HONG KONG, May 29, 2015 /PRNewswire/ --
Financial Highlights
| Year ended 28 February |
|||
| HK$ |
2015 |
2014 |
Change |
| Turnover |
146,516,719 |
95,815,052 |
+52.9% |
| Profit before taxation |
96,125,260 |
49,981,801 |
+92.3% |
| Profit for the year attributable to shareholders |
80,091,046 |
41,076,096 |
+95.0% |
| Net profit margin |
54.7% |
42.9% |
-- |
| Earnings per share (HK cents) |
17.8 |
10.4 |
+71.2% |
| Final dividend per share (HK cents) |
3.0 |
2.7 |
+11.1% |
| Interim dividend per share (HK cents) |
2.4 |
-- |
-- |
| Total dividend per share (HK cents) |
5.4 |
2.7 |
+100.0% |
The board of directors of Oi Wah Pawnshop Credit Holdings Limited (HKEx stock code: 1319, the "Group" or "Oi Wah") announced its annual results and financial position for the year ended 28 February 2015. Profit for the year attributable to shareholders of the Company has surged by 95.0% and reached approximately HK$80.1M (2014: approximately HK$41.1M). The Board of Directors recommends a final dividend of HK$3.0 cents (2014: HK$2.7 cents). During the year, the total dividend per share is HK$5.4 cents (2014: HK$2.7 cents). The Board also proposes bonus shares will be issued on the basis of three bonus shares for every one share held by shareholders after the end of the reporting period.
During the year, the Group recorded turnover of approximately HK$146.5M (2014: approximately HK$95.8M), representing an increase of approximately HK$50.7M or 52.9%. The increase was mainly attributable to an increase in the Group's interest income earned on its loan receivables by approximately HK$48.8M or 51.7% to approximately HK$143.1M (2014: approximately HK$94.3M) and an increase in gain on disposal of repossessed assets by approximately HK$1.9M or 126.7% to approximately HK$3.4M (2014: approximately HK$1.5M). The profit attributable to shareholders was HK17.8 cents per share (2014: HK10.4 cents per share).
Business Review
Pawn Loan Business
Pawn loan business has been a cornerstone for the Group. During the year ended 28 February 2015, the pawn loan business continued to be one of the major sources of income for our Group. During the year, the interest income maintained steady growth with total loan amount granted of approximately HK$578.0M. Although the gold price we pawned per ounce decrease during the year when compared to that in last year, the Group recorded a healthy growth in turnover. The average loan amount of transaction increased to approximately HK$5,200 per transaction (2014: approximately HK$4,400 per transaction).
Benefited from the advertising effect, the demand for one-to-one pawn loan appointment services for large loan amount has been increasing. During the year, as the Group channeled its focus on high net worth customers, the number of transactions with large loan amount increased to 325 transactions (2014: 220 transactions).
Mortgage loan business
During the year, the mortgage loan business has continued to show a rapid growth. As at 28 February 2015, the aggregated loan amount increased to approximately HK$543.2M (as at 28 February 2014: approximately HK$365.0M), representing an increase of approximately 48.8%. The interest income rose to approximately HK$85.5M during the year (2014: approximately HK$37.5M), representing an increase of approximately 128.0%. Besides, there were 215 new cases of loan transactions while no bad debt was recorded. During the year, the Group continued to grant mortgage loans with other lenders with the aim of satisfying customers' needs in large loan amount (usually greater than HK$10M), broadening income sources and customer base as well as diversifying the risk.
Prospects
Looking forward, the Group's pawn loan business is expected to continue to record organic growth and bring stable income. The Group will continue to target on high net worth customers and enhance its advertising efforts to generate more income from one-to-one pawn loan appointment services, which usually involves pawn loan transactions of larger loan amount. The Group is also considering allocating more resources to set up more pawn shops in order to expand its business scope and market share.
In addition, the mortgage loan business will remain to be the growth momentum for the Group. The Group will continue to aim at the high-end customer market to cater for customers with short-term financing needs. Furthermore, the Group will continue to seize the business opportunities for large loan amount, and engage in syndicated loan business with other lenders with the aim of diversifying the risk on money lending. Meanwhile, the Group's credit management remains cautious and prudent.
Mr. Edward Chan, Chairman and CEO of the Company, said, "We are confident about our future prospects. We will continue to strengthen the Group's financial structure in order to capture more market share. Regarding long-term development plan, given the ample development opportunities for loan business in the Southeast Asia regions, the Group is examining and considering to enter those regions to conduct small-scale loan business in order to diversify its business portfolio and broaden its income sources in the long run."
About Oi Wah Pawnshop Credit Holdings Limited
Oi Wah is a financing service provider in Hong Kong, mainly providing secured financing, including pawn loans and mortgage loans. According to the Ipsos Report, Oi Wah is the largest pawn loan service provider in Hong Kong in 2011 in terms of loan amount granted and number of pawnshops, and has been constantly growing since. The Group established its first pawnshop in 1975 and currently owns 12 pawnshops in various locations in Hong Kong. Oi Wah diversified into mortgage loan business in 2009.