CLP HOLDINGS(00002)2024-03-08 08:32Financial Performance - The company reported an operating profit of HKD 10,127 million for 2023, with a pre-fair value change operating profit of HKD 8,823 million[10]. - Total revenue decreased by 13.4% to HKD 87,169 million, with Hong Kong electricity business revenue slightly up by 0.1% to HKD 50,630 million, while revenue from energy businesses outside Hong Kong fell by 28.3% to HKD 35,039 million[16]. - Total profit rebounded to HKD 6,655 million from HKD 924 million in 2022, reflecting a strong recovery[15]. - The company reported a net cash inflow from operating activities of HKD 23,567 million, an increase of 85.1% compared to HKD 12,734 million in 2022[16]. - The company's earnings per share increased significantly to HKD 2.63 from HKD 0.37, reflecting a growth of 620.2%[16]. - The fair value changes reversed from a loss of HKD 2,979 million to a gain of HKD 2,125 million, impacting the comparability of results[15]. - Total profit for 2023 was HKD 6,655 million, compared to HKD 924 million in 2022, after accounting for a non-cash goodwill impairment of HKD 5,868 million related to EnergyAustralia[30]. - The group reported an operating cash flow increase of 85% to HKD 23,567 million compared to HKD 12,734 million in 2022, reflecting strong financial health[122]. - The company reported a net profit attributable to shareholders of HKD 6,655 million for 2023, up from HKD 924 million in 2022[71]. - The company declared a total dividend for 2023 at HKD 3.10 per share, maintaining the same level as in previous years[93]. Sustainability and Environmental Goals - The company aims to achieve net-zero greenhouse gas emissions across its value chain by the end of 2050, with strengthened carbon reduction targets for 2030[2]. - The company is committed to enhancing transparency in climate-related disclosures and sustainability reporting, exceeding regulatory requirements[2]. - The company continues to focus on sustainable energy solutions and community welfare, aligning with its mission to create value for shareholders and customers[18]. - The total greenhouse gas emissions across Scope 1, Scope 2, and Scope 3 for the group decreased by 12% year-on-year to 52,988 kilotons of CO2 equivalent[114]. - The greenhouse gas emission intensity of electricity sold decreased from 0.55 kg CO2 equivalent per kWh to 0.54 kg CO2 equivalent per kWh compared to the previous year[114]. - The company aims to reduce absolute Scope 3 greenhouse gas emissions from the 2019 level by 28% by the end of 2030[115]. - The company plans to reduce the greenhouse gas emission intensity of electricity sold to 0.1 kg CO2 equivalent per kWh by the end of 2040 and achieve net-zero emissions by the end of 2050[115]. - The company has committed to reviewing the "Climate Vision 2050" targets at least every three years[115]. - The company is focusing on capital investment in renewable energy infrastructure, including wind, solar, nuclear, and battery storage systems[112]. - The company is actively supporting industries in enhancing quality and consistency in carbon markets[112]. Operational Developments - The company operates a total generation and storage capacity of 23,291 MW, including 9,719 MW from coal and 6,093 MW from gas[9]. - The company is actively pursuing growth opportunities in the Greater Bay Area and regional energy markets, emphasizing its commitment to sustainable development[4]. - The company has streamlined its annual report and sustainability report to enhance clarity and avoid redundancy, focusing on key financial impacts and sustainability strategies[2]. - The company successfully launched Hong Kong's first offshore liquefied natural gas receiving terminal in September 2023, enhancing energy supply stability[30]. - The company plans to construct a 300 MW wind farm in Karnataka, India, and has commenced partial operations at the Sidhpur wind project in Gujarat[32]. - The company aims to enhance operational flexibility and develop skills to meet future energy demands[21]. - The company is exploring growth opportunities in renewable energy, transmission, and advanced metering infrastructure (AMI) projects, supported by significant backing from CLP Group and CDPQ[55]. - The company is committed to supporting the clean energy development in Shandong Province, with operational wind projects totaling approximately 600 MW[47]. - The company is investing in nuclear energy infrastructure to reduce energy production costs while aligning with decarbonization efforts[107]. Customer and Community Engagement - Customer satisfaction score improved to 74, up from 72 in 2022[20]. - A total of HKD 9 million was donated to support energy-saving initiatives and community development[28]. - The company has allocated over HKD 200 million through the "CLP Community Energy Saving Fund" to support community initiatives promoting renewable energy and stimulate the Hong Kong economy[146]. - Approximately 2,000 underprivileged households will receive free inspections and repairs of electrical installations under the new grassroots home electricity safety program[148]. - The company is focusing on customer-centric energy solutions, including smart grid technology, to enhance market share and increase revenue through innovative products and services[108]. - The "All Electric Home" program promotes low-carbon lifestyles by supporting developers in installing energy-efficient appliances and solar panels in new residential units[134]. Workforce and Talent Management - The company has implemented a new operational model to respond more quickly to customer needs and growth opportunities[165]. - Over 800 new employees were recruited in Hong Kong and mainland China, maintaining a rapid hiring pace to support business growth[157]. - The average employee participated in 44.1 hours of internal and external training courses in 2023, consistent with 2022 levels[160]. - The group received the "Best Corporate Wellbeing Program" award at the CTgoodjobs "Best HR Awards" and a gold award for "Mental Health Friendly Excellent Organization" from the Occupational Safety and Health Council[154]. - The group has expanded its engineering talent pool by collaborating with local and overseas educational institutions, benefiting over 2,100 students since the establishment of the training academy in 2017[159]. - The group has implemented a flagship trainee engineer program in Hong Kong, with over 40 young engineers participating, the highest number to date[157]. - The group is committed to reducing risks associated with high-altitude work and falling objects, adjusting strategies based on specific regional business risks[154]. Regulatory and Market Challenges - The company faces financial risks due to evolving global net-zero policies, which may accelerate the closure of coal-fired power plants and lead to early transformation costs[107]. - The company may face regulatory uncertainties and public sentiment challenges regarding energy pricing, which could impact long-term financial performance[109]. - The current regulatory framework for the company in Hong Kong is a 15-year agreement expiring in December 2033, with a mid-term review completed in 2023[172]. - The company is committed to fulfilling stakeholder expectations by playing an active role in society, leading in carbon reduction, and investing in green energy solutions[105]. Technological Advancements - The company is focusing on developing new energy services and business models, transitioning from traditional utility operations to diversified offerings[174]. - The company has completed the installation of a floating solar photovoltaic system for the Drainage Services Department in Hong Kong, which was connected to the grid in September[174]. - The company is collaborating with local authorities in mainland China to adapt to market reforms aimed at establishing a unified national electricity market[173]. - The company has over 100 robotic process automation projects underway to streamline workflows and reduce repetitive tasks[165]. Investment and Financial Strategy - The company is investing over AUD 5 billion in its Climate Transition Action Plan (CTAP) to support energy transition initiatives[52]. - The group has initiated sustainable financing activities under the Climate Action Financing Framework, linking performance indicators to emission reductions[64]. - The company is committed to maintaining a solid financial foundation to meet investor expectations while prioritizing community and environmental interests[112]. - The group raised HKD 20 billion in bank loan facilities linked to emission reduction performance in December 2022, and in the first half of 2023, China Power arranged HKD 2.3 billion in one-year bank loans[127].