研究员：王玮嘉/黄波/胡知/李雅琳 机构：华泰证券 6 月5 日中电控股出席了我们组织的2025 年中期策略会，会上公司分享近期经营变化和后续展望。我们 认为主要关注点包括：1）稳定型业务：随资本投入转固，管制业务利润贡献或稳步增厚；Q1 中国内地 核电机组稳健运行，阳江核电站电价略有下滑。2）成长型业务：Q1 中国内地、印度多个零碳项目顺利 投产，零碳项目投资计划的落地或为公司业绩注入成长潜力。 盈利预测与估值 我们维持公司25-27 年归母净利润为121/124/130 亿港元，2025 年EPS/BPS 为4.79/42.82 港元。维持目标 价79.37 港元，基于1.85x 25E PB，高于3 年历史均值（1.51x），重申看好公司未来业绩增长及分红提 升的潜力。 公司零碳资产组合不断拓展，中国内地广西博白风电项目（150MW）/江苏宜兴一期光伏项目 （90MW）、印度Sidhpur 风场（251MW）均于Q1 全面投产。据公司此前披露的零碳项目投资计划， 自2024 年至2029 年，中国内地可再生能源装机将翻倍（~3GW 至~6GW）；印度可再生能源/输电/智能 电表及电池储能将增至三倍（~2 ...

| 华泰研究 | | | 更新报告 | | --- | --- | --- | --- | | 2025 年 | 6 月 | 06 日│中国香港 | 发电 | 6 月 5 日中电控股出席了我们组织的 2025 年中期策略会，会上公司分享近 期经营变化和后续展望。我们认为主要关注点包括：1）稳定型业务：随资 本投入转固，管制业务利润贡献或稳步增厚；Q1 中国内地核电机组稳健运 行，阳江核电站电价略有下滑。2）成长型业务：Q1 中国内地、印度多个 零碳项目顺利投产，零碳项目投资计划的落地或为公司业绩注入成长潜力。 稳定型业务：Q1 中国香港售电量同比-2.6%，中国内地核电资产稳健运行 据公司公告，受天气和暖、2024 年为闰年等因素影响，虽数据中心等新兴 行业用电需求增长，Q1 中国香港售电量 70.91 亿度，同比-2.6%。但考虑 到现行管制计划协议约定公司电力业务实现的准许利润占固定资产净额的 比例为 8%，我们依旧看好在高确定性资本开支（2024-28 年预计 529 亿港 元）的保障下，随资本投入不断转固，利润贡献或稳步增厚。核电业务方面， 受益于停运天数减少，Q1 大亚湾核电站发电量同比增加；广东省 ...

Group 1: Business Performance - In Q1 2025, China Light and Power Company (CLP) reported a decrease in electricity sales volume to 7.091 billion kWh, down 2.6% year-on-year due to warmer weather and an extra day in the leap year 2024 [2] - The average net electricity price was reduced by 1.3% from early 2025, following a decrease in the monthly "fuel adjustment fee" to 44.4 HK cents per kWh [2] - CLP allocated HKD 240 million through the "CLP Community Energy Saving Fund" for community support programs, including electricity subsidies and energy-saving measures [2] Group 2: Technological Innovations - CLP is enhancing power supply reliability by implementing advanced technologies, such as the Grid-V smart management system, which uses AI for real-time monitoring of the power supply system [3] - The company is utilizing "beyond visual line of sight" drones for inspecting transmission towers and overhead cables, part of a pilot program selected by the government for low-altitude economic development [3] Group 3: Renewable Energy Initiatives - CLP is focusing on low-carbon energy infrastructure projects, including upgrades to the clean energy transmission system connecting Hong Kong with the Daya Bay Nuclear Power Station [2] - CLP's subsidiary, CLP Power, is expanding its electric vehicle (EV) charging services, with plans to introduce a tiered pricing structure for residential EV charging [3][4] Group 4: Performance in Mainland China - CLP's zero-carbon asset portfolio in Mainland China is expanding, with stable operational performance in Q1 2025, particularly at the Daya Bay Nuclear Power Station [5] - Renewable energy projects are maintaining reliable operations, with solar energy output stable despite reductions in wind and hydroelectric generation [5][6] Group 5: International Operations - EnergyAustralia's generation portfolio performed steadily, with increased output from the Mount Piper power plant in Q1 2025 [7] - The company is expanding its flexible generation capacity with the construction of a large battery storage system in Victoria, expected to be completed by 2027 [8] Group 6: Developments in India - Apraava Energy's operations in India remained stable, with good performance from solar assets and the commissioning of a 251 MW wind farm [9] - The company is advancing multiple transmission projects, including cross-state transmission lines and substations, expected to be operational between 2025 and 2026 [10]

Group 1 - Vanke A (万科A) closed at 6.77 yuan on May 16, 2025, down 0.29% with a turnover rate of 0.56% and a trading volume of 544,700 shares, amounting to a transaction value of 368 million yuan [1] - On the same day, the fund flow for Vanke A showed a net outflow of 23.47 million yuan from institutional investors, while retail investors had a net inflow of 17.63 million yuan [2][4] - Vanke Enterprise Co., Ltd. announced the interest payment for the "21 Vanke 04" bond on May 20, 2025, with an interest distribution of 37.00 yuan (including tax) for every 10 bonds with a face value of 1,000 yuan [2][4] Group 2 - The bond has a total balance of 566 million yuan, a term of 7 years, and a current coupon rate of 3.70%, with the issuer having the right to redeem at the end of the 5th year [2] - The interest payment date is set for May 20, 2025, with the record date on May 19, 2025, and the interest subject to a personal income tax rate of 20% for individual investors [2][4]

Financial Performance - Operating profit for 2024 reached HK$10.49 billion, an increase of 8%[24] - Total profit for 2024 was HK$11.74 billion, a significant rise of 76%[24] - The total dividend for 2024 was HK$3.15 per share, reflecting a growth of 1.6%[31] - EBITDAF for 2024 amounted to HK$25.73 billion, representing a 9% increase[31] - Operating profit increased by 8% to HKD 10,949 million in 2024, compared to HKD 10,127 million in 2023[36] - The total profit surged by 76% to HKD 11,742 million, up from HKD 6,655 million in the previous year[36] - Apraava Energy's operating profit grew by 9% to HKD 329 million, implementing profit growth strategies[36] Customer and Market Growth - The total number of customers in Hong Kong increased by 28,000, reaching 2.8 million[24] - The Hong Kong electricity sales volume rose by 2.1% due to an accelerated economic recovery and hot weather[40] Operational Performance - The electricity generation output for 2024 was 79.8 billion kWh, a slight increase of 0.3%[24] - The installed generation capacity was 22,600 MW, with an increase of 700 MW[24] - EnergyAustralia's performance showed significant improvement, contributing positively to overall results[33] - EnergyAustralia's performance improved significantly with a 425% increase in operating profit to HKD 591 million, driven by strong generation asset performance[36] - The mainland China segment saw an 11% decline in operating profit to HKD 1,851 million, primarily due to reduced contributions from nuclear power[36] Capital Expenditure and Investments - Capital expenditure for regulated projects was HKD 10.8 billion, including HKD 2.8 billion for generation and HKD 8 billion for transmission and distribution[40] - Capital investments (excluding maintenance capex) for 2024 are estimated at 169 billion HKD, with dividends paid amounting to 78 billion HKD[57] - The company invested over HKD 200 million in the "CLP Community Energy Saving Fund" to support residential and commercial customers in promoting carbon reduction and energy savings[40] Energy Transition and Sustainability - The company completed a strategic review to support long-term sustainable growth through energy transition[22] - The company is focusing on energy transition initiatives, including the introduction of more zero-carbon energy sources to meet the 2035 carbon reduction targets[40] - EnergyAustralia plans to expand its renewable energy portfolio to 3,000 MW by the end of 2030, enhancing its flexible generation capacity[46] - Renewable energy projects are currently executing approximately 2,000 MW of zero-carbon projects, including the largest 300 MW solar project to date[49] - The company aims to achieve a 59% reduction in greenhouse gas emissions intensity by 2030 and eliminate coal assets by 2040 as part of its climate vision[70] - The renewable energy target for 2030 includes achieving 3,000 MW through power purchase agreements, with a focus on energy transition investments in favorable regulatory environments[74] - The company has set a goal to develop approximately 8,000 MW of renewable energy capacity, including 1.6 GW of storage and 0.9 GW of renewable energy in India[74] Financial Health and Strategy - The net debt as of December 31, 2023, is 56.3 billion HKD, with a leverage ratio of 33.0%[60] - The company maintains a disciplined capital allocation strategy, generating strong free cash flow and promoting ordinary dividend growth consistent with underlying earnings[80] - The company has a strong investment-grade credit rating, with S&P rating at A and Moody's at A2, ensuring robust financing strategies[80] Digital and Operational Excellence - The company is committed to enhancing its digital and data capabilities, integrating digitalization throughout its operations[79] - The company is focused on maintaining a world-class power supply reliability through its smart grid strategy[72] - The company aims to become the preferred partner for customers in the region for decarbonization solutions, including integrated energy services for buildings and low-carbon transport[72] Safety and Reliability - The safety record improved with a total recordable injury rate of 0.24, a decrease of 0.06[24] - The company is focusing on managing fuel costs and supply to maintain operational reliability and safety performance in thermal power generation[52]

Financial Performance - CLP Holdings reported an operating profit increase of 8.1% to HKD 10,949 million for 2024, reflecting strong market performance[4]. - Total profit surged to HKD 11,742 million, significantly up from HKD 6,655 million in 2023, primarily due to the absence of one-time negative items[5]. - Comprehensive revenue rose by 4.4% to HKD 90,964 million, driven by higher wholesale market prices in Australia[5]. - The total dividend for 2024 increased by 1.6% to HKD 3.15 per share, compared to HKD 3.10 per share in 2023[6]. - The operating profit of the company's operations in mainland China was HKD 1,851 million in 2024, a decrease of 10.7% from HKD 2,073 million in 2023, primarily due to lower electricity prices at the Yangjiang Nuclear Power Station and increased costs[23]. - EnergyAustralia reported an operating profit of HKD 591 million in 2024, a significant improvement from an operating loss of HKD 182 million in 2023[29]. - The Mount Piper power plant's output increased by 31% to 7,010 GWh compared to 5,360 GWh in 2023, benefiting from a stable coal supply[33]. - The group reported a net profit of HKD 12,718 million for the year, an increase from HKD 12,000 million in 2023, representing a growth of 6.0%[61]. Investments and Initiatives - CLP Holdings is investing in low-carbon fuel initiatives, including the commissioning of advanced gas turbine units and the retirement of coal-fired units[6]. - The company has 740 MW of renewable energy projects under construction in mainland China, contributing to national decarbonization goals[7]. - Apraava Energy in India is developing over 2,000 MW of zero-carbon energy projects to meet growing electricity demand[9]. - The company is enhancing its strategy to ensure sustainable growth and adaptability to changing market conditions[10]. - The company plans to establish a joint venture with CNOOC Guangdong Shipping Clean Energy Co., Ltd. to provide LNG refueling services in Hong Kong, expected to start in the first half of 2025[17]. - The company is constructing its first independent battery storage system in Shandong, with a capacity of 100 MW, expected to be completed in 2025[26]. - Apraava Energy aims to triple its low-carbon energy portfolio in the medium term, emphasizing its role in India's energy transition[39]. Renewable Energy and Sustainability - The company has ongoing renewable energy projects totaling 590 MW, including wind and solar projects, with several expected to be operational by 2025[25]. - The company's renewable energy projects are designed to operate without government subsidies, with a total capacity increase of approximately 1,530 MW expected upon completion of new projects[26]. - The "Feed-in Tariff" program has approved a generation capacity of over 400 MW since its launch in 2018, equivalent to the annual electricity consumption of about 99,700 households[21]. - The company is committed to supporting the government's plans for the electrification of public buses and taxis, aligning with the green transformation roadmap[20]. - China Light and Power's renewable energy portfolio continues to expand, signing a ten-year green power certificate agreement with a multinational software company, marking the largest and longest such transaction to date[27]. Customer Engagement and Technology - The company continues to enhance customer interaction through a new mobile application that consolidates all electricity accounts, improving overall customer experience[22]. - The electric vehicle charging demand is increasing, with seven out of ten newly registered vehicles in Hong Kong being electric, prompting the company to provide innovative charging solutions[19]. - The company showcased new electric vehicle charging technologies at the ReThink HK 2024 event, including customized power solutions for fast charging[19]. - In 2024, the company launched a new electric vehicle charging station network in Hong Kong, providing ultra-fast and medium-speed charging services to meet the growing demand from commercial fleets and electric taxis[20]. Financial Position and Assets - The company's non-current assets reached HKD 206,874 million in 2024, compared to HKD 202,121 million in 2023, reflecting a growth of 2.9%[53]. - The total assets of the group as of December 31, 2024, amounted to HKD 233,713 million, compared to HKD 220,000 million in 2023, showing a growth of 6.2%[61]. - The group’s total liabilities as of December 31, 2024, were HKD 123,595 million, up from HKD 120,000 million in 2023, indicating a rise of 3.0%[61]. - The total receivables as of December 31, 2024, amount to HKD 14,114 million, compared to HKD 13,650 million in 2023, indicating a growth of approximately 3.4%[71]. - The group maintains a strong financial position with HKD 31 billion in undrawn bank loan facilities and HKD 5 billion in bank balances as of December 31, 2024[76]. Corporate Governance and Compliance - The company has adopted a corporate governance code that exceeds the standards set by the Hong Kong Stock Exchange, with only one deviation regarding the publication of quarterly earnings reports[84]. - The company has maintained compliance with the corporate governance code and the securities trading code throughout the fiscal year ending December 31, 2024[86]. - The audit committee reported that there were no significant internal control issues affecting the integrity of the financial statements during the period from January 1, 2024, to the announcement date[85]. - The internal audit department completed 17 audits and 8 special review reports in 2024, with two audit reports indicating less than ideal results, but no identified control weaknesses significantly impacting the financial statements[85].

Investment Rating - The report initiates coverage with an OUTPERFORM rating for CLP Holdings [3][31]. Core Views - CLP Holdings is a century-old energy operator rooted in Hong Kong, with diversified operations across the Asia Pacific region [5]. - The company has shown significant profit recovery in 2023, with a net profit of HK$6.655 billion, reflecting a 620.2% year-on-year increase [7][10]. - The company aims to achieve a net-zero power generation target by 2050, aligning with Hong Kong's climate action goals [18]. Summary by Sections 1. Company Overview - CLP Holdings is one of the largest private power companies in the Asia Pacific, with operations in Hong Kong, mainland China, Australia, India, Taiwan, and Thailand [5]. - The company operates a diverse generation portfolio, including coal, gas, nuclear, wind, hydro, and solar power [5]. 2. Financial Performance - Revenue has fluctuated from HK$85.689 billion in 2019 to HK$97.169 billion in 2023, with a CAGR of approximately 0.4% [7]. - The company’s operating profit before fair value changes was HK$101.27 billion in 2023, with Hong Kong contributing 76% [10]. - The company maintained a stable dividend policy, with a dividend yield of 4.81% in 2023 [14]. 3. Market Position - CLP Holdings is one of the two major electricity suppliers in Hong Kong, providing power to over 2.79 million customers [5]. - The company’s operations are regulated under a scheme that guarantees a return on investment, ensuring stable revenue streams [20]. 4. Renewable Energy Transition - The company is committed to expanding its renewable energy portfolio, with significant growth potential in mainland China, Australia, and India [26]. - CLP Holdings plans to phase out fossil fuel assets and increase renewable energy capacity, aiming for a reduction in greenhouse gas emissions intensity by 2030 [29]. 5. Future Outlook - The report forecasts revenues of HK$902.66 billion, HK$938.67 billion, and HK$985.31 billion for 2024-2026, with net profits projected at HK$69.41 billion, HK$73.38 billion, and HK$75.63 billion respectively [31].

Financial Performance - The group's operating profit before fair value changes increased by 22.0% to HKD 5,683 million, driven by strong performance across various businesses and improved earnings from EnergyAustralia[4]. - Total revenue for the first half of 2024 reached HKD 44,086 million, a 1.8% increase from HKD 43,302 million in the same period last year[5]. - Total profit for the first half of 2024 was HKD 5,951 million, up 17.6% from HKD 5,060 million in the previous year[4]. - Earnings per share increased to HKD 2.36, representing a 17.6% growth compared to HKD 2.00 in the same period last year[5]. - Cash inflow from operating activities rose significantly by 52.2% to HKD 9,016 million, compared to HKD 5,922 million in the previous year[5]. - The consolidated EBITDAF for 2024 reached HKD 12,990 million, an increase of 17.2% from HKD 11,082 million in 2023[16]. - The EBITDAF for Hong Kong was HKD 9,125 million, up 5.6% from HKD 8,641 million in 2023[16]. - The EBITDAF for Australia surged to HKD 2,224 million, a significant increase of 362.4% from HKD 481 million in 2023[16]. - The net financial expenses increased to HKD 6,910 million, reflecting a rise of 15.8% from HKD 5,966 million in 2023[17]. - The company reported a one-time income of HKD 106 million from the Hagler Power Plant in India, contributing to the overall performance improvement[16]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.63 per share, consistent with the previous year's dividend[8]. - The annual bonus for 2024 includes a payment of 20.8 million HKD for early payments of long-term bonuses for 2022, 2023, and a pro-rated amount for 2024[6]. - The company declared dividends totaling HKD 4,649 million during the period, including HKD 1,592 million for the first interim dividend of 2024[103]. Assets and Liabilities - The total assets as of June 30, 2024, were HKD 234,343 million, a 2.3% increase from HKD 229,051 million at the end of 2023[5]. - The net debt to total capital ratio increased to 34.0% from 31.6% in the previous year[5]. - Fixed assets, right-of-use assets, and investment properties totaled HKD 165,657 million as of June 30, 2024, up 2.5% from HKD 161,663 million at the end of 2023[20]. - The net debt increased to HKD 58,818 million, a rise of 12.4% from HKD 52,311 million in 2023[20]. - The total liabilities stood at HKD 120,846 million, with bank loans and borrowings accounting for HKD 61,765 million[108]. Renewable Energy Initiatives - The company is focusing on low-carbon energy solutions to meet growing energy demands and achieve carbon reduction goals[8]. - The total installed capacity of renewable energy projects in mainland China reached 450 MW, with 300 MW of new projects under construction[11]. - The company is actively pursuing opportunities in green hydrogen production to support Hong Kong's goal of achieving net-zero emissions by 2050[11]. - The contribution from renewable energy projects in mainland China was stable, supported by increased water resources and new wind and solar projects[16]. - The renewable energy generation capacity approved has increased to 391 MW, equivalent to the annual electricity consumption of 96,500 households[36]. Operational Efficiency and Customer Service - The reliability of electricity supply in Hong Kong reached a world-class level of 99.999%[12]. - The installation of smart meters is nearing completion, with over 2.44 million smart meters connected as of June 30, allowing customers to monitor their electricity usage[36]. - The company serves approximately 281,000 customers in Kowloon, New Territories, and most outlying islands in Hong Kong, achieving 100% customer service coverage[144]. - The company operates a total of 14,773 kilometers of transmission and distribution lines, with 100% operational efficiency in Hong Kong[144]. Environmental and Safety Initiatives - The company aims to enhance its health, safety, and environmental management strategies by the end of this year, focusing on adapting to changing business needs[57]. - The company has not recorded any environmental violations leading to fines or prosecutions in the first half of 2024[58]. - The total recordable injury rate for employees increased to 0.26 in the first half of 2024 from 0.08 in the same period of 2023, indicating a significant rise in workplace incidents[55]. - The loss time injury rate for employees rose to 0.15 in the first half of 2024, compared to 0.03 in the same period of 2023, highlighting a concerning trend in workplace safety[55]. Strategic Developments and Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[109]. - The company is focusing on enhancing operational capabilities through strategic partnerships and potential acquisitions[108]. - Future outlook remains positive, with ongoing investments in new technologies and market expansion strategies planned[108]. - The company is enhancing its reporting standards to better communicate the impacts, risks, and opportunities related to sustainability[61]. Corporate Governance and Management - The company appointed a new Chief Financial Officer, effective April 1, 2024, as part of a succession plan[73]. - The total remuneration for the CEO, Mr. Jiang Dongqiang, for the six months ended June 30, 2024, was HKD 14.0 million, which includes basic salary, performance bonuses, and other benefits[83]. - The total remuneration for the CFO, Mr. Ji Anli, for the same period was HKD 9.2 million, reflecting a combination of regular and performance-based compensation[83]. - The company has established and follows an effective risk management and internal control system, as monitored by the Audit and Risk Committee[85]. Community Engagement and Social Responsibility - The "CLP Community Energy Saving Fund" allocated over HKD 200 million in 2024 to assist vulnerable communities with energy costs, including HKD 50 million for electricity subsidies[35]. - EnergyAustralia's employees donated over AUD 150,000 to charities, with the company matching donations, and contributed approximately 500 hours of volunteer service[67]. - The company has implemented various support measures for vulnerable communities to alleviate the burden of energy costs amid moderate economic growth in Hong Kong[10].

Financial Performance - In the first half of 2024, CLP Holdings reported an operating profit of HKD 5,683 million, a 22.0% increase, driven by strong performance across its businesses and improved earnings from EnergyAustralia[3]. - Total profit for the first six months rose to HKD 5,951 million, compared to HKD 5,060 million in the same period last year, reflecting a 17.6% year-on-year growth[4]. - The group's consolidated revenue slightly increased by 1.8% to HKD 44,086 million[3]. - Operating profit for the first half of 2024 increased by 22.0% to HKD 5,683 million, driven by strong performance across various businesses and improved profitability from EnergyAustralia[9]. - Total profit for the first six months of 2024 grew to HKD 5,951 million, reflecting a 17.6% increase compared to the same period in 2023[10]. - The company reported a basic and diluted earnings per share of HKD 2.36 for the first half of 2024, compared to HKD 2.00 in the same period of 2023[43]. - The total comprehensive income for the period was HKD 6,330 million, an increase from HKD 5,144 million in the previous year[44]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.63 per share, consistent with the previous year[5]. - The company announced an interim dividend of HKD 0.63 per share for the second period of 2024, consistent with the dividend of HKD 0.63 per share in 2023, to be distributed on September 13, 2024[75]. - The dividend will be distributed based on the currently issued shares totaling 2,526,450,570[75]. Energy Transition and Sustainability Initiatives - CLP Holdings is focusing on low-carbon energy solutions, with a new 600 MW gas-fired unit D2 at the Lung Kwu Tan Power Station now operational[6]. - The company is committed to enhancing its financial strength and strategic position in the Australian market to contribute to the clean energy transition[7]. - CLP Holdings is actively pursuing opportunities in green hydrogen production to support Hong Kong's goal of achieving net-zero emissions by 2050[6]. - The company is committed to investing in opportunities arising from the transition to a net-zero future, aiming to provide affordable, reliable, and sustainable energy[8]. - The company aims to reduce greenhouse gas emissions intensity from electricity sold by tightening the target from 0.3 kg CO2 equivalent per kWh to 0.26 kg CO2 equivalent by 2030[36]. - The company has not recorded any environmental violations leading to fines or prosecutions in the first half of 2024[35]. - The company has received multiple awards for its sustainability reporting, including the Gold Award at the Asia Annual Report Awards for six consecutive years[38]. Renewable Energy Projects - In mainland China, existing renewable energy projects saw a slight increase in generation, with 300 MW of new projects under construction, bringing total wind and solar capacity to 450 MW[7]. - Apraava Energy in India secured multiple low-carbon project development rights, including a 350 MW renewable energy project and installation of over 1.7 million smart meters[7]. - EnergyAustralia is developing flexible generation capacity projects and advancing significant energy storage projects in Victoria and South Australia[7]. - CLP's renewable energy development in mainland China remains robust, with solar and hydropower output increasing due to new projects, despite some operational challenges at nuclear plants[19]. - CLP China has initiated construction on 300 MW of solar and wind projects, including a 100 MW wind farm in Guizhou and two solar projects in Jiangsu, expected to be operational by mid-2025[20]. - Apraava Energy is actively developing renewable energy projects, including a 350 MW capacity and nearly 200 km of transmission lines, to meet India's growing energy demand[27]. - Apraava Energy successfully secured a 300 MW solar PV project in Rajasthan, with construction expected to begin in the second half of this year[28]. - The company has also won a 50 MW solar project in the same state, with construction anticipated to start after receiving approval later this year[28]. Customer and Market Developments - Electricity sales in Hong Kong rose to 16,743 million kWh, a 2.6% increase year-on-year, supported by economic recovery and higher demand due to warmer weather[12]. - The reliability of electricity supply remains at a world-class level of 99.999%, with ongoing efforts to enhance supply reliability and minimize public impact during incidents[14]. - Average net electricity price was reduced by 1.6% in the first half of 2024, in response to declining international fuel prices[15]. - Profit from the Hong Kong energy business increased by 2.8% to HKD 4,165 million, while profit from mainland China decreased by 28.0% to HKD 988 million due to planned outages[10]. - The Indian segment saw a significant profit increase of 59.8% to HKD 203 million, attributed to higher electricity prices and stable contributions from renewable energy projects[10]. - EnergyAustralia's retail customer count decreased by 23,200, approximately 1%, by June 2024 compared to December 2023, although customer satisfaction scores improved[23]. Operational Efficiency and Safety - The company is implementing a comprehensive review of its power supply system management to reduce electricity incidents and improve response times[14]. - The company is committed to enhancing workplace health and safety, with a strategy update planned by the end of the year to strengthen health and safety management systems[34]. - The total recordable injury rate and lost time injury rate slightly increased, reflecting a rise in incidents during maintenance shutdowns[32]. - The lost time injury rate for employees increased to 0.15 in the first half of 2024 from 0.03 in the same period of 2023, while the total recordable injury rate rose to 0.26 from 0.08[33]. Financial Position and Capital Management - The company reported a decrease in cash and cash equivalents to HKD 2,929 million from HKD 5,182 million, a decline of 43.3%[46]. - The bank loans and other borrowings increased to HKD 48,443 million from HKD 44,943 million, an increase of 7.1%[47]. - The group maintained a strong liquidity position with HKD 27.3 billion in undrawn bank loan facilities and HKD 2.9 billion in bank balances as of June 30, 2024[66]. - The group secured a total loan facility of HKD 5.3 billion during the first half of 2024 for refinancing and business needs[66]. - The group’s net debt to total capital ratio increased to 34.0% as of June 30, 2024, up from 31.6% at the end of 2023[68]. - Funds from operations (FFO) interest coverage ratio improved to 9 times for the six months ended June 30, 2024, compared to 7 times in the same period of 2023[68]. Governance and Compliance - The board of directors was updated with new members, receiving strong support from shareholders during the 2024 annual meeting[69]. - The company maintained compliance with its corporate governance code, with only one deviation regarding the publication of quarterly financial results[71]. - The audit and risk committee submitted five audit reports and three special review reports, with no significant issues identified affecting the financial statements[73].

Financial Performance - The company reported an operating profit of HKD 10,127 million for 2023, with a pre-fair value change operating profit of HKD 8,823 million[10]. - Total revenue decreased by 13.4% to HKD 87,169 million, with Hong Kong electricity business revenue slightly up by 0.1% to HKD 50,630 million, while revenue from energy businesses outside Hong Kong fell by 28.3% to HKD 35,039 million[16]. - Total profit rebounded to HKD 6,655 million from HKD 924 million in 2022, reflecting a strong recovery[15]. - The company reported a net cash inflow from operating activities of HKD 23,567 million, an increase of 85.1% compared to HKD 12,734 million in 2022[16]. - The company's earnings per share increased significantly to HKD 2.63 from HKD 0.37, reflecting a growth of 620.2%[16]. - The fair value changes reversed from a loss of HKD 2,979 million to a gain of HKD 2,125 million, impacting the comparability of results[15]. - Total profit for 2023 was HKD 6,655 million, compared to HKD 924 million in 2022, after accounting for a non-cash goodwill impairment of HKD 5,868 million related to EnergyAustralia[30]. - The group reported an operating cash flow increase of 85% to HKD 23,567 million compared to HKD 12,734 million in 2022, reflecting strong financial health[122]. - The company reported a net profit attributable to shareholders of HKD 6,655 million for 2023, up from HKD 924 million in 2022[71]. - The company declared a total dividend for 2023 at HKD 3.10 per share, maintaining the same level as in previous years[93]. Sustainability and Environmental Goals - The company aims to achieve net-zero greenhouse gas emissions across its value chain by the end of 2050, with strengthened carbon reduction targets for 2030[2]. - The company is committed to enhancing transparency in climate-related disclosures and sustainability reporting, exceeding regulatory requirements[2]. - The company continues to focus on sustainable energy solutions and community welfare, aligning with its mission to create value for shareholders and customers[18]. - The total greenhouse gas emissions across Scope 1, Scope 2, and Scope 3 for the group decreased by 12% year-on-year to 52,988 kilotons of CO2 equivalent[114]. - The greenhouse gas emission intensity of electricity sold decreased from 0.55 kg CO2 equivalent per kWh to 0.54 kg CO2 equivalent per kWh compared to the previous year[114]. - The company aims to reduce absolute Scope 3 greenhouse gas emissions from the 2019 level by 28% by the end of 2030[115]. - The company plans to reduce the greenhouse gas emission intensity of electricity sold to 0.1 kg CO2 equivalent per kWh by the end of 2040 and achieve net-zero emissions by the end of 2050[115]. - The company has committed to reviewing the "Climate Vision 2050" targets at least every three years[115]. - The company is focusing on capital investment in renewable energy infrastructure, including wind, solar, nuclear, and battery storage systems[112]. - The company is actively supporting industries in enhancing quality and consistency in carbon markets[112]. Operational Developments - The company operates a total generation and storage capacity of 23,291 MW, including 9,719 MW from coal and 6,093 MW from gas[9]. - The company is actively pursuing growth opportunities in the Greater Bay Area and regional energy markets, emphasizing its commitment to sustainable development[4]. - The company has streamlined its annual report and sustainability report to enhance clarity and avoid redundancy, focusing on key financial impacts and sustainability strategies[2]. - The company successfully launched Hong Kong's first offshore liquefied natural gas receiving terminal in September 2023, enhancing energy supply stability[30]. - The company plans to construct a 300 MW wind farm in Karnataka, India, and has commenced partial operations at the Sidhpur wind project in Gujarat[32]. - The company aims to enhance operational flexibility and develop skills to meet future energy demands[21]. - The company is exploring growth opportunities in renewable energy, transmission, and advanced metering infrastructure (AMI) projects, supported by significant backing from CLP Group and CDPQ[55]. - The company is committed to supporting the clean energy development in Shandong Province, with operational wind projects totaling approximately 600 MW[47]. - The company is investing in nuclear energy infrastructure to reduce energy production costs while aligning with decarbonization efforts[107]. Customer and Community Engagement - Customer satisfaction score improved to 74, up from 72 in 2022[20]. - A total of HKD 9 million was donated to support energy-saving initiatives and community development[28]. - The company has allocated over HKD 200 million through the "CLP Community Energy Saving Fund" to support community initiatives promoting renewable energy and stimulate the Hong Kong economy[146]. - Approximately 2,000 underprivileged households will receive free inspections and repairs of electrical installations under the new grassroots home electricity safety program[148]. - The company is focusing on customer-centric energy solutions, including smart grid technology, to enhance market share and increase revenue through innovative products and services[108]. - The "All Electric Home" program promotes low-carbon lifestyles by supporting developers in installing energy-efficient appliances and solar panels in new residential units[134]. Workforce and Talent Management - The company has implemented a new operational model to respond more quickly to customer needs and growth opportunities[165]. - Over 800 new employees were recruited in Hong Kong and mainland China, maintaining a rapid hiring pace to support business growth[157]. - The average employee participated in 44.1 hours of internal and external training courses in 2023, consistent with 2022 levels[160]. - The group received the "Best Corporate Wellbeing Program" award at the CTgoodjobs "Best HR Awards" and a gold award for "Mental Health Friendly Excellent Organization" from the Occupational Safety and Health Council[154]. - The group has expanded its engineering talent pool by collaborating with local and overseas educational institutions, benefiting over 2,100 students since the establishment of the training academy in 2017[159]. - The group has implemented a flagship trainee engineer program in Hong Kong, with over 40 young engineers participating, the highest number to date[157]. - The group is committed to reducing risks associated with high-altitude work and falling objects, adjusting strategies based on specific regional business risks[154]. Regulatory and Market Challenges - The company faces financial risks due to evolving global net-zero policies, which may accelerate the closure of coal-fired power plants and lead to early transformation costs[107]. - The company may face regulatory uncertainties and public sentiment challenges regarding energy pricing, which could impact long-term financial performance[109]. - The current regulatory framework for the company in Hong Kong is a 15-year agreement expiring in December 2033, with a mid-term review completed in 2023[172]. - The company is committed to fulfilling stakeholder expectations by playing an active role in society, leading in carbon reduction, and investing in green energy solutions[105]. Technological Advancements - The company is focusing on developing new energy services and business models, transitioning from traditional utility operations to diversified offerings[174]. - The company has completed the installation of a floating solar photovoltaic system for the Drainage Services Department in Hong Kong, which was connected to the grid in September[174]. - The company is collaborating with local authorities in mainland China to adapt to market reforms aimed at establishing a unified national electricity market[173]. - The company has over 100 robotic process automation projects underway to streamline workflows and reduce repetitive tasks[165]. Investment and Financial Strategy - The company is investing over AUD 5 billion in its Climate Transition Action Plan (CTAP) to support energy transition initiatives[52]. - The group has initiated sustainable financing activities under the Climate Action Financing Framework, linking performance indicators to emission reductions[64]. - The company is committed to maintaining a solid financial foundation to meet investor expectations while prioritizing community and environmental interests[112]. - The group raised HKD 20 billion in bank loan facilities linked to emission reduction performance in December 2022, and in the first half of 2023, China Power arranged HKD 2.3 billion in one-year bank loans[127].