Financial Performance - Total revenue for the first half of 2022 was $13,398 million, a 0.5% increase compared to $13,331 million in the same period of 2021[7]. - Operating profit rose by 31.6% to $1,211 million, up from $920 million year-on-year[7]. - Profit attributable to the company's owners before biological fair value adjustments increased by 30.1% to $701 million, compared to $539 million in the previous year[7]. - Basic earnings per share before biological fair value adjustments rose by 49.2% to 5.46 cents, up from 3.66 cents in the same period last year[7]. - Revenue for the first half of 2022 increased by 9.4% to $7.073 billion, with a decrease of 3.3% in China, while the US revenue grew by 14.4%[16]. - Operating profit for the first half of 2022 was $1.081 billion, a significant increase of 32.5% compared to the previous year[17]. - Pork revenue decreased by 9.6% to $5.550 billion, with a notable decline of 34.0% in China, while the US and Mexico saw an increase of 18.6%[18]. - Gross profit for the same period was $2,623 million, up from $2,238 million in 2021, reflecting a 17.2% increase[45]. - Net profit for the six months ended June 30, 2022, was $837 million, a 27% increase compared to $659 million in the prior year[46]. - The company reported a total comprehensive income of $578 million for the period, compared to $875 million in the same period last year[46]. Market Dynamics - Pork sales volume decreased by 5.0% to 2,031 thousand tons, while meat product sales volume slightly declined by 0.1% to 1,612 thousand tons[7]. - In China, the total pig output increased by 8.4% to 366 million heads, and total pork production rose by 8.2% to 29.39 million tons[9]. - Average pig price in China dropped by 43.9% to RMB 14.5 per kilogram (approximately $2.24) during the review period[9]. - U.S. average pig price increased by 2.5% to $1.62 per kilogram, reflecting strong domestic demand despite a 3% decrease in overall pork production[10]. - The company reported a significant reduction in pork imports to China, with total imports down by 65.1% to 800 thousand tons during the review period[9]. - The average price of pork in the EU rose by 11.3% to €1.72 per kilogram (approximately $1.88) due to reduced supply[12]. - US pork exports decreased by 22.1% to 1.2 million tons, with exports to China dropping by 55.5%[11]. - The EU's total pork production decreased by 6.0% during the review period, influenced by African swine fever and rising input costs[12]. - The company faced challenges in China due to a slowdown in the consumer market and intense competition, leading to a 1.8% decline in meat product sales[15]. Strategic Initiatives - The company plans to continue expanding its market presence in China, the U.S., Mexico, and selected European markets to maximize profitability[8]. - The company plans to enhance price management across all sales channels to address ongoing cost pressures[16]. - The company aims to focus on pricing strategies, product mix optimization, cost control, and operational efficiency to mitigate profit margin pressures from inflation[40]. - The company plans to increase market investments, accelerate industrial upgrades, and promote a diversified protein development strategy[40]. - The company is actively managing commodity price risks through strategic inventory management and hedging activities[35]. Financial Position and Liabilities - Cash and bank balances stood at $968 million as of June 30, 2022, down from $1.556 billion at the end of 2021[22]. - The current ratio remained stable at 1.7 times, with unused bank financing totaling $4.681 billion[22]. - Total outstanding bank borrowings amounted to $3.919 billion, a decrease from $4.049 billion at the end of 2021[24]. - Financial costs increased by 16.2% to $79 million, primarily due to a higher average outstanding borrowing balance[27]. - The average interest rate on outstanding borrowings was 3.1%, up from 2.7% at the end of 2021[27]. - The debt-to-equity ratio was 39.6% as of June 30, 2022, compared to 41.4% at the end of 2021[26]. - The company maintains a strong credit rating with Fitch at BBB+, S&P at BBB, and Moody's at Baa2, all with stable outlooks[28]. - The company reported a total borrowing of $3,886 million, slightly down from $4,014 million, indicating a decrease of approximately 3.19%[85]. Biological Assets and Capital Expenditures - The company reported a fair value of biological assets at $1.607 billion as of June 30, 2022, up from $1.431 billion at the end of 2021, with a net gain from fair value adjustments of $62 million[30]. - Capital expenditures for the review period totaled $434 million, with significant investments in China for poultry and pig farming facilities[32]. - The company’s biological assets include 14.16 million pigs and 20.33 million poultry, with a 0.2% increase in pigs and a 60.6% increase in poultry from the previous year[30]. Legal and Compliance Matters - The company agreed to pay a total of $77 million to settle various antitrust claims, including $77 million for direct buyers, $42 million for commercial and institutional indirect buyers, and $75 million for consumer indirect buyers[38]. - The company is involved in multiple antitrust lawsuits, including individual claims from buyers and actions initiated by state attorneys general[101]. - The company has faced legal challenges regarding its pricing practices and compliance with sales agreements, particularly in relation to Maxwell Foods[103]. - The company is also defending against claims related to environmental issues from a pig farming operation in North Carolina[104]. Corporate Governance - The board of directors and management committed to maintaining good corporate governance practices throughout the review period[140]. - Mr. Li Gangwei resigned as an independent non-executive director effective June 1, 2022, while Ms. Zhou Hui was appointed as an independent non-executive director and chair of the audit committee on the same date[140]. - The audit committee, consisting of three independent non-executive directors, reviewed the group's interim performance along with internal controls and financial reporting matters[141]. - The company has complied with all applicable code provisions of the corporate governance code during the review period[140].

Sales Performance - Meat product sales decreased by 1.2% to 828,000 tons, while pork sales increased by 2.1% to 1,033,000 tons[2] - Revenue declined by 0.8% to $6,555 million, while operating profit increased by 28.1% to $642 million[2] - The increase in meat product revenue by 10.6% was driven by growth in the U.S. and Europe, offsetting declines in China[8] Profitability - Profit attributable to the company's owners (before biological fair value adjustments) rose by 34.8% to $395 million[2] - Basic earnings per share (before biological fair value adjustments) increased by 54.8% to 3.08 cents[2] - The company's operating profit in the U.S. increased sixfold due to rising pig and pork prices, surpassing the increase in feed costs[9] - In Europe, the company faced an operating loss of $26 million, compared to an operating profit of $5 million in the previous period[9] Market Conditions - Average pig prices in China fell by 56.1% to RMB 14.02 per kg, while in the U.S., prices rose by 15.3% to $1.51 per kg[3] - The company anticipates that the negative impacts of African swine fever and COVID-19 will gradually diminish in 2022, but inflationary pressures will pose new challenges[10] Strategic Initiatives - The company plans to continue expanding its market presence and enhancing operational efficiency through strategic acquisitions and product development[8] - The company aims to enhance its integrated supply chain to cope with soaring commodity prices and improve production efficiency through increased automation and information technology[10] - The company plans to expand its operational regions and introduce protein diversification to accelerate growth[10] - Adjustments to the product mix will be made to maximize value-added offerings[10] - Marketing innovations will be promoted to expand sales scale and maintain industry leadership[10] Financial Position - The company reported total assets of $20,855 million and equity attributable to owners of $9,306 million as of March 31, 2022[2]

Financial Performance - Revenue increased by 6.7% to $27,293 million, compared to $25,589 million in the previous year[7]. - Operating profit rose by 13.7% to $1,966 million, up from $1,729 million in the prior year[8]. - Profit attributable to shareholders (before biological fair value adjustments) increased by 7.2% to $1,043 million, compared to $973 million in the previous year[8]. - The company reported a significant increase in profitability after excluding one-time factors such as litigation and pension adjustments[11]. - The company reported a net profit for the year of $1,298 million, compared to $1,092 million in 2020, indicating a significant increase of 18.9%[162]. - The total cost of sales for the year was $22,297 million, compared to $20,563 million in 2020, reflecting an increase of 8.4%[161]. - The company recognized other income of $133 million, up from $74 million in 2020, indicating an increase of 80.5%[161]. - The operating profit for 2021 was $1.895 billion, a 26.4% increase compared to 2020, with significant growth in the U.S. market at 55.0%[47]. Market Dynamics - The U.S. business showed strong recovery with historical high revenue, while the European business faced challenges due to rising feed costs and declining pork prices[11]. - The company operates across multiple regions, including China, the United States, Mexico, Europe, and selected markets in Asia[38]. - The market dynamics in China, the United States, and Europe are crucial for the company's performance[38]. - The demand for high-quality pork products in China is expected to grow due to economic growth and improved living standards[39]. - The recovery of supply in the pork market was driven by the diminishing impact of African swine fever in China[39]. Corporate Governance - The board consists of nine directors, including five executive directors, one non-executive director, and three independent non-executive directors[13]. - The board is responsible for guiding the company's strategic objectives and overseeing business management, ensuring high governance standards across all aspects of the business[82]. - The company has adopted a code of conduct for directors' securities trading, confirming compliance with all standards during the fiscal year ending December 31, 2021[81]. - The board confirmed its responsibility for preparing accounts and ensuring that financial disclosures are balanced, clear, and understandable[105]. - The company has established a structured governance framework with six committees under the board, including the Audit Committee and the Remuneration Committee[91]. Leadership and Management - Wan Long has over 50 years of experience in the meat processing industry and has led the company to become an international business[13]. - The management team has a strong educational background, with degrees in business management and finance from reputable institutions[15]. - The leadership team emphasizes the importance of public relations and corporate governance in their strategic initiatives[16]. - The company has a strong leadership team with extensive experience in finance and management across multiple industries[19][20][21]. - Charles Shane Smith appointed as Executive Director and CEO of Smithfield Foods since August 11, 2021, overseeing daily operations of the vertically integrated business[18]. Sustainability and Social Responsibility - The company was included in the Hang Seng Sustainable Development Enterprises Index and received an A+ rating in 2021, with MSCI upgrading its ESG rating to BBB, indicating recognition of its sustainability performance[75]. - The company actively engages with its community and stakeholders, emphasizing its responsibility to give back to those who have supported its achievements[75]. - The company’s sustainability measures are driven by its business units under the guidance of the Environmental, Social, and Governance Committee[75]. - The company reported a significant charitable contribution of USD 7 million during the review period[121]. Financial Position and Cash Flow - As of December 31, 2021, the company had cash and bank balances of $1.556 billion, with a current ratio of 1.7, down from 1.9 in 2020[56]. - The company’s unused bank financing amounted to $5.796 billion as of December 31, 2021, compared to $5.032 billion in 2020[56]. - The total liabilities rose to $10,724 million in 2021, up from $7,730 million in 2020, indicating a significant increase of 38.7%[164]. - The company’s net assets decreased to $9,687 million in 2021 from $10,985 million in 2020, a reduction of 11.8%[164]. - The net cash generated from operating activities was $1.822 billion, a decrease from $2.357 billion in 2020, primarily due to reduced contributions from the Chinese business[57]. Investment and Acquisitions - The company completed the acquisition of 100% of Mecom Group on June 17, 2021, enhancing its operational presence in Slovakia and Hungary[69]. - On July 7, 2021, the company increased its stake in GCM from 50% to 66%, which is a key investment in Mexico's pork production market[69]. - The company has invested in joint ventures for renewable natural gas production in the US, with Align completing operational measures and Monarch adding two new projects in 2021[70]. Risk Management - The company actively manages commodity price risks through strategic inventory management and hedging activities to mitigate the impact of price volatility on its operations[72]. - The company’s risk management system is deemed effective, with ongoing assessments and monitoring of major risks and their mitigation strategies[71]. - The group has conducted an enterprise risk assessment in 2021 to analyze and report on major risks and establish relevant monitoring measures[107]. Shareholder Information - The company proposed a final dividend of HKD 0.14 per share for the year ended December 31, 2021, compared to HKD 0.125 per share in 2020, resulting in a total dividend of HKD 0.19 per share for 2021, amounting to approximately HKD 25.34 billion or USD 3.25 billion[116]. - The total distributable reserves of the company as of December 31, 2021, amounted to USD 2.754 billion[120]. - The company has no significant contracts with any major shareholders during the review period[130]. - The company has no plans for significant mergers or acquisitions disclosed in the report[130].

Revenue and Profitability - WH Group reported a 6.8% increase in revenue, reaching $13.331 billion for the six months ended June 30, 2021, compared to $12.481 billion in the same period of 2020[9]. - The company sold 1,614 thousand tons of meat products, a 2.5% increase from 1,575 thousand tons in the previous year, and pork sales rose by 10.1% to 2,138 thousand tons from 1,942 thousand tons[8]. - Operating profit decreased slightly by 0.5%, amounting to $920 million, compared to $925 million in the same period last year[9]. - Profit attributable to owners of the company before biological fair value adjustments fell by 2.0% to $539 million, down from $550 million in the previous year[9]. - Total revenue for the company rose by 6.8% to $13.33 billion, with meat products revenue increasing by 10.8% to $6.46 billion and other revenue up by 43.0% to $728 million[15][18]. - Operating profit for meat products increased by 17.6% to $816 million, while pork segment operating profit dropped by 71.1% to $77 million due to narrowing price spreads[15][19]. - The company reported a profit of $14 million from its joint ventures in Mexico during the review period, a significant increase from $2 million in the comparative period[37]. - The company achieved a profit before tax of $977 million, which is a decrease of 8.5% from $1,065 million in the prior year[54]. - The net profit for the period was $770 million, down from $843 million in the same period last year, reflecting a decline of 8.7%[54]. Market Performance and Sales - The average price of live pigs in China during the reporting period was RMB 25.94 per kilogram (approximately $4.01), a decrease of 23.6% compared to the previous period[11]. - Total pork imports into China reached 2.95 million tons, with a year-on-year growth rate of 4.5%, down from nearly double in the previous period[11]. - The U.S. total animal protein production increased by 1.8%, with pork production rising by 1.7% during the reporting period[12]. - U.S. pork exports rose by 0.6% to 1.48 million tons, while exports to China fell by 18.4% due to significant price spread narrowing[13]. - Revenue from the U.S. meat products segment grew by 13.6% to $3.87 billion, driven by increased demand and pricing adjustments[17][18]. - European pork revenue increased by 10.8% to $573 million, supported by higher sales volume despite unfavorable pricing[19][20]. - The company's Chinese operations accounted for 40.9% of total revenue and 57.0% of operating profit during the review period[16]. Financial Position and Cash Flow - Cash and bank balances as of June 30, 2021, were $1.704 billion, up from $1.599 billion as of December 31, 2020[24]. - The current ratio as of June 30, 2021, was 1.7, down from 1.9 as of December 31, 2020, indicating a slight decrease in liquidity[24]. - Net cash inflow from operating activities was $272 million, a significant drop from $1.219 billion in the previous period, mainly due to increased inventory and accounts receivable[25]. - The company has unutilized bank financing of $5.635 billion as of June 30, 2021, compared to $5.032 billion as of December 31, 2020[24]. - As of June 30, 2021, the total outstanding bank borrowings amounted to $2.876 billion, an increase from $2.706 billion as of December 31, 2020[28]. - The debt-to-equity ratio was 25.1% and the net debt-to-equity ratio was 10.1% as of June 30, 2021, compared to 24.4% and 9.9% respectively as of December 31, 2020[31]. - The average interest rate on borrowings was 3.4% as of June 30, 2021, slightly down from 3.5% as of December 31, 2020[32]. - The company reported a total comprehensive income of $875 million for the six months ended June 30, 2021[58]. Capital Expenditures and Investments - Capital expenditures for the review period amounted to $321 million, an increase from $234 million in the same period last year, representing a 37.1% increase[39]. - In China, capital expenditures were $215 million, significantly higher than $59 million in the previous year, indicating a substantial investment in vertical integration facilities[40]. - In the United States, capital expenditures were $78 million, down from $144 million in the previous year, reflecting a decrease of 45.8%[39]. - The company completed the acquisition of 100% of Mecom Group on June 17, 2021, which is expected to enhance operational synergies in Central Europe[36]. - The fair value of identifiable assets and liabilities at the acquisition date was estimated at $54 million, including property, plant, and equipment valued at $52 million, and inventory valued at $15 million[94]. Risk Management and Sustainability - The company actively manages commodity price risks through strategic inventory management and hedging activities to mitigate the impact of price volatility[42]. - The company received an A+ rating in the Hang Seng Sustainable Development Corporate Index, highlighting its commitment to sustainability[47]. - The company is committed to providing high-quality products to consumers while maintaining its industry leadership and creating long-term value for shareholders, employees, and the community[48]. - The company is focused on risk management and has established a risk management committee to oversee these efforts[143]. Corporate Governance and Leadership - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with all standards during the review period[135]. - The board of directors has committed to maintaining good corporate governance practices and has complied with all applicable code provisions during the review period, with some exceptions noted[136]. - The roles of Chairman and CEO were held by the same individual during the review period, but the CEO position was separated on August 12, 2021, with a new CEO appointed[137]. - The company has made several board appointments and resignations, including the appointment of a new CEO and executive directors[138]. - The audit committee consists of three independent non-executive directors, including Mr. Li Gangwei (Chairman), Mr. Huang Ming, and Mr. Liu Zhantian[140].

Financial Performance - For the six months ended June 30, 2019, the company reported a revenue of $11,127 million, a decrease of 0.4% compared to the same period in 2018[9]. - The operating profit for the same period was $765 million, reflecting a decline of 11.8% year-over-year[9]. - Profit attributable to the company's owners (before biological fair value adjustments) decreased by 16.9% to $463 million[9]. - Total revenue for the company decreased by 0.3% to $5.886 billion, with a notable decline in the fresh pork segment in the U.S. by 2.5%[16]. - The operating profit for the company was $761 million, a decrease of 3.4% compared to the previous period, primarily due to rising raw material costs[17]. - The meat products segment accounted for 52.9% of total revenue, with a slight decrease in revenue to $5.886 billion, while the operating profit for this segment fell by 3.4%[14]. - In the fresh pork segment, revenue increased by 0.2% to $4.600 billion, with a significant profit increase in China by 31.6%[18]. - The company reported a profit of $5 million from its joint ventures in Mexico during the review period, down from $15 million in the previous period[37]. - The company reported a profit of $569 million for the period, with total comprehensive income amounting to $790 million[53]. - The group reported a pre-tax profit of $816 million for the six months ended June 30, 2019[82]. Market Dynamics - The total number of live hogs sold was 10,582 thousand, an increase from 10,127 thousand in the previous year[8]. - The total number of hogs slaughtered was 28,233 thousand, up from 27,832 thousand in the previous year[8]. - The average price of live hogs in China during the review period was RMB 14.3 per kilogram (approximately $2.1), an increase of 16.1% compared to the previous period[11]. - The total import volume of pork increased by 26.3% during the review period, driven by rising domestic prices[11]. - The number of breeding sows decreased by 26.7% year-over-year, indicating a tightening supply in the future[11]. - The U.S. pork and by-products export volume decreased by 4.2%, largely due to a 20% tariff imposed by Mexico, although exports to China increased by 26.1%[12]. - The average pork price in the U.S. decreased by 0.6% during the review period, despite an increase in average live hog prices by 0.9%[12]. - The company anticipates challenges in China due to a widening supply gap for live pigs, leading to rising prices and pressure on meat product margins[44]. - In the U.S., the company faces an oversupply of meat, which is expected to suppress profitability in fresh meat sales[44]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.05 per share, consistent with the previous year[9]. - The interim dividend proposed for the six months ended June 30, 2019, is HK$0.05 per share, totaling approximately HK$736 million (equivalent to about $94 million), consistent with the previous year's dividend[141]. - The company has maintained a consistent dividend policy, with the interim dividend remaining unchanged from the previous year[141]. Debt and Liquidity - Cash and cash equivalents decreased by $142 million to $399 million, while net cash from operating activities increased to $399 million from $134 million[24]. - Total outstanding debt increased to $3.529 billion from $3.134 billion, with a breakdown showing $2.555 billion in the US and $767 million in China[26]. - The liquidity ratio as of June 30, 2019, was 1.7, up from 1.6 at the end of 2018[23]. - The company issued $400 million in senior unsecured notes due in 2029 to refinance existing debt and support working capital[25]. - The company's debt-to-equity ratio was 39.0% and the net debt-to-equity ratio was 35.0% as of June 30, 2019, compared to 37.1% and 30.8% respectively at the end of 2018[29]. Biological Assets and Fair Value Adjustments - The fair value of the company's biological assets was $1.236 billion as of June 30, 2019, up from $1.094 billion at the end of 2018, reflecting a 12.9% increase[33]. - The company’s biological fair value adjustment positively impacted profits by $105 million during the review period, compared to a loss of $44 million in the previous period[33]. - The company recognized a loss of $172 million due to fair value adjustments related to biological assets[48]. Capital Expenditures and Investments - Capital expenditures for the first half of 2019 amounted to $272 million, a decrease from $326 million in the same period of 2018[38]. - The company completed the acquisition of Pini Polonia, contributing to an increase in cash outflow for investment activities[24]. - The group acquired 66.5% of Pini Polonia sp. z o.o. on May 28, 2019, making it a wholly-owned subsidiary, contributing $22 million in revenue and $1 million in pre-tax profit for the period ending June 30, 2019[109]. Employee and Management Compensation - The company employed approximately 108,000 employees as of June 30, 2019, with total payroll expenses amounting to $1.833 billion, an increase from $1.755 billion in the previous period[32]. - Total remuneration for key management personnel amounted to $22 million for the six months ended June 30, 2019, compared to $23 million in 2018, reflecting a decrease of approximately 4.35%[140]. - The total payment to key management personnel includes $6 million in basic salary and allowances, $13 million in performance bonuses, and $3 million in share-based payments[140]. Corporate Governance and Compliance - The company has maintained compliance with corporate governance codes, with the exception of the chairman also serving as CEO, which the board believes provides strong leadership[165]. - The company has implemented a code of conduct for directors regarding securities trading, with all directors confirming compliance except for one instance involving Mr. Guo Lijun[164]. - The company continues to monitor and adjust its incentive plans to ensure they meet strategic objectives and market conditions[159]. Future Outlook and Strategic Initiatives - The company plans to continue expanding sales volume and improving efficiency in Europe to drive growth[17]. - The company is focusing on product structure transformation through new product launches and expanding sales channels[15]. - The company is considering strategic acquisitions to bolster its competitive position, with potential targets identified in the industry[172]. - The management emphasized the importance of adapting to market trends and consumer preferences to maintain a competitive edge[172].

Financial Performance - WH Group reported a total revenue of $22.605 billion in 2018, a 1.0% increase from $22.379 billion in 2017[23]. - The net profit attributable to shareholders decreased by 4.0% to $1.046 billion in 2018 from $1.090 billion in 2017, primarily due to the impact of trade disputes on the fresh pork business in the U.S.[24]. - Operating profit fell by 11.3% to $1.650 billion in 2018 compared to $1.861 billion in 2017[23]. - The company reported basic earnings per share of 7.13 cents in 2018, up from 6.43 cents in 2017[23]. - The company reported a pre-tax profit of $1,411 million for 2018, compared to $1,501 million in 2017, a decline of 6.0%[192]. - Total comprehensive income for the year ended December 31, 2018, was $955 million, compared to $1,536 million in 2017, representing a decrease of approximately 37.7%[193]. - Basic earnings per share for 2018 was $6.43, down from $7.79 in 2017, reflecting a decline of about 17.4%[193]. Sales and Production - The company achieved a total of 20.953 million live hogs sold and 56.068 million hogs slaughtered, representing a year-on-year growth of 3.6% and 4.3% respectively[22]. - WH Group's processed meat sales volume reached 3.361 million tons, a 2.3% increase from 3.285 million tons in 2017[22]. - Fresh pork revenue decreased by 4.1% to $9.136 billion, with a significant drop in operating profit by 55.0% to $246 million[73]. - The total number of pigs slaughtered in 2018 was 56.068 million, a 4.3% increase from 2017[74]. - The revenue from pig farming increased by 20.3% to $688 million, despite a recorded operating loss of $113 million[76]. Market Strategy and Expansion - The company plans to expand its fresh pork scale in China and adjust its meat product structure to meet changing consumer demands[28]. - The company aims to leverage its global resource control and scale advantages to benefit from future industry consolidation[28]. - Europe is identified as a key development area, being the second largest pork market globally, with ongoing capacity expansion from previous acquisitions[29]. - The company aims to continue expanding sales volume and improving efficiency to drive growth in Europe[72]. - The company is focused on enhancing its product offerings and market reach through strategic leadership and management expertise[38]. Governance and Leadership - The management team has been adjusted with new members to enhance organizational structure and efficiency[29]. - The company has a strong leadership team with diverse backgrounds in finance and management, enhancing its strategic decision-making capabilities[38]. - The board consists of three independent non-executive directors, meeting the requirement of having at least three independent directors with appropriate professional qualifications[115]. - The company employs a formal and transparent process for appointing new directors, with recommendations made by the nomination committee[116]. - The board is responsible for guiding the company's strategic objectives and overseeing business management to ensure long-term performance[112]. Financial Position and Ratios - The company’s debt-to-equity ratio improved to 37.1% from 38.9% in the previous year[84]. - The total outstanding loans as of December 31, 2018, amounted to $3.134 billion, a slight decrease from $3.215 billion in 2017, with 78.8% denominated in USD[90]. - The company maintained a current ratio of 1.6 as of December 31, 2018, consistent with the previous year[87]. - The company’s long-term foreign currency issuer default rating was rated BBB+ by Fitch and BBB by S&P, with a stable outlook[95]. Risk Management and Compliance - The company implemented a risk management system to monitor and report on major risks effectively[105]. - The board of directors is committed to maintaining high standards of corporate governance, which is crucial for safeguarding operational integrity and maintaining investor trust[109]. - The company actively complies with the latest corporate governance requirements in China, Hong Kong, and abroad[109]. - The company has complied with relevant laws and regulations without any significant violations during the review period[150]. Environmental and Social Responsibility - The company is committed to environmental protection initiatives, contributing to the well-being of humanity and the planet[29]. - The ESG Committee aims to identify and address major environmental, social, and governance issues impacting stakeholders[130]. - The company is committed to maintaining long-term sustainable development and community engagement[130]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.15 per share, bringing the total dividend for 2018 to HKD 0.20 per share[28]. - The company declared an interim and final dividend amounting to no less than 30% of the profit attributable to equity holders of the parent company[147].