CTF Services Limited (659) investor relations material

Executive summary

• Achieved 7% year-on-year growth in Attributable Operating Profit (AOP) to HK$4,466.2 million, with profit attributable to shareholders up 4% to HK$2,162.0 million, despite macroeconomic headwinds and a stable year focused on portfolio optimization, acquisitions, and divestments.

• Rebranded insurance as Financial Services, expanded CTF Life's offshore insurance hub, and rebranded logistics as CTF Logistics, targeting high-net-worth clients through acquisitions of USMARC, uSMART, and Blackhorn.

• Maintained a healthy financial position with total available liquidity of HK$29.8 billion, net debt of HK$14.7 billion, and a progressive dividend policy for the 22nd consecutive year.

• Advanced ESG initiatives, achieving a 19% reduction in Scope 1 and 2 emissions and 39% of bonds/loans from green financing.

• Issued convertible bonds and bonus shares to enhance public float and liquidity, and disposed of non-core businesses including Free Duty, Hyva Group, and Italian solar farm investments.

Financial highlights

• AOP rose 7% year-on-year to HK$4,466.2 million; excluding Free Duty and Wai Kee, AOP increased 9%.

• Adjusted EBITDA grew 1% to HK$7,316 million; profit attributable to shareholders up 4% to HK$2,162 million.

• Final ordinary dividend of HK$0.35/share, total dividend HK$0.95/share (including a one-off special dividend of HK$0.30/share), with an ordinary dividend yield over 8%.

• Net debt at HK$14.7 billion, net gearing ratio 37%, and cash on hand HK$20.2 billion.

• Average borrowing cost declined to 4.1% year-on-year; fixed-rate debt at 70% of total, RMB debt at 62% of total.

Outlook and guidance

• No plans to expand the road segment; focus on optimizing and enhancing returns from existing assets amid industry volatility.

• Financial Services to build a holistic wealth management platform, leveraging recent acquisitions and digital solutions.

• Logistics segment targets undervalued assets in Greater Bay Area and Yangtze River Delta, with a focus on e-commerce and consumer recovery.

• Construction business aims to gain market share amid industry consolidation, government projects, and technological innovation.

• Facilities management to expand healthcare network and leverage government support for mega events and healthcare services.