Annual Report 2019

7 ANNUAL REPORT 2019 It is with great delight that I present China Merchants Port Holdings Company Limited (the “Company ”) and its subsidiaries’ (the “ Group ”) 2019 annual report and its audited financial statements for the year ended 31 December 2019. In 2019, the global economy sustained a moderate upward trend, yet growth momentum remained weak. The global economy and trade have been undermined by the uncertainties of the US-China trade frictions and geopolitical tensions. Confronted with the complex and changing external environment, the Group firmly adhered to the strategic principle of “leveraging on its long-term strategy, tapping the current edges, driving through technology and embracing changes” with an unwavering aspiration to reinforce its foundation and made innovation with a pragmatic attitude. The Group also steadily pursued various tasks with a focus on the development of homebase port, overseas expansion, comprehensive development, innovative development, operation management, and marketing and commerce, and successfully achieved its strategic goals and various operational objectives set out for the year. In 2019, the overall operating performance of the Group was satisfactory with the steady growth of the business. In terms of ports operation, the global port projects invested by the Group delivered a container throughput of 111.72 million TEUs during the year, up 2.4% over 2018. In terms of the development of homebase port, the Group continuously propelled its West Shenzhen homebase port to become a world-class leading port and developed its overseas homebase ports in Sri Lanka into regional leading ports in South Asia. As for overseas expansion, the Group actively grasped investment opportunities in relation to port, logistics and related infrastructure, and achieved critical breakthroughs. With respect to comprehensive development, the Group continued to push forward the implementation of the comprehensive development model of “Port-Park-City” and achieved staged progress. With regard to innovative development, the Group proactively pushed forward the “digitalisation strategy” and continued to build “CM ePort” in a larger scope. Regarding operation management, the Group strived to develop an operation management system for sustainable value creation. As for marketing and commerce, various business promotions and marketing activities were planned and coordinated to strengthen and deepen customer relations, as well as to promote industry influence. OPERATING RESULTS In 2019, the Group’s revenue reached HK$8,898 million, representing a decrease of 12.4% year-on-year, which was mainly attributed to the disposal of the entire equity interest held in China Merchants Port Group Co., Ltd. (formerly known as “Shenzhen Chiwan Wharf Holdings Limited”, “ Shenzhen Chiwan ”) in the previous year. Profit attributable to equity holders of the Company amounted to HK$8,362 million, representing an increase of 15.4% over 2018. Of this amount, recurrent profit Note 1 was HK$4,163 million, decreased by 3.1% over 2018. DIVIDENDS The Board of Directors of the Company has resolved to propose at the forthcoming Annual General Meeting the payment of a final dividend of 58 HK cents per ordinary share. Together with the interim dividend of 22 HK cents per share, the total dividend for the year amounted to 80 HK cents per ordinary share, representing a full-year payout ratio of 32.9%. Subject to the approval by shareholders at the forthcoming Annual General Meeting, the final dividend for ordinary shares will be payable on or around 30 July 2020 to shareholders whose names appear on the register of members of the Company on 19 June 2020. Note 1 Profit attributable to equity holders of the Company net of non-recurrent gains after tax. Non-recurrent gains include: for 2019, change in fair value of financial assets and liabilities at fair value through profit or loss, change in fair value of investment properties, gain on deemed disposal of interest in a joint venture and gain on resumption of certain land parcels at Qianhai and Shantou; while for 2018, gain on disposal of subsidiaries, change in fair value of financial assets and liabilities at fair value through profit or loss and change in fair value of investment properties.