Financial Performance - For the first half of 2023, the company reported a pre-tax profit of HKD 230.9 million, an increase of 9.4% or HKD 19.8 million compared to the same period in 2022[62]. - The net profit after tax rose by 8.3%, from HKD 176.8 million in the first half of 2022 to HKD 191.4 million in the first half of 2023[62]. - Earnings per share increased from HKD 0.4221 to HKD 0.4571 during the reporting period[62]. - The group’s sales for the first half of 2023 increased by 24.6% compared to the same period in 2022[77]. - Total revenue for the period from March 1, 2023, to August 31, 2023, reached HKD 783,109,000, a significant increase of 37% compared to HKD 571,730,000 for the same period in 2022[146]. - Interest income for the same period was HKD 657,771,000, up 37% from HKD 479,715,000 in the previous year[150]. - The group reported a profit before tax of HKD 230,865,000 for the period, compared to HKD 211,111,000 for the same period in 2022, reflecting an increase of 9%[149]. - The profit for the period was HKD 191,426,000, an increase from HKD 176,774,000 in the previous year[98]. Customer Loans and Receivables - Private loan receivables increased by 38.5% to HKD 148 million for the first half of 2023 compared to HKD 110.9 million in the same period of 2022, despite a decline in classified performance from HKD 36.8 million to HKD 26.9 million[5]. - Total customer loans and receivables increased to HKD 6,439,903,000 as of August 31, 2023, compared to HKD 4,822,040,000 as of August 31, 2022, reflecting a growth of approximately 33.5%[176]. - The net increase in customer loans and receivables for the period was HKD 731,821,000, compared to a net increase of HKD 640,055,000 in the previous period, showing an increase of approximately 14.3%[176]. - Customer loans and receivables increased to HKD 4,780,681 thousand, up from HKD 4,404,568 thousand, representing a growth of about 8.5%[101]. - The company reported a total of HKD 4,817,439,000 in receivables from credit card accounts as of August 31, 2023, an increase from HKD 4,481,038,000[191]. Equity and Debt - The net debt to equity ratio increased to 0.6 as of August 31, 2023, compared to 0.5 on February 28, 2023, indicating a rise in leverage[9]. - The company reported a total equity of HKD 3,957 million as of August 31, 2023, compared to HKD 3,892 million on February 28, 2023[9]. - As of August 31, 2023, the company's debt consists of 59.4% equity and 40.6% direct borrowings, with a debt-to-equity ratio of 0.6, up from 0.5 on February 28, 2023[24]. - The average duration of the company's debt was 2.1 years as of August 31, 2023, compared to 1.9 years as of February 28, 2023[23]. - The total equity rose to HKD 3,957,015 thousand from HKD 3,892,460 thousand, indicating an increase of approximately 1.7%[101]. Dividends - The interim dividend declared is HKD 0.24 per share, up from HKD 0.22 per share in the first half of 2022, with a payout ratio of 52.5%[79]. - The company declared a final dividend of HKD 92,128 thousand for the fiscal year 2022/2023[121]. - The company declared a final dividend of HKD 0.22 per share, totaling HKD 92,128,000, consistent with the previous year's dividend[153]. Risk Management - The company has implemented policies to monitor and manage credit risk, significantly reducing its credit risk exposure[31]. - The company has adopted interest rate swaps to convert variable rate debt to fixed rates, mitigating cash flow interest rate risk[29]. - The company continues to utilize long-term bank loans to fund growing receivables, mitigating liquidity risk[14]. - The company has invested resources in cybersecurity risk management to enhance its network defense capabilities[47]. Sustainability and Development - The company has established key performance indicators related to sustainability for its subsidiaries, focusing on improving internal processes for greater sustainable development[7]. - The company is focusing on sustainable development, introducing new uniforms made from recycled materials to reduce carbon footprint[77]. - A strategy committee was established on June 29, 2023, to oversee strategic initiatives within the company[50]. Customer Engagement and Services - The company aims to enhance customer experience and expand its credit card services, leveraging strong liquidity and financial stability to capture growth in the consumer finance market[7]. - The company issued 81,000 AEON cards in the first year of the cash rebate loyalty program, indicating strong customer engagement[46]. - The new mobile app includes features such as biometric authentication and simplified payment options to enhance credit card services[82]. - The Tuen Mun branch was relocated to a new site with nearly double the floor area to improve customer experience[82]. Operational Performance - The operating income for the first half of 2023 was HKD 732,680,000, compared to HKD 572,265,000 in the same period of 2022[96]. - Operating expenses increased to HKD 351,383,000 from HKD 323,464,000, primarily driven by higher employee costs and administrative expenses[152]. - The company has implemented various measures to promote healthy growth in sales and receivables amidst a favorable market environment[3]. Asset Management - The company has reported a significant increase in property, plant, and equipment to HKD 172,083 thousand from HKD 84,584 thousand, marking a growth of approximately 103.5%[100]. - The company purchased property, plant, and equipment amounting to HKD 118,100,000 during the period, a significant increase from HKD 8,532,000 in the previous year[189]. - The company has issued new direct holding company loans amounting to HKD 500,000 thousand, which was not present in the previous period[101]. Cash Flow and Investments - The net cash used in operating activities for the six months ended August 31, 2023, was HKD (327,527) thousand, compared to HKD (312,019) thousand for the same period in 2022[103]. - The company incurred a net cash outflow from investing activities of HKD (68,778) thousand, compared to HKD (31,769) thousand in the prior year, indicating a worsening of approximately 116%[103]. - The cash and cash equivalents at the end of the period were HKD 346,802 thousand, compared to HKD 426,922 thousand at the end of the previous period, reflecting a decrease of about 18.7%[103]. Accounting and Compliance - The company applied new accounting standards which did not have a significant impact on the financial position and performance[124]. - The company continues to assess the impact of deferred tax assets and liabilities related to temporary differences in accordance with the revised accounting standards[126]. - The company has applied Hong Kong Accounting Standard No. 1 and the revised Practical Guidance No. 2, which will be effective for the financial year starting March 1, 2023[157].
AEON CREDIT(00900) - 2024 - 中期财报