Summary of Conference Call Company and Industry - The conference call involved **Yuehai Investment**, a company operating in the **water and wastewater management sector**. The discussion focused on the company's performance and outlook amidst economic challenges. Key Points and Arguments 1. **Q1 Performance Overview**: - The company reported a slight revenue decline of less than 1% in Q1, with a 2% increase in pre-tax profit and a 2.5% increase in shareholder profit, indicating stable performance despite economic challenges [2][3][4]. 2. **Asset Separation**: - The company successfully separated its assets on January 21, which is expected to mitigate losses from real estate risks, resulting in a reduction of approximately 9.4 million in losses [3][6]. 3. **Operational Stability**: - Overall operational performance remains stable, with a focus on reducing capital expenditures and debt. Financial expenses decreased by 77 million, contributing positively to overall profits [3][4][6]. 4. **Real Estate Market Impact**: - The real estate market is facing challenges, with a reported decrease in rental income and property values. The company anticipates limited recovery in the real estate sector, with a decrease in supply value of 10 million compared to the previous year [4][10]. 5. **Water Pricing Adjustments**: - The company is monitoring water pricing adjustments in various regions, including Guangzhou and Shenzhen. The adjustments are seen as normal and necessary for sustainable water resource management [7][9][10]. 6. **Future Capital Expenditures**: - Projected capital expenditures for 2024 are expected to be around 2 billion, primarily focused on water projects. The company aims to complete six ongoing water projects with a total supply capacity of 1.2 million tons per day [22][23]. 7. **Debt Management**: - The company has made significant efforts to reduce debt, with a focus on maintaining financial stability. Financial expenses are expected to continue decreasing, contributing to overall profitability [26][27]. 8. **Dividend Policy**: - The company plans to maintain a dividend payout ratio of 65%, ensuring consistent returns to shareholders while managing capital for future investments [27][29]. Other Important but Overlooked Content 1. **Market Conditions**: - The overall economic environment remains challenging, impacting various sectors including real estate and utilities. The company is cautiously optimistic about maintaining performance levels [2][4][10]. 2. **Sector-Specific Challenges**: - The company faces specific challenges in the hotel and highway sectors, with ongoing evaluations for potential asset divestitures. However, no immediate actions are planned due to current market conditions [10][12][18]. 3. **Long-term Contracts**: - The company is in discussions regarding the renewal of long-term water supply contracts, which are crucial for future revenue stability [21][22]. This summary encapsulates the key insights from the conference call, highlighting the company's performance, strategic initiatives, and market outlook.

April 2025 2025 FIRST QUARTER RESULTS REVIEW 2025 First Quarter Results Review ~ Stock Code: 0270 F I N A N C I A L H I G H L I G H T S 1 The unaudited consolidated profit attributable to owners of the Company from continuing operations for 1Q25 increased by 1.9% to HK$1,322 million On 21 January 2025, 99.9% of GD Land shares held by the Company was distributed to the shareholders. The unaudited consolidated loss attributable to owners of the Company from GD Land (discontinued operations) up to 21 January 2 ...

Market Overview - On May 29, the A-share market saw major indices fluctuate and close higher, with the Shanghai Composite Index rising by 0.7%. The total trading volume reached 1.21 trillion yuan, an increase of nearly 180 billion yuan compared to the previous trading day. Approximately 4,500 stocks closed higher, while 831 stocks declined, with 120 stocks hitting the daily limit up and 16 stocks hitting the limit down [1]. Sector Performance - The digital currency sector led the market with a 6.5% increase, featuring over 10 stocks hitting the daily limit up, including Lakala, Xiongdi Technology, and Sifang Chuangxin [1]. - The innovative drug sector also performed strongly, with stocks like Ruizhi Pharmaceutical, Shutaishen, and Yifang Bio-U hitting the daily limit up. Shutaishen's stock price has surged by 108.7% over the past eight trading days, with individual investors buying 4.832 billion yuan worth of shares, accounting for 65.17% of total purchases [1]. - The autonomous driving sector experienced a wave of limit-up stocks, including Sanyou Technology and Wanma Technology [1]. Historical Highs - A total of 27 stocks reached historical closing highs, with the pharmaceutical and biological sector leading with 8 stocks, followed by machinery equipment with 6 stocks, and retail with 2 stocks. The average increase for these stocks was 7.5% [2][3]. Institutional Activity - On May 29, 8 stocks saw net purchases exceeding 10 million yuan from institutions, with Wangzi New Materials leading at 41.11 million yuan. Other notable net purchases included Sifang Chuangxin and Jiusheng Electric, each exceeding 30 million yuan [4][5]. - Conversely, Xiongdi Technology faced a net sell-off exceeding 100 million yuan, with other stocks like Yong'an Pharmaceutical and Youfu Co., Ltd. also experiencing significant net selling [4]. Northbound Capital - Northbound capital saw significant net purchases, with Sifang Chuangxin receiving 149.95 million yuan, followed by Lakala with 89.21 million yuan. The largest net sell-offs were recorded for Xue Ren Co., Ltd. and Guangju Energy [6]. Company Announcements - Guangyang Co., Ltd. announced the termination of its planned acquisition of Ningbo Yinqiu Technology Co., Ltd. due to a lack of consensus among parties involved. The stock will resume trading on May 30 [7]. - Fengcai Technology is in the process of applying for an H-share listing on the Hong Kong Stock Exchange and has received a filing notice from the China Securities Regulatory Commission [7]. - Zhongke Xingtou announced that it has been suspended from participating in military procurement activities starting May 28, 2025 [7]. - Pingao Co., Ltd. signed a service contract worth 397 million yuan with Shenzhen Yuanmai for providing computing power resources [7]. - Zoomlion plans to issue asset-backed securities (ABS) up to 4 billion yuan and credit bonds up to 1 billion yuan [7]. Land Acquisition - Xiaoshangpin City successfully acquired a state-owned construction land use right in Hangzhou for 569 million yuan, intended for the Yiwu market project [8].

Group 1 - The core index, the China Securities Hong Kong Dividend Equal Weight Index (HK Dividend EW), reported a value of 2925.69 points, showing a monthly increase of 10.78%, a three-month increase of 5.02%, and a year-to-date increase of 3.83% [1] - The index consists of 30 securities selected from the Hong Kong Stock Connect, characterized by high cash dividend yields, stable dividends, and certain liquidity, calculated using equal weight to reflect the overall performance of high dividend yield securities [1] - The index's top ten holdings include China Unicom (4.23%), China People's Insurance Group (3.95%), CITIC Bank (3.94%), China Telecom (3.9%), Bank of China (3.82%), Minsheng Bank (3.82%), Yuehai Investment (3.82%), Bank of Communications (3.78%), Agricultural Bank of China (3.7%), and China Mobile (3.68%) [1] Group 2 - The industry composition of the index holdings shows that finance accounts for 36.88%, energy for 20.24%, industrials for 12.68%, communication services for 11.81%, materials for 9.32%, real estate for 5.25%, and utilities for 3.82% [2] - The index samples are adjusted semi-annually, with adjustments occurring on the next trading day after the second Friday of June and December, with a sample adjustment ratio generally not exceeding 20% [2] - In special circumstances, the index may undergo temporary adjustments, such as when a sample security is delisted or undergoes mergers, acquisitions, or splits [2]

Summary of the Conference Call for Yuehai Investment Company Overview - The conference call pertains to Yuehai Investment, focusing on its financial performance and strategic outlook for 2025. Key Points and Arguments Financial Performance - In Q1 2025, Yuehai Investment reported a loss of 17 million due to the impact of the distribution of Yuehai Zhidi, but future financial conditions are expected to improve as the company will no longer bear related financial impacts [2][4]. - The company's pre-tax profit increased by 2% and shareholder profit rose by 2.5%, despite a slight revenue decline of less than 1% [3]. Investment Property Valuation - The value of investment properties decreased by 10 million in Q1 2025, a smaller decline compared to 21 million in the same period last year, indicating a potential stabilization in the real estate market [2][5]. Capital Expenditure and Financial Costs - The company has been actively reducing capital expenditures and financial costs, with Q1 financial expenses decreasing by 77 million. It is anticipated that expenses will continue to decline throughout the year [2][6]. - Capital expenditure is planned to be 1.9 billion for 2024 and controlled within 2 billion for 2025, prioritizing debt repayment and dividends [2][8]. Water Pricing Adjustments - Water pricing adjustments are proceeding normally, with no significant impact on business operations. The company is actively pursuing favorable outcomes for water pricing negotiations at the Guangzhou Nansha Water Plant [2][7]. Revenue Trends - Water supply revenue in Shenzhen and Dongguan declined primarily due to a decrease in the RMB exchange rate and reduced water supply volumes. In contrast, Hong Kong saw a slight increase in supply volume, but the fee increase was limited [2][11]. Cash Flow and Business Segments - Operating cash flow is predominantly derived from the Chinese water business, accounting for approximately 80% of total cash inflow, although trade war pressures have affected high-end consumer segments [2][13][14]. - The mid-to-low-end market is performing relatively well, while high-end consumption is under pressure [2][15]. Debt Structure and Dividend Strategy - The company maintains a 65% dividend payout ratio and aims to reduce HKD-denominated debt, which currently constitutes a small percentage of total debt [2][22][23]. Future Outlook and Strategic Plans - The company is exploring acquisition opportunities for water assets but is selective, focusing on high-return projects [2][12]. - There are no immediate plans for significant new capital projects, with a focus on completing existing water projects [2][10]. Market Challenges - The company faces challenges in the high-end market due to economic pressures, while the mid-to-low-end market has growth limitations [2][19][20]. - The decline in rental rates for high-end commercial properties is attributed to reduced demand from high-end tenants [2][17]. Impact of External Factors - The decrease in electricity prices in Guangdong is a concern for the company's power generation assets, and there is a willingness to consider divesting these assets if suitable buyers are found [2][25]. Additional Important Information - The company has been preparing for future contract renewals and has gradually reduced investments in non-East River water projects over the past few years [2][24]. - The overall performance in Q1 2025 was stable, with clear impacts from external factors [2][26].

Financial Performance - The company reported a total revenue of HKD 1.2 billion for the fiscal year 2024, representing a 15% increase compared to the previous year[5]. - Revenue from continuing operations for 2024 was HKD 18,505,293, a decrease of 8.9% compared to HKD 20,322,478 in 2023[24]. - Net profit attributable to owners for 2024 was HKD 3,142,138, reflecting a slight increase of 0.6% from HKD 3,122,069 in 2023[24]. - Basic earnings per share for 2024 increased to HKD 0.4806 from HKD 0.4775 in 2023, marking a 0.6% growth[55]. - The gross profit margin improved to 40%, up from 35% in the previous year, due to better cost management[5]. - The total assets increased to HKD 5 billion, marking a 12% growth year-over-year[5]. - The total assets decreased by 3.1% to HKD 135,595,403 from HKD 139,965,972 in 2023[24]. - The company's equity totalled HKD 56,675,473 as of December 31, 2024, down from HKD 58,029,625 in 2023, indicating a decrease of 2.3%[133]. - The total liabilities decreased to HKD 78,919,930 in 2024 from HKD 81,936,347 in 2023, showing a reduction of 3.7%[133]. - The company reported a significant increase in distributable reserves to HKD 5,367,032,000 in 2024, up from HKD 3,484,663,000 in 2023, marking a growth of 54.0%[136]. Market Expansion and Strategy - The company expects a revenue growth guidance of 10-12% for the next fiscal year, driven by new product launches and market expansion[5]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2025[5]. - The company aims to strengthen its core business in water resources while expanding into high-value areas and improving operational efficiency across all business segments[62]. - The company is actively investing in water resource management, property investment, and infrastructure, aiming to strengthen its core business and maintain industry leadership[183]. - The company plans to enhance project acquisition efficiency and expand new business capabilities to further scale its operations[183]. Dividends and Shareholder Returns - The company declared a final dividend of HKD 0.0727 per share, reflecting a 5% increase from the previous year[5]. - The proposed final dividend for the year ending December 31, 2024, is HKD 0.0727 per share, combined with an interim dividend of HKD 0.2397 per share, totaling HKD 0.3124 for the year (2023: HKD 0.3104)[57]. - The company reported a mid-term dividend of HKD 0.2397 per share, an increase from HKD 0.1871 in 2023[128]. - The board proposed a final dividend of HKD 0.0727 per share for the year ending December 31, 2024, down from HKD 0.1233 in 2023[128]. Operational Efficiency and Technology - Investment in new technologies increased by 25%, totaling HKD 300 million, focusing on sustainable water management solutions[5]. - The company introduced a new water purification technology that is expected to reduce operational costs by 20%[5]. - The company is focusing on enhancing operational efficiency and employee accountability to improve market competitiveness and achieve high-quality development goals[106]. - The company is committed to optimizing product offerings and operational management to mitigate competition risks and enhance project profitability[103]. Risk Management and Governance - The company is actively monitoring macroeconomic conditions and capital market trends to adapt its strategies and maintain competitiveness amid external economic pressures[101]. - The company has implemented a dynamic monitoring system for foreign exchange risk exposure and will adjust strategies based on market conditions[100]. - The company emphasizes the importance of effective risk management for success in a complex and rapidly changing environment[196]. - The independent non-executive directors and audit committee regularly review the financial and operational performance of the group to ensure independence from major shareholders[147]. Human Resources and Corporate Culture - The total employee count as of December 31, 2024, was 10,759, down from 11,495 in 2023, with total salary expenses approximately HKD 2.337 billion, a decrease from HKD 2.502 billion in 2023[106]. - The company is enhancing its employee training programs to foster a learning organization and improve compliance and professional skills[107]. - The company is committed to a corporate culture that promotes integrity and transparency, with a zero-tolerance policy towards corruption and bribery[185]. Financial Liabilities and Loans - As of December 31, 2024, the total financial liabilities of the group were HKD 23.86 billion, a decrease from HKD 42.43 billion in 2023[94]. - The group recorded a net loss of HKD 25.27 million from fair value adjustments of investment properties, a decline from a net gain of HKD 230.12 million in 2023[90]. - The company is committed to ensuring compliance with loan agreements to avoid defaults and immediate repayment obligations[165]. - A loan of HKD 5 billion was secured on February 29, 2024, with an outstanding principal of HKD 4.5 billion as of December 31, 2024[172]. Corporate Governance - The board of directors consists of five executive directors, two non-executive directors, and four independent non-executive directors, with recent changes effective from March 25, 2025[191]. - The company emphasizes the importance of corporate governance and has adhered to the principles outlined in the Corporate Governance Code[186]. - The company has adopted a code of conduct for securities trading that aligns with the standards set out in the listing rules[189]. - Independent non-executive directors possess extensive experience in various industries, contributing valuable insights and governance knowledge[198].

Financial Performance - The group's unaudited revenue from continuing operations for the three months ended March 31, 2025, was HKD 4,617.39 million, a decrease of 0.7% compared to HKD 4,648.65 million in 2024[4] - The unaudited profit before tax from continuing operations increased by 2.0% to HKD 2,035.59 million, up from HKD 1,996.17 million in 2024[4] - The unaudited profit attributable to owners of the company from continuing operations was HKD 1,321.65 million, reflecting a slight increase from HKD 1,296.62 million in 2024[4] - The equity attributable to owners of the company decreased by 2.0% to HKD 40,812.24 million from HKD 41,658.02 million[4] - The net loss from fair value adjustments of investment properties was HKD 10 million, compared to a loss of HKD 21 million in 2024[6] Water Supply and Treatment - The total water supply for the East Shenzhen Water Supply Project was 549 million tons, a decrease of 8.8% from 602 million tons in 2024, generating revenue of HKD 1,734 million, down 1.5%[9] - The profit before tax for the East Shenzhen Water Supply Project increased by 2.1% to HKD 1,203 million compared to HKD 1,178 million in 2024[9] - The total water supply capacity of the group's subsidiaries and joint ventures reached 8,886,800 tons per day as of March 31, 2025, an increase from 8,786,800 tons per day in 2024[12] - The total wastewater treatment capacity of the group was 2,103,900 tons per day as of March 31, 2025, compared to 2,054,400 tons per day in 2024[12] - The total water supply capacity of ongoing projects is projected to reach 1,187,000 tons per day by March 31, 2025[13] Property Investment - Property investment income from Guangdong Tianhe City increased by 3.0% to HKD 429,018,000, compared to HKD 416,509,000 in 2024[14] - The pre-tax profit from property investment activities rose by 8.8% to HKD 270,631,000, up from HKD 248,632,000 in 2024[14] - The total income from the group's property investment business was primarily driven by rental income, reflecting improvements in average rental levels and occupancy rates[14] Department Stores and Hotel Management - The average occupancy rate of the group's department stores decreased to 94.3% from 97.1% in 2024, with total revenue dropping by 17.6% to HKD 107,934,000[17] - The revenue from department stores for the three months ended March 31, 2025, decreased by 17.6% to HKD 95,840,000 compared to HKD 107,934,000 in 2024[18] - The average room rate for the Yuehai Sheraton Hotel was HKD 1,168, down from HKD 1,248 in 2024, while the average occupancy rate was 94.8%, slightly down from 95.4% in 2024[19] - The hotel management business revenue increased by 6.0% to HKD 172,668,000, but the pre-tax profit decreased by 19.4% to HKD 30,021,000 compared to HKD 37,266,000 in 2024[20] Energy and Construction - Electricity sales volume from the Yuehai Energy project increased by 21.9% to 773 million kWh, but revenue decreased by 7.1% to HKD 362,952,000 due to lower electricity prices and currency exchange rate impacts[21] - The sales volume from Guangdong Yuedian Jinghai Power Company decreased by 36.5% to 2 billion kWh, leading to a 40.0% revenue drop to HKD 930,127,000, with a pre-tax loss of HKD 25,644,000[22] - The average daily toll traffic on the Xingliu Expressway decreased by 9.1% to 27,039 vehicles, resulting in a toll revenue decrease of 7.8% to HKD 154,318,000[23] - Cumulative construction costs for the Yinping project reached approximately RMB 2.08 billion (about HKD 2.25 billion), with a pre-tax profit decrease of 1.0% to HKD 33,572,000[25] - The construction services revenue for the period was HKD 94,889,000, significantly higher than HKD 68,903,000 in 2024[13] Market Conditions and Strategic Focus - The geopolitical tensions and trade protectionism have intensified since 2025, impacting global economic recovery[28] - China's export growth has slowed, but domestic macro policies are becoming more proactive, leading to a recovery in domestic demand[28] - The company aims to focus on core business stability and risk management while creating long-term value for stakeholders[28] - The company will extend its water resources segment into high value-added areas and promote business structure transformation[28] - The company is actively looking for investment and acquisition opportunities related to the Guangdong-Hong Kong-Macao Greater Bay Area development plan[28] Audit and Financial Reporting - The unaudited financial data for the three months ending March 31, 2025, has been reviewed by the company's audit committee[29] - Shareholders and potential investors are advised that the information provided is unaudited and should not be considered as an indicator of financial performance[30]

Core Viewpoint - Starlight Co., Ltd. (002076) will be subject to delisting risk warning starting April 29, following a one-day suspension on April 28, with its stock trading limit set at 5% [1][3]. Financial Performance - For the fiscal year 2024, Starlight reported an audited total revenue of 191.89 million yuan, a 27.22% increase from 150.83 million yuan in 2023, but still recorded a net loss of 30.98 million yuan, a 136.35% decline compared to a profit of 24.63 million yuan in 2022 [4][5]. - The company’s net profit attributable to shareholders was -30.98 million yuan, and the net profit after deducting non-recurring gains and losses was -26.97 million yuan, indicating a significant deterioration in financial health [5][11]. - The total assets at the end of 2024 were reported at 611.99 million yuan, reflecting a 15.62% increase from 529.31 million yuan in 2023, while the net assets attributable to shareholders decreased by 8.85% to 289.90 million yuan [5][6]. Regulatory Actions - The Guangdong Securities Regulatory Bureau issued a warning letter to Starlight for failing to disclose the risk of delisting within one month after the fiscal year-end, which is a violation of disclosure regulations [3][7][13]. - The warning letter highlighted discrepancies between the company's previous earnings forecast and the actual results, indicating a significant change in profit and loss status [7][13]. Business Operations - Starlight's business includes LED lighting, UV disinfection, automotive lighting, lithium battery production equipment, and information security and system integration [6]. - The company aims to revoke the delisting risk warning by focusing on core business areas, improving product profit margins, enhancing business cooperation, and increasing operational efficiency in 2025 [6].

Summary of the Conference Call for Yuehai Investment Company Overview - **Industry**: Water Supply Industry - **Core Business**: Supply of water to Hong Kong, contributing nearly 90% of profits [1][3][4] Key Points and Arguments Financial Performance - **Revenue Growth**: The average annual increase in water supply prices to Hong Kong over the past decade is approximately 2.2%, significantly higher than many domestic cities [1][3] - **Valuation**: Current valuation is around 9 times earnings with a dividend yield of about 7%, while the price-to-book (PB) ratio is below 1. The company is considered undervalued compared to overseas market valuations of 25-30 times [1][5] - **Dividend Policy**: Historically maintains a high dividend payout ratio of 65%, with expected dividends in 2025 likely to exceed 7% [1][6] Operational Focus - **Core Business Focus**: After divesting from Yuehai Land, the company will concentrate more on its water supply business, which is expected to enhance profitability [1][6] - **Debt Management**: The net financial debt to net asset value ratio is projected to decrease from 77% in 2023 to 31% in 2024, indicating improved financial health [1][9] Cash Flow and Capital Expenditure - **Free Cash Flow**: Expected to rise significantly to 7.3 billion HKD in 2024, a 29% year-on-year increase, with capital expenditures decreasing substantially [1][10] - **Cash Flow Stability**: The company has maintained a stable cash flow from its core operations, providing a solid foundation for high dividends [1][10] Market Position and Competitive Advantage - **Market Dynamics**: The water supply sector is characterized by stable performance due to the counter-cyclical nature of water demand and pricing reforms that link prices to costs [2][3] - **Core Asset Contribution**: The Dongjiang Water Project is a key asset, contributing significantly to overall profits, with a stable average water supply price of 6.11 HKD per ton in 2023 [3][11] Future Outlook - **Profit Recovery**: The company anticipates a recovery in net profit to over 4 billion HKD in 2025, primarily driven by its water resource business [1][7] - **Long-term Growth**: Expected net profits for 2025 to 2027 are projected at 4.274 billion, 4.357 billion, and 4.453 billion HKD respectively, indicating a strong recovery and stable growth trajectory [22] Investment Value - **Dividend Yield and Valuation Potential**: The company’s high dividend yield and undervaluation relative to its assets suggest significant investment potential, especially if market conditions favor high-dividend assets [5][25] - **Market Positioning**: The company is well-positioned to benefit from ongoing market reforms in water pricing, which could enhance profitability and cash flow [17][24] Additional Important Insights - **Debt Structure Improvement**: The company is gradually reducing its reliance on floating-rate loans and increasing its proportion of RMB loans to mitigate currency risk [1][9] - **Regulatory Environment**: The company has a favorable position regarding the renewal of its water supply contracts, which is expected to be negotiated with the provincial government [14] This comprehensive analysis highlights Yuehai Investment's strong market position, financial stability, and potential for future growth, making it a compelling investment opportunity in the water supply sector.

Financial Performance - Revenue from continuing operations for the year ended December 31, 2024, was HKD 18,505,293 thousand, a decrease of 8.9% compared to HKD 20,322,478 thousand in 2023[3] - Profit before tax increased by 1.1% to HKD 6,493,854 thousand from HKD 6,425,773 thousand in the previous year[4] - The profit attributable to owners of the company from continuing operations was HKD 4,102,893 thousand, down from HKD 4,221,183 thousand, reflecting a decrease of 2.8%[5] - Basic earnings per share increased by 0.6% to HKD 48.06 cents from HKD 47.75 cents[6] - Total comprehensive income for the year was HKD 1,885,557 thousand, compared to HKD 2,041,687 thousand in 2023, indicating a decrease of 7.7%[7] - The company reported a loss from discontinued operations of HKD 1,493,331 thousand, an improvement from a loss of HKD 1,953,635 thousand in the previous year[4] - The fair value change of investment properties resulted in a loss of HKD 67,821 thousand, compared to a gain of HKD 100,198 thousand in 2023[4] - The company reported a total customer contract revenue of HKD 16,223,663 thousand in 2024, down from HKD 18,182,355 thousand in 2023, representing a decrease of about 11%[48] - The group's consolidated profit attributable to owners for 2024 was HKD 3.142 billion, a 0.6% increase from HKD 3.122 billion in 2023[81] - The group's total revenue for the year ended December 31, 2024, was HKD 18.505 billion, a decrease of 8.9% from HKD 20.322 billion in 2023[90] Dividends - The proposed final dividend is HKD 7.27 cents, down from HKD 12.33 cents in the previous year, while the interim dividend increased to HKD 23.97 cents from HKD 18.71 cents[3] - The company proposed a special dividend in the form of a distribution of shares in Yuehai Land Holdings Limited, amounting to 1,261,799,423 shares, representing about 99.9% of its holdings[13] - The board proposed a final dividend of HKD 0.0727 per share, bringing the total dividend for the year to HKD 0.3124, compared to HKD 0.3104 in 2023[82] - The company proposed a special dividend of 0.193 shares of Yuehai Land for every share held, pending shareholder approval[67] Assets and Liabilities - Non-current assets decreased to HKD 74,846,936 thousand from HKD 84,688,161 thousand, a decline of 11.6%[9] - Cash and bank balances stood at HKD 12,154,029 thousand, slightly down from HKD 12,593,616 thousand[9] - Total current assets increased to HKD 60,748,467 thousand in 2024 from HKD 55,277,811 thousand in 2023, representing an increase of approximately 9%[11] - Total current liabilities decreased significantly to HKD 55,737,907 thousand in 2024 from HKD 45,666,192 thousand in 2023, a reduction of about 22%[11] - Net current assets decreased to HKD 5,010,560 thousand in 2024 from HKD 9,611,619 thousand in 2023, a decline of approximately 48%[11] - Total non-current liabilities decreased to HKD 23,182,023 thousand in 2024 from HKD 36,270,155 thousand in 2023, a reduction of about 36%[11] - Total equity decreased to HKD 56,675,473 thousand in 2024 from HKD 58,029,625 thousand in 2023, a decline of approximately 2.3%[11] - The company’s total assets less current liabilities decreased to HKD 79,857,496 thousand in 2024 from HKD 94,299,780 thousand in 2023, a decline of approximately 15%[11] - The company’s bank and other borrowings decreased to HKD 16,531,830 thousand in 2024 from HKD 27,175,184 thousand in 2023, a reduction of about 39%[11] - The company’s reserves decreased slightly to HKD 32,691,847 thousand in 2024 from HKD 32,836,033 thousand in 2023, a decline of approximately 0.4%[11] - The company’s lease liabilities increased to HKD 294,378 thousand in 2024 from HKD 558,113 thousand in 2023, an increase of approximately 47%[11] Segment Performance - The water resources segment generated revenue of HKD 13,511,006, a decrease of 11.9% from HKD 15,329,381 in 2023[26] - The property investment segment reported revenue of HKD 1,576,863, an increase of 10.5% from HKD 1,426,843 in 2023[26] - The department store operations segment achieved revenue of HKD 861,612, up 13.6% from HKD 758,786 in 2023[26] - The total revenue from continuing operations for the water resources segment was HKD 13,593,359, compared to HKD 15,405,092 in 2023, reflecting a decline[26] - The total profit from continuing operations for the water resources segment was HKD 5,643,561, slightly up from HKD 5,593,782 in 2023[26] - The segment performance for power generation showed a profit of HKD 147,805 in 2024, up from HKD 105,664 in 2023, indicating an increase of about 39.8%[28] - The segment performance for the bridge and road segment showed a profit of HKD 438,316 in 2024, down from HKD 500,713 in 2023, a decline of approximately 12.5%[28] - The total revenue from the hotel management segment remained relatively stable at HKD 648,401 in 2024 compared to HKD 648,877 in 2023, a slight decrease of about 0.1%[28] - Revenue from the water resources segment in mainland China was HKD 4,539,512 thousand in 2024, slightly up from HKD 4,532,910 thousand in 2023[48] - Revenue from the water resources segment in mainland China decreased to HKD 12,637,331, down 12.8% from HKD 14,491,900 in 2023[49] - The total revenue from the property investment segment in mainland China increased to HKD 239,958, up 17.6% from HKD 203,992 in 2023[49] - The total revenue from the department store operations segment in mainland China rose to HKD 824,339, an increase of 15.7% compared to HKD 712,756 in 2023[49] Operational Insights - The company operates seven reportable segments, including water resources, property investment, department store operations, power generation, hotel management, road and bridge operations, and others[25] - The company aims to enhance transparency regarding supplier financing arrangements and their impact on liabilities and cash flow risks[22] - The company is focused on optimizing products and enhancing efficiency to mitigate market competition risks and improve project profitability[138] - The group plans to focus on enhancing operational management in the water resources sector and improving brand building[85] - The hotel management business is expanding efforts in the Hong Kong market, including leasing a high-end hotel[85] - The group aims to leverage the "Guangdong-Hong Kong-Macao Greater Bay Area Development Plan" for potential growth opportunities[88] - The outlook for 2025 anticipates continued economic resilience despite external challenges, with a focus on core business stability and new growth points[86] - The group will concentrate resources on high-tech and high-value areas within the water business while enhancing the operational level of existing assets[88] Financial Management - The financial expenses decreased to HKD (892,075) in 2024 from HKD (980,802) in 2023, indicating a reduction of approximately 9.0%[30] - The total tax expense for the year was HKD 1,852,764, an increase of 11.7% from HKD 1,658,283 in 2023[57] - The net loss from fair value adjustments of investment properties for the year was HKD 68 million, while net foreign exchange gains were HKD 39 million, and net finance costs decreased to HKD 698 million from HKD 832 million in 2023[91] - The company has implemented dynamic monitoring of foreign exchange risk exposure and will adjust strategies based on market conditions[137] - The total financial borrowings for ongoing operations as of December 31, 2024, were HKD 23.862 billion, down from HKD 42.428 billion in 2023, with 81.1% in RMB[129] - The group's capital debt ratio as of December 31, 2024, was 30.9%, a significant decrease from 77.3% in 2023, indicating improved financial stability[130] - The EBITDA to incurred financial expenses ratio for ongoing operations was 10.5 times as of December 31, 2024, compared to 9.4 times in 2023[130] Employee and Governance - The total number of employees as of December 31, 2024, is 10,759, a decrease from 11,495 in 2023[141] - The total salary expenditure for the year is approximately HKD 2,337,464,000, down from HKD 2,502,471,000 in 2023[141] - The company emphasizes a competitive salary policy aligned with its development goals and performance[142] - The company is committed to enhancing employee training and development to improve overall competency and compliance awareness[142] - The board of directors believes the company has complied with the corporate governance code during the fiscal year[144] Miscellaneous - The company did not engage in any sale and leaseback transactions, thus the recent accounting standards revisions had no significant impact on the financial statements[22] - The company has not applied any new accounting standards or interpretations that have not yet become effective during the reporting period[22] - The adjustments to the classification of liabilities as current or non-current have been applied retrospectively, clarifying the classification of liabilities that can be settled with equity instruments[22] - The company has not purchased, sold, or redeemed any listed securities during the fiscal year ending December 31, 2024[146] - The annual performance announcement is available on the company's website and the Hong Kong Stock Exchange website[150]