Financial Performance - Revenue for the year ended February 28, 2025, was HKD 164,295,000, a decrease of 8.4% compared to HKD 179,307,000 in 2024[3] - Profit before tax decreased by 37.3% to HKD 64,715,000 from HKD 103,282,000 in the previous year[3] - Net profit attributable to shareholders was HKD 55,908,000, down 35.3% from HKD 86,447,000 in 2024[3] - The company reported an operating profit of HKD 68,632,000, down from HKD 109,412,000 in the previous year[5] - The group's profit decreased by approximately HKD 30,500,000 or 35.3% to HKD 55,900,000 in fiscal year 2025, mainly due to a revenue drop of about HKD 15,000,000 and an increase in impairment losses[62] Assets and Liabilities - Total assets as of February 28, 2025, were HKD 1,183,020,000, a slight decrease of 0.5% from HKD 1,188,706,000 in 2024[3] - Total equity increased by 2.6% to HKD 1,107,978,000 from HKD 1,079,682,000 in the previous year[7] - The total amount of receivables decreased by 8.3% to HKD 870,645,000 from HKD 949,978,000 in 2024[3] - The total lease liabilities as of February 28, 2025, amounted to HKD 23,164,000, an increase from HKD 13,985,000 in 2024[28] - The total bank loans and overdrafts as of February 28, 2025, is HKD 40,500,000, down from HKD 60,500,000 the previous year, representing a reduction of 33.3%[40] Income and Expenses - Total other income for the year ended February 28, 2025, was HKD 11,754,000, significantly higher than HKD 4,730,000 in 2024, marking an increase of approximately 148.5%[19] - The company's profit before tax for the year 2025 was HKD 64,715,000, a decrease of 37.3% compared to HKD 103,282,000 in 2024[22] - The income tax expense for 2025 was HKD 8,807,000, down from HKD 16,835,000 in 2024, reflecting a significant reduction in tax liability[22] - Operating expenses increased by approximately HKD 1,600,000 or 2.7% to HKD 61,100,000, with employee costs rising by 6.6% to HKD 33,800,000[55] Loans and Credit Losses - The expected credit loss recognized for the year was approximately HKD 46,300,000, significantly higher than HKD 15,100,000 in 2024[34] - The expected credit loss provision for amortized cost receivables is approximately HKD 60,300,000 for the reporting period, compared to HKD 15,100,000 in the previous year[36] - The impairment loss on receivables was approximately HKD 46,300,000, a significant increase from HKD 15,100,000 in fiscal year 2024, primarily due to the decline in collateral values[58] - The impairment loss on mortgage loans in fiscal year 2025 was approximately HKD 41,700,000, attributed to several defaulted loans amid a notable decline in property prices[58] Dividends and Shareholder Information - The company proposed a final dividend of HKD 0.81 per share, compared to HKD 0.76 in the previous year[3] - The board proposed a final dividend of HKD 0.0081 per share, which, along with an interim dividend of HKD 0.0064 per share, represents 49.94% of the profit attributable to shareholders for the fiscal year 2025[90] - Shareholders must submit completed transfer forms by 4:30 PM on August 5, 2025, to qualify for the final dividend[91] Governance and Compliance - The board of directors includes executive directors and independent non-executive directors, ensuring a diverse governance structure[93] - The audit committee found no significant deficiencies in internal controls or financial reporting for the fiscal year 2025[87] - The company has not made any significant acquisitions or disposals during the fiscal year 2025, apart from the investment in the fund[80] Strategic Initiatives - The group 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 group has invested approximately HKD 112,000,000 in the PACM OW Global Special Situation Fund II L.P., with an investment fair value of approximately HKD 40,400,000 as of February 28, 2025, representing about 3.4% of total assets[79] Market and Economic Conditions - The pawn loan business revenue increased by 9.7% or HKD 7,700,000 to HKD 87,300,000, driven by stable gold prices and an active second-hand luxury goods market[49] - The average loan-to-value ratio for first mortgages was approximately 58.2%, while the overall average loan-to-value ratio for second mortgages was about 52.8%[48]
霭华押业信贷(01319) - 2025 - 年度业绩