Financial Performance - Revenue for the six months ended August 31, 2020, was HKD 574,460,000, a decrease of 12.3% compared to HKD 654,867,000 for the same period in 2019[5]. - Net interest income decreased to HKD 474,553,000 from HKD 529,493,000, reflecting a decline of 10.4%[5]. - Profit for the period was HKD 152,401,000, down 20% from HKD 190,394,000 in the previous year[5]. - Basic earnings per share decreased to HKD 36.39 from HKD 45.47, representing a decline of 19.9%[5]. - Total comprehensive income for the period was HKD 171,634,000, compared to HKD 187,215,000 in the prior year, a decrease of 8.3%[6]. - Total revenue for the six months ended August 31, 2020, was HKD 574,460,000, a decrease of 12.3% compared to HKD 654,867,000 for the same period in 2019[16]. - Interest income decreased to HKD 498,644,000, down 12.1% from HKD 567,281,000 year-over-year[16]. - The pre-tax profit for the period from March 1, 2020, to August 31, 2020, was HKD 181,640,000, compared to HKD 230,371,000 in 2019, reflecting a decline of approximately 21.1%[21]. - The company reported a total comprehensive income of HKD 171,634,000 for the period, compared to HKD 190,394,000 in the prior period, reflecting a decrease of 9.8%[9]. - The net profit after tax decreased by 20.0%, from HKD 190.4 million in the previous year to HKD 152.4 million in the current period[79]. Assets and Liabilities - Non-current assets decreased to HKD 959,925,000 from HKD 1,051,218,000, a decline of 8.7%[7]. - Current assets decreased to HKD 4,284,023,000 from HKD 4,678,500,000, reflecting a decrease of 8.4%[8]. - The company’s total assets increased to HKD 3,393,048,000 as of August 31, 2020, up from HKD 3,285,734,000 at the end of the previous period[9]. - The total amount of trade payables as of August 31, 2020, was 64,263 thousand HKD, slightly up from 63,005 thousand HKD as of February 29, 2020[51]. - The total amount of prepayments, deposits, and other receivables as of August 31, 2020, was 85,262 thousand HKD, a decrease from 96,683 thousand HKD as of February 29, 2020[45]. - The total overdue customer loans and receivables exceeded one month amounted to 202,112 thousand HKD, representing 4.8% of total customer loans and receivables[44]. - The total amount of restricted deposits was zero as of August 31, 2020, due to the full repayment of related asset-backed loans during the period[46]. - The bank loans as of August 31, 2020, amounted to 1,410,435 thousand HKD, with 365,000 thousand HKD due within one year[54]. Cash Flow and Dividends - Net cash generated from operating activities was HKD 734,855,000, an increase of 85.0% from HKD 396,893,000 in the previous year[10]. - The company paid dividends of HKD 92,128,000 during the period, consistent with the previous year[10]. - The company declared an interim dividend of HKD 0.22 per share, totaling HKD 92,128,000, consistent with the previous year's interim dividend[32]. - The net cash used in financing activities was HKD 688,207,000, compared to a net cash generated of HKD 38,321,000 in the prior year[10]. Operational Efficiency and Strategy - The company plans to focus on enhancing operational efficiency and exploring new market opportunities in the upcoming periods[5]. - The company plans to continue focusing on enhancing its operational efficiency and exploring new market opportunities[12]. - The company focused on promoting AEON credit cards and enhancing online services to adapt to the pandemic's impact on consumer behavior[77]. - The company implemented a bad debt warning mechanism to reduce overdue loans and receivables[77]. - Significant resources will be allocated to digital projects to improve operational efficiency, including new credit card and loan systems, and optimization of mobile applications and websites[90]. - The company anticipates a challenging operating environment due to ongoing pandemic effects and rising unemployment in Hong Kong, impacting operations in the second half of the year[90]. Risk Management - The company has established policies to manage market, credit, liquidity, equity, and operational risks, with regular reviews by management and internal auditors[96]. - The group has implemented cross-currency swaps to hedge foreign currency debt, effectively transferring foreign currency liabilities to functional currency[99]. - The group has adopted interest rate swaps to convert part of its floating-rate debt to fixed-rate, aligning swap terms with hedged loans[99]. - The group has a liquidity risk management framework in place to manage short, medium, and long-term financing needs[101]. - The group has established policies and systems to monitor and control credit risk, ensuring adequate provisions for recoverable loans and receivables[100]. Shareholder Information - The total issued and paid-up share capital as of August 31, 2020, was HKD 269,477,000, with 418,766,000 shares outstanding[63]. - The group’s major shareholders include AEON Japan with a 67.13% stake and AFS with a 52.86% stake in the company[107]. - AFS holds 100% equity interest in AFS (Hong Kong), representing 221,364,000 shares[108]. - The company has not purchased, sold, or redeemed any of its listed shares during the reporting period[112]. Future Outlook - AEON anticipates a credit loss of approximately HKD 50 million for the upcoming quarter, reflecting a cautious outlook[117]. - The company is investing in new product development, with a budget allocation of HKD 100 million for innovative financial services[118]. - AEON plans to expand its market presence in mainland China, targeting a 20% increase in market share by the end of the fiscal year[118]. - The company’s future guidance indicates expected revenue growth of 12% for the next quarter, driven by increased consumer demand[117].
AEON CREDIT(00900) - 2021 - 中期财报