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电能实业(00006) - 2024 - 中期财报
00006POWER ASSETS(00006)2024-09-02 07:41

Financial Performance - Net profit attributable to shareholders for the first six months of 2024 was HKD 3,006 million, a 2% increase compared to HKD 2,959 million in the same period of 2023[1] - Earnings per share for the first six months of 2024 were HKD 1.41, compared to HKD 1.39 in the same period of 2023[1] - The company reported a profit attributable to shareholders of HKD 3.006 billion for the first six months of 2024, compared to HKD 2.959 billion in the same period in 2023[26] - Basic and diluted earnings per share for the first six months of 2024 were HKD 1.41, up from HKD 1.39 in the same period in 2023[26] - The company's profit attributable to shareholders for the first half of 2024 was HK3,006million,aslightincreasefromHK3,006 million, a slight increase from HK2,959 million in the same period last year[27] - Total comprehensive income attributable to shareholders for the first half of 2024 was HK2,159million,asignificantdecreasefromHK2,159 million, a significant decrease from HK5,783 million in the same period last year[27] - Profit before tax for the group increased to HKD 3,134 million in 2024 from HKD 3,061 million in 2023, driven by higher contributions from joint ventures and associates[34] - Earnings per share (EPS) rose to HKD 1.44 in 2024 from HKD 1.39 in 2023, based on a net profit of HKD 3,060 million and 2,131,105,154 shares outstanding[38] - Pre-tax profit for the first half of 2024 was HKD 3,134 million, up from HKD 3,061 million in the same period of 2023[42] Dividends and Shareholder Returns - The interim dividend per share remains unchanged at HKD 0.78, to be paid on September 24, 2024[9] - The company declared an interim dividend of HKD 0.78 per share, totaling HKD 1,662 million for the six months ended June 30, 2024[50] - The company paid dividends of HK4,348milliontoshareholdersinthefirsthalfof2024,consistentwiththeamountpaidinthesameperiodlastyear[30]−ThecompanydeclaredaninterimdividendofHKD0.78persharefor2024,payableonSeptember24,2024[76]DebtandFinancialPosition−Thecompany′snetdebttototalcapitalratiois24,348 million to shareholders in the first half of 2024, consistent with the amount paid in the same period last year[30] - The company declared an interim dividend of HKD 0.78 per share for 2024, payable on September 24, 2024[76] Debt and Financial Position - The company's net debt to total capital ratio is 2%, with a net debt to total capital ratio of 45% on a pro-rata basis for international investment portfolio[11] - The company's unsecured bank loans totaled HKD 2.863 billion as of June 30, 2024, a decrease from HKD 3.097 billion as of December 31, 2023[21] - The company's bank deposits and cash stood at HKD 1.48 billion as of June 30, 2024, down from HKD 4.201 billion as of December 31, 2023[21] - The company's net debt position was HKD 1.383 billion as of June 30, 2024, compared to a net cash position of HKD 1.104 billion as of December 31, 2023[22] - The company's net debt to total capital ratio was 2% as of June 30, 2024, compared to no net debt as of December 31, 2023[22] - The company's net assets as of June 30, 2024, were HK86,563 million, down from HK88,752millionattheendof2023[28]−Thecompany′stotalassetslesscurrentliabilitieswereHK88,752 million at the end of 2023[28] - The company's total assets less current liabilities were HK89,917 million as of June 30, 2024, down from HK92,453millionattheendof2023[28]−Thecompany′snon−currentassetsincreasedslightlytoHK92,453 million at the end of 2023[28] - The company's non-current assets increased slightly to HK91,558 million as of June 30, 2024, compared to HK91,343millionattheendof2023[28]−Thecompany′scurrentliabilitiesexceededcurrentassetsbyHK91,343 million at the end of 2023[28] - The company's current liabilities exceeded current assets by HK1,641 million as of June 30, 2024, compared to a net current asset position of HK1,110millionattheendof2023[28]−BankdepositsandcashdecreasedtoHKD1,480millionasofJune30,2024,fromHKD4,201millionattheendof2023[41]InvestmentsandAcquisitions−ThecompanycompletedtheacquisitionoftwoUKlow−carbonenergybusinesses,includinga201,110 million at the end of 2023[28] - Bank deposits and cash decreased to HKD 1,480 million as of June 30, 2024, from HKD 4,201 million at the end of 2023[41] Investments and Acquisitions - The company completed the acquisition of two UK low-carbon energy businesses, including a 20% stake in Phoenix Energy and the acquisition of UU Solar through UKPN[10] - The company, along with Cheung Kong Infrastructure and Cheung Kong Holdings, formed a consortium to acquire a UK onshore wind asset portfolio for approximately £350 million (HKD 3.5 billion), marking the company's third acquisition in 2024[18] - The acquired wind asset portfolio includes 32 wind farms across England, Scotland, and Wales, with a total installed capacity of 175 MW and a net equity capacity of 137 MW[18] - The company, along with Cheung Kong Infrastructure Holdings Limited and Cheung Kong (Holdings) Limited, agreed to acquire a UK onshore wind portfolio for approximately GBP 350 million (approximately HKD 3.5 billion). The portfolio includes 32 wind farms with a total installed capacity of 175 MW and a net equity installed capacity of 137 MW[54] Renewable Energy and Sustainability - The company's renewable energy portfolio in the UK includes 70 projects, with 90% of revenue coming from long-term contracts and government renewable energy subsidies[10] - Australian Gas Networks is progressing with the HyP Murray Valley hydrogen project, aiming to blend 10% hydrogen into the gas network for 40,000 homes and businesses[13] - NGN's HyDeploy22 project in the UK is supplying hydrogen-blended gas to 668 customers, supporting the net-zero transition[17] - The Sustainability Committee is chaired by the CEO and oversees the development and implementation of sustainability measures[64][65] Operational Performance - UKPN achieved a profit contribution of HKD 1.55 billion (2023: HKD 1.398 billion) in the UK market, with a customer satisfaction rate of 94.3% in 2024[12] - Australia operations contributed HKD 601 million in profit (2023: HKD 558 million), driven by strong growth in energy usage from residential and commercial customers[13] - Victoria Power Networks initiated the first phase of a major power upgrade in Melbourne to meet increased electricity demand due to population growth and EV adoption[13] - Hong Kong Electric's electricity sales increased by 1.8% year-on-year, driven by warmer weather and an extra day in February 2024[15] - Hong Kong Electric launched a new HKD 22 billion development plan (2024-2028), including a new 380 MW gas-fired combined cycle unit and grid modernization projects[15] - The proportion of natural gas in Hong Kong Electric's power generation increased to approximately 70% with the commissioning of the L12 unit in March 2024[16] - Dampier Bunbury Pipelines achieved a compressor station reliability of 99.96%, exceeding the 99% target[13] - EDL is advancing renewable and hybrid energy projects, including upgrades to Limestone and Lorain renewable gas plants and the first phase of the Agnew plant expansion[13] Financial Derivatives and Fair Value - Financial derivative assets increased to HKD 1,771 million as of June 30, 2024, from HKD 1,545 million at the end of 2023[44] - Fair value of financial derivatives classified as Level 2 increased to HKD 1,771 million as of June 30, 2024, from HKD 1,545 million at the end of 2023[46] - Fair value of forward foreign exchange contracts increased to HKD 1,153 million as of June 30, 2024, from HKD 1,060 million at the end of 2023[46] - Fair value of cross-currency swap contracts increased to HKD 589 million as of June 30, 2024, from HKD 443 million at the end of 2023[46] Corporate Governance and Committees - All directors confirmed compliance with the standard code of conduct for securities transactions as of June 30, 2024[58] - Audit Committee reviewed the unaudited consolidated financial statements for the six months ended June 30, 2024[61] - Audit Committee confirmed the effectiveness and adequacy of the risk management and internal control systems as of June 30, 2024[66] - The Audit Committee consists of 3 independent non-executive directors, chaired by Mr. Yip Yuk Keung[61] - The Nomination Committee is responsible for reviewing the board's structure, size, diversity, and talent mix[62] - The Remuneration Committee oversees the company's director and management team compensation policies[63] - The company shares internal audit functions with its associate company, HK Electric Investments Limited[66] - Internal audit functions cover financial, operational, IT reviews, fraud investigations, and compliance audits[66] - The internal audit team includes professionals from accounting, engineering, and IT fields[66] - The company has established a shareholder communication policy to facilitate effective communication through various channels, including annual general meetings, financial results, annual reports, and investor briefings[67] Shareholder and Ownership Structure - As of June 30, 2024, the company's directors and senior executives hold interests in the company's shares, related shares, and bonds, with details recorded in the company's register[68] - Beneficial owners hold 180,000 shares, representing approximately 0.01% of the company's issued shares as of June 30, 2024[69] - Li Ka-shing holds 7,870,000 share stapled units through controlled companies and trusts, representing approximately 0.08% of the issued share stapled units[70] - The Li Ka-shing Foundation holds share stapled units in HK Electric Investments and HK Electric Investments Limited, with Li Ka-shing potentially controlling one-third or more of the voting rights[71] - Li Ka-shing is deemed to have an interest in share stapled units held by TUT1 as trustee of UT1, as he is a potential beneficiary of DT1 and DT2[72] - Major shareholders include Venniton Development Inc. (7.22%), Interman Development Inc. (8.76%), Univest Equity S.A. (13.09%), and Monitor Equities S.A. (13.48%)[74] - Hyford Limited, CK Hutchison Holdings Limited, and CK Hutchison Global Investments Limited each hold 767,499,612 shares, representing 36.01% of the company's issued shares[74] - Hyford Limited holds 767,499,612 shares of the company, representing a significant portion of the issued shares[75] Cash Flow and Capital Commitments - Cash and cash equivalents decreased by HK1,009 million in the first half of 2024, compared to a decrease of HK1,276millioninthesameperiodlastyear[30]−Thecompany′snetcashinflowfromoperatingactivitieswasHK1,276 million in the same period last year[30] - The company's net cash inflow from operating activities was HK179 million in the first half of 2024, down from HK613millioninthesameperiodlastyear[30]−NetcashinflowfrominvestingactivitieswasHK613 million in the same period last year[30] - Net cash inflow from investing activities was HK3,316 million in the first half of 2024, up from HK$2,459 million in the same period last year[30] - Cash flow from operating activities decreased to HKD 179 million in the first half of 2024, compared to HKD 613 million in the same period of 2023[43] - Dividends received from joint ventures increased to HKD 1,386 million in the first half of 2024, up from HKD 1,049 million in the same period of 2023[43] - The company has capital commitments of HKD 1 million for property, plant, and equipment as of June 30, 2024[51] - The company provided guarantees amounting to HKD 68 million for joint ventures as of June 30, 2024[51] Interest Income and Financial Costs - Interest income declined to HKD 454 million in 2024 from HKD 662 million in 2023, reflecting lower returns from financial assets[35] - The company earned interest income of HKD 384 million from loans to joint ventures for the six months ended June 30, 2024[52] - The company earned interest income of HKD 70 million from loans to associates for the six months ended June 30, 2024[53] - Financial costs for the period remained stable at HKD 80 million in 2024, consistent with HKD 76 million in 2023, as the group maintained its debt structure[36] Tax and Other Expenses - Tax expenses for the period increased to HKD 128 million in 2024 compared to HKD 102 million in 2023, mainly due to higher current tax provisions[37] - The company's total employee compensation expenses for the first six months of 2024 were HKD 14 million, up from HKD 13 million in the same period in 2023[25] Joint Ventures and Associates - The group's share of profits from joint ventures and associates increased to HKD 2,725 million in 2024 from HKD 2,387 million in 2023, reflecting improved performance in key markets[34] - Joint venture equity increased to HKD 61,946 million as of June 30, 2024, compared to HKD 61,669 million at the end of 2023[40] - The company received service fees of HKD 22 million from an associate for the six months ended June 30, 2024[53] Market Capitalization and Credit Rating - The company's market capitalization as of June 30, 2024, was HKD 90.039 billion[7] - The company's credit rating was reaffirmed by Standard & Poor's as "A/Stable"[11] Property, Plant, and Equipment - Property, plant, and equipment (PPE) net book value decreased to HKD 17 million in 2024 from HKD 19 million in 2023, primarily due to depreciation charges[39] Share Repurchase and Redemption - No repurchase, sale, or redemption of the company's listed securities occurred in the first half of 2024[77] Consolidated Financial Position of Affiliated Companies - The consolidated financial position of affiliated companies as of June 30, 2024, shows non-current assets of HKD 400,709 million and current assets of HKD 23,630 million[79] - The group's combined attributable interests in affiliated companies amounted to HKD 54.256 billion as of June 30, 2024[79] Revenue and Segment Performance - Revenue from reportable business segments decreased to HKD 454 million in 2024 from HKD 662 million in 2023, primarily due to lower income from investments in the UK and Australia[34] - The UK segment contributed HKD 1,550 million to the group's profit in 2024, up from HKD 1,398 million in 2023, driven by strong performance in joint ventures[34] - The Australia segment's profit decreased to HKD 601 million in 2024 from HKD 558 million in 2023, impacted by higher financial costs[34] Valuation of Non-Listed Equity Securities - The company's non-listed equity securities are valued using a dividend discount model, with a cost of capital of 13.65%. A 0.5% increase or decrease in the cost of capital would result in a change in the group's profit and reserve of approximately HKD 13 million to HKD 14 million[48]