2021-04-12 09:00Financial Performance - The total revenue for 2020 reached HKD 403,846 million, with a growth of 8% compared to the previous year[17]. - The total revenue for 2020 was HKD 403,846 million, representing an 8% decrease from HKD 439,856 million in 2019[21]. - Revenue from the Hong Kong market amounted to HKD 38,268 million, representing 52% of total revenue[17]. - The China market generated HKD 32,589 million in revenue, accounting for 8% of total revenue[17]. - Revenue from the retail segment was HKD 159,619 million, accounting for 40% of total revenue, down 6% from HKD 169,225 million in 2019[21]. - The telecommunications segment, CK Hutchison Group Telecom, generated revenue of HKD 31,179 million, which is 8% of total revenue, down 35% from HKD 47,618 million in 2019[21]. - The energy segment reported a significant drop of 35% in revenue to HKD 31,179 million compared to HKD 47,618 million in the previous year[22]. - The group reported a net profit attributable to ordinary shareholders of HKD 29 billion for 2020, a decrease of 27% compared to 2019[29]. - The basic earnings attributable to shareholders fell by 27% to HKD 29,143 million from HKD 39,830 million in 2019[23]. - The company reported a net profit of HKD 29,000 million, a decrease of 28% from HKD 39,888 million in the previous year[21]. EBITDA and EBIT - The total EBITDA for 2020 reported was HKD 96,944 million, a decrease of 13% compared to HKD 112,068 million in 2019[21]. - EBITDA decreased by 10% to HKD 122,348 million from HKD 136,049 million year-on-year[22]. - The energy segment reported an EBITDA of HKD (23,003) million, reflecting a significant decline of 835% compared to HKD 3,139 million in 2019[21]. - EBITDA from the port and related services was HKD 10,914 million, down 19% from HKD 13,405 million in 2019[21]. - The retail sector's EBITDA and EBIT for 2020 were HKD 14.39 billion and HKD 10.93 billion, representing decreases of 15% and 20% respectively[34]. - EBITDA for the infrastructure sector amounted to HKD 29.06 billion, a 2% increase from 2019, while EBIT decreased by 4% to HKD 18.48 billion[35]. - EBIT total decreased by 23% to HKD 58,304 million in 2020 from HKD 75,344 million in 2019[48]. Market and Operational Highlights - The port and related services segment handled a total throughput of 83.7 million TEUs in 2020[11]. - The retail division operates over 16,000 stores across 27 markets, making it the largest international health and beauty retailer[13]. - The company operates in approximately 50 countries with over 300,000 employees[10]. - The company launched 5G services in multiple regions including Hong Kong, Sweden, Denmark, and Italy[27]. - The group’s digital sales grew by 90% in 2020, driven by the integration of physical stores and online channels[34]. - The company established a new container terminal in Egypt with a total length of 1,200 meters and a 38-year concession agreement, expected to commence operations in 2022[76]. - The throughput in the second half of 2020 increased by 16% compared to the first half of 2020, indicating a recovery in trade volumes[56]. Debt and Financial Position - The company’s total assets increased to HKD 1,254,596 million, up from HKD 1,210,976 million in 2019[23]. - The net debt to total equity ratio improved to 22.2% from 24.8% in the previous year[23]. - The group maintained a strong financial position with cash holdings of HKD 13.5 billion as of December 31, 2020, and a net debt to total capital ratio of 13.1%[121]. - The group has a total net debt of HKD 185.298 billion, with 89% and 1% of this debt denominated in euros and British pounds, respectively[188]. - The weighted average cost of debt for 2020 was 1.7%, down from 2.1% in 2019[171]. - The group’s financing cash inflow net amount was HKD 48.73 billion, a significant increase of 208% from HKD 15.82 billion in the previous year[195]. Strategic Initiatives and Future Outlook - The group plans to continue strict cost control and focus on health and operational safety amid ongoing market uncertainties[33]. - The group expects to maintain a strong financial position in 2021, with a projected further decrease in the net debt to total equity ratio following the completion of various transactions[44]. - The group aims to optimize its retail "online and offline" platform strategy and maintain strict cost control to improve free cash flow significantly compared to 2019[44]. - The group plans to enhance digital and access solutions to adapt to changing customer demands in 2021[173]. COVID-19 Response - The group has implemented a series of safety measures for employees and customers in response to the COVID-19 pandemic, including financial assistance for customers[43]. - Watsons Group repurposed part of its facilities in Hong Kong to produce its own brand of masks in response to COVID-19[27].