新鸿基公司(00086) - 2024 - 中期财报

Financial Performance - Revenue for the first half of 2024 was HKD 1,915.8 million, a decrease of 2.7% compared to HKD 1,968.3 million in the same period last year[6] - Profit attributable to shareholders was HKD 75.4 million, a significant turnaround from a loss of HKD 287.5 million in the first half of 2023[7] - Total revenue for the six months ended June 30, 2024, was HKD 1,939.2 million, a decrease from HKD 2,014.8 million in the same period in 2023[148] - Net profit attributable to the company's shareholders for the six months ended June 30, 2024, was HKD 75.4 million, compared to a net loss of HKD 287.5 million in the same period in 2023[148] - Basic earnings per share for the six months ended June 30, 2024, were HKD 3.9, compared to a loss per share of HKD 14.7 in the same period in 2023[148] - The company's total comprehensive income for the six months ended June 30, 2024, was HKD 146.2 million, compared to a total comprehensive loss of HKD 307.7 million in the same period in 2023[148] - The company's interest income for the six months ended June 30, 2024, was HKD 1,817.7 million, a decrease from HKD 1,890.0 million in the same period in 2023[148] - The company's financial assets impairment loss for the six months ended June 30, 2024, was HKD 427.8 million, an increase from HKD 310.8 million in the same period in 2023[148] - The company's management expenses for the six months ended June 30, 2024, were HKD 511.6 million, an increase from HKD 503.7 million in the same period in 2023[148] - The company's profit before tax for the six months ended June 30, 2024, was HKD 307.4 million, compared to HKD 36.5 million in the same period in 2023[148] - Pre-tax profit increased significantly to HKD 307.4 million in H1 2024 from HKD 36.5 million in H1 2023, a 742% increase[171] - Other income increased to HKD 98.1 million in H1 2024 from HKD 78.3 million in H1 2023, a 25.3% growth[178] - Other losses increased to HKD 55.1 million in H1 2024 from HKD 24.0 million in H1 2023, a 129.6% rise[180] - Current tax expenses for Hong Kong decreased to HKD 78.9 million from HKD 97.2 million in the previous year, while China's current tax increased slightly to HKD 2.2 million from HKD 1.8 million[185] - Deferred tax expenses decreased to HKD 41.8 million from HKD 68.3 million, contributing to a total tax expense of HKD 122.9 million, down from HKD 167.3 million[185] - Basic earnings per share improved to HKD 75.4 million from a loss of HKD 287.5 million in the previous year, with weighted average shares remaining stable at 1,957.2 million[189] Asset and Liability Management - Total assets of the group amounted to approximately HKD 39.5 billion as of June 30, 2024[3] - Total assets decreased from HKD 31,423.1 million to HKD 29,639.8 million compared to the previous period[154] - Net current assets increased to HKD 10,270.3 million from HKD 11,431.9 million[152] - Cash and cash equivalents decreased from HKD 6,462.1 million to HKD 5,428.0 million[152] - Total equity decreased slightly from HKD 24,395.6 million to HKD 24,264.7 million[156] - Non-current liabilities decreased significantly from HKD 7,027.5 million to HKD 5,375.1 million[152] - Retained earnings decreased from HKD 12,831.1 million to HKD 12,633.3 million[156] - Bank and other borrowings under current liabilities increased from HKD 5,495.4 million to HKD 6,171.0 million[152] - Investment properties increased slightly from HKD 1,197.7 million to HKD 1,233.4 million[152] - Property and equipment decreased from HKD 402.1 million to HKD 342.5 million[152] - Deferred settlement borrowings decreased to HKD 1,859.9 million as of June 30, 2024, from HKD 3,484.4 million as of December 31, 2023[169] - The company's capital net debt ratio decreased to 33.3% as of June 30, 2024, down from 38.6% at the end of 2023[97] - Total borrowings decreased by 8.2% to HKD 13,687.3 million as of June 30, 2024, with 64.2% due within one year[98] - Asset return ratio improved to 0.9% as of June 30, 2024, compared to -0.5% at the end of 2023[101] - The company's right-of-use assets increased to HKD 296.4 million, with office and retail space accounting for HKD 292.6 million of the total[192] - Lease expenses for the period included depreciation of right-of-use assets at HKD 62.8 million and interest on lease liabilities at HKD 8.2 million[193] - The company's financial assets measured at fair value totaled HKD 12,758.9 million, with non-current assets making up HKD 8,765.3 million of the total[196] - Financial liabilities measured at fair value amounted to HKD 402.8 million, with current liabilities accounting for HKD 293.4 million[196] - The fair value of financial assets through other comprehensive income is HKD 192.3 million, including HKD 25.4 million for Hong Kong listed equity securities and HKD 158.4 million for overseas listed equity securities[199] - The fair value of financial assets through profit or loss totals HKD 13,834.7 million, with HKD 9,711.4 million in non-listed overseas investment funds[199] - Non-current assets account for HKD 9,470.9 million, while current assets amount to HKD 4,363.8 million[199] - The fair value of financial liabilities through profit or loss is HKD 367.6 million, including HKD 100.3 million for quoted futures and options[199] - Non-current liabilities are HKD 111.6 million, and current liabilities are HKD 256.0 million[199] Business Segment Performance - The credit business contributed HKD 425.3 million in pre-tax profit, a decrease of 30.9% compared to HKD 615.2 million in the first half of 2023[13] - Investment management pre-tax loss narrowed significantly to HKD 358.4 million from HKD 861.4 million in the first half of 2023[13] - Fund management achieved a pre-tax profit of HKD 1.3 million, with assets under management reaching a record high of USD 1.2 billion[12] - Operating costs decreased by 1.1% to HKD 679.0 million, reflecting improved operational efficiency in the consumer finance segment[12] - Revenue for the first half of 2024 was HKD 1,567.7 million, a decrease of 3.7% year-on-year and 2.2% quarter-on-quarter[16] - Net loan balance decreased by 2.7% year-on-year to HKD 10,346.4 million, while total loan balance decreased by 2.3% to HKD 10,920.4 million[16][19] - Operating costs decreased by 6.1% year-on-year to HKD 500.2 million, driven by cost rationalization measures and a shift from unsecured to secured lending in the mainland China market[19] - Net impairment losses increased by 31.6% year-on-year to HKD 386.3 million, reflecting the deteriorating economic environment and cautious provisioning[16][19] - The SIM credit card, launched in November 2023, achieved a cumulative transaction volume of HKD 1 billion by June 2024, with outstanding loan balances increasing monthly[26] - The company's cost-to-income ratio improved to 31.9% in the first half of 2024, down from 32.7% in the same period last year[16] - The annualized net impairment loss ratio increased to 7.0% of average loan balances, up from 5.1% in the first half of 2023[21] - The company's loan approval rate decreased as it tightened credit standards in response to rising bankruptcy applications and changing consumer behavior[26] - Total loan balance in mainland China decreased to HKD 1,928.5 million in H1 2024 from HKD 2,096.6 million in H1 2023, a decline of 8.0%[30] - New loans issued in mainland China during H1 2024 amounted to HKD 1,660.7 million, a 46.1% increase compared to H1 2023[30] - Loan return rate in mainland China dropped to 18.8% in H1 2024 from 22.9% in H1 2023[30] - Write-off rate in mainland China improved significantly to 1.8% in H1 2024 from 9.9% in H1 2023[30] - Mortgage loan business revenue decreased by 15.0% to HKD 124.2 million in H1 2024 compared to H1 2023[32] - Operating costs for mortgage loan business reduced by 17.0% to HKD 25.3 million in H1 2024[32] - Pre-tax contribution from mortgage loan business declined by 65.1% to HKD 25.0 million in H1 2024[32] - Total loan balance for mortgage business decreased by 15.0% to HKD 2,299.3 million in H1 2024[32] - Consumer finance segment revenue decreased to HKD 1,567.7 million in H1 2024 from HKD 1,628.6 million in H1 2023, a decline of 3.7%[171] - Total external customer revenue decreased slightly to HKD 1,915.8 million in H1 2024 from HKD 1,968.3 million in H1 2023, a 2.7% drop[171] - Revenue from Hong Kong increased to HKD 1,726.2 million in H1 2024 from HKD 1,682.4 million in H1 2023, a 2.6% growth[177] - Revenue from Mainland China decreased to HKD 189.6 million in H1 2024 from HKD 285.9 million in H1 2023, a 33.7% decline[177] - Financial asset impairment losses increased to HKD 427.8 million in H1 2024 from HKD 310.8 million in H1 2023, a 37.6% rise[179] - Investment property fair value losses increased to HKD 48.1 million in H1 2024 from HKD 23.4 million in H1 2023, a 105.6% rise[180] - Interest income decreased to HKD 1,817.7 million in H1 2024 from HKD 1,890.0 million in H1 2023, a 3.8% decline[171] Investment Performance - Alternative investments and real estate recorded unrealized gains of HKD 172.2 million in H1 2024, compared to losses of HKD 99.5 million in H1 2023[37] - Pre-tax loss narrowed by 58.4% to HKD 358.4 million in H1 2024 compared to H1 2023[37] - Public market investments recorded a loss of 1.0% in H1 2024, with corporate holdings contributing to a loss of 22.2 million HKD[43][46] - Alternative investments generated a return of 0.1% in H1 2024, with private equity external funds returning 0.4% and direct/co-investment projects losing 3.0%[43][53] - Real estate investments achieved a return of 2.6% in H1 2024, with a gain of 63.3 million HKD[43] - Corporate holdings by region: 54.2% in Mainland China, 10.0% in Switzerland, and 8.9% in Australia[52] - Private equity holdings by region: 31.5% in Greater China, 31.3% in North America, and 15.7% in Asia[62] - Hedge funds returned 4.6% in H1 2024, with persistent funds contributing 5.8% and terminated funds losing 5.6%[53] - Special opportunities investments returned 2.3% in H1 2024, with a gain of 16.6 million HKD[53] - Corporate holdings by industry: 25.6% in financials, 24.1% in technology, media, and telecom, and 17.1% in consumer discretionary[50] - Private equity holdings by industry: 39.3% in technology, media, and telecom, 19.0% in financial and insurance services, and 17.6% in diversified industries[60] - Hedge fund holdings by strategy: 40.6% in market neutral, 33.2% in long/short equity, and 9.9% in convertible arbitrage[66] - Real estate investment portfolio valuation increased to HKD 2,502.4 million as of June 30, 2024, up from HKD 2,413.5 million at the end of 2023[73] - Real estate division achieved a 2.6% return, driven by strong recovery in EU hotel investments and robust performance in Asia-Pacific real estate lending[73] - Asset under management (AUM) reached a record USD 1,195 million as of June 30, 2024, with net cash inflows of USD 132 million and market gains of USD 99 million[87] - External capital accounted for 67.2% of total AUM, an increase of 4.4 percentage points compared to the end of 2023[87] - The company's funds and fund partners achieved strong growth in AUM, reaching USD 1.2 billion, driven by capital inflows and market performance[78] - The company's real estate holdings are diversified, with 66.6% in Hong Kong, 27.7% in the EU, and 4.4% in the UK[77] - The company's real estate portfolio is allocated as 43.0% office, 31.5% hotel, and 25.5% residential properties[75] Cash Flow and Financing Activities - The group repurchased USD 27.8 million worth of medium-term notes during the period, bringing the total repurchased since 2022 to USD 147.1 million[8] - Operating cash flow from activities increased to HKD 1,494.6 million in H1 2024, up from HKD 1,363.1 million in H1 2023[160] - Interest received decreased to HKD 1,781.4 million in H1 2024 from HKD 1,893.6 million in H1 2023[160] - Net cash used in investing activities was HKD 958.9 million in H1 2024, compared to net cash generated of HKD 946.1 million in H1 2023[160] - Net cash used in financing activities increased to HKD 1,553.3 million in H1 2024 from HKD 1,308.1 million in H1 2023[160] - Cash and cash equivalents decreased by HKD 1,017.6 million in H1 2024, compared to an increase of HKD 1,001.1 million in H1 2023[160] - The company repurchased USD 24.4 million of 5.75% notes due November 2024 and USD 3.4 million of 5.00% notes due September 2026[102] - The company committed EUR 21.5 million to a joint venture as of June 30, 2024, with an additional commitment of EUR 54.2 million post-reporting period[104] - The company repurchased a total of 10,000 shares during the six months ended June 30, 2024, with a total consideration of HKD 23,550 (excluding fees)[137][138] - The company repurchased USD 24,434,000 of 5.75% interest-bearing guaranteed notes due November 2024 and USD 3,386,000 of 5.00% interest-bearing guaranteed notes due September 2026, both issued by Sun Hung Kai & Co. (BVI) Limited[139] Corporate Governance and Shareholder Information - The company declared an interim dividend of 12.0 HK cents per share, unchanged from the previous year[6] - The book value per share decreased by 2.7% to HKD 10.7 as of June 30, 2024, compared to HKD 11.0 in the same period last year[8] - The company declared an interim dividend of 12 HK cents per share for the six months ended June 30, 2024, unchanged from the previous year[135] - The company will suspend share transfer registration from September 9 to September 11, 2024, with the ex-dividend date set for September 5, 2024[136] - The company's major shareholders include United Group, Lee and Lee Trust, and Li Shuhui, holding approximately 73.50%, 73.50%, and 74.52% of the issued shares, respectively[