On March 21, GLONGHUI (00001.HK) announced its annual results. For the year ended December 31, 2023, the Group's total revenue was HK$461,558 billion, up 0.95% year on year; total EBITDA was HK$104.88 billion, down 11.87% year on year; profit attributable to common shareholders was HK$23.243 billion, a decrease of 33.34% year on year, and proposed final interest of HK$1.775 per share.

The operating environment for the Group's business this year was unpredictable. The overall economic trend improved in the second half of the year, and inflation in Europe and the US also eased. However, excluding food and energy prices, inflation was still far higher than the central bank's target. The dollar surged in the third quarter and declined in the fourth quarter. Monetary policy remained tight, and the federal funds rate rose to 5.25 to 5.5% in July and remained unchanged for the rest of the year. Due to uncertain demand prospects and heightened geopolitical risks, energy prices continued to fluctuate significantly, especially in the third quarter. Growth varies greatly from region to region. Although the US continues to show resilience, the situation in Europe, Hong Kong and the mainland is still full of challenges.

Overall, various types of resistance continued to affect the profit contributions of the port sector and Cenovus Energy. The latter was severely affected by first-in, first-out losses caused by the sharp drop in commodity prices in the fourth quarter, offsetting improved operating performance. Despite rising earnings in the telecommunications sector, it is still adversely affected by rising costs and prices. The infrastructure sector continued to perform steadily. Despite continued sluggish consumption in Hong Kong and the Mainland, the overall retail business continued to grow strongly year-on-year in the second half of the year.

The Group's annual profit performance was most affected by the fact that no one-time revenue was recorded in 2023. According to the post-IFRS 16 benchmark, the basic profit decreased by 9% compared to the one-time income excluding 2022, while according to the reported profit benchmark, the Group's profit decreased by 36%. The cash generation situation remained stable. Cash flow from operating income (excluding one-time income in 2022) decreased by less than 5% and free cash flow increased by 12% year-on-year.

The Group continues to seek out transactions that can add value. Specifically, the British Telecom merger announced in the first half of the year has entered the first stage of review by the UK Competition Authority, showing that progress has been satisfactory so far. However, important preconditions relating to Italy's proposed online joint venture agreement could not be met, and as a result, such an agreement was terminated in February 2024. According to the pre-IFRS 16 benchmark, after excluding one-time income for 2022, profit attributable to common shareholders was HK$23.243 billion. Compared with last year, it decreased by 8% in the reporting currency and 7% in local currency. A decrease of 33% compared to 2022 in the reported currency and local currency based on the reported profit basis.