CKI HOLDINGS(01038)2024-03-20 09:00Financial Performance - CK Infrastructure Holdings Limited reported a net profit of HKD 8 billion for the year ending December 31, 2023, representing a 4% increase year-on-year. Excluding one-time gains from the sale of Northumbrian Water in 2022, net profit increased by 12%[4]. - The company's revenue for the year ended December 31, 2023, was HKD 38,582 million, a decrease of 1.7% from HKD 39,236 million in 2022[30]. - The operating profit before tax was HKD 8,578 million, representing an increase of 3.4% compared to HKD 8,294 million in the previous year[30]. - The net profit attributable to shareholders was HKD 8,027 million, up 3.6% from HKD 7,748 million in 2022[30]. - Earnings per share for the year was HKD 3.19, compared to HKD 3.08 in the previous year, reflecting a growth of 3.6%[30]. - The annual profit attributable to shareholders for 2023 was HKD 2,162 million, compared to HKD 2,033 million in 2022, representing an increase of 6.3%[38]. - Earnings per share for 2023 were HKD 8.07, up from HKD 7.74 in 2022[40]. Dividends - The board proposed a final dividend of HKD 1.85 per share, bringing the total dividend for 2023 to HKD 2.56 per share, a 1.2% increase from 2022, marking 27 consecutive years of dividend growth[6]. - Total dividends declared for 2023 reached HKD 6,450 million, an increase from HKD 6,221 million in 2022[41]. - The proposed final dividend for 2023 is HKD 1.85 per share, compared to HKD 1.83 per share in 2022[41]. Cash Flow and Financial Position - Operating cash flow reached a historical high of HKD 8.6 billion, reinforcing the company's strong revenue base[5]. - The company maintained a strong financial position with cash holdings of HKD 13 billion and a net debt to total capital ratio of 7.7% as of December 31, 2023[5]. - The total cash and deposits of the group as of December 31, 2023, amounted to HKD 13.077 billion, while total loans were HKD 24.199 billion[19]. - The net debt to total net capital ratio was 7.7% as of December 31, 2023, compared to 7.3% at the end of 2022[19]. - The group has secured HKD 1.555 billion in bank loans against certain assets as of December 31, 2023[20]. - The group is in discussions with several banks regarding the refinancing of loans due in 2024, with progress being favorable[19]. - The group maintains a balanced approach between prudent financial management and growth, ensuring sustainable profit growth while keeping debt levels manageable[18]. Business Contributions - The contribution from Power Assets Holdings was HKD 2.16 billion, reflecting a 6% increase[7]. - The UK infrastructure business contributed HKD 3.05 billion, remaining stable year-on-year, but showed a 22% decrease in local currency terms[8]. - The Australian infrastructure business reported a profit contribution of HKD 1.8555 billion, a 6% decrease year-on-year, primarily due to currency weakness and regulatory resets[10]. - The European infrastructure business saw a profit contribution of HKD 535 million, down 19% year-on-year, attributed to a fire incident at Dutch Enviro Energy's Rozenburg facility[12]. - The Canadian infrastructure business experienced a 5% increase in profit contribution to HKD 648 million, with significant recovery in Park'N Fly's business post-COVID[13]. - The Hong Kong and mainland China business reported a profit contribution of HKD 117 million, a 40% decrease year-on-year, due to reduced construction activity in China[15]. Assets and Liabilities - The total non-current assets increased to HKD 151,286 million in 2023 from HKD 146,342 million in 2022, marking a growth of 3.2%[31]. - Current liabilities rose significantly to HKD 16,099 million in 2023 from HKD 12,268 million in 2022, an increase of 31.5%[31]. - The company's total assets less current liabilities decreased to HKD 149,774 million in 2023 from HKD 153,599 million in 2022, a decline of 2.5%[31]. - The equity attributable to shareholders increased to HKD 123,293 million in 2023 from HKD 119,393 million in 2022, reflecting a growth of 3.2%[31]. Operational Efficiency - Operating costs decreased from HKD 1,952 million in 2022 to HKD 1,628 million in 2023 for the cost of goods sold, reflecting a reduction of approximately 16.6%[35]. - The company reported a decrease in depreciation and amortization costs from HKD 342 million in 2022 to HKD 325 million in 2023[38]. - The company reported a significant increase in interest income from joint ventures, which was HKD 1,993 million in 2023 compared to HKD 2,361 million in 2022, a decrease of 15.5%[33]. - The revenue from waste management services increased to HKD 1,992 million in 2023, up from HKD 1,901 million in 2022, indicating a growth of 4.8%[33]. - Other income for 2023 includes bank interest income of HKD 616 million, a significant increase from HKD 203 million in 2022[34]. Risk Management - The group has a prudent treasury policy to manage risks and reduce funding costs, with most cash held in short-term deposits in various currencies[19]. - The group has established several interest rate swap contracts to mitigate interest rate risks as of December 31, 2023, with a total nominal amount of HKD 55.923 billion[19]. Staffing and Expenses - The group employs 2,407 staff members, with employee expenses (excluding director remuneration) totaling HKD 1.03 billion[22]. Audit and Compliance - The audit committee has reviewed the annual performance for the year ending December 31, 2023[45]. - Deloitte has confirmed that the preliminary announcement of the consolidated financial statements is consistent with the audited financial statements approved by the board on March 20, 2024[45].