According to the Zhitong Finance App, Changhe (00001) announced the results for the year ended December 31, 2023. The Group's total revenue after receiving IFRS 16 was HK$461,558 billion, up 0.95% year on year; total EBITDA was HK$127.309 billion, down 10.43% year on year; profit attributable to shareholders was HK$23.5 billion, down 8.71% year on year; and plans to pay a final dividend of HK$1.775 per share.

According to the announcement, the port and related service departments operated 293 berths in 2023 and handled a total of 82.1 million 20-foot standard containers, down 3% from 2022, due to the slow recovery in global demand in major economies. However, there was an improvement trend in the fourth quarter, mainly due to Hutchison Port Trust being affected by a recovery in freight volume at Yantian Port, and Asia, Australia and other regions were driven by improved consumer sentiment in Southeast Asia, the Middle East and Central America, which increased 9% and 1% respectively in the second half of 2023 and the second half of 2022.

Due to a 24% drop in warehouse revenue in 2023 and a shipping business joint company's performance was less than ideal due to a sharp drop in freight rates, the division achieved total revenue of HK$40,851 million, EBITDA of HK$13.628 million, and EBIT of HK$9.328 billion, representing a decrease of 7%, 14% and 18%, respectively, from 2022. However, as freight volume improved in the fourth quarter and Mexico's storage revenue increased due to increased imports of fully loaded containers, revenue, EBITDA and EBIT for the second half of the year increased 6%, 9%, and 15%, respectively, compared to the first half of 2023.

At the end of December 2023, the retail division operated 16,491 stores in 28 markets, an increase of 2% over last year. The division's total revenue, EBITDA and EBIT were HK$183.344 billion, HK$16.226 billion and HK$12.888 billion respectively, up 8%, 13% and 17% respectively in the reporting currency compared to last year; in local currency, total revenue, EBITDA and EBIT increased 8%, 11% and 14%, respectively. The year-on-year improvement was mainly due to good business performance in Europe and Asia, but was partially offset by poor performance in Hong Kong and Mainland China due to poor store traffic and sluggish consumer motivation.

The Health & Beauty Products segment accounted for 87% of the retail sector's revenue last year. Due to a significant 10% increase in store sales, total sales in local currency increased by 12%, driving EBITDA and EBIT in local currency to increase 15% and 18%, respectively, compared to last year. The performance of most health and beauty products businesses in Europe and Asia surpassed pre-pandemic levels. The European health and beauty products business increased 14% in EBITDA and EBIT in local currency compared to last year, and achieved a 10% increase in store sales over the same period last year. The increase was mainly due to the business in the UK, Germany and Poland. The Asian health and beauty products business increased 23% and 27%, respectively, in local currency, mainly driven by increased sales due to increased customer traffic in stores and the expansion of the store network, and achieved a strong 16% year-on-year increase in store sales. Despite weak trade conditions, China's health and beauty products business's EBITDA and EBIT in local currency increased by HK$22 million and HK$123 million respectively compared to last year, mainly due to increased gross profit and productivity and improved store opening strategies.

Looking ahead, businesses in Europe and Asia, which have surpassed pre-pandemic levels, should continue to achieve steady performance, while business performance in the Mainland and Hong Kong, China is also expected to improve by optimizing the store network and implementing various solutions. With its loyal customer base of 159 million, the retail sector will continue to increase customer engagement and long-term value, focus on store quality rather than quantity, maintain a short store payback period, and seek revenue growth through the implementation of its online and offline platform strategies.