CLP HOLDINGS(00002)2024-02-26 04:27Financial Performance - The total profit for 2023 was HKD 6,655 million, a strong rebound from HKD 924 million in 2022, despite a non-cash goodwill impairment of HKD 5,868 million[4]. - The operating profit for 2023 increased by 33.2% to HKD 10,127 million, benefiting from reliable contributions from core businesses in Hong Kong and mainland China, as well as significant improvements in overseas operations[2]. - The comprehensive revenue decreased by 13.4% to HKD 87,169 million, impacted by a 5.1% reduction due to the termination of accounting consolidation of Apraava Energy and weak wholesale spot prices in Australia[2]. - The group reported a net profit of HKD 7,670 million for the year, down from HKD 9,511 million in 2022, representing a decline of 19.4%[46]. - The group recorded a capital expenditure impairment provision of HKD 15,402 million for the year[46]. - The company reported a total tax expense of HKD 2,973 million for 2023, up from HKD 103 million in 2022[51]. - The company reported a basic and diluted earnings per share of HKD 2.63 for 2023, compared to HKD 0.37 in 2022[53]. Dividends - The total dividend for 2023 remained unchanged at HKD 3.10 per share, consistent with 2022, including a fourth interim dividend of HKD 1.21 per share[4]. - The fourth interim dividend for 2023 was declared at HKD 1.21 per share, consistent with the previous year[70]. Operational Developments - The company plans to construct a 300 MW wind farm in Karnataka and has commenced partial operations at the Sidhpur wind project in Gujarat, showcasing its commitment to zero-carbon projects[4]. - EnergyAustralia's operational performance significantly improved in 2023 after the energy crisis in 2022, with the highest number of customers receiving support for cost-of-living pressures[5]. - The company successfully launched Hong Kong's first offshore liquefied natural gas receiving station in September 2023, enhancing energy supply stability[4]. - The company is focused on carbon reduction as a primary objective, with a strategy aligned with the "Climate Vision 2050" to achieve net-zero greenhouse gas emissions by mid-century[5]. - The company is constructing an advanced combined cycle gas turbine unit D2 at the Lung Kwu Tan Power Station to phase out coal-fired generation[11]. - The company plans to explore the feasibility of natural gas and hydrogen co-firing at the Lung Kwu Tan Power Station as part of its clean energy initiatives[12]. - The company has connected over 2.23 million smart meters for customers since the start of its meter replacement program in 2018, with completion expected by 2025[13]. - The company is actively involved in the development of electric vehicle infrastructure and has formed an alliance with 14 like-minded organizations to promote electric commercial vehicle adoption[13]. Renewable Energy Initiatives - The company has accelerated the expansion of its renewable energy portfolio to meet growing energy demands, aligning with national carbon peak and neutrality goals[15]. - The company has secured construction quotas for multiple renewable energy projects, totaling 1,190 megawatts across Guangxi and Shandong provinces[16]. - Apraava Energy's renewable energy assets saw a 23% increase in generation due to improved wind resources and partial commissioning of the Sidhpur project[24]. - The company is actively expanding its renewable energy portfolio to meet the growing demand for corporate power purchase agreements and green power certificates[17]. - EnergyAustralia aims to increase its renewable energy projects to a maximum of 3,000 MW by 2030, with an investment exceeding AUD 5 billion planned[21]. Market and Customer Insights - In 2023, the local electricity sales volume in Hong Kong increased by 1.6% to 35,392 million kWh, driven by economic recovery and record high summer temperatures[9]. - The electricity sales volume for residential customers decreased by 1.8% to 9,929 million kWh, while commercial and public service sectors saw increases of 3.3% and 3.4% respectively[10]. - EnergyAustralia's customer base decreased by approximately 20,700 (or 0.8%) in 2023, although the customer attrition rate remains better than the market average[21]. Leadership and Governance - The leadership team has undergone changes, with the appointment of Mr. Jiang Dongqiang as CEO and Mr. Luo Jiajin as President, both bringing extensive experience to the company[6]. - The board of directors of CLP Holdings includes Sir Michael Kadoorie, Mr. Paul Poon, Mr. Li Yuen, Mr. Fok Ying Tung, and Ms. Yuen So Siu Mei as non-executive directors[73]. - Independent non-executive directors consist of Sir Adrian Montague, Mr. Nicholas Allen, Ms. Mu Xiu Xia, Ms. Chan Siu Mei, Ms. Wu Yan An, Mr. Gu Chun Yuan, Mr. Chan Zhi Si, and Ms. Wang Xiao Jun[73]. - Executive directors are Mr. Jiang Dongqiang and Mr. Lan Lingzhi[73]. Financial Position and Assets - Non-current assets totaled HKD 202,121 million in 2023, slightly up from HKD 201,565 million in 2022[39]. - Current assets decreased to HKD 26,930 million in 2023 from HKD 34,461 million in 2022[39]. - The group’s total assets as of December 31, 2023, amounted to HKD 229,051 million, while total liabilities were HKD 116,669 million[46]. - The company’s cash and cash equivalents decreased significantly, with other receivables dropping from HKD 6,499 million in 2022 to HKD 1,700 million in 2023[56]. Sustainability and Environmental Goals - The company is committed to exploring growth opportunities in renewable energy, transmission, and AMI projects, supported by major stakeholders[25]. - Apraava Energy's greenhouse gas reduction targets have been certified by the Science Based Targets initiative (SBTi), highlighting its leadership in decarbonization[24]. - The company reported a one-time income from a mid-term compensation related to a dispute, impacting comparable items[25]. Future Outlook - The development plan for 2024 to 2028 has been approved, with a capital expenditure of approximately HKD 52.9 billion to meet growing electricity demand[11]. - The company plans to continue expanding its renewable energy projects and improve operational efficiency in its various segments[32]. - The company expects to maintain a high level of liquidity in 2024 due to dividend income and cash inflows from subsidiaries, joint ventures, and associates[64].