NWS HOLDINGS(HK:00659)2023-03-16 08:30Financial Performance - For the six months ended December 31, 2022, the group's revenue was HKD 17,569.9 million, an increase of 7.8% compared to HKD 16,304.2 million in the same period of 2021[10]. - Shareholders' profit attributable to the group was HKD 1,162.4 million, a decrease of 27% from HKD 1,583.5 million in the previous year[10]. - The adjusted EBITDA for the period was HKD 2,984.0 million, down 7.9% from HKD 3,239.4 million in the prior year[10]. - Basic earnings per share decreased by 27% to HKD 0.30, with Hong Kong operations contributing 53% to attributable operating profit, up from 43% in the previous year[17]. - The total comprehensive loss for the period was HKD 2,229.6 million, compared to a comprehensive income of HKD 7,849.5 million in 2021, indicating a significant decline[55]. - The company reported a net loss from other comprehensive income of HKD 3,698.3 million for the period, contrasting with a gain of HKD 5,968.0 million in the previous year[55]. - The company reported a net profit attributable to shareholders of HKD 1,162.4 million for the period[102]. - Operating profit for the same period was HKD 1,462.8 million, slightly up from HKD 1,416.5 million in 2021, reflecting a growth of 3.3%[54]. Debt and Financial Position - The net debt ratio improved to 11%, down from 19% in the previous period, indicating a stronger balance sheet[10]. - The company reduced its net debt to approximately HKD 5.7 billion from HKD 10.1 billion, resulting in a net debt ratio decrease to 11% from 19%[17]. - The total liabilities as of December 31, 2022, were HKD 98,465.3 million, with non-current liabilities at HKD 36,507.5 million and current liabilities at HKD 61,957.8 million[120]. - The total liabilities to equity ratio increased to approximately 1.98 as of December 31, 2022, compared to 1.77 as of June 30, 2022[58]. - The company’s borrowings and other interest-bearing liabilities stood at HKD 17,628.3 million as of December 31, 2022, down from HKD 18,323.2 million as of June 30, 2022[58]. Investments and Acquisitions - The group acquired a 40% stake in the Guiwang Expressway and signed an agreement to acquire the remaining 60% stake in the Suiyue Expressway, enhancing its growth potential[14]. - The company expanded its road portfolio by acquiring the remaining 60% interest in the Suiyue Expressway and completed the acquisition of 40% interest in the Guiwu Expressway, with an average remaining concession period of approximately 11 years[24]. - The aviation segment completed the sale of its business jet leasing operations for approximately USD 1.6 billion, improving the company's risk profile post-transaction[26]. - The company is in the process of acquiring a 60% stake in Hunan Daoyue Highway Industrial Co., with a total consideration of RMB 555.7 million (approximately HKD 624.4 million)[186]. Operational Performance - Core business operating profit decreased by 25% to HKD 1,640.7 million, primarily due to a decline in road business operating profit[13]. - The road business's attributable operating profit fell by 29% to HKD 684.5 million, with overall traffic volume and toll revenue decreasing by 10% and 6%, respectively[22][23]. - The construction business's attributable operating profit decreased by 7% year-on-year to HKD 416.3 million, with NWS Construction Limited contributing HKD 403 million[27]. - The attributable operating profit for the logistics segment increased by 50% year-on-year to HKD 417.7 million, driven by strong performance from the Asia Container Logistics Centre[35]. - The throughput for China Railway United International Container Co. increased by 18% year-on-year to approximately 2.725 million TEUs, leading to a 43% surge in attributable operating profit[36]. Cash Flow and Dividends - The company maintained a dividend of HKD 0.30 per share, with a payout ratio of 101%[10]. - The company paid dividends amounting to HKD 1,212.2 million to shareholders, slightly up from HKD 1,173.3 million in 2021[66]. - The net cash generated from operating activities for the six months ended December 31, 2022, was HKD 5,554.2 million, a decrease of 8.5% from HKD 6,070.1 million in 2021[64]. - The net cash generated from investment activities increased to HKD 5,391.6 million in 2022, up 7.9% from HKD 4,993.4 million in 2021[66]. - The total cash and cash equivalents at the end of the period increased to HKD 17,712.2 million, up 51.4% from HKD 11,699.2 million in 2021[66]. Insurance and Risk Management - The annualized premium total for FTL Insurance decreased by 31% to HKD 726.9 million, with gross premium income down 12% to HKD 6.3474 billion[29]. - The new business value for FTL Insurance dropped by 39% to HKD 220.5 million, with the new business value margin declining to 30% from 34% year-on-year[29]. - The solvency ratio for FTL Insurance was 364%, significantly above the regulatory minimum requirement of 150%[31]. - The group faces various financial risks, including market risk (interest rate, foreign exchange, and price risks), credit risk, and liquidity risk, alongside insurance-related risks[86]. - The company is actively integrating climate-related risks into its enterprise risk management framework to enhance sustainable growth[48]. Future Outlook - The group expects a rapid recovery in road business following recent policy changes in mainland China[14]. - The company maintains a positive long-term outlook for the mainland economy, expecting rapid recovery following the implementation of stimulus measures[43]. - The construction business is expected to benefit from increased tender supply from the Hong Kong government, bolstering the long-term outlook for the company as a quality construction firm[44]. - The logistics business is projected to experience sustainable long-term growth, with a recent acquisition of a 90% stake in a high-quality logistics property in Suzhou valued at RMB 570 million[47]. - The company plans to focus on market expansion and new product development in the upcoming fiscal year[63].