Sun Hung Kai & Co. Announces 2023 Interim Results
Thursday, 17 August 2023
EQS Newswire / 17/08/2023 / 09:00 UTC+8[FOR IMMEDIATE RELEASE]
17 August 2023, Hong Kong
Sun Hung Kai & Co. Announces 2023 Interim Results
*** ***
Financial Position Remained Solid and Liquid
Steadfast Transformation to Drive Long-term Growth
Sun Hung Kai & Co. Limited (Stock Code: 86.HK) (“SHK & Co.” or the “Company”, together with its subsidiaries, the “Group”) announces its interim results for the period ended 30 June 2023. Despite the challenges caused by mixed macroeconomic conditions in the first half of 2023, the Group maintained a solid balance sheet and improved liquidity across all business segments, while adopting a prudent approach to capital deployment against the uncertain economic backdrop.
Financial Summary
Six months ended
Year ended
(HK$ Million)
Jun 2023
Jun 2022
Change
Dec 2022
Revenue
1,968.3
2,056.1
-4.3%
4,054.1
Pre-tax profit/ (loss)
36.5
(55.1)
N/A
(892.3)
Loss attributable to owners of the Company
(287.5)
(401.2)
-28.3%
(1,534.8)
Basic loss per share (HK cents)
(14.7)
(20.5)
-28.3%
(78.2)
Interim dividend (HK cents)
12.0
12.0
-
14.0^
Book value per share (HK$)
11.0
12.1
-9.1%
11.4
^ Second interim dividend
The Group’s revenue in the first half of 2023 was HK$1,968.3 million (1H2022: HK$2,056.1 million), which mainly consisted of interest income from the Financing business of HK$1,768.0 million. Pre-tax profit was HK$36.5 million, compared to a loss of HK$55.1 million for the same period last year. The improvement was mainly attributable to the smaller write-downs on investment assets during the period compared to those made in 2022. Loss attributable to the owners of the Company for the period was HK$287.5 million, improved significantly from HK$401.2 million for the same period last year. The book value per share was HK$11.0 (1H2022: HK$12.1). The Board declared an interim dividend of HK12 cents per share for the six months ended 30 June 2023, same as 1H2022. During the period, the Company repurchased 770,000 shares for a total net consideration of HK$2.3 million. The Company also repurchased medium-term notes totalling US$28.1 million during the period to continue to improve its capital utilisation efficiency with net gearing ratio decreasing substantially to 37.2% from 43.7% as at 31 December 2022.
The Group’s ability to navigate the turbulent market conditions is attributable to its diversified business mix, conservative balance sheet, and strong liquidity. The financing assets and growing Funds Management platform (Sun Hung Kai Capital Partners Limited) provide the Group with a relatively uncorrelated diversified earnings stream. The quality and diversity of its AUM have mitigated the downside impact from volatile markets to some degree. The diversified global Fund of Hedge Funds, SHK Latitude Alpha Fund, has recorded solid performance against benchmarks, with a range of managers within that portfolio performing extremely well in a volatile public market.
The build out of Family Office Solutions (“FOS”) since the launch in Q42022 is developing well, with AUM of US$45 million (including EAM) as at 30 June 2023. This unit provides customised alternative investment solutions that create long-term value for a select group of private clients, family offices and institutions. Uniquely, it offers aligned, bespoke and discretionary portfolios of alternative investments leveraging the expertise of the in-house teams and the capabilities of the broader Group as well as Sun Hung Kai’s legacy in Wealth Management.
The Investment Management division has continued to leverage the Group’s expertise, network and strong financial position to seek attractive risk-adjusted returns. On the operational front, the division has enhanced its risk management systems and made infrastructure improvements to further institutionalise the Investment Management business.
For the Financing business, the Group has made strategic adjustments by scaling down the Consumer Finance’s unsecured loan business in Mainland China. Instead, it has shifted its focus towards growth opportunities and initiatives in Hong Kong, laying a solid foundation for healthier expansion.
Mr. Lee Seng Huang, the Group Executive Chairman said, “Looking ahead to the second half of 2023, our operating environment is still marked by uncertainties and volatility. We are closely monitoring the pace of Mainland China’s economic recovery, the prospects for government stimulus and the implications for our portfolio companies. Despite the complexities, the Group maintains its conviction on the potential of alternative investments to deliver superior returns over time and remain steadfast in building our infrastructure to support the establishment of a leading alternative investment platform.”
Looking ahead, the Group will continue to take a prudent approach to managing risks and a cautious stance towards growing its portfolio. It will also maintain diversified funding sources and strong liquidity to provide staying power and enable its future growth.
- End -
For more details of the 2023 interim results, please refer to the official announcement.
About Sun Hung Kai & Co. Limited
Sun Hung Kai & Co. Limited (SEHK: 86) (“SHK & Co.”, together with its subsidiaries, the “Group”) is a leader in alternative investing headquartered in Hong Kong. Since its establishment in 1969, the Group has owned and operated market-leading platforms in Financial Services. The Group invests across public markets, alternatives and real estate and has an established track record of generating long-term risk adjusted returns for its shareholders. In recent years, it has extended its strategy to incubate, accelerate and support emerging asset managers in the Asian region. It is also the major shareholder of a leading Consumer Finance firm, United Asia Finance Limited. The Group held about HK$41.4 billion in total assets as at 30 June 2023. For more information about SHK & Co., please visit its corporate website www.shkco.com.
For enquiries, please contact Hill+Knowlton Strategies Asia:
Joanne Lam/ Sharon Cheung
Tel: (852) 2894 6211 / (852) 2894 6284
Email: SHKCo@hkstrategies.com
File: Sun Hung Kai & Co. Announces 2023 Interim Results
17/08/2023 Dissemination of a Financial Press Release, transmitted by EQS News.
The issuer is solely responsible for the content of this announcement.
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