ANNUAL REPORT 2019 93

CONSOLIDATED INCOME STATEMENT

For the year ended 31 December 2019

2019 2018
Note HK$’000 HK$’000

Revenue and other income 4 11,120,922 11,482,562

Cost of services rendered (3,881,596) (4,143,451)

Staff costs (287,994) (286,534)
Depreciation and amortisation (3,079,672) (3,076,015)
Other operating income 96,354 129,122
Other operating expenses (537,087) (553,942)
Total operating expenses (7,689,995) (7,930,820)

Operating profit 5 3,430,927 3,551,742

Interest and other finance costs 6 (1,075,228) (1,021,801)

Share of profits less losses after tax of associated companies (92,296) (106,904)
Share of profits less losses after tax of joint ventures 38,338 54,279
Impairment of goodwill 14(b) – (11,359,000)
Impairment of investment in a joint venture 16 – (930,000)
Profit/(loss) before tax 2,301,741 (9,811,684)

Tax 7 (479,988) (434,368)

Profit/(loss) for the year 1,821,753 (10,246,052)

Allocated as: Profit attributable to non-controlling interests (1,293,542) (1,305,268)

Profit/(loss) attributable to unitholders of HPH Trust 9 528,211 (11,551,320)

HK cents HK cents
Earnings/(loss) per unit attributable to unitholders of HPH Trust 9 6.06 (132.60)
94 HUTCHISON PORT HOLDINGS TRUST

CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
For the year ended 31 December 2019

2019 2018
HK$’000 HK$’000

Profit/(loss) for the year 1,821,753 (10,246,052)

Other comprehensive loss:

Item that will not be reclassified to profit or loss:
Remeasurement of defined benefit plans 31,118 40,815
Investments
Valuation losses taken to reserves (91,587) –
Items that may be reclassified subsequently to profit or loss:
Cash flow hedges arising from cross currency interest rate swap contracts and
interest rate swap contracts
Fair value losses recognised directly in reserves (35,634) (85,522)
Costs of hedging
Changes in fair value of currency basis spread (8,259) (10,524)
Share of other comprehensive loss of associated companies (11,345) (23,148)
Share of other comprehensive loss of joint ventures (910) (595)
Investments
Valuation losses taken to reserves – (97,044)
Currency translation differences (115,447) (193,381)
Total other comprehensive loss for the year (232,064) (369,399)

Total comprehensive income/(loss) for the year 1,589,689 (10,615,451)

Allocated as: Attributable to non-controlling interests (1,240,768) (1,201,250)

Attributable to unitholders of HPH Trust 348,921 (11,816,701)

Note:
Items shown within other comprehensive loss have no tax effect.
 ANNUAL REPORT 2019 95

CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
At 31 December 2019

2019 2018
Note HK$’000 HK$’000

ASSETS
Non-current assets
Fixed assets 10 23,789,534 24,629,553
Projects under development 11 648,058 996,397
Leasehold land and land use rights 12 37,046,989 38,373,329
Railway usage rights 13 10,813 11,619
Customer relationships 14(a) 5,501,771 5,835,978
Goodwill 14(b) 11,270,044 11,270,044
Associated companies 15 952,533 945,342
Joint ventures 16 2,656,680 2,683,777
Other non-current assets 17 560,682 560,929
Deferred tax assets 18 24,997 18,528
82,462,101 85,325,496

Current assets
Cash and bank balances 19 7,040,166 6,566,354
Trade and other receivables 20 3,056,031 3,060,915
Inventories 102,354 103,137
10,198,551 9,730,406

Current liabilities
Trade and other payables 21 5,783,133 5,928,221
Bank and other debts 22 4,097,271 2,517,506
Current tax liabilities 473,874 358,228
10,354,278 8,803,955

Net current (liabilities)/assets (155,727) 926,451

Total assets less current liabilities 82,306,374 86,251,947

Non-current liabilities
Bank and other debts 22 26,459,077 28,974,121
Pension obligations 23 41,747 56,601
Deferred tax liabilities 18 9,918,159 10,290,856
Other non-current liabilities 24 324,068 262,210
36,743,051 39,583,788

Net assets 45,563,323 46,668,159

EQUITY
Units in issue 25 68,553,839 68,553,839
Reserves (42,702,921) (41,786,104)
Net assets attributable to unitholders of HPH Trust 25,850,918 26,767,735

Non-controlling interests 19,712,405 19,900,424

Total equity 45,563,323 46,668,159
96 HUTCHISON PORT HOLDINGS TRUST

STATEMENT OF FINANCIAL POSITION OF

HUTCHISON PORT HOLDINGS TRUST
At 31 December 2019

2019 2018
Note HK$’000 HK$’000

ASSETS
Non-current asset
Investment in a subsidiary company 26 25,088,891 26,390,258

Current assets
Cash and bank balances 19 2,530 4,525
Trade and other receivables 20 1,961 337
4,491 4,862

Current liability
Trade and other payables 21 16,836 20,555

Net current liabilities (12,345) (15,693)

Total assets less current liabilities 25,076,546 26,374,565

EQUITY
Units in issue 25 68,553,839 68,553,839
Reserves (43,477,293) (42,179,274)
Total equity 25,076,546 26,374,565
 ANNUAL REPORT 2019 97

CONSOLIDATED STATEMENT OF
CASH FLOWS
For the year ended 31 December 2019

2019 2018
Note HK$’000 HK$’000

Operating activities

Cash generated from operations 27(a) 6,369,406 6,055,269

Interest and other finance costs paid (999,498) (984,652)
Tax paid (735,243) (825,547)
Net cash from operating activities 4,634,665 4,245,070

Investing activities

Loan to an associated company (133,200) (40,050)

Purchase of fixed assets and projects under development (581,362) (743,559)
Proceeds on disposal of fixed assets 15,733 22,074
Dividends received from investments 25,749 48,848
Dividends received from associated companies and joint ventures 102,472 78,452
Interest received 147,819 99,979
Repayment of loans by joint ventures 1,600 181,700
Net cash used in investing activities (421,189) (352,556)

Financing activities

New borrowings 6,210,000 5,040,750

Repayment of borrowings (7,219,040) (6,077,010)
Upfront debt transaction costs and facilities fees of borrowings (40,834) (8,775)
Principal elements of lease payments (4,379) –
Distributions to unitholders of HPH Trust (1,261,367) (1,709,118)
Dividends to non-controlling interests (1,424,044) (1,340,089)
Net cash used in financing activities (3,739,664) (4,094,242)

Net changes in cash and cash equivalents 473,812 (201,728)

Cash and cash equivalents at beginning of the year 6,524,354 6,726,082
Cash and cash equivalents at end of the year 19 6,998,166 6,524,354
98 HUTCHISON PORT HOLDINGS TRUST

CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
For the year ended 31 December 2019

Exchange Costs of Attributable Non-

Units and other Revaluation Hedging hedging Pension Accumulated to controlling
in issue reserves reserve reserve reserve reserve losses unitholders interests Total
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

Group
At 1 January 2019 68,553,839 (133,545) (151,515) (67,158) (30,102) 181,989 (41,585,773) 26,767,735 19,900,424 46,668,159

Profit for the year – – – – – – 528,211 528,211 1,293,542 1,821,753

Other comprehensive
(loss)/income:
Remeasurement of
defined benefit plans – – – – – 31,118 – 31,118 – 31,118
Investments:
Valuation losses taken to
reserves – – (91,587) – – – – (91,587) – (91,587)
Cash flow hedges
arising from cross
currency interest rate
swap contracts and
interest rate
swap contracts
Fair value losses
recognised directly in
reserves – – – (35,634) – – – (35,634) – (35,634)
Costs of hedging
Changes in fair value of
currency basis spread – – – – (8,259) – – (8,259) – (8,259)
Share of other
comprehensive loss of
associated companies – (7,835) – – – – – (7,835) (3,510) (11,345)
Share of other
comprehensive loss of
joint ventures – (910) – – – – – (910) – (910)
Currency translation
differences – (66,183) – – – – – (66,183) (49,264) (115,447)
Total other comprehensive
(loss)/income – (74,928) (91,587) (35,634) (8,259) 31,118 – (179,290) (52,774) (232,064)
Total comprehensive
(loss)/income – (74,928) (91,587) (35,634) (8,259) 31,118 528,211 348,921 1,240,768 1,589,689
Transferred (from)/to reserve – (4,217) – – – – (154) (4,371) 4,371 –
Transactions with owners:
Distributions – – – – – – (1,261,367) (1,261,367) – (1,261,367)
Dividends – – – – – – – – (1,433,158) (1,433,158)
At 31 December 2019 68,553,839 (212,690) (243,102) (102,792) (38,361) 213,107 (42,319,083) 25,850,918 19,712,405 45,563,323
 ANNUAL REPORT 2019 99

CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
For the year ended 31 December 2019

Exchange Costs of Attributable Non–

Units and other Revaluation Hedging hedging Pension Accumulated to controlling
in issue reserves reserve reserve reserve reserve losses unitholders interests Total
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

Group
At 31 December 2017 68,553,839 (19,474) (55,471) (1,214) – 141,174 (28,325,300) 40,293,554 20,028,352 60,321,906
Adjustment on adoption
of HKFRS 9 – – – 19,578 (19,578) – – – – –
At 1 January 2018 68,553,839 (19,474) (55,471) 18,364 (19,578) 141,174 (28,325,300) 40,293,554 20,028,352 60,321,906

(Loss)/profit for the year – – – – – – (11,551,320) (11,551,320) 1,305,268 (10,246,052)

Other comprehensive
(loss)/income:
Remeasurement of
defined benefit plans – – – – – 40,815 – 40,815 – 40,815
Investments:
Valuation losses taken
to reserves – – (97,044) – – – – (97,044) – (97,044)
Cash flow hedges arising
from cross currency
interest rate swap
contracts and interest
rate swap contracts
Fair value losses
recognised directly in
reserves – – – (85,522) – – – (85,522) – (85,522)
Costs of hedging
Changes in fair value
of currency basis
spread – – – – (10,524) – – (10,524) – (10,524)
Share of other
comprehensive loss of
associated companies – (15,198) – – – – – (15,198) (7,950) (23,148)
Share of other
comprehensive (loss)/
income of joint ventures – (1,595) 1,000 – – – – (595) – (595)
Currency translation
differences – (97,313) – – – – – (97,313) (96,068) (193,381)
Total other comprehensive
(loss)/income – (114,106) (96,044) (85,522) (10,524) 40,815 – (265,381) (104,018) (369,399)
Total comprehensive
(loss)/income – (114,106) (96,044) (85,522) (10,524) 40,815 (11,551,320) (11,816,701) 1,201,250 (10,615,451)
Transferred to/(from) reserve – 35 – – – – (35) – – –
Transactions with owners:
Distributions – – – – – – (1,709,118) (1,709,118) – (1,709,118)
Dividends – – – – – – – – (1,329,178) (1,329,178)
At 31 December 2018 68,553,839 (133,545) (151,515) (67,158) (30,102) 181,989 (41,585,773) 26,767,735 19,900,424 46,668,159
100 HUTCHISON PORT HOLDINGS TRUST

STATEMENT OF CHANGES IN EQUITY OF

HUTCHISON PORT HOLDINGS TRUST
For the year ended 31 December 2019

Units Accumulated Attributable to

in issue losses unitholders
HK$’000 HK$’000 HK$’000

Trust
At 1 January 2019 68,553,839 (42,179,274) 26,374,565
Loss and total comprehensive loss for the year – (36,652) (36,652)

Transactions with owners:

Distributions – (1,261,367) (1,261,367)
At 31 December 2019 68,553,839 (43,477,293) 25,076,546

At 1 January 2018 68,553,839 (16,228,331) 52,325,508

Loss and total comprehensive loss for the year – (24,241,825) (24,241,825)

Transactions with owners:

Distributions – (1,709,118) (1,709,118)
At 31 December 2018 68,553,839 (42,179,274) 26,374,565