HK FERRY (HOLD)(HK:00050)2025-03-18 13:39Financial Performance - The group's basic profit for the year ended December 31, 2024, was HKD 158 million, an increase of approximately 10% compared to the same period last year[3]. - The after-tax consolidated profit for the period was approximately HKD 160 million, a decrease of about 14% compared to the after-tax consolidated profit of HKD 185 million for the same period in 2023[3]. - Revenue for the year was HKD 422.91 million, up from HKD 374.61 million in 2023, representing an increase of approximately 12.9%[4]. - Operating profit decreased to HKD 134.94 million from HKD 174.33 million, reflecting a decline of about 22.6%[4]. - Earnings per share for the year were HKD 0.46, down from HKD 0.53 in 2023, indicating a decrease of approximately 13.2%[4]. - Total comprehensive income for the year was HKD 177.71 million, slightly down from HKD 185.73 million in 2023[5]. - The pre-tax profit for 2024 was HKD 163,875,000, a decrease from HKD 190,393,000 in 2023, representing a decline of approximately 13.5%[30]. Revenue Breakdown - Total revenue for the year 2024 reached HKD 591.53 million, an increase from HKD 470.85 million in 2023, representing a growth of approximately 25.6%[16]. - Revenue from ferry, shipyard, and related businesses increased to HKD 179.42 million in 2024, compared to HKD 166.04 million in 2023, reflecting a growth of approximately 8.1%[16]. - The healthcare, medical beauty, and beauty services segment reported a revenue of HKD 40.21 million in 2024, significantly up from HKD 14.08 million in 2023, marking an increase of about 185.5%[16]. - The rental income from retail shops for the year 2024 was approximately HKD 125 million, with full occupancy for "嘉賢居" and "城中匯" shops, and a 95% occupancy rate for "亮賢居" shops[44]. Asset and Equity Position - Non-current assets totaled HKD 3.51 billion, compared to HKD 3.50 billion in 2023, showing a marginal increase[7]. - Current assets increased to HKD 3.87 billion from HKD 3.79 billion, reflecting a growth of approximately 2.1%[7]. - The company's total equity attributable to shareholders was HKD 7.06 billion, up from HKD 6.97 billion in 2023, representing an increase of about 1.3%[7]. - The group’s current assets were HKD 3.867 billion and current liabilities were HKD 228 million as of December 31, 2024, resulting in a current ratio of 17 times[52]. - As of December 31, 2024, the group's shareholders' equity rose by approximately 1.3% to HKD 7.063 billion, mainly due to recognized property leasing profits[52]. Expenses and Costs - Employee costs totaled HKD 140,678,000 in 2024, compared to HKD 114,901,000 in 2023, reflecting an increase of about 22.5%[5]. - The depreciation expense for 2024 was HKD 18,059,000, slightly down from HKD 18,240,000 in 2023, a decrease of about 1%[5]. - The company recognized an impairment loss of HKD 19.43 million across its segments in 2024, slightly down from HKD 19.61 million in 2023[20]. - Other income decreased to HKD 69.76 million in 2024 from HKD 83.72 million in 2023, a decline of approximately 16.7%[21]. Segment Performance - The segment profit for property investment was HKD 76.51 million in 2024, down from HKD 123.69 million in 2023, indicating a decline of about 38.1%[19]. - The company reported a total loss of HKD 9.24 million in the property development segment for 2024, worsening from a loss of HKD 0.72 million in 2023[19]. - Securities investment segment profit improved to HKD 16.37 million in 2024, compared to a loss of HKD 2.25 million in 2023, showing a turnaround[19]. - The group recorded a loss of HKD 8 million in the ferry and shipyard business, which increased by 4% compared to the previous year[48]. Future Outlook and Strategy - The group anticipates that its main revenue in 2025 will continue to come from property rental income and bank deposit interest[59]. - The group plans to adopt a flexible leasing policy to retain existing tenants and attract new ones[59]. - The group has adjusted its strategy to seek stable rental income by considering leasing the entire "Ying On" project[58]. - The group plans to expand the AMOUR clinic's operational area to provide higher quality medical beauty services[49]. - The group has signed a memorandum of understanding for a mid-term lease for all 262 residential units in the "映岸" project, pending government approval[47]. Tax and Dividend Information - The current tax provision for Hong Kong profits tax was HKD 9,027,000 for 2024, down from HKD 12,361,000 in 2023, indicating a reduction of approximately 27.5%[25]. - The total dividend payable to equity shareholders for 2024 was HKD 89,068,000, unchanged from 2023[28]. - The company plans to distribute a final dividend of HKD 0.15 per share for 2024, consistent with the previous year[28]. Market Conditions - The Hong Kong private residential property prices are expected to decline by approximately 7.1% year-on-year in 2024, marking three consecutive years of decline[57]. - The Hong Kong government has announced measures to relax mortgage loan limits, adjusting the maximum mortgage ratio for residential properties to 70%[57]. - The rental demand for private residential properties in Hong Kong is projected to increase, with rents expected to rise by approximately 3.9% year-on-year in 2024[58]. - The Hong Kong government has implemented various talent schemes, resulting in approximately 180,000 talents and their families moving to Hong Kong by the end of 2024[58]. Governance and Compliance - The group has complied with the corporate governance code as per the Listing Rules for the year ending December 31, 2024[61]. - The group holds ample cash with no borrowings, positioning itself to wait for new investment opportunities[59].