HK FINANCE GP-香港信贷(01273) - 2024 - 年度财报

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