香港信贷(01273) - 2024 - 年度业绩

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