NWS HOLDINGS(HK:00659)2024-02-27 08:30Financial Performance - The group's overall attributable operating profit increased by 19% to HKD 2.134 billion for the six months ended December 31, 2023[3]. - The profit attributable to shareholders grew by 18% to HKD 1.0088 billion during the same period[3]. - Adjusted EBITDA rose by 44% year-on-year to HKD 3.7273 billion[6]. - Basic earnings per share for the company were HKD 0.28, reflecting a 14% year-on-year growth[10]. - The company's attributable operating profit for the six months ended December 31, 2023, was HKD 2,134.0 million, a 19% increase from HKD 1,791.6 million in the previous year[15]. - The operating profit for the period was HKD 1,718.4 million, up 48.4% from HKD 1,157.9 million year-on-year[55]. - The net profit attributable to shareholders for the period was HKD 1,008.8 million, an increase of 18.2% from HKD 853.1 million in the previous year[55]. - The company reported a total comprehensive income of HKD 1,640.6 million for the period, compared to a loss of HKD 867.6 million in the same period last year[59]. Revenue and Segments - Total revenue for the six months ended December 31, 2023, was HKD 13,978.5 million, an increase from HKD 13,105.9 million for the same period in 2022, representing a growth of approximately 6.6%[114]. - Insurance segment revenue reached HKD 1,616.9 million for the six months ended December 31, 2023, compared to HKD 1,353.9 million in the same period of 2022, reflecting a growth of about 19.5%[114]. - The construction segment generated revenue of HKD 9,375.5 million for the six months ended December 31, 2023, down from HKD 9,840.8 million in the previous year, indicating a decline of approximately 4.7%[114]. - The logistics segment reported revenue of HKD 84.3 million for the six months ended December 31, 2023, up from HKD 63.4 million in the same period of 2022, marking an increase of around 33%[114]. - The facilities management segment's revenue was HKD 1,433.4 million for the six months ended December 31, 2023, compared to HKD 529.9 million in the same period of 2022, showing a significant increase of approximately 170%[114]. Dividends and Shareholder Value - The group maintained a sustainable and progressive dividend policy, declaring an interim ordinary dividend of HKD 0.30 per share[3]. - The company declared an interim ordinary dividend of HKD 0.30 per share, maintaining the same amount as the previous year, and a special dividend of HKD 1.79 per share, reflecting strong shareholder value creation[12]. - The total interim dividend for the period amounts to HKD 2.09 per share, including both the ordinary and special dividends[12]. Debt and Financial Position - The total available liquid funds amounted to HKD 30.4 billion, with cash and bank deposits at HKD 20.1 billion[3]. - The net debt ratio increased to 30% as of December 31, 2023, compared to 8% on June 30, 2023[3]. - The total debt rose from HKD 23.7969 billion on June 30, 2023, to HKD 34.4195 billion on December 31, 2023, primarily due to the reclassification of the remaining amount of the 2019 perpetual capital securities[49]. - As of December 31, 2023, the capital structure was 42% debt and 58% equity, an increase in debt ratio due to the reclassification of perpetual capital securities as debt[44]. - The average borrowing cost of the debt portfolio (excluding the 2019 perpetual capital securities) was approximately 4.8% as of December 31, 2023, compared to 3.8% in the same period last year[49]. Strategic Initiatives and Outlook - The group is actively seeking sustainable, social, and green financing solutions to lower financing costs and enhance its ESG commitments[8]. - The group is optimistic about its business outlook for 2024, supported by improving business environments in Hong Kong and mainland China, although it remains cautious due to geopolitical tensions and high interest rates[35]. - The company plans to focus on market expansion and new product development in the upcoming quarters[117]. - Future guidance indicates a cautious outlook due to market conditions and potential economic challenges[117]. - The company is exploring strategic acquisitions to enhance its market position and product offerings[117]. Insurance and Risk Management - The insurance segment anticipates continued demand for products driven by local residents and mainland travelers seeking medical coverage and asset diversification, with a focus on high-growth customer segments[37]. - Futu Insurance launched the "Craftsmanship • Inheritance" savings life insurance plan in August 2023, which includes various options such as flexible wealth allocation and currency conversion options[23]. - As of December 31, 2023, Futu Insurance's solvency ratio was 314%, significantly above the industry regulatory minimum requirement of 150%[23]. - The group has implemented interest rate swaps and foreign exchange forward contracts to hedge against interest rate and foreign exchange risks[45]. Employee and Operational Metrics - The group employed approximately 14,500 employees as of December 31, 2023, with around 3,500 in Hong Kong[147]. - Employee-related costs totaled HKD 1.404 billion for the period, compared to HKD 1.345 billion in 2022, reflecting an increase of approximately 4.4%[147]. - The number of events held at the convention center increased by 7% year-on-year to 437, with visitor numbers surging by 15% to 3.9 million[31]. Accounting and Reporting Standards - The company has maintained consistent accounting policies in preparing the interim financial statements as per the Hong Kong Financial Reporting Standards[62]. - The company adopted the new Hong Kong Financial Reporting Standard No. 17 for insurance contracts, which replaces the previous standard No. 4, establishing principles for recognition, measurement, presentation, and disclosure[65]. - The transition to the new standard was effective from July 1, 2023, with a retrospective application for contracts issued on or after July 1, 2022, while a fair value approach was used for contracts issued before this date[66].