2020-08-20 09:09Revenue Performance - Total revenue for the six months ended June 30, 2020, was HKD 189,942 million[6]. - Total revenue for the six months ended June 30, 2020, was HKD 189,942 million, a decrease of 12% compared to HKD 217,062 million for the same period in 2019[10]. - Total revenue for the first half of 2020 was HKD 124,651 million, a decrease of 15.4% compared to HKD 147,620 million in the same period of 2019[128]. - Total revenue decreased by 9% to HKD 16.03 billion, while EBITDA fell by 14% to HKD 5.54 billion compared to the same period in 2019[36]. - Total revenue for the first half of 2020 was 1,116 million GBP, a decrease of 4% compared to 1,167 million GBP in the first half of 2019[59]. Segment Performance - Revenue from Europe was HKD 97,294 million, accounting for 51% of total revenue[6]. - Revenue from Mainland China was HKD 14,932 million, representing a 7% increase[6]. - Revenue from Hong Kong was HKD 18,710 million, contributing 10% to total revenue[6]. - The retail segment revenue decreased by 11% to HKD 73,627 million from HKD 83,161 million year-on-year[10]. - The total revenue from the Ports and Related Services segment was HKD 16,031 million, a 9% decrease from HKD 17,550 million in 2019[13]. Profitability Metrics - EBITDA for the same period amounted to HKD 46,946 million[7]. - EBITDA for the six months ended June 30, 2020, was HKD 46,946 million, down 13% from HKD 53,988 million in the previous year[10]. - The basic earnings per share dropped by 93% to HKD 351 from HKD 4,713 in the same period last year[10]. - The company reported a net profit attributable to shareholders of HKD 13,168 million, down 28% from HKD 18,200 million in the same period last year[10]. - The company reported a net profit attributable to ordinary shareholders of HKD 13,000 million, a decrease of 29% from HKD 18,324 million in 2019[13]. Financial Health - The group's net debt to total capital ratio improved by 1.1% to 25.1% due to higher free cash flow and reduced financing costs[16]. - The group's total cash and liquid investments amounted to HKD 149.01 billion, while total bank and other debts reached HKD 354.89 billion, resulting in a net debt of HKD 205.87 billion, with a net debt to total equity ratio of 25.1%[32]. - The group recorded a net profit attributable to shareholders of HKD 9.2 billion for the first half of 2020, following the dilution of its stake in VHA to 22.01% after the merger with TPG[32]. - The group's current assets increased by 3% to HKD 149.015 billion from HKD 144.849 billion at the end of 2019, primarily due to positive cash generated from operations[88]. - The group’s total assets as of June 30, 2020, were valued at HKD 597.63 billion, slightly up from HKD 596.963 billion at the end of 2019[87]. Market Strategy and Outlook - The company plans to expand its market presence in Asia and Australia, which contributed 25% to total revenue[6]. - The company is focusing on new product development and technology innovation to drive future growth[6]. - The group plans to focus on restoring revenue growth while maintaining strict yet flexible cost and capital expenditure controls[34]. - The group anticipates potential improvements in the operating environment in the second half of 2020, contingent on the continuation of recent recovery trends[34]. - The company aims to enhance long-term shareholder returns through predictable earnings, cash flow, and dividend growth while maintaining financial strength and stability[101]. Challenges and Risks - The company experienced a significant decline in sales due to temporary store closures and reduced customer traffic starting in February 2020[43]. - The group's energy business is expected to face operational pressure due to low oil prices and an unpredictable oil market outlook[34]. - The company reported a significant loss in the Husky Energy segment, with an EBITDA of (HKD 2,751 million) compared to a profit of HKD 4,713 million in the previous year[159]. - The company expects continued challenges in the retail and energy sectors due to market conditions, impacting future revenue growth[158]. - The company emphasizes the importance of past performance as historical data and does not guarantee future results, highlighting the risks and uncertainties involved[102]. Corporate Governance - The company emphasizes the importance of effective corporate governance to enhance shareholder value and protect stakeholder interests[120]. - The company has adhered to all corporate governance codes as per the Hong Kong Stock Exchange regulations during the reporting period[121]. - The company's governance framework is designed to foster a culture of high integrity and accountability[120]. - The board of directors and senior management hold significant shares, with the largest shareholder holding approximately 30.22% of the total shares[104]. - The company has not disclosed any new product developments or market expansion strategies in the provided reports[116].