Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 6.67, up from the previous target of HKD 6.33 [1] Core Views - The company's 1H24 revenue increased by 6.6% YoY to HKD 5.57 billion, while net profit attributable to shareholders decreased by 3.6% YoY to HKD 950 million [1] - The interim dividend remained flat YoY at HKD 1.408 billion, representing 100% of distributable income, with a DPS of 15.94 HK cents [1] - The company's natural gas power generation ratio increased to approximately 70% in 1H24, driven by the commissioning of the 380MW L12 gas-fired unit and the retirement of two 250MW coal-fired units (L4/L5) [2] - The company plans to invest HKD 22 billion in capital expenditure from 2024 to 2028, which is expected to contribute to the steady growth of net profit attributable to shareholders [3] Financial Performance - The company's revenue is expected to grow from HKD 11.984 billion in 2024E to HKD 12.856 billion in 2026E, with a CAGR of 3.35% [4] - Net profit attributable to shareholders is projected to increase from HKD 3.223 billion in 2024E to HKD 3.773 billion in 2026E, with a CAGR of 7.81% [4] - The company's ROE is expected to improve from 6.55% in 2024E to 7.47% in 2026E, while the PE ratio is forecasted to decline from 15.00x in 2024E to 12.81x in 2026E [4] Operational Highlights - The company's electricity sales volume increased by 1.8% YoY in 1H24, with a power supply reliability exceeding 99.9999% [2] - The company's 2024-2028 development plan includes the construction of a new 380MW gas-fired unit (L13), which is expected to further increase the natural gas power generation ratio upon its commissioning in 2029 [2] Valuation - The report values the company at 1.19x 2024E PB, which is approximately 0.5 standard deviations above the historical average of 1.07x [1] - The company's EV/EBITDA is expected to decline from 13.16x in 2024E to 11.97x in 2026E, reflecting improving operational efficiency [4]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承 擔任何責任。 2024 年中期業績 董事局主席報告 港燈電力投資及其全資附屬公司港燈致力推動綠色能源轉型，近年更取得顯著成果。 集團以增加天然氣發電比例為中期措施，長遠致力實現零碳發電願景。在 2024 年首 6 個 月，港燈順利完成上一個發展計劃內的資本工程，並啟動 2024 – 2028 年度發展計劃的新 項目，穩步邁向這個長遠願景。 2024 年 3 月，港燈在能源轉型的路上再度創下新里程，一台 380 兆瓦燃氣聯合循環發電 機組 L12 落成啟用，並先後在 1 月和 6 月將 2 台老舊燃煤發電機組 L4 和 L5 退役，以履 行我們致力減少燃煤發電的承諾。至此，我們的 2019 – 2023 年度發展計劃已順利完成， 使港燈得以進一步增加天然氣發電比例至約 70%。 2024 – 2028 年度發展計劃繼續推動港燈的能源轉型進程至下一階段。該計劃不但有助 我們善用資本開支，同時確保向客戶提供安全、可靠和可負 ...

Financial Performance - Revenue for 2023 reached HKD 11.406 billion, an increase of 3.5% from HKD 10.793 billion in 2022[11] - For the year ending December 31, 2023, the EBITDA was HKD 8.03 billion, an increase from HKD 7.59 billion in 2022, while the audited profit attributable to unit holders was HKD 3.156 billion, up from HKD 2.954 billion in 2022[23] - The net debt to net total capital ratio remained stable at 51%[11] - The company announced a final distribution of HKD 0.1609 per unit, maintaining the same level as in 2022, resulting in a total annual distribution of HKD 0.3203 per unit[23] Customer Metrics - The average customer satisfaction index improved to 4.72 out of 5, compared to 4.71 in 2022[13] - The total number of customers served increased to 589,000, up from 586,000 in 2022[13] - Customer satisfaction reached an average score of 4.72 out of 5, exceeding 18 service commitments, with 2,100 commendation letters received during the year[124] Infrastructure and Development - The company plans to continue infrastructure development to support social progress and carbon reduction efforts[19] - The total investment for the 2019-2023 development plan reached HKD 26.6 billion, including the construction of 3 gas-fired generating units and a joint venture offshore LNG receiving station, which will increase the gas generation ratio to approximately 70% starting in 2024[20] - The company has received government approval for a new 5-year development plan (2024-2028) with a capital investment of HKD 22 billion aimed at improving emission performance and enhancing grid reliability[20] - The company plans to invest HKD 22 billion in the 2024-2028 development plan to further promote clean energy transition and enhance power supply reliability[59][68] Energy Transition and Sustainability - The company aims to achieve carbon neutrality by 2050, increasing the use of gas and renewable energy sources[2] - The company is committed to reducing carbon emissions and aims to halve carbon emissions from 2005 levels by 2035, in line with government policies on zero-carbon energy[32] - The company produced over 10 million kWh of renewable energy in 2023, including contributions from over 550 customer renewable energy systems[92] - The company has invested approximately HKD 300 million over the past five years to support vulnerable communities and promote energy efficiency and low-carbon living[31] Technological Advancements - The company implemented over 200 projects utilizing advanced analytics, AI, robotics, and IoT technologies to enhance operational reliability and efficiency[30] - The company developed a software model for monitoring the health status of 11 kV cables using AI technology, significantly enhancing fault risk assessment[114] - The use of drones for inspections has reduced the time required for data analysis from 7 days to 2 days, improving safety and efficiency while lowering costs[116] Emergency Preparedness and Resilience - The company is undertaking various flood and wind resistance projects to strengthen the grid's resilience against extreme weather events[26] - The company is investing in flood prevention infrastructure to enhance power supply reliability, including sealing cable duct entrances and installing a two-tier flood warning system[105] - Emergency response plans are regularly reviewed and updated to ensure rapid restoration of power systems during extreme weather events[107] Community Engagement and Social Responsibility - The company is committed to supporting three United Nations Sustainable Development Goals and will publish relevant indicators and progress in its annual sustainability report[27] - The company has allocated over HKD 55 million in 2024 to continue supporting vulnerable communities and promoting energy efficiency[31] - The company funded 15 social service organizations to operate 35 self-learning centers, providing a total of 2,910 learning opportunities[167] Employee Development and Safety - The company has over 1,830 employees, with a voluntary turnover rate of 6.5%, lower than the industry average for similar-sized companies[179] - Each employee received an average of 30 hours of training in 2023, supporting personal and career development[180] - The company recorded a low level of lost time injury incidents, with only 2 cases reported in 2023, despite being minor[189] Environmental Initiatives - The company launched an environmental education booklet titled "Carbon Reduction ABC," which won a gold award in the "Corporate Sustainability" category at the 2023 Hong Kong Public Relations Awards[57] - The company organized a three-day "Green Happy Market" to celebrate the 20th anniversary of its "Green Happy Program," attracting approximately 3,000 participants[153] - The company continues to monitor climate-related risks and opportunities, completing a scenario analysis in 2023[142]

Financial Performance - For the year ending December 31, 2023, the company reported an EBITDA of HKD 8.03 billion, up from HKD 7.59 billion in 2022, representing a growth of approximately 5.8%[5] - The profit attributable to shareholders was HKD 3.156 billion, compared to HKD 2.954 billion in 2022, marking an increase of about 6.8%[5] - The group's revenue for the year ended December 31, 2023, was HKD 11.406 billion, an increase from HKD 10.793 billion in 2022[19] - The consolidated profit for the same period was HKD 3.156 billion, up from HKD 2.954 billion in 2022, representing a growth of approximately 6.8%[19] - Revenue for the year ended December 31, 2023, was HKD 11.406 billion, an increase of 5.7% from HKD 10.793 billion in 2022[31] - Operating profit rose to HKD 4.976 billion, up from HKD 4.509 billion in 2022, reflecting a growth of 10.4%[31] - Basic and diluted earnings per share increased to HKD 0.3572, compared to HKD 0.3343 in 2022, representing a growth of 5.8%[31] - The group recorded a net loss of HKD 256 million from the sale and write-off of property, plant, and equipment in 2023, compared to a loss of HKD 88 million in 2022, indicating a deterioration in asset management[49] Investments and Development Plans - The company has completed its 2019-2023 development plan with a total investment of HKD 26.6 billion, which includes the construction of three gas turbine units and a joint venture offshore LNG receiving station[3] - A new five-year development plan has been approved, with a capital investment of HKD 22 billion planned for 2024-2028 to improve emission performance and enhance grid resilience[3] - The company plans to allocate over HKD 55 million in 2024 to continue supporting vulnerable communities and promoting energy efficiency and low-carbon living[14] - The group has committed to investing HKD 1,300 million into the Energy Efficiency Fund in 2023, which is part of its strategy to promote energy efficiency[53] Customer and Operational Metrics - The company installed over 360,000 smart meters, covering approximately 60% of its customer base, enabling customers to monitor their electricity usage[6] - The electricity sales volume slightly increased to 10.04 billion kWh in 2023 from 9.94 billion kWh in 2022, driven by a rise in customer numbers to 589,000[11] - The company achieved a customer satisfaction score of 4.72 out of 5, maintaining a reliability record of over 99.999% for 27 years[11] - The company has provided technical support for the installation of electric vehicle charging infrastructure, assisting around 53,000 parking spaces in 470 private estates since 2020[9] - The company produced over 10 million kWh of green electricity through renewable energy systems connected to its grid in 2023[11] Financial Position and Liabilities - As of December 31, 2023, total external loans amounted to HKD 50.206 billion, a slight decrease from HKD 51.212 billion in 2022[23] - Net debt as of December 31, 2023, was HKD 50.185 billion, compared to HKD 50.887 billion in 2022, with a net debt to total capital ratio of 51%[24] - The company's net assets stood at HKD 48,978 million as of December 31, 2023, slightly down from HKD 49,333 million in 2022, a decrease of 0.7%[36] - The company’s total liabilities increased to HKD 1,277 million due to debt repayments during the year[56] - The total nominal amount of outstanding financial derivative contracts was HKD 46.116 billion as of December 31, 2023, compared to HKD 44.9 billion in 2022[26] Tariffs and Subsidies - In 2023, over 920,000 "zero" electricity bills were issued to residential customers, accounting for about 16% of all residential bills due to fuel adjustment fee reductions and various subsidies[13] - The basic electricity tariff is set to increase by 5 HK cents to 119.5 HK cents per kWh in 2024, while the net electricity fee will decrease to 165.5 HK cents per kWh, a 16% reduction compared to January 2023[16] - The company provided a special fuel cost rebate of HKD 0.011 per kWh to all customers in May 2023[68] - The special electricity subsidy provided in 2023 amounted to HKD 38.881 million, offering a subsidy of HKD 0.095 per kWh to residential customers using 300 kWh or less per month[55] Governance and Compliance - The trust and the company complied with the applicable provisions of the corporate governance code throughout the year ending December 31, 2023, except as noted[98] - The audit committee has reviewed procedures for handling reports of improper conduct related to financial reporting and internal controls[99] - The trust and the company have established insider information and securities trading policies for all employees[99] - The board of directors consists of independent non-executive directors and executive directors, ensuring a diverse governance structure[103] Environmental and Emission Goals - The company aims to reduce carbon emissions by half from 2005 levels by 2035, in line with government policies to increase the use of zero-carbon energy[16] - The company has initiated a new project to build a gas turbine unit to replace an old coal-fired unit, further reducing carbon emissions[7]

Financial Performance - Revenue for the first half of 2023 reached HKD 5.229 billion, an increase of 6.9% compared to HKD 4.893 billion in 2022[3] - The profit attributable to unit holders was HKD 980.2 million, up from HKD 894.0 million in 2022, representing a growth of 9.6%[14] - EBITDA for the first half of 2023 was HKD 3.739 billion, compared to HKD 3.377 billion in 2022, reflecting an increase of 10.7%[14] - The trust group's revenue for the six months ended June 30, 2023, was HKD 5.229 billion, an increase of 6.8% from HKD 4.893 billion in 2022[31] - The unaudited consolidated profit for the same period was HKD 982 million, up 9.8% from HKD 894 million in 2022[31] - Operating profit for the same period was HKD 2,299 million, up 22.2% from HKD 1,881 million in 2022[46] - Profit attributable to shareholders for the six months was HKD 982 million, representing a 9.8% increase from HKD 894 million in 2022[48] - Basic and diluted earnings per share increased to 11.11 cents from 10.12 cents, reflecting a growth of 9.8%[46] - Total comprehensive income for the period was HKD 935 million, down from HKD 1,885 million in 2022, primarily due to changes in cash flow hedges[48] Distribution and Dividends - The interim distribution declared is HKD 1.408 billion, maintaining the same amount as in 2022, with an interim distribution per unit of HKD 0.1594[16] - The interim dividend per share remained stable at 15.94 cents for both 2023 and 2022, with total interim dividends amounting to 1,408 million[23][24] - The group paid out dividends totaling HKD 1,422 million, unchanged from the previous year[54] Capital Expenditure and Financial Position - Capital expenditure for the period was HKD 1.678 billion, down from HKD 2.159 billion in 2022[36] - As of June 30, 2023, the total external borrowings amounted to HKD 52.054 billion, compared to HKD 51.212 billion as of December 31, 2022[36] - The net debt as of June 30, 2023, was HKD 51.775 billion, with a net debt to net total capital ratio of 51%[39] - The trust group secured a 5-year credit facility of HKD 2 billion for capital expenditures and general business purposes[39] - The trust group maintained a stable cash flow from operating activities, which supported the declared distributions[35] - Current liabilities decreased to HKD 4,467 million from HKD 5,527 million, indicating improved liquidity[50] - Net assets as of June 30, 2023, were HKD 48,851 million, down from HKD 49,333 million at the end of 2022[50] Operational Developments - The company continues to implement its carbon reduction strategy, with a significant milestone being the completion of the offshore liquefied natural gas receiving station in July 2023[12] - The construction of the third 380 MW gas turbine generator is ongoing, expected to be operational in early 2024[12] - The company has submitted its development plan for 2024-2028 to the government, outlining proposed capital investments for the next five years[12] - The new offshore liquefied natural gas receiving station commenced commercial operations in early July 2023, with a storage capacity of 263,000 cubic meters[17] - The company plans to commission the third gas turbine unit (L12) at the Lamma Power Station by early 2024[17] Customer and Market Insights - The electricity sales volume increased by 3.3% in the first half of 2023 compared to the same period in 2022, but decreased by 5.8% compared to the first half of 2019[21] - The company has installed over 303,000 smart meters for more than half of its customers, aiding them in managing their electricity consumption[18] - The fuel adjustment fee decreased from HKD 0.825 per kWh in January 2023 to HKD 0.697 per kWh in August 2023, a drop of 15.5%[21] Governance and Compliance - The company has adhered to the corporate governance code applicable during the six months ended June 30, 2023, with some exceptions noted[127] - The board of directors consists of 17 members, including 5 executive directors, 6 non-executive directors, and 6 independent non-executive directors, complying with the requirement that independent non-executive directors represent at least one-third of the total board[130] - The Audit Committee consists of three independent non-executive directors and one non-executive director, chaired by Mr. Robins[137] - The company has established policies for insider information and securities trading to ensure compliance among all employees[128] Environmental and Social Responsibility - The company has introduced a comprehensive environmental, social, and governance risk management framework to improve risk control measures[27] - The company has allocated approximately HKD 55 million to support vulnerable households and non-residential customers during the year[24] - The company aims to explore the feasibility of constructing a power receiving station in Tseung Kwan O to import zero-carbon electricity[27] - Future guidance indicates a commitment to sustainable practices, with a target of reducing carbon emissions by I% over the next five years[165]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔 任何責任。 2023年中期業績 董事局主席報告 2023 年上半年，港燈電力投資及其全資附屬公司港燈繼續全力推行減碳策略支持香港實 現減碳目標。 港燈 2019-2023 年度發展計劃踏入最後一年，該計劃推動綠色能源轉型以及把相關能源 基建「由煤轉氣」。期內一個重要里程碑是海上液化天然氣接收站在 2023 年 7 月初落成 並投入商業運作。港燈同時繼續興建第 3 台 380 兆瓦燃氣發電機組，預計在 2024 年初投 產，以及安裝智能電表和相關基礎設施。 港燈已就現行《管制計劃協議》的中期檢討與政府及主要持份者展開磋商，探討是否有 優化空間。《管制計劃協議》一直提供一個穩定框架，讓電力公司投資減碳項目，成效 顯著。港燈已於 2023 年 6 月向政府提交 2024-2028 年度發展計劃，當中概述未來 5 年擬 議的資本投資。 港燈的首要目標之一是維持世界級的供電可靠度，過去近 30 年來從未發生大規模停電。 然而， ...

Financial Performance - Revenue for 2022 was HKD 10.793 billion, a decrease of 16.5% from HKD 11.344 billion in 2021[18]. - For the year ended December 31, 2022, the company's EBITDA was HKD 7.59 billion, down from HKD 7.95 billion in 2021, while the audited profit attributable to unit holders was HKD 2.95 billion, slightly up from HKD 2.93 billion in 2021[33]. - The audited consolidated profit for the same period was HKD 2.954 billion, slightly up from HKD 2.933 billion in 2021[199]. - Capital expenditure for the year was HKD 5.734 billion, down from HKD 6.001 billion in 2021[200]. - Total external borrowings increased to HKD 51.212 billion in 2022 from HKD 46.626 billion in 2021[200]. - The company declared a total distribution of HKD 0.3203 per unit for the year, unchanged from 2021[198]. Asset and Debt Management - Total assets increased to HKD 121.002 billion in 2022 from HKD 114.828 billion in 2021, representing a growth of 5.1%[18]. - The net debt to net total capital ratio rose to 51% in 2022, up from 49% in 2021[18]. Customer and Service Metrics - The total number of customers served reached 586,000 in 2022, a slight increase from 584,000 in 2021[19]. - The average customer satisfaction index improved to 4.71 out of 5 in 2022, up from 4.69 in 2021[22]. - The company achieved a customer satisfaction score of 4.71 out of 5, maintaining service standards despite pandemic-related restrictions[39]. - 港燈在2022年客户满意度得分为4.71（满分5分），收到1,961封表扬信及6宗投诉[120]. Energy Production and Sales - The total electricity sales volume was 9,941 million kWh in 2022, down from 10,361 million kWh in 2021, reflecting a decrease of approximately 4%[19]. - The total electricity sales decreased to 9.94 billion kWh in 2022 from 10.36 billion kWh in 2021 due to reduced demand amid the pandemic[38]. - The proportion of natural gas in the fuel mix increased to approximately 53% following the retirement of two older units[89]. Renewable Energy Initiatives - The number of renewable energy generation systems participating in the feed-in tariff scheme increased to 383 in 2022, with a total generation capacity of 7.4 MW[19]. - The renewable energy systems connected to the grid have a total generation capacity of approximately 7.4 MW, producing over 6.3 million kWh annually[89]. - The company completed a feasibility study for a 150 MW offshore wind farm, which could generate approximately 4% of its total electricity output[37]. Environmental and Sustainability Goals - The company aims to support Hong Kong's goal of achieving carbon neutrality by 2050 through increased use of gas and renewable energy[6]. - The company aims to reduce total carbon emissions to half of the 2005 baseline by 2035, with gas generation as a key transitional measure towards achieving net-zero emissions by 2050[73]. - The company aims to reduce greenhouse gas emissions from electricity production by 68.4% by 2035, based on 2019 levels, in alignment with the Paris Agreement[99]. - The company aims to achieve carbon neutrality by 2050, aligning its business goals with this vision[128]. Customer Support and Subsidies - The company provided a special rebate of HKD 0.01 per kWh and supported a government subsidy plan of HKD 1,000 for eligible residential users starting from June 2022[32]. - A special electricity subsidy of HKD 0.095 per kWh will be provided for residential customers using less than 300 kWh per month, benefiting over 45% of residential customers[43]. - 港燈为弱势家庭提供每年港币1,000元的电费补贴，并向低用电量住宅用户派发5万套饮食券[104]. Technological Advancements - The company installed over 240,000 smart meters by the end of 2022, covering more than 40% of its customers, and established a communication network for data collection[35]. - The company installed smart meters at the Lamma Power Station to optimize electricity consumption[100]. - The company has implemented 30 software robots across multiple systems to automate over 40 different business processes[96]. Employee Development and Well-being - The company has a workforce of 1,850 employees, with a voluntary turnover rate of 7.7%, lower than the average for companies of similar size[168]. - In 2022, the company provided a total of 46,313 hours of skills training, averaging 25 hours per employee[173]. - The company conducted 20 courses focused on mental health training and basic counseling skills to promote employee well-being[171]. Community Engagement and Education - The company has distributed educational materials to over 50,000 kindergarten students to instill environmental awareness from a young age[135]. - The company organized approximately 10 workshops for parents, teachers, and the public to promote green living education[134]. - Over 120,000 participants engaged in the "Green and Happy" program throughout the year, promoting energy efficiency and low-carbon lifestyles[138]. Infrastructure Development - The company is in the final construction phase of the L12 gas-fired combined cycle unit, expected to commence commercial operation in early 2024[34]. - The offshore liquefied natural gas receiving station is scheduled to be operational by mid-2023, with equipment testing having started in mid-2022[34]. - The offshore LNG receiving station is expected to be operational by mid-2023, enhancing the stability of gas supply[84].

Financial Performance - Revenue for the first half of 2022 was HKD 4.893 billion, compared to HKD 5.249 billion in 2021, representing a decrease of approximately 6.8%[5] - The unaudited profit attributable to unit holders was HKD 894 million, slightly up from HKD 880 million in 2021, indicating a growth of about 1.6%[35] - The unaudited EBITDA for the first half of 2022 was HKD 3.377 billion, down from HKD 3.640 billion in 2021, reflecting a decline of approximately 7.2%[35] - The interim distributable income for the period is HKD 1.48 billion, the same as in 2021, with an interim distribution of HKD 0.1594 per share unit[36] - The electricity sales volume decreased by 6.8% compared to the same period in 2021, primarily due to social distancing measures and milder weather[44] - Operating profit for the same period was HKD 1,881 million, down 12.5% from HKD 2,148 million in 2021[68] - Profit attributable to shareholders for the six months ended June 30, 2022, was HKD 894 million, slightly up from HKD 880 million in 2021[71] - Total comprehensive income for the six months ended June 30, 2022, was HKD 1,885 million, significantly higher than HKD 929 million in 2021[75] Distribution and Dividends - The total distribution amount remained stable at HKD 1.408 billion, with an interim distribution per unit of HKD 0.1594[5] - The interim distribution for the six months ended June 30, 2022, was declared at HKD 0.1594 per share, unchanged from 2021[52] - The company’s interim dividend per share remained stable at 15.94 cents for both 2022 and 2021, indicating consistent shareholder returns[135] Capital Expenditure and Financial Position - Capital expenditure for the period was HKD 2.159 billion, an increase from HKD 1.812 billion in 2021, funded by cash from operations and external loans[57] - As of June 30, 2022, total external loans amounted to HKD 49.688 billion, up from HKD 46.626 billion as of December 31, 2021[57] - The net debt as of June 30, 2022, was HKD 49.633 billion, with a net debt to net total capital ratio of 50%, compared to 49% as of December 31, 2021[60] - The group maintained a strong financial position, with a stable credit rating of A- from Standard & Poor's[60] - The total assets as of June 30, 2022, reached HKD 77.16 billion, an increase from HKD 76.74 billion at the beginning of the year[106] Sustainability and Development Initiatives - A new gas combined cycle generating unit at the Lamma Power Station has been commissioned, contributing to the company's sustainability goals[34] - Plans for constructing an offshore wind farm in Hong Kong waters are currently underway, aligning with the company's commitment to clean energy[34] - The offshore wind farm project is expected to provide approximately 150 MW of generation capacity, reducing CO2 emissions by about 284,000 tons annually[39] - The company continues to balance business performance with sustainable development to meet carbon reduction targets[34] Customer Support and Economic Impact - The company has implemented various relief measures for customers affected by the economic impact of the COVID-19 pandemic, including the distribution of food vouchers[34] - The company froze the basic electricity tariff for 2022 and provided a special rebate of HKD 0.01 per kWh to alleviate customer costs[44] - The company distributed HKD 10 million in food vouchers to support low-income households and small restaurants during the pandemic[46] Risk Management and Governance - The company has established a framework for assessing and determining the nature and extent of risks it is willing to take to achieve strategic objectives[198] - The Audit Committee has reviewed the unaudited consolidated financial statements for the six months ended June 30, 2022[196] - The company maintained compliance with the corporate governance code applicable during the six months ended June 30, 2022, with no exceptions noted[180] - The board of directors consists of 17 members, including five executive directors, six non-executive directors, and six independent non-executive directors, ensuring compliance with listing rules regarding independent director representation[183] Employee and Operational Metrics - Total employee compensation for the six months ended June 30, 2022, reached HKD 599 million, compared to HKD 589 million in 2021[66] - The overall vaccination rate among employees is over 99%, ensuring minimal disruption to operations during the pandemic[48] - The company has installed smart meters for 25% of customers, with a target of 240,000 installations by the end of 2022[41] Financial Instruments and Derivatives - The company's financial derivative instruments showed a fair value adjustment of HKD 74 million for the six months ended June 30, 2022[113] - The fair value of financial derivatives as of June 30, 2022, included interest rate swap contracts valued at 684 million and forward foreign exchange contracts at 886 million, reflecting a strong position in financial instruments[126]

Financial Performance - Revenue for 2021 was HKD 11.344 billion, an increase from HKD 10.389 billion in 2020, representing a growth of approximately 9.2%[20] - The total distributable income remained stable at HKD 2.830 billion for both 2021 and 2020[20] - In 2021, Hongkong Electric achieved a net profit of HKD 2.933 billion, an increase from HKD 2.732 billion in 2020[30] - The total dividend for the year was HKD 0.3203 per share, consistent with the previous year[30] Asset and Customer Metrics - The total assets increased to HKD 114.828 billion in 2021 from HKD 111.567 billion in 2020, reflecting a growth of about 2.0%[20] - The number of customers served increased to 584,000 in 2021 from 583,000 in 2020, showing a slight growth[17] - The average customer satisfaction index was 4.69 in 2021, slightly down from 4.72 in 2020[15] Energy Generation and Supply - Approximately 50% of the electricity supplied in 2021 came from gas-fired generation, with plans to gradually increase this proportion in the coming years[29] - The company produced approximately 2 million kWh of green electricity from solar power systems in 2021, supporting the government's goal of achieving carbon neutrality by 2050[74] - In 2021, the total electricity consumption reached 10.36 billion kWh, an increase from 10.13 billion kWh in 2020[39] - The company sold 10.36 billion kWh of electricity in 2021, an increase from 10.13 billion kWh in 2020, with approximately half generated from gas power[79] Infrastructure and Technology - The number of smart meters installed exceeded 120,000 in 2021, up from over 40,000 in 2020[13] - The company has installed over 120,000 smart meters and related infrastructure, with a goal to complete the installation by 2025[136] - The company has implemented over 280 innovation projects since 2018, with more than 40 projects completed in 2021, utilizing new technologies to enhance operational efficiency[107] - Advanced monitoring and data collection systems are utilized in the company's control center to ensure power supply reliability, employing AI and machine learning technologies[100] Environmental Initiatives - Carbon emissions have decreased by approximately 26% compared to the 2005 baseline year[29] - The company aims to achieve carbon neutrality in its operations by 2050, with a mid-term target of reducing absolute carbon emissions by over 50% from 2005 levels by 2035[39] - The company has committed approximately HKD 27 million to support 19 marine conservation and fisheries enhancement projects in 2021[73] - The company achieved a 63% reduction in sulfur dioxide emissions and a 35% reduction in nitrogen oxides from 2017 to 2021[114] Customer Services and Community Engagement - The company provided free electric vehicle charging services 30,686 times in 2021, compared to 20,385 times in 2020, indicating a significant increase[14] - The number of charging services provided at the company's 12 charging stations increased by 51% in 2021, totaling 36,686 services[125] - The company has expanded its "Smart Electricity Care Fund" to assist vulnerable communities, benefiting over 40,000 families and 300 small and medium-sized enterprises[120] - The company distributed dining vouchers to grassroots families through the "Caring for Small Enterprises" program, utilized in over 220 restaurants[121] Development Plans and Future Projects - The development plan for 2019-2023 includes the construction of three new gas combined cycle units, with the last unit L12 expected to be operational in 2023[31] - The company is implementing a development plan worth HKD 26.6 billion for the period 2019-2023, with projects progressing smoothly[68] - The offshore liquefied natural gas receiving station project is expected to commence operations in 2022, ensuring stable gas supply[34] - The L12 gas turbine unit and the offshore LNG receiving station project are continuing construction, with the L12 unit expected to be operational by 2023[70] Safety and Reliability - The company maintained a power supply reliability rate of over 99.9999% for two consecutive years, ranking among the world's most reliable power companies[29] - The average unplanned power outage time per customer was less than 30 minutes during the year[39] - The company completed major upgrades at 11 substations, increasing voltage from 11 kV to 22 kV to enhance reliability[80] Training and Employee Engagement - The company organized 59 training courses to provide employees with the latest information on environmental, energy, and resource conservation policies and measures[200] - Over 850 employees participated in the United Nations "World Environment Day" activities, promoting green living through various initiatives[200] - The company has implemented mandatory training for all employees to strengthen their understanding of sustainability and best practices in the industry[183]

Financial Performance - Revenue for the first half of 2021 was HKD 5.249 billion, compared to HKD 4.8 billion in the same period of 2020, representing an increase of approximately 9.3%[4] - The unaudited profit attributable to unit holders was HKD 880 million for the first half of 2021, up from HKD 811 million in 2020, reflecting a growth of about 8.5%[32] - The EBITDA for the first half of 2021 was HKD 3.64 billion, compared to HKD 3.24 billion in 2020, indicating an increase of approximately 12.4%[32] - The interim distributable income for the period is HKD 1.48 billion, unchanged from 2020, with an interim distribution of HKD 0.1594 per share unit[33] - Operating profit for the same period was HKD 2,148 million, up 22.5% from HKD 1,753 million in 2020[67] - Profit attributable to shareholders for the six months was HKD 880 million, representing an increase of 8.5% compared to HKD 811 million in 2020[70] - Basic and diluted earnings per share for the period were 9.96 cents, compared to 9.18 cents in 2020, reflecting a growth of 8.5%[67] - The total comprehensive income for the six months ended June 30, 2021, was HKD 929 million, compared to HKD 540 million for the same period in 2020, indicating a significant improvement[77] Capital Expenditures and Investments - Capital expenditures during the period amounted to HKD 1.812 billion, up from HKD 1.571 billion in 2020, indicating a growth of approximately 15.4%[56] - The approved and contracted capital expenditure for property, plant, and equipment as of June 30, 2021, was HKD 7,848 million, up from HKD 7,140 million at the end of 2020[134] - The approved but not contracted capital expenditure for property, plant, and equipment was HKD 11,984 million as of June 30, 2021, down from HKD 14,303 million at the end of 2020[135] - The group’s capitalized costs related to construction assets were HKD 9,587 million as of June 30, 2021, reflecting ongoing investments in infrastructure[102] Debt and Financial Position - As of June 30, 2021, total external borrowings were HKD 46.407 billion, an increase from HKD 44.89 billion as of December 31, 2020, representing a growth of about 3.6%[56] - The net debt to net total capital ratio was 50% as of June 30, 2021, compared to 48% at the end of 2020, indicating a slight increase in leverage[59] - The trust group maintained a strong financial position, with a stable credit rating of A- from Standard & Poor's[59] - The trust group has secured a five-year credit facility totaling HKD 3 billion for refinancing and general business purposes[59] - The company has a liquidity position with bank deposits and cash amounting to HKD 49 million as of June 30, 2021[56] Customer and Community Support - The company continues to implement relief measures to assist customers and businesses affected by the COVID-19 pandemic[31] - The company has expanded its relief measures and energy-saving programs, with a budget of HKD 24 million expected to benefit 500 SMEs and over 40,000 grassroots families[45] - The company has installed over 80,000 smart meters to assist customers in energy management and is developing a new mobile application for real-time electricity usage updates[36] Sustainability and Environmental Initiatives - The company is focused on reducing carbon emissions through ongoing capital projects in its power generation business[31] - The company aims to increase the proportion of natural gas generation from approximately 50% to about 70% by 2023 as part of its development plan from 2019 to 2023[35] - The company has completed consultations with the government to tighten emission limits starting in 2026 as part of its commitment to cleaner energy production[39] - The trust group is committed to achieving carbon neutrality by 2050 and is exploring the feasibility of expanding offshore wind farm capacity[48] Governance and Compliance - The company has adhered to corporate governance principles during the six months ending June 30, 2021, with exceptions related to the establishment of a remuneration committee and a nomination committee[169] - The company’s audit committees have reviewed procedures for handling reports of financial reporting and internal controls, ensuring transparency and accountability[170] - The company’s risk management and internal control systems are regularly reviewed by the audit committees to ensure effectiveness in achieving strategic objectives[191] - The audit committees consist of three independent non-executive directors and one non-executive director, ensuring governance compliance[194] Operational Efficiency - A total of 69 innovation projects and 75 mobile applications were developed during the period to enhance operational efficiency and customer service[43] - The company maintains a power supply reliability rate of over 99.999% and has restored all customer-facing services to pre-pandemic levels[42] - The group’s total operating costs for the group were HKD 520 million for the six months ended June 30, 2021, slightly up from HKD 509 million in the same period of 2020[93]