china everbright limited announces 2022 interim results
highlights of 2022 interim results
- loss attributable to shareholders of the company was hk$2.65 billion; the net unrealised loss was primarily due to the lower valuation of investment projects.
- fund raising continued and two new funds were set up, total aum amounted to hk$197.3 billion.
- diversified exit with 25 projects fully/partially exited, achieving a cash return of approximately hk$3.51 billion
- strong liquidity with cash and cash equivalents of approximately hk$10.354 billion
- maintained dividend with interim dividend: hk$0.15 per share.
(25 august 2022) china everbright limited (“cel” or “the group”, stock code: 165.hk) today announced its interim results for the six months ended 30 june 2022 (“the reporting period”).
in the first half of 2022, the global capital market oscillated downward, with both domestic and international markets fluctuating concurrently, equities and bond markets declining, and primary market projects seeing negative valuation pressure. consequently, the market value of assets held by cel fluctuated or declined throughout the reporting period, resulting in the loss attributable to shareholders of the company of hk$2.65 billion.
during the reporting period, cel exited projects in various ways to withdraw funds, with cash and cash equivalents of approximately hk$10.354 billion, and roughly hk$6.823 billion in lines of credit (“loc”). liquidity stayed healthy and the overall financial, business and operating conditions remained sound.
during the reporting period, cel maintained its market leadership in fund management, continued to promote fund raising and established two new funds. due to exchange rate conversion, the total aum of the funds was around hk$197.3 billion, representing a slight decrease. there were 86 managed fund products, including primary market investment, secondary market investment, and fund of funds (“fof”).
the board declared a 2022 interim dividend of hk$0.15 per share. (2021 interim dividend: hk$0.28 per share)
2022 interim management highlights
1. fund management business
in the first half of 2022, cel carried out it fund management business in a steady and orderly manner, striving to overcome the impact of the pandemic on fundraising, project research and other work and seizing the window of opportunity at each stage of “fundraising, investment, management and exit”, while also adopting the strategy of “precise investment and stable exit” to promote high-quality business development.
the fundraising work moved forward despite the difficulties, and newly established funds were favoured by the market. in the first half of 2022, cel launched fund products in areas such as advanced manufacturing and green energy, which were recognised and supported by local governments, financial holding groups and other lps. during the period, two new funds were established, several funds entered the final run-up stage, with aiib committing to invest us$100 million in the second phase of the overseas infrastructure investments fund.
practicing the development of science and technology investment, and actively deploying state-supported industries. cel’s funds focus on the fields of technology, environmental protection and advanced manufacturing, and have invested in green energy enterprises such as cnnp rich energy, poweroak and igen tech, as well as new financial technology enterprises such as denglin technology, smartbi and luxvisions innovation. the cel hong kong innovation centre accelerated the recruitment of settled enterprises, approached more than 20 technology innovation companies, and supported the development of hong kong’s technology innovations.
adopting a diversified exit strategy and increasing cash withdrawal. through the combination of transfer and ipo exit, cel’s funds achieved good cash return in the first half of the year. among them, the norwegian public transport project was withdrawn overseas in the form of transfer; four investment projects, recbio, credo, asr microelectronics and isoftstone were listed on the hong kong stock exchange, nasdaq, shanghai science and technology innovation board and chinext.
2. principal investments business
cel’s principal investments business actively seizes various investment opportunities that bring long-term returns by continuously fostering key investee companies, financial investments and cornerstone investments, while taking into account support for fund development and flexible investment. as at 30 june 2022, the total asset value of the principal investments business was approximately hk$38.5 billion.
in terms of key investee companies, calc strengthened the layout of the entire aircraft industry chain and enhanced the professionalism of all aspects of the entire aircraft leasing life cycle. as at 30 june 2022, calc had a fleet of 163 aircraft, serving 38 airlines.
terminus made substantial breakthroughs in aiot research, and a large number of the research results were included in and published by cvpr, a top conference in the field of artificial intelligence. terminus also launched digital intelligence cooperation with chongqing, tianjin, deyang, lincang and other local governments.
everbright senior healthcare implemented social responsibility through development. with 33,000 beds under management, and 176 elderly care institutions and community service sites, it ranked second among china’s elderly care institutions (ranked by guandian index academy (guandian.cn)).
3. rich resource reserves
optimising capital structure. in the first half of 2022, cel successfully issued rmb3 billion medium-term notes in china’s inter-bank market, which was the largest single issuance of panda bonds by a non-financial enterprise in china’s domestic bond market during the year, and the financing rate was further lowered.
increasing liquidity reserves. as at 30 june 2022, cel had book cash of approximately hk$10.354 billion and unutilised loc of approximately hk$6.823 billion, which provide not only a strong ability to resist risks, but also capture market opportunities well.
strengthening regional development and increasing the layout of lower tier markets. cel had an in-depth layout in beijing-tianjin-hebei, yangtze river delta, guangdong-hong kong-macao greater bay area, and active participation in the construction of “chengdu-chongqing” economic circle, hainan free trade port and xiongan new area.
4. comprehensive improvement of environmental, social and governance
as a market-leading cross-border investment and asset management company, cel has long insisted on integrating environmental, social and governance (esg) responsibilities into its operations and management, adhered to laws and regulations, standardised operations, including green operations, and actively responded to changes in the external environment, ensuring the healthy and sustainable development of the group while safeguarding its long-term interests and those of its shareholders. during the reporting period, cel’s msci esg rating was upgraded from b to bb, and the score rose to 4.6 points.
looking to the second half of 2022, the capital market is expected to steadily improve as the new policies begin to take hold and the economy beings to stabilise and rebound. cel will adhere to the strategy of “stability, progress and excellence”, while focusing on strengthened fundraising, prudent investment, optimised management and diversified exits. through a series of proactive measures, we will spare no effort to promote quality development of the group’s business, delivering long-term growth and returns for shareholders and investors, and establishing a leading chinese cross-border investment and asset management company.
mr. zhang mingao, executive director and president of china everbright limited, said: “in the first half of 2022, the market turbulence posed tremendous pressure and challenges to cel, but the group’s business foundation and liquidity remained solid. with an impeccable investment track record, cel is a professional cross-border investment and asset management company, possessing investment prowess that transcends business cycles. over the past two decades, while experiencing multiple rounds of global economic volatility and major pivots of macro trends, cel’s capital allocation has retained steady returns. by taking the initiative for development, cel has repeatedly turned crises into opportunities. cel is full of confidence in china’s economic prospects and the group’s future development. it will continue to adhere to the national dual-circulation development strategy, upholding a business model that combines domestic and overseas operations, taking advantage of its cross-border and diversified investment portfolios, and sticking to the group’s core value that embraces investment in growth stocks. the group aims to steadily advance high-quality development, bringing long-term sustainable growth returns to shareholders and investors.”
