港通控股(00032) - 2024 - 中期业绩

2024 Interim Results Announcement Group Performance Overview The Group's profit attributable to shareholders fell 44.4% to HK$235.2 million due to the cessation of its tunnel business | Metric | H1 2024 (HK$ million) | H1 2023 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to shareholders | 235.2 | 422.7 | -44.4% | | Earnings per share (HK$) | 0.63 | 1.13 | -44.3% | - The decrease in profit was mainly due to the termination of the tunnel operation business in August 2023, which contributed HK$246.7 million in H1 2023[41] - The company paid a Q1 interim dividend of HK$0.06 per share on July 12, 2024, and will pay a Q2 interim dividend of HK$0.06 per share on September 16, 2024[3] Consolidated Financial Statements This section presents the unaudited consolidated statements of profit or loss, comprehensive income, and financial position Consolidated Statement of Profit or Loss Total revenue grew 14.4% to HK$470.2 million, but total profit for the period fell 40.1% due to discontinued operations | Metric | For the six months ended June 30, 2024 (HK$ thousand) | For the six months ended June 30, 2023 (HK$ thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total revenue | 470,185 | 410,955 | +14.4% | | Operating profit | 303,173 | 229,113 | +32.3% | | Profit before tax | 294,660 | 233,889 | +26.0% | | Profit from continuing operations | 272,345 | 213,657 | +27.5% | | Profit from discontinued operations | 3,202 | 246,729 | -98.7% | | Profit for the period | 275,547 | 460,386 | -40.1% | | Profit attributable to equity shareholders of the Company | 235,172 | 422,658 | -44.4% | | Basic and diluted earnings per share (HK$) | 0.63 | 1.13 | -44.3% | Consolidated Statement of Profit or Loss and Other Comprehensive Income Total comprehensive income decreased by 39.6% to HK$276.5 million, impacted by discontinued operations | Metric | For the six months ended June 30, 2024 (HK$ thousand) | For the six months ended June 30, 2023 (HK$ thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 275,547 | 460,386 | -40.1% | | Other comprehensive income for the period | 1,002 | (2,477) | From loss to profit | | Total comprehensive income for the period | 276,549 | 457,909 | -39.6% | | Total comprehensive income attributable to equity shareholders of the Company | 236,178 | 420,212 | -43.8% | Consolidated Statement of Financial Position The Group's financial position remained solid with growth in net current assets, net assets, and total equity | Metric | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 4,412,350 | 4,670,100 | -5.5% | | Current assets | 4,124,742 | 3,845,745 | +7.2% | | Current liabilities | 730,837 | 828,992 | -11.9% | | Net current assets | 3,393,905 | 3,016,753 | +12.5% | | Total assets less current liabilities | 7,806,255 | 7,686,853 | +1.6% | | Net assets | 7,573,276 | 7,413,033 | +2.2% | | Total equity attributable to equity shareholders of the Company | 7,339,557 | 7,215,185 | +1.7% | Notes to the Financial Information This section details the Group's accounting policies, revenue sources, segment reporting, and other financial breakdowns General Information and Basis of Preparation The Group's principal activities are investment holding, driving schools, financial management, and electronic toll collection - The Company's principal activity is investment holding, with subsidiaries in driving schools, financial management, and securities investment, and a joint venture in electronic toll collection facilities[10] - The interim financial report is prepared in accordance with HKAS 34 and the applicable disclosure requirements of the Listing Rules of The Stock Exchange of Hong Kong Limited[11] - This interim financial report is unaudited but has been reviewed by KPMG in accordance with HKSRE 2410[11] Changes in Accounting Policies The adoption of new Hong Kong Financial Reporting Standards had no material impact on the Group's financial position - The amendments to Hong Kong Financial Reporting Standards effective in this accounting period had no material impact on the Group's results and financial position[13] Revenue and Segment Reporting The Group's revenue is primarily from driving schools and financial management, with the latter showing significant profit growth Revenue from Contracts with Customers by Service (HK$ thousand): | Service | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Course fees from driving school operations | 379,908 | 320,574 | | Consultancy and management fees from electronic toll collection facilities | 2,400 | 2,400 | Other Interest Income (HK$ thousand): | Source | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Interest income from interest-bearing instruments | 3,590 | 3,570 | | Bank interest income | 64,326 | 47,785 | Total Revenue (HK$ thousand): | Total Revenue | 470,185 | 410,955 | Reportable Segment Profit Before Tax (HK$ thousand): | Segment | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Driving school operations | 154,274 | 133,369 | | Electronic toll collection facilities operations | 3,223 | 13,212 | | Financial management | 169,291 | 116,965 | | Total | 326,788 | 263,546 | - The profit before tax for the electronic toll collection facilities segment decreased significantly due to reduced administrative fee income following the full implementation of HKeToll[19][39][44] Other Net Income Other net income increased significantly, driven by fair value gains on financial assets, particularly listed equity securities Other Net Income (HK$ thousand): | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Fair value changes of financial assets at FVTPL | 116,806 | 73,464 | | - Unlisted fund investments | 58,909 | 53,240 | | - Listed equity securities | 116,839 | 93,316 | | - Unlisted equity securities | (58,953) | - | | - Debt securities | 11 | (58,881) | | Net gain on disposal of property, plant and equipment | 73 | 127 | | Total | 116,879 | 73,591 | Details of Profit Before Tax Finance costs and depreciation increased, while impairment losses on financial assets were reduced to zero Items Deducted in Profit Before Tax (HK$ thousand): | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Finance costs (interest on lease liabilities) | 9,358 | 6,143 | | Depreciation | 47,829 | 42,076 | | Impairment loss on financial assets | - | 16,602 | | Contributions to defined contribution retirement scheme | 5,046 | 4,665 | | Salaries, wages and other benefits | 172,699 | 153,786 | | Cost of inventories consumed | 5,336 | 3,830 | Income Tax Total income tax for H1 2024 was HK$22.3 million, an increase from the prior year due to higher Hong Kong Profits Tax Income Tax (HK$ thousand): | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Current tax - Hong Kong Profits Tax | 22,715 | 19,205 | | Deferred tax | (400) | 1,027 | | Total | 22,315 | 20,232 | - Hong Kong Profits Tax is calculated at a rate of 16.5%, with one subsidiary qualifying for a rate of 8.25% on its first two million of assessable profits[23] Discontinued Operations The Western Harbour Tunnel Company Limited's franchise expired in August 2023, leading to a 98.7% drop in profit from this discontinued operation - The franchise of Western Harbour Tunnel Company Limited (a 50%-owned associate) expired on August 1, 2023, and its operations are classified as discontinued[24] Profit for the Year from Discontinued Operations (HK$ thousand): | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Management fee from an associate | - | 1,250 | | Share of profit of an associate | 3,202 | 245,479 | | Total | 3,202 | 246,729 | Earnings Per Share Basic and diluted earnings per share for H1 2024 decreased to HK$0.63, reflecting the impact of discontinued operations Earnings Per Share (HK$): | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Basic and diluted | 0.63 | 1.13 | | From continuing operations, basic and diluted | 0.62 | 0.47 | | From discontinued operations, basic and diluted | 0.01 | 0.66 | - Basic and diluted EPS are calculated based on the profit attributable to ordinary equity shareholders of HK$235,172,000 and a weighted average of 372,688,000 ordinary shares in issue[26] Dividends The company declared and paid Q1 and Q2 interim dividends of HK$0.06 per share, consistent with the prior year Dividends Payable to Equity Shareholders During the Interim Period (HK$ thousand): | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | First quarterly interim dividend (HK$0.06 per share) | 22,361 | 22,361 | | Second quarterly interim dividend (HK$0.06 per share) | 22,361 | 22,361 | | Total | 44,722 | 44,722 | Dividends Payable to Equity Shareholders in Respect of the Previous Financial Year (HK$ thousand): | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Final dividend (HK$0.24 per share) | 89,445 | 89,445 | Other Financial Assets The Group's total financial assets stood at HK$4,807.1 million, primarily composed of unlisted funds and listed equity securities Total Other Financial Assets (HK$ thousand): | Category | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Non-current financial assets | 3,724,428 | 3,942,069 | | Current financial assets | 1,082,698 | 984,143 | | Total | 4,807,126 | 4,926,212 | - The unlisted fund investments comprise 52 private equity funds with a diversified portfolio across various industries and regions[33] Fair Value and Gains of Listed Equity Securities (HK$ thousand): | Category | Fair Value at June 30, 2024 | Fair Value at Dec 31, 2023 | Net Fair Value Gain in H1 2024 | Net Fair Value Gain in H1 2023 | | :--- | :--- | :--- | :--- | :--- | | Equity securities listed in Hong Kong | 819,412 | 726,966 | 92,446 | 58,276 | | Equity securities listed outside Hong Kong | 262,964 | 256,866 | 24,393 | 35,040 | Trade and Other Receivables, Deposits and Prepayments Trade and other receivables increased significantly to HK$335.8 million due to consideration receivable from the sale of unlisted fund investments Trade and Other Receivables (HK$ thousand): | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Trade receivables (net of allowance for doubtful debts) | 13,268 | 12,780 | | Consideration receivable | 255,094 | - | | Other receivables | 14,016 | 14,553 | | Deposits and prepayments | 101,037 | 88,029 | | Less: non-current portion | (47,610) | (44,880) | | Total | 335,805 | 70,482 | - The consideration receivable of HK$255,094,000 primarily arose from the disposal of partnership investments in five unlisted funds[35] Trade and Other Payables Total trade and other payables decreased to HK$73.3 million as of June 30, 2024, indicating sound liability management Trade and Other Payables (HK$ thousand): | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Trade payables | 7,597 | 7,279 | | Other payables and accruals | 65,675 | 123,176 | | Total | 73,272 | 130,455 | Business Review and Outlook This section reviews the performance of the Group's main business segments and discusses the economic environment and future outlook Economic Review and Outlook Hong Kong's economy continued to recover in H1 2024, driven by net exports, with further recovery expected in H2 - Hong Kong's GDP grew by 2.7% and 3.3% in Q1 and Q2 2024 respectively, with net exports as the main growth driver[37] - Total retail sales fell by 14.7% and 11.4% year-on-year in April and May 2024, and investment sentiment was cautious due to high interest rates[37] - Looking ahead, Hong Kong's business environment is stable, and the economy is expected to continue its recovery in H2 2024, with potential interest rate cuts by major central banks improving investment sentiment[37] Driving School Operations The driving school business saw an 18.5% increase in operating revenue, driven by higher demand for non-motorcycle training - Revenue from driving school operations increased by 18.5% year-on-year to HK$379.9 million, with a 16.1% increase in the number of non-motorcycle driving courses[38][44] - Profit before tax for driving school operations increased by 15.7% to HK$154.3 million, though the market may stagnate in the second half of the year[38][44] Electronic Toll Collection Facilities Operations While total revenue from HKeToll increased, a sharp decline in administrative fee income led to a significant drop in the Group's share of profit - The full implementation of HKeToll since January 2024 led to a 24.4% increase in total HKeToll revenue but a 75.0% decrease in administrative fee income from electronic toll collection[39] - The Group's share of profit from the joint venture, Autotoll (BVI) Limited, was HK$0.8 million, a sharp decrease from HK$10.9 million in the prior year[44] Financial Management Business The financial management segment recorded a net profit of HK$169.3 million, mainly from fair value gains on financial assets - The Group disposed of five unlisted funds and some US-listed equity securities, reinvesting part of the proceeds into Japanese-listed equity securities[40] - The financial management segment recorded a net profit of HK$169.3 million in H1 2024, primarily contributed by a net fair value gain of HK$116.8 million on FVTPL financial assets[42] Financial Management Segment Key Income (HK$ million): | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Net fair value gain on FVTPL financial assets | 116.8 | 73.5 | | Portfolio dividend and interest income | 23.3 | 25.5 (Estimated) | | Bank interest income | 44.4 | 31.4 | | Impairment loss on interest-bearing instruments | 0 | 16.6 | | Financial management segment profit before tax | 169.3 | 117.0 | Note: 2023 portfolio dividend and interest income is estimated as HK$21.9 million from listed equity securities + HK$3.6 million from interest-bearing instruments = HK$25.5 million - As of June 30, 2024, the Group's investment portfolio was valued at HK$4,807.1 million, a decrease from HK$4,926.2 million at December 31, 2023[40][47] - During the period, HK$250.8 million of financial assets were added, and HK$487.7 million were disposed of[48] - The Diversified Absolute Return Fund (DARF) had a fair value of HK$681.2 million, representing 8.0% of total assets, and recorded a fair value loss of HK$12.4 million during the period[49] Liquidity and Financial Resources The Group maintained a strong liquidity position with bank balances and deposits of HK$2,677.1 million and no bank borrowings Bank Balances and Deposits (HK$ million): | Date | Amount | | :--- | :--- | | June 30, 2024 | 2,677.1 | | December 31, 2023 | 2,764.8 | - The Group had no bank borrowings as of June 30, 2024[51] Employees The Group had 656 employees, with total staff costs increasing to HK$177.7 million in the first half of 2024 - The Company and its subsidiaries had a total of 656 employees[52] Total Staff Costs (HK$ million): | Period | Amount | | :--- | :--- | | H1 2024 | 177.7 | | H1 2023 | 158.5 | Corporate Governance The company complied with the Corporate Governance Code during the period, with a noted deviation regarding directors' appointment letters - The Company complied with the code provisions of the Corporate Governance Code in Appendix C1 of the Main Board Listing Rules, except for a deviation regarding directors' letters of appointment (Code C.3.3)[53] - All directors have confirmed their compliance with the Model Code for Securities Transactions by Directors of Listed Issuers and the Company's adopted code of conduct[54] - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares during the period[55]