2025-10-24 04:00Financial Performance - For the fiscal year ending June 30, 2025, the company demonstrated resilience with stable performance despite external challenges, maintaining a strong cash flow for future investments[10]. - The company's attributable operating profit increased by 7% year-on-year to HKD 4,466.2 million for the fiscal year 2025[43]. - Attributable profit to shareholders rose by 4% to HKD 2,162.0 million, reflecting the company's ability to create value for shareholders in a challenging environment[44]. - Total revenue for 2025 was HKD 24,285.3 million, compared to HKD 26,421.6 million in 2024[26]. - Adjusted EBITDA for 2025 was HKD 7,315.8 million, slightly up from HKD 7,240.5 million in 2024[26]. - The company's total assets increased to HKD 172,895.6 million in 2025 from HKD 155,083.7 million in 2024[26]. - Cash and bank balances rose to HKD 20,210.7 million in 2025, compared to HKD 14,788.0 million in 2024[26]. - The net debt ratio increased to 37% in 2025 from 35% in 2024[26]. - The company's overall financial performance was impacted by non-operating items, resulting in a net profit attributable to shareholders of HKD 2,162.0 million, a slight decrease from HKD 2,084.2 million in 2024[57]. Dividends and Shareholder Returns - The company has maintained a sustainable and progressive dividend policy, having distributed dividends for 22 consecutive years[17]. - The board proposed a final ordinary dividend of HKD 0.35 per share for fiscal year 2025, consistent with the previous year, resulting in a total dividend of HKD 0.95 per share for the fiscal year[54]. Strategic Investments and Acquisitions - The company is actively seeking acquisition opportunities that align with its long-term vision, focusing on sustainable and risk-adjusted returns[11]. - The group announced the acquisition of a 43.93% stake in uSMART, a leading tech-driven financial services company, to enhance its wealth management offerings, with the deal expected to accelerate the development of the financial services segment[47]. - The company strategically optimized its business portfolio, completing the sale of its duty-free business in December 2024[45]. - The group completed the sale of its entire stake in Hyva Group, with an enterprise value of USD 425 million, resulting in a net gain of approximately HKD 1.2 billion[95]. - The group announced the acquisition of a 65% stake in external asset management company Junling, enhancing its wealth management capabilities[97]. Operational Performance - The company operates 13 toll road projects in mainland China, with a total length of approximately 880 kilometers, showcasing its extensive infrastructure involvement[15]. - For the fiscal year 2025, Hong Kong operations contributed 58% to the group's operating profit, while mainland China contributed 40%, with adjusted EBITDA increasing by 1% to HKD 7.3158 billion[48]. - The logistics segment's attributable operating profit increased by 3% to HKD 740.4 million, while the construction segment saw a 2% increase to HKD 719.3 million[60]. - The facilities management segment's attributable operating profit decreased by 61% to HKD 88.5 million, but excluding the sold duty-free store business, it showed a 16% year-on-year growth[60]. - The average remaining concession period for the company's road portfolio is approximately 12 years as of June 30, 2025[66]. Sustainability and Environmental Initiatives - The company has received SBTi certification for its short-term greenhouse gas reduction targets, marking significant progress towards its net-zero emissions goal[11]. - The group’s sustainable finance initiatives reached approximately HKD 18.6 billion as of June 30, 2025, up from about HKD 14.1 billion a year earlier[52]. - The company integrates ESG due diligence into investment analysis and decision-making processes to address sustainability and governance challenges[181]. - The company is committed to operational optimization and delivering superior products as part of its sustainability initiatives[184]. Governance and Board Composition - The company has complied with all applicable provisions of the Corporate Governance Code as of the fiscal year 2025, reflecting its commitment to good corporate governance principles[164]. - The board consists of 13 members, including 5 executive directors, 2 non-executive directors, and 6 independent non-executive directors, reflecting a balanced tenure among directors[185]. - The company has implemented a Board Diversity Policy, revised in September 2022, to enhance decision-making by considering diverse backgrounds and experiences[188]. - The board promotes a culture that supports diversity and strong business performance while avoiding excessive risk-taking[178]. - The company emphasizes the importance of ESG responsibilities, with 7 board members possessing relevant expertise to drive sustainability initiatives[195]. Market Position and Future Outlook - The company is focused on expanding its strategic investments and enhancing its governance structure through experienced board members[130][131][134][135][138][139]. - The group is focusing on operational efficiency and prudent cost control to maintain competitiveness in key logistics hubs[101]. - The group is optimistic about the long-term prospects of its facilities management segment, leveraging government incentives and expanding into emerging fields[107]. - The construction group is poised to benefit from the expected recovery of the Hong Kong construction market, with opportunities in various sectors including residential and infrastructure projects[105]. - The expansion of e-commerce is anticipated to drive long-term demand for efficient logistics services, particularly in prime locations[103].