(30 September 2020, Hong Kong) NWS Holdings Limited (“NWS Holdings” or the “Group”; Hong Kong stock code: 659) today announced its annual results for the year ended 30 June 2020 (“FY2020”).
-Group’s AOP: dropped 25% year-on-year to HK$3,514.3 million
- Maintain prevailing sustainable and progressive dividend policy
- Net gearing ratio was stable at 31% (31 December 2019:30%)
- Available liquidity amounted to approximately HK$27.8 billion
Disposal of Non-Core Assets
- Recuperated a total of approximately HK$1.7 billion from the non-core assets disposals in FY2020. The assets disposed mainly include:
Completed Acquisitions
- FTLife Insurance Company Limited (“FTLife Insurance”) and the concession right over Changliu Expressway
- The Group will continue to optimize the business portfolio and seek new growth driver to boost long-term sustainable growth
- Remain cautious in the near term in deploying capital to minimize potential risks
- Maintain its sustainable and progressive dividend policy
- Since the resumption of the Mainland toll fee collection in May 2020, the overall traffic flow and toll revenue have been recovering strongly among the Group’s roads portfolio
- The acquisition of Changliu Expressway has enhanced the Group’s toll road portfolio and strengthened the position in central region.
- Together with the contribution from newly acquired Changliu Expressway, Group’s overall traffic volume of roads portfolio in June 2020 grew approximately 3% year-on-year, and toll fee income almost reaching the same level as the month of December 2019.
- The overall average remaining concession period of the Group’s roads portfolio has been extended to about 11 years as of 30 June 2020.
- Excluding dividend income from BCIA in FY2019 and reduced aircraft trading gains in FY2020, AOP would have increased by 8%.
- Goshawk Aviation Limited’s liquidity position remains strong, with US$1.4 billion cash and undrawn banking facilities as at 30 June 2020.
- The collection rate from airline customers during the first half year of 2020 was 78%.
- In FY2020, new projects have been awarded with a total contract sum of approximately HK$8.8 billion, including the commercial development in Kai Tak Area, the office development at Murray Road, foundation works for public housing development at Long Bin Phase 1 and foundation works in Ko Chiu Road, to name a few.
- As at 30 June 2020, Hip Hing Group’s gross value of contracts on hand amounted to approximately HK$52.6 billion, with a balanced project mix of public and private sectors. The remaining works to be completed amounted to HK$36.1 billion.
- The acquisition of FTLife Insurance was completed on 1 November 2019, contributing eight month AOP of HK$750.4 million to the Group.
- The Annual Premium Equivalent (“APE”) in the first half of 2020 down 12% year-on-year, to HK$807.3 million, outperforming Hong Kong overall industry’s drop of 44%.
- As at 30 June 2020, the solvency ratio was 542%, far higher than the minimum regulatory requirement of 150%.
- FTLife Insurance launched new innovative products, including “Be With You” Personal Accident Plan in May 2020 and “On Your Mind” Insurance Plan with its first-in-market built-in Policy Reverse Mortgage feature in September 2020.
- After the release of COVID-19 lockdown in the Mainland, SUEZ NWS has seen water volumes recovering, whereas hazardous waste underlying volumes has been progressively catching up to last year’s levels
- The average rent of ATL Logistics Centre increased by 4% year-on-year, and the average occupancy rate remained at a high level of 99.7%.
- Hong Kong Convention and Exhibition Centre (“HKCEC”) was severely impacted by the outbreak of COVID-19. As a result, the number of events held at HKCEC plunged 57% to 428 with total patronage dropped 46% to 4.6 million.
- Gleneagles Hospital Hong Kong has a modest growth in revenue, while outpatient visits and inpatient admissions increased by 8% and 2% respectively.
- In September 2020, NWFF has successfully tendered for the five-year ferry service licences for operating three outlying-island ferry routes between Central – Cheung Chau , Central – Mui Wo and Inter Islands. The new licences will be effective from 1 April 2021.
- In August 2020, the Group announced the disposal of 100% of its interests in New World First Bus Services Limited and Citybus Limited at a total consideration of HK$3.2 billion after end of FY2020.
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NWS Holdings Limited (“NWS Holdings”, Hong Kong stock code: 659) is the infrastructure and service flagship of New World Development Company Limited (Hong Kong stock code: 17). It has diverse businesses and investments predominantly in Hong Kong and Mainland China, comprising toll roads, environmental management, port and logistics facilities, rail container terminals, commercial aircraft leasing, facilities management, healthcare services, construction and public transport. Please visit www.nws.com.hk for details.
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