Revenue and Profitability - Revenue for the six months ended August 31, 2025, was HKD 82,016,000, a decrease of 5.7% compared to HKD 87,000,000 in the same period of 2024[3] - Profit before tax increased by 24.3% to HKD 44,696,000 from HKD 35,962,000 year-on-year[3] - Net profit attributable to shareholders rose by 25.7% to HKD 38,381,000 compared to HKD 30,535,000 in the previous year[3] - Basic earnings per share increased to HKD 2.0 from HKD 1.6[4] - Operating profit for the period was HKD 46,591,000, up from HKD 38,082,000 in the previous year[4] - Total revenue for the six months ended August 31, 2025, was HKD 82,016,000, down 5.67% from HKD 87,000,000 in the same period of 2024[14] - The company's profit attributable to shareholders for the six months ended August 31, 2025, was HKD 38,381,000, compared to HKD 30,535,000 for the same period in 2024, representing a year-over-year increase of 25.5%[22] Assets and Liabilities - Total assets increased by 1.8% to HKD 1,204,437,000 from HKD 1,183,020,000[5] - Total equity rose by 2.1% to HKD 1,130,772,000 compared to HKD 1,107,978,000[6] - Total loans receivable amounted to HKD 829,331,000, down 4.7% from HKD 870,645,000[3] - Total liabilities, including accrued expenses and other payables, increased to HKD 6,351,000 as of August 31, 2025, from HKD 4,378,000 as of February 28, 2025[36] Cash Flow and Investments - Cash and cash equivalents increased to HKD 293,288,000 from HKD 215,655,000[5] - Net cash generated from operating activities for the six months ended August 31, 2025, was HKD 96,428,000, compared to HKD 98,824,000 in 2024, reflecting a decline of 2.42%[8] - Net cash used in investing activities for the six months ended August 31, 2025, was HKD 2,463,000, a significant improvement from a net cash outflow of HKD 35,846,000 in 2024[8] - Net cash used in financing activities for the six months ended August 31, 2025, was HKD 21,258,000, a reduction of 53.38% from HKD 45,669,000 in 2024[8] - The net increase in cash and cash equivalents for the six months ended August 31, 2025, was HKD 77,633,000, compared to HKD 17,309,000 in 2024, representing a substantial increase[8] Operating Performance - Operating cash flow before changes in working capital for the six months ended August 31, 2025, was HKD 60,358,000, a decrease of 3.95% from HKD 63,617,000 in the same period of 2024[8] - Interest income from pawn loans for the six months ended August 31, 2025, was HKD 33,846,000, slightly down from HKD 33,985,000 in 2024[14] - The cost of sold recovered assets for the six months ended August 31, 2025, was HKD 27,100,000, compared to HKD 31,400,000 in 2024, indicating a decrease of 13.06%[14] - Revenue from pawn loan operations increased by approximately HKD 5.1 million or 11.8% to about HKD 48.4 million[53] Credit and Risk Management - The company recognized a credit loss expense of approximately HKD 10,900,000 for the six months ended August 31, 2025, a significant decrease from HKD 24,500,000 for the same period in 2024[28] - The company’s expected credit loss provision for loans over one month overdue was approximately HKD 36,800,000 as of August 31, 2025, up from HKD 31,300,000 as of February 28, 2025[29] Dividends and Shareholder Returns - The interim dividend declared for the six months ended August 31, 2025, is HKD 0.01 per share, compared to HKD 0.0064 per share for the same period in 2024, representing a 56.25% increase[39] - The company reported a mid-term dividend of HKD 0.01 per share, amounting to approximately HKD 19,200,000, which represents about 50.1% of the profit attributable to shareholders for the fiscal year 2026[84] Strategic Developments - The company has established a strategic partnership with PACM Group to set up a fund, marking its entry into the real estate private credit investment management sector[75] - The board remains cautiously optimistic about the property market in Hong Kong, anticipating a gradual recovery in residential property prices, contingent on stable economic conditions[75] - The company will continue to review strategic store locations and explore potential acquisition opportunities within its existing pawn business to enhance customer experience[75] Operational Efficiency - Operating expenses decreased by approximately HKD 1,600,000 or 5.6% from HKD 28,500,000 in FY2025 to HKD 26,900,000 in FY2026[56] - Employee costs slightly decreased by approximately HKD 400,000 or 2.7% from HKD 14,800,000 in FY2025 to HKD 14,400,000 in FY2026[56] - Other operating expenses decreased by approximately HKD 1,100,000 or 14.1% from HKD 7,800,000 in FY2025 to HKD 6,700,000 in FY2026, mainly due to a reduction in bank fees[57] - Financing costs decreased by approximately HKD 200,000 or 9.5% from HKD 2,100,000 in FY2025 to HKD 1,900,000 in FY2026[58] Market Conditions and Future Outlook - The group will continue to monitor global and local economic developments and adjust mortgage loan rates and loan-to-value ratios accordingly[51] - There have been no significant events affecting the company's business after August 31, 2025[86]
霭华押业信贷(01319) - 2026 - 中期业绩