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• Oi Wah Recorded an Increase of 5.2% and 10.5% in Revenue and Profit Respectively in FP2020

Rabu, 30 Oktober 2019 20:15:00

Oi Wah Recorded an Increase of 5.2% and 10.5% in Revenue and Profit Respectively in FP2020

Plans to Launch an Online Pawn Loan Platform to Attract Customers and Will Continue to Adopt a Prudent Approach When Granting Loans
  
HONG KONG,  - 29 Oct 2019 - The board of directors of Oi Wah Pawnshop Credit Holdings Limited (HKEx stock code: 1319.HK, the "Group" or "Oi Wah") announced its interim results and its financial position.

For the six months ended 29 October 2019 ("FP2020"), the Group recorded revenue of approximately HK$117.8 million (6 months ended 31 August 2018 ("FP2019"): approximately HK$112.0 million), representing an increase of approximately 5.2%.

During the period, profit attributable to shareholders of the Company has increased by 10.5% and reached approximately HK$59.3 million (FP2019: approximately HK$53.6 million).
 
During the year, earnings per share was HK3.1 cents (FP2019: HK2.7 cents). The Board of Directors recommends an interim dividend of HK$1.07 cents.
 
Business Review
 
Mortgage loan business
 
For the six months ended 31 August 2019 ("FP2020" or the "Period"）, the mortgage loan business remained as a major source of income of the Group. During the Period, the interest income increased by approximately HK$2.3 million or 2.9% from approximately HK$78.9 million for the six months ended 31 August 2018 ("FP2019") to approximately HK$81.2 million in FP2020.

Revenue generated from the mortgage loan business in FP2020 accounted for approximately 68.9% of the Group's total revenue during the Period. The gross mortgage loan receivables increased from approximately HK$1,223.3 million as at 28 February 2019 to approximately HK$1,269.1 million as at 31 August 2019, where the total amount of new mortgage loans granted was approximately HK$306.6 million during FP2020. During the Period, there were 84 new cases of mortgage loan transactions while no bad debt was recorded.
 
In FP2020, the Group continued to adopt a cautious and prudent approach when granting loans, as well as maintain a higher proportion of first mortgage loans in the Group's portfolio to manage risk. During the Period, the loan-to-value ratio for first mortgage was approximately 49.4%, while the overall loan-to-value ratio for subordinate mortgage was approximately 52.6%, in which the loan-to-value ratio of subordinate mortgage that the Group participated in was approximately 13.6%. (*).