | Overdue over 90 days | 346,502 | 312,024 | | Unsecured Personal Loans | Current | 198,665 | 210,485 | | | Overdue over 90 days | 30,781 | 23,773 | | Credit Card Advances | Current | 24,076 | 5,501 | | | Overdue over 90 days | 1,397 | 511 | | SME Loans | Current | 3,647 | 15,476 | | | Overdue over 90 days | 5,110 | 24,757 | - As of June 30, 2025, the Group's impairment allowance for loans receivable was **HKD 110,813 thousand**, a decrease from **HKD 116,935 thousand** as of December 31, 2024[20](index=20&type=chunk) [Aging Analysis of Loans and Advances (by Installment Due Date)](index=9&type=section&id=III.E.4.%20Aging%20Analysis%20of%20Loans%20and%20Advances%20(by%20Installment%20Due%20Date)) As of June 30, 2025, most loans remain current, with unsecured homeowner loans having a current portion of HKD 942,025 thousand; the overdue over 90 days portion of SME loans significantly decreased Loans and Advances Aging Analysis (by Installment Due Date) | Loan Type | Aging | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | :--- | | Unsecured Homeowner Loans | Current | 942,025 | 846,387 | | | Overdue over 90 days | 171,328 | 167,963 | | Personal Loans | Current | 231,509 | 237,146 | | | Overdue over 90 days | 11,484 | 10,911 | | Credit Card Advances | Current | 26,188 | 11,853 | | | Overdue over 90 days | 339 | 65 | | SME Loans | Current | 12,132 | 23,025 | | | Overdue over 90 days | 3,200 | 21,590 | [Bank and Other Borrowings](index=10&type=section&id=III.F.%20Bank%20and%20Other%20Borrowings) As of June 30, 2025, total bank and other borrowings amounted to HKD 497,269 thousand, with interest rates ranging from 5.10% to 9.53% per annum; most borrowings are repayable within 1 to 2 years Bank and Other Borrowings | Borrowing Type | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Bank Loans | 365,593 | 351,926 | | Other Loans | 131,676 | 139,976 | | **Total** | **497,269** | **491,902** | Repayment Period | Repayment Period | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Within 1 year | 112,326 | 141,805 | | 1 to 2 years | 384,943 | 350,097 | | **Total** | **497,269** | **491,902** | - For the six months ended June 30, 2025, interest rates for bank and other borrowings ranged from **5.10% to 9.53% per annum**[23](index=23&type=chunk) [Dividends](index=10&type=section&id=III.G.%20Dividends) The Board has declared an interim dividend of 4.4 HK cents per ordinary share for the six months ended June 30, 2025, totaling HKD 22,000 thousand; previously, the company paid a final and special dividend of HKD 27,500 thousand for 2024 Dividends | Dividend Type | Six Months Ended June 30, 2025 (HKD '000) | Six Months Ended June 30, 2024 (HKD '000) | | :--- | :--- | :--- | | Dividends (paid) | 27,500 | 9,990 | | Dividends declared and payable after interim period | 22,000 | 17,000 | - The Board resolved to declare an interim dividend of **4.4 HK cents per ordinary share**, totaling **HKD 22,000 thousand**[25](index=25&type=chunk) [Earnings Per Share](index=11&type=section&id=III.H.%20Earnings%20Per%20Share) For H1 2025, basic and diluted earnings per share were 8.85 HK cents, up from 6.86 HK cents in the prior year, with no potential dilutive ordinary shares Earnings Per Share | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company (HKD '000) | 44,230 | 34,307 | | Weighted average number of shares in issue ('000 shares) | 500,000 | 500,000 | | Basic Earnings Per Share (HK cents) | 8.85 | 6.86 | - Diluted earnings per share for the six months ended June 30, 2025, were the same as basic earnings per share, as there were no potential dilutive ordinary shares outstanding during the period[27](index=27&type=chunk) [Income Tax Expense](index=11&type=section&id=III.I.%20Income%20Tax%20Expense) For the six months ended June 30, 2025, Hong Kong profits tax provision was made at a rate of 16.5% - Hong Kong profits tax provision has been made at a rate of **16.5%** on the estimated assessable profit[28](index=28&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=IV.%20Management%20Discussion%20and%20Analysis) [Business Review](index=12&type=section&id=IV.A.%20Business%20Review) The Group provides unsecured loans in Hong Kong, leveraging technology; homeowner loans are key, credit card advances grew, SME loans ceased due to risk, and fintech capabilities are enhanced for efficiency [Loan Business Overview](index=12&type=section&id=IV.A.1.%20Loan%20Business%20Overview) The Group primarily operates unsecured lending in Hong Kong under 'K Cash Express' and 'K Cash' brands, integrating technology for digitalization and automation - The Group primarily engages in lending, specializing in **unsecured loans**, and integrates technology for digitalization and automation[29](index=29&type=chunk) [Unsecured Homeowner Loans](index=12&type=section&id=IV.A.2.%20Unsecured%20Homeowner%20Loans) Unsecured homeowner loans remain the primary revenue source (73.8%), with interest income up 25.4% to HKD 121.4 million and receivables increasing to HKD 1,135.6 million - Unsecured homeowner loans remain the primary revenue source, accounting for approximately **73.8% of revenue**[30](index=30&type=chunk) - Interest income from unsecured homeowner loans increased by **25.4% to HKD 121.4 million**[30](index=30&type=chunk) - Loans receivable increased from **HKD 1,037.0 million to HKD 1,135.6 million**[30](index=30&type=chunk) [Personal Loans and Credit Card Advances](index=12&type=section&id=IV.A.3.%20Personal%20Loans%20and%20Credit%20Card%20Advances) Personal loan interest income rose 9.4% to HKD 36.1 million; credit card advances interest income surged fivefold to HKD 2.7 million, with receivables up 125% due to PayKool card promotion - Interest income from personal loans increased by approximately **9.4% to HKD 36.1 million**[31](index=31&type=chunk) - Interest income from credit card advances increased by approximately **5 times to HKD 2.7 million**[31](index=31&type=chunk) - Credit card advances receivables increased by approximately **125%**, from **HKD 12.0 million to HKD 27.0 million**, due to intensified promotion of PayKool credit cards[31](index=31&type=chunk) [SME Loan Strategy Adjustment](index=13&type=section&id=IV.A.4.%20SME%20Loan%20Strategy%20Adjustment) SME loan interest income decreased 24.4% to HKD 4.4 million, and receivables declined; the company ceased SME lending to focus on homeowner loans and credit cards - Interest income from SME loans decreased by **24.4% to HKD 4.4 million**[32](index=32&type=chunk) - Loans receivable decreased from **HKD 47.2 million to HKD 17.0 million**[32](index=32&type=chunk) - The company has made a strategic decision to **discontinue providing loans to SMEs** and focus resources on unsecured homeowner loans and credit card businesses[33](index=33&type=chunk) [Fintech Development](index=13&type=section&id=IV.A.5.%20Fintech%20Development) The Group enhanced KCash GO repayment module, integrated with bank partners, and upgraded data analytics and PayKool platform use cases to boost cross-selling and up-selling efficiency - Enhanced the KCash GO repayment module, integrating it with additional settlement bank partner systems[33](index=33&type=chunk) - Improved the data analytics platform and activity engine, and introduced customer engagement use cases on the PayKool platform to enhance cross-selling and up-selling efficiency[33](index=33&type=chunk) [Financial Review](index=13&type=section&id=IV.B.%20Financial%20Review) In H1 2025, total interest income grew 21.0%, driven by homeowner loans; other income increased, while interest and G&A expenses rose; net expected credit losses increased, leading to a profit of HKD 44.2 million [Interest Income](index=13&type=section&id=IV.B.1.%20Interest%20Income) In H1 2025, total interest income was HKD 164.5 million (+21.0%), driven by homeowner loans (+25.4% to HKD 121.4 million); personal loan income rose, while SME loan income fell - Total interest income was **HKD 164.5 million**, an increase of **21.0%** compared to the same period last year[34](index=34&type=chunk) - Interest income from unsecured homeowner loans increased by **25.4% to HKD 121.4 million**, primarily due to a **30.5% increase** in average loan balances[34](index=34&type=chunk) - Personal loan interest income increased by **9.4% to HKD 36.1 million**, while SME loan interest income decreased by **24.4% to HKD 4.4 million**[35](index=35&type=chunk) [Other Income](index=13&type=section&id=IV.B.2.%20Other%20Income) In H1 2025, other income was HKD 5.3 million, primarily due to increased credit card issuance and transaction volumes - Other income was **HKD 5.3 million**, mainly due to an increase in the number of credit cards issued and transactions made by credit cardholders during the reporting period[36](index=36&type=chunk) [Interest Expense](index=14&type=section&id=IV.B.3.%20Interest%20Expense) In H1 2025, interest expense was HKD 18.5 million, a 26.9% year-on-year increase, primarily due to an increase in average bank and other borrowings - Interest expense was **HKD 18.5 million**, an increase of **26.9%**, primarily due to the average bank and other borrowings increasing from **HKD 333.5 million to HKD 494.6 million**[37](index=37&type=chunk) [General and Administrative Expenses](index=14&type=section&id=IV.B.4.%20General%20and%20Administrative%20Expenses) In H1 2025, general and administrative expenses were HKD 37.5 million, a 17.1% year-on-year increase, primarily due to higher professional fees and technology-related enhancement expenses - General and administrative expenses were **HKD 37.5 million**, an increase of **17.1%**, primarily due to higher professional fees and technology-related enhancement expenses[38](index=38&type=chunk) [Selling Expenses](index=14&type=section&id=IV.B.5.%20Selling%20Expenses) In H1 2025, selling expenses were HKD 14.9 million, a 4.0% year-on-year decrease, primarily due to a slight reduction in employee benefit expenses - Selling expenses were **HKD 14.9 million**, a decrease of **4.0%**, primarily due to a slight reduction in employee benefit expenses[39](index=39&type=chunk) [Net Expected Credit Losses](index=14&type=section&id=IV.B.6.%20Net%20Expected%20Credit%20Losses) In H1 2025, net expected credit losses were HKD 43.9 million, an increase from the prior year, primarily due to the expanded loan portfolio - Net expected credit losses were **HKD 43.9 million**, with the increase primarily due to the expanded loan portfolio[40](index=40&type=chunk) [Profit for the Period](index=14&type=section&id=IV.B.7.%20Profit%20for%20the%20Period) In H1 2025, profit for the period reached HKD 44.2 million, a significant increase from HKD 34.3 million in the prior year - Profit for the period reached **HKD 44.2 million**, compared to **HKD 34.3 million** in H1 2024[41](index=41&type=chunk) [Liquidity and Financial Resources](index=15&type=section&id=IV.C.%20Liquidity%20and%20Financial%20Resources) The Group's funding channels include institutional loans and operating cash flow; net assets rose to HKD 934.4 million, but cash decreased due to loan advances and interest payments; most balances are in HKD, borrowings in HKD or JPY - Primary funding channels include loans or financing from authorized institutions, cash flows from operating activities, and funding from a Japanese funding provider[42](index=42&type=chunk) - As of June 30, 2025, net assets were **HKD 934.4 million**, and cash and cash equivalents were **HKD 41.6 million** (December 31, 2024: HKD 116.4 million)[43](index=43&type=chunk) - Cash and cash equivalents decreased, primarily due to increased advances to customers and interest payments on bank and other borrowings[43](index=43&type=chunk) - Most cash and bank balances are denominated in **HKD**, while borrowings are denominated in **HKD or JPY**[44](index=44&type=chunk) [Capital Structure and Treasury Policy](index=15&type=section&id=IV.D.%20Capital%20Structure%20and%20Treasury%20Policy) The company maintains prudent financial management and monitors liquidity; as of June 30, 2025, unutilized bank facilities were HKD 190.0 million, with borrowings used for working capital and secured by loans - The Company adopts a prudent financial management approach for its treasury policy, closely monitoring its liquidity position[45](index=45&type=chunk) - As of June 30, 2025, unutilized bank facilities available to the Group amounted to **HKD 190.0 million**[45](index=45&type=chunk) - Bank and other borrowings of **HKD 481.2 million** are used as working capital, with interest rates ranging from **5.10% to 9.53% per annum**[45](index=45&type=chunk) - All bank and other borrowings are repayable on demand and secured by loans and interest receivables[46](index=46&type=chunk) [Key Operating Data](index=16&type=section&id=IV.E.%20Key%20Operating%20Data) As of June 30, 2025, total loans increased to HKD 1,429.0 million, with unsecured homeowner loans accounting for 79.4%; average loan size and tenure varied, and total impairment allowance was HKD 110,813 thousand [Loan Portfolio Breakdown](index=16&type=section&id=IV.E.1.%20Loan%20Portfolio%20Breakdown) As of June 30, 2025, total loans were HKD 1,429.0 million, with 12,791 accounts; homeowner loans accounted for 79.4%, and credit card advances increased to 1.9% Loan Portfolio Breakdown | Loan Type | Number of Loan Accounts (June 30, 2025) | Amount (HKD million, June 30, 2025) | % (June 30, 2025) | Number of Loan Accounts (December 31, 2024) | Amount (HKD million, December 31, 2024) | % (December 31, 2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Unsecured Homeowner Loans | 3,027 | 1,135.6 | 79.4 | 2,899 | 1,037.0 | 76.8 | | Personal Loans | 5,345 | 249.4 | 17.5 | 5,281 | 253.1 | 18.8 | | Credit Card Advances | 4,394 | 27.0 | 1.9 | 1,385 | 12.0 | 0.9 | | SME Loans | 25 | 17.0 | 1.2 | 38 | 47.2 | 3.5 | | **Total** | **12,791** | **1,429.0** | **100.0** | **9,603** | **1,349.3** | **100.0** | [Average Loan Size](index=16&type=section&id=IV.E.2.%20Average%20Loan%20Size) For H1 2025, the overall average loan size was HKD 174.1 thousand, with SME loans having the largest average size at HKD 2,193.1 thousand Average Loan Size | Loan Type | Six Months Ended June 30, 2025 (HKD '000) | Year Ended December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Unsecured Homeowner Loans | 384.1 | 372.0 | | Personal Loans | 58.9 | 66.2 | | SME Loans | 2,193.1 | 1,475.5 | | **Overall** | **174.1** | **155.4** | [Average Loan Tenure](index=16&type=section&id=IV.E.3.%20Average%20Loan%20Tenure) As of June 30, 2025, the average tenure for unsecured homeowner loans was 60.4 months, while personal and SME loan tenures shortened Average Loan Tenure | Loan Type | June 30, 2025 (Months) | December 31, 2024 (Months) | | :--- | :--- | :--- | | Unsecured Homeowner Loans | 60.4 | 49.8 | | Personal Loans | 21.1 | 29.5 | | SME Loans | 24.1 | 37.7 | | **Overall** | **35.3** | **36.1** | [Aging Analysis of Loans and Advances (by Installment Due Date)](index=17&type=section&id=IV.E.4.%20Aging%20Analysis%20of%20Loans%20and%20Advances%20(by%20Installment%20Due%20Date)) As of June 30, 2025, most loans remain current, with unsecured homeowner loans having a current portion of HKD 942,025 thousand; overdue over 90 days for SME loans significantly decreased Loans and Advances Aging Analysis (by Installment Due Date) | Loan Type | Aging | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | :--- | | Unsecured Homeowner Loans | Current | 942,025 | 846,387 | | | Overdue over 90 days | 171,328 | 167,963 | | Personal Loans | Current | 231,509 | 237,146 | | | Overdue over 90 days | 11,484 | 10,911 | | Credit Card Advances | Current | 26,188 | 11,853 | | | Overdue over 90 days | 339 | 65 | | SME Loans | Current | 12,132 | 23,025 | | | Overdue over 90 days | 3,200 | 21,590 | [Impairment Allowance Breakdown](index=17&type=section&id=IV.E.5.%20Impairment%20Allowance%20Breakdown) As of June 30, 2025, total impairment allowance was HKD 110,813 thousand, with unsecured homeowner loans accounting for HKD 20,212 thousand Impairment Allowance Breakdown | Loan Type | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Unsecured Homeowner Loans | 20,212 | 21,930 | | Personal Loans | 65,115 | 72,034 | | Credit Card Advances | 7,060 | 1,789 | | SME Loans | 9,789 | 29,819 | | **Total** | **110,813** | **116,935** | [Key Financial Ratios](index=18&type=section&id=IV.F.%20Key%20Financial%20Ratios) As of June 30, 2025, the debt-to-equity ratio was 0.51, and the interest coverage ratio was 3.8 times, consistent with the prior year Key Financial Ratios | Financial Ratio | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Debt-to-Equity Ratio | 0.51 | 0.45 | Key Financial Ratios | Financial Ratio | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Interest Coverage Ratio | 3.8 times | 3.8 times | - Debt-to-equity ratio is calculated as net debt divided by total equity[56](index=56&type=chunk) - Interest coverage ratio is calculated as profit before tax and interest divided by interest expense[56](index=56&type=chunk) [Outlook and Prospects](index=18&type=section&id=IV.G.%20Outlook%20and%20Prospects) Unsecured loan market is expected to grow with property market recovery, and credit card business continues significant growth; the company will invest in AI and data analytics to enhance efficiency and customer experience, launching new platform features and implementing generative AI for automation [Market Recovery and Growth Drivers](index=18&type=section&id=IV.G.1.%20Market%20Recovery%20and%20Growth%20Drivers) Unsecured loan market is expected to be driven by property market recovery, rising credit financing demand, and digital transformation; credit cardholders significantly increased by 133% to 4,464, indicating sustained growth in this business - The unsecured loan market is expected to be driven by property market recovery, rising credit financing demand, and digital transformation of financial services[54](index=54&type=chunk) - The number of credit cardholders significantly increased by approximately **133% to 4,464**, indicating substantial and sustained growth in the credit card business[54](index=54&type=chunk) [Technology and AI Investment](index=18&type=section&id=IV.G.2.%20Technology%20and%20AI%20Investment) Innovative AI and data analytics are expected to enhance operational efficiency and customer experience; the company will continue to invest in advanced systems and digital platforms to streamline processes and ensure customer data security - Innovative artificial intelligence and data analytics are expected to enhance operational efficiency and customer experience[55](index=55&type=chunk) - The company continuously invests in advanced systems and digital platforms to streamline processes, provide a seamless customer experience, and ensure the security and privacy of customer data[55](index=55&type=chunk) [Future Platform Features and Efficiency Enhancement](index=19&type=section&id=IV.G.3.%20Future%20Platform%20Features%20and%20Efficiency%20Enhancement) In H2 2025, KCash will launch smart credit assessment, PayKool will enhance credit card advances and introduce smart credit alerts; the company will also implement generative AI internally for automation - The KCash platform will launch a smart credit assessment report feature, offering free instant credit score evaluations[57](index=57&type=chunk) - The PayKool platform will enhance credit card advance features and introduce smart credit alert functions[57](index=57&type=chunk) - The company is developing initiatives for multiple generative AI use cases and gradually implementing them internally to automate routine tasks and enhance corporate efficiency[57](index=57&type=chunk) [Other Information](index=19&type=section&id=V.%20Other%20Information) [Significant Acquisitions and Disposals](index=19&type=section&id=V.A.%20Significant%20Acquisitions%20and%20Disposals) During the reporting period, the Group did not undertake any significant acquisitions or disposals of assets - During the reporting period, the Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures[58](index=58&type=chunk) [Material Investments](index=19&type=section&id=V.B.%20Material%20Investments) During the reporting period, the Group had no material investments and currently has no plans for future material investments or capital assets - During the reporting period, the Group had no material investments[59](index=59&type=chunk) - As of the date of this announcement, the Group has no future plans regarding material investments or capital assets[59](index=59&type=chunk) [Pledge of Assets](index=19&type=section&id=V.C.%20Pledge%20of%20Assets) As of June 30, 2025, loans receivable totaling HKD 806.2 million were pledged as collateral for bank and other borrowings - As of June 30, 2025, certain loans receivable totaling **HKD 806.2 million** were pledged as collateral for bank and other borrowings[60](index=60&type=chunk) [Foreign Exchange Risk](index=19&type=section&id=V.D.%20Foreign%20Exchange%20Risk) The Group's business is in HKD, with foreign exchange risk mainly from JPY borrowings; risk is managed by reviewing exposure, monitoring rates, and using forward foreign exchange contracts for hedging - The Group's business activities are denominated in **HKD**, with foreign exchange risk primarily arising from **JPY-denominated borrowings**[61](index=61&type=chunk) - The Group has arranged forward foreign exchange contracts to hedge against foreign exchange risk arising from funding from a Japanese funding provider[61](index=61&type=chunk) [Employees and Remuneration Policy](index=20&type=section&id=V.E.%20Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 67 staff, with employee benefit expenses of HKD 20.0 million; remuneration policy covers position, responsibilities, and performance - As of June 30, 2025, the Group employed **67 staff** (December 31, 2024: 61 staff)[62](index=62&type=chunk) - During the reporting period, employee benefit expenses amounted to **HKD 20.0 million**[62](index=62&type=chunk) - The remuneration policy covers employee position, responsibilities, and performance, including salaries, overtime allowances, bonuses, and various subsidies[62](index=62&type=chunk) [Employee Training Programs](index=20&type=section&id=V.F.%20Employee%20Training%20Programs) The Group values employee sustainable development, continuously improving its internal staff training system and formulating specific training and development plans to enhance skills - The Group values employee sustainable development, continuously improving its internal staff training system and formulating specific training and development plans[63](index=63&type=chunk) [Contingent Liabilities](index=20&type=section&id=V.G.%20Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[64](index=64&type=chunk) [Interim Dividend](index=20&type=section&id=V.H.%20Interim%20Dividend) The Board resolved to declare an interim dividend of 4.4 HK cents per share for the six months ended June 30, 2025 - The Board resolved to declare an interim dividend of **4.4 HK cents per share** for the six months ended June 30, 2025[65](index=65&type=chunk) [Corporate Governance](index=20&type=section&id=V.I.%20Corporate%20Governance) The Group is committed to high corporate governance standards and complied with all applicable code provisions of the Corporate Governance Code throughout the reporting period - The Group is committed to maintaining high standards of corporate governance and has complied with all applicable code provisions of the Corporate Governance Code throughout the reporting period[66](index=66&type=chunk) [Standard Code for Securities Transactions](index=21&type=section&id=V.J.%20Standard%20Code%20for%20Securities%20Transactions) The Company adopted the Standard Code for securities transactions by directors and employees, with all directors confirming full compliance during the reporting period - The Company has adopted the Standard Code as the code of conduct for securities transactions by its Directors and relevant employees of the Group[67](index=67&type=chunk) - All Directors have confirmed their full compliance with the Standard Code during the reporting period[67](index=67&type=chunk) [Audit Committee Review of Results](index=21&type=section&id=V.K.%20Audit%20Committee%20Review%20of%20Results) The Audit Committee reviewed the Group's unaudited interim results for H1 2025, discussing accounting principles, financial reporting, and internal controls with management, with no disagreements - The Audit Committee has reviewed the Group's unaudited interim condensed consolidated results for the six months ended June 30, 2025, with no disagreements[68](index=68&type=chunk) [No Material Changes](index=21&type=section&id=V.L.%20No%20Material%20Changes) Except as disclosed, there were no material changes affecting the Group's performance during the reporting period - During the reporting period, there were no material changes affecting the Group's performance that require disclosure under paragraphs 32, 40(2), and 46(3) of Appendix D2 to the Listing Rules[69](index=69&type=chunk) [Events After Reporting Period](index=21&type=section&id=V.M.%20Events%20After%20Reporting%20Period) From June 30, 2025, up to the date of this announcement, there have been no material events affecting the Group - From June 30, 2025, up to the date of this announcement, there have been no material events affecting the Group[70](index=70&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=21&type=section&id=V.N.%20Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[71](index=71&type=chunk) [Compliance with Laws and Regulations](index=21&type=section&id=V.O.%20Compliance%20with%20Laws%20and%20Regulations) The Group complied with all material laws and regulations affecting its money lending business, and Directors are unaware of any matters that could revoke its license - The Group has complied in all material respects with all laws and regulations significantly affecting its money lending business during the reporting period[72](index=72&type=chunk) - The Directors are unaware of any matters that could lead to the revocation of the money lender's license before its expiry date[72](index=72&type=chunk) [Use of Proceeds from Global Offering](index=22&type=section&id=V.P.%20Use%20of%20Proceeds%20from%20Global%20Offering) Net proceeds of HKD 181.2 million from the global offering will continue to be used as outlined in the prospectus; HKD 4.2 million was used for technology, with the remaining HKD 18.5 million expected by December 2026 - Net proceeds from the global offering were approximately **HKD 181.2 million**, which will continue to be used for the same purposes outlined in the prospectus[73](index=73&type=chunk) Use of Proceeds from Global Offering | Purpose | Planned Application (HKD million) | Amount Utilized as of June 30, 2025 (HKD million) | Expected Timeline for Full Utilization of Remaining Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | | Enhance technological capabilities | 30.6 | 4.2 | By December 2026 | | Expand loan portfolio | 133.6 | – | – | | General working capital and general corporate purposes | 17.0 | – | – | | **Total** | **181.2** | **4.2** | | [Suspension of Share Register Closure](index=22&type=section&id=V.Q.%20Suspension%20of%20Share%20Register%20Closure) To determine interim dividend eligibility, share transfer registration will be suspended from September 3-5, 2025; record date is September 5, 2025, with payment expected on September 12, 2025 - The Company will suspend share transfer registration from **September 3 to September 5, 2025**[75](index=75&type=chunk) - The record date is **September 5, 2025**, and the interim dividend is expected to be paid on **September 12, 2025**[75](index=75&type=chunk) [Publication of Interim Results and Interim Report](index=22&type=section&id=V.R.%20Publication%20of%20Interim%20Results%20and%20Interim%20Report) This announcement and the interim report will be published in due course on the HKEX website and the Company's website - This announcement and the interim report will be published in due course on the HKEX website (www.hkexnews.hk) and the Company's website (www.kcash.hk)[76](index=76&type=chunk) [Definitions and Board Information](index=23&type=section&id=VI.%20Definitions%20and%20Board%20Information) [Definitions](index=23&type=section&id=VI.A.%20Definitions) This section provides definitions for key terms used in the report, including 'Listing Rules', 'Reporting Period', 'Shares', and 'Corporate Governance Code' - Reporting Period refers to the six months ended **June 30, 2025**[78](index=78&type=chunk) - Unsecured homeowner loans refer to unsecured loans provided by the Group to borrowers who are property owners but have not provided any collateral for the loans[83](index=83&type=chunk) [Board Information](index=24&type=section&id=VI.B.%20Board%20Information) This section lists the members of the Company's Board of Directors as of the announcement date, including executive, non-executive, and independent non-executive directors - As of the date of this announcement, the Company's Board of Directors includes Executive Directors Mr. Li Kun Tai and Ms. Wong Cheuk Sze, Non-executive Directors Mr. Li Sheung Shing, Ms. Li Bik Chung, Ms. Chan Wing Sze and Ms. Kan Pui Yan, and Independent Non-executive Directors Professor Hon Wai Ming, JP, Mr. Mak Wing Sum and Mr. Leung Ka Cheong[82](index=82&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 會 就 因 本 公 告 全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 K Cash Corporation Limited 於 本 公 告 日 期，本 公 司 董 事 會 包 括 執 行 董 事 李 根 泰 先 生 及 黃 卓 詩 女 士，非 執 行 董 事 李 常 盛 先 生、李 碧 葱 女 士、陳 詠 詩 女 士 及 簡 珮 茵 女 士，以 及 獨 立 非 執 行 董 事 洪 爲 民 教 授 太 平 紳 士、麥 永 森 先 生 及 梁 家 昌 先 生。 K Cash集團有限公司 （於開曼群島註冊成立的有限公司） （股 份 代 號：2483） 承董事會命 K Cash集團有限公司 主 席 李常盛 香 港，二 零 二 五 年 八 月 七 日 董事會會議召開日期 K Cash集團有限公司（「本公司」，連 同 其 附 屬 公 司「本集團」）董 事（「董 事」）會（「董 事 會」）謹 此 宣 佈，董 事 會 會 議 將 ...

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 | 狀態: | | --- | | 新提交 | | 截至月份: 2025年7月31日 | 致：香港交易及結算所有限公司 公司名稱: K Cash 集團有限公司 呈交日期: 2025年8月4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) | 02483 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 3,900,000,000 | HKD | | 0.0001 HKD | | | 390,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | | 0 | | 本月底結存 | | | 3,900,000,000 | HKD | | 0.0001 HKD | ...

Financial Performance - For the fiscal year ending December 31, 2024, interest income increased to HKD 281,597,000 from HKD 248,734,000, representing a growth of 13.0%[2] - Net profit for the year rose to HKD 63,754,000, compared to HKD 51,566,000 in the previous year, marking a significant increase of 23.5%[4] - Basic and diluted earnings per share decreased slightly to HKD 12.75 from HKD 13.42, reflecting a decline of 5.0%[4] - Total revenue for 2024 reached HKD 281,597,000, up from HKD 248,734,000 in 2023, indicating an increase of 13.2%[15] - The profit attributable to equity holders for the year ended December 31, 2024, was HKD 63,754,000, an increase from HKD 51,566,000 in 2023, representing a growth of approximately 23.3%[21] - Profit for the reporting period reached HKD 63.8 million, up from HKD 51.6 million in 2023[46] Dividends - The board proposed a final dividend of HKD 0.20 per share and a special dividend of HKD 2.5 per share, compared to no special dividend in the previous year[2] - The company proposed a final dividend of 3.0 HKD cents per share and a special dividend of 2.5 HKD cents per share for a total of HKD 27,500,000, pending shareholder approval[25] - The interim dividend declared for the year was 3.4 HKD cents per share, totaling HKD 17,000,000, which was paid on October 20, 2024[24] - The company’s total dividend for the year 2023 was HKD 100,000,000, which was not declared in 2024[23] Assets and Liabilities - Total assets as of December 31, 2024, amounted to HKD 1,449,835,000, up from HKD 1,241,597,000, indicating an increase of 16.8%[5] - Total liabilities increased to HKD 532,235,000 from HKD 360,707,000, which is a rise of 47.5%[5] - The total loans and advances to customers amounted to HKD 1,349,315,000 in 2024, up from HKD 1,073,847,000 in 2023, marking an increase of about 25.6%[26] - The total amount of receivables pledged as collateral for bank and other borrowings was HKD 547.6 million, down from HKD 821.1 million in 2023[71] Income and Expenses - The net interest income rose to HKD 250,561,000, up from HKD 223,552,000, reflecting an increase of 12.1%[4] - The company reported a significant increase in other income, which rose to HKD 9,629,000 from HKD 4,959,000, a growth of 94.5%[4] - Employee benefits expenses totaled HKD 104,825,000 in 2024, slightly down from HKD 105,623,000 in 2023, reflecting a decrease of 0.8%[17] - Advertising and marketing expenses surged to HKD 23,205,000 in 2024, compared to HKD 11,409,000 in 2023, marking an increase of 103.4%[17] - The total tax expense for 2024 was HKD 10,272,000, down from HKD 15,174,000 in 2023, indicating a decrease of 32.4%[19] Loans and Advances - The company provided unsecured loans totaling HKD 1,037,042,000, with non-overdue loans amounting to HKD 597,163,000, which is an increase from HKD 363,312,000 in 2023[28] - Unsecured homeowner loans accounted for approximately 72.0% of the group's revenue, up from 68.7% in 2023, with interest income rising by 18.5% to HKD 202.6 million[34] - Interest income from unsecured homeowner loans increased to HKD 202.6 million, driven by an average loan balance growth of 20.3% to HKD 910.5 million[38] - The average loan size for unsecured owner-occupied loans increased to HKD 372.0 thousand in 2024 from HKD 319.2 thousand in 2023[54] Credit Loss and Impairment - The expected credit loss for the year was HKD 77,364,000, compared to HKD 55,757,000 in 2023, which is an increase of approximately 38.7%[27] - The impairment provisions increased to HKD 116,935,000 in 2024 from HKD 109,455,000 in 2023, representing a rise of about 6.5%[58] Financial Ratios - The asset-to-liability ratio significantly increased to 0.45 in 2024 from 0.16 in 2023, indicating a substantial rise in leverage[59] - The return on assets improved to 4.7% in 2024 compared to 4.4% in 2023, while the return on equity rose to 7.1% from 6.4%[59] Strategic Initiatives - The company launched the PayKool platform, which supports instant issuance of virtual cards and various electronic wallet transactions, enhancing customer experience[36] - The company launched a "Buy Now, Pay Later" service and began offering credit card advances during the reporting period, aiming to capture growth opportunities in the market[63] - The company completed the first phase of the K Cash GO platform's digital transformation project, enhancing business processes and technology components[65] - The company plans to upgrade its artificial intelligence credit model by 2025 to provide more accurate personalized risk-based pricing[67] Market Outlook - The outlook remains cautious due to weak consumer sentiment and a sluggish property market, although government measures are expected to boost the market in the short term[64] Compliance and Governance - The company has maintained compliance with all relevant laws and regulations affecting its lending business during the reporting period[85]

K CASH % - - Interim Report 2024 中期報告 K CASH CORPORATION LIMITED K CASH 集團有限公司 | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-----------------------------------------------------|-------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | K CASH CORPORATION LIMITED | | | | | | | | | | K CASH 集團有限公司 | | | | | | | | | | | | | | | | | | | | ( 於開曼群島註冊成立的有限公司 ) 股份代號 : 2483 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 會 就 因 本 公 告 全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責 任。 K Cash Corporation Limited K Cash集團有限公司 （於開曼群島註冊成立的有限公司） （股 份 代 號：2483） 截至二零二四年六月三十日止六個月的 中期業績公告 | --- | --- | --- | |------------------------------------------------------------|--------------------------------------------------------------|-----------------------------------| | | | | | 財務摘要 | | | | | 截至六月三十日止六個月 二零二四年 千港元 （未 經 審 核） | 二零二三年 千港元 （未 經 審 核） | | 利息收入 | 136,029 ...

Financial Performance - Interest income for the year ended 31 December 2023 was HK$248.7 million, an increase of 6.3% from HK$233.9 million in 2022[25]. - Profit for the year ended 31 December 2023 was HK$51.6 million, down from HK$67.9 million in 2022[25]. - Adjusted net profit (non-HKFRS measure) for the year ended 31 December 2023 was HK$73.8 million, slightly up from HK$73.2 million in 2022[26]. - The group's profit for the year ended December 31, 2023, was HK$51.6 million, down from HK$67.9 million for the year ended December 31, 2022[30]. - The profit and total comprehensive income for the year reached HK$51.6 million, down from HK$67.9 million in the previous year, representing a decrease of approximately 24%[66]. - Adjusted net profit under non-HKFRS measures was HK$73.8 million for 2023, slightly up from HK$73.2 million in 2022, indicating a growth of about 0.8%[70]. - Other income decreased to HK$5.0 million from HK$10.1 million, mainly due to reduced rental income[52]. Assets and Liabilities - Total assets as of 31 December 2023 were HK$1,241.6 million, compared to HK$1,087.3 million in 2022[18]. - Total liabilities as of 31 December 2023 were HK$360.7 million, a decrease from HK$366.8 million in 2022[18]. - Total equity as of 31 December 2023 was HK$880.9 million, up from HK$720.5 million in 2022[18]. - Cash and cash equivalents rose to HK$218.4 million in 2023, compared to HK$24.1 million in 2022, representing a substantial increase of approximately 807%[75]. - Total borrowings amounted to HK$342.6 million as of December 31, 2023, up from HK$303.1 million in 2022, indicating an increase of about 13%[75]. - The Group recorded net assets of HK$880.9 million, an increase from HK$720.5 million in 2022, marking a growth of about 22%[75]. Loan Portfolio - Loan receivables as of 31 December 2023 amounted to HK$964.4 million, representing a 5.5% increase from HK$913.8 million in 2022[26]. - Unsecured Property Owner Loans contributed approximately 68.7% to the group's revenue, with interest income increasing by 16.4% to HK$170.9 million during the reporting period[43]. - Interest income from Personal Loans decreased by 10.9% to HK$66.5 million, contributing about 26.7% of the group's revenue[44]. - Interest income from SME Loans decreased by 5.6% to HK$11.4 million, contributing about 4.6% of the group's revenue[44]. - The average loan balance for Unsecured Property Owner Loans increased by 10.9% from HK$682.4 million in 2022 to HK$757.0 million in 2023[50]. - The average loan size for unsecured property owner loans was HK$784.0 million in 2023, up from HK$730.0 million in 2022, reflecting a growth of approximately 7.4%[86]. - The number of unsecured property owner loan accounts decreased to 2,443 in 2023 from 2,502 in 2022, a decline of about 2.4%[86]. - The overall loan portfolio showed a slight increase from HK$141.1 million in 2022 to HK$150.1 million in 2023, an increase of 6.9%[89]. Expenses and Credit Losses - General and administrative expenses increased by HK$14.7 million or 22.2% from HK$66.1 million to HK$80.8 million, mainly due to higher listing expenses[58]. - Selling expenses decreased by HK$9.6 million or 27.8% from HK$34.4 million to HK$24.8 million, primarily due to reduced advertising and promotional activities[59]. - Net expected credit losses rose from HK$37.7 million in 2022 to HK$55.8 million in 2023, reflecting increased exposure from Unsecured Property Owner Loans[60]. - The provision for impairment increased from HK$105.0 million in 2022 to HK$109.5 million in 2023, reflecting a cautious approach to credit risk management[98]. Strategic Initiatives - The company successfully listed its shares on the Main Board of the Stock Exchange on 5 December 2023[24]. - The group plans to enhance its K Cash GO Platform and integrate technologies into various operations later in 2024[34]. - The group soft launched its Paykool BNPL platform in December 2023, allowing customers to enjoy flexible interest-free installments[41]. - The company plans to introduce Buy Now Pay Later (BNPL) services as part of its expansion strategy, responding to market trends[106]. - The Group is exploring overseas funding sources and is currently liaising with a crowdfunding platform in Japan[33]. Risk Management and Compliance - The company has implemented a dual scoring model for credit assessment, combining AQM Score and MLC Score, which enhances the evaluation of borrowers' creditworthiness[139]. - The company employs a "hybrid" risk management methodology to ensure lending activities do not exceed acceptable risk limits based on internal guidelines[156]. - The company has adopted procedures to recover overdue payments through the sale of the borrower's property, effectively managing credit risk for Unsecured Property Owner Loans[147]. - The company complies with the Money Lenders Ordinance and monitors changes in the regulatory environment to ensure compliance with financial sanctions and anti-money laundering laws[167]. Management and Personnel - The company has appointed Mr. Steven Lee as the CEO since March 20, 2023, who has over 20 years of experience in the licensed money lending business[182]. - Ms. Wong has been appointed as COO since March 20, 2023, and has over 20 years of experience in the licensed money lending business, ensuring compliance with rules and guidelines[185]. - The company has a strategic focus on overall management, operations, and business development, leveraging the expertise of its executive team[182]. - Chairman Lee has over 20 years of experience in the licensed money lending business and provides advice on strategic planning and business development[193]. Technology and Innovation - The company has integrated various technologies into its operations to enhance digitalization and automation in the lending process[28]. - Loan agreements executed online are stored in a blockchain-based system, significantly reducing the risk of duplicate loan applications and ensuring tamper-proof records[140]. - The company utilizes business process automation technology to conduct Land Registry searches and property valuations for Unsecured Property Owner Loans, enhancing credit risk management[141]. - The SME dashboard connects to applicants' POS systems to collect real-time transaction data, aiding in the credit assessment process[145]. Operational Efficiency - The company monitors cash inflow and outflow daily to ensure there is no cash shortfall that may interrupt business operations[160]. - The company maintains sufficient cash buffer on a rolling basis to meet working capital requirements and liquidity needs[160]. - The company prepares a weekly list of overdue loans for follow-up by frontline staff, and legal action may be initiated if repayment is not made[174].

Financial Performance - Interest income for the year ended December 31, 2023, was HKD 248,734,000, an increase of 6.0% from HKD 233,944,000 in 2022[3] - The total comprehensive income for the year was HKD 51,566,000, down 24.0% from HKD 67,865,000 in the previous year[5] - Adjusted net profit (non-HKFRS measure) for 2023 was HKD 73,840,000, slightly up from HKD 73,180,000 in 2022[3] - Basic and diluted earnings per share decreased to HKD 0.1342 from HKD 0.1810, representing a decline of 25.0%[5] - The company's net profit attributable to equity holders decreased to HKD 51,566,000 in 2023 from HKD 67,865,000 in 2022, a decline of 24%[22] - Basic earnings per share fell to HKD 13.42 in 2023 from HKD 18.10 in 2022, reflecting a decrease of 25%[22] - Total expenses for 2023 amounted to HKD 105,623,000, compared to HKD 100,509,000 in 2022, an increase of 5.5%[19] - Other income decreased to HKD 5.0 million from HKD 10.1 million, mainly due to reduced rental income from a related party[36] - Interest expenses rose by HKD 2.2 million or 9.7% to HKD 25.2 million, primarily due to an increase in interest rates on bank borrowings[37] - General and administrative expenses increased by HKD 14.7 million or 22.2% to HKD 80.8 million, mainly due to higher listing expenses incurred during the reporting period[39] - Sales expenses decreased by HKD 9.6 million or 27.8% to HKD 24.8 million, attributed to reduced advertising and promotional activities[40] - Expected credit loss increased from HKD 37.7 million in 2022 to HKD 55.8 million in 2023, primarily due to an increase in receivables from unsecured homeowner loans and SME loans[41] - Total comprehensive income for the reporting period was HKD 51.6 million, down from HKD 67.9 million in the previous year[43] Assets and Liabilities - Total assets as of December 31, 2023, amounted to HKD 1,241,597,000, up from HKD 1,087,307,000 in 2022, indicating a growth of 14.2%[7] - Total liabilities decreased slightly to HKD 360,707,000 from HKD 366,768,000, a reduction of 1.5%[7] - Cash and cash equivalents significantly increased to HKD 218,368,000 from HKD 24,131,000, marking a substantial rise of 805.0%[7] - As of December 31, 2023, total receivables amounted to HKD 1,073,847,000, an increase from HKD 1,018,816,000 in 2022, with a provision for impairment of HKD 109,455,000[26] - The expected loss rate for receivables slightly decreased to 10.2% in 2023 from 10.3% in 2022[26] - As of December 31, 2023, total bank borrowings (excluding tax loans) amounted to HKD 324.3 million, compared to HKD 309.4 million as of December 31, 2022[48] - The amount due within one year for borrowings increased to HKD 316,792,000 in 2023 from HKD 298,287,000 in 2022[29] - The total amount of loans receivable as of December 31, 2023, was HKD 1,073.8 million, an increase from HKD 1,018.8 million in 2022[51] - The total impairment provisions for loans amounted to HKD 109.455 million in 2023, compared to HKD 105.001 million in 2022[57] Dividends and Shareholder Information - The board proposed a final dividend of HKD 0.01998 per share for the year ended December 31, 2023[3] - The proposed final dividend is HKD 1.998 per ordinary share, amounting to approximately HKD 9,990,000, pending shareholder approval at the upcoming annual general meeting[25] - The annual general meeting is scheduled for May 28, 2024[86] Loan Portfolio and Operations - The company primarily engages in providing unsecured loans in Hong Kong[9] - Interest income from unsecured home loans increased to HKD 170,890,000 in 2023 from HKD 146,788,000 in 2022, representing a growth of 16.5%[17] - The total amount of unsecured personal loans receivable rose from HKD 234.5 million in 2022 to HKD 242.3 million in 2023, despite a 10.9% decline in interest income to HKD 66.5 million[32] - The total amount of small and medium enterprise loans receivable decreased from HKD 54.3 million in 2022 to HKD 47.5 million in 2023, with interest income declining by 5.6% to HKD 11.4 million[32] - The company utilizes various technologies to automate and digitize the loan process, enhancing user experience and risk management[30] - The company plans to launch a buy now, pay later service to respond to market trends[62] - The company is exploring partnerships to expand its loan portfolio through mobile wallet platforms and e-commerce[66] - The company has successfully complied with all relevant laws and regulations affecting its lending business during the reporting period[83] - The group provides unsecured loans to small and medium-sized enterprises (SMEs) without requiring collateral, typically backed by personal guarantees from directors or shareholders[95] - The term "unsecured owner loans" refers to loans provided to property owners without any collateral being offered[95] - The company operates under the regulations set by the Hong Kong Stock Exchange[95] Financial Ratios and Performance Metrics - The debt-to-equity ratio improved to 0.16 in 2023 from 0.47 in 2022[59] - Return on assets decreased to 4.4% in 2023 from 5.7% in 2022[59] - Return on equity fell to 6.4% in 2023 from 9.9% in 2022[59] - Interest coverage ratio decreased to 3.7 times in 2023 from 4.6 times in 2022[59] Future Outlook and Strategic Initiatives - The overall economic outlook for Hong Kong remains challenging, with stable unemployment expected[63] - The company aims to maintain a stable average effective interest rate despite regulatory changes[64] - The loan portfolio growth is dependent on sufficient funding to meet borrower demand[61] - K Cash GO platform is currently in the design and analysis phase, with a customer data platform launched at the end of 2023 to enhance customer insights[68] - The Paykool platform for buy now, pay later services was trialed in December 2023, offering personalized credit card services[68] - The company aims to improve public awareness of its buy now, pay later business through sponsorships and advertising campaigns[68] Capital and Funding - The company issued an additional 125,000,000 shares at HKD 1.8 per share during the year, raising a total of HKD 225,000,000 before expenses[21] - The total amount raised from the global offering was approximately HKD 225.0 million, with a net amount of HKD 181.2 million[84] - As of December 31, 2023, the company has utilized HKD 61.1 million of the net proceeds, leaving HKD 120.1 million available for future use[84] - The company plans to strengthen its technological capabilities with an allocation of HKD 30.6 million, of which HKD 2.7 million has been used, leaving HKD 27.9 million for future use by December 2026[84] - The company aims to expand its loan portfolio with an allocation of HKD 133.6 million, of which HKD 50.2 million has been utilized, leaving HKD 83.4 million for future use by March 2024[84] - General working capital and corporate purposes have an allocation of HKD 17.0 million, with HKD 8.2 million utilized, leaving HKD 8.8 million for future use by December 2024[84] Employee and Operational Metrics - Employee benefits expenses were HKD 40.7 million, down from HKD 47.6 million in 2022, with 62 employees as of December 31, 2023[74]