REG - CK Infrastructure - Annual Results for 2024
19/03/2025 09:15
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RNS Number : 2961B CK Infrastructure Holdings Limited 19 March 2025
CK Infrastructure Holdings Limited
(Incorporated in Bermuda with limited liability)
(LSE: CKI)
THE CHAIRMAN'S LETTER FOR 2024
2024 was characterised by challenging operating environments across many
sectors and industries around the world. Geopolitical tensions remain
heightened, interest rate pressures persisted, and the world order continued
to be volatile.
QUALITY ASSETS - STRONG 10% OPERATIONAL PROFIT GROWTH
Against the current challenging backdrop, CK Infrastructure Holdings Limited
("CKI", the "Company" or the "Group") has reported good performance, given
most of the Group's businesses are regulated, or are subject to long term
contracts, or have long term loyal customers with very low churn. Profit
contributions from operating businesses reported a strong 10% year-on-year
growth. However, the net profit was impacted by treasury items, which included
higher interest costs and lower exchange gains than in 2023. As a result, for
the 12 months ended 31st December, 2024, CKI recorded net profit of HK$8,115
million, a 1% increase over last year.
In 2024, a number of acquisitions were made. They are Phoenix Energy, a gas
distribution network in Northern Ireland; UK Renewables Energy, a portfolio of
operating onshore wind farms in the United Kingdom; as well as ones made by
member companies, including Powerlink Renewable Assets, a renewable energy
portfolio in the United Kingdom acquired by UK Power Networks Services. These
projects have all started to deliver revenues immediately upon acquisition
completion.
On 19th August, 2024, the Group launched its secondary listing on the London
Stock Exchange. This further enhances the Group's standing as one of the
largest global infrastructure companies, and opens up additional channels for
raising funds in the future when large scale acquisitions arise.
28TH CONSECUTIVE YEAR OF DIVIDEND GROWTH SINCE LISTING IN 1996
The Board of Directors of CKI (the "Board") has recommended a final dividend
of HK$1.86 per share. Together with the interim dividend of HK$0.72 per share,
the total dividend for the year will amount to HK$2.58 per share, representing
a 0.8% increase over the prior year and the 28th consecutive year of dividend
growth since the public listing of the Group in 1996. The proposed dividend
will be paid on Wednesday, 11th June, 2025, subject to approval at the 2025
Annual General Meeting to those shareholders whose names appear on the
Register of Members of the Company at the close of business on Tuesday, 27th
May, 2025. As at the date hereof, the Company does not hold any treasury
shares whether in the Central Clearing and Settlement System, or otherwise.
BUSINESS REVIEW
Despite the challenging macro environment around the globe, CKI's businesses
have in general performed well operationally.
Power Assets
Power Assets continued to generate substantial contribution to CKI. Profit
contribution was HK$2,203 million, representing year-on-year growth of 2%. The
international infrastructure portfolio reported satisfactory operational
growth, supported by sound underlying energy and utility-related businesses,
while HK Electric recorded a slight decrease in profit contribution as there
was a high deferred tax credit in the previous year (2023).
United Kingdom Infrastructure Portfolio
A strong performance was recorded by the United Kingdom portfolio, with a
profit contribution of HK$3,981 million in 2024, a 31% increase over the
previous year (in local currency, profit increased by 27%).
All our regulated utility businesses - UK Power Networks ("UKPN"),
Northumbrian Water ("NWG"), Northern Gas Networks ("NGN") and Wales & West
Utilities ("WWU") - recorded good results. In addition, Phoenix Energy has
provided an immediate profit contribution since joining the Group.
UKPN achieved excellent operating results. The company's standout performance
earned the top spot among utilities in the UK Customer Satisfaction Index, as
well as the Energy Network of the Year title at Utility Week's inaugural Flex
Awards. UK Power Networks Services, the non-regulated arm of UKPN, acquired a
68.7 MW renewable energy portfolio comprising mainly solar assets in the
United Kingdom. The portfolio is backed by long-term offtake agreements and
renewable energy subsidies, and consequently provided immediate and secure
returns upon completion of the transaction.
NGN achieved an average score of 9.26 out of 10 for overall customer
satisfaction in the Ofgem (the Office of Gas and Electricity Markets) governed
gas distribution network customer satisfaction survey. This high score
reflects NGN's accomplishment in delivering high levels of customer
satisfaction.
WWU's dedication to the highest safety standards earned it an 11th consecutive
Gold RoSPA (Royal Society for the Prevention of Accidents) award.
Northumbrian Water has been named one of the World's Most Ethical Companies by
the Ethisphere Institute for the 13th time, the only water company in the
world to achieve this milestone. During the year, Northumbrian Water
introduced the country's first smart sewer project, designed to reduce spills
from storm overflows, as well as an innovative interactive digital Storm
Overflow Map. These initiatives have led to a reduction in internal sewer
flooding and have positioned Northumbrian Water as a leader in the country in
flood prevention.
A satisfactory performance was achieved by UK Rails, with a number of train
fleets continuing to be refurbished and upgraded.
In April 2024, CKI acquired 40% of Phoenix Energy alongside strategic partners
CK Asset and Power Assets, who hold 40% and 20%, respectively. Phoenix Energy
is Northern Ireland's largest natural gas distribution network, covering 78%
of gas connections and serving 48% of the population. It operates under a
supportive regulatory framework.
Australian Infrastructure Portfolio
Profit contribution from the Australian portfolio decreased by 4% over 2023 to
HK$1,784 million (in local currency, the result was a decrease of 3%). The
decline is attributed to higher tax charges as a result of amendments to thin
capitalisation rules introduced in 2024. Taking out this tax impact, profit
contribution increased by 6%.
The operation of the Group's electricity distribution networks - SA Power
Networks ("SAPN"); Victoria Power Networks ("VPN"), which owns CitiPower and
Powercor; and United Energy ("UE") - continued to command strong standings in
the most recent benchmarking report presented by the Australian Energy
Regulator based on multilateral total factor productivity. Amongst the 13
electricity distribution networks in the country, SAPN ranked 1st, CitiPower
2nd, and United Energy 3rd.
In May 2024, SAPN became the first Australian electricity distributor to issue
a certified green bond in the country, establishing a leadership position in
sustainable financing. During the year, an upgrade programme has been
undertaken to enhance network reliability and system security to cater for
future electricity load growth in the Fleurieu Peninsula and Kangaroo Island.
As for CitiPower, the first phase of a major programme to upgrade Melbourne's
underground power network, which powers expanding parts of the city's CBD, has
commenced.
Powercor was granted a transmission license by the Essential Services
Commission, allowing the company to design and build new terminal station
infrastructure enabling Powercor to provide rapid and seamless power
connections for major businesses and clean energy projects.
Australian Gas Infrastructure Group (AGIG) consists of Australian Gas
Networks, Multinet Gas Networks and the Dampier Bunbury Pipeline ("DBP"). In
2024, Australian Gas Networks completed its two-decade infrastructure upgrade
programme in Victoria. Its Melbourne network is now entirely made up of
polyethylene and protected-steel mains, making the network compatible with the
future delivery of 100% hydrogen with only minor incremental investments
needed.
DBP's construction of the third well for the Tubridgi Gas Storage Expansion
project is progressing well. The commissioning date is expected to be in the
first half of 2025.
During the year, Energy Developments ("EDL") reported earnings lower than
those in 2023 due to a significant year-on-year drop in merchant power prices,
as well as the expiration of several contracts.
Infrastructure Portfolio in Continental Europe
In Continental Europe, profit contribution increased by 13% to HK$607 million
(in local currency terms, profit increased by 15%), due to a strong
performance by ista, which reported record organic growth.
In 2024, ista launched an international rebranding campaign, expanded its
footprint in the EV charging space by acquiring Chargemaker GmbH in Germany,
and expanded its international presence by acquiring Alfred Aubort SA in
Switzerland.
The reconstruction of AVR's Energy-from-Waste (EfW) facility at the Rozenburg
unit, which was damaged by a fire in 2023, has made substantial progress and
achieved a partial re-start as planned. All seven incineration lines are now
operational as of January 2025.
Canadian Infrastructure Portfolio
In Canada, profit contribution decreased by 19% to HK$524 million (in local
currency terms, the result was a decrease of 18%), as a result of a
significant drop in profit from Canadian Power as well as the new Excessive
Interest and Financing Expenses Limitation (EIFEL) rule.
In 2024, Reliance Home Comfort continued to perform well and continues to
deliver on its long term growth path strategy. The company was recognised for
the eighth consecutive year as one of Canada's Most Admired Corporate Cultures
by Waterstone Human Capital.
Canadian Power's year-on-year financial performance was lower as a result of
merchant pool prices falling from the prior year's record highs. On the
positive side, Canadian Power reached an agreement to extend the Meridian
Cogeneration Plant power purchase agreement, under which Meridian will provide
electricity to SaskPower and thermal energy to Cenovus until 2049.
Canadian Midstream Assets achieved increased throughput across its assets in
2024. Operational activity and performance were strong.
As global air travel continued its recovery from previous downturn, Park'N Fly
saw solid revenue growth driven by rising demand in many of its key markets.
New Zealand Portfolio
In New Zealand, profit contribution was HK$185 million, a 10% increase
compared to last year (in local currency terms, profit increased by 12%). This
is attributable to Enviro NZ's strong performance.
During the year, Enviro NZ was successful in retaining and winning multiple
commercial contracts, including a major soil disposal project with one of New
Zealand's largest listed companies; a significant construction waste disposal
contract; a three-year hazardous waste disposal project with Air New Zealand;
and a five-month contract with the New Zealand Government's Ministry of Health
to process and recycle expired COVID-19 products.
In November 2024, Wellington Electricity commenced essential infrastructure
services upgrades in eastern Porirua. This project is intended to enhance the
resilience of the electricity network and ensure reliable power to support
potential capacity expansions to accommodate housing growth in the area.
Hong Kong and Mainland China Business
In Hong Kong and Mainland China, profit contribution was HK$132 million, a 13%
increase over the previous year. A higher profit contribution from the Group's
concrete business in Hong Kong was reported.
SOLID FINANCIAL FOUNDATION
CKI's financial platform continued to be solid with cash on hand at HK$8
billion. The net debt to net total capital ratio was a healthy 7.8% as at 31st
December, 2024, and an industry low of 47.0% when taking into account the net
debt in the infrastructure investment portfolio on a look-through basis. This
underlying financial position ensures that the Group has the capability to
weather periods of volatility, while also arming it with ample resources for
pursuing growth opportunities as they arise.
Standard & Poor's has reaffirmed the Group's credit rating of "A/Stable".
PROGRESSING ON THE SUSTAINABLE PATH
Good progress has been made in the areas of sustainability and decarbonisation
across all businesses. The electricity distribution networks in the United
Kingdom and Australia have introduced initiatives such as smart grid
solutions, electric vehicle charging infrastructure, and seamless integration
systems with renewable energy sources. Our gas distribution networks are
actively pursuing projects to produce, store, transmit, and distribute
renewable gases such as hydrogen and biomethane. EDL has established itself as
one of the United States's leading generators of electricity from landfill
gas, while Dutch Enviro Energy is one of the largest renewable district
heating producers in the Netherlands. Enviro NZ, already one of New Zealand's
leading environmental services companies, provides resource recovery and reuse
services, captures and converts methane gas into electricity, as well as
processes biofuel from wood waste. UK Rails's initiative in utilising green
steam to cut freight train emissions and ista's development of a digital data
application that promotes responsible heating practices are progressing well.
Additionally, Canadian Power's Okanagan wind farms, the solar and wind energy
assets in the United Kingdom, along with HK Electric's conversion of coal to
gas-fired generation units, are all contributing to the respective communities
in which they serve to move towards a more sustainable energy future.
The three United Kingdom acquisitions made in 2024 all bear environmental
sustainability elements with two being renewable energy businesses, and one a
proponent of biomethane and hydrogen. In addition, ista acquired an electric
vehicle charging business, further enhancing the Group's sustainability and
decarbonisation initiatives.
The Group will also continue to explore new investment projects in this market
sector as opportunities emerge.
OUTLOOK
Global markets continue to be adversely affected by uncertainties and
geopolitical tensions. The relatively high interest rate and inflationary
landscape continue to persist. While volatility reigns, CKI stands firm as a
secure and steady investment proposition.
Our large scale, comprehensive portfolio, strong financial performance, solid
fundamentals and good track record have further strengthened us as one of the
leading global infrastructure operators. Our businesses are synonymous with
financial and operational resilience, good customer service, and innovative
projects for the betterment of the communities we serve. We are cautiously
optimistic about the prospects of our businesses in 2025 and the years ahead.
Against a challenging macro landscape, CKI and our strategic CK Group
partners, CK Asset and Power Assets, who all command strong financials, are in
a very strong position and have an edge in securing growth opportunities as
they arise.
Fundamental to our growth strategy is financial prudence. We seek to uphold
the optimum balance between stability and growth, as evidenced by our
continued earnings growth in alignment with a comfortable gearing position. We
also do not approach acquisitions with a "must win" mentality.
We are pleased with the satisfying growth which CKI has accomplished,
especially amidst 2024's volatile global environment. I would like to thank
the Board for their ongoing support, our devoted staff for their contributions
and our stakeholders for their continued commitment.
VICTOR T K LI
Chairman
19th March, 2025
FINANCIAL REVIEW
Financial Resources, Treasury Activities and Gearing Ratio
The Group's capital expenditure and investments were funded from cash on hand,
internal cash generation, loans, notes, bonds, share placement and other
project loans.
As at 31st December, 2024, cash and bank deposits on hand amounted to HK$8,105
million and the total borrowings of the Group amounted to HK$19,241 million,
which included Hong Kong dollar notes of HK$260 million and foreign currency
borrowings of HK$18,981 million. Of the total borrowings, 24 per cent were
repayable in 2025 and 76 per cent were repayable between 2026 and 2029. To
refinance certain borrowings repayable in 2025, the Group has obtained and is
finalising loan facilities with certain banks. The Group's financing
activities continue to be well received and fully supported by its bankers.
The Group adopts conservative treasury policies in cash and financial
management. To achieve better risk control and minimise the cost of funds, the
Group's treasury activities are centralised. Cash is generally placed in
short-term deposits mostly denominated in U.S. dollars, Hong Kong dollars,
Australian dollars, New Zealand dollars, British pound, Canadian dollars,
Euros or Renminbi. The Group's liquidity and financing requirements are
reviewed regularly. The Group will continue to maintain a strong capital
structure when considering financing for new investments or maturity of bank
loans.
As at 31st December, 2024, the Group maintained a net debt position with a net
debt to net total capital ratio of 7.8 per cent. This was based on HK$11,136
million of net debt and HK$142,379 million of net total capital, which
represents the total borrowings plus total equity net of cash and bank
deposits. This ratio was 7.7 per cent at the year end of 2023.
The net debt to net total capital ratio would be 47.0 per cent by sharing of
net debt in infrastructure investment portfolio on a look-through basis, which
was based on HK$116,582 million of net debt and HK$247,825 million of net
total capital. This ratio was 46.4 per cent at the year end of 2023.
To minimise currency risk exposure in respect of its investments in other
countries, the Group generally hedges those investments with (i) currency
swaps and (ii) the appropriate level of borrowings denominated in the local
currencies. The Group also entered into certain interest rate swaps to
mitigate interest rate risks. As at 31st December, 2024, the notional amounts
of these derivative instruments amounted to HK$51,014 million.
Charge on Group Assets
As at 31st December, 2024, certain assets were pledged to secure bank
borrowings totalling HK$1,388 million granted to the Group.
Contingent Liabilities
As at 31st December, 2024, the Group was subject to the following contingent
liabilities:
HK$ million
Performance bond indemnities
144
Sub-contractor
warranties
24
Total
168
Employees
The Group, including its subsidiaries but excluding affiliated companies,
employs a total of 2,358 employees. Employees' cost (excluding directors'
emoluments) amounted to HK$1,072 million. The Group ensures that the pay
levels of its employees are competitive and that its employees are rewarded on
a performance related basis within the general framework of the Group's salary
and bonus system.
Preferential subscription of 2,978,000 new shares of the Company was given to
those employees who had subscribed for shares of HK$1.00 each in the Company
at HK$12.65 per share on the flotation of the Company in 1996. The Group does
not have any share option scheme for employees.
Purchase, Sale or Redemption of the Company's Listed Securities
During the year ended 31st December, 2024, neither the Company nor any of its
subsidiaries has purchased, sold or redeemed any of the Company's listed
securities (including sale of treasury share). As at 31st December, 2024, the
Company and its subsidiaries did not hold any treasury shares whether in the
Central Clearing and Settlement System, or otherwise.
Corporate Governance Code
The Board of Directors ("Board") and the management of the Company are
committed to the maintenance of good corporate governance practices and
procedures at the Company and its subsidiaries. The Company acknowledges a
good corporate governance framework is essential for effective management, a
healthy corporate culture, business growth and shareholder value enhancement.
The corporate governance principles of the Company emphasise a quality Board,
sound internal controls, and transparency and accountability to all
shareholders.
The Company has applied the principles and complied with all code provisions
and, where applicable, the recommended best practices of the Corporate
Governance Code ("CG Code") as set out in Part 2 of Appendix C1 to the Rules
Governing the Listing of Securities ("Listing Rules") on The Stock Exchange of
Hong Kong Limited throughout the year ended 31st December, 2024.
The Group adheres to high corporate governance standards and conducts its
businesses with ethics and integrity. The Group's vision, values and strategy
are inextricably linked to its purpose and business operations. In compliance
with the CG Code, the Company has adopted, and regularly reviews its
comprehensive set of corporate governance polices such as Anti-Fraud and
Anti-Bribery Policy, Anti-Money Laundering Policy, Employee Code of Conduct,
Policy on Handling of Confidential Information, Information Disclosure, and
Securities Dealing, and Whistleblowing Policy - Procedures for Reporting
Possible Improprieties. The Group maintains a robust corporate governance
framework and internal control systems to uphold its accountability with
support from internal and external auditors and other professional advisors.
Audit Committee
The Audit Committee comprises four members, all of whom are Independent
Non-executive Directors. The Audit Committee is chaired by Mr. Paul Joseph
Tighe with Mr. Cheong Ying Chew, Henry, Mrs. Sng Sow-mei alias Poon Sow Mei
and Mr. Lan Hong Tsung, David as members.
The Group's annual results for the year ended 31st December, 2024 have been
reviewed by the Audit Committee and audited by the independent auditor of the
Company, Deloitte Touche Tohmatsu.
Remuneration Committee
A majority of the members of the Company's Remuneration Committee are
Independent Non-executive Directors. The Remuneration Committee is chaired by
Mr. Cheong Ying Chew, Henry, an Independent Non-executive Director, with
another Independent Non-executive Director, Mrs. Sng Sow-mei alias Poon Sow
Mei and the Chairman of the Board, Mr. Victor T K Li as members.
Nomination Committee
A majority of the members of the Company's Nomination Committee are
Independent Non-executive Directors. The Nomination Committee is chaired by
Mrs. Kwok Eva Lee, an Independent Non-executive Director, with another
Independent Non-executive Director, Mr. Cheong Ying Chew, Henry and the
Chairman of the Board, Mr. Victor T K Li as members.
Sustainability Committee
The Sustainability Committee comprises three Directors, a majority of whom are
Independent Non-executive Directors, and the Company Secretary. The
Sustainability Committee is chaired by Mr. Ip Tak Chuen, Edmond, Deputy
Chairman. Other members include two Independent Non-executive Directors, Mr.
Lan Hong Tsung, David and Mr. Paul Joseph Tighe, and the Company Secretary,
Ms. Eirene Yeung.
Annual General Meeting
The 2025 Annual General Meeting ("2025 AGM") of the shareholders of the
Company will be held on Wednesday, 21st May, 2025. Details of the arrangements
will be provided in the Company's circular in relation to the 2025 AGM which
will be published and disseminated to the shareholders in accordance with the
Listing Rules in due course.
Closure of Register of Members and Record Dates
The record date for determining the eligibility of shareholders (except
holders of treasury shares, if any) to attend and vote at the 2025 AGM is
Wednesday, 21st May, 2025. The Register of Members of the Company will be
closed from Friday, 16th May, 2025 to Wednesday, 21st May, 2025, both days
inclusive, during which period no transfer of shares will be effected. In
order to determine the entitlement to attend and vote at the 2025 AGM, all
share certificates with completed transfer forms, either overleaf or
separately, must be lodged with (a) the Company's Branch Share Registrar,
Computershare Hong Kong Investor Services Limited at Rooms 1712-1716, 17th
Floor, Hopewell Centre, 183 Queen's Road East, Hong Kong, not later than 4:30
p.m. (Hong Kong time) on Thursday, 15th May, 2025 or (b) the Company's
Principal Share Registrar, Computershare Investor Services (Bermuda) Limited
c/o 13 Castle Street, St Helier, Jersey, JE1 1ES, not later than 3:30 p.m. (UK
time) on Thursday, 15th May, 2025.
The final dividend is payable to shareholders whose names appear on the
Register of Members of the Company at the close of business on Tuesday, 27th
May, 2025, being the record date for determination of entitlement to the final
dividend. In order to qualify for the proposed final dividend, all share
certificates with completed transfer forms, either overleaf or separately,
must be lodged with (a) the Company's Branch Share Registrar, Computershare
Hong Kong Investor Services Limited at Rooms 1712-1716, 17th Floor, Hopewell
Centre, 183 Queen's Road East, Hong Kong, not later than 4:30 p.m. (Hong Kong
time) on Tuesday, 27th May, 2025 or (b) the Company's Principal Share
Registrar, Computershare Investor Services (Bermuda) Limited c/o 13 Castle
Street, St Helier, Jersey, JE1 1ES, not later than 3:30 p.m. (UK time) on
Tuesday, 27th May, 2025.
CONSOLIDATED INCOME STATEMENT
for the year ended 31st December
2023
HK$ million Notes 2024
Turnover 2 38,985 38,582
Sales and interest income
from infrastructure investments 2 4,993 5,990
Other income 3 546 784
Operating costs 4 (4,150) (4,257)
Finance costs (865) (769)
Exchange gain 113 572
Share of results of associates 2,765 2,571
Share of results of joint ventures 5,269 3,687
Profit before taxation 8,671 8,578
Taxation 5 (126) (119)
Profit for the year 6 8,545 8,459
Attributable to:
Shareholders of the Company 8,115 8,027
Owners of perpetual capital securities 438 438
Non-controlling interests (8) (6)
8,545 8,459
Earnings per share 7 HK$3.22 HK$3.19
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31st December
HK$ million Notes 2024 2023
Property, plant and equipment 2,914 3,079
Investment properties 389 408
Interests in associates 38,068 39,240
Interests in joint ventures 102,148 104,093
Other financial assets 1,539 1,542
Derivative financial instruments 1,281 624
Goodwill and intangible assets 2,025 2,299
Deferred tax assets 1 1
Total non-current assets 148,365 151,286
Inventories 113 178
Derivative financial instruments 522 536
Debtors and prepayments 9 732 796
Bank balances and deposits 8,105 13,077
Total current assets 9,472 14,587
Bank and other loans 4,602 9,024
Derivative financial instruments 393 1,072
Creditors, accruals and others 10 6,137 5,902
Taxation 66 101
Total current liabilities 11,198 16,099
Net current liabilities (1,726)
(1,512)
Total assets less current liabilities 146,639
149,774
Bank and other loans 14,639 15,173
Derivative financial instruments 2 465
Deferred tax liabilities 461 505
Other non-current liabilities 294 360
Total non-current liabilities 15,396 16,503
Net assets 131,243 133,271
Representing:
Share capital 2,520 2,520
Reserves 118,760 120,773
Equity attributable to shareholders of the Company 121,280 123,293
Perpetual capital securities 9,885 9,885
Non-controlling interests 78 93
Total equity 131,243 133,271
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. CHANGES IN ACCOUNTING POLICIES
In the current year, the Group has adopted the amendments to IFRS Accounting
Standards ("IFRSs") issued by the International Accounting Standards Board
(the "IASB") that are effective to the Group for accounting period beginning
on 1st January, 2024. The Group has also adopted the amendments to Hong Kong
Financial Reporting Standards ("HKFRSs") consequently issued by the Hong Kong
Institute of Certified Public Accountants ("HKICPA") which have the same
effective dates as those issued by the IASB and are in all material aspects
identical to the pronouncements issued by the IASB. The adoption of both
amendments to IFRSs and HKFRSs has no material impact on the Group's results
and financial position for the current or prior years and does not result in
any significant change in accounting policies of the Group.
2. TURNOVER
Turnover represents net sales of infrastructure materials, interest income
from loans granted to associates and joint ventures, sales of waste management
services and share of turnover of joint ventures. Sales of infrastructure
materials and waste management services were substantially recognised at a
point in time.
Turnover comprises both sales and interest income from infrastructure
investments and share of turnover of joint ventures as follows:
HK$ million 2024 2023
Sales of infrastructure materials 1,573 1,741
Interest income from loans granted to associates 98 264
Interest income from loans granted to joint ventures 1,325 1,993
Sales of waste management services 1,997 1,992
Sales and interest income from infrastructure investments 4,993 5,990
Share of turnover of joint ventures 33,992 32,592
Turnover 38,985 38,582
3. OTHER INCOME
Other income includes the following:
HK$ 2024 2023
million
Bank interest income 467 616
4. OPERATING COSTS
Operating costs include the following:
HK$ million 2024 2023
Depreciation of property, plant and equipment 301 295
Amortisation of intangible assets 18 30
Cost of inventories sold 1,477 1,628
Cost of services provided 858 885
5. TAXATION
Taxation is provided for at the applicable tax rates on the estimated
assessable profits less available tax losses. Deferred taxation is provided on
temporary differences under the liability method using tax rates applicable to
the Group's operations in different countries.
HK$ million 2024 2023
Current taxation - Hong Kong 2 1
Current taxation - outside Hong Kong 101 92
Deferred taxation 23 26
Total 126 119
6. PROFIT FOR THE YEAR AND SEGMENT INFORMATION
for the year ended 31st December
Segment profit attributable to shareholders of the Company represents the
profit earned by each segment after the profit attributable to owners of
perpetual capital securities and non-controlling interests without allocation
of gains or losses from treasury activities, corporate overheads and other
expenses of the Group's head office.
7. EARNINGS PER SHARE
The calculation of earnings per share is based on the profit attributable to
shareholders of the Company of HK$8,115 million (2023: HK$8,027 million) and
on 2,519,610,945 shares (2023: 2,519,610,945 shares) in issue during the year.
8. DIVIDENDS
(a) HK$ million 2024 2023
1,814 1,789
Interim dividend paid of HK$0.72 per share
(2023: HK$0.71 per share)
Proposed final dividend of HK$1.86 per share
(2023: HK$1.85 per share) 4,687 4,661
Total 6,501 6,450
(b) HK$ million 2024 2023
Final dividend in respect of the previous financial
year, approved and paid during the year, of
HK$1.85 per share (2023: HK$1.83 per share) 4,661 4,611
9. DEBTORS AND PREPAYMENTS
Included in debtors and prepayments are trade debtors of HK$250 million (2023:
HK$363 million) and their aging analysis is as follows:
HK$ million 2024 2023
Less than 1 month 189 199
1 to 3 months 42 102
More than 3 months but less than 12 months 20 54
More than 12 months 8 18
Gross total 259 373
Loss allowance (9) (10)
Total after allowance 250 363
Trade with customers is carried out largely on credit, except for new
customers, residential customers of waste management services and customers
with unsatisfactory payment records, where payment in advance is normally
required. Invoices are normally due within 1 month of issuance, except for
certain well-established customers, where the terms are extended to 2 months,
and certain customers with disputed items, where the terms are negotiated
individually. Each customer has a maximum credit limit, which was granted
and approved by senior management in accordance with the laid-down credit
review policy and procedures.
10. CREDITORS, ACCRUALS AND OTHERS
Included in creditors, accruals and others are trade creditors of HK$236
million (2023: HK$329 million) and their aging analysis is as follows:
HK$ million 2024 2023
132 211
Current
1 month 56 42
2 to 3 months 15 39
Over 3 months 33 37
Total 236 329
11. REVIEW OF ANNUAL RESULTS
The annual results have been reviewed by the Audit Committee.
12. SCOPE OF WORK OF MESSRS. DELOITTE TOUCHE TOHMATSU
The figures in respect of the Group's consolidated statement of financial
position, consolidated income statement and the related notes thereto for the
year ended 31st December, 2024 as set out in the preliminary announcement have
been agreed by the Group's auditor, Messrs. Deloitte Touche Tohmatsu, to the
amounts set out in the Group's audited consolidated financial statements for
the year as approved by the Board of Directors on 19th March, 2025. The work
performed by Messrs. Deloitte Touche Tohmatsu in this respect did not
constitute an assurance engagement and consequently no opinion or assurance
conclusion has been expressed by Messrs. Deloitte Touche Tohmatsu on the
preliminary announcement.
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. END FR JLMLTMTMBMAARecent news on CK Infrastructure Holdings
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