上海实业控股(00363) - 2024 - 中期财报

Chairman's Statement The Chairman's Statement reviews the operating environment and performance for the first half of 2024, highlighting the Group's resilience and achievements amidst global challenges Key Performance Indicators | Indicator | H1 2024 | YoY Change | | :--- | :--- | :--- | | Total Revenue | HKD 10.369 billion | -18.9% | | Net Profit | HKD 1.201 billion | -12.7% | | Interim Dividend | HKD 42 cents per share | Unchanged | Profit/Loss by Business Segment | Business Segment | H1 2024 Profit/Loss | YoY Change | | :--- | :--- | :--- | | Infrastructure and Environmental | Profit HKD 1.056 billion | -11.6% | | Real Estate | Loss HKD 131 million | Swing to loss | | Consumer Products | Profit HKD 320 million | +150.4% | | Healthcare | Profit HKD 64.77 million | -6.4% | - Looking ahead to the second half of the year, the Group will continue to face challenges from international uncertainties but also sees opportunities, focusing on reform, innovation, and risk control to enhance profitability and optimize its asset structure[23] Business Review, Discussion and Analysis This section details the operational performance of the Group's core business segments in H1 2024, noting that the overall decline was mainly due to a high comparison base Overall Performance For the six months ended June 30, 2024, the Group's turnover and profit attributable to shareholders decreased, primarily due to a significant one-off gain in the prior period Overall Financials | Indicator | H1 2024 | YoY Change | | :--- | :--- | :--- | | Turnover | HKD 10.369 billion | -18.9% | | Profit Attributable to Shareholders | HKD 1.201 billion | -12.7% | Infrastructure and Environmental Business As the Group's primary profit source, this segment contributed HKD 1.056 billion, accounting for approximately 80.6% of the Group's net business profit - The Infrastructure and Environmental business recorded a profit of HKD 1.056 billion, a decrease of 11.6% year-on-year, representing 80.6% of the Group's net business profit[28] Toll Roads/Bridges Benefiting from post-pandemic travel recovery and natural traffic growth, the Group's toll roads and the Hangzhou Bay Bridge achieved stable growth in traffic and toll revenue Toll Road/Bridge Performance | Toll Road/Bridge | Net Profit Attributable to the Group | YoY Change | Toll Revenue | YoY Change | Traffic Volume (vehicles) | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jing-Hu Expressway (Shanghai Section) | HKD 190 million | -0.7% | HKD 281 million | -3.2% | 20.61 million | +2.9% | | Hu-Kun Expressway (Shanghai Section) | HKD 279 million | -4.8% | HKD 445 million | -1.7% | 37.24 million | +3.8% | | Hu-Yu Expressway (Shanghai Section) | HKD 76 million | -15.1% | HKD 243 million | -6.4% | 17.85 million | -4.6% | | Hangzhou Bay Bridge | HKD 106 million | -4.7% | HKD 1.133 billion | -1.2% | 10.26 million | +5.7% | | Total | HKD 651 million | -5.0% | HKD 2.102 billion | -2.2% | 85.96 million | +1.9% | Water Services/Clean Energy This segment was impacted by reduced construction revenue, but operational businesses maintained stable growth, with a focus on strategic regional expansion - SIIC Environment: Revenue was RMB 3.324 billion (-17.3%) and net profit was RMB 321 million (-14.8%), mainly due to lower construction revenue, while operating income grew 5.9%[32] - General Water of China: Revenue was HKD 956 million (-10.3%) with a net profit of HKD 130 million (-26.5%), and it was named one of the "Top 10 Most Influential Enterprises in China's Water Industry" for the 21st consecutive year[34] - Canvest Environmental: Revenue was HKD 2.130 billion (-28.5%) and profit attributable to equity holders was HKD 445 million (-27.1%), primarily due to reduced construction revenue as most projects are now operational; the company received a privatization offer[36] - SusEnvironment: Waste intake volume increased by 4.8% year-on-year, and on-grid electricity generation grew by 3.3%[37] Healthcare Business The healthcare business contributed a profit of HKD 64.77 million, a slight decrease of 6.4% year-on-year, accounting for about 5.0% of the Group's net business profit - Shanghai Pharma, in which the Group holds a 40% stake via a joint venture, recorded revenue of RMB 139.658 billion (+5.2%) and a net profit of RMB 598 million[43] New Frontier Business This business, mainly focused on photovoltaic power generation, saw a 6.8% decrease in on-grid electricity due to higher-than-expected power curtailment and equipment failures - Galaxy Energy's 15 photovoltaic power stations generated approximately 519 million kWh of on-grid electricity, a 6.8% decrease year-on-year, mainly due to higher-than-expected power curtailment and equipment failures at individual stations[44] Real Estate Business Affected by the sluggish mainland China property market and a high prior-year base, the real estate business swung from a profit to a loss of HKD 131 million - The real estate business recorded a loss of HKD 131 million compared to a profit in the prior period, mainly due to a significant one-off gain by SIIC Development last year[45] - SIIC Development: Reported operating revenue of RMB 1.029 billion (-70.2%) and a net loss of RMB 177 million, a swing from profit to loss year-on-year[46] - SIIC Urban Development: Turnover increased by 65.8% to HKD 2.981 billion, but it recorded a loss attributable to shareholders of HKD 232 million, mainly due to a decline in the valuation of investment properties[47] Consumer Products Business The consumer products business delivered a strong performance, with profit contribution reaching HKD 320 million, a significant increase of 150.4% year-on-year Tobacco Business Nanyang Tobacco capitalized on post-pandemic market opportunities, achieving double-digit growth in both revenue and profit through market expansion and product mix optimization Tobacco Business Performance | Indicator | H1 2024 | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | HKD 1.093 billion | +68.7% | | Net Profit | HKD 281 million | +173.5% | | Sales Volume | Over 569,000 cases | +185.1% | Printing Business Wing Fat Printing benefited from a recovery in tobacco and liquor packaging, recording solid growth in both turnover and net profit through operational efficiencies Printing Business Performance | Indicator | H1 2024 | YoY Growth | | :--- | :--- | :--- | | Turnover | HKD 751 million | +3.7% | | Net Profit | HKD 47.66 million | +63.8% | Financial Review This chapter provides an in-depth financial analysis of the Group's H1 2024 performance, covering key metrics, segmental contributions, and financial risk management Key Financial Data | Key Financial Data | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | HKD 174.887 billion | HKD 179.312 billion | | Equity Attributable to Owners | HKD 46.280 billion | HKD 46.603 billion | | Net Asset Value Per Share | HKD 42.57 | HKD 42.86 | | Net Gearing Ratio | 71.54% | 66.30% | Profit Contribution by Business (HKD million) | Business Segment | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Infrastructure and Environmental | 1,056.3 | 1,194.7 | -11.6% | | Real Estate | -130.7 | 101.5 | N/A | | Consumer Products | 320.2 | 127.9 | +150.4% | | Healthcare | 64.8 | 69.2 | -6.4% | - The Board declared an interim dividend of HKD 42 cents per share, unchanged from the same period last year, representing an interim dividend payout ratio of 38.0%[73] - As of June 30, 2024, the Group's total loans amounted to approximately HKD 60.180 billion, with sufficient liquidity from bank balances and short-term investments of about HKD 27.284 billion[77][82] Condensed Consolidated Financial Statements This section presents the unaudited condensed consolidated financial statements for the six months ended June 30, 2024, as reviewed by the independent auditor, Deloitte Review Report on the Condensed Consolidated Financial Statements The independent auditor, Deloitte Touche Tohmatsu, has reviewed the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410 - Review Conclusion: Nothing has come to the auditor's attention that causes them to believe the financial statements are not prepared in all material respects in accordance with HKAS 34[88] Condensed Consolidated Statement of Profit or Loss This statement presents the Group's revenue, costs, expenses, and taxes for the period, resulting in the profit for the period and earnings per share Statement of Profit or Loss Highlights | Item (HKD '000) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Turnover | 10,369,131 | 12,791,180 | | Gross Profit | 3,307,543 | 4,270,016 | | Profit Before Tax | 2,059,388 | 2,930,531 | | Profit for the Period | 1,408,494 | 1,843,908 | | Profit Attributable to Owners of the Company | 1,200,896 | 1,375,697 | | Basic Earnings Per Share (HKD) | 1.105 | 1.265 | Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This statement builds on the profit for the period by including other comprehensive income items, such as foreign currency translation differences Condensed Consolidated Statement of Financial Position This statement provides a snapshot of the Group's financial health by presenting its assets, liabilities, and equity at the end of the reporting period Condensed Consolidated Statement of Changes in Equity This statement details the changes in the components of equity attributable to the company's owners and non-controlling interests during the period Condensed Consolidated Statement of Cash Flows This statement summarizes the inflows and outflows of cash and cash equivalents from operating, investing, and financing activities during the period Notes to the Condensed Consolidated Financial Statements The notes provide detailed supplementary information for the financial statements, including the basis of preparation, accounting policies, and segmental information - The financial statements are prepared in accordance with Hong Kong Accounting Standard (HKAS) 34 "Interim Financial Reporting" with no material impact from new HKFRS amendments[101][104] - Interim Dividend: The Board resolved to declare a 2024 interim cash dividend of HKD 42 cents per share, consistent with the same period in 2023[119] - Financial Guarantees: The Group provided bank credit guarantees totaling approximately HKD 3.644 billion for property buyers, associates, and joint ventures[129] - Related Party Transactions: Disclosed transactions with fellow subsidiaries and related parties, and noted that a change of control in the parent company could trigger early repayment clauses for bank credit of approximately HKD 6.9 billion[135] Other Information This section provides additional corporate information, including major shareholder interests, director changes, employee policies, and corporate governance compliance - Major Shareholder: As of June 30, 2024, Shanghai Industrial Investment (Holdings) Company Limited (SIIC) was deemed to hold 686,654,748 shares, representing approximately 63.16% of the issued shares[141] - Employees: As of June 30, 2024, the Group had 18,873 employees[144] - Purchase of Securities: During the period, subsidiary SIIC Urban Development repurchased and cancelled 9,368,000 of its own shares on the Stock Exchange[146] - Corporate Governance: The Company complied with all code provisions of the Corporate Governance Code during the reporting period, and directors adhered to the standard code for securities transactions[145]