NWS HOLDINGS(HK:00659)2024-09-25 08:30Financial Performance - The group's overall operating profit attributable to shareholders increased by 44% to HKD 2.0842 billion for the fiscal year ending June 30, 2024[3]. - Adjusted EBITDA grew by 24% year-on-year to HKD 7.2405 billion[4]. - Basic earnings per share for fiscal year 2024 were HKD 0.56, representing a 39% year-on-year growth[4]. - Operating profit for the fiscal year 2024 reached HKD 3,662.6 million, compared to HKD 2,854.3 million in 2023, marking a growth of 28.3%[9]. - Net profit for the year was HKD 2,620.0 million, up 25.8% from HKD 2,083.1 million in 2023[36]. - The group's total revenue for the fiscal year 2024 was HKD 26,421.6 million, a decrease of 3.0% from HKD 27,121.4 million in fiscal year 2023[35]. - The company reported a significant increase in other income and gains, which rose to HKD 2,217.8 million from HKD 382.8 million in 2023[35]. - The company reported a net financial expense of HKD 744.1 million, contributing to the overall financial performance[79]. Dividends - The group proposed a final ordinary dividend of HKD 0.35 per share, a 13% increase from HKD 0.31 per share in the previous fiscal year[2]. - The total ordinary dividend for the fiscal year 2024 will be HKD 0.65 per share, up 7% from HKD 0.61 per share in fiscal year 2023[2]. - The company aims to maintain a sustainable and progressive dividend policy, demonstrating confidence in future growth prospects[7]. - The proposed final dividend for the fiscal year 2024 is HKD 0.35 per share, up from HKD 0.31 per share in 2023, contributing to a total dividend of HKD 2.44 per share for 2024 compared to HKD 0.61 per share in 2023[100]. Liquidity and Debt Management - The total available liquidity of the group as of June 30, 2024, was approximately HKD 26.8 billion, including cash and bank balances of about HKD 14.8 billion[2]. - The average borrowing cost was controlled at an annual rate of 4.7%[2]. - As of June 30, 2024, the total debt increased to approximately HKD 15.1 billion, up from HKD 4.5 billion on June 30, 2023, resulting in a net debt-to-equity ratio of 35%[6]. - The average borrowing cost for the fiscal year 2024 was maintained at approximately 4.7%, despite a rise in the Hong Kong Interbank Offered Rate (HIBOR) of over 1.5%[5]. - The company's net debt increased significantly from HKD 4.541 billion on June 30, 2023, to HKD 15.1074 billion on June 30, 2024, primarily due to dividend payments and the redemption of perpetual capital securities[31]. - The total liabilities increased significantly to HKD 111,732.0 million from HKD 98,762.6 million in 2023[37]. Segment Performance - The group's operating profit from Hong Kong contributed 59% of the total, while the contribution from mainland China was 39%[4]. - The insurance segment's operating profit surged by 54% year-on-year to HKD 964.9 million, driven by business growth and improved investment returns[14]. - The logistics segment reported an operating profit of HKD 722.3 million, reflecting a 6% increase from HKD 678.5 million in the previous year[11]. - The road segment's operating profit increased by 3% to HKD 1,571.4 million, with daily traffic volume and toll revenue growing by 7% and 5% respectively[12]. - The facilities management business turned a loss of HKD 61.9 million in FY2023 into a profit of HKD 228.3 million in FY2024, driven by the recovery of the Hong Kong Convention and Exhibition Centre and the "duty-free" store business[20]. Investments and Acquisitions - The company issued a total of RMB 3.6 billion in Panda bonds by June 30, 2024, including RMB 2 billion at an interest rate of 3.9% and RMB 100 million at 3.55%[5]. - The company completed the acquisition of shares under a conditional voluntary cash offer at HKD 9.15 per share, totaling HKD 27.27 million for 2,979,975 shares[106]. - The group announced plans to acquire a leading electromechanical engineering contractor, enhancing its capabilities and competitiveness in bidding for design and build projects[25]. Operational Improvements - The group continued to develop its business prudently, with significant improvements in its facility management and logistics operations[3]. - The average rental rate for the Asian Container Logistics Center increased by 6% year-on-year, with a strong occupancy rate of 96.3% as of June 30, 2024[16]. - The average occupancy rate for logistics properties in mainland China was 85.4% as of June 30, 2024, compared to 82.8% the previous year[16]. - The number of events held at the Convention Centre increased by 8% year-on-year to 823, with visitor numbers surging by 33% to approximately 7.3 million in FY2024[20]. Regulatory and Compliance - The company has maintained compliance with all applicable corporate governance codes as per the Hong Kong Stock Exchange's listing rules for the fiscal year 2024[105]. - The group plans to change the presentation of the consolidated financial position statement in the 2024 fiscal year to report all assets and liabilities in order of liquidity, in accordance with HKAS 1[47]. - The adoption of Hong Kong Financial Reporting Standard No. 17 significantly reduced the accounting mismatch between financial assets and insurance contract liabilities, leading to an increase in total equity at the transition date[45]. Future Outlook - The group aims to establish an ecosystem in the logistics business, leveraging high-quality warehouses in prime locations to generate strong recurring cash flow[24]. - The group is actively expanding its logistics and insurance businesses to create stable cash flow and synergistic effects with existing operations[28]. - The company plans to enhance its market expansion strategies and invest in new technologies to drive future growth[79].