Hong Kong, April 2, 2024/Mainest/ -- Dongjiang water supplier Guangdong Hai Investment (0270.HK) recently released its 2023 annual results with a combined revenue of HK$242 billion, up 4.3% year-on-year. The final dividend of HK$12.33 cents per share and 31.04 cents a full year. In addition to sufficient funds for business expansion and operations, it also provides shareholders with stable and sustainable returns for the long-term health of the company.
Continuous expansion of core water resources business
GUANGDONG HAI INVESTMENT HAS A DIVERSE BUSINESS SEGMENT, AND THE CENTRAL EAST JIANG WATER BUSINESS PROVIDES THE COMPANY WITH A STABLE SOURCE OF INCOME. The total water supply to Hong Kong, Shenzhen and Dongguan amounted to 22.09 billion tonnes for the year, generating revenue of HK$63.83 billion. At the end of last year, the Hong Kong Government and the Guangdong Provincial Government re-signed the Hong Kong Water Supply Agreement for 2024 to 2026. According to the agreement, for the three years 2024, 2025 and 2026, the annual base water prices of HK$51.36 billion, HK$52.59 billion and HK$53.85 billion respectively, it is seen that Guangdong's investment income in the future of Dongjiang water business will continue to rise steadily.
Other water resources projects other than Dongjiang Water also performed well. The profit before tax for other water resources projects (excluding net foreign exchange differences and net finance charges) totalled HK$18.54 million, up 1.1% year-on-year. As of 31 December 2023, the water supply capacity of the Group's subsidiaries and associates and the sewage treatment capacity of the sewage treatment plant were 10,486,800 tonnes per day and 2,054,400 tonnes per day respectively; the water supply capacity of the Group's subsidiaries under construction and the waste water treatment capacity of the sewage treatment plant is divided by the Group's subsidiaries Not 1,437,000 tons per day and 50,000 tons per day.
Hotel operating and management business loss to profit
Benefiting from positive factors such as the end of the pandemic and customs clearance, the overall hotel industry has recovered significantly and has benefited from Guangdong's investment. The Group jointly manages 20 hotels, 3 of which are located in Hong Kong and 17 in the Mainland of China. Overall operating revenue from its hotel operations and management business rose by 67.8% year-on-year to HK$6.49 billion, with a profit and loss. The average rental rate of property investment and development business remains high, with Guangzhou Tianhe City Shopping Center and Tianjin Tianhe Town Shopping Center at over 95%. In addition, the overall performance of the department store retail business was strong; the power business was affected by increased electricity and falling coal prices. Operating efficiency increased year-on-year; traffic flow and economic efficiency of the road bridge business continued to improve overall operating income.
In 2024, the Group will adopt a development strategy of “steady progress and increase efficiency” to maintain stable development of core business, ensuring that risks are manageable and continue to create long-term value for stakeholders. At the same time, the Group will focus its resources on expanding its water business to a high value-added business, steadily promoting property sales, hotel operations and management businesses to capture business opportunities after the pandemic, expand its retail business to leverage its brand advantages by actively seeking new market opportunities, and opening multiple channels in the power business The flow reduction and road bridge business continues to achieve good traffic growth and actively seize the potential development opportunities of the “Cantonese Hong Kong and Macau Greater Bay Area Development Plan” to provide a long-term impetus for the company's high-quality development and to enhance the company's operating performance and overall value.
Overwhelmed by shares of parent company Guangdong Sea Holdings5000Global Growth
At the end of March, Guangdong Investment acquired its parent company, Guangdong Hai Holdings, at an average price of approximately $3.51 million per share, increasing its shareholding ratio from 56.49% to 56.71% and involving more than HK$5,000 million. Guangdong Hai Investment means that the increase in holdings shows that Cantonese Hai Holdings is confident in the company's future development prospects, recognizes its long-term investment value and gives full support to the long-term development of the company. Cantonghai Holdings will continue to increase the company's shares in due course.