NWS HOLDINGS(HK:00659)2021-03-18 09:46Financial Performance - Revenue for the six months ended December 31, 2020, was HKD 14,232.5 million, an increase of 26% compared to HKD 11,283.6 million for the same period in 2019[8]. - The attributable operating profit rose by 46% to HKD 3,336.3 million, compared to HKD 2,289.9 million in the previous year[8]. - The company's attributable operating profit increased significantly by 46% year-on-year, but the attributable profit to shareholders decreased by 60% to HKD 611.8 million due to non-operating losses[12]. - Adjusted EBITDA decreased by 4% to HKD 3,038.8 million compared to HKD 3,150.6 million in the previous year[13]. - The net profit attributable to shareholders was HKD 611.8 million, compared to HKD 903.3 million in the previous period, reflecting a decrease of 32.3%[76]. - Operating profit from continuing operations was impacted by a total of HKD 1,038.0 million in employee costs, down from HKD 1,226.4 million in the previous year, reflecting a decrease of 15.4%[111]. - The company reported a net loss from discontinued operations amounting to HKD 4.159 billion, affecting overall profitability[80]. Asset and Liability Management - The net asset value per share increased to HKD 15.32 as of December 31, 2020, up from HKD 14.69 as of June 30, 2020[9]. - The net debt ratio improved to 26% from 31% in the previous period, indicating a stronger financial position[9]. - The company reported a total asset value of HKD 23,590.7 million for the logistics segment and HKD 7,257.3 million for the aviation segment as of December 31, 2020[82]. - The total assets as of December 31, 2020, were HKD 5,909.6 million, up from HKD 4,251.7 million at the beginning of the period[71]. - The total liabilities for policyholder dividends and bonuses increased to HKD 3,509.3 million from HKD 3,334.3 million, reflecting a growth of about 5.3%[165]. - The group’s total liabilities increased to HKD 10,632.3 million as of December 31, 2020, compared to HKD 9,221.8 million as of June 30, 2020, marking an increase of 15.3%[145]. Dividends and Shareholder Returns - The interim dividend remained stable at HKD 0.29 per share, with a payout ratio of 185%, significantly higher than the 75% in the previous year[8]. - The company paid dividends amounting to HKD 1,134.3 million to shareholders during the period[48]. - The board declared an interim dividend of HKD 0.29 per share for the fiscal year 2021, expected to be distributed around April 14, 2021[190]. Investment and Strategic Initiatives - The company is committed to identifying new investment opportunities to enhance shareholder value and maintain a sustainable dividend policy[10]. - The company sold non-core assets for a total consideration of approximately HKD 3.6 billion, including the sale of its entire stake in New World First Bus Services Limited and Citybus Limited[11]. - A further sale of interests in Suez NWS Limited and Chongqing Derun Environment Co., Ltd. was announced for approximately HKD 6.5 billion, aimed at optimizing the business portfolio[11]. - The company plans to launch innovative insurance products, such as the "Yuxiang" deferred annuity plan targeting individuals aged 20 and above[28]. - The company plans to expand its market presence and invest in new technologies to enhance operational efficiency and drive future growth[76]. Segment Performance - The core business attributable operating profit reached HKD 2,322.2 million, a 13% increase from the previous year[11]. - The road segment's attributable operating profit rose by 12% to HKD 1,061.0 million, driven by a 9% increase in traffic volume and an 8% increase in toll revenue[15]. - The aviation segment maintained an attributable operating profit of HKD 271.7 million despite challenges from the COVID-19 pandemic[17]. - The insurance segment contributed HKD 462.4 million to the group's operating profit, representing a 188% increase year-on-year[20]. - The logistics segment maintained stable operating profit at HKD 336.3 million, with a 30% year-on-year increase in throughput to 2.513 million TEUs[23]. Financial Risks and Compliance - The group’s financial instruments are subject to various financial risks, including market risk, credit risk, and liquidity risk, with no significant changes in risk management policies since the last fiscal year-end[63]. - The group has maintained compliance with the Corporate Governance Code, except for the absence of the chairman at the annual general meeting[194]. - All directors confirmed compliance with the securities trading standards during the reporting period[195]. Market Outlook and Economic Conditions - China's GDP growth rate reached 2.3% in 2020, one of the fastest globally, despite ongoing COVID-19 challenges[28]. - The aviation industry is gradually recovering, with expectations of improved business conditions as domestic flights resume and travel bubbles are established[28]. - Future guidance indicates a focus on enhancing operational efficiency and exploring new technology developments to drive growth[86].