K Cash集团(02483) - 2025 - 中期业绩

Company Overview and Financial Summary Financial Summary K Cash Group reported significant growth in interest income and profit for H1 2025, declaring an interim dividend of 4.4 HK cents per share Financial Highlights | Metric | Six Months Ended June 30, 2025 (HKD '000) | Six Months Ended June 30, 2024 (HKD '000) | | :--- | :--- | :--- | | Interest Income | 164,552 | 136,029 | | Profit for the Period | 44,230 | 34,307 | | Earnings Per Share (Basic & Diluted) | 8.85 HK cents | 6.86 HK cents | - The Board resolved to declare an interim dividend of 4.4 HK cents per share for the six months ended June 30, 2025[3] Interim Condensed Consolidated Financial Statements Consolidated Statement of Comprehensive Income For H1 2025, the company achieved year-on-year growth in net interest income, operating profit, and profit, indicating enhanced profitability Consolidated Statement of Comprehensive Income | Metric | Six Months Ended June 30, 2025 (HKD '000) | Six Months Ended June 30, 2024 (HKD '000) | | :--- | :--- | :--- | | Interest Income | 164,552 | 136,029 | | Interest Expense | (18,509) | (14,585) | | Net Interest Income | 146,043 | 121,444 | | Other Income | 5,292 | 5,042 | | Net Other Losses | (2,355) | (923) | | Selling Expenses | (14,951) | (15,577) | | General and Administrative Expenses | (37,470) | (31,999) | | Net Expected Credit Losses | (43,916) | (36,407) | | Operating Profit | 52,643 | 41,580 | | Profit Before Income Tax | 51,869 | 41,285 | | Income Tax Expense | (7,639) | (6,978) | | Profit for the Period | 44,230 | 34,307 | | Total Comprehensive Income for the Period | 44,263 | 34,307 | | Basic and Diluted Earnings Per Share | 8.85 HK cents | 6.86 HK cents | Consolidated Statement of Financial Position As of June 30, 2025, total assets and equity grew, with loans to customers as the main asset, while cash equivalents decreased Consolidated Statement of Financial Position | Metric | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Assets | | | | Cash and Cash Equivalents | 41,614 | 116,428 | | Loans and Advances to Customers | 1,318,080 | 1,232,380 | | Total Assets | 1,461,168 | 1,449,835 | | Equity and Liabilities | | | | Total Equity | 934,363 | 917,600 | | Bank and Other Borrowings | 497,269 | 491,902 | | Total Liabilities | 526,805 | 532,235 | | Total Equity and Liabilities | 1,461,168 | 1,449,835 | - Cash and cash equivalents decreased, primarily due to increased advances to customers and interest payments on bank and other borrowings[43] Notes to the Interim Condensed Consolidated Financial Information General Information K Cash Group, incorporated in the Cayman Islands, primarily provides unsecured loans in Hong Kong and was listed on HKEX in December 2023 - The Company was incorporated as an exempted company in the Cayman Islands on October 25, 2022[6] - The Group primarily engages in providing unsecured loans in Hong Kong[7] - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on December 5, 2023[8] Basis of Preparation and Accounting Policies Interim financial information is prepared under HKEX Listing Rules and HKAS 34, with consistent accounting policies and no significant impact from new standards Basis of Preparation This interim financial information is prepared under HKEX Listing Rules Appendix D2 and HKAS 34 'Interim Financial Reporting' - The financial information is prepared in accordance with Appendix D2 of the HKEX Listing Rules and Hong Kong Accounting Standard 34 'Interim Financial Reporting'[9] Accounting Policies Accounting policies for interim financial information are consistent with the Group's annual consolidated financial statements for 2024 - The accounting policies adopted are consistent with those in the annual consolidated financial statements for the year ended December 31, 2024[10] New and Revised Standards The Group adopted HKAS 21 and HKFRS 1 (Amendments) for 2025, with no significant impact expected on financial information - Adopted HKAS 21 and HKFRS 1 (Amendments) 'Lack of Exchangeability'[11] - The Directors' preliminary assessment indicates that the newly issued and revised standards and interpretations will not have any significant impact on the Group's operating results and financial position[12] Accounting Estimates and Judgments Key estimates and judgments for interim financial information are consistent with those applied in the 2024 annual consolidated financial statements - The key estimates and judgments made by management in applying accounting policies for the interim financial information are the same as those applied in the consolidated financial statements for the year ended December 31, 2024[13] Segment Information and Revenue The Group's sole segment is unsecured lending in Hong Kong, with interest income mainly from homeowner loans; other income includes rent and credit cards, while net other losses are due to exchange fluctuations Segment Information The Group's executive directors review internal reports; unsecured lending in Hong Kong was the sole reportable segment for H1 2025 - The Group has only one operating segment, which is the provision of unsecured loans in Hong Kong[15] Revenue Composition For H1 2025, total interest income was HKD 164,552 thousand, primarily contributed by unsecured homeowner loans at HKD 121,400 thousand Interest Income by Source | Source of Interest Income | Six Months Ended June 30, 2025 (HKD '000) | Six Months Ended June 30, 2024 (HKD '000) | | :--- | :--- | :--- | | Unsecured Homeowner Loans | 121,400 | 96,789 | | Unsecured Personal Loans | 36,116 | 33,025 | | Credit Card Advances | 2,674 | 446 | | SME Loans | 4,362 | 5,769 | | Total | 164,552 | 136,029 | Other Income and Net Other Losses For H1 2025, other income was HKD 5,292 thousand, mainly from related party rental and credit card income; net other losses were (HKD 2,355) thousand, impacted by exchange losses Other Income | Other Income | Six Months Ended June 30, 2025 (HKD '000) | Six Months Ended June 30, 2024 (HKD '000) | | :--- | :--- | :--- | | Rental income from fellow subsidiaries | 300 | 395 | | Rental income from a related party | 2,191 | 2,566 | | Bank interest income | 754 | 1,916 | | Credit card income | 2,019 | 164 | | Others | 28 | 1 | | Total | 5,292 | 5,042 | Net Other Losses | Net Other Losses | Six Months Ended June 30, 2025 (HKD '000) | Six Months Ended June 30, 2024 (HKD '000) | | :--- | :--- | :--- | | Net exchange losses | (7,483) | – | | Impairment allowance for recovered assets | (528) | – | | Change in surrender value of life insurance plan investments | 149 | (1,218) | | Fair value gain on derivative financial instruments | 5,884 | – | | Gain on termination of leases | – | 295 | | Loss on disposal of property, plant and equipment | (377) | – | | Total | (2,355) | (923) | Loans and Advances to Customers As of June 30, 2025, total loans and advances to customers amounted to HKD 1,318,080 thousand, primarily unsecured homeowner loans; net expected credit losses increased, and the company provided detailed aging analyses by overdue date and installment due date Loan Portfolio Overview As of June 30, 2025, total loans and advances to customers were HKD 1,428,893 thousand (net HKD 1,318,080 thousand), with unsecured homeowner loans being the largest portion Loans and Advances to Customers | Loan Type | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Unsecured Homeowner Loans | 1,135,559 | 1,037,042 | | Unsecured Personal Loans | 249,377 | 253,103 | | Credit Card Advances | 26,967 | 12,002 | | SME Loans | 16,990 | 47,168 | | Total | 1,428,893 | 1,349,315 | | Less: Impairment Allowance | (110,813) | (116,935) | | Net Amount | 1,318,080 | 1,232,380 | - Loans and advances to customers are unsecured, interest-bearing, and repayable over fixed terms agreed with customers[18] Net Expected Credit Losses For H1 2025, net expected credit losses were HKD 43,916 thousand, an increase from the prior year, primarily due to the expanded loan portfolio Net Expected Credit Losses | Metric | Six Months Ended June 30, 2025 (HKD '000) | Six Months Ended June 30, 2024 (HKD '000) | | :--- | :--- | :--- | | Net Expected Credit Losses | 43,916 | 36,407 | - Expected credit losses are measured based on whether credit risk has significantly increased since initial recognition (Stage 1 or Stage 2)[19] Aging Analysis of Loans and Advances (by Overdue Date) As of June 30, 2025, current portions of homeowner and personal loans remain dominant, but overdue over 90 days also warrants attention; current credit card advances significantly increased Loans and Advances Aging Analysis (by Overdue Date) | Loan Type | Aging | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | :--- | | Unsecured Homeowner Loans | Current | 668,710 | 597,163 | | | Overdue over 90 days | 346,502 | 312,024 | | Unsecured Personal Loans | Current | 198,665 | 210,485 | | | Overdue over 90 days | 30,781 | 23,773 | | Credit Card Advances | Current | 24,076 | 5,501 | | | Overdue over 90 days | 1,397 | 511 | | SME Loans | Current | 3,647 | 15,476 | | | Overdue over 90 days | 5,110 | 24,757 | - As of June 30, 2025, the Group's impairment allowance for loans receivable was HKD 110,813 thousand, a decrease from HKD 116,935 thousand as of December 31, 2024[20] Aging Analysis of Loans and Advances (by Installment Due Date) As of June 30, 2025, most loans remain current, with unsecured homeowner loans having a current portion of HKD 942,025 thousand; the overdue over 90 days portion of SME loans significantly decreased Loans and Advances Aging Analysis (by Installment Due Date) | Loan Type | Aging | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | :--- | | Unsecured Homeowner Loans | Current | 942,025 | 846,387 | | | Overdue over 90 days | 171,328 | 167,963 | | Personal Loans | Current | 231,509 | 237,146 | | | Overdue over 90 days | 11,484 | 10,911 | | Credit Card Advances | Current | 26,188 | 11,853 | | | Overdue over 90 days | 339 | 65 | | SME Loans | Current | 12,132 | 23,025 | | | Overdue over 90 days | 3,200 | 21,590 | Bank and Other Borrowings As of June 30, 2025, total bank and other borrowings amounted to HKD 497,269 thousand, with interest rates ranging from 5.10% to 9.53% per annum; most borrowings are repayable within 1 to 2 years Bank and Other Borrowings | Borrowing Type | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Bank Loans | 365,593 | 351,926 | | Other Loans | 131,676 | 139,976 | | Total | 497,269 | 491,902 | Repayment Period | Repayment Period | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Within 1 year | 112,326 | 141,805 | | 1 to 2 years | 384,943 | 350,097 | | Total | 497,269 | 491,902 | - For the six months ended June 30, 2025, interest rates for bank and other borrowings ranged from 5.10% to 9.53% per annum[23] Dividends The Board has declared an interim dividend of 4.4 HK cents per ordinary share for the six months ended June 30, 2025, totaling HKD 22,000 thousand; previously, the company paid a final and special dividend of HKD 27,500 thousand for 2024 Dividends | Dividend Type | Six Months Ended June 30, 2025 (HKD '000) | Six Months Ended June 30, 2024 (HKD '000) | | :--- | :--- | :--- | | Dividends (paid) | 27,500 | 9,990 | | Dividends declared and payable after interim period | 22,000 | 17,000 | - The Board resolved to declare an interim dividend of 4.4 HK cents per ordinary share, totaling HKD 22,000 thousand[25] Earnings Per Share For H1 2025, basic and diluted earnings per share were 8.85 HK cents, up from 6.86 HK cents in the prior year, with no potential dilutive ordinary shares Earnings Per Share | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company (HKD '000) | 44,230 | 34,307 | | Weighted average number of shares in issue ('000 shares) | 500,000 | 500,000 | | Basic Earnings Per Share (HK cents) | 8.85 | 6.86 | - Diluted earnings per share for the six months ended June 30, 2025, were the same as basic earnings per share, as there were no potential dilutive ordinary shares outstanding during the period[27] Income Tax Expense For the six months ended June 30, 2025, Hong Kong profits tax provision was made at a rate of 16.5% - Hong Kong profits tax provision has been made at a rate of 16.5% on the estimated assessable profit[28] Management Discussion and Analysis Business Review The Group provides unsecured loans in Hong Kong, leveraging technology; homeowner loans are key, credit card advances grew, SME loans ceased due to risk, and fintech capabilities are enhanced for efficiency Loan Business Overview The Group primarily operates unsecured lending in Hong Kong under 'K Cash Express' and 'K Cash' brands, integrating technology for digitalization and automation - The Group primarily engages in lending, specializing in unsecured loans, and integrates technology for digitalization and automation[29] Unsecured Homeowner Loans Unsecured homeowner loans remain the primary revenue source (73.8%), with interest income up 25.4% to HKD 121.4 million and receivables increasing to HKD 1,135.6 million - Unsecured homeowner loans remain the primary revenue source, accounting for approximately 73.8% of revenue[30] - Interest income from unsecured homeowner loans increased by 25.4% to HKD 121.4 million[30] - Loans receivable increased from HKD 1,037.0 million to HKD 1,135.6 million[30] Personal Loans and Credit Card Advances Personal loan interest income rose 9.4% to HKD 36.1 million; credit card advances interest income surged fivefold to HKD 2.7 million, with receivables up 125% due to PayKool card promotion - Interest income from personal loans increased by approximately 9.4% to HKD 36.1 million[31] - Interest income from credit card advances increased by approximately 5 times to HKD 2.7 million[31] - Credit card advances receivables increased by approximately 125%, from HKD 12.0 million to HKD 27.0 million, due to intensified promotion of PayKool credit cards[31] SME Loan Strategy Adjustment SME loan interest income decreased 24.4% to HKD 4.4 million, and receivables declined; the company ceased SME lending to focus on homeowner loans and credit cards - Interest income from SME loans decreased by 24.4% to HKD 4.4 million[32] - Loans receivable decreased from HKD 47.2 million to HKD 17.0 million[32] - The company has made a strategic decision to discontinue providing loans to SMEs and focus resources on unsecured homeowner loans and credit card businesses[33] Fintech Development The Group enhanced KCash GO repayment module, integrated with bank partners, and upgraded data analytics and PayKool platform use cases to boost cross-selling and up-selling efficiency - Enhanced the KCash GO repayment module, integrating it with additional settlement bank partner systems[33] - Improved the data analytics platform and activity engine, and introduced customer engagement use cases on the PayKool platform to enhance cross-selling and up-selling efficiency[33] Financial Review In H1 2025, total interest income grew 21.0%, driven by homeowner loans; other income increased, while interest and G&A expenses rose; net expected credit losses increased, leading to a profit of HKD 44.2 million Interest Income In H1 2025, total interest income was HKD 164.5 million (+21.0%), driven by homeowner loans (+25.4% to HKD 121.4 million); personal loan income rose, while SME loan income fell - Total interest income was HKD 164.5 million, an increase of 21.0% compared to the same period last year[34] - Interest income from unsecured homeowner loans increased by 25.4% to HKD 121.4 million, primarily due to a 30.5% increase in average loan balances[34] - Personal loan interest income increased by 9.4% to HKD 36.1 million, while SME loan interest income decreased by 24.4% to HKD 4.4 million[35] Other Income In H1 2025, other income was HKD 5.3 million, primarily due to increased credit card issuance and transaction volumes - Other income was HKD 5.3 million, mainly due to an increase in the number of credit cards issued and transactions made by credit cardholders during the reporting period[36] Interest Expense In H1 2025, interest expense was HKD 18.5 million, a 26.9% year-on-year increase, primarily due to an increase in average bank and other borrowings - Interest expense was HKD 18.5 million, an increase of 26.9%, primarily due to the average bank and other borrowings increasing from HKD 333.5 million to HKD 494.6 million[37] General and Administrative Expenses In H1 2025, general and administrative expenses were HKD 37.5 million, a 17.1% year-on-year increase, primarily due to higher professional fees and technology-related enhancement expenses - General and administrative expenses were HKD 37.5 million, an increase of 17.1%, primarily due to higher professional fees and technology-related enhancement expenses[38] Selling Expenses In H1 2025, selling expenses were HKD 14.9 million, a 4.0% year-on-year decrease, primarily due to a slight reduction in employee benefit expenses - Selling expenses were HKD 14.9 million, a decrease of 4.0%, primarily due to a slight reduction in employee benefit expenses[39] Net Expected Credit Losses In H1 2025, net expected credit losses were HKD 43.9 million, an increase from the prior year, primarily due to the expanded loan portfolio - Net expected credit losses were HKD 43.9 million, with the increase primarily due to the expanded loan portfolio[40] Profit for the Period In H1 2025, profit for the period reached HKD 44.2 million, a significant increase from HKD 34.3 million in the prior year - Profit for the period reached HKD 44.2 million, compared to HKD 34.3 million in H1 2024[41] Liquidity and Financial Resources The Group's funding channels include institutional loans and operating cash flow; net assets rose to HKD 934.4 million, but cash decreased due to loan advances and interest payments; most balances are in HKD, borrowings in HKD or JPY - Primary funding channels include loans or financing from authorized institutions, cash flows from operating activities, and funding from a Japanese funding provider[42] - As of June 30, 2025, net assets were HKD 934.4 million, and cash and cash equivalents were HKD 41.6 million (December 31, 2024: HKD 116.4 million)[43] - Cash and cash equivalents decreased, primarily due to increased advances to customers and interest payments on bank and other borrowings[43] - Most cash and bank balances are denominated in HKD, while borrowings are denominated in HKD or JPY[44] Capital Structure and Treasury Policy The company maintains prudent financial management and monitors liquidity; as of June 30, 2025, unutilized bank facilities were HKD 190.0 million, with borrowings used for working capital and secured by loans - The Company adopts a prudent financial management approach for its treasury policy, closely monitoring its liquidity position[45] - As of June 30, 2025, unutilized bank facilities available to the Group amounted to HKD 190.0 million[45] - Bank and other borrowings of HKD 481.2 million are used as working capital, with interest rates ranging from 5.10% to 9.53% per annum[45] - All bank and other borrowings are repayable on demand and secured by loans and interest receivables[46] Key Operating Data As of June 30, 2025, total loans increased to HKD 1,429.0 million, with unsecured homeowner loans accounting for 79.4%; average loan size and tenure varied, and total impairment allowance was HKD 110,813 thousand Loan Portfolio Breakdown As of June 30, 2025, total loans were HKD 1,429.0 million, with 12,791 accounts; homeowner loans accounted for 79.4%, and credit card advances increased to 1.9% Loan Portfolio Breakdown | Loan Type | Number of Loan Accounts (June 30, 2025) | Amount (HKD million, June 30, 2025) | % (June 30, 2025) | Number of Loan Accounts (December 31, 2024) | Amount (HKD million, December 31, 2024) | % (December 31, 2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Unsecured Homeowner Loans | 3,027 | 1,135.6 | 79.4 | 2,899 | 1,037.0 | 76.8 | | Personal Loans | 5,345 | 249.4 | 17.5 | 5,281 | 253.1 | 18.8 | | Credit Card Advances | 4,394 | 27.0 | 1.9 | 1,385 | 12.0 | 0.9 | | SME Loans | 25 | 17.0 | 1.2 | 38 | 47.2 | 3.5 | | Total | 12,791 | 1,429.0 | 100.0 | 9,603 | 1,349.3 | 100.0 | Average Loan Size For H1 2025, the overall average loan size was HKD 174.1 thousand, with SME loans having the largest average size at HKD 2,193.1 thousand Average Loan Size | Loan Type | Six Months Ended June 30, 2025 (HKD '000) | Year Ended December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Unsecured Homeowner Loans | 384.1 | 372.0 | | Personal Loans | 58.9 | 66.2 | | SME Loans | 2,193.1 | 1,475.5 | | Overall | 174.1 | 155.4 | Average Loan Tenure As of June 30, 2025, the average tenure for unsecured homeowner loans was 60.4 months, while personal and SME loan tenures shortened Average Loan Tenure | Loan Type | June 30, 2025 (Months) | December 31, 2024 (Months) | | :--- | :--- | :--- | | Unsecured Homeowner Loans | 60.4 | 49.8 | | Personal Loans | 21.1 | 29.5 | | SME Loans | 24.1 | 37.7 | | Overall | 35.3 | 36.1 | Aging Analysis of Loans and Advances (by Installment Due Date) As of June 30, 2025, most loans remain current, with unsecured homeowner loans having a current portion of HKD 942,025 thousand; overdue over 90 days for SME loans significantly decreased Loans and Advances Aging Analysis (by Installment Due Date) | Loan Type | Aging | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | :--- | | Unsecured Homeowner Loans | Current | 942,025 | 846,387 | | | Overdue over 90 days | 171,328 | 167,963 | | Personal Loans | Current | 231,509 | 237,146 | | | Overdue over 90 days | 11,484 | 10,911 | | Credit Card Advances | Current | 26,188 | 11,853 | | | Overdue over 90 days | 339 | 65 | | SME Loans | Current | 12,132 | 23,025 | | | Overdue over 90 days | 3,200 | 21,590 | Impairment Allowance Breakdown As of June 30, 2025, total impairment allowance was HKD 110,813 thousand, with unsecured homeowner loans accounting for HKD 20,212 thousand Impairment Allowance Breakdown | Loan Type | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Unsecured Homeowner Loans | 20,212 | 21,930 | | Personal Loans | 65,115 | 72,034 | | Credit Card Advances | 7,060 | 1,789 | | SME Loans | 9,789 | 29,819 | | Total | 110,813 | 116,935 | Key Financial Ratios As of June 30, 2025, the debt-to-equity ratio was 0.51, and the interest coverage ratio was 3.8 times, consistent with the prior year Key Financial Ratios | Financial Ratio | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Debt-to-Equity Ratio | 0.51 | 0.45 | Key Financial Ratios | Financial Ratio | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Interest Coverage Ratio | 3.8 times | 3.8 times | - Debt-to-equity ratio is calculated as net debt divided by total equity[56] - Interest coverage ratio is calculated as profit before tax and interest divided by interest expense[56] Outlook and Prospects Unsecured loan market is expected to grow with property market recovery, and credit card business continues significant growth; the company will invest in AI and data analytics to enhance efficiency and customer experience, launching new platform features and implementing generative AI for automation Market Recovery and Growth Drivers Unsecured loan market is expected to be driven by property market recovery, rising credit financing demand, and digital transformation; credit cardholders significantly increased by 133% to 4,464, indicating sustained growth in this business - The unsecured loan market is expected to be driven by property market recovery, rising credit financing demand, and digital transformation of financial services[54] - The number of credit cardholders significantly increased by approximately 133% to 4,464, indicating substantial and sustained growth in the credit card business[54] Technology and AI Investment Innovative AI and data analytics are expected to enhance operational efficiency and customer experience; the company will continue to invest in advanced systems and digital platforms to streamline processes and ensure customer data security - Innovative artificial intelligence and data analytics are expected to enhance operational efficiency and customer experience[55] - The company continuously invests in advanced systems and digital platforms to streamline processes, provide a seamless customer experience, and ensure the security and privacy of customer data[55] Future Platform Features and Efficiency Enhancement In H2 2025, KCash will launch smart credit assessment, PayKool will enhance credit card advances and introduce smart credit alerts; the company will also implement generative AI internally for automation - The KCash platform will launch a smart credit assessment report feature, offering free instant credit score evaluations[57] - The PayKool platform will enhance credit card advance features and introduce smart credit alert functions[57] - The company is developing initiatives for multiple generative AI use cases and gradually implementing them internally to automate routine tasks and enhance corporate efficiency[57] Other Information Significant Acquisitions and Disposals During the reporting period, the Group did not undertake any significant acquisitions or disposals of assets - During the reporting period, the Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures[58] Material Investments During the reporting period, the Group had no material investments and currently has no plans for future material investments or capital assets - During the reporting period, the Group had no material investments[59] - As of the date of this announcement, the Group has no future plans regarding material investments or capital assets[59] Pledge of Assets As of June 30, 2025, loans receivable totaling HKD 806.2 million were pledged as collateral for bank and other borrowings - As of June 30, 2025, certain loans receivable totaling HKD 806.2 million were pledged as collateral for bank and other borrowings[60] Foreign Exchange Risk The Group's business is in HKD, with foreign exchange risk mainly from JPY borrowings; risk is managed by reviewing exposure, monitoring rates, and using forward foreign exchange contracts for hedging - The Group's business activities are denominated in HKD, with foreign exchange risk primarily arising from JPY-denominated borrowings[61] - The Group has arranged forward foreign exchange contracts to hedge against foreign exchange risk arising from funding from a Japanese funding provider[61] Employees and Remuneration Policy As of June 30, 2025, the Group employed 67 staff, with employee benefit expenses of HKD 20.0 million; remuneration policy covers position, responsibilities, and performance - As of June 30, 2025, the Group employed 67 staff (December 31, 2024: 61 staff)[62] - During the reporting period, employee benefit expenses amounted to HKD 20.0 million[62] - The remuneration policy covers employee position, responsibilities, and performance, including salaries, overtime allowances, bonuses, and various subsidies[62] Employee Training Programs The Group values employee sustainable development, continuously improving its internal staff training system and formulating specific training and development plans to enhance skills - The Group values employee sustainable development, continuously improving its internal staff training system and formulating specific training and development plans[63] Contingent Liabilities As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[64] Interim Dividend The Board resolved to declare an interim dividend of 4.4 HK cents per share for the six months ended June 30, 2025 - The Board resolved to declare an interim dividend of 4.4 HK cents per share for the six months ended June 30, 2025[65] Corporate Governance The Group is committed to high corporate governance standards and complied with all applicable code provisions of the Corporate Governance Code throughout the reporting period - The Group is committed to maintaining high standards of corporate governance and has complied with all applicable code provisions of the Corporate Governance Code throughout the reporting period[66] Standard Code for Securities Transactions The Company adopted the Standard Code for securities transactions by directors and employees, with all directors confirming full compliance during the reporting period - The Company has adopted the Standard Code as the code of conduct for securities transactions by its Directors and relevant employees of the Group[67] - All Directors have confirmed their full compliance with the Standard Code during the reporting period[67] Audit Committee Review of Results The Audit Committee reviewed the Group's unaudited interim results for H1 2025, discussing accounting principles, financial reporting, and internal controls with management, with no disagreements - The Audit Committee has reviewed the Group's unaudited interim condensed consolidated results for the six months ended June 30, 2025, with no disagreements[68] No Material Changes Except as disclosed, there were no material changes affecting the Group's performance during the reporting period - During the reporting period, there were no material changes affecting the Group's performance that require disclosure under paragraphs 32, 40(2), and 46(3) of Appendix D2 to the Listing Rules[69] Events After Reporting Period From June 30, 2025, up to the date of this announcement, there have been no material events affecting the Group - From June 30, 2025, up to the date of this announcement, there have been no material events affecting the Group[70] Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[71] Compliance with Laws and Regulations The Group complied with all material laws and regulations affecting its money lending business, and Directors are unaware of any matters that could revoke its license - The Group has complied in all material respects with all laws and regulations significantly affecting its money lending business during the reporting period[72] - The Directors are unaware of any matters that could lead to the revocation of the money lender's license before its expiry date[72] Use of Proceeds from Global Offering Net proceeds of HKD 181.2 million from the global offering will continue to be used as outlined in the prospectus; HKD 4.2 million was used for technology, with the remaining HKD 18.5 million expected by December 2026 - Net proceeds from the global offering were approximately HKD 181.2 million, which will continue to be used for the same purposes outlined in the prospectus[73] Use of Proceeds from Global Offering | Purpose | Planned Application (HKD million) | Amount Utilized as of June 30, 2025 (HKD million) | Expected Timeline for Full Utilization of Remaining Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | | Enhance technological capabilities | 30.6 | 4.2 | By December 2026 | | Expand loan portfolio | 133.6 | – | – | | General working capital and general corporate purposes | 17.0 | – | – | | Total | 181.2 | 4.2 | | Suspension of Share Register Closure To determine interim dividend eligibility, share transfer registration will be suspended from September 3-5, 2025; record date is September 5, 2025, with payment expected on September 12, 2025 - The Company will suspend share transfer registration from September 3 to September 5, 2025[75] - The record date is September 5, 2025, and the interim dividend is expected to be paid on September 12, 2025[75] Publication of Interim Results and Interim Report This announcement and the interim report will be published in due course on the HKEX website and the Company's website - This announcement and the interim report will be published in due course on the HKEX website (www.hkexnews.hk) and the Company's website (www.kcash.hk)[76](index=76&type=chunk) Definitions and Board Information Definitions This section provides definitions for key terms used in the report, including 'Listing Rules', 'Reporting Period', 'Shares', and 'Corporate Governance Code' - Reporting Period refers to the six months ended June 30, 2025[78] - Unsecured homeowner loans refer to unsecured loans provided by the Group to borrowers who are property owners but have not provided any collateral for the loans[83] Board Information This section lists the members of the Company's Board of Directors as of the announcement date, including executive, non-executive, and independent non-executive directors - As of the date of this announcement, the Company's Board of Directors includes Executive Directors Mr. Li Kun Tai and Ms. Wong Cheuk Sze, Non-executive Directors Mr. Li Sheung Shing, Ms. Li Bik Chung, Ms. Chan Wing Sze and Ms. Kan Pui Yan, and Independent Non-executive Directors Professor Hon Wai Ming, JP, Mr. Mak Wing Sum and Mr. Leung Ka Cheong[82]