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Public company info - Global International Credit Group Limited , 01669.HK
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Global International Credit Group Limited, 01669.HK - Company Profile
Chairman Wang Yao
Share Issued (share) 400,000,000
Par Currency Hong Kong Dollar
Par Value 0.01
Industry Other Financials
Corporate Profile Business Summary: The Group is principally engaged in money lending business of providing property mortgage loans and personal loans in Hong Kong. Performance for the year: For FY2019, the Group’s interest income from its money lending business was HK$121.7 million, representing a decrease of HK$2.6 million or 2.1% from interest income of HK$124.3 million for FY2018. The Group’s profit and total comprehensive income for FY2019 was HK$62.5 million, representing a decrease of HK$5.9 million or 8.6% from profit and total comprehensive income of HK$68.4 million for FY2018. Business Review: The Group is principally engaged in the money lending business focusing primarily on providing short-term and long-term property mortgage loans in Hong Kong under the Money Lenders Ordinance (Chapter 163 of the Laws of Hong Kong). During the year ended 31 December 2019 (“FY2019”), the overall economy and property market in Hong Kong were surrounded by various downside factors as firstly impacted by the Sino-US trade disputes and further disrupted by the local political tensions which started from June 2019. The gross domestic product of Hong Kong has recorded a contraction of 1.2% in 2019 as a whole, being the first annual decline since 2009. Meanwhile, the property market in Hong Kong, after a relatively strong start in 2019, has started a downward correction in the second half of 2019. The unfavourable investment sentiment in the local property market and other sectors has triggered a decrease in demand on mortgage financing. With a view that the overall economy and property market is deteriorating, the Group continued to reinforce its risk management policy by implementing stricter loan approval guidelines and increasing its efforts in recovering loans from high risk customers. The Group’s gross loans receivable thus showed a decline from HK$992.2 million as at 31 December 2018 to HK$948.7 million as at 31 December 2019 and interest income decreased slightly by HK$2.6 million or 2.1% from HK$124.3 million for the year ended 31 December 2018 (“FY2018”) to HK$121.7 million for FY2019. In assessing the expected credit losses of its loans receivable and interest receivables as at 31 December 2019, the Group has taken into account the change in overall economic environment and factoring forward-looking scenarios on the impact of persistent social unrests and a possible further downturn of the property market and the economy. As a result, the Group recorded a loss on change in expected credit losses of HK$1.4 million for FY2019. Although the overall market sentiment and the Group’s strategy has limited the growth of the Group’s loan portfolio, the Group managed to achieve steady results with a higher average month-end balance of loans receivable and the pursuance of cost control measures. The Group recorded a profit attributable to owners of the Company of HK$62.5 million in FY2019, representing a decline of HK$5.9 million or 8.6% from HK$68.4 million in FY2018. Such decline was primarily due to a one-off gain recognized in FY2018 from the recovery of a previously impaired loan and interest receivable as a result of a favourable judgement given by the High Court of Hong Kong concerning the validity of a mortgage provided to the Group. Prospects: After recording the first annual recession in a decade, the outlook of Hong Kong economy and property market in 2020 remains highly challenging. While the US and Chinese government has reached the long-awaited first stage trade deal, the unresolved social unrests and the outbreak of Coronavirus Disease 2019 (“COVID-19”) are expected to place tremendous pressure to multiple sectors. Since the outbreak of COVID-19 began in China in early 2020, this highly infectious virus has spread across the world and has developed into a global pandemic. The virus is expected to deliver a considerable hit to the global economy. Hong Kong’s economy is expected to be severely affected, given a catastrophic drop in tourism, retail market and other business spending, there is an increasing risk of higher unemployment rates. Property price in Hong Kong may face increasing pressure to a downward adjustment. Depending on how the situation develops, it is expected that the Group’s new loan transactions may decrease in the short term and any associated economic slowdown and further drop in property prices may negatively impact the Group’s expected credit losses. With these challenges ahead, the Group will remain cautious and sensibly uphold its risk management policy and credit review process to control the quality of the Group’s loan portfolio. The Group will focus its efforts in recovering loans with high loan-to-value ratios and will closely monitor the development of the property market to implement necessary timely measures. The Group will also strengthen its capital management and implement stringent cost control measures to uphold its profitability during the downturn of economy. Although the Group does not have any detailed plans for material investments, capital assets or launching new products in a large scale currently, it will continue to improve its existing products and services to enhance customer experience.

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