Financial Performance - Revenue for the first half of 2023 was HKD 3,082,000,000, a decrease of 11% compared to HKD 3,478,939,000 in the same period of 2022[2] - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 21% to HKD 1,287,800,000 from HKD 1,066,673,000 year-on-year[2] - Profit before tax rose by 27% to HKD 879,931,000, compared to HKD 691,633,000 in the previous year[5] - Profit attributable to equity holders increased by 22% to HKD 632,188,000 from HKD 520,056,000 in the same period last year[6] - The interim dividend per share was increased to HKD 0.0663, up from HKD 0.0545 in the previous year[2] - Gross profit margin improved to 45.7%, up from 35.1% in the previous year, despite a decrease in revenue[5] - Total comprehensive income for the period was HKD 397,262,000, compared to a loss of HKD 206,714,000 in the same period last year[4] - The company reported a significant increase in perpetual capital instrument holders' profit by 845% to HKD 12,300,000 from HKD 1,302,000[6] - Operating cash flow before tax profit for the first half of 2023 was HKD 879,931, an increase of 27.2% compared to HKD 691,633 in the same period of 2022[12] - Net profit attributable to equity holders increased by 22% to HKD 6.3219 billion, up from HKD 5.5054 billion in the same period of 2022[65] Assets and Liabilities - Non-current assets totaled HKD 24,295,945,000, a slight decrease from HKD 24,514,612,000 at the end of 2022[7] - Current assets increased to HKD 9,226,984,000 from HKD 8,931,539,000 at the end of 2022[7] - As of June 30, 2023, total current liabilities increased to HKD 9,724,958 thousand from HKD 8,918,532 thousand as of December 31, 2022, representing an increase of approximately 9.1%[8] - Total assets decreased to HKD 23,797,971 thousand from HKD 24,527,619 thousand, a decline of about 3.0%[8] - Non-current liabilities decreased to HKD 10,550,631 thousand from HKD 11,526,741 thousand, a reduction of approximately 8.4%[8] - The equity attributable to the company's equity holders increased to HKD 11,196,463 thousand from HKD 10,967,490 thousand, reflecting a growth of about 2.1%[9] - The retained earnings of the company increased to HKD 6,028,336 thousand as of June 30, 2023, compared to HKD 5,545,538 thousand at the beginning of the year, marking an increase of approximately 8.7%[9] - The company's borrowings rose to HKD 6,923,916 thousand from HKD 5,686,435 thousand, an increase of approximately 21.8%[8] - Total liabilities increased by HKD 224.89 million, mainly due to new bond issuances and bank loans[78] Cash Flow - Net cash flow from operating activities was HKD (534,826) for the first half of 2023, slightly worse than HKD (519,813) in the first half of 2022[13] - Cash flow from investing activities generated a net amount of HKD 4,065 in the first half of 2023, a significant improvement from HKD (248,009) in the same period of 2022[13] - Cash flow from financing activities resulted in a net outflow of HKD (22,448) in the first half of 2023, compared to a net inflow of HKD 2,313,457 in the first half of 2022[13] - Total cash and cash equivalents at the end of the first half of 2023 were HKD 2,264,267, down from HKD 3,540,521 at the end of the first half of 2022[13] Revenue Breakdown - Revenue from the water environment management business for the first half of 2023 was HKD 3,082 million, a decrease of 11.4% compared to HKD 3,479 million in the same period of 2022[21] - Revenue from construction services, financial income, and operational income from local government agencies in China totaled HKD 2,911 million for the first half of 2023, down from HKD 3,360 million in the same period of 2022[27] - The company’s revenue recognition for services provided over time was HKD 2,395 million in the first half of 2023, down from HKD 2,845 million in the same period of 2022[26] Government Support - Government subsidies received amounted to HKD 15.65 million in the first half of 2023, an increase from HKD 12.72 million in the same period of 2022[29] - Value-added tax refunds rose to HKD 19.53 million in H1 2023, up from HKD 11.73 million in H1 2022, marking a significant increase of 66.5%[70] Operational Highlights - The company operates a single business segment focused on water environment management, which includes municipal wastewater treatment and industrial wastewater treatment[20] - The group operates 173 projects with a total water treatment capacity of 7,428,700 cubic meters per day[57] - The group processed approximately 846 million cubic meters of wastewater and supplied about 21.6 million cubic meters of reclaimed water during the review period[59] Risk Management - The company has identified and effectively managed ten major risks, including policy change risk and market competition risk, maintaining a stable risk level throughout the review period[100] - The group is exposed to high accounts receivable risks due to reliance on local government clients, with ongoing economic recovery affecting payment capabilities[104] - Financing management risks are being effectively controlled, with the group monitoring funding needs and adjusting loan structures to ensure sufficient capital reserves[107] Corporate Governance - The company has established a comprehensive management structure with four board committees and a management committee that meets at least once a month to ensure sustainable development[96] - The company is committed to high standards of corporate governance, regularly reviewing and updating governance practices to comply with Singapore and Hong Kong corporate governance codes[114] - The board of directors holds regular meetings, with at least four meetings per year, and has established four committees: Audit, Remuneration, Nomination, and Strategic Committees[115] Dividends - The company declared an interim dividend of HKD 6.63 per ordinary share for the first half of the 2023 fiscal year, compared to HKD 5.45 per share in the same period of the previous fiscal year, representing an increase of approximately 21.5%[122] - The interim dividend will be paid on September 8, 2023, with the share transfer registration suspension date set for August 25, 2023, for Singapore shareholders[124]
中国光大水务(01857) - 2023 - 中期业绩