NWS HOLDINGS(00659)2024-10-14 04:02Financial Performance - The company's revenue for the fiscal year 2024 was HKD 26,421.6 million, a decrease of 2.6% from HKD 27,121.4 million in 2023[10] - Profit attributable to shareholders increased significantly by 44% year-on-year to HKD 2,084.2 million in 2024, compared to HKD 1,446.9 million in 2023[10] - Adjusted EBITDA rose by 23.4% to HKD 7,240.5 million in 2024 from HKD 5,860.8 million in 2023[10] - The operating profit attributable to shareholders grew by 21% to HKD 4,167.4 million in 2024, compared to HKD 3,443.9 million in 2023[10] - Basic earnings per share for fiscal year 2024 rose by 39% to HKD 0.56[25] - The group's attributable operating profit for the fiscal year 2024 increased to HKD 4,167.4 million, up from HKD 3,443.9 million in fiscal year 2023, representing a growth of approximately 21%[32] - Adjusted EBITDA for fiscal year 2024 significantly increased by 24% to HKD 7,240.5 million compared to the previous year[25] Debt and Capital Structure - The company's net debt ratio increased to 35% in 2024 from 8% in 2023, indicating a significant rise in leverage[10] - The group’s net debt increased to approximately HKD 15.1 billion as of June 30, 2024, compared to HKD 4.5 billion as of June 30, 2023, resulting in a net debt-to-equity ratio of 35%[29] - The group announced the acquisition of a leading electromechanical engineering contractor, which will strengthen its capabilities and enhance competitiveness in bidding for design and build projects[73] - The group has applied to issue corporate bonds totaling up to RMB 5 billion to optimize its capital structure and provide a lower-cost funding source[81] - As of June 30, 2024, the group's capital structure consisted of 41% debt and 59% equity, compared to 30% debt and 70% equity a year earlier, indicating a shift towards a more leveraged position[80] Dividends and Shareholder Returns - The company declared a total dividend of HKD 2.44 per share for 2024, which includes a special dividend of HKD 1.79 and a regular dividend of HKD 0.65[10] - The group plans to distribute a final ordinary dividend of HKD 0.35 per share for fiscal year 2024, a 13% increase from HKD 0.31 per share in fiscal year 2023[30] Business Segments Performance - The insurance segment's operating profit surged by 54% to HKD 964.9 million, driven by business growth and a 15% increase in contract service margins to approximately HKD 8.2 billion[46] - The logistics segment reported a 6% increase in operating profit to HKD 722.3 million, while the construction segment saw a 5% decline to HKD 705.0 million[40] - The facilities management business turned around from an operating loss of HKD 61.9 million in fiscal year 2023 to an operating profit of HKD 228.3 million in fiscal year 2024[60] Environmental, Social, and Governance (ESG) Initiatives - The company has made significant progress towards achieving net-zero emissions by 2050, enhancing its commitment to environmental, social, and governance (ESG) initiatives[8] - The group plans to explore sustainable, social, and green finance solutions to further reduce financing costs and enhance collaboration with financial institutions[28] - The company is committed to a low-carbon transition, having fully exited fossil fuel investments by selling its stake in the Chengdu Jintang Power Plant in the 2024 fiscal year[78] Corporate Governance and Board Structure - The company has a robust governance structure with a diverse board composition, ensuring effective oversight and strategic guidance[95][100] - The board consists of 14 members, including 5 executive directors, 3 non-executive directors, and 6 independent non-executive directors, reflecting a balanced tenure and diverse perspectives[153] - The board's composition reflects a commitment to diversity and inclusion, with members from various professional backgrounds[112] - The company has established clear divisions of responsibility between the chairman and co-CEOs to enhance governance[142] Strategic Investments and Market Expansion - The company is actively involved in market expansion and strategic investments, leveraging the experience of its executive team[99] - The company is exploring new strategies for growth, including potential mergers and acquisitions, to enhance its market position[120] - The company aims to enhance its operational efficiency and governance through the expertise of its independent directors[110] Operational Performance and Future Outlook - The average remaining concession period for the road portfolio extended to approximately 12 years, expected to provide sustainable revenue and cash flow in the coming years[44] - The company aims to establish an ecosystem in the logistics business, leveraging high-quality warehouse locations to generate strong recurring cash flow[71] - The company is actively seeking ways to enhance returns from its road business, with expansion projects for the Jingzhu Expressway and Guangzhao Expressway initiated in November 2022 and by the end of 2023, respectively[66] Employee Engagement and Development - The company invests in leadership development to enhance employee skills and foster a sense of belonging, aligning with the core value of unity[148] - The company has implemented training for all employees to enhance awareness and appreciation of diversity and inclusion[163] Community Engagement - The company collaborates with local communities through charitable foundations to create positive social impacts, reflecting its core value of creating shared value[151]