Summary of Conference Call on Port Assets Industry Overview - The conference call discusses the impact of Li Ka-shing's CK Hutchison Group selling its port assets, which has garnered significant market attention. The deal, valued at $22.81 billion, involves the sale of core global port operations across 23 countries, including key ports at both ends of the Panama Canal, which are strategically important for global shipping networks [2][3]. Key Points and Arguments - **CK Hutchison Group's Sale**: The sale includes 43 ports and associated smart terminal management systems and global logistics networks, highlighting the strategic importance of these assets for trade, especially for China, which is the second-largest customer of the Panama Canal [2]. - **China Merchants Port's Overseas Investments**: China Merchants Port has invested in nine overseas port companies along the Belt and Road Initiative, with significant assets in Sri Lanka, Togo, Indonesia, and Brazil. In 2024, the container throughput for China Merchants Group's overseas terminals is projected to reach 37.363 million TEUs, a year-on-year increase of 9.7% [2][4]. - **COSCO Shipping Ports' Global Presence**: COSCO Shipping Ports controls 15 terminals globally, with significant operations in Europe, the Mediterranean, the Middle East, Southeast Asia, South America, and Africa. The Piraeus F4 terminal in Greece is noted as the largest container terminal in Greece and a major transshipment hub in the Eastern Mediterranean. In the first half of 2024, overseas business revenue accounted for 50.3% of COSCO's total revenue [2][5]. - **Recent Acquisitions**: In March 2025, China Merchants Group acquired a 51% stake in Indonesia's NPH Company for $6.122 million, which operates the largest container terminals in Jakarta. Additionally, a 70% stake in Brazil's Vistabay was acquired, which handles 560,000 barrels of crude oil daily [2][6]. - **Valuation and Dividend Potential**: The port sector is currently undervalued but shows high dividend potential. China Merchants is expected to have a dividend yield of 3.1% in 2024, while Shanghai Port is projected at 3.3%. H-shares for China Merchants and COSCO are expected to yield 5% and 5.8%, respectively. As capital expenditures decrease, companies are likely to increase their dividend payouts [2][7]. - **Market Response**: Following the announcement of the asset sale, shares of companies with overseas port assets, such as China Merchants Port, have seen significant increases, including a trading halt due to price surges, indicating market recognition of the value of port assets [2][3]. Other Important Insights - **Regional Performance Variability**: The Piraeus F4 terminal experienced a 12.9% year-on-year decline in total throughput in the first half of 2024 due to regional events, while other terminals in regions like Zeebrugge and Spain showed significant growth, indicating a mixed performance landscape across different geographical areas [2][5]. - **Strategic Resource Value**: The conference emphasized the increasing value of strategic resources in the context of global competition, suggesting that investors should pay attention to opportunities in companies like China Merchants and COSCO [2][7].

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Financial Performance - Profit attributable to equity holders was HKD 4.452 billion, an increase of 32.9% year-on-year (2023: HKD 3.351 billion) [3] - Basic earnings per share increased by 26.7% to HKD 1.0605 (2023: HKD 0.8369) [4] - Net profit for the period was HKD 4.914 billion, compared to HKD 3.984 billion in 2023 [5] - The company reported a profit attributable to equity holders of HKD 4,452 million for the six months ended June 30, 2024 [13] - Net profit attributable to equity holders increased to HKD 4.452 billion, a year-on-year rise of 32.9%, driven by fair value gains on financial assets and a reversal of receivables impairment [45] Revenue and Throughput - Container throughput reached 71.77 million TEU, a year-on-year increase of 7.9% (2023: 66.50 million TEU) [3] - Bulk cargo throughput was 274 million tons, up 1.7% year-on-year (2023: 270 million tons) [3] - Revenue for the six months ended June 30, 2024, was HKD 5.795 billion, slightly down from HKD 5.805 billion in 2023 [4] - The revenue from terminal operations was HKD 5,402 million, remaining relatively stable compared to HKD 5,406 million in the previous year [9] - Revenue from the Greater Bay Area was HKD 2,091 million, while the Yangtze River Delta contributed HKD 460 million, indicating a focus on regional performance [13] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 170.974 billion, down from HKD 172.314 billion at the end of 2023 [6] - Total equity increased to HKD 121.982 billion from HKD 120.845 billion at the end of 2023 [7] - Total liabilities were reported at 43,758 million, with significant obligations in the Long Triangle and other regions [15] - Total assets amounted to HKD 172,314 million as of June 30, 2024, compared to HKD 171,944 million in the previous period [16] Dividends - The interim dividend per share was HKD 0.25, up from HKD 0.22 in 2023 [3] - The interim cash dividend declared was HKD 1,050 million, with an increase in dividend per share to HKD 0.25 from HKD 0.22 in the previous year [22] Operational Efficiency and Strategy - The overall performance indicates a strategic emphasis on regional markets and operational efficiency despite slight revenue declines in certain segments [11] - The company aims to enhance operational efficiency and expand its global footprint, focusing on innovation and sustainable practices in response to market dynamics [33] - The company plans to implement six strategic initiatives, including domestic and overseas port strategies, innovation, digitalization, lean operations, and low-carbon strategies [57] Market and Economic Outlook - Global GDP growth is projected at 3.2% for 2024, a decrease of 0.1 percentage points from 2023, reflecting ongoing economic challenges [30] - China's GDP for the first half of 2024 reached RMB 61.68 trillion, growing by 5.0% year-on-year, supported by a recovery in external demand [31] - The global container shipping market is expected to see a demand growth of 3.0% in 2024, despite supply-side challenges and geopolitical tensions [31] Corporate Governance - The board of directors is committed to maintaining high standards of corporate governance and business ethics, believing it is crucial for enhancing investor confidence and maximizing shareholder returns [61] - The company confirmed that all directors complied with the standards set forth in the standard code during the reporting period [61] - The company will regularly review and update its current practices to reflect the latest best practices in corporate governance [61] Sustainability and ESG - The company aims to achieve carbon neutrality and has implemented measures to enhance environmental management, including obtaining ISO 50001 and ISO 14001 certifications for energy and environmental management systems [54] - The company is committed to integrating ESG principles into supply chain management, focusing on supplier performance and sustainable development [55] Employee and Talent Development - Employee costs, including directors' remuneration, were HKD 1,051 million for the first half of 2024, slightly up from HKD 1,036 million in the same period of 2023 [21] - The company has initiated a talent development program that attracted 34 young talents from 21 countries, enhancing its international perspective and cross-cultural talent exchange [53]

Financial Performance - Total revenue for 2023 was HKD 11,482 million, a decrease of 8.5% compared to HKD 12,545 million in 2022[3] - Profit attributable to equity holders decreased by 19.9% to HKD 6,233 million from HKD 7,781 million in the previous year[3] - The company reported a net cash generated from operating activities of HKD 7,238 million, down 17.6% from HKD 8,781 million in 2022[3] - The basic earnings per share fell by 24.0% to HKD 153.22 from HKD 201.52 in 2022[3] - The company’s mid-term dividend remained unchanged at HKD 22.00, while the final dividend decreased by 20.0% to HKD 48.00 from HKD 60.00[3] - In 2023, the company's revenue was HKD 11.482 billion, a decrease of 8.5% year-on-year, primarily due to the sale of Ningbo Daxie China Merchants International Terminal in August 2023[28] - The profit attributable to equity holders of the company was HKD 6.233 billion, down 19.9% year-on-year, with recurring profit at HKD 6.159 billion, a decline of 24.2%[28] Operational Highlights - Port business revenue declined by 9.7% to HKD 10,680 million, while bonded logistics business revenue increased by 13.6% to HKD 593 million[4] - The global port projects completed a container throughput of 13.748 million TEUs, an increase of 0.7% compared to 2022, while bulk cargo throughput reached 557 million tons, up 2.0%[23] - The company achieved a container throughput of 10.341 million TEUs in mainland China, Hong Kong, and Taiwan, reflecting a year-on-year growth of 0.7%[23] - Major ports in the Greater China region achieved a container throughput of 169.5 million TEU in 2023, a year-on-year increase of 2.1%[43] - The total container throughput of mainland Chinese ports reached 310.34 million TEU in 2023, reflecting a year-on-year growth of 4.9%[43] Strategic Initiatives - The company agreed to acquire 51% of PT Nusantara Pelabuhan Handal Tbk for about USD 61.2 million (approximately HKD 4.78 billion), enhancing its operational management in Indonesia[17] - The company plans to acquire a 51% stake in PT Nusantara Pelabuhan Handal Tbk, listed on the Indonesia Stock Exchange, to enhance its strategic port network in Southeast Asia[25] - The group plans to acquire a 51% stake in Indonesia's PT Nusantara Pelabuhan Handal Tbk for approximately $61.2 million, enhancing its presence in Southeast Asia[47] - The company is focusing on "high-quality development" and "lean operations" to navigate the complex external environment and enhance its operational efficiency[23] - The company aims to enhance core competitiveness through digital and green technology initiatives[33] Market Outlook - The global trade volume is expected to grow by only 0.8% in 2023, significantly lower than previous forecasts, due to inflation and demand contraction in developed countries[20] - The shipping market is expected to face an imbalance in supply and demand, leading to continued weakness in freight rates in 2024[33] - The company anticipates a "short peak, long tail" cycle in the container shipping market for 2024, with continued low growth and weakening freight rates due to supply-demand imbalances and geopolitical factors[94] ESG and Sustainability - The company received a rating upgrade to "BB" from MSCI, reflecting its improved ESG practices, and won multiple awards for its sustainability efforts[27] - The company emphasizes sustainable development, integrating ESG strategies into operations and management, and aims to enhance its internal ESG management level and external information disclosure[86] - The company is committed to minimizing the ecological impact of its port operations and has implemented various environmental monitoring programs, including initiatives for wildlife conservation in Sri Lanka and Togo[87] - The company has received recognition for some of its terminals, achieving a four-star rating as a "China Green Port"[86] - The company is enhancing its workplace environment by optimizing employee welfare and providing multiple communication channels for employee feedback[89] Governance and Management - The board of directors held 12 meetings in the year, with attendance rates ranging from 91.67% to 100%[121] - The company appointed a new chairman and CEO on July 24, 2023, with the previous chairman resigning on the same date[123] - The company has a commitment to high ethical standards and corporate governance practices[115] - The board evaluates the independence of directors annually based on various factors, including time commitment and potential conflicts of interest[124] - The company has established a comprehensive internal control system to manage risks related to finance, operations, and compliance, ensuring effective monitoring and accountability[160] Employee and Community Engagement - The total remuneration paid to employees reached HKD 2.125 billion, accounting for 27.5% of the group's total operating expenses[82] - The group had a total of 7,749 full-time employees as of December 31, 2023, with 4,532 based in mainland China[82] - The company is actively exploring community development projects, benefiting over 6,000 villagers through infrastructure improvements and skill training programs[90] Future Projections - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[186] - The company plans to implement new operational strategies to improve efficiency, targeting a 15% reduction in operational costs[186] - The board of directors emphasized the importance of sustainability initiatives, committing to reduce carbon emissions by 20% by 2025[186]

智通财经APP讯，招商局港口(00144)发布2023年全年业绩，集团的经营业绩受人民币贬值带来的折算影响，主要在收入、成本、分占联营合营公司利润等项目中体现。综合宁波大榭股权于2023年8月完成出售的影响，截至2023年12月31日止年度，集团收入为港币114.82亿元，同比下降8.5%。 因分占联营合营企业利润同比减少，归属于公司权益持有者的利润及经常性溢利分别下降至港币62.33亿元及港币61.59亿元，相当于同比下降19.9%及24.2%。每股基本盈利153.22港仙，拟派末期股息每股48港仙。 2023年，完成集装箱吞吐量13748万TEU，同比增加0.7%(2022年：13653万TEU)。完成散杂货吞吐量5.57亿吨，同比增加2.0%(2022年：5.47亿吨)。 2023年，集团以稳中求进为工作总基调，聚焦“内生增长”，加速“创新升级”，生产经营稳中提质，并围绕母港建设、海外业务、综合开发、创新发展、资本运作、运营管理、市场商务、环境、社会及管治(ESG)建设八个方面的重点工作。年内，集团在经营上做出四大亮点。 第一，集团海外拓展取得成效。“精耕东南亚”落地重点项目，拟收购位于印尼的PT Nu ...

Financial Performance - Profit attributable to equity holders was HKD 6.233 billion, a decrease of 19.9% year-on-year (2022: HKD 7.781 billion) [4] - The basic earnings per share were HKD 0.15322, a decrease of 24.0% year-on-year (2022: HKD 0.20152) [4] - Revenue for the year was HKD 11.482 billion, down from HKD 12.545 billion in 2022 [4] - The net profit for the year was HKD 7.385 billion, compared to HKD 9.029 billion in 2022 [5] - The group reported a net profit of HKD 8,319 million for the year, compared to HKD 10,030 million in the previous year, which is a decrease of around 17% [14] - The operating profit before losses for the year was HKD 4,246 million, compared to HKD 4,902 million in the previous year, indicating a decrease of about 13% [13] - The group's total revenue for the year ended December 31, 2023, was HKD 10,680 million, a decrease from HKD 11,482 million in the previous year, representing a decline of approximately 7% [13] - The group's total revenue for 2023 was HKD 11,482 million, a decrease of 8.5% from HKD 12,545 million in 2022 [9] Revenue Breakdown - Revenue from terminal operations was HKD 10,680 million, down 9.7% from HKD 11,833 million in the previous year [9] - Revenue from warehousing services increased to HKD 593 million, up 13.6% from HKD 522 million in 2022 [9] - Revenue from mainland China, Hong Kong, and Taiwan was HKD 6,348 million, a decline of 19.9% from HKD 7,919 million in 2022 [12] - Revenue from Brazil increased to HKD 1,977 million, up 11.8% from HKD 1,768 million in the previous year [12] - The group generated over 10% of its total revenue from a single customer, amounting to HKD 1,845 million in 2023, compared to HKD 1,694 million in 2022 [11] Asset and Liability Overview - Non-current assets totaled HKD 154.603 billion, a slight decrease from HKD 157.626 billion in 2022 [6] - Total assets were HKD 172.314 billion, compared to HKD 172.155 billion in 2022 [6] - The group reported a net current liability of HKD (2.658) billion, an improvement from HKD (6.473) billion in 2022 [7] - The group's total liabilities were reported at HKD 6,233 million, reflecting a significant increase compared to the previous year [15] - Total liabilities increased by 3.8% from HKD 49.579 billion at the end of 2022 to HKD 51.469 billion at the end of 2023 [51] Capital Expenditure and Financial Management - The group's capital expenditure for the year was HKD 1,384 million, which is a decrease from HKD 1,425 million in the previous year [14] - The group redeemed HKD 6 billion of perpetual capital bonds on October 10, 2023 [54] - The outstanding bank and other loans amounted to HKD 36.308 billion as of December 31, 2023, compared to HKD 34.529 billion at the end of 2022 [55] - The net debt to equity ratio was approximately 20.8% as of December 31, 2023 [54] Operational Highlights - The total container throughput reached 13.748 million TEU, an increase of 0.7% year-on-year (2022: 13.653 million TEU) [3] - The total bulk cargo throughput was 557 million tons, an increase of 2.0% year-on-year (2022: 547 million tons) [3] - The group achieved a warehouse utilization rate exceeding 95% in its domestic bonded logistics operations, with a doubling of inbound operations at its Qingdao terminal [38] - The group’s overseas projects achieved a throughput of 34,060 thousand TEU, a year-on-year increase of 0.6%, with significant growth in Djibouti at 887 thousand TEU, up 39.7% [48] Strategic Initiatives and Future Outlook - The company aims to enhance its core competitiveness and operational efficiency through "internal growth," "innovation upgrades," and "global layout" strategies [69] - The company is focusing on six strategic initiatives, including domestic port strategy, overseas strategy, innovation strategy, digital strategy, lean operation strategy, and low-carbon strategy [69] - The company plans to improve financial management capabilities and enhance capital operation efficiency to increase cash returns on investment projects [70] - The company is committed to deepening reforms to promote high-quality development and enhance its ESG management system [71] ESG and Sustainability Efforts - The company received an upgrade in its ESG rating to "BB" from MSCI, reflecting improved sustainability practices [36] - The group aims to enhance its ESG management level and has received an A- rating from the Hong Kong Quality Assurance Agency for sustainable development performance in 2023 [66] - The group is committed to energy security and low-carbon transformation, expanding the application of new energy-saving technologies and products, and has achieved recognition as a four-star "China Green Port" for some terminals [64] - The group continues to advance community development initiatives, benefiting over 6,000 villagers through infrastructure projects and skill training programs [65] Corporate Governance - The board is committed to maintaining high standards of corporate governance and business ethics to enhance investor confidence and shareholder returns [73] - The company has adopted the Hong Kong Stock Exchange's Corporate Governance Code and confirmed compliance with the standards set forth in the code for the year ending December 31, 2023 [73] - The chairman of the board was unable to attend the annual general meeting on June 2, 2023, due to overseas duties, but other board members were present to ensure effective communication with shareholders [73]

恩 商 局 港口控股有限公司 CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED Stock Code 股份代號 : 00144 2023 INTERIM REPORT 中期報告 WE CONNECT THE WORLD CONTENTS 目錄 1 Corporate Information 2 Financial Highlights 4 Management Discussion and Analysis 27 Condensed Consolidated Statement of Profit or Loss 28 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 29 Condensed Consolidated Statement of Financial Position 31 Condensed Consolidated Statement of Changes in Equity 33 Condensed Consolidated State ...

Financial Performance - Profit attributable to equity holders was HKD 3.351 billion, a decrease of 30.5% year-on-year (2022: HKD 4.825 billion) [5] - Basic earnings per share were 83.69 HK cents, a decrease of 34.4% year-on-year (2022: 127.48 HK cents) [5] - Revenue for the first half of 2023 was HKD 5.805 billion, down from HKD 6.508 billion in 2022 [5] - Net profit for the period was HKD 3.984 billion, compared to HKD 5.561 billion in 2022 [6] - The operating profit before losses for the first half of 2023 was 1,093 million, compared to 1,959 million in the first half of 2022, indicating a decrease of about 44.1% [15] - The profit attributable to equity holders of the company for the first half of 2023 was 3,351 million, down from 4,825 million in the same period of 2022, reflecting a decline of approximately 30.5% [16] - The company reported a loss of 750 million in the fourth quarter of 2023, compared to a profit of 236 million in the same quarter of 2022 [15] - The company’s net financing cost was HKD 666 million for the first half of 2023, down from HKD 808 million in the same period last year, showing improved financial efficiency [19] Revenue Breakdown - Revenue from port operations, including container handling and related services, was HKD 5,707 million, down from HKD 6,426 million, reflecting a decline of 11.2% [11] - Warehousing service revenue decreased to HKD 5,406 million from HKD 6,172 million, representing a decline of 12.4% [11] - Revenue from mainland China, Hong Kong, and Taiwan was HKD 3,425 million, down from HKD 4,233 million, a decrease of 19.1% [14] - Revenue from Brazil increased slightly to HKD 854 million from HKD 835 million, reflecting a growth of 2.3% [14] - Revenue from the China mainland, Hong Kong, and Taiwan segment was 514 million for the first half of 2023, compared to 785 million in the same period of 2022, a decrease of about 34.5% [15] - The segment profit for the China mainland, Hong Kong, and Taiwan was 2,225 million in the first half of 2023, down from 3,473 million in the same period of 2022, representing a decline of approximately 36.0% [16] Asset and Equity Position - Total assets as of June 30, 2023, were HKD 172.882 billion, an increase from HKD 172.155 billion at the end of 2022 [7] - Total equity was HKD 122.372 billion, slightly down from HKD 122.576 billion at the end of 2022 [8] - The total equity attributable to the company and its subsidiaries was HKD 86,857 million, indicating a strong capital position [18] - The total segment assets reached HKD 171,832 million, with significant contributions from various regions including HKD 20,698 million from the Greater Bay Area [18] Dividends and Shareholder Returns - The interim dividend per share remained at 22 HK cents, unchanged from 2022 [3] - The interim dividend proposed is HKD 0.22 per ordinary share, totaling HKD 909 million, which is an increase from HKD 866 million in the previous year [23] - The weighted average number of ordinary shares issued increased to 4,003,383,046 for the six months ended June 30, 2023, from 3,785,619,729 in the same period of 2022, an increase of 5.8% [24] - The company plans to issue new shares as part of its scrip dividend scheme, with the new shares expected to be distributed around November 22, 2023 [29] Cost Management and Efficiency - Financing costs decreased to HKD 894 million from HKD 1.018 billion in 2022 [5] - Employee costs, including directors' remuneration, were HKD 1,036 million for the six months ended June 30, 2023, down from HKD 1,126 million in the same period of 2022, a decrease of 8% [22] - The company’s depreciation of property, plant, and equipment was HKD 760 million for the first half of 2023, compared to HKD 802 million in the same period of 2022, a decline of 5.2% [22] - The capital expenditure for the first half of 2023 was reported at 423 million, compared to 517 million in the same period of 2022, indicating a decrease of about 18.2% [16] Market and Economic Outlook - The global economic growth forecast for 2023 is projected at 3.0%, a decrease of 0.5 percentage points from 2022, with emerging markets expected to grow at 4.0% [57] - Global trade volume growth is expected to be 2.0% in 2023, revised down by 0.4 percentage points from previous forecasts, and 3.7% in 2024 [57] - The global container throughput for the top 20 ports in Q1 2023 was 83.43 million TEU, a decline of 11.7% year-on-year [33] - The average idle capacity of container ships in the market is approximately 4.4% [32] Strategic Initiatives - The company plans to focus on expanding its market presence and investing in new technologies to drive future growth [15] - The company is exploring potential mergers and acquisitions to enhance its competitive position in the market [15] - The company is actively exploring business expansion in Southeast Asia, leveraging the positive trends from the Regional Comprehensive Economic Partnership (RCEP) [42] - The company aims to enhance its supply chain service capabilities and achieve the strategic goal of becoming a "world-class comprehensive service provider for ports" in the second half of 2023 [58] - The company is committed to innovation-driven development, increasing efforts in core technology breakthroughs, and transitioning from "cargo volume economy" to "cargo value economy" in its operations [58] Sustainability and Community Engagement - The company is committed to sustainable development, aligning with national carbon neutrality goals and implementing energy-saving projects [55] - The company has initiated community engagement programs, including the C-Blue initiative, to support education and local development [56]

Financial Performance - Total revenue for 2022 was HKD 12,545 million, representing a 5.9% increase from HKD 11,850 million in 2021[2] - Profit attributable to equity holders decreased by 4.5% to HKD 7,781 million from HKD 8,144 million in the previous year[2] - Regular profit increased by 7.7% to HKD 8,121 million compared to HKD 7,537 million in 2021[2] - The group's total revenue for 2022 reached HKD 12.545 billion, an increase of 5.9% year-on-year, driven by growth in port business volume and rate increases[23] - The profit attributable to equity holders of the company was HKD 7.781 billion, a decrease of 4.5% year-on-year, while recurring profit increased by 7.7% to HKD 8.121 billion[23][26] - The group achieved a revenue of HKD 12.545 billion for the year ended December 31, 2022, representing a year-on-year increase of 5.9% due to higher port business rates[76] - The profit attributable to equity holders decreased by 4.5% to HKD 7.781 billion, primarily due to a net gain from the partial disposal of an associate in the previous year amounting to HKD 407 million[76] Operational Highlights - The group completed a total container throughput of 136.53 million TEU in 2022, representing a 1.1% increase compared to 2021[27] - The group achieved a bulk cargo throughput of 547 million tons, a decrease of 3.6% year-on-year[27] - The container throughput in mainland China, Hong Kong, and Taiwan reached 102.65 million TEU, up 1.2% year-on-year, while overseas projects achieved 33.88 million TEU, an increase of 0.9%[27] - The group is actively expanding its business cooperation with shipping companies in Sri Lanka, contributing to business volume growth[27] - The group is advancing the "front port - middle area - back city" comprehensive development model, focusing on international logistics supply chain services[27] - The group signed contracts with 40 companies for the HIPG industrial park and 287 companies for the Djibouti International Free Trade Zone by the end of 2022[32] - The group completed a total of 156.85 billion tons of cargo throughput, a year-on-year increase of 0.9%[51] Investments and Acquisitions - The company acquired an additional 14.6% stake in Asia Airfreight Terminal, increasing its ownership to 34.6% to enhance logistics supply chain in the Greater Bay Area[11] - The company purchased shares in Shanghai International Port Group for a total consideration of RMB 1.894 billion (approximately HKD 2.338 billion), raising its stake to about 28.06%[12] - The group increased its stake in Asia Airfreight Terminal Company Limited by 14.6% and raised its shareholding in Shanghai Port Group from 26.64% to 28.05%[33] Financial Position - Total assets decreased by 3.7% to HKD 172,155 million from HKD 178,690 million in 2021[2] - The company reported a net cash generated from operating activities of HKD 8,781 million, remaining stable compared to HKD 8,785 million in 2021[2] - The company’s net debt decreased by 6.8% to HKD 25,850 million from HKD 27,728 million in the previous year[2] - The group maintained investment ratings of Baa1 and BBB from Moody's and Standard & Poor's, respectively, with a stable outlook[43] - The total outstanding bank and other loans amounted to HKD 34.529 billion as of December 31, 2022, a decrease from HKD 36.782 billion in 2021[82] ESG and Sustainability Initiatives - The company established an ESG committee to oversee environmental, social, and governance practices, enhancing board independence and diversity[15] - The company is committed to enhancing energy efficiency through the application of new energy-saving technologies, including shore power supply and clean energy usage[94] - The company aims to achieve "energy conservation and efficiency enhancement" by expanding the application of renewable energy and environmentally friendly equipment[94] - The company is actively responding to national energy security and low-carbon transformation strategies, aiming to build a green ecological port enterprise[94] - The company is committed to protecting biodiversity and minimizing the ecological impact of its operations on local communities and marine ecosystems[94] Corporate Governance - The board proposed a final dividend of HKD 0.60 per share, with a total dividend of HKD 0.82 per share for the year, resulting in a payout ratio of 42.0%[24] - The company has ensured compliance with corporate governance codes, with all independent directors confirming their independence annually[126] - The board's composition includes a mix of executive and non-executive directors, with varying tenures from 0.1 to 21.5 years[124][125] - The company emphasizes effective communication with shareholders, with key committee members present at the annual general meeting to address questions[121] - The company has a commitment to high ethical standards and sustainable development as part of its corporate culture[122] Future Outlook - The global economic growth is expected to slow down in 2023 due to inflation and geopolitical tensions, impacting the recovery process[98] - The company anticipates that container supply will continue to rise in 2023, alleviating structural supply-demand mismatches in the shipping market[99] - The company plans to focus on "internal growth" and "innovation upgrades" to enhance operational capabilities and achieve high-quality development[99] - The company has provided a positive outlook for the upcoming year, projecting a revenue growth of 10% to 12% for 2023[186] Employee and Talent Management - The group employed 8,425 full-time employees, with total compensation paid amounting to HKD 2.307 billion, representing 27.2% of total operating expenses[90] - The company has implemented a new human resources planning strategy to enhance talent management in response to industry demands[90] - The company emphasizes the importance of gender diversity in its recruitment processes, particularly for senior management positions[147] Risk Management - The company emphasizes the importance of risk management and internal control systems, ensuring that management has adequate resources and training[7] - The risk management framework includes identifying, measuring, managing, and controlling various risks such as market, operational, and financing risks[167] - The company has implemented a comprehensive anti-corruption policy, including accountability mechanisms and compliance management policies[170]

Financial Performance - Profit attributable to equity holders was HKD 7.781 billion, a decrease of 4.5% year-on-year (2021: HKD 8.144 billion) [3] - Regular profit attributable to equity holders was HKD 8.121 billion, an increase of 7.7% year-on-year (2021: HKD 7.537 billion) [3] - Basic earnings per share were 201.52 HKD cents, a decrease of 8.3% year-on-year (2021: 219.87 HKD cents) [3] - Total revenue for the year was HKD 12.545 billion, an increase from HKD 11.850 billion in 2021 [5] - Net profit for the year was HKD 9.029 billion, down from HKD 9.385 billion in 2021 [6] - The operating profit before losses for the year was HKD 3,835 million, compared to HKD 4,787 million in 2021, indicating a decrease of about 19.9% [20] - The net profit attributable to equity holders of the company for 2022 was HKD 9,034 million, down from HKD 8,646 million in 2021, reflecting a decline of approximately 4.5% [20] - The group reported a net loss of HKD 635 million from other income and expenses in 2022, compared to a gain of HKD 981 million in 2021 [24] Revenue Breakdown - Revenue from port operations was HKD 9.378 billion, an increase of 16.6% year-on-year (2021: HKD 8.043 billion) [3] - Revenue from terminal operations, including cargo handling and container services, was HKD 11,833 million, up from HKD 11,069 million in 2021, reflecting a growth of 6.9% [14] - Revenue from warehousing services decreased to HKD 522 million from HKD 560 million, a decline of 6.8% [14] - Revenue from mainland China, Hong Kong, and Taiwan was HKD 7,919 million, an increase from HKD 7,352 million in 2021, representing a growth of 7.7% [18] - Revenue from Brazil increased to HKD 1,768 million in 2022 from HKD 1,521 million in 2021, marking a growth of 16.3% [18] Asset and Liability Overview - Total assets decreased to HKD 172.155 billion from HKD 178.690 billion in 2021 [11] - The total liabilities as of December 31, 2022, were HKD 49,579 million, compared to HKD 43,951 million in 2021, showing an increase of about 12.0% [22] - The total assets as of December 31, 2022, amounted to HKD 172,155 million, an increase from HKD 171,832 million in the previous year [22] - The company reported a total of HKD 34.529 billion in loans as of December 31, 2022, compared to HKD 36.782 billion in 2021, indicating a decrease of approximately 6.1% [64] Dividend Information - Final dividend per share was 60 HKD cents (2021: 72 HKD cents) [3] - The proposed final dividend for 2022 is HKD 0.60 per share, down from HKD 0.72 per share in 2021 [30] - The proposed final dividend for the year ended December 31, 2022, is HKD 0.60 per share, totaling HKD 2,402 million, with an option for shareholders to receive cash instead of shares [35] - The company aims for a target dividend payout ratio of no less than 40% for the coming year, subject to shareholder approval [36] Operational Highlights - Container throughput reached 136.53 million TEU, an increase of 1.1% year-on-year (2021: 134.04 million TEU) [3] - Bulk cargo throughput was 547 million tons, a decrease of 3.6% year-on-year (2021: 567 million tons) [3] - The throughput of Shenzhen Western Port Area increased by 5.2% year-on-year, reaching 12.08 million TEU [44] - The throughput of the Shanghai International Port Group was 47.3 million TEU, a year-on-year increase of 0.6% [45] - The group opened 25 service points in the Guangdong-Hong Kong-Macao Greater Bay Area, serving over 4,700 import and export enterprises, with a total of approximately 260,000 TEU in business volume [52] Strategic Initiatives - The company plans to expand its market presence and invest in new technologies to drive future growth, although specific financial targets were not disclosed during the call [19] - The company aims to transition from a "cargo volume economy" to a "cargo value economy" by leveraging technological changes and improving service capabilities [54] - The company plans to develop three leading products on the "Zhongshan Chip" platform, including the Container Terminal Operating System (CTOS), Bulk Cargo Terminal Operating System (BTOS), and Logistics Park Operating System (LPOS) [74] - The company is committed to enhancing its ESG governance level and promoting sustainable development through its operations [68] Employee and Compensation - Employee costs, including directors' remuneration, increased to HKD 2,307 million in 2022 from HKD 2,218 million in 2021 [29] - The company employed 8,425 full-time employees as of December 31, 2022, with total compensation reaching HKD 2.307 billion, accounting for 27.2% of total operating expenses [66] - The company has implemented a market-oriented compensation distribution mechanism to align performance with remuneration, emphasizing efficiency and fairness [67] Economic Outlook - The global economic outlook for 2022 was impacted by factors such as the COVID-19 pandemic and geopolitical tensions, with the IMF projecting a global growth rate of 3.4% [38] - China's GDP growth for 2022 was reported at 3%, positioning it among the top growth rates among major economies [38] - The company anticipates a slowdown in global economic growth in 2023 due to inflation and geopolitical tensions, but expects some economic recovery driven by pent-up demand and declining inflation [71] Governance and Compliance - The audit committee consists of five independent non-executive directors and has reviewed the financial statements for the year ended December 31, 2022 [76] - The company has adhered to the corporate governance code and standards set forth by the Hong Kong Stock Exchange, with all directors complying with the trading standards [77] - There were no purchases, sales, or redemptions of the company's listed securities during the year [78]