Results Highlights

- Revenue rose by 4.3% to HK$897.1 million, driven by sustained sales and receivables growth
- Profit after tax increased by 37.1% to HK$233.6 million, with a 12.7% decrease in impairment losses and impairment allowances
- Cost-to-income ratio improved to 43.8% from 47.0%
- Declared interim dividend of 25.0 HK cents per share, representing payout ratio of 44.8%

HONG KONG, Sep 30, 2025 - (ACN Newswire) – AEON Credit Service (Asia) Company Limited ("AEON Credit" or the "Group"; Stock Code: 00900) today announced its unaudited interim results for the six months ended 31st August 2025 ("1HFY2025/26" or the "Reporting Period").

Despite persisted headwinds in the Hong Kong economy, the Group achieved a 4.3% increase in revenue year-on-year to HK$897.1 million during the Reporting Period, demonstrating the resilience of its core operations and the effectiveness of measures implemented to sustain sales and receivables growth. As the Group continued to enhance its operational efficiency, its cost-to-income ratio improved to 43.8% from 47.0% for the six months ended 31st August 2024 ("1HFY2024/25" or the "Previous Period"), and its operating profit before impairment losses and impairment allowances rose 11.7% to HK$475.6 million. With a decrease in impairment losses and impairment allowances of 12.7%, the Group’s profit after tax increased by 37.1% to HK$233.6 million (1HFY2024/25: HK$170.4 million).

The Board has resolved to declare an interim dividend of 25.0 HK cents per share (1HFY2024/25: 24.0 HK cents per share), representing a dividend payout ratio of 44.8%.

In response to the challenging economic environment, the Group adopted a more conservative approach to sales and receivables growth, prioritising maximizing returns from its credit card and personal loan portfolios while mitigating credit risk. Overall sales increased 4.4% in 1HFY2025/26 compared with the Previous Period, driven by growth in credit card sales, which offset the decline in personal loan sales resulting from prudent credit assessment. Gross advances and receivables continued an upward trajectory, increasing 2.7% from 28th February 2025 to 31st August 2025. To address the prevailing high credit default rates in Hong Kong consumer finance market, the Group has implemented robust credit monitoring measures to improve customers’ payment performance and mitigate deterioration in asset quality. Consequently, the percentage of impaired credit (i.e., stage 2 and stage 3 receivables) to gross advances and receivables decreased from 4.2% as of 28th February 2025 to 4.0% as of 31st August 2025.

The Group’s marketing strategy effectively reduced advertising costs while maintaining marketing effectiveness and optimising resource allocation. Meanwhile, the launch of Green Personal Loan products further reinforced the Group’s commitment to environmental, social, and governance (ESG) principles. Leveraging the AEON Ecosystem, the Group also capitalised on group synergy through initiatives such as the AEON JCB credit card revamp programme. In information technology, the Group has completed the IP Contact Center (IPCC) project to enhance its call center operations, with ongoing evaluations planned for further efficiency improvements.

Looking ahead to the second half of FY2025/26, the Group will focus on sustaining sales and receivables growth, particularly through domestic and online transactions, while refining credit assessment and monitoring processes to ensure a sustainable and high-quality asset portfolio. Marketing strategies will emphasise targeted campaigns, mass promotions, and leveraging incentives to expand market share, particularly among younger demographics. The Group will also pursue revenue diversification by increasing fee-generating transactions and expanding its insurance intermediary businesses.

To enhance operational efficiency, the Group plans to accelerate the implementation of Artificial Intelligence tools into back-office operations automating routine tasks such as data processing and credit risk analysis to reduce operational costs and improve accuracy. Credit assessment and portfolio management will be enhanced through an upgraded risk-based methodology designed to identify high-quality customers for additional credit. Advanced models are expected to improve fraud detection and predictive analytics for credit assessments, enabling faster decision-making and optimised resource allocation.

Within the AEON Ecosystem, the Group has commenced One AEON project to create an integrated bonus point platform for reward accumulation and redemption. The platform will enable seamless management of rewards earned from AEON Cards and prospective partner merchants, notably AEON Stores (Hong Kong) Limited ("AEON Stores"), via the “AEON HK” and partner merchant’s mobile app, enhancing customers convenience and flexibility, and fostering greater engagement and loyalty across both credit and retail services.

Mr. Wei Aiguo, Managing Director of AEON Credit, said, "Our robust results in 1HFY2025/26 underscore our resilience and effective execution of strategic initiatives against a challenging market environment. As we celebrate our 35th anniversary, we continue to be guided by the AEON Vision Statement and the Three Principles of the AEON Group: ‘moving forward hand in hand’, ‘transcending the boundaries between groups and companies’, and ‘building multifaceted connections and creating a future full of smiles together.’ Bolstered by a solid financial foundation and ongoing digital transformation, we are well positioned to capitalise on opportunities in the credit finance market. We will continue to drive business growth in the second half of the year by delivering innovative and customer-centric credit services.”

About AEON Credit Service (Asia) Company Limited (Stock Code: 00900)

AEON Credit Service (Asia) Company Limited, a subsidiary of AEON Financial Service Co., Ltd. (TSE: 8570) and a member of the AEON Group, was set up in 1987 and listed on the Main Board of The Stock Exchange of Hong Kong Limited in 1995. The Group is principally engaged in the finance business, which includes the issuance of credit cards, personal loan financing, card payment processing services and insurance intermediary business in Hong Kong, and microfinance business in Mainland China.

For more information, please visit the company’s website at www.aeon.com.hk.

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