Hong Kong-listed Zero Fintech Group Limited (Zero Fintech, 00093) reported a sharp improvement in first-half earnings for the six months ended 30 June 2026, underpinned by robust expansion of its money-lending operations.
Revenue and Earnings • Group revenue rose 48.5% year on year to HK$236.62 million (1H 2025: HK$159.34 million). • Profit attributable to shareholders surged 204.5% to HK$57.52 million (1H 2025: HK$18.89 million). • Basic and diluted EPS increased to 2.16 HK cents from 0.71 HK cents. • Operating profit nearly tripled to HK$90.71 million, lifting the net margin to 24.3% from 11.9% a year earlier. • The board declared no interim dividend.
Segment Performance Money Lending: – Revenue advanced 48.8% to HK$231.45 million, accounting for 97.8% of group turnover. – Segment profit reached HK$76.01 million, up 153% on strong loan growth. – Active unsecured-loan customers increased to 21,512 (31 Dec 2025: 19,935); unsecured-loan revenue totalled HK$204.31 million. – Weighted-average interest rate on unsecured loans stood at 38% per annum; mortgage loans averaged 23%. – Gross loan and interest receivables expanded to HK$1.35 billion, with a 9.81% impairment allowance of HK$132.85 million.
Property Development & Investment: – Revenue was modest at HK$0.71 million (-5.7% YoY) as no residential units were sold at Ever Success Plaza, leaving 56 units unsold. – Segment posted a HK$1.74 million loss.
Other income streams, mainly IT service fees, contributed HK$4.46 million (1H 2025: HK$3.09 million).
Cost Dynamics • Net impairment charges on loan and interest receivables remained elevated at HK$64.02 million, though down 4.7% YoY. • Advertising and promotion expenses more than doubled to HK$32.96 million, reflecting intensive marketing for the “X Wallet” digital lending platform. • Finance costs climbed to HK$20.44 million (1H 2025: HK$8.93 million) as average borrowing rates reached 6.5% and bank debt increased.
Balance-Sheet Metrics • Total assets expanded to HK$1.88 billion (31 Dec 2025: HK$1.74 billion). • Cash and cash equivalents rose to HK$252.23 million from HK$182.54 million. • Bank borrowing grew to HK$541.60 million, secured by HK$749.17 million of loan receivables; net gearing stood at approximately 28%, while total liabilities/equity was 0.58x. • Net asset value amounted to HK$1.19 billion.
Strategic Developments & Outlook Zero Fintech continues to reposition from a pure lender to a broader fintech services platform, leveraging its AI-driven “X Wallet” to offer revolving and instalment loans with automated credit scoring. A new branding campaign featuring ambassador Edison Chen aims to strengthen market visibility amid heightened competition. Management signalled cautious growth in mortgage lending, emphasising stringent credit assessment while monitoring Hong Kong’s macro and property-market conditions. In July 2026, subsidiary X8 Finance extended a HK$45.00 million nine-month secured loan, underscoring the ongoing expansion of the mortgage portfolio.
With adequate liquidity, no material capex commitments, and a focus on technology-enabled lending, Zero Fintech targets continued revenue growth against a backdrop of rising finance costs and persistent impairment pressures.
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