CK ASSET(01113)2024-08-15 08:30Financial Performance - For the six months ended June 30, 2024, the unaudited profit before property revaluation was HKD 6,726 million, a decrease of 9.5% compared to HKD 7,576 million in the same period of 2023[3]. - Shareholders' profit for the same period was HKD 8,603 million, down 15.3% from HKD 10,331 million in 2023, with earnings per share of HKD 2.44 compared to HKD 2.88 in 2023[4]. - Total group revenue for the six months was HKD 22.01 billion, a decrease of 10.7% from HKD 24.61 billion in 2023[57][60]. - The group's total comprehensive income for the period was HKD 8.38 billion, down from HKD 11.81 billion in the previous year[58]. - The group reported a profit attributable to shareholders of HKD 8,603 million, down 16.7% from HKD 10,331 million in 2023[62]. Dividends and Share Repurchase - The interim dividend declared for 2024 is HKD 0.39 per share, a decrease of 9.3% from HKD 0.43 per share in 2023[5]. - The company declared an interim dividend of HKD 0.39 per share, compared to HKD 0.43 per share in 2023, with a total interim dividend payout of HKD 1.37 billion[57][60]. - The group repurchased 48,656,000 shares, utilizing over HKD 3.5 billion since 2023, reflecting confidence in future business growth[6]. - The company repurchased 48,656,000 shares at a total cost of HKD 1,538 million during the period[64]. - The board believes that the share repurchase will enhance the net asset value and/or earnings per share, benefiting the company and its shareholders[49]. Revenue Streams - The group recorded an increase in rental income from properties compared to the same period in 2023, despite weak demand in local office leasing[8]. - The hotel and serviced apartment business saw revenue and income growth compared to 2023, benefiting from improved visitor numbers[9]. - The infrastructure and utility assets business recorded revenue growth, maintaining a stable performance in a high-interest environment[11]. - Revenue from property sales decreased to HKD 4.63 billion from HKD 8.24 billion in 2023, while rental income increased to HKD 3.04 billion from HKD 2.79 billion[60]. - The hotel and serviced suite business revenue for the first half of 2024 is HKD 2.130 billion, up from HKD 1.950 billion in 2023, with an average occupancy rate of 81%[29]. Investments and Acquisitions - The group acquired 40% and 20% stakes in Phoenix Energy and UU Solar, respectively, and is set to complete a 40% investment in an onshore wind power asset portfolio by September[12]. - The acquisition of Phoenix Energy was completed in April 2024 for approximately GBP 31.2 million (around HKD 3.04 billion), enhancing the group's renewable energy portfolio[18]. - The group entered into an agreement to acquire UU Solar for approximately GBP 8.8 million (around HKD 859 million) in May 2024, further expanding its renewable energy assets[18]. - An agreement was made in August 2024 to acquire a UK onshore wind asset portfolio for approximately GBP 35 million (around HKD 3.56 billion), pending certain conditions[18]. Market Conditions and Economic Indicators - The group recorded a 5% year-on-year economic growth in mainland China during the first half of 2024, supporting the goal of high-quality development[14]. - Hong Kong's GDP grew by 3.3% year-on-year in Q2 2024, highlighting the city's role as a financial center and its importance in the Greater Bay Area[14]. - The confirmed property sales revenue for the first half of 2024 is HKD 4.635 billion, a decrease from HKD 8.246 billion in 2023, primarily due to a weak economic environment in Hong Kong and mainland China[20]. Financial Position and Debt - The group's net debt to total capital ratio is approximately 5.5%, indicating a strong financial position[14]. - The group's total bank and other borrowings amounted to HKD 56.1 billion, an increase of HKD 1.2 billion from December 31, 2023[41]. - The net debt as of June 30, 2024, was HKD 23.3 billion, with a net debt to total equity ratio of approximately 5.5%[42]. - The group's total borrowings decreased to HKD 5,821 million in 2024 from HKD 7,235 million in 2023, a reduction of 19.5%[62]. Sustainability and Corporate Governance - The group has achieved significant progress in mitigating climate change, with a commitment to reach net-zero emissions as per the Science Based Targets initiative (SBTi) and has submitted short-term and net-zero reduction targets[13]. - The group aims to achieve BEAM Plus Platinum certification for all wholly-owned new commercial property projects by 2030 or earlier, reflecting its commitment to sustainable development[13]. - The company has adhered to the corporate governance code and principles, ensuring high-quality board oversight and accountability to shareholders[50]. - The audit committee, composed entirely of independent non-executive directors, reviewed the mid-term results for the six months ending June 30, 2024[51]. Employee and Operational Costs - The group employs approximately 58,000 staff, with related employee costs (excluding director remuneration) amounting to HKD 6.54 billion[46]. - The group's operating costs included property and related costs of HKD 3.26 billion, English pub operations costs of HKD 6.45 billion, and salaries and related expenses of HKD 5.46 billion[57].