CKI HOLDINGS(01038)2023-04-13 08:57Financial Performance - For the year ended December 31, 2022, CK Infrastructure Holdings Limited recorded a profit attributable to shareholders of HKD 7,748 million, representing a 3% increase compared to the previous year[15]. - The infrastructure investment portfolio's contribution increased by 16% year-on-year when measured in local currencies[14]. - The company declared an interim dividend of HKD 1,764 million and a proposed final dividend of HKD 4,611 million, totaling HKD 6,375 million in dividends for the year[12]. - The company's earnings per share for 2022 was HKD 3.08, up from HKD 2.98 in 2021[12]. - The total liabilities decreased to HKD 36,485 million from HKD 37,152 million in the previous year[12]. - The group reported a significant increase in revenue, achieving a total of $1.5 billion, representing a 15% year-over-year growth[1]. - The group has maintained a diverse portfolio, with operations spanning multiple countries and sectors, indicating a strategic approach to market expansion[178]. Financial Stability - The net debt to total equity ratio is 7%, indicating a stable financial position as rated by Standard & Poor's[5]. - The company’s cash balance stood at HKD 18 billion, reflecting strong liquidity[4]. - As of December 31, 2022, the group held cash of HKD 18 billion, with a net debt to total equity ratio of 7%[26]. - The group's net debt to total net capital ratio was 7.3% as of December 31, 2022, down from 14.7% at the end of 2021, attributed to cash flow from investment activities and proceeds from the sale of joint venture interests[126]. Business Strategy and Growth - CK Infrastructure's long-term development strategy focuses on expanding its infrastructure investments globally despite macroeconomic challenges[15]. - The company has a diversified business model, including investments in energy, transportation, water treatment, and waste management across various regions including the UK, Australia, and Canada[2]. - The company aims to enhance internal growth and implement strategies that adapt to changing business environments[45]. - The company is exploring strategic acquisitions to enhance its market presence, targeting a 15% increase in market share by 2024[136]. - The company is focused on maintaining robust cash flow and low debt levels to capitalize on emerging acquisition opportunities[47]. Operational Performance - The contribution from infrastructure business increased by 7% year-on-year, with a 16% rise in local currency terms[16]. - Power Assets' profit contribution was HKD 2.033 billion, down 8% year-on-year, primarily due to rising financial costs and reduced overseas contributions from currency weakness[18]. - The UK business contributed HKD 3.369 billion, a 29% increase, driven by a one-time gain from the sale of a 13% stake in Northumbrian Water, despite rising financial costs and currency fluctuations[19]. - The Canadian business saw a significant profit contribution increase of 30% to HKD 617 million, with a 33% rise in local currency terms, supported by strong performance in the energy market[23]. - The company faced challenges in 2022 due to inflation, including rising material, logistics, and labor costs, but managed to maintain stable service across regulated and non-regulated businesses[36]. Sustainability and Innovation - The group is committed to innovative sustainable development practices, including carbon capture and renewable energy projects[27]. - The company is actively promoting energy-efficient solutions, including zero-carbon energy housing solutions in collaboration with the Zero Carbon Committee[122]. - The group has set a carbon reduction target to decrease Scope 1 and Scope 2 emissions by 50% from 2020 levels by 2035, with a commitment to achieve net-zero emissions by 2050[179]. - The group is committed to sustainable practices within its operations, particularly in the energy and waste management sectors[166][168][170][171][172][174][176][177]. Awards and Recognition - In 2022, CK Infrastructure's member companies received approximately 170 awards globally for their outstanding performance in various sectors, including operational efficiency and customer service[38]. - UK Power Networks was recognized as the top distribution network operator in the UK for customer service and performance metrics, winning nearly 30 awards during the year[36]. - Northumbrian Water ranked first in the annual performance survey conducted by British Water, and was the only water company listed among the world's most ethical businesses by the Ethisphere Institute[36]. Future Outlook - The outlook for 2023 remains optimistic, with the group well-positioned to capitalize on global investment opportunities due to its strong financial position and low debt levels[28]. - Future outlook remains positive, with projected revenue growth of 8-10% annually for the next five years[135]. - The company provided an optimistic outlook for the next quarter, projecting revenue growth of 10% to 12%[3].