The annual results and financial status of Oi Wah Pawnshop Credit Holdings Limited (HKEx stock code: 1319.HK, the “Group” or “Oi Wah”) were disclosed by the board of directors. The Group reported revenue of about HK$165.8 million for the fiscal year that ended on February 28, 2023 (“FY2023”), and profit attributable to shareholders of the Company of approximately HK$86.1 million. Net interest margin increased by 0.6 percentage points to 15.6% throughout the course of the year.

Earnings per share for the year were HK 4.5 cents. The final dividend of HK 0.87 cents is advised by the board of directors.

Mortgage lending industry

About HK$91.5 million in interest income from the mortgage loan business was reported by the Group in FY2023, making up about 55.2% of the Group’s overall revenue. The total outstanding mortgage loans was roughly HK$754.5 million as of 28 February 2023, while the total amount of new mortgage loans granted in FY2023 came to about HK$596.5 million. There were 101 new mortgage loan transactions during the year, with an average loan size of roughly HK$5.9 million.

The Group continued to exercise caution when making loan decisions during FY2023, which was supported by an emphasis on developing a strong loan portfolio in the face of the unpredictable economic climate brought on by the pandemic. We believe that keeping a conservative underwriting approach and a strong loan portfolio will put the Group in a good position for the coming economic recovery and eventual return to normalcy. The first mortgage’s loan-to-value ratio is around 55.2% during FY2023, whereas the subordinary mortgage’s entire loan-to-value ratio was roughly. A subordinary mortgage that the Group participated in had a loan-to-value ratio of 56.2%, or roughly 9.8%.

Pawn Loan Enterprise

Thanks to an active second-hand luxury market, particularly for watches, which has driven relevant refinancing demand, the revenue from the pawn loan business increased by 7.2% to approximately HK$74.3 million in FY2023, and the total amount of pawn loans granted increased by approximately 22.1% to approximately HK$966.3 million. To increase the Group’s brand visibility in FY2023, the Group kept allocating money to advertising and promotion. A demand for one-to-one pawn loan appointment services for loans totaling more than HK$0.1 million has resulted from this initiative. In FY2023, there were 725 transactions for pawn loans with the same amount awarded. Additionally, the typical loan amount grew to around HK$13,600 for each deal.


Looking ahead, the economy is set for a resurgence because to the removal of COVID-19 limitations and the HKSAR government’s “Hello Hong Kong” campaign, which welcomes people from around the world. In the first half of the upcoming fiscal year, the Group intends to take advantage of the economic recovery by opening a new premium service centre at a MTR station. It will set us apart from conventional banks and money lenders by offering customers a discreet and quick alternative financing solution. The Group intends to operate as a pick-up location for consumers by integrating with fintech innovations of a pawn loan app. Through the app, consumers will be able to schedule appointments, receive preliminary collateral evaluations, and complete the entire application process digitally and conveniently. Loan applications and quotations. Our Group is confident that by providing a straightforward, speedy, and effective one-stop loan solution that addresses the demands of high net worth individuals, MTR passengers, and SMEs, we will acquire a crucial competitive edge and a driver of future growth.

The Group is eager to pursue abroad expansion prospects as Hong Kong reestablishes its connection to the rest of the globe, including collaborating with respected foreign funds to expand our syndicated lending operations. The Group has established a solid name and expertise in this market thanks to its more than 45 years of industry experience in pawn loans and alternative financing, as well as its status as the first significant listed pawnbroker in Hong Kong. The Group thinks it can capitalise on this competitive advantage to grow its loan portfolio globally. expand your geographic diversity beyond Hong Kong while accelerating your business. The Group is well situated to act as a financing partner for foreign funds and institutions thanks to Hong Kong’s status as a major international financial centre and its proximity to Mainland China and the rest of Asia.

The pawn loan and mortgage loan businesses of the Group have continued to grow steadily throughout the year, according to Mr. Edward Chan, chairman and chief executive officer of the company. When commercial activity picks up in the future, we’ll work to seize the chance to increase our market share and provide our shareholders more money.

Credit Holdings Oi Wah Pawnshop Limited

Oi Wah offers financial services. 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 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.