CHINA MER PORT(HK:00144)2023-03-31 08:31Financial 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]