HK FERRY (HOLD)(00050)2023-03-17 13:28Financial Performance - The company's net profit after tax for the year ended December 31, 2022, was approximately HKD 1.299 billion, an increase of about 999% compared to the same period in 2021[2]. - Earnings per share for the year was HKD 3.65, compared to HKD 0.33 in 2021[11]. - The operating profit for the year was HKD 176.345 million, slightly up from HKD 169.945 million in the previous year[11]. - The total revenue for the year was HKD 280.632 million, compared to HKD 244.197 million in 2021, reflecting a growth of approximately 15%[11]. - The company reported a pre-tax profit of HKD 1.356 billion, compared to HKD 138.603 million in the previous year[11]. - The total comprehensive income for the year included other comprehensive income of HKD 150.482 million[11]. - The company’s total income was HKD 461,436,000 in 2022, up from HKD 392,574,000 in 2021, indicating a growth of approximately 17.5%[41]. - The deferred tax for 2022 was HKD 58,433,000, significantly higher than HKD 13,771,000 in 2021, marking an increase of about 324%[40]. - The current tax provision for the year was HKD 28,468,000, compared to HKD 30,040,000 in the previous year, showing a decrease of around 5.2%[40]. - The company’s other income, including interest income and government grants, amounted to HKD 150,482,000 in 2022, up from HKD 82,203,000 in 2021, reflecting an increase of approximately 83%[45]. - The group reported a net loss of HKD 23,057,000 from the fair value changes of other financial assets in 2022, compared to a loss of HKD 7,632,000 in 2021, indicating a significant increase in losses[50]. - Basic earnings per share for the year amounted to HKD 1,299,136,000, compared to HKD 118,249,000 in 2021, reflecting a substantial increase in profitability[57]. - The group recorded a loss of HKD 16.9 million from securities investments due to market downturns[90]. Revenue and Investment - The company recognized a significant gain from its 50% stake in the "Emperor" joint venture project, contributing to the substantial increase in profit[2]. - In 2022, the total revenue from property investment was HKD 160,034,000, compared to HKD 147,200,000 in 2021, reflecting an increase of approximately 8.5%[41]. - The profit from property development and investment in 2022 was HKD 98,928,000, a decrease from HKD 148,036,000 in 2021, representing a decline of about 33.3%[42]. - The company plans to continue expanding its real estate development and investment activities in the coming year[19]. - The company plans to continue expanding its property investment portfolio, focusing on increasing rental income and exploring new market opportunities[41]. - The group’s gross rental income from shops was approximately HKD 113 million in 2022, with full occupancy for "Liangxianju" and "Chengzhonghui" shops, and an occupancy rate of 89% for "Jiayuanju" shops[68]. - The joint venture project "Imperial Court" has delivered 1,738 residential units, confirming revenue from property sales[69]. - The "Ying'an" development project in Cheung Sha Wan is expected to complete indoor decoration by early 2024, providing approximately 100,698 square feet of residential floor area[70]. Dividends and Shareholder Equity - The group proposed a final dividend of HKD 0.15 per share and a special dividend of HKD 1.00 per share, totaling HKD 356,274,000 for the special dividend alone[56]. - Shareholders' equity increased by approximately 20% to HKD 7.218 billion, driven by confirmed property sales and rental profits[74]. - The group plans to distribute a final dividend of HKD 0.15 per share and a special dividend of HKD 1.00 per share, totaling HKD 1.25 for the year[86]. - The company will distribute a special dividend of HKD 1 per share to shareholders as part of its centenary celebrations[98]. Assets and Liabilities - The company’s total assets as of December 31, 2022, were reported at HKD 1,232,000,000, compared to HKD 1,170,000,000 in 2021, showing an increase of about 5.3%[40]. - The group’s total liabilities related to trade and other payables were projected to be settled within one year, with trade payables amounting to HKD 16,172,000 in 2022, slightly down from HKD 16,527,000 in 2021[62]. - The group’s cash and cash equivalents increased to HKD 115,129,000 in 2022, compared to HKD 96,381,000 in 2021, indicating improved liquidity[63]. - As of December 31, 2022, the group's current assets were approximately HKD 3.907 billion, with current liabilities of about HKD 231 million, resulting in a current ratio of 16.9 times[93]. - Non-current assets amounted to HKD 3,627,506,000, an increase from HKD 3,091,734,000 in the previous year, representing a growth of approximately 17.3%[126]. - Current assets totaled HKD 3,907,115,000, compared to HKD 3,177,496,000 last year, indicating a year-on-year increase of about 23.0%[126]. - Total assets less current liabilities reached HKD 7,303,688,000, up from HKD 6,084,318,000, reflecting a growth of around 20.0%[126]. - Net assets amounted to HKD 7,218,257,000, compared to HKD 6,004,518,000 in the previous year, showing an increase of approximately 20.2%[126]. - The company reported a significant increase in current liabilities, with trade and other payables at HKD 183,927,000, compared to HKD 163,882,000 last year, marking an increase of about 12.6%[126]. Operational Insights - The group’s operating profit primarily derived from rental income from shops and markets during the review year[67]. - The total employee cost for the year was approximately HKD 99 million, with the number of employees increasing to about 250 from 200 in the previous year[112]. - The ferry and related businesses recorded a loss of HKD 5.4 million, a decline from a profit of HKD 8.6 million in 2021, primarily due to the lack of government subsidies for maintenance[71]. - The AMOUR medical beauty clinic opened in August, occupying 12,000 square feet, offering high-quality personalized medical beauty services[91]. - The company is expanding its medical and aesthetic services to provide a variety of quality healthcare offerings[107]. Regulatory and Compliance - The company has implemented new accounting policies regarding contract losses, which may impact future financial reporting[17]. - The company has implemented new accounting policies that clarify the assessment of contracts and their associated costs, which may impact future financial reporting[36]. - The company has adopted the "Standard Code" for securities trading by directors, confirming compliance for the fiscal year ending December 31, 2022[117]. - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards and comply with the applicable disclosure requirements of the Listing Rules[127]. - The impact of revised Hong Kong Financial Reporting Standards has been reflected in the financial statements for the current accounting period[128]. - The company has not adopted any new standards or interpretations that are not yet effective during the reporting period[129]. - The audit committee reviewed the financial performance for the year ending December 31, 2022, with no differing opinions noted[116]. Market Outlook - The easing of COVID-19 restrictions is expected to boost local consumption and aid economic recovery as travel increases[97]. - The Hong Kong government has allocated HKD 30 billion to establish a "Co-Investment Fund" to attract corporate investments, enhancing the region's competitiveness[113]. - The Hong Kong private healthcare expenditure reached HKD 88.1 billion in the 2019/2020 fiscal year, indicating significant growth potential in the healthcare sector[107]. - The company plans to continue seeking suitable retail investments and is monitoring appropriate land for development purposes[114].