电能实业(00006) - 2025 - 中期财报

Financial Summary The group's financial performance for the period shows a slight increase in profit attributable to shareholders and earnings per share | Metric | 2025 (HKD million) | 2024 (HKD million) | Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to shareholders | 3,042 | 3,006 | +1.2% | | Earnings per share | 1.43 | 1.41 | +1.4% | | Interim dividend per share | 0.78 | 0.78 | 0% | Company Information The company's governance structure includes a board of directors, various committees, and key financial partners - The Board of Directors comprises executive, non-executive, and independent non-executive directors, with Andrew Yuen as Chairman and Tso-chung Choi as CEO[6] - The company has Audit, Remuneration, Nomination, and Sustainability Committees to ensure effective corporate governance[6] - Key banking partners include Bank of China (Hong Kong), Hang Seng Bank, HSBC, and MUFG Bank, with KPMG as the auditor[6] Key Dates and Share Information This section outlines important financial dates and key details regarding the company's shares and market capitalization Key Dates | Key Date | Details | | :--- | :--- | | Announcement of Interim Results | August 13, 2025 | | Ex-dividend Date | September 10, 2025 | | Interim Dividend Record Date | September 11, 2025 | | Payment of Interim Dividend | September 23, 2025 (HKD 0.78 per share) | | Financial Year | December 31, 2025 | Share Information | Share Information | Details | | :--- | :--- | | Trading Lot (per board lot) | 500 shares | | Market Capitalization as at June 30, 2025 | HKD 107.514 billion | | Ordinary Share to American Depositary Receipt Ratio | 1:1 | | Stock Code on The Stock Exchange of Hong Kong Limited | 6 | | Bloomberg Ticker | 6 HK | | Refinitiv Ticker | 0006.HK | | American Depositary Receipt Number | HGKGY | | CUSIP Reference Number | 739197200 | Chairman's Report The Chairman's report provides an overview of the group's interim performance, financial strength, and strategic outlook Interim Results The group's 2025 first-half financial performance was stable, with profit attributable to shareholders increasing by 1% to HKD 3.042 billion, demonstrating resilience amidst global market volatility | Metric | 2025 (HKD million) | 2024 (HKD million) | Year-on-year Growth (%) | | :--- | :--- | :--- | :--- | | Profit attributable to shareholders | 3,042 | 3,006 | +1% | - The Group's quality energy business portfolio operates under regulatory frameworks or long-term off-take agreements, consistently delivering stable returns[9] Interim Dividend The Board declared an interim dividend of HKD 0.78 per share, consistent with the prior year, to be paid on September 23, 2025 | Metric | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Interim dividend per share | 0.78 | 0.78 | - The dividend will be paid on September 23, 2025, to shareholders registered on September 11, 2025[10] Strong Financial Foundation The group maintains a strong financial position with an "A/Stable" credit rating from S&P and a net debt to total capital net ratio of 2% (46% on a look-through basis), providing a solid base for future growth - The Group holds an "A/Stable" credit rating from S&P[11] Net Debt to Total Capital Net Ratio | Metric | Value | | :--- | :--- | | Net debt to total capital net ratio | 2% | | Look-through net debt to total capital net ratio (attributable to international investment portfolio) | 46% | International Energy Portfolio The group's international energy portfolio shows varied performance, with significant growth in the UK, a decline in Australia due to exchange rates and contract expirations, reduced contributions from Canada, and ongoing restoration and development in other regions UK Operations UK operations showed significant profit contribution growth, driven by strong performance from UK Power Networks and active participation in environmental initiatives by gas networks | Metric | 2025 (HKD million) | 2024 (HKD million) | Year-on-year Growth (%) | | :--- | :--- | :--- | :--- | | Profit Contribution | 1,724 | 1,550 | +11% | - UK Power Networks (UKPN) performed excellently, with no lost-time injuries in the first half and a customer satisfaction rate of 94.7%[12][13] - Northern Gas Networks (NGN) and Wales & West Utilities (WWU) actively participate in environmental projects, contributing to the UK's net-zero carbon emissions target[13] - UK Renewables Energy supplied 111 million kWh of clean energy during the period and actively explores renewable energy opportunities[14] Australia Operations Australian operations experienced a profit decline primarily due to a weaker Australian dollar, expiring contracts, and lower market electricity prices | Metric | 2025 (HKD million) | 2024 (HKD million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Profit Contribution | 652 | 681 | -4.3% | - The decline in performance was mainly due to the depreciation of the Australian dollar, expiration of some Energy Developments Pty Ltd (EDL) contracts, and lower market electricity prices[15] - Victoria Power Networks and United Energy have submitted regulatory proposals, planning to invest billions of Australian dollars to support energy transition and enhance energy resilience[16] - Dampier Bunbury Pipeline achieved record gas throughput and 100% reliability[17] Canada Operations Canadian operations saw stable cash flow from Husky Midstream, but Canadian Power's profit contribution decreased due to reduced generation and lower electricity prices in Alberta - Husky Midstream recorded stable cash flow and returns during the period[18] - Canadian Power's profit contribution decreased, mainly due to reduced power generation and lower electricity prices from gas-fired units in Alberta[18] Other Operations Other operations include energy development projects in mainland China, restoration efforts in the Netherlands, and stable utility operations in New Zealand and Thailand - 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[19] - Restoration of the AVR Rozenburg incineration plant in the Netherlands is in its final stages, with power generation equipment expected to commence commercial operation in the first quarter of 2026[20] - Wellington Electricity in New Zealand maintained stable operations, and Ratchaburi Power Company in Thailand received guaranteed returns[20] Investment in HK Electric Investments HK Electric Investments provided stable returns, with profit contribution increasing by 5.7% year-on-year, despite a slight decrease in electricity sales due to mild weather, and new gas and emergency fuel units are progressing well | Metric | 2025 (HKD million) | 2024 (HKD million) | Year-on-year Growth (%) | | :--- | :--- | :--- | :--- | | Profit Contribution | 334 | 316 | +5.7% | - HK Electric's electricity sales decreased by 3.2% compared to the same period in 2024, mainly due to milder weather during the period[21] - Piling and site preparation for the new gas-fired combined cycle generating unit L13 have commenced as scheduled, with commercial operation expected in 2029[21] - Construction and assembly of three new open-cycle fuel oil generating units are progressing steadily, with phased operation expected in 2027 and 2028[21] Sustainability Highlights The group's international portfolio prioritizes green energy, renewable transition, and climate change adaptation, actively promoting advanced grid protection technologies and signing agreements for biomethane integration - Multiple businesses have completed climate scenario analyses, identifying climate-related risks and opportunities to align with sustainable growth business strategies[22] - Distribution businesses actively promote the use of advanced technologies to protect power grids from climate change impacts[23] - AGN has signed an agreement to connect the first biomethane project's gas to the South Australian gas distribution network[24] Post-Review Period Events In July 2025, Eversholt UK Rails Group Limited, jointly owned by Power Assets and other CK Group companies, reached an agreement to sell its UK Rails business - Eversholt UK Rails Group Limited, jointly owned by Power Assets, CK Infrastructure, CK Asset, and CK Hutchison Holdings, has reached an agreement to sell its UK Rails business[25] Outlook Leveraging its strong financial position and international portfolio, the group will continue to seek suitable investment opportunities globally, focusing on well-regulated, mature energy markets and strengthening strategic partnerships for predictable returns - The Group will continue to seek suitable investment opportunities globally that drive growth[26] - Focus will be on expanding quality businesses in well-regulated, mature energy markets to achieve predictable and attractive returns[26] - The successful strategic partnerships with CK Infrastructure and CK Asset will continue to be strengthened[26] Financial Review This section provides a detailed review of the group's capital expenditure, liquidity, financial resources, treasury policy, and debt structure Capital Expenditure, Liquidity and Financial Resources The group's capital expenditures are primarily funded by operating cash flow and investment income; as of June 30, 2025, total unsecured bank loans increased, while bank deposits and cash decreased, and committed but unutilized credit facilities significantly reduced | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | Change (%) | | :--- | :--- | :--- | :--- | | Total unsecured bank loans | 3,768 | 2,505 | +50.4% | | Bank deposits and cash | 1,561 | 2,733 | -42.9% | | Committed but unutilized bank credit facilities | 150 | 1,000 | -85% | Treasury Policy, Financing Activities and Debt Structure The group manages financial risks according to its treasury policy, maintaining an "A/Stable" credit rating, and as of June 30, 2025, transitioned from a net cash position to a net debt of HKD 2.207 billion, with a net debt to total capital net ratio of 2% (46% on a look-through basis), slightly higher than the 44% at the end of 2024 - The Group's treasury policy aims to manage currency, interest rate, and counterparty risks, ensuring ample financial resources and maintaining a prudent capital structure[29] - S&P reaffirmed the company's long-term issuer credit rating of "A" with a "stable" outlook on February 19, 2025[29] Net Debt and Capital Ratios | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Net debt level | 2,207 (net debt) | 228 (net cash) | From net cash to net debt | | Net debt to total capital net ratio | 2% | N/A | Increased | | Look-through net debt to total capital net ratio | 46% | 44% | Slightly increased | - The Group's external loan structure is 65% Australian dollar, 35% Hong Kong dollar; 100% bank loans; 100% repayable within 1 year; and 100% floating interest rates[31] Financial Derivatives The group actively manages currency and interest rate risks using financial derivatives for hedging, not speculation, with foreign exchange risk primarily managed through local currency loans or forward foreign exchange contracts, and the notional amount of outstanding derivative contracts decreased - Financial derivatives are primarily used to manage interest rate and foreign exchange risks, not for speculative purposes[32] - To mitigate currency risk for investments outside Hong Kong, the Group uses local currency-denominated loans or enters into forward foreign exchange contracts or cross-currency swap contracts[33] Notional Amount of Outstanding Financial Derivative Contracts | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | Change (%) | | :--- | :--- | :--- | :--- | | Notional amount of outstanding financial derivative contracts | 29,784 | 32,377 | -8% | Contingent Liabilities As of June 30, 2025, the group had no guarantees or indemnity undertakings - As of June 30, 2025, the Group had no guarantees or indemnity undertakings[35] Employees The group employs a performance-based remuneration policy and has no share option scheme; total staff costs for the six months ended June 30, 2025, were HKD 14 million, with the number of employees increasing to 16 Total Staff Remuneration Expenses | Metric | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Total staff remuneration expenses | 14 | 14 | Number of Employees | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of employees | 16 | 14 | - The Group has no share option scheme[35] Unaudited Consolidated Income Statement The unaudited consolidated income statement shows a slight increase in profit attributable to shareholders despite a decrease in revenue, driven by improved results from joint ventures and associates | Metric | 2025 (HKD million) | 2024 (HKD million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 352 | 454 | -22.5% | | Other net income | 143 | 122 | +17.2% | | Other operating costs | (151) | (87) | +73.6% | | Finance costs | (112) | (80) | +40% | | Share of results of joint ventures | 2,136 | 2,014 | +6.1% | | Share of results of associates | 781 | 711 | +9.8% | | Profit before tax | 3,149 | 3,134 | +0.5% | | Income tax | (107) | (128) | -16.4% | | Profit for the period attributable to shareholders of the Company | 3,042 | 3,006 | +1.2% | | Earnings per share (basic and diluted) | 1.43 | 1.41 | +1.4% | Unaudited Consolidated Statement of Comprehensive Income The unaudited consolidated statement of comprehensive income shows a significant increase in total comprehensive income attributable to shareholders, primarily due to positive exchange differences from overseas operations | Metric | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Profit for the period attributable to shareholders of the Company | 3,042 | 3,006 | | Other comprehensive income for the period | | | | Items that will not be reclassified subsequently to profit or loss | | | | Share of other comprehensive income of joint ventures and associates | 107 | (861) | | Related tax | (29) | 214 | | Subtotal | 78 | (647) | | Items that may be reclassified subsequently to profit or loss | | | | Exchange differences on translation of operations outside Hong Kong | 4,979 | (926) | | Net investment hedge | (1,550) | 443 | | Cost of hedging | (15) | 8 | | Cash flow hedges: net change in hedging reserve | (6) | (13) | | Share of other comprehensive income of joint ventures and associates | (462) | 384 | | Related tax | 123 | (96) | | Subtotal | 3,069 | (200) | | Total comprehensive income for the period attributable to shareholders of the Company | 6,189 | 2,159 | - In the first half of 2025, total comprehensive income attributable to shareholders of the Company significantly increased to HKD 6.189 billion, primarily benefiting from the positive reversal of exchange differences on operations outside Hong Kong[38] Unaudited Consolidated Statement of Financial Position The unaudited consolidated statement of financial position shows a slight decrease in total assets less current liabilities, with a significant increase in net current liabilities due to the reclassification of bank loans | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | | | | | Interests in joint ventures | 66,260 | 60,963 | +8.7% | | Interests in associates | 26,625 | 26,450 | +0.7% | | Financial derivatives | 850 | 2,050 | -58.5% | | Current assets | | | | | Bank balances and cash | 1,561 | 2,733 | -42.9% | | Current liabilities | | | | | Current portion of bank loans and other interest-bearing borrowings | (3,768) | – | N/A | | Other payables | (3,623) | (3,970) | -8.7% | | Net current liabilities | (5,245) | (589) | +790.5% | | Total assets less current liabilities | 89,615 | 90,000 | -0.4% | | Non-current liabilities | | | | | Bank loans and other interest-bearing borrowings | – | (2,505) | -100% | | Financial derivatives | (286) | (31) | +822.6% | | Net assets | 88,917 | 87,076 | +2.1% | | Total equity attributable to shareholders of the Company | 88,917 | 87,076 | +2.1% | - Net current liabilities significantly increased, primarily due to the reclassification of bank loans and other interest-bearing borrowings from non-current to current portions[39] Unaudited Consolidated Statement of Changes in Equity The unaudited consolidated statement of changes in equity shows an increase in total equity attributable to shareholders, driven by profit for the period and other comprehensive income | Item | June 30, 2025 (HKD million) | June 30, 2024 (HKD million) | | :--- | :--- | :--- | | Balance at January 1 | 87,076 | 88,752 | | Profit for the period | 3,042 | 3,006 | | Other comprehensive income | 3,147 | (847) | | Total comprehensive income | 6,189 | 2,159 | | Final dividend approved and paid for previous year | (4,348) | (4,348) | | Interim dividend | – | – | | Balance at June 30 | 88,917 | 86,563 | - As of June 30, 2025, total equity attributable to shareholders of the Company increased to HKD 88.917 billion, primarily due to significant growth in profit for the period and other comprehensive income[40] Unaudited Consolidated Cash Flow Statement The unaudited consolidated cash flow statement indicates a net decrease in cash and cash equivalents, resulting from reduced cash flows from operating and investing activities, despite a decrease in cash used in financing activities | Item | 2025 (HKD million) | 2024 (HKD million) | Change (%) | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 115 | 179 | -35.8% | | Net cash from investing activities | 1,935 | 3,316 | -41.7% | | Net cash used in financing activities | (3,217) | (4,504) | -28.6% | | Net decrease in cash and cash equivalents | (1,167) | (1,009) | +15.7% | | Cash and cash equivalents at January 1 | 2,733 | 2,456 | +11.3% | | Cash and cash equivalents at June 30 | 1,559 | 1,447 | +7.7% | - Net cash from operating and investing activities both decreased, while net cash used in financing activities decreased, leading to an increased net decrease in cash and cash equivalents[41] Notes to the Unaudited Interim Financial Statements This section provides detailed notes explaining the basis of preparation, accounting policies, and specific financial items within the unaudited interim financial statements 1. Review of Unaudited Interim Financial Statements The unaudited consolidated interim financial statements have been reviewed by the Audit Committee - These interim financial statements have been reviewed by the Audit Committee[42] 2. Basis of Preparation These interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, consistent with the accounting policies used in the 2024 annual financial statements, except for necessary changes - These interim financial statements are prepared in accordance with HKAS 34 and the applicable disclosure requirements of the Listing Rules[43] - The accounting policies adopted are consistent with those used in the 2024 annual financial statements, except for changes in accounting policies that are required to be reflected in the 2025 annual financial statements[43] - The company's auditor issued an unqualified audit report on the 2024 annual financial statements[45] 3. Changes in Accounting Policies Several HKFRS amendments issued by the HKICPA became effective in this accounting period but had no significant impact on the group's results or financial position for the current or prior periods - Several amendments to Hong Kong Financial Reporting Standards (HKFRS) issued by the HKICPA became effective for the first time in the current accounting period[46] - These changes did not have a significant impact on the Group's results or financial position for the current or prior periods[46] 4. Segment Information The group's segment revenue primarily comes from the UK and Australia, with total revenue decreasing in the first half of 2025 compared to 2024, showing significant profit growth in the UK but a decline in Australia Segment Revenue and Profit | Segment | 2025 Revenue (HKD million) | 2024 Revenue (HKD million) | 2025 Profit (HKD million) | 2024 Profit (HKD million) | | :--- | :--- | :--- | :--- | :--- | | Investment in HK Electric Investments | – | – | 334 | 316 | | UK | 171 | 205 | 1,724 | 1,550 | | Australia | 143 | 208 | 652 | 681 | | Others | 38 | 41 | 445 | 503 | | Total | 352 | 454 | 3,042 | 3,006 | - The UK segment's profit contribution increased by 11.2% year-on-year, while the Australian segment's profit contribution decreased by 4.3% year-on-year[47] 5. Revenue The group's revenue mainly consists of interest income from loans to joint ventures and associates, totaling HKD 352 million for the six months ended June 30, 2025, with a share of joint venture revenue at HKD 10.215 billion Revenue Breakdown | Item | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Interest income | 352 | 454 | | Share of revenue of joint ventures | 10,215 | 9,258 | - The Group's revenue includes interest income from loans to joint ventures and associates[48] 6. Profit Before Tax For the six months ended June 30, 2025, the group's profit before tax was HKD 3.149 billion, a slight increase from the prior year, with stable finance costs and depreciation but a decrease in interest income Profit Before Tax Components | Item | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Profit before tax | 3,149 | 3,134 | | Finance costs – interest on loans and other finance costs | 112 | 80 | | Depreciation | 2 | 2 | | Interest income from financial assets measured at amortised cost | (76) | (104) | 7. Income Tax For the six months ended June 30, 2025, the group's total income tax was HKD 107 million, a decrease from the prior year, mainly due to reduced deferred tax Income Tax Breakdown | Item | 2025 (HKD million) | 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 at applicable tax rates after deducting available tax losses[51] 8. Earnings Per Share For the six months ended June 30, 2025, basic and diluted earnings per share were HKD 1.43, a slight increase from HKD 1.41 in the prior year, with the number of ordinary shares outstanding remaining unchanged Earnings Per Share Details | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Earnings per share | 1.43 | 1.41 | | Number of 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[53] 9. Property, Plant and Equipment and Leasehold Land As of June 30, 2025, the net book value of the group's property, plant and equipment, and leasehold land was HKD 18 million, a slight decrease from January 1, 2025, primarily due to depreciation and amortization Property, Plant and Equipment and Leasehold Land Net Book Value | Item | June 30, 2025 (HKD million) | January 1, 2025 (HKD million) | | :--- | :--- | :--- | | Net book value | 18 | 19 | | Additions | 1 | N/A | | Depreciation and amortisation | (2) | N/A | 10. Interests in Joint Ventures As of June 30, 2025, the group's total interests in joint ventures increased to HKD 66.260 billion, mainly due to the growth in net assets of unlisted joint ventures Interests in Joint Ventures | Item | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Share of net assets of unlisted joint ventures | 57,945 | 53,247 | | Loans to unlisted joint ventures | 7,944 | 7,435 | | Amounts due from unlisted joint ventures | 371 | 281 | | Total | 66,260 | 60,963 | - The total assets of unlisted joint ventures amounted to HKD 157.959 billion[55] 11. Interests in Associates As of June 30, 2025, the group's total interests in associates slightly increased to HKD 26.625 billion, primarily due to an increase in the net assets of unlisted associates Interests in Associates | Item | 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 | | Loans to unlisted associates | 835 | 956 | | Amounts due from associates | 11 | 11 | | Total | 26,625 | 26,450 | 12. Other Receivables As of June 30, 2025, the group's total other receivables decreased to HKD 672 million, mainly due to a reduction in financial derivative receivables Other Receivables | Item | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Accrued interest and other receivables | 98 | 30 | | Financial derivatives | 571 | 722 | | Deposits and prepayments | 3 | 3 | | Total | 672 | 755 | - Receivables are on credit terms, with payments generally due within one month of invoice date[55] 13. Bank Balances and Cash and Other Cash Flow Information As of June 30, 2025, the group's total bank balances and cash significantly decreased to HKD 1.561 billion, with reduced cash used in operations and increased total funds from operations Bank Balances and Cash | Item | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Deposits with banks and other financial institutions repayable on demand or within three months from date of deposit | 1,241 | 2,712 | | Bank balances and cash | 318 | 21 | | Cash and cash equivalents in the consolidated cash flow statement | 1,559 | 2,733 | | Deposits with banks and other financial institutions repayable after three months from date of deposit | 2 | – | | Bank balances and cash in the consolidated statement of financial position | 1,561 | 2,733 | Cash Flow Information | Item | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Cash used in operations | (21) | (69) | | Net cash from operating activities | 115 | 179 | | Total funds from operations | 2,478 | 2,284 | 14. Other Payables As of June 30, 2025, the group's total other payables decreased to HKD 3.623 billion, with all amounts expected to be settled within one year Other Payables | Item | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Payables measured at amortised cost | 3,556 | 3,967 | | Lease liabilities | 3 | 3 | | Financial derivatives | 64 | – | | Total | 3,623 | 3,970 | - All other payables are expected to be settled within one year[59] 15. Bank Loans and Other Interest-Bearing Borrowings As of June 30, 2025, the group's total bank loans and other interest-bearing borrowings amounted to HKD 3.768 billion, all reclassified as current, compared to being entirely non-current on December 31, 2024 Bank Loans and Other Interest-Bearing Borrowings | Item | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Bank loans and other interest-bearing borrowings | 3,768 | 2,505 | | Current portion | (3,768) | – | | Non-current portion | – | 2,505 | - All bank loans and other interest-bearing borrowings were reclassified as current liabilities as of June 30, 2025[60] 16. Financial Derivatives As of June 30, 2025, the group's financial derivative assets for hedging totaled HKD 1.421 billion, and liabilities totaled HKD 350 million, primarily comprising cross-currency swap contracts and forward foreign exchange contracts Financial Derivatives Assets and Liabilities | Item | June 30, 2025 Assets (HKD million) | June 30, 2025 Liabilities (HKD million) | December 31, 2024 Assets (HKD million) | December 31, 2024 Liabilities (HKD million) | | :--- | :--- | :--- | :--- | :--- | | Interest rate swap contracts | – | – | 5 | – | | Cross-currency swap contracts | 735 | – | 1,148 | – | | Forward foreign exchange contracts | 686 | (350) | 1,619 | (31) | | Total | 1,421 | (350) | 2,772 | (31) | - The current portion of financial derivative assets was HKD 571 million, and liabilities were HKD 64 million; the non-current portion of assets was HKD 850 million, and liabilities were HKD 286 million[61] 17. Share Capital As of June 30, 2025, the group's issued and fully paid share capital was HKD 6.610 billion, consisting of 2,131,105,154 voting ordinary shares, with no changes during the period Issued and Fully Paid Share Capital | Item | June 30, 2025 (Number of shares) | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | :--- | | Issued and fully paid share capital: voting ordinary shares | 2,131,105,154 | 6,610 | 6,610 | - There were no changes in the company's share capital during the period[62] 18. Fair Value Measurement The group's fair value measurements are categorized into Level 2 (forward foreign exchange contracts, interest rate swap contracts, and cross-currency swap contracts) and Level 3 (unlisted equity securities and other investments), with changes in cost of capital and growth rates impacting profit and retained earnings for unlisted equity securities Fair Value Measurement of Financial Instruments | Item | June 30, 2025 Level 2 (HKD million) | June 30, 2025 Level 3 (HKD million) | June 30, 2025 Total (HKD million) | | :--- | :--- | :--- | :--- | | Financial assets | | | | | Other non-current financial assets | – | 1,100 | 1,100 | | Financial derivatives: cross-currency swap contracts | 735 | – | 735 | | Financial derivatives: forward foreign exchange contracts | 686 | – | 686 | | Total assets | 1,421 | 1,100 | 2,521 | | Financial liabilities | | | | | Financial derivatives: forward foreign exchange contracts | (350) | – | (350) | - The fair value of unlisted equity securities is determined using the dividend discount model, with key unobservable inputs including a cost of capital of 13.65% and a growth rate of 2.5%[65] - A 0.5% increase/decrease in the cost of capital would result in a decrease/increase of approximately HKD 13 million / approximately HKD 14 million in the Group's profit and retained earnings for the period[65] - The carrying amounts of financial assets and liabilities not measured at fair value (such as amounts due from joint ventures and associates, other receivables, other payables, and external borrowings) do not differ significantly from their fair values[66] 19. 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 Interim Dividend Declaration | Item | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Interim dividend of HKD 0.78 per ordinary share | 1,662 | 1,662 | 20. Capital Commitments As of June 30, 2025, the group had zero contracted capital expenditure for property, plant and equipment, and HKD 1 million in authorized but not contracted capital expenditure Capital Commitments | Item | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Contracted: capital expenditure for property, plant and equipment | – | 1 | | Authorised but not contracted: capital expenditure for property, plant and equipment | 1 | 1 | 21. Significant Related Party Transactions The group has significant related party transactions with joint ventures and associates, primarily involving interest income from loans and service fees, totaling HKD 303 million from joint ventures and HKD 49 million from associates in interest income, plus HKD 25 million in service fees for the six months ended June 30, 2025 Related Party Transactions | Item | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Interest income from loans to joint ventures | 303 | 384 | | Interest income from loans to associates | 49 | 70 | | Service fees for support services provided by associates | 25 | 22 | - Total outstanding loans to joint ventures are detailed in Note 10, and total outstanding loans to associates are detailed in Note 11[70][71] Corporate Governance This section details the company's commitment to high corporate governance standards, including board structure, committee functions, risk management, and shareholder communication Corporate Governance Practices The company is committed to maintaining high corporate governance standards, complying with the Corporate Governance Code in Appendix C1 of the Listing Rules, and has established policies for inside information and securities dealing to ensure openness, integrity, and accountability - The company complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025[72] - The Audit Committee reviewed procedures for handling potential misconduct reports related to financial reporting, internal controls, or other matters[72] - The company has established policies on inside information and securities dealing for all Group employees to comply with[72] Board of Directors The Board of Directors, comprising 12 members including 4 executive, 3 non-executive, and 5 independent non-executive directors, is responsible for the group's overall management and operations, with separate roles for Chairman and CEO to ensure effective functioning and accountability - The Board of Directors comprises 12 directors, including 4 executive, 3 non-executive, and 5 independent non-executive directors, meeting the Listing Rules' requirement for independent non-executive directors[73] - The Chairman leads and oversees the effective functioning of the Board, while the Chief Executive Officer manages the Group's business and overall operations[74] - The Company Secretary supports the Board, ensuring good information flow, compliance with policies and procedures, and adherence to relevant laws and regulations by the Group[75] Directors' Securities Transactions The Board adopted the Model Code in Appendix C3 of the Listing Rules for directors' securities transactions, and all directors confirmed compliance during the review period - The Board adopted the Model Code set out in Appendix C3 of the Listing Rules as the standard for directors' securities transactions[76] - All directors, following specific enquiry, confirmed compliance with the Model Code for the six months ended June 30, 2025[76] Changes in Directors' Information Since the publication of the 2024 Annual Report, Mr. Yip Yuk-kwong has retired as a member of the Science and Technology Council of the Macao SAR, with no other disclosable changes in directors' information - Mr. Yip Yuk-kwong retired as a member of the Science and Technology Council of the Macao SAR[77] Audit Committee The Audit Committee, composed of three independent non-executive directors with Mr. Yip Yuk-kwong as Chairman, oversees financial reporting, external auditor relations, corporate governance, and risk management, having reviewed the interim financial statements and revised its terms of reference in May 2025 - The Audit Committee comprises 3 independent non-executive directors, with Mr. Yip Yuk-kwong as Chairman[78] - Its primary responsibilities include reviewing and overseeing the Group's financial reporting, reviewing financial information, considering external auditor matters, reviewing corporate governance functions, and risk management and internal controls[78] - The Audit Committee reviewed the Group's unaudited consolidated financial statements for the six months ended June 30, 2025[79] - The Audit Committee's terms of reference were amended on May 21, 2025, to comply with the revisions and new requirements of the Corporate Governance Code effective July 1, 2025[80] Nomination Committee The Nomination Committee, consisting of four members, mostly independent non-executive directors with Mr. Yip Yuk-kwong as Chairman, reviews board structure, assists in director selection and nomination, assesses independent non-executive directors' independence, and advises on appointments and succession planning, with its terms of reference revised on May 21, 2025 - The Nomination Committee comprises 4 members, mostly independent non-executive directors, with Mr. Yip Yuk-kwong as Chairman[81] - Its primary responsibilities include reviewing the Board's structure, size, and composition, assisting in the selection and nomination of directors, assessing the independence of independent non-executive directors, and making recommendations on director appointments, re-appointments, and succession planning[82] - The Nomination Committee's terms of reference were amended on May 21, 2025, to comply with the revisions and new requirements of the Corporate Governance Code effective July 1, 2025[82] Remuneration Committee The Remuneration Committee, composed of three members, mostly independent non-executive directors with Ms. Ko Po-wah as Chairman, reports directly to the Board and is responsible for reviewing and determining the remuneration policies and packages for directors and management - The Remuneration Committee comprises 3 members, mostly independent non-executive directors, with Ms. Ko Po-wah as Chairman[83] - Its primary responsibilities include reviewing and considering the remuneration policies for the company's directors and management team, and determining their individual remuneration packages[84] Sustainability Committee The Sustainability Committee, composed of three members with Mr. Tso-chung Choi as Chairman, oversees the development and implementation of the group's sustainability initiatives, reviews related policies and practices, and assesses sustainability and risk matters - The Sustainability Committee comprises 3 members, with Mr. Tso-chung Choi as Chairman[85] - Its primary responsibilities include overseeing the management of the development and implementation of the Group's sustainability initiatives and advising the Board, reviewing related policies and practices, and assessing matters related to the Group's sustainability and risks[85] Risk Management and Internal Control The Board is responsible for assessing and determining risk appetite and monitoring risk management and internal control systems, with the Audit Committee assisting in reviewing system effectiveness and internal audit providing independent assurance, concluding the systems were effective and adequate for the six months ended June 30, 2025 - The Board is solely responsible for assessing and determining the nature and extent of risks it is willing to undertake to achieve strategic corporate objectives, and for monitoring risk management and internal control systems[86] - The Group shares internal audit functions with its associate, HK Electric Investments Limited, with internal audit using a risk assessment approach to formulate its annual audit plan[87] - The Board, through the Audit Committee, reviewed the effectiveness of the Group's risk management and internal control systems for the six months ended June 30, 2025, and considered them effective and adequate[87] Communication with Shareholders The company has a shareholder communication policy to facilitate effective engagement with shareholders and investors through various channels, including general meetings, financial reports, press releases, and investor conferences, with information and communication preferences accessible via the company website or share registrar - The company has established a shareholder communication policy to create multiple channels for effective communication with shareholders and investors[88] - Communication channels include annual general meetings, financial results, annual and interim reports, sustainability reports, press releases, and meetings with investors and analysts[88] - Shareholders can obtain information or change the language version of printed company communications via the company website or share registrar[89] Directors' Interests and Short Positions in Shares, Underlying Shares and Debentures As of June 30, 2025, certain directors held long positions in the company's shares and HK Electric Investments share stapled units, with Mr. Leung Kwong-shing holding 0.01% of the company's shares and Mr. Li Tzar-kuoi, Victor holding 0.08% of HK Electric Investments share stapled units through controlled corporations and as a trust beneficiary Directors' Long Positions in Company Shares | Name of Director | Capacity | Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Leung Kwong-shing | Beneficial Owner | Personal Interest | 180,000 | 0.01% | | Tso-chung Choi | Beneficial Owner | Personal Interest | 24,022 | ≃0% | | Cheng Cho-ying | Beneficial Owner | Personal Interest | 17,000 | ≃0% | Directors' Long Positions in HK Electric Investments Share Stapled Units | Name of Director | Capacity | Nature of Interest | Number of Share Stapled Units Held | Approximate Percentage of Issued Share Stapled Units | | :--- | :--- | :--- | :--- | :--- | | Li Tzar-kuoi, Victor | Interest in Controlled Corporation | Corporate Interest | 5,170,000 | 0.08% | | Li Tzar-kuoi, Victor | Beneficiary of a Trust | Other Interest | 2,700,000 | 0.08% | | Tso-chung Choi | Beneficial Owner | Personal Interest | 880 | ≃0% | - Mr. Li Tzar-kuoi, Victor is deemed to be interested in the share stapled units of HK Electric Investments due to his interests in the Li Ka Shing Foundation and related trusts[92][93] Shareholders' Interests and Short Positions As of June 30, 2025, major shareholders held long positions in the company's shares, with CK Hutchison Holdings Limited and its associated companies deemed to hold approximately 36.01% of the company's shares through a multi-layered shareholding structure Major Shareholders' Long Positions in Company Shares | Name | Capacity | Number of Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Venniton Development Inc. | Beneficial Owner | 153,797,511 | 7.22% | | Interman Development Inc. | Beneficial Owner | 186,736,842 | 8.76% | | Univest Equity S.A. | Beneficial Owner | 279,011,102 | 13.09% | | Monitor Equities S.A. | Beneficial Owner and Interest in Controlled Corporation | 287,211,674 | 13.48% | | Hyford Limited | Interest in Controlled Corporation | 767,499,612 | 36.01% | | CK Infrastructure Holdings Limited | Interest in Controlled Corporation | 767,499,612 | 36.01% | | Hutchison Infrastructure Holdings Limited | Interest in Controlled Corporation | 767,499,612 | 36.01% | | CK Hutchison Global Investments Limited | Interest in Controlled Corporation | 767,499,612 | 36.01% | | CK Hutchison Holdings Limited | Interest in Controlled Corporation | 767,499,612 | 36.01% | - CK Hutchison Holdings Limited is deemed to be interested in approximately 36.01% of the company's shares through its subsidiaries and shareholding in CK Infrastructure Holdings Limited[97] Other Information This section covers the interim dividend declaration, share repurchase activities, and disclosures required by Listing Rule 13.22 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 September 11, 2025 - The interim dividend for 2025 is HKD 0.78 per share[98] - The dividend will be paid on September 23, 2025, to shareholders registered in the company's register of members on September 11, 2025[98] Purchase, 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 - For the six months ended June 30, 2025, neither the company nor its subsidiaries repurchased, sold, or redeemed any listed securities[99] - As of June 30, 2025, neither the company nor its subsidiaries held any treasury shares[99] Information Required to be Disclosed Pursuant to Rule 13.22 of the Listing Rules Pursuant to Listing Rule 13.22, the group's aggregate attributable interests in certain affiliated companies totaled HKD 57.263 billion, with these affiliated companies having a net asset value of HKD 146.544 billion Consolidated Statement of Financial Position of these Affiliated Companies (as at June 30, 2025) | Item | HKD million | | :--- | :--- | | Non-current assets | 346,648 | | Current assets | 104,791 | | Current liabilities | (46,560) | | Non-current liabilities | (258,335) | | Net asset value | 146,544 | | Share capital | 24,831 | | Reserves | 121,713 | | Capital and reserves | 146,544 | - As of June 30, 2025, the Group's aggregate attributable interests in these affiliated companies totaled HKD 57.263 billion[100]