CK ASSET(01113)2022-08-18 08:30Financial Performance - The company's profit attributable to shareholders for the six months ended June 30, 2022, was HKD 12,936 million, a 58% increase from HKD 8,355 million in the same period of 2021[3]. - Earnings per share for the same period rose to HKD 3.55, compared to HKD 2.25 in 2021, reflecting a 58% increase[4]. - The group reported a total equity of 1,688,741,093 shares, representing approximately 46.34% ownership by Li Ka Shing and related parties[60]. - The total comprehensive income for the period was HKD 11,627 million, compared to HKD 10,225 million in 2021, reflecting a 13.8% increase[123]. - The group’s profit attributable to shareholders for the six months ended June 30, 2022, was HKD 12,936 million, compared to HKD 8,355 million in 2021, marking a 54.5% increase[132]. - The group’s earnings before tax for the six months ended June 30, 2022, were HKD 11,351 million, compared to HKD 9,735 million in 2021, reflecting a 16.6% increase[133]. Dividends and Share Repurchase - The board declared an interim dividend of HKD 0.43 per share, up from HKD 0.41 per share in the previous year, representing a 5% increase[5]. - The company repurchased 6,561,500 shares for a total consideration of HKD 341.38 million during May and June 2022[19]. - The interim dividend declared is 1,564,000,000, an increase from $1,494,000,000 in 2021[135]. Property Sales and Revenue - The company continues to expand its property sales, with revenue from Hong Kong property sales increasing compared to the previous year, driven by easing pandemic restrictions[8]. - Property sales revenue for the first half of the year was HKD 20.40 billion, up from HKD 14.79 billion in 2021, primarily driven by sales from the Sea to Sky residential units and Century Plaza in Shanghai[22]. - The group anticipates property sales in Hong Kong to reach HKD 8.34 billion and in mainland China and overseas to reach HKD 4.58 billion for the remainder of 2022[24]. Financial Position and Cash Flow - The group maintains a strong financial position with ample cash flow and rigorous financial discipline, allowing it to explore new projects[7]. - The group holds a net cash position of approximately HKD 13.9 billion after deducting borrowings, reflecting strong financial discipline and resilience in a challenging market environment[16]. - The group’s cash and cash equivalents stood at HKD 59,793 million, down from HKD 63,365 million at the end of 2021[124]. - The group reported a net cash inflow from operating activities of HKD 8,123 million for the six months ended June 30, 2022, compared to a net outflow of HKD 2,758 million in 2021[127]. Market Conditions and Economic Outlook - The global economic recovery remains uncertain due to inflationary pressures and interest rate hikes, impacting business operations[6]. - The group anticipates economic recovery in mainland China, while local economic performance in Hong Kong is expected to be impacted by the pandemic and global economic conditions[15]. - The ongoing COVID-19 pandemic continues to impact business operations and consumer behavior, potentially affecting the company's financial performance[89]. Strategic Investments and Expansion - The company is actively seeking quality property investments to optimize its portfolio and enhance stable income and long-term asset value[9]. - The group is focused on increasing land reserves through various strategies, including land bidding, to develop quality property projects[8]. - The group is expanding into global quality investments to enhance cash flow quality and strengthen fixed income bases, although success in these strategies is not guaranteed[117]. Governance and Management - The company maintains a robust governance structure with independent directors overseeing key committees[57][59]. - The company’s independent directors have extensive experience in various industries, enhancing governance and strategic oversight[58][59]. - The board of directors is committed to enhancing shareholder value through active engagement and decision-making processes[75]. Risks and Challenges - The group faces significant risks from industry trends, including market conditions, asset values, and interest rate cycles, which may adversely affect its business and financial performance[90]. - The group is exposed to risks related to global economic conditions, including inflationary pressures and supply chain disruptions due to the COVID-19 pandemic[88]. - The group operates in regions affected by social unrest, terrorism threats, and geopolitical tensions, which could adversely affect its business and financial conditions[99]. Sustainability and Corporate Responsibility - The group aims to achieve environmental targets by 2030, including reducing greenhouse gas emissions, electricity, water usage, and waste paper, with a commitment to net-zero carbon emissions by 2040[13]. - The company established a Sustainability Committee on December 1, 2020, to oversee sustainable development measures and provide recommendations to the board[83]. - The group has participated in various charitable activities, raising over HKD 110 million for Macmillan Cancer Support over the past decade[14].