中国光大控股(00165) - 2024 - 中期财报

Financial Statements Consolidated Statement of Profit or Loss The Group reported a net loss in H1 2024, reversing from profit, primarily due to significant investment losses and a 23.7% decline in turnover Consolidated Statement of Profit or Loss (HKD thousands) | Indicator | H1 2024 (HKD thousands) | H1 2023 (HKD thousands) | | :--- | :--- | :--- | | Turnover | 3,028,249 | 3,968,827 | | (Loss)/Profit from operating activities | (907,719) | 568,247 | | (Loss)/Profit before tax | (1,520,061) | 276,002 | | (Loss)/Profit for the period | (1,242,981) | 410,610 | | (Loss)/Profit attributable to shareholders of the Company | (1,282,100) | 312,676 | | Basic and diluted (loss)/earnings per share | HKD (0.761) | HKD 0.186 | Consolidated Statement of Financial Position As of June 30, 2024, total assets slightly decreased, net assets declined due to period losses impacting shareholders' equity, and the asset-liability ratio slightly rose to 57.9% Consolidated Statement of Financial Position (HKD thousands) | Indicator | June 30, 2024 (HKD thousands) | December 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | Non-current assets | 53,985,691 | 56,220,941 | | Current assets | 24,127,375 | 23,366,981 | | Total assets | 78,113,066 | 79,587,922 | | Current liabilities | (17,919,144) | (21,333,342) | | Non-current liabilities | (27,316,980) | (24,148,794) | | Total liabilities | (45,236,124) | (45,482,136) | | Net assets | 32,876,942 | 34,105,786 | | Equity attributable to shareholders of the Company | 29,823,013 | 30,989,721 | Consolidated Statement of Cash Flows In H1 2024, the Group generated net cash inflows from operating and investing activities, leading to a net increase in cash and bank balances and maintaining robust liquidity Consolidated Statement of Cash Flows (HKD thousands) | Activity Type | H1 2024 (HKD thousands) | H1 2023 (HKD thousands) | | :--- | :--- | :--- | | Net cash inflow from operating activities | 606,472 | 1,415,221 | | Net cash inflow from investing activities | 55,538 | 20,408 | | Net cash (outflow)/inflow from financing activities | (367,275) | 746,211 | | Net increase in cash and bank balances | 294,735 | 2,181,840 | | Cash and bank balances at period-end | 9,671,204 | 10,064,618 | Notes to the Financial Statements Note 1 & 2 - Basis of Preparation and Accounting Policies This interim financial report, prepared under HKAS 34, maintains consistent accounting policies with 2023, with new HKFRS amendments having no significant financial impact - During the reporting period, the Group adopted amendments to HKAS 1 regarding liability classification and HKFRS 16 regarding sale and leaseback transactions for the first time, but these changes had no significant impact on the Group's financial statements[17][18] Note 3 & 27 - Revenue and Segment Information The Group's revenue primarily from fund management and proprietary investment saw fund management turn to a loss in H1 2024 due to market downturns, with mainland China as the main revenue and asset base Revenue by Category (HKD thousands) | Revenue Category (HKD thousands) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue from contracts with customers | 213,127 | 320,699 | | Net investment (loss)/income | (389,551) | 731,601 | Profit/(Loss) by Business Segment (Before Tax, HKD thousands) | Business Segment (Before Tax (Loss)/Profit, HKD thousands) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Fund management business | (668,921) | 756,731 | | Proprietary investment business | (43,842) | 194,965 | - Geographically, the vast majority of the Group's designated non-current assets (approximately HKD 22.7 billion) are located in mainland China, with Hong Kong and other regions accounting for approximately HKD 2.1 billion[109] Note 9, 10, 11, 12 - Key Investment Assets As of June 30, 2024, the Group's key investment assets include significant holdings in associates (primarily Everbright Securities and CALC), joint ventures, FVTOCI equity investments, and FVTPL financial assets - The Group holds 20.73% equity in Everbright Securities and 38.08% in China Aircraft Leasing Group (CALC), representing significant investments in associates[32] - The Group's investment in China Everbright Bank is designated as a financial asset at FVTOCI, with an investment cost of HKD 1.407 billion and a fair value of HKD 5.463 billion at period-end[38] Investment Asset Categories (HKD thousands) | Investment Asset Category (HKD thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Investments in associates | 17,861,199 | 17,709,713 | | Investments in joint ventures | 906,296 | 932,964 | | Equity investments designated at FVTOCI | 5,462,542 | 5,032,899 | | Financial assets at FVTPL | 28,486,951 | 30,812,041 | Note 17 & 18 - Borrowings and Bonds As of June 30, 2024, total interest-bearing liabilities slightly increased, comprising bank borrowings and bonds payable, with a higher proportion of debt maturing within one year Liabilities by Category (HKD thousands) | Liability Category (HKD thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Bank borrowings | 14,332,684 | 18,603,608 | | Bonds payable | 18,626,390 | 13,793,500 | | Total | 32,959,074 | 32,397,108 | - The vast majority of bank borrowings, approximately HKD 12.721 billion, are unsecured, and all bonds payable are unsecured[53][57] Note 25 - Financial Risk Management The Group has established a comprehensive risk management framework to identify, assess, and control key financial risks, including credit, liquidity, interest rate, foreign exchange, and equity price risks - Credit risk is managed through credit policies, procedures, and limits, utilizing the Expected Credit Loss (ECL) model for financial asset impairment assessment[77][80] - Liquidity risk is managed by regularly assessing funding needs and maintaining sufficient cash and committed credit facilities to meet short-term and long-term liquidity requirements[82] - Market risk, including interest rate, foreign exchange, and equity price risks, is regularly monitored, with hedging considered for significant foreign exchange exposures, and investment portfolios supervised by specific guidelines[83][84][85] Management Discussion and Analysis Business Overview Everbright Holdings is a leading Chinese cross-border asset management and private equity firm, with core businesses in fund management (AUM HKD 122.3 billion) and proprietary investments, including cornerstone holdings - The company is positioned as a Hong Kong-listed entity with private equity investment management as its core business, boasting over 26 years of experience, and its largest shareholder is China Everbright Group (49.74% stake)[116] Business Segments and Key Metrics | Business Segment | Key Metrics | | :--- | :--- | | Fund Management Business | AUM approximately HKD 122.3 billion, Everbright Holdings' committed capital approximately 28% | | Proprietary Investment Business | Total assets approximately HKD 32.2 billion, including significant investment enterprises, financial investments, and cornerstone investments | Review and Analysis In H1 2024, China's private equity market downturn and capital market adjustments impacted performance, yet the company focused on core business, strengthened post-investment management, and accelerated exits - Macro and industry challenges: China's private equity market saw significant year-on-year declines in total fundraising and investment activity, with exit cases down 64% year-on-year and IPO exits continuing to shrink[123] - Key performance drag: Ongoing capital market adjustments led to significant unrealized losses in existing listed projects and impacted valuations of unlisted projects, resulting in poor investment performance[124] - Responses and progress include strategic investments in intelligent connected vehicles, successful IPOs of Longcheer Technology and Arbe, fund-level cash回笼 of HKD 1.81 billion with a MOIC of approximately 2.18x, and a focus on new productive forces[126][131] Financial Performance Analysis In H1 2024, the Group reported a net loss of HKD 1.282 billion due to significant investment losses, particularly unrealized losses, yet maintained stable financial health and declared an interim dividend Revenue Items (HKD billions) | Revenue Item (HKD billions) | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue from contracts with customers | 2.13 | 3.21 | (33.6%) | | Net investment (loss)/income | (3.90) | 7.32 | Not applicable | | — Unrealized investment loss | (12.13) | (2.24) | >100% | | Share of profits from associates | 1.78 | 4.52 | (60.6%) | | Total Revenue | (1.14) | 15.40 | Not applicable | Profit Items (HKD billions) | Profit Item (HKD billions) | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | (Loss)/Profit from fund management business | (6.39) | 7.62 | Not applicable | | (Loss)/Profit from proprietary investment business | (0.17) | 3.02 | Not applicable | | (Loss)/Profit attributable to shareholders of the Company | (12.82) | 3.13 | Not applicable | - The Board declared an interim dividend of HKD 0.05 per share for 2024, a 67% decrease from HKD 0.15 per share in the prior period[147] Key Financial Ratios | Key Financial Ratio | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Interest-bearing debt ratio | 100.2% | 95.0% | | Asset-liability ratio | 57.9% | 57.1% | | Current ratio | 134.6% | 109.5% | Operating Performance Analysis As of June 30, 2024, fund management AUM slightly decreased, with primary market exits and steady secondary market performance; proprietary investment totaled HKD 32.2 billion, dominated by cornerstone investments - The decline in fund management AUM was primarily due to fund maturities and exits, redemptions and net asset value decreases in secondary market funds, and foreign exchange impacts[150] - Primary market funds exited projects including JD Logistics, contributing strong investment returns and cash回流[154] - Everbright Ashmore, the real estate investment platform, manages approximately RMB 24.4 billion in funds and RMB 46.8 billion in assets, ranking first in the industry for ten consecutive years[159] Proprietary Investment Scale (HKD billions) | Proprietary Investment Scale (HKD billions) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Significant investment enterprises | 47 | 47 | | Financial investments | 87 | 92 | | Cornerstone investments | 188 | 182 | | Total | 322 | 321 | Outlook For H2, the company anticipates continued moderate economic recovery and positive policy impacts, focusing on 'new productive forces' to optimize business layout, enhance competitiveness, and accelerate fundraising and exits - The company remains confident in the long-term development of China's economy and private equity market, recognizing both challenges and opportunities[173] - Strategic focus will center on 'new productive forces' such as 'three new and one high' to drive business transformation and upgrading, promoting high-quality development in cross-border asset management[170][173] - Specific initiatives include intensified fundraising and collaboration with 'patient capital' like insurance funds, focused investment in hard tech, low-altitude economy, and new energy sectors, strengthened compliance and empowerment of investee companies, and accelerated and diversified exits for existing projects[172] Financial Position and Resources As of June 30, 2024, the Group's total assets were HKD 78.113 billion and net assets HKD 32.877 billion, with ample financial resources including cash and unutilized bank credit, demonstrating prudent liquidity management Financial Position (HKD billions) | Financial Position (HKD billions) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total assets | 78.113 | 79.588 | | Net assets | 32.877 | 34.106 | | Equity attributable to shareholders of the Company | 29.823 | 30.990 | | Equity per share (HKD) | 17.70 | 18.39 | - The Group's total interest-bearing liabilities amounted to HKD 32.959 billion, with approximately 39% as floating-rate and 61% as fixed-rate borrowings; debt currencies are primarily RMB (64%), HKD (35%), and USD (1%)[177] Other Information This report discloses major shareholder holdings, corporate governance compliance, director changes, and interim dividend distribution, with the company complying with most code provisions and declaring an interim dividend - Major Shareholder: Central Huijin Investment Ltd indirectly holds 49.74% of the company's shares through China Everbright Group[186][187] - Interim Dividend: An interim dividend of HKD 0.05 per share was declared, payable on October 10, 2024; to be eligible, share transfers must be completed by 4:30 p.m. on September 19, 2024[192][193] - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed equity securities[194]