CK ASSET(HK:01113)2025-04-15 09:10Financial Performance - Group revenue for 2024 was HKD 45,529 million, a decrease of 3.6% compared to 2023[7] - Shareholders' profit attributable to the company for 2024 was HKD 13,657 million, down 21.5% from HKD 17,340 million in 2023[7] - The group's profit before property revaluation for the year ended December 31, 2024, was HKD 11,688 million, a decrease of 15.1% compared to HKD 14,014 million in 2023[35] - Shareholders' profit for the year was HKD 13,657 million, down 20.0% from HKD 17,340 million in 2023, with earnings per share of HKD 3.89 compared to HKD 4.86 in the previous year[36] - The group's total revenue for the year was HKD 2.209 billion, down from HKD 4.475 billion in 2023, with significant declines in both Hong Kong and mainland China[54] Dividends and Share Repurchase - The group declared a final dividend of HKD 1.35 per share for 2024, a decrease of 16.5% from HKD 1.62 in 2023[8] - The proposed final dividend for 2024 is HKD 1.35 per share, a decrease of 16.7% from HKD 1.62 in 2023, resulting in a total annual dividend of HKD 1.74 per share, down 15.1% from HKD 2.05 in 2023[37] - The group repurchased 48,906,000 shares at a cost exceeding HKD 1.5 billion, reflecting confidence in long-term business prospects[39] - The company repurchased a total of 48,906,000 shares at a total cost of HKD 1.546 billion from March to July 2024, with all repurchased shares subsequently cancelled[56] Assets and Liabilities - The group's investment properties increased to HKD 150,708 million in 2024, up 2.0% from HKD 147,223 million in 2023[8] - The group reported a total asset value of HKD 460,449 million in 2024, a slight increase from HKD 457,085 million in 2023[8] - The group’s non-current liabilities increased to HKD 60,249 million in 2024, up from HKD 57,649 million in 2023[8] - The net debt to total equity ratio at the end of the year was approximately 4.0%, with credit ratings maintained at "A/stable" by S&P and "A2 stable" by Moody's, indicating financial stability[48] Property and Project Development - The group launched new residential projects, including Blue Coast II, which received strong market response[32] - Property sales revenue for 2024 decreased compared to 2023, but the group successfully sold several residential projects, including Blue Coast and Perfect Ten, amidst a challenging market[40] - The property sales revenue for the year was HKD 9.962 billion, a decrease from HKD 13.153 billion in 2023, primarily due to weaker market conditions in Hong Kong and mainland China[54] - The group completed several properties in 2024, including 504,341 square feet of the Cheung Kong Center Phase II in Central, and 2,814,114 square feet of the Yichui Garden in Beijing, both with 100% ownership[51] - The group anticipates completing properties in 2025, including 1,648,685 square feet of the High Yat Shang Cheng in Shanghai, with a 60% ownership stake[52] Revenue Streams - The rental income from the group's property leasing business showed moderate growth, supported by long-term leases in the UK social infrastructure investment portfolio[41] - The hotel and serviced apartment business recorded revenue growth, with ongoing investments in technology to enhance operational efficiency and customer experience[42] - The English pub business generated revenue of HKD 24.425 billion in 2024, an increase of HKD 1.208 billion (approximately 5.0%) compared to HKD 23.217 billion in 2023, primarily driven by optimized pricing[63] - The hotel and serviced apartment business generated revenue of HKD 4.390 billion, slightly up from HKD 4.383 billion in 2023, with an average occupancy rate of 82%[61] Sustainability and Corporate Responsibility - The group established a science-based target for greenhouse gas emissions reduction, receiving independent certification for its short-term and net-zero targets[45] - The group has received multiple green building certifications and awards in 2024, including the final Platinum rating under the Comprehensive Assessment Scheme for Green Building and the Platinum Certificate for LEED Operations and Maintenance[151] - The group emphasizes sustainable development and environmental protection, implementing resource-saving measures and waste management strategies to minimize operational environmental impact[151] - The group recognizes the importance of sustainable business practices and continuously evaluates environmental, social, and governance issues in its investment decisions[150] - The group has established corporate social responsibility, environmental policies, sustainable building guidelines, and biodiversity policies to guide its environmental protection efforts[151] Governance and Management - The company appointed independent non-executive directors with extensive experience in finance and management, including Mr. Lin Shaokang and Ms. Li Huimin, who have over 30 years and 40 years of experience respectively[90][91] - The company has established a strong governance structure with independent directors serving on various committees, ensuring compliance and oversight[90][91][92] - The management team includes professionals with advanced degrees and certifications, contributing to the company's financial and operational strategies[93][94] - The company is committed to maintaining high standards of corporate governance and financial reporting, as evidenced by the qualifications of its audit committee members[90][91] Market Outlook and Strategic Initiatives - The group expects Hong Kong's GDP to grow by 2.5% in 2024, supported by government measures to boost the economy and the real estate market[47] - The company is focused on expanding its market presence and enhancing its operational efficiency through strategic appointments and experienced leadership[90][91][92] - The company is considering strategic acquisitions to bolster its market position, with a budget of $100 million allocated for potential deals[89] - The company has a commitment to expanding its business development capabilities, with a focus on mergers and acquisitions[118] Related Party Transactions - The company has established a framework for ongoing related party transactions with Cheung Kong Group since its listing in June 2015[182] - The company received HKD 666 million from leasing transactions with Cheung Kong Group for the fiscal year ending December 31, 2024[183] - The annual cap for leasing transactions with Cheung Kong Group is set at HKD 754 million for 2024[183] - The company paid HKD 35 million for project-related materials from Cheung Kong Group for the fiscal year ending December 31, 2024[184] - The annual cap for project-related materials transactions with Cheung Kong Group is set at HKD 198 million for 2024[184]