Net Profit Surges Nearly 40% with Interim Dividend of HK 1.4 cents per share
Financial Highlights| | For the six months ended 31 Aug | |||
| HK$'000 | 2026 | 2025 | Change | |
| Profit before taxation | 62,877 | 44,696 | +40.7% | |
| Profit for the period attributable to shareholders | 53,463 | 38,381 | +39.3% | |
| Net profit margin | 63.6% | 46.8% | +16.8 p.p | |
| Basic earnings per share (HK cents) | 2.8 | 2.0 | +40.0% | |
| Net interest margin | 19.1% | 16.4% | +2.7 p.p | |
HONG KONG SAR – Media OutReach Newswire – 28 October 2026 – 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 31 August 2026 ("FP2027"), the Group recorded revenue of approximately HK$84.1 million and profit attributable to shareholders of the Company of approximately HK$53.5 million, representing a year-on-year increase of approximately 39.3%.
During the period, earnings per share was HK 2.8 cents, representing a year-on-year increase of approximately 40.0%. The Board of Directors recommends an interim dividend of HK 1.4 cents.
Business Review
Mortgage loan business
In FP2027, the interest income of the mortgage loan business of the Group was approximately HK$31.6 million, which accounted for approximately 37.6% of the Group's total revenue. As at 31 August 2026, the gross mortgage loan receivable was approximately HK$582.5 million and during the period, the total new mortgage loans granted amounted to approximately HK$132.9 million. During the period, net interest margin of the mortgage loan business is about 10.8%. There were 36 new cases of mortgage loan transactions.
The Group recorded the reversal of impairment losses of loan receivables of approximately HK$2.9 million during the period, as compared to a charge for impairment losses of approximately HK$10.9 million for the six months ended 31 August 2025 ("FP2026"). It is mainly attributable to a slight increase in residential property prices in general in the first half of 2026.
Pawn Loan Business
During the period, the interest income generated from the pawn loan business was approximately HK$43.7 million in FP2027, representing a period-on-period increase of approximately 10.9%. The Group also recorded gain from disposal on repossessed assets of approximately HK$8.8 million.
During the period, the Group continued to channel resources to advertising and promotion, in order to enhance the Group's brand exposure. Such effort has generated demand of one-to-one pawn loan appointment services for pawn loans of loan size exceeding HK$0.1 million. The Group recorded average loan amount of approximately HK$13,000 per transaction during FP2027.
Prospects
Looking ahead, the global macroeconomic environment is anticipated to expand at a moderate pace, offset by persistent geopolitical tensions in the Middle East and structural inflationary pressures. Market volatility and interest rate trajectories have increasingly evolved into primary structural considerations for cross-border capital allocation. Amid these evolving economic conditions, international gold prices are expected to fluctuate within an elevated range near historical peaks, reinforcing the valuation stability of underlying collaterals and maintaining a prudent risk buffer for the Group's pawn loan portfolio. In Hong Kong, the Board anticipates that the residential property market will remain in a phase of structural consolidation and price recovery. Supported by sustained capital inflows from the Mainland, government talent admission frameworks, and steady primary market inventory clearance, residential demand is expected to recover progressively. Conversely, the commercial and industrial property sectors are projected to remain subdued, reflecting prolonged supply-demand realignments. Weighing these macro factors, the Board maintains a cautiously optimistic outlook on the local property sector and broader economy.
Having strengthened our credit risk management framework and optimized portfolio quality in recent periods, the Group has achieved a solid foundation in asset quality. With market conditions gradually stabilizing, the Board considers it opportune to rebalance our strategic focus towards capturing high-quality growth opportunities. To drive profit growth and revenue diversification, the Group is deepening its strategic partnership with PACM Group to scale its presence in real estate private credit management. Concurrently, the Group will step up its marketing efforts and actively explore lending opportunities to strengthen loan origination across both pawn and mortgage financing segments.
Furthermore, the Group will selectively pursue targeted acquisition opportunities of established pawn operators to expand customer reach, drive operational synergies, and reinforce brand equity. Through these dual-track growth strategies, the Group remains uniquely positioned to solidify its market-leading position and deliver sustainable long-term value for shareholders.
Mr. Edward Chan, Chairman, CEO and Executive Director of the Company, said, "In navigating a complex macro landscape, our strong business resilience and refined risk management drove a near 40% surge in net profit, demonstrating the core strength of our business model. As Hong Kong's residential property market gradually consolidates and recovers, we believe now is the right time to actively capture high-quality growth opportunities. Moving forward, we are executing a dual-engine strategy: expanding into real estate private credit management through strategic alliances, while pursuing targeted acquisitions of established pawn operators to broaden our reach. This multi-stream approach will reinforce our earnings base, solidify our market leadership, and deliver enduring value to our shareholders."
Hashtag: #靄華押業 #OiWah #中期業績 #InterimResults
The issuer is solely responsible for the content of this announcement.
Oi Wah Pawnshop Credit Holdings Limited
Oi Wah is a financing service provider in Hong Kong, mainly providing short-term secured financing, including pawn loans and mortgage loans. The Group established its first pawnshop in 1975 and currently owns 10 pawnshops and one premium service center in various locations in Hong Kong. Oi Wah diversified into mortgage loan business in 2009. The Group is the first local pawn shop which successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited on 12 March 2013.