NWS HOLDINGS-新创建集团(00659) - 2023 - 年度业绩

Financial Performance - Overall attributable operating profit decreased by 6% to HKD 4.0972 billion[1] - Net profit attributable to shareholders increased by 28% to HKD 2.0267 billion[1] - Adjusted EBITDA decreased by 3% to HKD 6.5659 billion[6] - The company's total profit attributable to shareholders for the year ended June 30, 2023, was HKD 2,026.7 million, up from HKD 1,586.8 million in the previous year[8] - The company's adjusted EBITDA for the year ended June 30, 2023, was HKD 6,565.9 million, slightly down from HKD 6,792.5 million in the previous year[8] - Revenue from continuing operations increased to HKD 45,213.8 million in 2023, up from HKD 31,138.6 million in 2022, representing a 45.2% growth[47] - Operating profit rose to HKD 3,427.5 million in 2023, compared to HKD 3,132.7 million in 2022, a 9.4% increase[47] - Profit attributable to shareholders from continuing operations grew to HKD 2,026.7 million in 2023, up from HKD 1,284.5 million in 2022, a 57.8% increase[47] - Total comprehensive loss for the year improved to HKD 706.9 million in 2023, down from HKD 1,661.9 million in 2022, a 57.5% improvement[48] - Operating profit from continuing operations increased to HK $43,961.2 million in 2023, up from HK$ 30,818.4 million in 2022[68] - Basic earnings per share from continuing operations increased to HK $21.508 billion in 2023, up from HK$ 12.845 billion in 2022, driven by a profit attributable to shareholders of HK $20.267 billion and a gain of HK$ 1.241 billion from the redemption of perpetual capital securities[72] Dividends and Shareholder Returns - Proposed final dividend of HKD 0.31 per share, with a total annual dividend of HKD 0.61 per share for the 2023 fiscal year[1] - The company declared an interim dividend of HK $0.30 per share and proposed a final dividend of HK$ 0.31 per share, totaling HK $2.3855 billion for 2023, consistent with 2022 levels[73][74] - The company maintained its dividend policy, proposing a final dividend of HK$ 0.31 per share for 2023, consistent with 2022, bringing the total dividend for the year to HK $0.61 per share[82] - The company will suspend the registration of share transfers from November 7 to November 10, 2023, to determine shareholders' rights to attend the annual general meeting and receive the final dividend[83] Debt and Capital Structure - Net debt ratio decreased to 9% (2022: 19%)[1] - Net debt decreased to approximately HKD 4.5 billion as of June 30, 2023 (2022: HKD 10.1 billion)[6] - The company redeemed$ 92.3 million of the $650 million 4.25% senior notes due 2029 and$ 280.9 million of the $1.3 billion 5.75% perpetual capital securities, reducing the outstanding amounts to$ 243.6 million and $1.0191 billion respectively as of June 30, 2023[7] - The company issued the first tranche of Panda Bonds worth RMB 1.5 billion with an annual interest rate of 3.9% and a 3-year term, raising funds to repay offshore HKD-denominated loans[7] - The company's sustainable development-linked credit increased to approximately HKD 6.2 billion as of June 30, 2023, up from HKD 4.5 billion a year earlier[7] - The company's capital structure as of June 30, 2023, was 32% debt and 68% equity, compared to 30% debt and 70% equity in the previous year[35] - The company redeemed$ 92.3 million of preferred notes at 13.5% below par and $280.9 million of perpetual capital securities at 4.5% below par in FY2023[36] - The company issued RMB 1.5 billion in Panda bonds at a 3.9% annual interest rate in May 2023 to repay HKD bank loans[36] - Total debt slightly increased to HKD 23.7969 billion as of June 30, 2023, with 7% due within 12 months, 45% in the second year, 30% in the third to fifth years, and 18% after the fifth year[39] - The company's debt composition shifted to 43% in RMB, 53% in HKD, and 4% in USD as of June 30, 2023[39] - Average borrowing cost for the fiscal year 2023 was 4.1%, up from 2.9% in the previous fiscal year[39] - Celestial Dynasty Limited (CDL) offered to purchase outstanding preferred notes with a total principal amount of USD 335,950,000, of which USD 92,301,000 (approximately 27% of the outstanding principal) was repurchased and redeemed on December 20, 2022[88] - Celestial Miles Limited (CML) offered to purchase 2019 preferred perpetual capital securities with a total principal amount of USD 280,856,000 (approximately 22% of the outstanding principal), which were repurchased and redeemed on December 20, 2022[89] - FTL Capital Limited, an indirect wholly-owned subsidiary, fully redeemed USD 250,000,000 of 4.125% notes due in 2023 on April 25, 2023[89] Business Segment Performance - Operating businesses (roads, construction excluding Wai Kee, insurance, logistics, and facilities management) showed resilience with attributable operating profit growth of 11% for the full year and 25% in the second half of the 2023 fiscal year[4] - Logistics business grew by 25% in the second half of the 2023 fiscal year, driven by new contributions from logistics properties in mainland China[4] - Hong Kong operations contributed 59% of attributable operating profit (2022: 42%), while mainland China contributed 41% (2022: 41%)[6] - The company's road business saw a 3% year-on-year increase in comparable traffic volume and a 4% increase in toll revenue for the full year 2023, despite a challenging first half[10] - The company's road business contributed approximately 90% of its operating profit from key highways, with a 2% year-on-year increase in comparable traffic volume for the full year 2023[11] - The company's construction business reported an 18% year-on-year decline in operating profit to HKD 745.5 million for the year ended June 30, 2023[13] - Hip Hing Group's new contract value for the 2023 fiscal year decreased by 78% year-on-year to HKD 5.2 billion, with the total value of contracts on hand down 9% to approximately HKD 56.5 billion[14] - FT Life's operating profit attributable to shareholders increased by 12% year-on-year to HKD 1.2045 billion in the 2023 fiscal year, with a 14% growth in the second half[15] - FT Life's annualized premium surged 162% year-on-year to HKD 1.841 billion in the second half of the 2023 fiscal year, with full-year annualized premium up 47% to HKD 2.5679 billion[16] - FT Life's new business value increased by 71% year-on-year to HKD 899.5 million in the 2023 fiscal year, driven by a new business value margin of 35%[16] - FT Life's investment portfolio yield (dividend and interest income only) was 3.8% in the 2023 fiscal year, up from 3.6% in the previous year[16] - FT Life's solvency ratio stood at 325% as of June 30, 2023, significantly higher than the regulatory minimum of 150%[18] - Logistics business's operating profit attributable to shareholders grew 27% year-on-year to HKD 752 million in the 2023 fiscal year, supported by new contributions from logistics properties in Chengdu and Wuhan[19] - Asia Container Terminals' occupancy rate remained at 99.8% as of June 30, 2023, with average rental rates increasing by 2% during the fiscal year[20] - CRCT's throughput increased by 17% year-on-year to 5.541 million TEUs in the 2023 fiscal year, with operating profit attributable to shareholders up 28%[21] - Facility management business's attributable operating loss narrowed by 85% year-on-year to HKD 61.9 million in FY2023[22] - The number of events held at the convention center increased by 319% year-on-year to 356 in the second half of FY2023, with visitor numbers surging 410% to approximately 2 million[22] - Duty-free shops recorded attributable operating profit in FY2023, reversing five years of losses since FY2018, with the Hong Kong-Zhuhai-Macau Bridge store's attributable operating profit increasing over sixfold year-on-year[23] - Gleneagles Hospital's inpatient, outpatient, and day surgery volumes increased by 19%, 7%, and 3% year-on-year respectively, contributing to significant revenue growth in FY2023[24] - Gleneagles Hospital's EBITDA grew 759% year-on-year in FY2023, with the EBITDA margin continuing to rise[24] - Strategic investments segment recorded an attributable operating loss of HKD 75.7 million in FY2023, compared to HKD 141.7 million in FY2022, mainly due to reduced fair value losses and expected credit loss provisions[25] - The company's total revenue from continuing operations in 2023 was HKD 45,213.8 million, with the insurance segment contributing HKD 20,988.2 million, the construction segment contributing HKD 19,638.5 million, and the road segment contributing HKD 2,731.8 million[59] - The company's operating profit from continuing operations in 2023 was HKD 2,812.5 million, with the insurance segment contributing HKD 1,204.5 million, the construction segment contributing HKD 727.3 million, and the road segment contributing HKD 784.1 million[61] - The company's revenue from the facilities management segment in 2023 was HKD 1,715.0 million, a significant increase from HKD 794.8 million in 2022[59] - The company's revenue from the logistics segment in 2023 was HKD 139.5 million, a significant increase from HKD 11.8 million in 2022[59] - The company's revenue from the strategic investment segment in 2023 was HKD 0.8 million, compared to no revenue in 2022[59] - The company's total equity from the insurance business is expected to increase with the transition to Hong Kong Financial Reporting Standard 17 (HKFRS 17)[57] - The company's insurance business revenue and operating profit from long-term life insurance contracts in 2023 are expected to decrease compared to the current HKFRS 4 benchmark[56] - The company's financial expenses from continuing operations in 2023 were HKD 938.2 million, with HKD 633.7 million attributed to the head office and HKD 304.5 million recognized in the operating profit of reportable segments[61] - The company's impairment losses in 2023 included HKD 310.7 million from Hyva Global B.V. and HKD 74.1 million from an investment in Wai Kee[61] - The company's net profit attributable to shareholders in 2023 was HKD 2,026.7 million, after deducting HKD 612.0 million attributable to perpetual capital securities holders[61] - Total revenue for 2023 fiscal year reached 31,140.5 million HKD, with external revenue at 31,138.6 million HKD[63] - Operating profit from subsidiaries was 1,709.9 million HKD, with adjustments for headquarters and non-operating items at (1,816.9) million HKD[63] - Property, plant, and equipment depreciation amounted to 257.0 million HKD in 2022, with road, construction, and insurance segments contributing 54.3 million HKD, 51.3 million HKD, and 42.8 million HKD respectively[64] - Intangible franchise rights amortization reached 962.2 million HKD in 2022, primarily from the road segment[64] - Interest income for 2022 was negative 1,851.8 million HKD, with significant contributions from logistics (negative 1,639.0 million HKD) and strategic investments (negative 85.4 million HKD)[64] - Total assets as of June 30, 2022, stood at 148,770.8 million HKD, with insurance segment contributing the largest portion at 78,746.1 million HKD[64] - Investment properties as of June 30, 2023, were valued at 5,875.0 million HKD, with non-insurance and head office segments accounting for 5,167.4 million HKD[65] - Intangible assets totaled 5,863.2 million HKD as of June 30, 2023, with insurance segment holding 5,737.7 million HKD[65] - Cash and bank balances reached 19,255.9 million HKD as of June 30, 2023, with non-insurance and head office segments holding 12,901.3 million HKD[65] - Non-current assets in Mainland China increased to 16,943.3 million HKD in 2023 from 15,669.6 million HKD in 2022[67] - Share of operating profit from joint ventures decreased to 1,088.8 million HKD in 2023 from 1,662.4 million HKD in 2022[66] - Total liabilities as of June 30, 2022, were 94,883.7 million HKD, with insurance segment liabilities accounting for 62,731.8 million HKD[64] - Investment property rental income rose to HK$ 218.5 million in 2023, compared to HK $67.3 million in 2022[68] - Claims and benefits (net of reinsurance) increased to HK$ 18,260.7 million in 2023 from HK $11,436.7 million in 2022[68] - Employee costs (including directors' remuneration and share-based payments) grew to HK$ 2,995.5 million in 2023, up from HK $2,609.8 million in 2022[68] - Other income and gains, net, amounted to HK$ 1,487.4 million in 2023, compared to HK $966.6 million in 2022[69] - Fair value loss on financial assets at fair value through profit or loss was HK$ 847.6 million in 2023, down from HK $1,327.9 million in 2022[69] - Cost of sales increased to HK$ 40,011.1 million in 2023 from HK $27,609.3 million in 2022[70] - Construction costs rose to HK$ 17,132.1 million in 2023, up from HK $12,495.4 million in 2022[70] - Income tax expense for the year was HK$ 757.3 million in 2023, compared to HK $576.2 million in 2022[71] - Hong Kong profits tax increased to HK$ 344.5 million in 2023 from HK $262.6 million in 2022[71] - The company completed the acquisition of a 40% stake in Guangxi Longgui Guiwu Expressway Co., Ltd. for RMB 1.9024 billion, which is accounted for as a joint venture[75] - The company recognized an impairment loss of HK$ 310.7 million from its 39% stake in Hyva Global B.V. due to slow global economic recovery and intense competition in the Chinese market[75] - The company's joint venture Goshawk completed the sale of its commercial aircraft leasing platform to SMBC for approximately $1.6 billion, with the company's share being$ 800 million, resulting in a gain of HK $92.7 million[76] - Trade and other receivables increased to HK$ 2,093.9 million in 2023 from HK $1,723.7 million in 2022, with the majority (HK$ 2,016.3 million) due within three months[77] - Trade and other payables increased significantly to HK $1,270.9 million in 2023 from HK$ 633.8 million in 2022, with the majority (HK $1,241.1 million) due within three months[79] - The company acquired an additional 60% stake in Hunan Daoyue for RMB 523.1 million (HK$ 587.7 million), making it a wholly-owned subsidiary, with the fair value of identifiable assets and liabilities at HK$1,161.6 million[80] Acquisitions and Investments - The company completed acquisitions in the roads and logistics sectors, including a 40% stake in the Guigang-Wuzhou Expressway and a 90% stake in a logistics property in Suzhou[5] - The company acquired a 40% stake in Guiwu Expressway for RMB 1.9024 billion and a 60% stake in Suiyue Expressway for RMB 523.1 million, increasing the average remaining concession period of its road portfolio by 5% to approximately 11 years[12] - The group acquired a 12% stake in Jiangsu Jialida International Logistics for RMB 125 million and a 10% stake in Zhejiang Tangshi Supply Chain Management for RMB 44.4 million in June 2023[21] - The company acquired a 40% stake in Guangxi Longgui Guiwu Expressway Co., Ltd. for RMB 1.9024 billion, completed in November 2022[43] - The company completed the acquisition of six premium logistics properties in Chengdu and Wuhan for a total consideration of RMB 2.29 billion[44] - The company increased its stake in the Shenzhen-H