Group 1 - The Hong Kong government has published the "10th Technical Memorandum" to further reduce the emission limits for power plants starting from 2030, with specific annual limits set for sulfur dioxide (2,302 tons), nitrogen oxides (8,350 tons), and particulate matter (317 tons), representing a tightening of 19%, 25%, and 14% respectively compared to the previous limits in the "9th Technical Memorandum" [1] - The Environmental and Ecology Bureau of Hong Kong has considered local electricity demand, the progress of gas-fired power generation by two power companies, and the expected supply of nuclear and renewable energy when determining the new emission limits [1] - Hong Kong Electric Company is constructing a new gas-fired power plant expected to be operational by 2029, which will replace an existing coal-fired plant [1] Group 2 - The air quality in Hong Kong has improved significantly, with concentrations of sulfur dioxide, nitrogen dioxide, and particulate matter decreasing by approximately 45% to 88% from 2004 levels, and low visibility hours reduced by about 82% [2] - In 2022, the power sector accounted for 61%, 27%, and 13% of the total emissions of sulfur dioxide, nitrogen oxides, and particulate matter in Hong Kong, respectively, indicating the importance of tightening emission limits to further improve air quality in Hong Kong and the Pearl River Delta region [2]

Core Insights - The Hong Kong 300 Local Stock Index has shown significant growth, with a 13.71% increase over the past month, 13.91% over the past three months, and a year-to-date increase of 15.07% [1][2] Group 1: Index Performance - The Hong Kong 300 Local Stock Index closed at 1419.53 points, reflecting a 0.21% increase in the Shanghai Composite Index [1] - The index is designed to represent the performance of mainland and local Hong Kong companies, with a base date of December 31, 2004, set at 1000.0 points [1] Group 2: Index Composition - The top ten holdings of the Hong Kong 300 Local Stock Index include AIA Group (28.45%), Hong Kong Exchanges and Clearing (18.89%), and Bank of China (Hong Kong) (5.56%) [1] - The index is fully composed of stocks listed on the Hong Kong Stock Exchange [2] Group 3: Sector Allocation - The sector distribution within the index shows that financials account for 56.14%, real estate for 17.36%, and utilities for 13.00% [2] - Other sectors include communication services (6.33%), consumer staples (2.95%), and industrials (1.65%) [2] Group 4: Index Adjustment Mechanism - The index samples are adjusted biannually, with changes implemented on the next trading day following the second Friday of June and December [2] - In special circumstances, the index may undergo temporary adjustments, particularly in cases of delisting or corporate actions such as mergers [2]

Customer Base and Operations - The company serves approximately 20.1 million residential and commercial customers globally, providing clean, reliable, and affordable energy[6]. - The total length of the power supply network is 390,000 kilometers, while the gas and oil pipeline network spans 119,100 kilometers[15]. - UK Power Networks (UKPN) serves 8.5 million residential and commercial customers, covering over 29,000 square kilometers and accounting for about 28% of the UK's total distribution capacity[58]. - The company continues to see stable growth in its UK operations, serving up to 14 million residential and commercial customers[56]. Financial Performance - Shareholders' profit for 2024 reached HKD 6,119 million, representing an increase from HKD 6,003 million in 2023, marking a growth of approximately 1.93%[15]. - Earnings per share for 2024 was HKD 2.87, up from HKD 2.82 in 2023, reflecting a growth of 1.77%[15]. - The total equity amounted to HKD 87,076 million, a slight decrease from HKD 88,752 million in the previous year[15]. - The company reported a net profit of HKD 6.19 billion for the year ending December 31, 2024, representing a 2% increase from HKD 6.03 billion in 2023[27]. - The board proposed a final dividend of HKD 2.04 per share, maintaining the total annual dividend at HKD 2.82 per share, consistent with the previous year[28]. Investments and Acquisitions - The company is actively investing in innovative technologies to accelerate the transition to green energy, aligning with global carbon neutrality goals[7]. - The company is focused on strategic acquisitions and new development projects to ensure sustainable long-term growth[7]. - The company completed multiple acquisitions, including Phoenix Energy and UK Renewables Energy, enhancing its business portfolio and providing immediate cash flow and stable income[29]. - The company is actively expanding non-regulated projects to create additional cash flow and returns[32]. - The company is focusing on acquiring quality assets in mature energy markets, particularly those that meet sustainability objectives[38]. Renewable Energy and Sustainability - The company aims to achieve net-zero carbon emissions by 2050 as part of its climate action plan[50]. - The company is actively investing in clean hydrogen and biomethane projects in the UK and Australia, enhancing operational flexibility to accommodate renewable energy supply[37]. - The company plans to continue exploring new investment opportunities in the green sector, aligning with global decarbonization goals[37]. - The company is expanding its renewable energy portfolio, including the acquisition of a 20% stake in 32 onshore wind farms in the UK[53]. - The renewable energy generated from the wind farms avoided approximately 88,000 tons of carbon emissions[140]. Operational Efficiency and Reliability - The company maintains a power supply reliability rate exceeding 99.9999% in 2024, reflecting world-class standards[36]. - UKPN's electricity supply reliability reached 99.99% in the 2023/24 fiscal year, with London’s network being the most reliable in the UK[66]. - The company is modernizing its power grid and digitalizing operations to meet the increasing demand for electric vehicle charging and distributed renewable energy[42]. Governance and Management - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange's listing rules throughout the fiscal year ending December 31, 2024[176]. - The board consists of 12 directors, including 4 executive directors, 3 non-executive directors, and 5 independent non-executive directors[181]. - The company emphasizes a commitment to sustainable development and has outlined its policies on its website[177]. - The board's performance evaluation was conducted annually, with results reviewed in March 2025 for the fiscal year 2024[187]. - The company provides ongoing professional development training for directors to keep them updated on regulatory changes and their responsibilities[199]. Diversity and Inclusion - The board currently has one female independent non-executive director, and there are no specific targets or timelines set for further increasing gender diversity in board appointments[191]. - As of December 31, 2024, the gender distribution among employees is 67% male and 33% female, with a commitment to improving the representation of women at all levels[192]. - The company is committed to creating a diverse and inclusive work environment, although it currently does not set specific gender diversity targets for all employees[192].

智通财经APP获悉，摩根大通发布研报称，随着美国十年期国库券收益率达到约4%，并且该行的美国 经济学家预计未来可能有150个基点的降息，该行建议在当前水平吸纳长江基建集团(01038)和电能实业 (00006)。该两股份本年至今表现较指数和同行分别落后28%和17%。该行认为，这种低迷表现可能在第 二季度逆转。 该行看到三个买入理由：(1)对关税和地缘政治紧张局势的担忧可能导致资金流向防守型股票，而长江 基建和电能实业是该行覆盖的香港公用事业股票中最便宜的，收益率约5.5%至5.9%，相较于同行的约 5%;(2)宏观环境利好这两家公司，美国10年期收益率年至今下降50个基点，美元(美汇指数本年至今累 跌5%)，降息以及可能的监管重置利好。2024年下半年疲软的业绩部分由11月和12月的美元强势推动， 这种情况可能在2025年上半年逆转;(3)当前估值较该行的估计显示其监管资产价值(RAV)有约20%的折 让，比历史平均水平低约10个百分点。这与基本面不符，因为该行预测2022年至2026年间RAV将至少增 长25%，且下一次监管重置的回报率可能趋于上升。 该行的美国经济学家预测今年将降息150个基点，美国10 ...

190亿还没到账，李嘉诚吃下苦果：官方喊话5次后，损失快近千亿 商人在商言商看起来似乎没有错，但是一个人在拥有商人的身份之前，他首先应该是一个中国人，其所谓的"商业行为"如果损害了国家的利益，那虽然他可 能会短期内收获一点蝇头小利，但是最终一定是会"捡了芝麻丢了西瓜"。李嘉诚及其近期的一系列"抽象"操作，就是一个很好的例子，在官方连续五次对李 嘉诚及其麾下企业进行喊话之后，市场的反应已经让李嘉诚吃了大亏。 总的来看，就在大家十分关注的抛售巴拿马港口事件发酵后，仅仅长和、长江基建集团、电能实业、长实集团这四家公司市值蒸发超过781亿港元。 中方作为巴拿马运河的重要用户，若是巴拿马运河区港口设施全部落入美国手中，那么这对中方的海外贸易乃至整个中方的经济都会带来极大的不确定性。 再进一步考虑，若是美国将掌控巴拿马运河区的"成功经验"复制粘贴，那么美国很有可能能够借此一步步控制全球商贸要道，这对中方这个世界第一贸易大 国而言，并不是什么好消息。因此，李嘉诚此举可谓是"牵一发而动全身"，确实需要三思而后"不行"。 因此在这种情况下，在交易还未完成，190亿美元的巨额资金还未到账的情况下。中方官方层面，包括国务院港澳办、 ...

Financial Performance - The net profit for the year ended December 31, 2024, was HKD 6.19 billion, a 2% increase from HKD 6.03 billion in 2023[3]. - The company's profit attributable to shareholders for the year ended December 31, 2024, was HKD 6,119 million, an increase from HKD 6,003 million in 2023, representing a growth of 1.93%[32]. - Total comprehensive income attributable to shareholders for the year was HKD 4,334 million, down from HKD 7,904 million in 2023, indicating a decrease of 45.56%[32]. - The group reported a basic and diluted earnings per share of HKD 2.87 for 2024, compared to HKD 2.82 in 2023, showing a modest increase[30]. - The company reported a pre-tax profit of 6,119 million for 2024, down from 6,003 million in 2023, reflecting a decrease of approximately 1.9%[49]. - Operating profit for the year was 666 million, compared to 1,131 million in 2023, reflecting a decrease of about 41%[45]. - Interest income decreased to 863 million in 2024 from 1,223 million in 2023, a decline of approximately 29%[45]. - The share of profits from joint ventures and associates increased to 6,352 million in 2024 from 6,252 million in 2023, an increase of about 1.6%[45]. Dividends - The board proposed a final dividend of HKD 2.04 per share, maintaining the total annual dividend at HKD 2.82 per share, consistent with the previous year[4]. - The proposed final dividend per ordinary share is HKD 2.04, consistent with the previous year's dividend of HKD 2.04, totaling HKD 6,010 million for the year[57]. - The annual general meeting is scheduled for May 21, 2025, with a record date for the proposed final dividend on May 27, 2025[63]. Business Contributions - The UK business contributed a total profit of HKD 3.99 billion in 2024, up from HKD 2.79 billion in 2023, driven by new acquisitions[8]. - The Australian business contributed HKD 1.43 billion in profit, slightly down from HKD 1.43 billion in 2023[9]. - HK Electric Investments recorded a profit contribution of HKD 1.038 billion in 2024, compared to HKD 1.053 billion in 2023[16]. Financial Position - The company's net debt to total capital ratio stands at a strong 44%, reflecting a solid financial foundation[7]. - The net debt to total capital ratio was 44% as of December 31, 2024, slightly up from 43% at the end of 2023[23]. - The group maintains a strong financial position with a total unutilized credit facility of HKD 1 billion as of December 31, 2024[22]. - The group's net cash level as of December 31, 2024, was HKD 228 million, down from HKD 1,140 million in 2023, indicating a significant decrease in liquidity[23]. Asset and Liability Changes - The company's non-current assets totaled HKD 90,589 million as of December 31, 2024, compared to HKD 91,343 million in 2023, reflecting a decline of 0.82%[34]. - Current assets decreased to HKD 3,488 million in 2024 from HKD 4,359 million in 2023, a reduction of 19.97%[34]. - Current liabilities increased to HKD 4,077 million in 2024 from HKD 3,249 million in 2023, marking an increase of 25.49%[34]. - The company's net assets stood at HKD 87,076 million as of December 31, 2024, slightly down from HKD 88,752 million in 2023, a decrease of 1.89%[34]. - Total assets as of December 31, 2024, amounted to 94,077 million, compared to 95,702 million in 2023, indicating a decrease of approximately 1.7%[42]. - Total liabilities for the year were reported at 7,001 million, a slight increase from 6,950 million in 2023, representing an increase of about 0.7%[42]. - The company's total liabilities decreased to HKD 2,924 million in 2024 from HKD 3,701 million in 2023, a reduction of 20.92%[34]. Operational Highlights - The operational reliability of HK Electric exceeded 99.9999% in 2024, maintaining world-class standards[16]. - The company is actively transitioning to gas-fired power generation, with gas generation now accounting for approximately 70% of total generation capacity[16]. - The company aims to retire coal-fired generation units by 2035, aligning with government carbon reduction targets[16]. - The group continues to focus on clean hydrogen and biomethane projects in its gas networks in the UK and Australia[17]. Employee Compensation - The total employee compensation, excluding directors' remuneration, reached HKD 28 million in 2024, up from HKD 27 million in 2023[28]. - Employee compensation increased slightly to 33 million in 2024 from 32 million in 2023, reflecting a growth of about 3.1%[47]. Other Financial Metrics - The company's other income decreased to 207 million in 2024 from 296 million in 2023, a decline of approximately 30%[46]. - Accounts payable measured at amortized cost increased to HKD 3,967 million in 2024 from HKD 2,896 million in 2023, representing a growth of approximately 37%[56]. - The company has no unsecured and indemnity guarantees as of December 31, 2024, compared to HKD 14.2 million in 2023[27]. - The company reported a significant foreign exchange loss of HKD 2,724 million related to operations outside Hong Kong, compared to a gain of HKD 2,446 million in 2023[32]. - The company’s cash and cash equivalents were HKD 2,733 million in 2024, down from HKD 4,201 million in 2023, a decrease of 35.00%[34]. Corporate Governance - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange rules throughout the fiscal year ending December 31, 2024[61]. - No repurchase, sale, or redemption of the company's listed securities occurred during the year[60].

Group 1 - ZTE Corporation's stock reached a new high, hitting the daily limit on December 19, with a market capitalization exceeding 150 billion yuan [1] - The stock saw a significant increase starting from December 17, with a maximum gain of nearly 20% over three trading days [1] - ZTE is a major contributor to global 5G technology research and has diversified into several cutting-edge technology fields, including chips, operating systems, and digital energy [1] Group 2 - The company achieved a milestone by launching the world's first large-scale commercial 400G all-optical inter-provincial backbone network, connecting eight national computing hubs [2] - ZTE continues to innovate with several industry-first products, including the 5G+AI 3D tablet and various flagship smartphones [2] - There were rumors of a potential collaboration with ByteDance regarding the integration of AI models into ZTE's mobile devices, but the claims were denied by ByteDance [2][3] Group 3 - The telecommunications sector is experiencing strong interest from institutions, with a focus on the growth of gigabit services supported by clear policy expectations [5] - The telecommunications index showed a robust performance, rising over 3.2%, with several companies in the sector hitting their daily limits [6] - The AI industry is expected to accelerate in the domestic market, with significant growth anticipated in edge models and computing power [7]

Investment Rating - The report maintains an "Outperform" rating for Power Assets Holdings [3][12]. Core Views - The performance in the first half of 2024 was in line with expectations, with a profit of HK$3.006 billion, a year-on-year increase of 2% [9][12]. - The UK segment showed strong growth, with profits of HK$1.55 billion, up 10.87% year-on-year, primarily due to lower financing costs from inflation-linked debts [10][11]. - The company plans to distribute a dividend of HK$0.78 per share, unchanged from the previous year [9][12]. Financial Performance - Revenue for 2024 is projected to be HK$1.371 billion, with a net profit forecast of HK$6.176 billion [4][12]. - The diluted EPS is expected to increase from HK$2.82 in 2023 to HK$2.90 in 2024 [4][8]. - The company’s gross margin remains stable at 100% across the forecast period [8]. Business Segments - The UK segment's profitability is attributed to companies like UK Power Network and Northern Gas Networks benefiting from reduced financing costs [10]. - The Australian segment reported a profit of HK$601 million, a year-on-year increase of 7.7% [10]. - The Canadian segment experienced a significant decline in revenue due to falling electricity prices [10][11]. Mergers and Acquisitions - The company has expanded its business segments through multiple mergers and acquisitions, including the acquisition of Phoenix Energy in Northern Ireland for HK$7.4 billion [11][12]. - UKPN acquired a 69MW solar power station, and the company plans to jointly acquire 32 wind farm assets in the UK with an estimated investment of HK$3.5 billion [11][12]. Valuation and Target Price - The target price is updated to HK$52.04, corresponding to a 16 times PE ratio for 2024 [12].

Financial Performance - Net profit attributable to shareholders for the first six months of 2024 was HKD 3,006 million, a 2% increase compared to HKD 2,959 million in the same period of 2023[1] - Earnings per share for the first six months of 2024 were HKD 1.41, compared to HKD 1.39 in the same period of 2023[1] - The company reported a profit attributable to shareholders of HKD 3.006 billion for the first six months of 2024, compared to HKD 2.959 billion in the same period in 2023[26] - Basic and diluted earnings per share for the first six months of 2024 were HKD 1.41, up from HKD 1.39 in the same period in 2023[26] - The company's profit attributable to shareholders for the first half of 2024 was HK$3,006 million, a slight increase from HK$2,959 million in the same period last year[27] - Total comprehensive income attributable to shareholders for the first half of 2024 was HK$2,159 million, a significant decrease from HK$5,783 million in the same period last year[27] - Profit before tax for the group increased to HKD 3,134 million in 2024 from HKD 3,061 million in 2023, driven by higher contributions from joint ventures and associates[34] - Earnings per share (EPS) rose to HKD 1.44 in 2024 from HKD 1.39 in 2023, based on a net profit of HKD 3,060 million and 2,131,105,154 shares outstanding[38] - Pre-tax profit for the first half of 2024 was HKD 3,134 million, up from HKD 3,061 million in the same period of 2023[42] Dividends and Shareholder Returns - The interim dividend per share remains unchanged at HKD 0.78, to be paid on September 24, 2024[9] - The company declared an interim dividend of HKD 0.78 per share, totaling HKD 1,662 million for the six months ended June 30, 2024[50] - The company paid dividends of HK$4,348 million to shareholders in the first half of 2024, consistent with the amount paid in the same period last year[30] - The company declared an interim dividend of HKD 0.78 per share for 2024, payable on September 24, 2024[76] Debt and Financial Position - The company's net debt to total capital ratio is 2%, with a net debt to total capital ratio of 45% on a pro-rata basis for international investment portfolio[11] - The company's unsecured bank loans totaled HKD 2.863 billion as of June 30, 2024, a decrease from HKD 3.097 billion as of December 31, 2023[21] - The company's bank deposits and cash stood at HKD 1.48 billion as of June 30, 2024, down from HKD 4.201 billion as of December 31, 2023[21] - The company's net debt position was HKD 1.383 billion as of June 30, 2024, compared to a net cash position of HKD 1.104 billion as of December 31, 2023[22] - The company's net debt to total capital ratio was 2% as of June 30, 2024, compared to no net debt as of December 31, 2023[22] - The company's net assets as of June 30, 2024, were HK$86,563 million, down from HK$88,752 million at the end of 2023[28] - The company's total assets less current liabilities were HK$89,917 million as of June 30, 2024, down from HK$92,453 million at the end of 2023[28] - The company's non-current assets increased slightly to HK$91,558 million as of June 30, 2024, compared to HK$91,343 million at the end of 2023[28] - The company's current liabilities exceeded current assets by HK$1,641 million as of June 30, 2024, compared to a net current asset position of HK$1,110 million at the end of 2023[28] - Bank deposits and cash decreased to HKD 1,480 million as of June 30, 2024, from HKD 4,201 million at the end of 2023[41] Investments and Acquisitions - The company completed the acquisition of two UK low-carbon energy businesses, including a 20% stake in Phoenix Energy and the acquisition of UU Solar through UKPN[10] - The company, along with Cheung Kong Infrastructure and Cheung Kong Holdings, formed a consortium to acquire a UK onshore wind asset portfolio for approximately £350 million (HKD 3.5 billion), marking the company's third acquisition in 2024[18] - The acquired wind asset portfolio includes 32 wind farms across England, Scotland, and Wales, with a total installed capacity of 175 MW and a net equity capacity of 137 MW[18] - The company, along with Cheung Kong Infrastructure Holdings Limited and Cheung Kong (Holdings) Limited, agreed to acquire a UK onshore wind portfolio for approximately GBP 350 million (approximately HKD 3.5 billion). The portfolio includes 32 wind farms with a total installed capacity of 175 MW and a net equity installed capacity of 137 MW[54] Renewable Energy and Sustainability - The company's renewable energy portfolio in the UK includes 70 projects, with 90% of revenue coming from long-term contracts and government renewable energy subsidies[10] - Australian Gas Networks is progressing with the HyP Murray Valley hydrogen project, aiming to blend 10% hydrogen into the gas network for 40,000 homes and businesses[13] - NGN's HyDeploy22 project in the UK is supplying hydrogen-blended gas to 668 customers, supporting the net-zero transition[17] - The Sustainability Committee is chaired by the CEO and oversees the development and implementation of sustainability measures[64][65] Operational Performance - UKPN achieved a profit contribution of HKD 1.55 billion (2023: HKD 1.398 billion) in the UK market, with a customer satisfaction rate of 94.3% in 2024[12] - Australia operations contributed HKD 601 million in profit (2023: HKD 558 million), driven by strong growth in energy usage from residential and commercial customers[13] - Victoria Power Networks initiated the first phase of a major power upgrade in Melbourne to meet increased electricity demand due to population growth and EV adoption[13] - Hong Kong Electric's electricity sales increased by 1.8% year-on-year, driven by warmer weather and an extra day in February 2024[15] - Hong Kong Electric launched a new HKD 22 billion development plan (2024-2028), including a new 380 MW gas-fired combined cycle unit and grid modernization projects[15] - The proportion of natural gas in Hong Kong Electric's power generation increased to approximately 70% with the commissioning of the L12 unit in March 2024[16] - Dampier Bunbury Pipelines achieved a compressor station reliability of 99.96%, exceeding the 99% target[13] - EDL is advancing renewable and hybrid energy projects, including upgrades to Limestone and Lorain renewable gas plants and the first phase of the Agnew plant expansion[13] Financial Derivatives and Fair Value - Financial derivative assets increased to HKD 1,771 million as of June 30, 2024, from HKD 1,545 million at the end of 2023[44] - Fair value of financial derivatives classified as Level 2 increased to HKD 1,771 million as of June 30, 2024, from HKD 1,545 million at the end of 2023[46] - Fair value of forward foreign exchange contracts increased to HKD 1,153 million as of June 30, 2024, from HKD 1,060 million at the end of 2023[46] - Fair value of cross-currency swap contracts increased to HKD 589 million as of June 30, 2024, from HKD 443 million at the end of 2023[46] Corporate Governance and Committees - All directors confirmed compliance with the standard code of conduct for securities transactions as of June 30, 2024[58] - Audit Committee reviewed the unaudited consolidated financial statements for the six months ended June 30, 2024[61] - Audit Committee confirmed the effectiveness and adequacy of the risk management and internal control systems as of June 30, 2024[66] - The Audit Committee consists of 3 independent non-executive directors, chaired by Mr. Yip Yuk Keung[61] - The Nomination Committee is responsible for reviewing the board's structure, size, diversity, and talent mix[62] - The Remuneration Committee oversees the company's director and management team compensation policies[63] - The company shares internal audit functions with its associate company, HK Electric Investments Limited[66] - Internal audit functions cover financial, operational, IT reviews, fraud investigations, and compliance audits[66] - The internal audit team includes professionals from accounting, engineering, and IT fields[66] - The company has established a shareholder communication policy to facilitate effective communication through various channels, including annual general meetings, financial results, annual reports, and investor briefings[67] Shareholder and Ownership Structure - As of June 30, 2024, the company's directors and senior executives hold interests in the company's shares, related shares, and bonds, with details recorded in the company's register[68] - Beneficial owners hold 180,000 shares, representing approximately 0.01% of the company's issued shares as of June 30, 2024[69] - Li Ka-shing holds 7,870,000 share stapled units through controlled companies and trusts, representing approximately 0.08% of the issued share stapled units[70] - The Li Ka-shing Foundation holds share stapled units in HK Electric Investments and HK Electric Investments Limited, with Li Ka-shing potentially controlling one-third or more of the voting rights[71] - Li Ka-shing is deemed to have an interest in share stapled units held by TUT1 as trustee of UT1, as he is a potential beneficiary of DT1 and DT2[72] - Major shareholders include Venniton Development Inc. (7.22%), Interman Development Inc. (8.76%), Univest Equity S.A. (13.09%), and Monitor Equities S.A. (13.48%)[74] - Hyford Limited, CK Hutchison Holdings Limited, and CK Hutchison Global Investments Limited each hold 767,499,612 shares, representing 36.01% of the company's issued shares[74] - Hyford Limited holds 767,499,612 shares of the company, representing a significant portion of the issued shares[75] Cash Flow and Capital Commitments - Cash and cash equivalents decreased by HK$1,009 million in the first half of 2024, compared to a decrease of HK$1,276 million in the same period last year[30] - The company's net cash inflow from operating activities was HK$179 million in the first half of 2024, down from HK$613 million in the same period last year[30] - Net cash inflow from investing activities was HK$3,316 million in the first half of 2024, up from HK$2,459 million in the same period last year[30] - Cash flow from operating activities decreased to HKD 179 million in the first half of 2024, compared to HKD 613 million in the same period of 2023[43] - Dividends received from joint ventures increased to HKD 1,386 million in the first half of 2024, up from HKD 1,049 million in the same period of 2023[43] - The company has capital commitments of HKD 1 million for property, plant, and equipment as of June 30, 2024[51] - The company provided guarantees amounting to HKD 68 million for joint ventures as of June 30, 2024[51] Interest Income and Financial Costs - Interest income declined to HKD 454 million in 2024 from HKD 662 million in 2023, reflecting lower returns from financial assets[35] - The company earned interest income of HKD 384 million from loans to joint ventures for the six months ended June 30, 2024[52] - The company earned interest income of HKD 70 million from loans to associates for the six months ended June 30, 2024[53] - Financial costs for the period remained stable at HKD 80 million in 2024, consistent with HKD 76 million in 2023, as the group maintained its debt structure[36] Tax and Other Expenses - Tax expenses for the period increased to HKD 128 million in 2024 compared to HKD 102 million in 2023, mainly due to higher current tax provisions[37] - The company's total employee compensation expenses for the first six months of 2024 were HKD 14 million, up from HKD 13 million in the same period in 2023[25] Joint Ventures and Associates - The group's share of profits from joint ventures and associates increased to HKD 2,725 million in 2024 from HKD 2,387 million in 2023, reflecting improved performance in key markets[34] - Joint venture equity increased to HKD 61,946 million as of June 30, 2024, compared to HKD 61,669 million at the end of 2023[40] - The company received service fees of HKD 22 million from an associate for the six months ended June 30, 2024[53] Market Capitalization and Credit Rating - The company's market capitalization as of June 30, 2024, was HKD 90.039 billion[7] - The company's credit rating was reaffirmed by Standard & Poor's as "A/Stable"[11] Property, Plant, and Equipment - Property, plant, and equipment (PPE) net book value decreased to HKD 17 million in 2024 from HKD 19 million in 2023, primarily due to depreciation charges[39] Share Repurchase and Redemption - No repurchase, sale, or redemption of the company's listed securities occurred in the first half of 2024[77] Consolidated Financial Position of Affiliated Companies - The consolidated financial position of affiliated companies as of June 30, 2024, shows non-current assets of HKD 400,709 million and current assets of HKD 23,630 million[79] - The group's combined attributable interests in affiliated companies amounted to HKD 54.256 billion as of June 30, 2024[79] Revenue and Segment Performance - Revenue from reportable business segments decreased to HKD 454 million in 2024 from HKD 662 million in 2023, primarily due to lower income from investments in the UK and Australia[34] - The UK segment contributed HKD 1,550 million to the group's profit in 2024, up from HKD 1,398 million in 2023, driven by strong performance in joint ventures[34] - The Australia segment's profit decreased to HKD 601 million in 2024 from HKD 558 million in 2023, impacted by higher financial costs[34] Valuation of Non-Listed Equity Securities - The company's non-listed equity securities are valued using a dividend discount model, with a cost of capital of 13.65%. A 0.5% increase or decrease in the cost of capital would result in a change in the group's profit and reserve of approximately HKD 13 million to HKD 14 million[48]

Financial Performance - The group's unaudited profit for the six months ended June 30, 2024, was HKD 3.0606 billion, a 2% increase from HKD 2.959 billion in 2023[2]. - The group reported a profit attributable to shareholders of HKD 3,006 million for the six months ended June 30, 2024, compared to HKD 2,959 million in 2023, reflecting a slight increase of 1.6%[19]. - Total comprehensive income attributable to shareholders for the same period was HKD 2,159 million, a significant decrease from HKD 5,783 million in 2023, reflecting a decline of 62.6%[20]. - The group's operating profit for the same period was HKD 489 million, down from HKD 750 million in 2023, indicating a decrease of about 34.7%[19]. - The pre-tax profit for the six months ended June 30, 2024, was 3,134 million, compared to 3,061 million in the same period of 2023, showing a slight increase of about 2.4%[28]. - The income tax expense for the six months ended June 30, 2024, was 128 million, up from 102 million in the same period of 2023, representing an increase of approximately 25.5%[29]. - The earnings per share for the six months ended June 30, 2024, was 3.06 billion, compared to 2.95 billion in the same period of 2023, reflecting an increase of about 3.7%[30]. Dividends - The interim dividend declared is HKD 0.78 per share, unchanged from 2023[3]. - The company declared an interim dividend of HKD 1,662 million for the period, consistent with the previous year[22]. - The interim dividend declared was 1,662 million for the six months ended June 30, 2024, unchanged from the same period in 2023[33]. Business Segments - The UK business contributed HKD 1.550 billion in profit, up from HKD 1.398 billion in 2023, despite new price controls[6]. - The Australian business generated HKD 610 million in profit, an increase from HKD 558 million in 2023, driven by strong energy usage growth[7]. - The Hong Kong business saw a 1.8% increase in electricity sales, attributed to warmer weather and an extra day in February due to the leap year[10]. Investments and Acquisitions - The group acquired a 20% stake in Phoenix Energy, Northern Ireland's largest gas network, providing stable income and significant carbon reduction potential[4]. - The group has agreed to acquire a portfolio of onshore wind assets in the UK for approximately £350 million (around HKD 3.5 billion), which includes 32 wind farms with a total installed capacity of 175 MW and a net equity capacity of 137 MW[12]. - The group plans to invest HKD 22 billion in the 2024-2028 development plan, including the construction of a new gas combined cycle generator[10]. Financial Position - The group maintains a strong financial foundation with a net debt to total capital ratio of 2%, indicating low leverage[5]. - The net debt level as of June 30, 2024, was HKD 1,383 million, compared to a net cash position of HKD 1,140 million at the end of 2023, resulting in a net debt to total equity ratio of 2%[15]. - The group's total bank loans as of June 30, 2024, amounted to HKD 2,863 million, down from HKD 3,097 million at the end of 2023[14]. - The company’s cash and cash equivalents decreased to HKD 1,480 million from HKD 4,201 million, a decline of 64.8%[21]. - The company's non-current assets amounted to HKD 91,558 million as of June 30, 2024, slightly up from HKD 91,343 million at the end of 2023[21]. - The net asset value as of June 30, 2024, was HKD 86,563 million, down from HKD 88,752 million at the end of 2023, a decrease of 2.5%[21]. - Current liabilities increased to HKD 3,199 million from HKD 3,249 million, indicating a reduction of 1.5%[21]. Credit Rating and Governance - The group’s credit rating is confirmed as "A/stable" by Standard & Poor's, reflecting its robust financial strength[5]. - The group’s financial position remains strong, with a long-term credit rating of "A" reaffirmed by Standard & Poor's, maintaining a stable outlook since September 2018[15]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange Listing Rules during the six months ended June 30, 2024[36]. - All directors confirmed compliance with the standard code of conduct for securities trading during the six months ended June 30, 2024[37]. - The board consists of two executive directors, two non-executive directors, and five independent non-executive directors as of the announcement date[38]. Operational Challenges - For the six months ended June 30, 2024, the group's revenue was HKD 454 million, a decrease from HKD 662 million in the same period of 2023, representing a decline of approximately 31.5%[19]. - The group has invested in enhancing system resilience against extreme weather, including flood monitoring systems for power facilities[11]. - The company reported a foreign exchange loss of HKD 926 million from operations outside Hong Kong, compared to a gain of HKD 2,551 million in the previous year[20]. - The company's employee compensation for the six months ended June 30, 2024, totaled HKD 14 million, an increase from HKD 13 million in 2023[18].