Summary by Moomoo AI
China Power Holdings issued a profit warning, announcing a write-down of approximately HK$59 million on EnergyAustralia's customer business reputation for the year ended December 31, 2023. The impairment is a non-cash item and does not affect operating profit, but is expected to significantly reduce total profit for the full year. Despite this, CPC Group has a strong operating financial performance in 2023, with operating profit expected to be around HK$101 billion, up more than 30% from 2022. Total profit is expected to be about HK$125 billion before accounting and goodwill impairment and about HK$66 billion after depreciation. The strong performance of CPC Group came mainly from the contribution of the Hong Kong Regulatory Scheme business, as well as the solid performance of the CPC China business and Apraava Energy. The decline in business reputation of EnergyAustralia customers is due to increased market competition and rising power supply costs. CHP Holdings will release audited annual results by the end of February 2024.