电能实业(00006) - 2025 - 中期业绩

Chairman's Report Interim Results Overview The Group achieved stable financial performance in the first half of 2025, with unaudited profit increasing by 1% to HKD 3.042 billion, demonstrating resilience amidst global market volatility | Metric | H1 2025 (HKD million) | H1 2024 (HKD million) | | :--- | :--- | :--- | | Unaudited Profit | 3,042 | 3,006 | Interim Dividend The Board declared an interim dividend of HKD 0.78 per share, consistent with the prior year, payable on September 23, 2025 | Metric | 2025 (HKD per share) | 2024 (HKD per share) | | :--- | :--- | :--- | | Interim Dividend | 0.78 | 0.78 | Robust Financial Foundation The Group is committed to maintaining a strong financial position, evidenced by an "A/Stable" credit rating from S&P and a low net debt to total capital net ratio (2%), providing a solid base for future growth - The Group secured an "A/Stable" credit rating from S&P[5] | Metric | Ratio | | :--- | :--- | | Net Debt to Total Capital Net Ratio | 2% | | (Pro-forma for International Investment Portfolio) | 46% | International Energy Investment Portfolio The Group's international energy investment portfolio performed steadily, with significant growth from UK operations, a slight decline in Australian operations due to exchange rates and contract expirations, and stable or project-specific progress in Canadian and other regions - The Group actively explores renewable energy opportunities to strengthen and expand its business scope[10] UK Operations UK operations' profit contribution increased by 11% to HKD 1.724 billion, driven by strong performance from UK Power Networks (UKPN), which maintained leading safety standards and customer service rankings, while Northern Gas Networks (NGN), Wales & West Utilities (WWU), and Phoenix Energy actively participated in environmental initiatives | Region | H1 2025 Profit Contribution (HKD million) | H1 2024 Profit Contribution (HKD million) | | :--- | :--- | :--- | | UK Operations | 1,724 | 1,550 | - UKPN reported no lost-time injuries in H1 2025 and achieved a customer satisfaction rate of 94.7%[6] - NGN and WWU are actively involved in the UK's 2050 net-zero carbon emissions target, leading the East Coast Hydrogen project and the Bradford low-carbon hydrogen plant[7] - Phoenix Energy completed 4 reinforcement projects ahead of schedule within the GD23 price control period[8] Australian Operations Australian operations contributed HKD 652 million in profit, a decrease from the prior year, primarily due to a weaker Australian dollar exchange rate and the expiration of some Energy Developments Pty Ltd (EDL) contracts, alongside lower market electricity prices; Victoria Power Networks and United Energy submitted new regulatory proposals for multi-billion AUD investments to support energy transition and resilience | Region | H1 2025 Profit Contribution (HKD million) | H1 2024 Profit Contribution (HKD million) | | :--- | :--- | :--- | | Australian Operations | 652 | 681 | - Victoria Power Networks submitted a AUD 4.8 billion investment plan draft to support Victoria's energy transition[12] - United Energy submitted a AUD 1.4 billion investment plan draft to enhance energy resilience on the Mornington Peninsula and integrate smart technologies[12] - Dampier Bunbury Pipeline achieved record gas throughput and 100% reliability[13] Canadian Operations Husky Midstream delivered stable cash flows and returns, while Canadian Power's profit contribution declined due to reduced generation from Alberta's gas-fired power plants and lower electricity prices - Husky Midstream recorded stable cash flow and returns[14] - Canadian Power's profit contribution decreased due to reduced generation from Alberta's gas-fired power plants and lower electricity prices[14] Other Operations Zhuhai Jinwan Power Plant in mainland China is developing combined heat and power and energy-saving projects, while Dali and Laoting wind farms continue to reduce carbon emissions; the AVR Rozenburg incinerator in the Netherlands is progressing well with restoration, with power generation expected to commence commercial operation in Q1 2026; Wellington Electricity in New Zealand entered a new regulatory period, and Ratchaburi Power Company in Thailand secured guaranteed returns - Zhuhai Jinwan Power Plant in mainland China is developing combined heat and power and energy-saving projects, and Dali and Laoting wind farms continue to reduce carbon emissions[15] - The AVR Rozenburg incinerator in the Netherlands is in the final stages of restoration, with power generation equipment expected to commence commercial operation in Q1 2026[15] - Wellington Electricity in New Zealand commenced a new regulatory period on April 1, 2025, maintaining stable operations[15] - Ratchaburi Power Company in Thailand secured guaranteed returns from the state-owned off-taker, EGAT[16] Investment in HK Electric Investments HK Electric Investments contributed HKD 334 million in profit, providing stable returns, though HK Electric's electricity sales decreased by 3.2% year-on-year due to mild weather; capital projects for the new L13 gas-fired combined cycle generating unit and three new open cycle gas turbine units are progressing well, expected to be commissioned in 2029 and 2027/2028, respectively | Metric | H1 2025 Profit Contribution (HKD million) | H1 2024 Profit Contribution (HKD million) | | :--- | :--- | :--- | | HK Electric Investments | 334 | 316 | - HK Electric's electricity sales decreased by 3.2% compared to H1 2024, primarily due to milder weather during the period[17] - The new L13 gas-fired combined cycle generating unit is expected to be commissioned in 2029, and three new open cycle gas turbine units are expected to be operational in phases in 2027 and 2028[17] Sustainability Highlights The Group's international investment portfolio prioritizes supporting green electricity and natural gas, transitioning to renewable energy, and assisting customers in addressing climate change, with several businesses completing climate scenario analyses, actively promoting advanced technologies to protect power grids, and committing to supporting green renewable gases - The Group's businesses prioritize supporting green electricity and natural gas, transitioning to renewable energy, and assisting customers in addressing climate change[18] - Several businesses have completed climate scenario analyses, identifying climate-related risks and opportunities[18] - AGN has signed an agreement to connect the gas produced from its first biomethane project to the South Australian gas distribution network[19] - Phoenix Energy partnered with Radius Housing to pilot new home heating solutions, providing affordable and sustainable warmth[19] Post-Reporting Period Events In July 2025, Eversholt UK Rails Group Limited, jointly owned by Power Assets Holdings, Cheung Kong Infrastructure, CK Asset Holdings, and CK Hutchison Holdings, reached an agreement to sell its UK Rails business - In July 2025, Eversholt UK Rails Group Limited (jointly owned by Power Assets Holdings and others) reached an agreement to sell its UK Rails business[20] Outlook Leveraging its strong financial position and international business portfolio, the Group will continue to seek growth investment opportunities globally, focusing on well-regulated, mature energy markets to achieve predictable and attractive returns, while strengthening strategic partnerships with Cheung Kong Infrastructure and CK Asset Holdings - The Group will continue to seek suitable investment opportunities globally that drive growth[21] - The Group will focus on expanding high-quality businesses in well-regulated, mature energy markets to achieve predictable and attractive returns[21] - Power Assets Holdings will continue to strengthen its successful strategic partnerships with Cheung Kong Infrastructure and CK Asset Holdings[21] Financial Review Capital Expenditure, Liquidity, and Financial Resources The Group's capital expenditure and investments are primarily funded by operating cash flow, dividends, and other investment income; as of June 30, 2025, total unsecured bank loans increased, bank deposits and cash decreased, and committed but undrawn credit facilities significantly declined - The Group's capital expenditure and investments are primarily funded by cash generated from operating activities, dividends, and other investment income[24] | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Total Unsecured Bank Loans | 3,768 | 2,505 | Increase | | Bank Balances and Cash | 1,561 | 2,733 | Decrease | | Committed but Undrawn Bank Credit Facilities | 150 | 1,000 | Significant Decrease | Treasury Policy, Financing Activities, and Debt Structure The Group adheres to the treasury policy approved by the Board, managing currency, interest rate, and counterparty risks, and maintaining a prudent capital structure; S&P reaffirmed its "A/Stable" credit rating; as of June 30, 2025, the Group's net debt was HKD 2.207 billion, with the net debt to total capital net ratio (pro-forma) slightly increasing to 46%; the loan structure is primarily in AUD and HKD, consisting entirely of floating-rate bank loans repayable within one year - The Group's treasury policy aims to manage currency, interest rate, and counterparty risks, ensuring adequate financial resources and a prudent capital structure[25] - S&P reaffirmed the company's long-term issuer credit rating of "A" with a "Stable" outlook on February 19, 2025[25] | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Net Debt Level | 2,207 | Net Cash 228 | Shift from Net Cash to Net Debt | | Net Debt to Total Capital Net Ratio (Pro-forma) | 46% | 44% | Slight Increase | - The Group's external loan structure is 65% AUD, 35% HKD; 100% bank loans; 100% repayable within one year; 100% floating interest rates[26] | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Notional Amount of Outstanding Financial Derivative Contracts | 29,784 | 32,377 | Contingent Liabilities As of June 30, 2025, the Group had no guarantees or indemnities - As of June 30, 2025, the Group had no guarantees or indemnities[29] Employees The Group adopts a performance-based remuneration policy to ensure competitive compensation; for the six months ended June 30, 2025, total staff costs were HKD 14 million, the number of employees increased to 16, and there was no share option scheme - The Group adopts a performance-based remuneration policy and regularly monitors compensation levels to ensure competitiveness[30] | Metric | H1 2025 (HKD million) | H1 2024 (HKD million) | | :--- | :--- | :--- | | Total Staff Costs | 14 | 14 | | Number of Employees (Period-end) | 16 | 14 (December 31, 2024) | Unaudited Consolidated Financial Statements Unaudited Consolidated Income Statement For the six months ended June 30, 2025, the Group's revenue was HKD 352 million, and profit attributable to the Company's shareholders was HKD 3.042 billion, a slight increase from the prior year; basic and diluted earnings per share were HKD 1.43 | Metric | H1 2025 (HKD million) | H1 2024 (HKD million) | | :--- | :--- | :--- | | Revenue | 352 | 454 | | Share of Results of Joint Ventures | 2,136 | 2,014 | | Share of Results of Associates | 781 | 711 | | Profit Before Tax | 3,149 | 3,134 | | Profit Attributable to Company's Shareholders | 3,042 | 3,006 | | Basic and Diluted Earnings Per Share | HKD 1.43 | HKD 1.41 | Unaudited Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, total comprehensive income attributable to the Company's shareholders significantly increased to HKD 6.189 billion from HKD 2.159 billion in the prior year, primarily due to positive exchange differences on translating foreign operations | Metric | H1 2025 (HKD million) | H1 2024 (HKD million) | | :--- | :--- | :--- | | Profit Attributable to Company's Shareholders | 3,042 | 3,006 | | Exchange Differences on Translating Foreign Operations | 4,979 | (926) | | Net Investment Hedge | (1,550) | 443 | | Total Comprehensive Income Attributable to Company's Shareholders | 6,189 | 2,159 | Unaudited Consolidated Statement of Financial Position As of June 30, 2025, the Group's total non-current assets increased to HKD 94.860 billion, driven mainly by an increase in interests in joint ventures; net current liabilities significantly increased to HKD 5.245 billion, leading to a slight decrease in total assets less current liabilities; net assets increased to HKD 88.917 billion | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 94,860 | 90,589 | Increase | | Interests in Joint Ventures | 66,260 | 60,963 | Increase | | Bank Balances and Cash | 1,561 | 2,733 | Decrease | | Net Current Liabilities | (5,245) | (589) | Increase in Liabilities | | Net Assets | 88,917 | 87,076 | Increase | Unaudited Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, total equity attributable to the Company's shareholders increased to HKD 88.917 billion, primarily due to positive changes in profit for the period and exchange reserves, despite the interim dividend payment | Metric | June 30, 2025 (HKD million) | June 30, 2024 (HKD million) | | :--- | :--- | :--- | | Share Capital | 6,610 | 6,610 | | Exchange Reserve | (3,314) | (6,017) | | Retained Earnings | 83,097 | 82,781 | | Total Equity Attributable to Company's Shareholders | 88,917 | 86,563 | Notes to the Unaudited Interim Financial Statements Review of Unaudited Interim Financial Statements These unaudited consolidated interim financial statements have been reviewed by the Audit Committee - These unaudited consolidated interim financial statements have been reviewed by the Audit Committee[35] Basis of Preparation These interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, with accounting policies consistent with the 2024 annual financial statements, which received an unqualified audit opinion from the auditors - These interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 issued by the Hong Kong Institute of Certified Public Accountants and the disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[36] - The accounting policies adopted in preparing these interim financial statements are consistent with those applied in the preparation of the 2024 annual financial statements[36] - The Company's auditors issued an unqualified audit report on the financial statements for the year ended December 31, 2024[37] Changes in Accounting Policies Several amendments to Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants became effective for the first time in the current accounting period but did not have a significant impact on the Group's results or financial position for the current or prior periods, and the Group has not early adopted any new standards or interpretations not yet effective - Several amendments to Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants became effective for the first time in the current accounting period[38] - These developments did not have a significant impact on the Group's results or financial position for the current or prior periods[38] Business Segment Information The Group's business segment information shows that UK operations contributed the highest profit before tax in H1 2025, reaching HKD 1.724 billion, followed by Australia and HK Electric Investments, with total reportable business segment profit at HKD 2.821 billion | Business Segment | H1 2025 Profit Before Tax (HKD million) | H1 2024 Profit Before Tax (HKD million) | | :--- | :--- | :--- | | Investment in HK Electric Investments | 334 | 316 | | UK | 1,724 | 1,550 | | Australia | 658 | 694 | | Other | 546 | 618 | | Subtotal | 2,928 | 2,862 | | All Other Activities | (113) | (44) | | Total | 3,149 | 3,134 | | Business Segment | H1 2025 Reportable Business Segment Profit (HKD million) | H1 2024 Reportable Business Segment Profit (HKD million) | | :--- | :--- | :--- | | Investment in HK Electric Investments | 334 | 316 | | UK | 1,724 | 1,550 | | Australia | 652 | 681 | | Other | 445 | 503 | | Subtotal | 2,821 | 2,734 | | All Other Activities | (113) | (44) | | Total | 3,042 | 3,006 | Revenue The Group's revenue primarily comprises interest income from loans to joint ventures and associates; for the six months ended June 30, 2025, interest income was HKD 352 million, and share of revenue from joint ventures was HKD 10.215 billion - The Group's revenue includes interest income from loans to joint ventures and associates[41] | Metric | H1 2025 (HKD million) | H1 2024 (HKD million) | | :--- | :--- | :--- | | Interest Income | 352 | 454 | | Share of Revenue from Joint Ventures | 10,215 | 9,258 | Profit Before Tax For the six months ended June 30, 2025, profit before tax included finance costs of HKD 112 million, depreciation of HKD 2 million, and interest income from financial assets measured at amortized cost of HKD 7.6 million | Metric | H1 2025 (HKD million) | H1 2024 (HKD million) | | :--- | :--- | :--- | | Finance Costs - Loan Interest and Other Finance Costs | 112 | 80 | | Depreciation | 2 | 2 | | Interest Income from Financial Assets Measured at Amortized Cost | (76) | (104) | Income Tax For the six months ended June 30, 2025, total income tax was HKD 107 million, comprising current tax of HKD 9.9 million and deferred tax of HKD 8 million, with tax provisions calculated based on estimated taxable profit and applicable tax rates | Metric | H1 2025 (HKD million) | H1 2024 (HKD million) | | :--- | :--- | :--- | | Current Tax | 99 | 91 | | Deferred Tax | 8 | 37 | | Total Income Tax | 107 | 128 | - Tax provision is calculated based on estimated taxable profit after deducting available tax losses at applicable tax rates[44] Earnings Per Share For the six months ended June 30, 2025, basic and diluted earnings per share were HKD 1.43, calculated based on profit attributable to the Company's shareholders of HKD 3.042 billion and 2,131,105,154 ordinary shares outstanding, with no potentially dilutive ordinary shares during the period | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Basic and Diluted Earnings Per Share | HKD 1.43 | HKD 1.41 | | Profit Attributable to Company's Shareholders | 3,042 million | 3,006 million | | Ordinary Shares Outstanding | 2,131,105,154 shares | 2,131,105,154 shares | - There were no potentially dilutive ordinary shares for the six months ended June 30, 2025 and 2024[46] Interests in Joint Ventures As of June 30, 2025, the Group's share of net assets of unlisted joint ventures increased to HKD 57.945 billion, and loans receivable from unlisted joint ventures increased to HKD 7.944 billion, bringing total interests in joint ventures to HKD 66.260 billion | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Share of Net Assets of Unlisted Joint Ventures | 57,945 | 53,247 | | Loans Receivable from Unlisted Joint Ventures | 7,944 | 7,435 | | Total Interests in Joint Ventures | 66,260 | 60,963 | Interests in Associates As of June 30, 2025, the Group's total share of net assets of associates was HKD 25.779 billion, comprising HKD 16.417 billion from listed associates and HKD 9.362 billion from unlisted associates, with total interests in associates amounting to HKD 26.625 billion | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Share of Net Assets of Listed Associates | 16,417 | 16,676 | | Share of Net Assets of Unlisted Associates | 9,362 | 8,807 | | Total Interests in Associates | 26,625 | 26,450 | Other Receivables As of June 30, 2025, the Group's total other receivables were HKD 672 million, primarily consisting of financial derivative instruments of HKD 571 million and interest and other receivables of HKD 9.8 million, with receivables generally due within one month of invoice issuance | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Interest and Other Receivables | 98 | 30 | | Financial Derivative Instruments | 571 | 722 | | Total Other Receivables | 672 | 755 | - Receivables are on credit terms, and payments are generally due within 1 month of invoice issuance[47] Other Payables As of June 30, 2025, the Group's total other payables were HKD 3.623 billion, mainly comprising payables measured at amortized cost of HKD 3.556 billion, with all other payables expected to be settled within one year | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Payables Measured at Amortized Cost | 3,556 | 3,967 | | Financial Derivative Instruments | 64 | - | | Total Other Payables | 3,623 | 3,970 | - All other payables are expected to be settled within 1 year[48] Interim Dividend The Board declared an interim dividend of HKD 0.78 per ordinary share, totaling HKD 1.662 billion, consistent with the prior year | Metric | H1 2025 (HKD million) | H1 2024 (HKD million) | | :--- | :--- | :--- | | Interim Dividend (per ordinary share) | HKD 0.78 | HKD 0.78 | | Total Interim Dividend | 1,662 | 1,662 | Other Information Interim Dividend The Board declared an interim dividend of HKD 0.78 per share for 2025, payable on September 23, 2025, to shareholders registered on the company's register by September 11, 2025 - The 2025 interim dividend is HKD 0.78 per share, payable on September 23, 2025[50] - The dividend record date is September 11, 2025[50] Repurchase, Sale or Redemption of the Company's Shares For the six months ended June 30, 2025, neither the Company nor its subsidiaries repurchased, sold, or redeemed any listed securities, and no treasury shares were held at period-end - For the six months ended June 30, 2025, neither the Company nor its subsidiaries repurchased, sold, or redeemed any listed securities[51] - As of June 30, 2025, neither the Company nor its subsidiaries held any treasury shares[51] Corporate Governance The Company is committed to maintaining high standards of corporate governance, complying with the Corporate Governance Code set out in Appendix C1 of the Listing Rules, with independent oversight provided by the Audit, Nomination, Remuneration, and Sustainability Committees, and established procedures for handling misconduct and policies for inside information and securities dealing - The Company complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025[52] - The Audit Committee, Nomination Committee, and Remuneration Committee are all chaired by independent non-executive directors, providing independent oversight[52] - The Sustainability Committee oversees the development and implementation of the Group's sustainability initiatives[52] - The Company has established policies on inside information and securities dealing for compliance by all Group employees[52] Standard of Conduct for Securities Transactions by Directors The Board adopted the Standard of Conduct for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules, and all Directors confirmed compliance with the code for the six months ended June 30, 2025 - The Board adopted the Standard of Conduct for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules as its code of conduct[53] - All Directors confirmed compliance with the Standard of Conduct for the six months ended June 30, 2025[53] Board Composition As of the date of this announcement, the Board comprises executive directors, non-executive directors, and independent non-executive directors, including Mr. Kam-an Yen as Chairman and Mr. Siu-chung Choi as Chief Executive Officer - The Board comprises executive directors, non-executive directors, and independent non-executive directors[54] - Mr. Kam-an Yen serves as Chairman, and Mr. Siu-chung Choi serves as Chief Executive Officer[54]