CK ASSET(01113)2024-03-21 08:37Financial Performance - The group's profit attributable to shareholders from continuing operations for the year ended December 31, 2023, was HKD 17.34 billion, a decrease of 10.2% compared to HKD 19.63 billion in 2022[3]. - The earnings per share from continuing operations for 2023 was HKD 4.86, down from HKD 5.41 in 2022, reflecting a decline of 10.2%[2]. - The total annual dividend for 2023 is proposed at HKD 2.05 per share, a decrease of 10.1% from HKD 2.28 per share in 2022[4]. - Group revenue from continuing operations for 2023 was HKD 47,243 million, a decrease of 16.2% from HKD 56,341 million in 2022[56]. - The profit attributable to shareholders from continuing operations was HKD 17,340 million, down 11.7% from HKD 19,627 million in 2022[56]. - The company reported a total comprehensive income of HKD 16,455 million for 2023, compared to HKD 18,805 million in 2022, reflecting a decrease of 12.5%[57]. - The group's property sales revenue decreased significantly to HKD 13,146 million in 2023 from HKD 25,706 million in 2022, representing a decline of 48.7%[59]. - The operating costs related to properties and associated costs were reduced to HKD 9,736 million in 2023 from HKD 15,905 million in 2022, a decrease of 38.5%[56]. - The company declared an interim dividend of HKD 1,527 million for 2023, slightly down from HKD 1,559 million in 2022[56]. - The group's profit attributable to shareholders for 2023 was HKD 17,340 million, a decrease of 20.5% from HKD 21,683 million in 2022[61]. Property and Investment - The group completed the acquisition of Civitas Social Housing PLC, expanding its investment property portfolio[5]. - The overall residential property transaction volume decreased due to high interest rates and a weak economy, impacting sales revenue compared to 2022[6]. - Rental income from properties remained stable compared to 2022, despite improvements in the retail leasing market[7]. - The company has approximately 74 million square feet of developable land reserves, with 7 million square feet in Hong Kong, 63 million square feet in mainland China, and 4 million square feet overseas[22]. - The company has signed contracts for property sales totaling HKD 19,415 million, with expected recognition in 2024 and beyond[22]. - The company’s investment property portfolio includes approximately 22 million square feet, which will contribute to rental income[26]. - The company’s residential project pre-sales have largely been completed, including several developments in Hong Kong and mainland China[21]. - The fair value of investment properties increased by HKD 32.38 billion in 2023, compared to HKD 9.67 billion in 2022, including a HKD 22.05 billion increase from the ongoing redevelopment of the Cheung Kong Center Phase II[27]. - The company terminated the sale agreement for Bristow Investments Limited, resulting in the forfeiture of a deposit of HKD 2,076,186,600, which has been recognized as income[21]. Revenue and Growth - The hotel and serviced apartment business saw significant revenue growth in 2023, benefiting from an increase in tourist arrivals and higher average room rates[8]. - Greene King's total sales revenue and earnings increased in 2023, despite a challenging operating environment[9]. - Infrastructure and utility assets generated increased revenue in 2023, with contributions from CK William Group, Reliance Home Comfort, and ista totaling HKD 14 billion, HKD 14.56 billion, and HKD 12.91 billion respectively[10]. - The hotel and serviced suite business generated revenue of HKD 4.83 billion in 2023, up from HKD 3.28 billion in 2022, representing an increase of HKD 1.155 billion[28]. - The English pub business reported revenue of HKD 23.22 billion in 2023, an increase of HKD 2.78 billion from HKD 20.94 billion in 2022[32]. - The group's share of joint venture income was HKD 23.52 billion in 2023, compared to HKD 22.89 billion in 2022[38]. - Total revenue for 2023 reached HKD 7,773 million, an increase of 3.8% compared to HKD 7,486 million in 2022[39]. Financial Stability and Debt - The group achieved a net debt to total capital ratio of approximately 3% as of the year-end closing date[13]. - The group received credit ratings of "A/stable" from S&P and "A2 stable" from Moody's, reflecting its financial stability[13]. - Total bank and other borrowings amounted to HKD 54.9 billion, an increase of HKD 6.3 billion from the previous year[41]. - The net debt to total equity ratio is approximately 3% as of the year-end[41]. - The group has cash and undrawn bank loan facilities, ensuring strong liquidity to meet contractual and working capital needs[42]. - The group has pledged properties worth HKD 94.2 billion and HKD 259.78 billion as collateral for bank borrowings[43]. Corporate Governance and Sustainability - The company has adopted and regularly reviews comprehensive corporate governance policies, including anti-fraud and anti-bribery policies, to maintain high standards of corporate governance and ethical conduct[49]. - The Audit Committee consists of 7 members, all of whom are independent non-executive directors, and has reviewed the annual performance for the year ending December 31, 2023[50]. - The company emphasizes transparency and accountability to all shareholders as part of its corporate governance principles[49]. - The company has a dedicated Remuneration Committee primarily composed of independent non-executive directors to oversee compensation matters[51]. - The Nomination Committee is chaired by an independent non-executive director, ensuring a focus on governance and board composition[52]. - The Sustainability Committee includes independent non-executive directors and focuses on sustainable development initiatives[53]. - The group is committed to achieving net-zero carbon emissions by setting science-based targets and submitting short-term goals for verification[11]. - The group is actively seeking investment opportunities aligned with the United Nations Sustainable Development Goals to enhance its contributions to economic, social, and environmental development[11]. - The group is evaluating regenerative soil management projects to contribute to carbon neutrality[11]. Future Outlook - The group plans to complete several major property projects in 2024, including a total floor area of 2,814,114 square feet in Beijing and 1,648,685 square feet in Shanghai[16]. - The group will continue to maintain a low capital debt ratio and ample liquidity, positioning itself advantageously in a high-interest-rate environment[12]. - The group aims to leverage its resilient financial position to capitalize on global market opportunities and continue enhancing shareholder value[12]. - The company will hold its 2024 Annual General Meeting on May 23, 2024, with details to be published in accordance with listing rules[54]. - The company will suspend share transfer registration from May 20, 2024, to May 23, 2024, to determine the rights of shareholders attending the Annual General Meeting[55]. - The final dividend will be distributed to shareholders registered by the end of business on May 29, 2024[55].