NWS HOLDINGS(HK:00659)2022-10-19 08:57Financial Performance - The group's revenue for the fiscal year 2022 was HKD 31,138.6 million, an increase of 10.4% from HKD 28,197.3 million in 2021[9]. - Shareholders' profit increased by 43% year-on-year to HKD 1,586.8 million, driven by reduced losses in facility management and improved performance in the insurance business[19]. - The adjusted EBITDA for 2022 was HKD 6,792.5 million, compared to HKD 6,511.5 million in 2021, reflecting a growth of 4.3%[9]. - The core business operating profit showed a resilient growth of 1% in 2022, despite challenges from the pandemic and economic conditions[20]. - The attributable operating profit for the strategic portfolio decreased by 84% to HKD 162.4 million, primarily due to a loss of HKD 1.417 billion from strategic investments, compared to an operating profit of HKD 739.4 million in the 2021 fiscal year[21]. - The logistics business achieved an attributable operating profit of HKD 592.6 million in fiscal year 2022, down 11% from HKD 663.0 million in 2021[43]. - The environmental segment reported an attributable operating profit of HKD 121.0 million, a decrease of 50% from HKD 244.3 million in the previous year[43]. - The operating profit from the insurance segment increased by 11% to HKD 1.075 billion, while the construction segment saw a decline of 6% to HKD 912.2 million[25]. Debt and Capital Structure - The net debt ratio improved to 19% in 2022 from 25% in 2021, indicating a stronger capital structure[10]. - The net debt decreased to HKD 10.1 billion as of June 30, 2022, down from HKD 14.5 billion a year earlier, with a net debt-to-equity ratio of 19%[21]. - The total debt decreased from HKD 25.348 billion on June 30, 2021, to HKD 23.5909 billion on June 30, 2022[59]. - The company redeemed USD 300 million of its 4.25% preferred notes due in 2029 to further optimize its capital structure and reduce interest expenses[21]. - The company has established a robust funding base and will continue to optimize its capital structure and expand funding sources[57]. Shareholder Returns and Dividends - The group announced a share buyback plan in May 2022, the first since 2008, alongside a sustainable dividend policy[8]. - The interim and final dividends per share were HKD 0.61, up from HKD 0.59 in the previous year, with a payout ratio of 150%[9]. - The company has adopted a new dividend policy aimed at steadily increasing or at least maintaining the value of the dividend per share in HKD, contingent on financial performance and future funding needs[174]. - The company will distribute dividends twice a year, subject to its financial performance[174]. Acquisitions and Investments - The group completed acquisitions of a logistics property portfolio in mainland China and increased its stake in highway operations, expanding its logistics business significantly[19]. - The company announced the acquisition of a logistics property portfolio in Chengdu and Wuhan for RMB 2.29 billion (approximately HKD 2.663 billion) to expand its logistics operations[46]. - The acquisition of a 40% stake in Guiwu Expressway for a total consideration of RMB 1.9024 billion (approximately HKD 2.2381 billion) is expected to enhance long-term prospects for the road business[28]. - Strategic acquisitions are planned, with a focus on integrating E companies to bolster market presence and operational efficiency[67]. Insurance Business Performance - For the fiscal year 2022, the operating profit of Futu Insurance reached HKD 1.0749 billion, reflecting a robust growth of 11% despite the negative impact from the COVID-19 variant outbreak and a weak stock market[35]. - The total annualized premium decreased by 10% to HKD 1.7522 billion, while gross premium income increased by 30% to HKD 13.3168 billion, with new business gross premium income rising by 77% to HKD 5.8517 billion[35]. - The new business value grew by 8% to HKD 524.8 million, with the new business value margin improving to 30% from 25% in the previous fiscal year[35]. - Futu Insurance's investment portfolio achieved an overall investment return of 5.2%, up from 4.3% in the previous fiscal year[35]. Corporate Governance and Compliance - The company has maintained compliance with all applicable provisions of the Corporate Governance Code as per the Listing Rules Appendix 14 for the fiscal year 2022[91]. - The board of directors is responsible for formulating overall strategies and ensuring the implementation of good corporate governance policies to enhance shareholder value[97]. - The company conducts regular training to reinforce understanding of ethical and integrity standards among employees[101]. - The company has implemented anti-fraud and anti-corruption policies to maintain high ethical standards and provide reporting channels for misconduct[102]. - The board consists of more than one-third independent non-executive directors, ensuring independent opinions and judgments[115]. Sustainability and Social Responsibility - The MSCI ESG rating was upgraded to A in June 2022, reflecting the company's commitment to improving ESG performance[21]. - The company aims to enhance resource efficiency and innovation to integrate sustainability into its business model for long-term value creation[56]. - The company is committed to sustainable development principles across all business areas, aiming to minimize environmental impact and enhance community quality while providing reasonable returns to investors[157]. - The company has established an Employee Responsibility Policy and a Human Rights Policy to ensure high ethical standards and compliance with applicable laws and regulations[158]. Future Outlook and Strategic Initiatives - The company provided a positive outlook for the next quarter, projecting revenue growth of A% and an increase in user engagement metrics[67]. - The company is exploring new distribution channels to mitigate the impact of the COVID-19 variant outbreak and enhance customer engagement[35]. - The company plans to launch a new product line in Q2 2024, projected to generate $25 million in initial sales[84]. - The company has set a target of achieving a 20% market share in the new regions by the end of 2025[84].