CK ASSET(01113)2023-08-03 08:30Financial Performance - The group's profit attributable to shareholders from continuing operations for the six months ended June 30, 2023, was HKD 10.331 billion, a decrease of 4.0% compared to HKD 10.931 billion in the same period of 2022 [2]. - Earnings per share for continuing operations was HKD 2.88, down 4.0% from HKD 3.00 in the previous year, and down 18.9% from HKD 3.55 including discontinued operations [3]. - The group's unaudited profit attributable to shareholders for the six months ended June 30, 2023, was HKD 10.331 billion, compared to HKD 12.936 billion for the same period in 2022, representing a decrease of approximately 20.2% [54]. - The group's revenue from continuing operations for the six months ended June 30, 2023, was HKD 24.605 billion, down from HKD 35.715 billion in 2022, indicating a decline of about 30.9% [55]. - The total comprehensive income for the six months ended June 30, 2023, was HKD 11.808 billion, slightly up from HKD 11.627 billion in 2022, showing an increase of approximately 1.6% [56]. - The group's profit for the first half was HKD 4.08 billion, down from HKD 4.14 billion in 2022, with regional contributions detailed [39]. - The group's share of profits from joint ventures was HKD 1.321 billion for the six months ended June 30, 2023, compared to HKD 1.567 billion in 2022, a decrease of about 15.7% [55]. Dividends and Share Repurchase - The board declared an interim dividend of HKD 0.43 per share, consistent with the previous year's interim dividend [4]. - The company repurchased a total of 31,100,000 shares for HKD 1,358,201,050 from March to June 2023, with 1,570,000 shares canceled in March [17]. - During the six months ended June 30, 2023, the company repurchased a total of 31.1 million shares at a total cost of HKD 1.36 billion [46]. Property Sales and Revenue - Property sales revenue for the first half of 2023 was HKD 8,246 million, a decrease of 59.5% from HKD 20,397 million in 2022 [19][20]. - The group reported a decrease in property sales revenue in Hong Kong and mainland China compared to the same period last year, despite some improvement in the local residential property market [6]. - The company's rental income for the first half of 2023 was HKD 2,862 million, down from HKD 2,993 million in 2022 [24]. - The company's operating profit from property sales was HKD 3,531 million, a decrease of 56% from HKD 8,012 million in 2022 [59]. Investment and Acquisitions - The group has initiated a cash acquisition of Civitas Social Housing PLC, which specializes in providing professional support housing, expected to contribute immediate rental income in the second half of 2023 [8]. - The company announced a cash offer to acquire Civitas Social Housing PLC at 80 pence per share, valuing the entire issued share capital at approximately GBP 485 million (around HKD 4,810 million) [17]. - The group proposed a cash acquisition offer for Civitas Social Housing PLC, acquiring over 96% of its issued shares by July 31, 2023, expanding the investment property portfolio and providing immediate rental income [28]. Operational Highlights - The group's hotel and serviced suite business recorded revenue growth compared to the same period in 2022, benefiting from an increase in overall visitor numbers since the resumption of regular travel [9]. - Hotel and serviced suite business revenue for the first half of the year was HKD 1.95 billion, an increase of HKD 417 million from HKD 1.53 billion in 2022, with an average hotel occupancy rate rising from 58% to 75% [29]. - The average occupancy rate for serviced suites remained around 91% during the same period [29]. - The group completed and expects to complete several property projects in 2023, including the Central Plaza Phase II with a floor area of 504,343 square feet, fully owned by the group [16]. Financial Health and Debt Management - The group achieved a net debt to total capital ratio of approximately 1.4% as of the mid-year settlement date, reflecting strong financial discipline [13]. - The group received an "A/stable" credit rating from S&P and an "A2 stable" rating from Moody's, indicating financial robustness [13]. - As of the interim settlement date, total bank and other borrowings amounted to HKD 49.4 billion, an increase of HKD 800 million from December 31, 2022 [41]. - The group's net debt was HKD 5.6 billion, with a debt-to-equity ratio of approximately 1.4% [41]. Sustainability and Corporate Governance - The group aims to reduce greenhouse gas emissions by 50% by 2030, based on 2019 levels, as part of its commitment to sustainable development [12]. - The company has a strong commitment to corporate governance, adhering to the principles set out in the corporate governance code and maintaining high ethical standards [48]. - The group is focused on integrating green visions into construction projects while promoting cost-effective savings initiatives [12]. Market Outlook and Challenges - The group recognizes ongoing global inflation and geopolitical risks but remains confident in the long-term support for the Hong Kong property market [13]. - The group remains confident in the long-term rental outlook for prime office properties, with the completion of the iconic Cheung Kong Center Phase II expected by the end of 2023 [8]. - The group reported a 5.5% real economic growth in mainland China during the first half of the year, supported by government policies [13].