POWER ASSETS(HK:00006)2021-04-01 09:01Financial Performance - The company reported a shareholder profit of HKD 6,132 million for 2020, a decrease of 14% from HKD 7,131 million in 2019[20]. - Earnings per share decreased to HKD 2.87 from HKD 3.34, reflecting a decline of approximately 14%[20]. - The total equity amounted to HKD 84,766 million, slightly down from HKD 85,492 million in the previous year[20]. - The group’s net profit attributable to shareholders decreased to HKD 61.32 billion in 2020 from HKD 71.31 billion in 2019, primarily due to a one-time non-cash charge of HKD 7.8 billion related to deferred tax liabilities in the UK[25]. - The UK business contributed a profit of HKD 24.6 billion in 2020, down from HKD 34.89 billion in 2019, impacted by the COVID-19 pandemic and a corporate tax rate of 19%[25]. - The Australian business contributed a profit of HKD 1.329 billion, down from HKD 1.445 billion in 2019, primarily due to the negative impact of the pandemic[29]. - The profit contribution from the mainland China operations decreased to HKD 98 million in 2020, compared to HKD 415 million in 2019, following the transfer of two coal-fired power plants to local partners[30]. Cash Flow and Dividends - The company maintained a cash balance of HKD 5,427 million, an increase from HKD 4,876 million in 2019[20]. - The proposed final dividend is HKD 2.04 per share, increasing from HKD 2.03 in 2019, resulting in a total annual dividend of HKD 2.81 per share for 2020[25]. - The operating cash flow increased from HKD 53.68 billion in 2019 to HKD 55.33 billion in 2020[25]. - The financial position remained strong with net cash of approximately HKD 18 billion as of December 31, 2020, up from HKD 16 billion in 2019[25]. Operational Capacity and Infrastructure - The total length of gas and oil pipelines reached 114,000 kilometers, supporting extensive distribution capabilities[8]. - The total generation capacity for renewable energy and waste-to-energy reached 1,004 MW[8]. - The gas generation capacity was reported at 4,754 MW, while coal and oil generation capacity stood at 4,216 MW[8]. - The company serves a total of 19,192,000 customers, indicating a strong market presence[8]. - The group serves over 19 million customers across 9 global markets with a total generation capacity of approximately 10,000 MW[50]. - In the UK, the group operates four companies providing services to over 13 million residential and commercial customers, with a total generation capacity of 1,144 MW and a network length of 189,400 km[55]. Sustainability and Environmental Initiatives - The group is focused on sustainable growth through strategic investments in energy and utility sectors globally[4]. - The group is committed to achieving net-zero greenhouse gas emissions by 2050, in line with UK government targets[34]. - The group is actively investing in green hydrogen projects, including the Hydrogen Park SA project in South Australia, aimed at reducing carbon content in gas supply[29]. - The group achieved all operational targets at the Jinwan Combined Heat and Power Plant in mainland China, offsetting 199,000 tons of carbon emissions[30]. - The group focuses on reducing carbon emissions through large-scale projects and has implemented electric vehicle charging facilities in multiple regions including Hong Kong, the UK, Australia, and New Zealand[53]. - The group has established a sustainability committee to oversee its sustainability strategies and provide recommendations to the board[155]. Customer Support and Community Engagement - The company launched community relief measures to support residential and commercial customers affected by the economic slowdown[28]. - Hong Kong Electric introduced various relief measures for residential and commercial customers affected by the pandemic, including allowing eligible customers to defer bill payments and waiving electricity tariff increases[79]. - The group has launched five relief measures to assist SMEs and customers, including waiving electricity tariff increases and providing energy efficiency equipment subsidies[43]. - The group continues to provide assistance to residential and commercial customers in distress during the pandemic, ensuring high customer satisfaction and operational reliability[52]. Strategic Development and Future Outlook - The company is focused on digitalizing the distribution network to enhance flexibility and accommodate more renewable energy sources[34]. - The company is advancing a five-year development plan to increase gas generation to 70% by the end of 2023[28]. - The group plans to increase the proportion of gas-fired power generation to 70% of total generation by the end of 2023 in Hong Kong[34]. - The company is expanding its market presence in D regions, aiming for a market share increase of E% by the end of the fiscal year[170]. - Strategic acquisitions are planned to enhance the company's portfolio, with an estimated investment of $F million[171]. Corporate Governance and Management - The company has maintained a high level of corporate governance, which is crucial for stable and transparent operations, attracting investors, and protecting shareholder interests[174]. - The board of directors is committed to maintaining strong corporate governance practices to support sustainable growth[161]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange regulations throughout the year[174]. - The management team is well-educated, with qualifications including engineering and business management degrees, enhancing the company's operational capabilities[172]. - The board is responsible for approving and monitoring the group's strategies and policies, as well as evaluating group performance[175].