NWS HOLDINGS(HK:00659)2024-03-27 04:00Financial Performance - Total revenue for the six months ended December 31, 2023, was HKD 13,978.5 million, an increase of 6.6% from HKD 13,105.9 million in the same period last year[9]. - Profit attributable to shareholders increased by 18% to HKD 1,008.8 million, compared to HKD 853.1 million in the previous year[9]. - Operating profit attributable to the group rose by 19% to HKD 2,134.0 million, up from HKD 1,791.6 million year-on-year[11]. - Adjusted EBITDA for the period was HKD 3,727.3 million, a significant increase from HKD 2,588.2 million in the prior year[9]. - The group's attributable operating profit increased significantly by 31% year-on-year, driven by strong performance in the road business, growth in the insurance sector, and a turnaround in facilities management[15]. - Adjusted EBITDA grew by 44% year-on-year to HKD 3.7273 billion[15]. - Basic earnings per share for the period were HKD 0.28, representing a 14% year-on-year increase[20]. - The company reported a profit of HKD 1,340.1 million for the six months ended December 31, 2023, representing a 15.6% increase from HKD 1,159.4 million in the same period of 2022[66]. - Operating profit reached HKD 1,718.4 million, an increase of 48.4% from HKD 1,157.9 million in the prior year[64]. Debt and Financial Position - The group maintained a net debt ratio of 30%, up from 8% in the previous year, primarily due to the reclassification of certain perpetual capital securities as debt[9]. - As of December 31, 2023, the net debt increased to approximately HKD 14.3 billion, with a net debt-to-equity ratio of 30%[17]. - The proportion of fixed-rate debt increased from 37% to 45% as of December 31, 2023, while RMB-denominated debt rose to 49% of total debt from 43%[17]. - The company's debt increased to HKD 34,419.5 million, up from HKD 23,590.9 million, marking a 46% rise in borrowings[68]. - The total liabilities for insurance contracts as of December 31, 2023, were HKD 62,299.9 million, compared to HKD 56,414.4 million as of June 30, 2023[192]. Dividends and Shareholder Returns - The board declared an interim ordinary dividend of HKD 0.30 per share, maintaining the same amount as the previous year[20]. - A special dividend of HKD 1.79 per share was also declared, reflecting the company's commitment to shareholder value[20]. - The total interim dividend per share, including ordinary and special dividends, amounted to HKD 2.09[21]. - The company paid dividends to shareholders totaling HKD 1,212.7 million, consistent with the previous year's payment of HKD 1,212.2 million[75]. Business Segments Performance - The logistics business experienced a slight decline in operating profit due to the absence of revaluation gains from certain properties[12]. - The insurance business benefited from increased contract service margins and higher investment returns, contributing positively to overall profit growth[12]. - The insurance segment's operating profit reached HKD 413.0 million, a significant 79% increase compared to HKD 230.6 million in the previous year[30]. - The Roads segment experienced a traffic volume increase of 18% and toll revenue growth of 20% compared to the previous year[27]. - The facilities management business achieved an attributable operating profit of HKD 124.2 million, recovering from an attributable operating loss of HKD 127.8 million in the same period last year[43]. Strategic Initiatives and Outlook - The group continues to pursue strategic acquisitions and divestitures to optimize its business portfolio and enhance shareholder value[6]. - Future outlook remains cautious due to global uncertainties, but the group is committed to maximizing returns for shareholders through prudent business strategies[6]. - The company remains optimistic about growth prospects in the insurance sector, driven by local demand for medical coverage and product innovation[51]. - The group plans to invest in road and logistics businesses to leverage growth potential while incorporating ESG considerations into investment decisions[56]. Asset Management and Investments - The group's total assets increased to HKD 162,748.9 million from HKD 154,505.1 million year-on-year[9]. - Cash and bank balances rose to HKD 20,070.5 million, compared to HKD 13,452.6 million in the previous year, indicating a 48.9% increase[68]. - The company’s total equity attributable to shareholders was HKD 22,122.1 million as of December 31, 2023, reflecting a decrease from HKD 22,133.7 million as of July 1, 2023[189]. - The company’s strategic investments totaled HKD 6,099.7 million, reflecting ongoing commitment to growth and expansion initiatives[150]. Regulatory and Accounting Changes - The company adopted the new Hong Kong Financial Reporting Standard No. 17 for insurance contracts, which establishes principles for recognition, measurement, presentation, and disclosure[84]. - The group has adopted Hong Kong Financial Reporting Standard No. 17, resulting in changes to the main accounting policies for preparing consolidated financial statements[98]. - The transition to HKFRS 17 involved the termination of recognition for deferred acquisition costs and other receivables and payables related to insurance contracts[93]. Market and Economic Conditions - The logistics business is expected to benefit from strong growth prospects due to increased demand and expanded processing capacity[52]. - The construction group is addressing talent shortages by hiring management personnel from mainland China and overseas[54]. - The facilities management business anticipates a full recovery to pre-COVID levels by the end of 2024, supported by government measures[55].