Annual Report 2019

Report of the Directors 81 ANNUAL REPORT 2019 The Board is pleased to present the Company’s annual report together with the audited financial statements for the year ended 31 December 2019. All references in this section “Report of the Directors” to other sections in this Annual Report form part of this section. PRINCIPAL ACTIVITIES AND GEOGRAPHICAL ANALYSIS OF OPERATIONS The Company is an investment holding company. The principal activities of its subsidiaries, associates and joint ventures are set out in notes 44 to 46 to the consolidated financial statements, respectively. An analysis of the Group’s performance for the current year by operating segments is set out in note 6 to the consolidated financial statements. RESULTS AND APPROPRIATIONS The results of the Group for the year are set out in the consolidated statement of profit or loss on page 106. The Board had declared an interim dividend of 22 HK cents per share, totaling HK$752 million, which was paid on 15 November 2019. The Directors have resolved to recommend the payment of a final scrip dividend of 58 HK cents per share, totaling HK$2,000 million for the year ended 31 December 2019 by way of an issue of new shares with an alternative to the shareholders of the Company (the “ Shareholders ”) to elect to receive the final dividend (or part thereof) in cash in lieu of such allotment (2018: scrip dividend of 73 HK cents per share by way of issue of new shares equivalent with cash alternative), payable on or around 30 July 2020 to the shareholders whose names appear on the register of members of the Company (the “ Register of Members ”) on 19 June 2020 (the “ Scrip Dividend Scheme ”). Subject to the approval by the Shareholders at the annual general meeting of the Company to be held on 15 June 2020, a circular containing details of the Scrip Dividend Scheme together with the relevant election form will be sent to shareholders on or around 24 June 2020. The Scrip Dividend Scheme is conditional upon the granting by the Listing Committee of the Stock Exchange of the listing of and permission to deal in the new shares to be issued pursuant thereto. It is expected that the final dividend warrants and certificates for the new shares will be despatched to Shareholders on or around 30 July 2020. BUSINESS REVIEW A review of the business of the Group during the year and a discussion on the Group’s prospects are provided in the Chairman’s Statement and the Management Discussion and Analysis on pages 6 to 13 and pages 14 to 29 of this Annual Report respectively. Description of key risk factors and uncertainties that the Group is facing is provided in the Management Discussion and Analysis on pages 14 to 29 of this Annual Report while the financial risk management of the Group can be found in note 3 to the consolidated financial statements. An analysis of the Group’s performance during the year using financial key performance indicators is provided in Financial Highlights on inside front cover of this Annual Report. In addition, discussions on the Group’s compliance with relevant laws and regulations which have a significant impact on the Group, relationships with its key stakeholders including shareholders, employees, customers and suppliers etc and environmental policies and performance are contained in the Management Discussion and Analysis, Corporate Governance Report and Environmental, Social and Governance Report on pages 14 to 29, pages 32 to 43 and pages 44 to 74 of this Annual Report respectively.