CHINA MER PORT(HK:00144)2024-04-25 08:46Financial 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]