Interest income from mortgage business increases over three-fold
Year ended 28 February
HK$'000 2014 2013 Change
Turnover 95,815 71,740 +33.6%
excluding listing expenses 54,836 41,466 +32.2%
attributable to shareholders
of the Company 41,076 22,706 +80.9%
Net profit margin 42.9% 31.7%
Earnings per share (HK cents) 10.4 7.6
Dividend per share (HK cents) 2.7 --
The board of directors of
During the year, the Group recorded turnover of
Pawn Loan Business
During the year, the pawn loan business remained a major source of income for the Group. The interest income from the pawn loan business maintained stable and has slightly increased to approximately
Although the total number of loans was less than last year, the interest income remained stable. This reflects there is an increase in the number of loans with larger transaction amount. The Group's successful listing and advertising effort has increased the demand for one-on-one pawn loan appointment services, which usually involve large transaction amounts.
Mortgage loan business
The mortgage loan business remains the Group's growth momentum. The business has continued to show rapid growth within the reporting period. Interest income from mortgage loan services increased significantly and reached approximately
Looking forward, the Group will channel its resources and effort to business development and risk control. In terms of business development, the Group will invest capital in promoting Oi Wah's brand through various advertising channels, as well as employing more experienced personnel to further expand the mortgage loan business.
In terms of risk control, in view of the falling gold price, the Group will pose a more stringent control when granting loans. A more careful and conservative loan to value ratio approval will be applied. Moreover, the Group will consider cooperating with other financing service providers to jointly grant large amount of loans.
A series of actions has been taken in FY 2014 to optimise the financial structure of the Group, including placing, issuing of bonds and loans from ultimate holding company, to prepare for its future expansion. The mortgage loan business will take up a larger proportion of the Group's income in the coming year.
Oi Wah is a financing service provider in
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