China Everbright (165) H2 2024 earnings summary

Executive summary

• Total assets under management reached HK$117.4 billion with 71 funds, while principal investments managed 50 projects valued at HK$31.9 billion.

• Net loss attributable to shareholders was HK$1.909 billion, a slight improvement from HK$1.923 billion loss last year.

• Fund Management Business posted a loss of HK$723 million, while Principal Investments Business achieved a profit of HK$188 million, reversing last year's loss.

• Operating costs decreased by 9.2% year-over-year, and financial expenses were reduced by over HK$300 million.

• Final dividend of HK$0.05 per share declared, total dividend for the year at HK$0.10 per share.

Financial highlights

• Turnover increased to HK$6.55 billion from HK$6.05 billion year-over-year.

• Income from contracts with customers fell 49% to HK$407 million, mainly due to lower performance and consultancy fees.

• Dividend income rose 30% to HK$1.29 billion, while interest income declined 16% to HK$556 million.

• Loss from investments narrowed to HK$54 million from HK$489 million, aided by higher dividend income and improved realised gains.

• Unrealised investment loss remained high at HK$2.05 billion, but improved slightly from last year.

• Net cash inflow from operating activities was HK$1.69 billion; investing activities generated HK$1.11 billion.

Outlook and guidance

• Management expects improved fundraising conditions in 2025, supported by favorable policies for venture capital and private equity.

• Focus will remain on private equity fund management, cross-border investment, and leveraging technology trends such as AI and new energy.

• Plans to optimize fund-raising, investment, management, and exit strategies, with emphasis on high-quality projects and diversified exit methods.