Land and Property Development - The group maintains a land reserve of 3.7 million square meters for its mainland development properties, focusing on first and second-tier cities[2] - The group’s land reserve for Hong Kong properties is approximately 3 million square feet, with a focus on luxury residential developments in Kowloon Tong[2] - The group has a total land reserve of 3.7 million square feet, with significant projects in Kowloon East and various residential developments[62] - The current land bank includes 3 million square feet in Hong Kong and 3.7 million square meters in mainland China[173] - The group has acquired 12 land parcels in Suzhou, Hangzhou, Foshan, and Guangzhou, with a total consideration of RMB 18.1 billion, covering a total floor area of 810,000 square meters[63] Financial Performance - Adjusted net profit decreased by 11% to HKD 6.51 billion, while total assets amounted to HKD 227.3 billion, and the asset-to-liability ratio stood at 18.5%[30] - The group's total assets (excluding cash) reached HKD 210 billion, with real estate, logistics, CME2, and other assets accounting for 80%, 8%, 8%, and 4% respectively[25] - The group's revenue for 2018 was HKD 21,055 million, a decrease of 13% compared to HKD 24,321 million in 2017[34] - Operating profit fell to HKD 8,752 million, down 36% from HKD 6,458 million in the previous year[34] - Shareholders' profit attributable to the company dropped by 50% to HKD 6,623 million, compared to HKD 13,119 million in 2017[34] - The total assets of the group increased by 2% to HKD 227,349 million from HKD 222,647 million in 2017[34] - The total equity decreased by 5% to HKD 138,760 million from HKD 145,471 million in 2017[34] - The group's revenue decreased by 13% to HKD 21.055 billion, compared to HKD 24.321 billion in 2017, reflecting a 28% increase in investment property income and a 24% decline in development property income[140] Investment Properties - The group’s investment properties in mainland China are primarily located in key cities such as Changsha, Chengdu, Chongqing, Suzhou, and Wuxi, with the Changsha International Financial Center and Chengdu International Financial Center being comparable in scale and importance to Hong Kong's Harbour City[2] - The fair value of the investment property portfolio was HKD 74.7 billion as of December 31, 2018, down from HKD 82.1 billion in 2017, with revaluation gains netting HKD 4.465 billion[142] - Investment property income rose by 28% to HKD 3.586 billion, with operating profit increasing by 26% to HKD 1.984 billion, benefiting from contributions from Chengdu International Financial Center and the newly opened Changsha International Finance Center[140] Hotel Operations - The hotel network managed by the group has expanded to 17 hotels, including 4 modern Niccolo hotels and 13 Marco Polo hotels, with a new Niccolo hotel in Suzhou expected to open in 2020[3] - The average revenue per available room (RevPAR) for the Chengdu Niccolo Hotel increased by 28% with an occupancy rate of 85%[84] - Kowloon Warehouse Group operates 17 hotels in the Asia-Pacific region, totaling 5,750 rooms, with hotel revenue increasing by 22% year-on-year[102] - The company’s hotel, The Murray, Hong Kong, was recognized as one of the World's Greatest Places 2018 by Time Magazine[122] Logistics Operations - The group’s logistics operations are supported by modern container terminals and air cargo stations, which are crucial for maintaining Hong Kong's status as an international trade and transport hub[3] - The logistics operations continue to be a leading global player, although the port business performance is slowing down due to competition[28] - Modern Container Terminal's revenue decreased by 4% to HKD 2.616 billion, with operating profit declining by 9% to HKD 597 million[111] - The throughput at Modern Container Terminal in Hong Kong grew moderately by 2% to 530,000 TEUs, while Shenzhen's throughput decreased by 7%[112] Community and Corporate Social Responsibility - The group actively supports various community initiatives, promoting the concept of "corporate social responsibility" through projects like the "School Activation" program[3] - The company supported 76 secondary schools through its "School Activation" initiative, benefiting over 66,000 students[131] - The company has implemented a clear corporate social responsibility governance framework to manage environmental, social, and governance issues[129] Awards and Recognition - The group received multiple awards in 2018, including recognition in the top 100 commercial real estate performance awards in China[3] - Kowloon Warehouse Group was ranked fourth in the 2018 China Commercial Real Estate TOP100 by the media outlet "Guandian" and received the Annual Responsibility Brand Award at the 7th China Public Welfare Festival[117] - The company received the International Real Estate Award for Comprehensive Development Project from Forbes[120] Strategic Investments and Future Plans - The group’s long-term strategic investment in CME2 aims to reinvest capital and profits released from CME1 into larger market opportunities[3] - The group is exploring investment opportunities in emerging economies to enhance asset performance and generate direct returns[175] - Future capital commitments are estimated at HKD 27.182 billion, with HKD 13.804 billion already committed as of December 31, 2018[168] Corporate Governance - The board is committed to maintaining high corporate governance standards, ensuring accountability and sustainable development[176] - The board consists of ten members, equally divided between executive and independent non-executive directors, promoting diversity in skills and experience[181] - The company has adopted a formal nomination policy since January 2019 to ensure a balanced skill set and diversity among board members[186]