CKI HOLDINGS(HK:01038)2023-03-15 08:31Financial Performance - CK Infrastructure Holdings Limited reported a profit attributable to shareholders of HKD 7.748 billion for the year ended December 31, 2022, representing a 3% increase compared to the previous year[2]. - The company reported a total revenue of HKD 39,236 million for the year ended December 31, 2022, a decrease of 3.7% from HKD 40,730 million in 2021[29]. - The company achieved a net profit of HKD 8,173 million, representing an increase of 2.8% compared to HKD 7,954 million in the previous year[29]. - Earnings per share increased to HKD 3.08, up from HKD 2.98, indicating a growth of 3.4%[29]. - The profit attributable to shareholders for 2022 was HKD 8,709 million, compared to HKD 8,142 million in 2021, representing an increase of 6.9%[37]. - Earnings per share for 2022 were HKD 3.44, up from HKD 3.22 in 2021[39]. - The total dividend for 2022 was HKD 6,375 million, which includes an interim dividend of HKD 1,764 million and a proposed final dividend of HKD 4,611 million[40]. Business Segments Performance - The contribution from infrastructure business increased by 7%, with a 16% rise in contribution when measured in local currencies[3]. - Power Assets Holdings contributed HKD 2.033 billion in profit, down 8% year-on-year due to rising financial costs and weaker overseas contributions[5]. - The UK infrastructure business reported a profit contribution of HKD 3.369 billion, a 29% increase, driven by a one-time gain from the sale of a 13% stake in Northumbrian Water[6]. - The Australian infrastructure business saw a profit contribution of HKD 1.976 billion, a 4% increase, with local currency growth of 11%[8]. - The European infrastructure business reported a profit contribution of HKD 664 million, a 4% decrease, but a 6% increase in local currency terms[10]. - The profit contribution from Canadian operations increased significantly by 30% year-on-year to HKD 617 million, with a 33% growth in local currency terms[11]. - Profit contribution from New Zealand operations decreased by 2% year-on-year to HKD 167 million, but grew by 9% in local currency terms[12]. - The profit from Hong Kong and mainland China operations was HKD 196 million, a decline of 38% compared to last year, primarily due to the impact of COVID-19 lockdowns and rising fuel costs[13]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 1.83 per share, resulting in a total annual dividend of HKD 2.53 per share, up 1.2% from the previous year[4]. Operational Efficiency and Cost Management - The operating costs were reduced to HKD 4,364 million from HKD 4,627 million, showing a decrease of 5.7%[29]. - Operating costs decreased to HKD 3,431 million, down from HKD 3,466 million in 2021[34]. - The company has implemented new credit review policies to manage customer transactions more effectively, particularly for new clients and those with poor payment records[41]. Financial Position and Debt Management - As of December 31, 2022, the group held cash of HKD 18 billion, with a net debt to total capital ratio of 7%[14]. - The group’s total loans amounted to HKD 28.2 billion, with 18% due in 2023 and 82% due between 2024 and 2027[18]. - The net debt to total capital ratio decreased from 14.7% at the end of 2021 to 7.3% at the end of 2022, attributed to cash flow from investment activities[18]. - The group has a total of HKD 983 million in contingent liabilities as of December 31, 2022, related to guarantees for associated companies[20]. - Total liabilities decreased to HKD 36,485 million, down 5.5% from HKD 38,147 million in 2021[30]. Future Outlook and Strategic Initiatives - The company is expanding its renewable energy projects, including the Hydrogen Park South Australia, which is the largest renewable hydrogen production facility in Australia[9]. - UK Power Networks received regulatory approval for the new regulatory period from April 2023 to March 2028, which is expected to enhance future revenue[6]. - The group remains optimistic about its future prospects despite global economic uncertainties, supported by strong cash reserves and a low debt ratio[16]. - The company plans to continue expanding its infrastructure investments across various regions, including the UK, Australia, and mainland China[37]. - The group is actively seeking new investment opportunities in environmental sustainability as part of its overall business development strategy[15]. - The company is focusing on enhancing its operational efficiency and exploring potential mergers and acquisitions to drive future growth[37]. Governance and Compliance - The audit committee reviewed the annual results for the year ended December 31, 2022, which were audited by Deloitte[23]. - The company has established various committees, including the remuneration committee and nomination committee, to ensure good corporate governance practices[24][25]. - The company has implemented a whistleblowing policy and anti-fraud measures to enhance transparency and accountability[22]. - Deloitte has confirmed that the preliminary announcement of the consolidated financial statements is consistent with the audited financial statements approved by the board[43]. Meeting and Reporting - The annual general meeting for the year 2023 is scheduled for May 17, 2023[27].