CK ASSET(01113)2021-08-19 08:42Financial Performance - The company's profit attributable to shareholders for the six months ended June 30, 2021, was HKD 8,355 million, representing a 30.8% increase from HKD 6,360 million in the same period of 2020[5]. - The earnings per share for the first half of 2021 was HKD 2.25, compared to HKD 1.72 in the first half of 2020, reflecting a growth of 30.8%[6]. - The group reported a profit attributable to shareholders of HKD 8,355 million for the first half of 2021, up from HKD 6,360 million in 2020, representing a growth of 31.3%[135]. - The group's total revenue for the first half of 2021 was HKD 12,332 million, compared to HKD 12,209 million in the same period of 2020, reflecting a slight increase of 1.0%[135]. - The total revenue for 2021 was HKD 3,320 million, an increase of 35% compared to HKD 2,456 million in 2020[46]. - Total comprehensive income for the six months ended June 30, 2021, was HKD 10,225 million, significantly higher than HKD 5,059 million in 2020, marking an increase of around 101.5%[126]. Dividends and Share Repurchase - The board declared an interim dividend of HKD 0.41 per share for 2021, up 20.6% from HKD 0.34 per share in 2020[7]. - The interim dividend declared was HKD 0.41 per share, totaling HKD 1,494 million, compared to HKD 1,256 million in 2020, an increase of 18.9%[138]. - The group repurchased a total of 380,000,000 shares at a total cost of HKD 19,380,000,000 on June 4, 2021[85]. - During the six months ended June 30, 2021, the company repurchased 3,150,000 shares at a total cost of HKD 163,423,500[85]. Acquisitions and Investments - The company acquired interests in UK Power Networks, Northumbrian Water, Wales & West Utilities, and Dutch Enviro Energy for HKD 17 billion, funded by issuing 333,333,333 shares[9]. - The total cost of the acquisition and share buyback was approximately HKD 19.38 billion, which was well-supported by independent shareholders[9]. - The group completed the acquisition of a 20% stake in UK Power Networks and other utilities for HKD 17,000 million, issuing 333,333,333 shares at HKD 51 each[145]. - The group continues to explore acquisition opportunities in the market, although there are risks associated with due diligence and integration of acquired businesses[121]. Market and Economic Conditions - The ongoing challenges posed by COVID-19 variants continue to impact the business environment, but the company is focused on improving performance[8]. - The local real estate market showed support due to a low-interest environment and continued user demand, with the Sea to Sky residential project sold out during the period[10]. - The GDP of mainland China grew by 12.7% year-on-year in the first half of the year, supported by a reduction in the reserve requirement ratio to release approximately RMB 1 trillion in long-term funds[17]. - Hong Kong's GDP turned positive with a year-on-year increase of 7.8% in the first half, aided by rising vaccination rates and government stimulus measures[17]. Operational Performance - The rental income of the group continues to be affected by the business environment and market consumption confidence, with the rental rate remaining under pressure[11]. - The hotel operations showed slight revenue growth, with the overall business benefiting from long-term lease agreements despite strict travel restrictions in Hong Kong[12]. - Aircraft leasing profits decreased by 18% compared to the same period last year, with over 95% of the fleet being narrow-body aircraft, which are more stable during the pandemic[13]. - The group achieved property sales revenue of HKD 14.79 billion in the first half of 2021, a decrease of 24.5% compared to HKD 19.48 billion in 2020[22]. Risks and Challenges - The ongoing COVID-19 pandemic continues to pose significant risks to the global economy, affecting the company's operations and financial performance[90]. - The group faces foreign exchange risk due to operations in multiple countries, which could impact financial status and operational performance[95]. - Climate change poses long-term risks to the group's assets and operations, potentially leading to business disruptions and financial losses[101]. - The group faces significant risks from natural disasters, which could adversely affect its business, financial condition, operational performance, or development prospects[102]. Corporate Governance - The board consists of 14 directors, including 8 executive directors and 6 independent non-executive directors, ensuring compliance with listing rules[75]. - The company has adopted a whistleblowing policy to handle potential misconduct and has established policies for handling confidential information and securities trading[74]. - The audit committee, consisting of 6 independent non-executive directors, reviewed the group's financial reporting system and risk management effectiveness for the six months ending June 30, 2021[79]. - The company emphasizes transparency and accountability in its governance practices, with regular reviews and updates to its governance policies[74].