POWER ASSETS(00006)2024-04-19 08:43Financial Performance - The audited profit attributable to shareholders for 2023 was HKD 6,003 million, a 6% increase from HKD 5,649 million in 2022[11]. - Earnings per share for 2023 was HKD 2.82, compared to HKD 2.65 in 2022[4]. - Total equity increased to HKD 88,752 million in 2023 from HKD 86,857 million in 2022[4]. - The group maintained a cash balance of HKD 4,201 million, down from HKD 5,894 million in the previous year[4]. - The company plans to distribute a final dividend of HKD 2.04 per share, maintaining the same level as in 2022[12]. - The group maintains a strong financial foundation, with a net cash position supporting an S&P A credit rating[20]. - The group has a strong capital position, with a long-term credit rating of "A" from S&P since 2018, allowing for flexible operations and timely investment opportunities[25]. - The group’s equity in joint ventures and associates at year-end was HKD 88.697 billion, up from HKD 84.636 billion in 2022[187]. - The total unsecured bank loans at year-end amounted to HKD 3.097 billion, a decrease from HKD 3.236 billion in 2022[187]. - Cash and bank deposits at year-end were HKD 4.210 billion, down from HKD 5.894 billion in 2022[187]. - The net cash level as of December 31, 2023, was HKD 1.114 billion, compared to HKD 2.658 billion in 2022[187]. Operational Highlights - The group operates a network of 503,100 kilometers for electricity, gas, and oil pipelines, serving approximately 19.8 million residential and commercial customers globally[2]. - The group has invested in approximately 9,700 megawatts of power generation facilities[2]. - The company operates global investment projects across four continents in energy production and distribution, serving millions of users[22]. - The company focuses on investing in renewable energy, waste-to-energy, and gas infrastructure to achieve long-term profit growth[22]. - The company is modernizing its power grid to accommodate the increasing demand for distributed renewable energy and electric vehicle charging[23]. - The company is replacing 164 kilometers of cast iron and unprotected steel pipelines with polyethylene pipelines to enhance safety and customer service[27]. - The company is constructing Australia's first city-wide renewable hydrogen blending energy project, benefiting nearly 800 households and businesses[27]. Sustainability and Environmental Initiatives - The company is focused on transitioning to green energy, which is critical for achieving global carbon neutrality goals[2]. - The group is committed to achieving net-zero carbon emissions by 2050, with all operating companies in OECD member countries making this commitment[19]. - The group is actively exploring greener fuel alternatives, such as hydrogen and biofuels, with pilot programs supported by local governments in the UK and Australia[19]. - The company is actively participating in climate change initiatives, supporting government decarbonization goals through strategic investments in smart meters and emission-reducing technologies[23]. - The company has invested in a 240 MW solar power station, employing over 30 local indigenous workers as part of its community engagement program[26]. - The group has implemented a long-term plan to address climate change risks, aiming for net-zero emissions by 2050, with specific measures to reduce greenhouse gas emissions through its power generation business[178]. - The group has completed a TCFD scenario analysis in 2023 to identify and assess physical and transition risks related to climate change, with findings detailed in the 2023 sustainability report[178]. Regional Performance - The UK business contributed HKD 2.88 billion in profit for 2023, up from HKD 2.517 billion in 2022, despite inflationary pressures[14]. - Australian operations generated HKD 1.265 billion in profit, down from HKD 1.342 billion in the previous year, maintaining stable performance despite currency fluctuations[16]. - The Canadian business provided stable profit contributions, focusing on long-term contracts for reliable operations[17]. - UK Power Networks (UKPN) serves 14 million residential and commercial customers in the UK, maintaining strong performance under regulatory plans and long-term purchase contracts[31]. - UKPN delivered 71.459 billion kilowatt-hours of electricity, accounting for 28% of the UK's total distribution, with peak demand reaching 13,466 megawatts[33]. - The group has expanded its operations in Australia since 2000, now serving approximately 5 million residential and commercial customers in renewable energy, generation, and distribution sectors[41]. Corporate Governance and Management - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange's listing rules throughout the fiscal year ending December 31, 2023[85]. - The board of directors is dedicated to maintaining high levels of corporate governance to attract investors and protect shareholder interests[85]. - The company has established an Environmental, Social, and Governance (ESG) committee to strengthen sustainability efforts in response to changing carbon emission regulations in Canada[65]. - The board currently consists of 5 executive directors, 2 non-executive directors, and 5 independent non-executive directors, meeting the requirement that independent non-executive directors account for at least one-third of the total board members[89]. - The company has established procedures for directors to seek independent professional advice at the company's expense when necessary[90]. - The board's performance evaluation for 2023 was conducted, and the results were reviewed in March 2024, indicating that the board and its committees are operating effectively[96]. Risk Management - The group has established an enterprise risk management framework to effectively identify, assess, mitigate, and monitor key business, financial, operational, and compliance risks[169]. - The board and audit committee are responsible for overseeing the risk management and internal control systems, ensuring alignment with strategic and business objectives[171]. - The group’s risk management procedures involve regular reviews and updates to the risk register, ensuring that significant risks are monitored and managed effectively[176]. - The group actively monitors changes in government policies and regulations to mitigate operational and capital expenditure risks[184]. - The group conducts rigorous due diligence and detailed analysis before any mergers or acquisitions to manage associated risks[182]. Shareholder Engagement - The company has established a shareholder communication policy to facilitate effective communication with shareholders and investors[151]. - The annual general meeting was held in a hybrid format, allowing shareholders to participate either in person or online[152]. - The company declared a final dividend of HKD 2.04 per share, receiving 99.7122% approval at the annual general meeting[152]. - Major shareholders include Hyford Limited, which holds 767,499,612 shares, representing 36.01% of the total equity[158]. - The company encourages shareholders to access communications via its website to support environmental sustainability[155].