NWS HOLDINGS(HK:00659)2025-02-26 08:30Financial Performance - The group's overall attributable operating profit increased by 4% year-on-year to HKD 22.253 billion, with the core business (excluding the sold duty-free store business) recording an 8% growth in operating profit[5]. - Shareholders' profit surged by 15% to HKD 11.576 billion, reflecting strong financial performance despite market volatility[7]. - Adjusted EBITDA decreased by 5% year-on-year to HKD 35.568 billion, indicating challenges in operational profitability[8]. - The net debt increased slightly to approximately HKD 16.1 billion, resulting in a net debt-to-equity ratio of 39%, up from 35% as of June 30, 2024[15]. - The group reported a net loss of HKD 189.8 million in other comprehensive income for the period, compared to a gain of HKD 300.5 million in the previous year[76]. - The group recognized a remeasurement loss of HKD 319.9 million related to the sale of its interest in Hyva I B.V., which is included in the performance of joint ventures for the period[113]. Dividends and Shareholder Returns - The interim ordinary dividend remained stable at HKD 0.30 per share, consistent with the previous year, alongside a special dividend of HKD 0.30 per share due to recent asset sales[5]. - The group declared an interim ordinary dividend of HKD 0.30 per share, consistent with the previous year, and a special dividend of HKD 0.30 per share, bringing the total interim dividend to HKD 0.60 per share[16]. - The interim dividend for the fiscal year 2025 is set at HKD 0.30 per share, with a total payout of approximately HKD 23.985 billion, which will be paid around April 9, 2025[111]. Financial Position and Liquidity - The group maintained a robust financial position with total available liquid funds of approximately HKD 29.9 billion, including cash and bank deposits of about HKD 18.6 billion[5]. - As of December 31, 2024, the group had total available liquid assets of approximately HKD 29.9 billion, including cash and bank balances of about HKD 18.6 billion, significantly exceeding short-term debt of approximately HKD 2.3 billion[15]. - The total cash and bank balances amounted to HKD 18.6122 billion as of December 31, 2024, up from HKD 14.788 billion as of June 30, 2024[65]. - The company reported a cash and bank balance of HKD 18,612.2 million as of December 31, 2024[100]. Debt Management - The average borrowing cost decreased to approximately 4.2%, down from 4.8% in the previous year, as the group replaced higher-cost foreign debt with lower-cost RMB debt[10]. - The proportion of RMB debt in total debt increased to 63%, up from 49% a year earlier, enhancing natural hedging against potential RMB depreciation[10]. - The total debt rose from HKD 29.8954 billion on June 30, 2024, to HKD 34.6957 billion on December 31, 2024, with 7% maturing within the next 12 months[67]. - The average borrowing cost of the debt portfolio decreased to approximately 4.2% as of December 31, 2024, down from 4.8% in the previous year[67]. Segment Performance - The group's Hong Kong operations contributed 58% to the operating profit, while mainland China contributed 39%, showing a shift in regional performance[8]. - The insurance segment's attributable operating profit increased to HKD 614.3 million, up from HKD 413.0 million in the previous year[23]. - The road business's attributable operating profit decreased by 6% to HKD 767.1 million, primarily due to the expiration of the concession period for the Guangzhou North Ring Expressway[24]. - The logistics business's operating profit grew by 9% year-on-year to HKD 387.8 million, supported by continuous growth in the Asian container logistics center[34]. - The operating profit attributable to the construction segment was HKD 390.9 million, remaining stable compared to the same period last year[38]. Strategic Initiatives - The group completed the sale of its duty-free store business and plans to acquire a leading electromechanical engineering contractor, expected to enhance profitability[8]. - The company launched two innovative insurance products in the first half of the 2025 fiscal year to meet the growing demand for wealth management solutions[30]. - Chow Tai Fook Life Insurance aims to create a comprehensive wealth management platform, aligning its initiatives with the Chow Tai Fook Group's strategies[51]. - The company plans to maintain agility and efficiency in operations while closely monitoring market trends amid uncertainties in the toll road industry[49]. Market Outlook and Trends - The logistics sector is expected to benefit from ongoing demand in e-commerce and favorable government policies, with a focus on high-quality integrated logistics services[53]. - The Chinese government announced reforms to optimize freight structure and increase railway freight volume, which is anticipated to drive strong demand for China Railway Group[54]. - The Northern Metropolis development strategy in Hong Kong is projected to create significant demand for construction projects, benefiting Chow Tai Fook Construction Group[55]. Governance and Compliance - The audit committee is composed of three independent non-executive directors and is responsible for reviewing the group's financial reporting processes and risk management systems[123]. - The company has complied with all applicable provisions of the Corporate Governance Code as per the Listing Rules Appendix C1 during the period[125]. - All directors confirmed compliance with the standards set out in the Securities Trading Code during the period[127]. - The board of directors includes both executive and independent non-executive members, ensuring a balanced governance structure[128].