CKI HOLDINGS(01038)2023-08-02 08:33Financial Performance - For the six months ended June 30, 2023, CK Infrastructure Holdings Limited reported a profit attributable to shareholders of HKD 4.239 billion, a year-on-year decrease of 4% due to weaker foreign currency performance against the HKD and rising financial costs. In local currency terms, the performance grew by 4%[2]. - The unaudited profit attributable to shareholders for the six months ended June 30, 2023, was HKD 4.423 billion, representing a decrease of 4.7% compared to HKD 4.632 billion for the same period in 2022[26]. - The profit attributable to shareholders for the six months ended June 30, 2023, was HKD 4,485 million, compared to HKD 4,647 million in 2022, showing a decrease of 3.5%[36]. - Earnings per share for the period was HKD 1.68, down from HKD 1.75 in the previous year, reflecting a decline of 4%[27]. - Earnings per share for the period was HKD 4.23 billion, down from HKD 4.40 billion in 2022, reflecting a decline of 3.9%[38]. - Total revenue for the six months was HKD 19.534 billion, a decrease of 2.7% from HKD 20.079 billion in the prior year[27]. - The share of results from joint ventures was HKD 2.047 billion, slightly down from HKD 2.069 billion, indicating a decrease of 1.1%[27]. - The total tax expense for the six months ended June 30, 2023, was HKD 50 million, a decrease from HKD 53 million in the same period of 2022, indicating a decline of 5.7%[35]. Dividends - The interim dividend declared is HKD 0.71 per share, representing a 1.4% increase from HKD 0.70 per share in the same period last year[3]. - The company declared an interim dividend of HKD 0.71 per share, to be paid on September 13, 2023[26]. - The interim dividend declared was HKD 1,789 million, slightly up from HKD 1,764 million in the same period of 2022, representing an increase of 1.4%[39]. Business Contributions - The contribution from Power Assets Holdings was HKD 1.066 billion, an increase of 3% year-on-year, with a 7% growth in local currency terms[5]. - The UK infrastructure business contributed HKD 1.592 billion, a decrease of 5% year-on-year, impacted by regulatory resets and a weak GBP against HKD; in local currency, the contribution remained stable[6]. - The Australian infrastructure business reported a profit contribution of HKD 826 million, down 18% year-on-year, primarily due to regulatory resets and a weak AUD against HKD; in local currency, the contribution decreased by 13%[8]. - The Canadian infrastructure business saw a profit contribution of HKD 402 million, a 31% increase year-on-year, with a 40% increase in local currency terms, driven by strong performance from Canadian Power and Park'N Fly[11]. - The New Zealand infrastructure business reported a profit contribution of HKD 72 million, down 5% year-on-year, attributed to a weak NZD against HKD; in local currency, the contribution increased by 2%[12]. - The Hong Kong and Mainland China business contributed HKD 102 million, a decrease of 13% due to reduced traffic on toll roads and lower sales in the Hong Kong cement business[13]. Financial Position - As of June 30, 2023, CK Infrastructure maintained a strong financial position with cash holdings of HKD 12 billion and a net debt to total capital ratio of 9%[14]. - The company continues to receive a credit rating of "A/stable" from Standard & Poor's, indicating robust financial health[14]. - As of June 30, 2023, the total cash and deposits of the group amounted to HKD 12.05 billion, while total loans were HKD 25.67 billion, including HKD 2.67 billion in HKD loans and HKD 22.93 billion in foreign currency loans[17]. - The net debt to total net capital ratio as of June 30, 2023, was 9%, slightly higher than the 7% level at the end of 2022, calculated based on net debt of HKD 13.55 billion and total net capital of HKD 146.74 billion[17]. - As of June 30, 2023, the total assets less current liabilities amounted to HKD 156.877 billion, an increase from HKD 153.599 billion at the end of 2022[28]. - The net cash balance decreased to HKD 12.053 billion from HKD 18.045 billion, a decline of 33.3%[28]. - The group's non-current assets totalled HKD 152.543 billion, up from HKD 146.342 billion at the end of 2022, reflecting a growth of 4.8%[28]. - As of June 30, 2023, the group had contingent liabilities totaling HKD 953 million, including guarantees for bank loans of an associate company[19]. Operational Efficiency - The group employed 2,418 staff, with employee expenses (excluding directors' remuneration) amounting to HKD 516 million[20]. - Operating costs decreased to HKD 1,655 million for the six months ended June 30, 2023, down from HKD 1,723 million in 2022, reflecting a reduction of 3.9%[33]. - The company reported a decrease in construction materials sales to HKD 981 million from HKD 1.118 billion, a decline of 12.3%[31]. - Other income increased significantly to HKD 350 million for the six months ended June 30, 2023, compared to HKD 39 million in the same period of 2022, representing a growth of 798.7%[32]. Strategic Initiatives - The group continues to seek new investment opportunities in environmental sustainability while driving carbon reduction initiatives[16]. - The group’s regulated business revenue and asset base are linked to inflation, providing resilience against current high inflation impacts[16]. - The group maintains a prudent financial management strategy, balancing sustainable growth with ideal debt levels[16]. - The group has a strong financial foundation and a strategic alliance with CK Hutchison and Power Assets, enabling quick access to quality global investment opportunities[16]. - The group is actively promoting hydrogen energy to achieve net-zero emissions targets through its gas networks[17]. - The group’s financing projects continue to perform well, receiving strong support from the banking sector[17].