Financial Performance - Total revenue for the year ended February 28, 2025, was HKD 1,759,316,000, an increase of 8.4% from HKD 1,623,321,000 in the previous year[3] - Net interest income reached HKD 1,347,582,000, up 7.0% from HKD 1,258,899,000 year-on-year[3] - Operating income for the year was HKD 1,649,317,000, reflecting a growth of 8.4% compared to HKD 1,520,966,000 in the prior year[3] - The annual profit attributable to the company's owners was HKD 400,478,000, representing an increase of 2.9% from HKD 392,270,000 in the previous year[5] - Earnings per share (EPS) increased to HKD 95.63 from HKD 93.67, marking a growth of 2.1%[3] - Total comprehensive income for the year amounted to HKD 384,176,000, up from HKD 368,165,000, indicating a rise of 4.3%[5] - The company reported a decrease in interest expenses to HKD 129,785,000 from HKD 108,463,000, reflecting a rise in net interest income[3] - Other income increased to HKD 19,792,000 from HKD 15,205,000, showing a growth of 30.5%[3] - The company recognized a gain from the sale of non-performing assets amounting to HKD 14,605,000, compared to HKD 12,067,000 in the previous year[3] Assets and Liabilities - Total assets decreased from HKD 5,883,689 thousand in 2024 to HKD 5,593,986 thousand in 2025, representing a decline of approximately 4.9%[7] - Total liabilities decreased from HKD 2,274,343 thousand in 2024 to HKD 1,677,543 thousand in 2025, indicating a reduction of about 26.2%[7] - Total equity increased from HKD 4,067,993 thousand in 2024 to HKD 4,251,161 thousand in 2025, reflecting an increase of approximately 4.5%[7] - Non-current assets decreased from HKD 1,935,813 thousand in 2024 to HKD 1,812,341 thousand in 2025, a decrease of about 6.4%[6] - Current assets increased from HKD 5,932,516 thousand in 2024 to HKD 5,932,516 thousand in 2025, remaining stable[6] - Current liabilities decreased from HKD 2,274,343 thousand in 2024 to HKD 1,677,543 thousand in 2025, a decrease of approximately 26.2%[7] - Cash and cash equivalents decreased from HKD 257,989 thousand in 2024 to HKD 226,220 thousand in 2025, a decline of about 12.4%[6] - The company's total borrowings increased from HKD 1,015,149 thousand in 2024 to HKD 1,239,685 thousand in 2025, an increase of approximately 22.2%[7] Dividends and Shareholder Information - For the fiscal year ending February 29, 2024, the company declared a mid-term dividend of HKD 100,504,000[8] - The company plans to distribute a final dividend of HKD 0.25 per share for the fiscal year 2025, compared to HKD 0.24 per share in 2024, representing a 4.2% increase[34] - The company maintains a stable dividend policy with a payout ratio of at least 30.0% of the consolidated net profit for the fiscal year, proposing a final dividend of HKD 0.25 per share, resulting in an annual dividend of HKD 0.49 per share with a payout ratio of 51.2%[50] - The company will suspend the registration of shareholders from June 23, 2025, to June 26, 2025, to determine eligibility for attending the annual general meeting[48] - The company will also suspend the registration of shareholders from July 9, 2025, to July 10, 2025, for eligibility to receive the proposed final dividend[49] Future Outlook and Strategic Initiatives - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[3] - The company plans to continue expanding its services in the insurance and personal loan sectors to drive future growth[26] - The group aims to enhance customer experience through a new integrated rewards platform, allowing seamless management of points from various merchants[88] - The outlook for 2025 anticipates moderate global economic growth, supported by policy measures in mainland China to stimulate local demand[86] - The group aims to improve credit assessment and monitoring methods to maintain a sustainable asset quality and accelerate approval speed[87] - New mobile payment products and self-service branch concepts will further enhance customer experience and maintain competitive advantage[88] - The group is committed to sustainable development and plans to introduce loan products that support low-carbon living[89] - The group will further invest in developing virtual card features to enhance non-contact mobile payment services in Hong Kong[90] - The group aims to leverage the potential of the Guangdong-Hong Kong-Macao Greater Bay Area to expand its customer base and enhance corporate governance[91] Customer Loans and Receivables - As of February 28, 2025, total customer loans and receivables amounted to HKD 7,329,378,000, an increase from HKD 6,960,859,000 as of February 29, 2024, representing a growth of approximately 5.3%[38] - The breakdown of customer loans and receivables shows that the first stage accounts for 95.8% of the total, with HKD 7,018,669,000, compared to 96.0% or HKD 6,682,702,000 in the previous year[38] - The impairment provision for receivables as of February 28, 2025, was HKD 264,939,000, up from HKD 247,091,000 on February 29, 2024, indicating an increase of approximately 7.2%[39] - The total amount of loans and receivables, net of impairment provisions, was HKD 7,064,439,000 as of February 28, 2025, compared to HKD 6,713,768,000 in the prior year, reflecting a growth of about 5.2%[37] - The company’s total customer loans and receivables are categorized into three stages, with the first stage being the largest contributor to the overall balance[38] Accounting Standards and Compliance - The group has adopted new accounting standards for classifying liabilities as current or non-current, effective from the current fiscal year[16] - The amendments clarify that the classification of liabilities should be based on rights existing at the end of the reporting period, not management's intentions[18] - The application of the new accounting policies has no significant impact on the consolidated financial statements for the current year[17] - The amendments provide additional guidance on assessing rights to defer settlement of liabilities for at least twelve months from the reporting date[16] - The group has implemented the revised Hong Kong Financial Reporting Standards without significant effects on past financial performance[15] - The new Hong Kong Financial Reporting Standards (HKFRS) No. 18 will replace HKAS No. 1, introducing new presentation and disclosure requirements for financial statements[20] - The implementation of HKFRS No. 18 is expected to impact the presentation of the income statement and future disclosures in financial statements[21] - The company is currently assessing the detailed impact of HKFRS No. 18 on its consolidated financial statements[21] - The new standards will take effect for annual periods beginning on or after January 1, 2027, with early application permitted[21] - The main accounting policies adopted in the consolidated financial statements are consistent with those used in the preparation of the financial statements for the year ended February 29, 2024[23] Operational Highlights - The company completed the relocation of its data center and redeployment of core system platforms to support ongoing digital transformation, with upgraded applications for credit assessment and the launch of virtual card features[53] - The overall sales revenue reached a historical high with a continuous growth of 10.5% compared to the previous fiscal year, while customer loans and accounts receivable increased by 5.3%[54] - The company secured HKD 300 million in sustainable performance-linked loans from a consortium of nine regional and local banks, demonstrating its commitment to integrating sustainability into its operations[55] - The company expanded its branch network, including the opening of a new branch in Sha Tin in June 2024, to enhance customer service and meet growing demand for face-to-face consultations[56] - The upgraded credit application processing platform facilitated the launch of virtual credit card features in the "AEON Hong Kong" mobile app, allowing customers to make purchases immediately after approval[57] - The company enhanced its credit monitoring models and data analysis tools to improve credit risk allocation and proactively identify customers needing credit consultation[58] - The core data center was relocated to a more efficient site, adhering to internationally recognized green building certification standards, enhancing the company's IT infrastructure for future product launches[59] Employee and Corporate Governance - As of February 28, 2025, the total number of employees is 596, with 380 in Hong Kong and 216 in mainland China[92] - The company maintains high standards of corporate governance, balancing the interests of shareholders, customers, employees, and other stakeholders[93] - The group celebrates the 35th anniversary of AEON Credit Financial Services in the Hong Kong market, focusing on innovative and customized products[91] - The annual performance has been reviewed by the audit committee, ensuring compliance with financial reporting standards[96] - The group will publish its annual report containing relevant information as required by listing rules at an appropriate time[98]
AEON CREDIT(00900) - 2025 - 年度业绩