2025-07-17-港交所-新世纪集团_2025年报页_266页_2mb

New Century Group Hong Kong Limited 2025 Annual Report Summary

Core Information

• Company Name: New Century Group Hong Kong Limited
• Stock Code: 234
• Website: www.ncgrp.com.hk
• Registered Office: Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda
• Hong Kong Branch Office: Far East Finance Centre, 16 Harcourt Road, Hong Kong
• Principal Bankers:
  • Standard Chartered Bank (Hong Kong) Limited
  • DBS Bank (Hong Kong) Limited
  • Hang Seng Bank Limited
  • The Bank of East Asia, Limited
• Legal Advisor: CFN Lawyers
• Auditor: Ernst & Young, Certified Public Accountants

Key Financial Highlights (2025 vs. 2024)

Notes:

• Financial information for the years ended 31 March 2022 and 2021 has been restated to reflect the impact of a discontinued operation.
• The Group's financial performance was affected by a shift in the market and economic conditions, leading to a profit-to-loss transition.

Main Financial Performance Overview

• Revenue: Increased by 2.2% to HK$90,263,000, driven by fair value gains on listed equity investments and dividend income.
• Other Income: Rose by 12.6% to HK$17,377,000, mainly due to increased bank interest income and recovery of bad debts.
• Administrative and Operating Expenses: Declined by 4.7% to HK$44,531,000, with a significant reduction in advertising and promotion expenses (down 44.4%).
• Loan and Interest Receivables (after impairment): Decreased by 20.3% to HK$577,338,000, reflecting a smaller loan portfolio.
• Net Impairment Losses: Total net provision for impairment losses on loan and interest receivables and repossessed assets amounted to HK$37,059,000, a slight decrease from HK$37,964,000 in 2024.
• Profit Attributable to Owners: Recorded a loss of HK$55,659,000, down from a profit of HK$22,413,000 in 2024.

Business Segments Overview

Money Lending

• Revenue: HK$69,716,000, down 4.2% from HK$72,744,000 in 2024.
• Loan Portfolio:
  • 28 mortgage loans (2024: 40), with total principal HK$188,530,000 (2024: HK$255,960,000).
  • Interest rates ranged from 9.5% to 12.5% (2024: 8.0% to 13.0%).
  • Loan maturity varied from 12 to 180 months.
• Unsecured Personal Loans:
  • 7 loans granted (2024: 5), with total principal HK$5,230,000 (2024: HK$2,520,000).
  • Interest rates ranged from 18.0% to 22.0% (2024: 20.0% to 22.0%).
• Impairment Provisions:
  • Mortgage loans: HK$38,984,000 (2024: HK$25,771,000).
  • Unsecured personal loans: HK$831,000 reversal (2024: HK$218,000).
• Total Net Impairment Provision: HK$38,153,000 (2024: HK$25,553,000).
• Repossessed Assets: Gross carrying amount increased by 30.5% to HK$134,463,000 (2024: HK$103,035,000), involving 16 loan cases (2024: 10).

Property Investment

• Segment Revenue: Decreased by 2.4% to HK$14,914,000, compared to HK$15,288,000 in 2024.
• Rental Income (Hong Kong): HK$12,355,000, down 2.5% from HK$12,675,000 in 2024.
• Rental Income (Singapore): HK$2,559,000, down 2.1% from HK$2,613,000 in 2024.
• Fair Value Gains/Losses: Net fair value losses on investment properties amounted to HK$69,400,000 (2024: HK$13,131,000).
• Occupancy Rate: Declined to 95.8% (2024: 96.9%).
• Annual Rental Yield: Increased to 3.1% (2024: 2.8%).

Securities Trading

• Profits: Increased significantly to HK$5,693,000 (2024: HK$315,000).
• Performance Drivers: Leveraged market volatility and supportive policies from Mainland China, including increased listings in Hong Kong and improved market liquidity.
• Impact: Helped offset the Group's losses from other segments.

Key Challenges and Opportunities

• Residential Property Market: Continued pressure from high mortgage rates, buyer caution, and oversupply of unsold units. Fair value declines impacted the Group's performance.
• Retail Sector: Shift in consumer behavior towards online shopping and Mainland China led to reduced local activity and fair value reductions.
• Office Market: Elevated vacancy rates due to oversupply and subdued leasing demand.
• Government Policies: Measures such as reduced stamp duties and eased transaction restrictions began to stimulate activity in the primary residential market.
• Market Outlook: Uncertainty from geopolitical tensions and potential US Federal Reserve rate cuts remained, requiring continued caution.
• Opportunities: Improved economic conditions and supportive policies are expected to benefit the Group's property investment portfolio over time.

Strategic Initiatives

• Risk Management: The Group maintained a cautious approach to lending and actively managed credit risk through legal actions and collateral repossession.
• Portfolio Optimization: Focused on reducing exposure and maintaining stable income streams amid market uncertainties.
• Asset Management: Adopted a strategic approach to manage both lending and investment portfolios.
• Long-term Value Creation: Emphasized sustainable growth and long-term value for shareholders.

Conclusion

The Group faced significant challenges in 2025, including a decline in property values and a shift in consumer behavior, which led to a loss attributable to owners. However, the securities trading segment showed resilience and growth, helping to partially offset the losses. The Group remains focused on prudent risk management, strategic asset management, and adapting to the evolving market conditions to ensure long-term stability and value creation.