香港信贷2024年报

CONTENTS 2Corporate Information4Management Discussion and Analysis15Corporate Governance Report42Environmental, Social and Governance Report77Directors and Senior Management81Report of the Directors93Independent Auditor’s Report100Consolidated Statement of Comprehensive Income101Consolidated Statement of Financial Position103Consolidated Statement of Changes in Equity104Consolidated Statement of Cash Flows105Notes to the Financial Statements177Schedule of Investment Properties178Five-year Financial Summary179Glossary CORPORATE INFORMATION DIRECTORS AND BOARD COMMITTEESDirectors Executive Directors Chan Koung NamChan Kwong Yin William(Chairman)Tse Pui To(Chief Executive Officer)Chan Siu Ching Wong Kai Man Independent Non-executive Directors Chu Yat Pang TerryCheung Kok CheongWong Kai Man BOARD COMMITTEESAudit Committee Wong Kai Man Chu Yat Pang Terry(Chairman)Cheung Kok CheongWong Kai Man Remuneration Committee Chu Yat Pang Terry(Chairman)Chan Koung NamCheung Kok Cheong Nomination Committee Chan Kwong Yin William(Chairman)Chu Yat Pang TerryCheung Kok Cheong COMPANY SECRETARYHui Chun Ho Eric REGISTERED OFFICE Cricket Square, Hutchins DriveP.O. Box 2681Grand Cayman, KY1-1111Cayman Islands Cricket Square, Hutchins DriveP.O. Box 2681Grand Cayman, KY1-1111Cayman Islands HEADQUARTERS AND PRINCIPAL PLACE OF BUSINESS Unit 3410, 34th Floor,Tower II Lippo Centre89 QueenswayAdmiraltyHong Kong 89343410 2Hong Kong Finance Group LimitedANNUAL REPORT 2024 CORPORATE INFORMATION PRINCIPAL BANKERS DBS Bank (Hong Kong) LimitedBank of China (Hong Kong) Limited LEGAL ADVISORS As to Hong Kong law:Cheung & Choy Solicitors & Notaries As to Cayman Islands law:Conyers Dill & Pearman (Cayman) Limited Conyers Dill & Pearman (Cayman) Limited AUDITOR PricewaterhouseCoopersCertified Public AccountantsRegistered Public Interest Entity Auditor PRINCIPAL SHARE REGISTRAR ANDTRANSFER OFFICE IN CAYMAN ISLANDS Conyers Trust Company (Cayman) LimitedCricket Square, Hutchins DriveP.O. Box 2681Grand Cayman, KY1-1111Cayman Islands Conyers Trust Company (Cayman) LimitedCricket Square, Hutchins DriveP.O. Box 2681Grand Cayman, KY1-1111Cayman Islands BRANCH SHARE REGISTRAR ANDTRANSFER OFFICE IN HONG KONG Union Registrars LimitedSuites 3301-04, 33/F.Two Chinachem Exchange Square338 King’s RoadNorth Point, Hong Kong 3382333301-04 1273 STOCK CODE1273 www.hkfinance.hk COMPANY’S WEBSITEwww.hkfinance.hk MANAGEMENT DISCUSSION AND ANALYSIS BUSINESS REVIEW AND INDUSTRY OVERVIEW Our Group primarily operates in the money lending sector, specialisingin providing loans to property owners in Hong Kong under the MLO. Ourcore business revolves mortgage loans, which we offer under our widelyrecognised brand name “Hong Kong Finance”. We also diversify ourservices by providing unsecured personal loan products to property owners,aiming to expand our presence in various money lending market segmentsand enhance our overall interest margin. The financial year of 2023/24 posed a multitude of challenges andcomplexities. Ongoing interest rate hikes resulted in weak global investmentand consumption demand. Prolonged geopolitical tensions such as theRussia-Ukraine conflict, and the Israeli-Palestinian conflict heightened investoraversion to risk. A slowdown in China ’s economic growth further addedheadwinds to the economy. These adverse factors collectively contributedto the continued decline in Hong Kong ’s residential property market, asevidenced by the Centra-City Leading Index’s downward trend from 168.27in late March 2023 to 147.08 in late March 2024. Despite a cyclical reboundin Hong Kong’s economy following the COVID-19 pandemic and the effortsby the Hong Kong Government to partially ease property market coolingmeasures, the recovery was ephemeral, and the market sentiment remainedweak with no significant rebound observed in property prices or transactionvolume. In this challenging environment, our Group ’s overall financialperformance was negatively impacted, leading to a significant increase in ourprovision for impairment and write-off of loans and interest receivables, andrepossessed assets of HK$18.0 million for the current year, although we havemaintained our Group interest income of HK$158.9 million at similar level asof last year’s. 2023/2420233168.2720243147.08COVID-19158,900,00018,000,000 65.7%3.5%104,400,0002024331732,200,0003.4%54,500,00034.3%2024331203,600,000 Mortgage loans remained the primary revenue source for our Group,contributing approximately 65.7% to our total revenue during the currentyear. Interest income generated from mortgage loans decreased by 3.5% toHK$104.4 million. As of 31 March 2024, our gross mortgage loan and interestreceivables amounted to HK$732.2 million. For our unsecured personal loanbusiness, interest income increased by 3.4% to HK$54.5 million, accountingfor approximately 34.3% of our Group’s revenue for the current year. As of31 March 2024, our gross personal loan and interest receiva