China Everbright posts 16% lower FY2022 earnings of HK$1 billion

CHINA Everbright Water : U9E 0% reported net profit of HK$1 billion (S$171.9 million) for the full year ended December 2022, down 16 per cent from FY2021’s earnings of HK$1.2 billion.

Earnings per share also declined 16 per cent to HK$0.3532, from HK$0.4196 in FY2021.

Its board of directors have proposed a final dividend of HK$0.0514 per share, down from FY2021’s final dividend of HK$0.0683 per share.

If approved at the upcoming annual general meeting, this will bring the total dividend for FY2022 to HK$0.1059 compared to HK$0.1258 the prior year.

Revenue for the year under review fell 3 per cent to HK$6.7 billion from HK$6.9 billion previously. This was mainly due to lower construction service revenue from service concession arrangements, offset in part by higher revenue contributions across all of the group’s other business segments.

Gross profit margin fell three percentage points to 38 per cent from 41 per cent in FY2021, attributed to a rise in operating costs as well as the group’s election to apply a new value-added tax exemption incentive policy during FY2022. 

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These factors resulted in a reduction in the gross profit margin of the group’s operation services for the year.

In all, China Everbright said it is in a healthy financial position – with ready access to diverse long and short-term financing channels, quality assets and sufficient funds with a reasonable gearing ratio. 

The counter was trading flat at S$0.23 as at 1.05 pm on Tuesday, after the results announcement.