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]