香港信贷(01273) - 2025 - 年度财报

Corporate Information This section provides essential corporate information, covering board composition, key professional advisors, and administrative details - This section provides fundamental company details, including board and committee members, company secretary, registered office, principal place of business, principal bankers, legal advisors, auditors, and share registrars[3][4][5][6][7][8] Management Discussion and Analysis Business Review and Industry Overview The Group's core business is property mortgage loans in Hong Kong. Despite a stagnant real estate market and high interest rates, the Group maintained prudent credit strategies, achieving robust financial performance with profit attributable to owners reaching HKD 46.2 million in FY2025, an 8.2% year-on-year increase - The Group primarily engages in money lending, with a core focus on secured property mortgage loans and diversification into unsecured homeowner loans[9][13] - Despite the Hong Kong government's removal of cooling measures, the local real estate market remains stagnant, with high interest rates suppressing investment and consumption demand, leading to continued weak market sentiment[10][13] 2025 Fiscal Year Key Financial Performance | Indicator | 2025 FY (HKD million) | 2024 FY (HKD million) | YoY Change | | :--- | :--- | :--- | :--- | | Interest Income | 156.3 | 158.9 | -1.6% | | Impairment Allowance for Loans and Interest | 12.5 | 18.0 | -30.6% | | Profit Attributable to Owners | 46.2 | 42.7 | +8.2% | Financial Review Total interest income slightly decreased by 1.6% to HKD 156.3 million, primarily due to lower unsecured loan income, while interest expenses significantly reduced through deleveraging, leading to an 8.2% increase in profit attributable to owners to HKD 46.2 million Interest Income Composition (HKD million) | Business Category | 2025 FY | 2024 FY | YoY Change | | :--- | :--- | :--- | :--- | | Secured Property Mortgage Loans | 105.2 | 104.4 | +0.8% | | Unsecured Homeowner Loans | 51.1 | 54.5 | -6.2% | | Total | 156.3 | 158.9 | -1.6% | - Due to the Group's deleveraging strategy in a high-interest rate environment, borrowings decreased, leading to a reduction in interest expenses from HKD 18.9 million to HKD 15.7 million, and the gearing ratio decreased to 0.14[18][22] Impairment Loss on Loans and Interest Receivables and Recovered Assets (HKD million) | Category | 2025 FY | 2024 FY | YoY Change | | :--- | :--- | :--- | :--- | | Secured Property Mortgage Loans | 6.9 | 13.3 | -48.1% | | Unsecured Homeowner Loans | 5.6 | 4.7 | +19.1% | | Total | 12.5 | 18.0 | -30.6% | - Impairment allowances decreased this year due to proactive credit risk management measures, such as regular review of customer repayment records, reduction in average loan size, and shortening of loan tenures[31][35] Liquidity and Sources of Financial Resources The Group's working capital primarily stems from retained earnings, advances from a fellow subsidiary, and bank borrowings, maintaining robust liquidity with net assets of HKD 852 million and substantial unused bank facilities as of March 31, 2025 Key Financial Resources Status (HKD million) | Indicator | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Net Assets | 852.0 | 816.6 | | Cash and Cash Equivalents | 33.5 | 28.4 | | Interest-bearing Bank and Other Borrowings | 105.0 | 246.3 | | Amounts Due to a Fellow Subsidiary | 50.3 | 60.7 | | Unused Bank Facilities | 209.8 | N/A | - The Group's funding sources primarily include retained earnings, advances from Tin Ching Industrial Limited (a fellow subsidiary), and bank and other borrowings[39][43] Key Financial Ratios Key financial ratios showed positive improvement this fiscal year, with the gearing ratio significantly decreasing to 0.14, while return on equity and interest coverage ratios improved, and net interest margin remained stable Key Financial Ratios Comparison | Ratio | 2025 FY | 2024 FY | | :--- | :--- | :--- | | Gearing ratio | 0.14 | 0.34 | | Net interest margin ratio | 16.1% | 16.0% | | Return on equity ratio | 5.4% | 5.2% | | Interest coverage ratio | 4.9 times | 4.0 times | Business Model and Loan Portfolios The Group offers secured property mortgage loans and unsecured homeowner loans, with secured loans constituting 75.3% of the total portfolio, primarily backed by Hong Kong residential and commercial properties, and a diversified customer base mitigating concentration risk Loan Portfolio Overview (As of March 31, 2025) | Loan Type | % of Total Loans | Interest Rate Range | | :--- | :--- | :--- | | Secured Property Mortgage Loans | 75.3% | 11% to 34% | | Unsecured Homeowner Loans | 24.7% | 12% to 44% | - As of March 31, 2025, the Group had 782 active accounts, an increase from 736 in the previous year, with individual customers accounting for the vast majority[60][64] - Customer concentration is low, with the top five customers contributing approximately 8.0% of total revenue, and the largest single customer accounting for approximately 2.5% of total revenue, consistent with the previous year[61][64] Outlook The Group anticipates continued challenges in the Hong Kong lending industry amidst global economic uncertainties but aims to consolidate its market position through prudent risk management, diversified loan portfolios, and leveraging Greater Bay Area integration opportunities - Macroeconomic and geopolitical risks, such as Sino-US trade tensions and a high-interest rate environment, significantly impact Hong Kong's money lending business, particularly property mortgage loans[82][85] - The Group's future strategy includes adhering to strict risk management, diversifying its loan portfolio, strengthening credit policies, focusing on high-net-worth clients, and leveraging the "Hong Kong Finance" brand reputation to seize growth opportunities[84][86] - External opportunities, such as Greater Bay Area integration and cross-border financial cooperation, along with potential government support policies, are expected to create favorable conditions for industry recovery and the Group's development[84]86 Corporate Governance Report Corporate Governance Practices The Group is committed to high corporate governance standards, adhering to the Corporate Governance Code, fostering an integrity-driven culture, and implementing whistleblowing and anti-corruption mechanisms to ensure lawful and responsible operations - The Group has adopted and complied with the Corporate Governance Code for the year ended March 31, 2025, and regularly reviews relevant policies[88][93] - The Group has established whistleblowing and anti-corruption policies, overseen by the Board, relevant committees, and senior management, to ensure ethical conduct among employees[99][106][107] Board of Directors The Board comprises seven directors with diverse expertise, ensuring separation of Chairman and CEO roles, confirming independence of INEDs, including those serving over nine years, and all directors participate in continuous professional development - The Board consists of 7 directors: 4 Executive Directors and 3 Independent Non-Executive Directors, meeting the Listing Rules' requirement that INEDs constitute at least one-third of the Board[113][118] - The roles of Board Chairman (Mr. Chan Kwong Yin) and Chief Executive Officer (Mr. Tse Pui To) are separate and held by different individuals[114][115] - The Board has assessed the independence of Mr. Chu Yat Pong and Mr. Cheung Kwok Cheong, Independent Non-Executive Directors who have served for over nine years, and confirmed their continued independence[121][123] Board Meeting Attendance | Director Name | Board Meeting Attendance/Meetings Held | | :--- | :--- | | Mr. Chan Kwong Nam | 3/4 | | Mr. Chan Kwong Yin | 4/4 | | Mr. Tse Pui To | 4/4 | | Ms. Chan Siu Ching | 3/4 | | Mr. Chu Yat Pong | 4/4 | | Mr. Cheung Kwok Cheong | 4/4 | | Mr. Wong Kai Man | 4/4 | Board Committees The Board has Audit, Remuneration, and Nomination Committees, overseeing financial reporting, internal controls, executive compensation, and board structure, with the Nomination Committee adopting a diversity policy and appointing the first female executive director this year - The Audit Committee, composed of three Independent Non-Executive Directors, is responsible for reviewing financial statements, risk management, and internal control systems, and has reviewed this annual report[153][155] - The Remuneration Committee, comprising one Executive Director and two Independent Non-Executive Directors, is responsible for determining the remuneration packages of Executive Directors and senior management[166][169] - The Nomination Committee, consisting of the Board Chairman and two Independent Non-Executive Directors, is responsible for reviewing board structure, diversity, and director nominations; during the year, the committee reviewed its board diversity policy and appointed Ms. Chan Siu Ching as the company's first female Executive Director[178][189][192] Risk Management and Internal Control The Board oversees and annually reviews the Group's risk management and internal control systems, which are deemed effective and sufficient following an independent review by APAC, with internal audit functions currently outsourced for cost-effectiveness - The Board confirms its responsibility to continuously oversee the Group's risk management and internal control systems and to review their effectiveness at least annually[199][203] - The Group has engaged independent internal control consultant APAC to conduct an annual review of its risk management and internal control systems, which the Board considers effective and adequate[213][216] - The Group currently does not have an internal audit function, as the Board believes outsourcing this function to independent professionals is more cost-effective, and this need will be reviewed annually[214][217] Environmental, Social and Governance Report ESG Governance The Board holds primary oversight for sustainable development, supported by an ESG working group comprising executive directors and senior management, which identifies key ESG issues through annual materiality assessments and stakeholder engagement - The Board is responsible for overseeing ESG-related risks and ensuring management has sufficient resources to execute ESG strategies[275][279] - The Group has established an ESG working group, comprising Executive Directors and senior management, responsible for reviewing and overseeing ESG processes and risk management[276][277][280] A. Environmental Aspects Despite minimal direct environmental impact, the Group actively reduces its operational footprint through energy conservation, waste reduction, and climate change risk identification, showing year-on-year improvements in key environmental metrics Key Environmental Performance Indicators (FY2025 vs FY2024) | Indicator | Unit | 2025 FY | 2024 FY | Change | | :--- | :--- | :--- | :--- | :--- | | Total Greenhouse Gas Emissions | tonnes of CO2 equivalent | 43.57 | 51.29 | -15.0% | | Total Energy Consumption | MWh | 108.20 | 124.17 | -12.9% | | Disposal of Non-hazardous Waste | tonnes | 2.20 | 3.20 | -31.3% | - The Group has formulated and implemented a "Corporate Environmental Policy" to promote efficient resource utilization and environmentally friendly operations through measures such as energy saving, waste reduction, and green procurement[285][287] - Regarding climate change, the Group has identified relevant physical risks (e.g., extreme weather) and transition risks (e.g., policy, legal changes) and has developed management measures, including scenario analysis, to address them[321][344][345] B. Social Aspects The Group prioritizes employees as key assets, ensuring fair employment, competitive compensation, and professional development, while upholding service quality, customer data protection, and anti-corruption, and actively contributing to the community through charitable donations - The Group is committed to providing an equal, diverse, and inclusive work environment, strictly adhering to labor laws such as the Employment Ordinance, and opposing any form of discrimination[357][358][360] Employee Turnover Rate and Training Status | Indicator | 2025 FY | 2024 FY | | :--- | :--- | :--- | | Overall Employee Turnover Rate | 27% | 32% | | Percentage of Trained Employees | 74% | 70% | - The Group strictly complies with product liability regulations, has robust customer complaint handling mechanisms and customer data protection policies, and reported no related complaints or violations during the period[388][394][395] - The Group actively fulfills its social responsibilities, donating a total of HKD 136,000 to various charitable organizations, including Po Leung Kuk, in FY2025[411][414] Report of the Directors Dividends The Board recommends a final dividend of 1.3 HK cents per share for the year ended March 31, 2025, bringing the total annual dividend to 2.6 HK cents per share, including the interim dividend already paid 2025 Fiscal Year Dividend Details | Dividend Type | Amount Per Share (HK cents) | Payment Date | | :--- | :--- | :--- | | Interim Dividend | 1.3 | January 14, 2025 | | Proposed Final Dividend | 1.3 | October 10, 2025 | Directors' and Chief Executive's Interests in Shares This report discloses directors' and chief executive's interests in the company's shares, highlighting that Executive Directors Mr. Chan Kwong Nam and Mr. Chan Kwong Yin hold significant stakes through Tin Ching Holdings, a jointly controlled entity, making them controlling shareholders Major Directors' Shareholdings (As of March 31, 2025) | Director Name | Capacity | Number of Shares Held (thousand shares) | % of Issued Share Capital | | :--- | :--- | :--- | :--- | | Chan Kwong Nam | Interest in Controlled Corporation | 260,000 | 62.65% | | Chan Kwong Yin | Beneficial Owner and Interest in Controlled Corporation | 305,796 | 73.69% | - Mr. Chan Kwong Nam and Mr. Chan Kwong Yin each hold 50% equity in Tin Ching Holdings, and are therefore deemed to have a joint interest in the 260 million company shares held by Tin Ching Holdings[496][498] Connected Transactions The Group engaged in a continuing connected transaction with Tin Ching Industrial Limited, a fellow subsidiary controlled by the controlling shareholders, involving a loan facility of up to HKD 200 million, which is fully exempt from disclosure and shareholder approval requirements under Listing Rules due to favorable terms - The Group entered into a loan agreement with Tin Ching Industrial Limited, a connected party, which provides the Group with a loan facility of up to HKD 200 million for its money lending business[513][517] - This transaction constitutes a continuing connected transaction but is fully exempt from relevant disclosure and approval requirements under Listing Rule 14A.90 due to its favorable terms for the company (unsecured, interest rate at prime rate plus 1%) and its provision of financial assistance to the Group[514][517] Independent Auditor's Report Opinion PricewaterhouseCoopers issued an unmodified opinion, affirming that the Group's consolidated financial statements fairly present its financial position as of March 31, 2025, and its financial performance and cash flows for the year, in compliance with Hong Kong Companies Ordinance disclosure requirements - The auditor believes that the consolidated financial statements fairly present the Group's financial position, performance, and cash flows in accordance with Hong Kong Financial Reporting Standards[526][529] Key Audit Matters The sole Key Audit Matter identified is 'Expected Credit Loss (ECL) allowance for loans and interest receivables,' deemed critical due to significant management judgment and complex estimations involved in its measurement, particularly regarding credit risk increase, model parameters, and forward-looking information - The key audit matter is "Expected Credit Loss allowance for loans and interest receivables," as its measurement involves significant management judgment and estimation, and it has a material impact on the financial statements[534][535][543][544] - ECL measurement involves complex estimations such as loan segmentation, model selection, determination of probability of default (PD), loss given default (LGD), and judgment on whether credit risk has significantly increased[537][540] - The auditor, through procedures such as evaluating key controls, model methodology, key assumptions, and sampling tests of aging and collateral values, concluded that management's judgments and estimates for ECL allowance are supported by evidence[538][541][545][548] Consolidated Financial Statements Consolidated Statement of Comprehensive Income For the year ended March 31, 2025, the Group reported net interest income of HKD 140.6 million and operating profit of HKD 57.04 million, with profit attributable to owners increasing by 8.2% to HKD 46.173 million, resulting in basic earnings per share of 11.1 HK cents Consolidated Statement of Comprehensive Income Summary (HKD thousand) | Item | 2025 FY | 2024 FY | | :--- | :--- | :--- | | Interest Income | 156,280 | 158,933 | | Interest Expense | (15,710) | (18,914) | | Net Interest Income | 140,570 | 140,019 | | Operating Profit | 57,040 | 52,529 | | Profit and Total Comprehensive Income for the Year | 46,173 | 42,693 | | Basic Earnings Per Share (HK cents) | 11.1 | 10.3 | Consolidated Statement of Financial Position As of March 31, 2025, total assets were HKD 1.021 billion, total liabilities HKD 169 million, and total equity HKD 852 million, with significant decreases in both total assets and liabilities compared to the prior year, reflecting the Group's deleveraging strategy Consolidated Statement of Financial Position Summary (HKD thousand) | Item | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Loans and Interest Receivables | 781,486 | 894,018 | | Property, Plant and Equipment | 119,837 | 121,234 | | Total Assets | 1,020,942 | 1,134,998 | | Equity and Liabilities | | | | Total Equity | 852,001 | 816,618 | | Bank and Other Borrowings | 105,004 | 246,342 | | Total Liabilities | 168,941 | 318,380 | Consolidated Statement of Cash Flows Net cash inflow from operating activities significantly increased to HKD 170 million this fiscal year, while financing activities resulted in a net outflow of HKD 163 million, primarily for bank loan repayments, leading to a net increase in cash and cash equivalents of HKD 5.11 million Consolidated Statement of Cash Flows Summary (HKD thousand) | Item | 2025 FY | 2024 FY | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 169,980 | 28,960 | | Net Cash Outflow from Investing Activities | (2,345) | (139) | | Net Cash Outflow from Financing Activities | (162,525) | (30,320) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 5,110 | (1,499) | | Cash and Cash Equivalents at Year End | 33,486 | 28,376 | Notes to the Financial Statements Note 3 Financial Risk Management This note details the Group's primary financial risks, including market, credit, and liquidity risks, with a focus on credit risk management through the HKFRS 9 three-stage ECL model, explaining significant credit risk increase criteria, default definitions, ECL measurement, and forward-looking information application - The Group's credit risk primarily arises from loans and interest receivables. The Group manages this risk using a three-stage ECL model, where loans overdue by more than 30 days are considered to have a significant increase in credit risk (entering Stage 2), and those overdue by more than 90 days or borrower bankruptcy are considered in default (entering Stage 3)[618][622][625] ECL Allowance Sensitivity Analysis to Collateral Value Changes | Assumed Scenario | Impact on ECL Allowance (HKD million) | | :--- | :--- | | Forecast collateral value decrease by 7% | Increase by 9.98 | | Forecast collateral value increase by 7% | Decrease by 6.77 | - The Group maintains prudent liquidity risk management, ensuring sufficient cash to meet operational needs through cash flow forecasting. As of March 31, 2025, financial liabilities due within one year (undiscounted) amounted to HKD 164 million[660][668] Note 22 Loans and Interest Receivables This note provides a detailed breakdown and aging analysis of loans and interest receivables, totaling HKD 805 million before impairment allowance, with a net amount of HKD 781 million as of March 31, 2025, showing improved asset quality with a decrease in loans overdue by over 90 days Loans and Interest Receivables Composition (HKD thousand) | Item | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Total Secured Property Mortgage Loans | 606,052 | 732,288 | | Total Unsecured Homeowner Loans | 198,450 | 205,715 | | Total Loans and Interest Receivables | 804,502 | 938,003 | | Less: Impairment Allowance | (23,016) | (43,985) | | Net Loans and Interest Receivables | 781,486 | 894,018 | Loans and Interest Receivables Aging Analysis (HKD thousand) | Aging | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Not Overdue | 560,007 | 548,993 | | Overdue 1-90 Days | 109,913 | 199,983 | | Overdue Over 90 Days | 134,582 | 189,027 | | Total | 804,502 | 938,003 | Five-year Financial Summary Five-year Financial Summary This section summarizes the Group's key financial data over the past five fiscal years, indicating a slight revenue decrease in FY2025 but an increase in profit attributable to owners, alongside notable reductions in total assets and liabilities, reflecting efforts in capital structure optimization and shareholder value enhancement Five-year Financial Data Summary (HKD thousand) | Item | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 156,280 | 158,933 | 160,974 | 153,488 | 155,503 | | Profit Attributable to Owners | 46,173 | 42,693 | 58,885 | 70,550 | 73,218 | | Total Assets | 1,020,942 | 1,134,998 | 1,126,206 | 1,177,075 | 1,101,991 | | Total Liabilities | 168,941 | 318,380 | 341,491 | 440,455 | 425,131 | | Total Equity | 852,001 | 816,618 | 784,715 | 736,620 | 676,860 |