K Cash (2483) investor relations material

Executive summary

• H1 2026 interest income rose 16.8% YoY to HK$192.2m and net profit increased 15.5% to HK$51.1m; EPS was HK10.22 cents.

• Growth was led by unsecured property owner loans and PayKool credit card advances; new SME lending ceased due to weak sustainable profitability.

• Loan receivables, expected credit losses and borrowings increased; cash declined to HK$18.1m at 30 June 2026.

Financial highlights

• Net interest income was HK$172.2m versus HK$146.0m; operating profit was HK$61.6m versus HK$52.6m.

• Profit before tax was HK$61.2m versus HK$51.9m; net profit was HK$51.1m versus HK$44.2m, and income tax expense was HK$10.1m versus HK$7.6m.

• Interest expenses were HK$20.0m versus HK$18.5m; total comprehensive income was HK$51.1m versus HK$44.3m.

• Selling expenses rose to HK$28.2m from HK$14.9m, driven by PayKool promotion; G&A fell to HK$33.9m from HK$37.5m, mainly on lower technology costs.

• Total assets were HK$1,661.1m versus HK$1,564.5m at 31 December 2025; net assets were HK$967.6m versus HK$955.5m.

Outlook and guidance

• Continued demand for unsecured loans is anticipated amid low unemployment, stabilizing residential property prices, improving consumer sentiment and digital lending adoption in Hong Kong.

• Credit cards are expected to contribute significantly to expansion; AI and data analytics are planned for personalization and stronger credit assessment.

• H2 priorities include loyalty and engagement platforms, BNPL integration, systems and infrastructure investment, data security and customer privacy.

• Plans include exploring funding sources and strategic partnerships to support loan growth and diversify the capital base, balanced with prudent risk management.