Friday, March 29, 2024
 
Columnist
Martin Hennecke
 
AEON CREDIT
HKEx Stock Code : 00900 
 
Corporate Profile
The Group is engaged in the consumer finance business, which includes the issuance of credit cards and the provision of personal loan financing and hire purchase financing for vehicles and household and other consumer products, insurance broking and agency business and micro-finance business.

Business Review - For the year ended February 20, 2013

On credit card business, the Group had executed a series of marketing activities to enhance the competitiveness of its portfolio. Synergies between the Group and its partners allowed the formation of opportunities in niche markets in addition to the widening of its general customer base.

The AEON 25th Anniversary promotion, Macau Ferry Ticket Spending promotion, Ocean Park Joyful Event, and Everybody Wins Lucky Draw promotion all received overwhelming response from customers. In addition, the Group organised year-round campaigns with its co-brand partners to stimulate card usage and drive card acquisition. To further expand market share, the Group had launched one premium co-branded card, the Ajisen Titanium MasterCard. The new card not only attracted new customers but also opened up a new revenue stream opportunity for the Group.

To extend service coverage and better serve our customers, the Group opened four new branches over the course of the year. They are Sheung Shui Branch, Kowloon City Branch, Aberdeen Branch and New Tuen Mun Branch. Instant credit card issuance service has also been extended to 11 branches to allow customers to enjoy shopping immediately. For web and online service, four branches are now equipped with WiFi to facilitate Netmember registration and to encourage the migration to web-based services such as e-statement, bill payment and card and loan application through Internet.

During the year under review, the Group's insurance business subsidiary AEON Insurance Brokers (HK) Limited (ˇ§AEON Brokersˇ¨) continued to expand its customer base by introducing company insurance to corporate clients and business partners. In addition, it also focused on promoting high premium savings products and medical insurance to our customers.

Road-shows and seminars were organized to promote various products such as general insurance, life insurance and MPF schemes.

Moving on to China business, AEON Information Service (Shenzhen) Co., Ltd. (ˇ§AISˇ¨) continues to extend its back office services to new clients in the Mainland and act as the processing agent for the AEON Card operations in China. Moreover, AIS is also engaged in the insurance agency business.

The micro-finance subsidiary in Shenyang has successfully lined up with well-known merchants to expand its sales channels. Moreover, it has also expanded its product lines to cover agricultural machinery financing in addition to consumer goods financing.

In the second half of 2012, the Group set up a micro-finance subsidiary in Tianjin. This subsidiary will follow the business model of Shenyang and expand into other market sectors to capture the growth potential in the consumer finance market.

Business Outlook - For the year ended February 20, 2013

With the vibrant Mainland economy and the stabilization of the Euro debt crisis, global economy has regained momentum in late 2012. Additionally, the Mainland economy has resumed faster growth and would render a stabilizing force to intra-regional trade flows. Therefore, the global economy will likely see another year of modest growth.

Going forward, the Group will continue to expand its credit card portfolio to broaden its business base while exploring alternative revenue streams. The Group will expand its acquiring business to increase revenue. To cope with the trend of rising online shopping among Hong Kong customers, the Group will continue the enhancement and expansion of its online shopping site, the e-Mall, where customers can shop while on the move, or at the comfort of their homes. Special incentives and online events will be arranged to attract Netmembers and promote the routine visits to the Group's online portals. The Group is in the process of developing a secure online payment tool for customers to enjoy online shopping. At the same time, the Group is also developing a brand new product which allows its cardholders to effect card cashing through smartphone and computer.

In order to provide convenient and efficient service, the Group will continue to extend its service coverage by setting up new branches in strategic locations. The Group's extensive ATM network is undergoing a major upgrade and is expected to be completed within this year. The new ATMs not only provide a higher level of security, but also reward customers with a host of value added services and an overall enriched user experience.

For China business, the Group will expand its micro-finance business to Shenzhen. Riding on the Group's experience in South China, the newly set up micro-finance subsidiary in Shenzhen is expected to build its customer base quickly and offer different types of services to its customers. The Group will concentrate its efforts on the existing micro-finance operations in Shenyang, Tianjin and Shenzhen to widen its merchant network and offer innovative products so as to tap into the fast growing consumer finance market in the Mainland.

Source: Aeon Credit Service (00900) Annual Results Announcement
Chairman Masanori Kosaka Issued Capital (shares) 419M
Par Value HKD 0.1 Market Capitalisation (HKD) 3,040M
 
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