Financial Performance - The group's underlying net profit decreased to HKD 2.798 billion (2023: HKD 3.566 billion), equivalent to HKD 0.92 per share (2023: HKD 1.17 per share), primarily due to a reduction in recognized sales from property development in mainland China and an increase in impairment provisions to HKD 2.018 billion (2023: HKD 1.855 billion) [4] - The group recorded a loss attributable to shareholders of HKD 3.224 billion (2023: profit of HKD 0.945 billion), with a basic loss per share of HKD 1.05 (2023: basic earnings of HKD 0.31) [4] - Group revenue fell by 36% to HKD 12.115 billion (2023: HKD 18.95 billion), with operating profit decreasing by 18% to HKD 5.644 billion (2023: HKD 6.896 billion) [15] - The company reported a net loss of HKD 2,611 million for the year, compared to a profit of HKD 1,105 million in 2023 [47] - The group reported a total loss before tax of HKD 6,316 million for the fiscal year ending December 31, 2024, compared to a profit of HKD 2,195 million in the previous year [56] Revenue Breakdown - Revenue from property development in mainland China decreased to RMB 1.4 billion (2023: RMB 2.6 billion), with unrecognized sales at year-end dropping to RMB 0.6 billion (2023: RMB 2.3 billion) [7] - The overall revenue from investment properties fell by 4% to HKD 45.71 billion, with operating profit declining by 6% to HKD 29.83 billion [8] - Development property revenue plummeted by 74% to HKD 2.255 billion (2023: HKD 8.562 billion), with operating profit down 61% to HKD 466 million (2023: HKD 1.202 billion) [15] - The logistics infrastructure segment's overall revenue decreased by 7% to HKD 2.205 billion, with operating profit down 17% to HKD 315 million [10] - The investment property segment reported a revenue of HKD 4,644 million, down from HKD 4,843 million in the previous year, reflecting a decrease of about 4.1% [56] Impairment and Expenses - The net impairment loss on investment properties was HKD 59.9 billion (2023: HKD 16.17 billion) as of December 31, 2024 [17] - Other net expenses amounted to HKD 2.271 billion (2023: HKD 1.6 billion), primarily due to impairment provisions for mainland development properties [19] - The company recorded an impairment provision of HKD 16.04 billion for properties developed in mainland China, compared to HKD 4.89 billion in 2023 [71] - The group reported a net other expenses of HKD 22,731 million in 2024, compared to HKD 16,000 million in 2023, an increase of approximately 42.7% [70] Taxation and Equity - The group recorded a tax credit of HKD 3.705 billion (2023: tax expense of HKD 1.09 billion), mainly due to the reversal of deferred tax provisions related to past revaluation surpluses [22] - Shareholders' equity decreased by 4% to HKD 136.8 billion as of December 31, 2024, compared to HKD 143 billion in December 2023, equivalent to HKD 44.77 per share [26] - The group's total tax expense for the year was HKD 3.705 billion, compared to HKD 1.09 billion in 2023 [72] Assets and Liabilities - Total assets decreased to HKD 190,039 million in 2024 from HKD 204,877 million in 2023, reflecting a decline of 7.2% [49] - Total operating assets fell by 7% to HKD 179.6 billion, down from HKD 192.8 billion in December 2023, with real estate, logistics, and investment assets accounting for 69%, 8%, and 23% respectively [27] - Net debt decreased by 9% to HKD 7.1 billion, with a net debt to total equity ratio of 5.0% [34] Future Outlook and Strategy - The group expects significant economic fluctuations due to geopolitical tensions, trade wars, and changes in U.S. Federal Reserve interest rates [11] - The group will continue to focus on core competencies and prudent financial management to drive development amid complex market conditions [12] Dividends - The group declared a total dividend of HKD 0.40 per share for the fiscal year 2024, unchanged from 2023 [5] - The total declared and paid dividend per share for 2024 was HKD 0.40, totaling HKD 1.222 billion, consistent with the previous year [75] Employment and Compensation - The company employed approximately 6,400 staff as of December 31, 2024, with compensation based on market trends and performance [43] Meeting and Shareholder Information - The annual general meeting of Kowloon Warehouse Group Limited is scheduled for May 13, 2025, at 11:15 AM [82] - Share transfer documents must be submitted by May 7, 2025, at 4:30 PM to participate in the annual general meeting [83] - The record date for shareholders is set for May 8, 2025 [82]

Financial Performance - The group's underlying net profit increased by 9% to HKD 1.979 billion, compared to HKD 1.81 billion in the previous year, primarily due to a reduction in property impairment provisions to HKD 560 million from HKD 1.033 billion [2]. - The group reported a loss attributable to shareholders of HKD 26.373 billion, compared to a profit of HKD 6.969 billion in the previous year, after accounting for non-cash impairment losses on investment properties [2][11]. - Group revenue decreased by 14% to HKD 7.032 billion (2023: HKD 8.133 billion) and operating profit decreased by 2% to HKD 3.085 billion (2023: HKD 3.139 billion) [13]. - The net loss for the period was HKD 2,558 million, compared to a profit of HKD 735 million in the same period last year, indicating a significant downturn [38]. - The group reported a total comprehensive loss of HKD 7,631 million for the period, compared to a loss of HKD 5,420 million in 2023 [38]. Revenue Breakdown - Revenue from the development properties segment decreased by 2% to HKD 305 million, while operating profit surged by 113% to HKD 179 million [5]. - Overall revenue from the mainland investment properties segment fell by 4% to HKD 2.326 billion, with operating profit declining by 6% to HKD 1.551 billion [6]. - Investment property income decreased by 5% to HKD 2.364 billion (2023: HKD 2.488 billion) and operating profit decreased by 6% to HKD 1.573 billion (2023: HKD 1.679 billion) due to soft rental rates in mainland shopping malls and offices [12]. - Development property revenue fell by 25% to HKD 2.028 billion (2023: HKD 2.688 billion), but operating profit increased to HKD 387 million (2023: HKD 54 million) with an overall operating margin of 19% (2023: 2%) due to the completion of a project in Hangzhou [12]. - The hotel segment's revenue decreased by 2% to HKD 291 million, with operating profit plummeting by 73% to HKD 12 million [8]. Dividends and Shareholder Returns - The interim dividend remains unchanged at HKD 0.20 per share, with a total payout of HKD 610 million, consistent with the previous year [3]. - The company's interim dividend declared was HKD 0.20 per share, totaling HKD 611 million, consistent with the previous year [59]. Debt and Financial Position - The group maintains a low debt ratio of 6.2%, with most borrowings denominated in RMB to mitigate the impact of high U.S. interest rates [4]. - Net debt increased by 11% to HKD 8.7 billion, with a debt-to-equity ratio of 6.2% [27]. - The group recognized a tax expense of HKD 2,985 million for the period, compared to HKD 676 million in 2023, influenced by deferred tax adjustments [56]. - The average effective borrowing interest rate decreased to 3.9% for the period, compared to 4.9% in 2023 [54]. Market Conditions and Outlook - The business outlook remains uncertain due to economic instability, geopolitical risks, and challenges in the mainland real estate market, prompting the group to adopt a cautious financial strategy [10]. - The mainland China market contributed HKD 5,028 million in revenue, down from HKD 5,876 million in the previous year, indicating a decline of about 14.4% [51]. Assets and Investments - Total operating assets decreased by 7% to HKD 178.7 billion, with real estate, logistics, and investment assets accounting for 69%, 10%, and 21% respectively [22]. - Long-term investments valued at HKD 37.7 billion, with a fair value loss of HKD 4.9 billion during the period [25]. - The fair value change of equity investments resulted in a loss of HKD 4,920 million for the period, compared to a loss of HKD 4,224 million in the previous year [38]. Employee and Management Information - The group employed approximately 5,700 staff as of June 30, 2024, with around 1,000 in management roles [36]. - The annual remuneration for the chairman is set at HKD 350,000 for 2024, an increase from HKD 300,000 in 2023 [87]. - The annual remuneration for directors (excluding the chairman) is now HKD 300,000, up from HKD 250,000 in 2023 [87]. Corporate Governance - The company has complied with the corporate governance code, with the exception of the chairman and CEO roles being held by the same individual, deemed appropriate for strategic execution [76]. - All directors have adhered to the company's securities trading code during the reporting period [77].

Profit and Loss Performance - Group's underlying net profit increased by 9% to HKD 1.979 billion, primarily due to a reduction in development property provisions to HKD 564 million (2023: HKD 1.033 billion)[3] - The group reported a loss of HKD 2.637 billion due to investment property revaluation impairments and other unrealized accounting losses (2023: profit of HKD 696 million)[3] - Group's underlying net profit increased by 9% to HKD 1.979 billion (2023: HKD 1.811 billion), primarily due to reduced impairment provisions for development properties[13] - Group revenue decreased by 14% to HKD 7.032 billion (2023: HKD 8.13 billion), with operating profit down 2% to HKD 3.085 billion (2023: HKD 3.139 billion)[14] - Investment property revaluation impairment amounted to HKD 4.481 billion (2023: HKD 356 million), leading to a group loss attributable to shareholders of HKD 2.637 billion (2023: profit of HKD 696 million)[15][21] - Basic and diluted loss per share for the six months ended June 30, 2024, is HKD 0.86, compared to a profit of HKD 0.23 in the same period in 2023[35] - Revenue for the six months ended June 30, 2024, is HKD 7,032 million, down from HKD 8,130 million in the same period in 2023[36] - Net loss for the six months ended June 30, 2024, is HKD 2,558 million, compared to a net profit of HKD 735 million in the same period in 2023[36] - Total comprehensive loss for the six months ended June 30, 2024, is HKD 7,631 million, compared to HKD 5,420 million in the same period in 2023[38] - Group total revenue declined to HKD 7,032 million in H1 2024 from HKD 8,130 million in H1 2023, a decrease of 13.5%[43] - Group total operating profit fell to HKD 3,085 million in H1 2024 from HKD 3,139 million in H1 2023, a slight decrease of 1.7%[43] - Group total revenue decreased to HKD 7,032 million in 2024 from HKD 8,130 million in 2023, a decline of 13.5%[44] Property Development and Sales - Mainland China development property contracted sales dropped to RMB 700 million (2023: RMB 1.4 billion), with unsold inventory at 1.3 million square meters (2023: 1.4 million square meters)[8] - Development property revenue fell 25% to HKD 2.028 billion (2023: HKD 2.688 billion), but operating profit rose to HKD 387 million (2023: HKD 54 million), with a gross margin improvement to 19% (2023: 2%)[14] - Signed sales contracted by 41% to HKD 1.066 billion (2023: HKD 1.808 billion), with Hong Kong sales down 13% to HKD 300 million and mainland China sales down 48% to RMB 699 million[22] - Unrecognized sales decreased by 74% to RMB 575 million (December 2023: RMB 2.275 billion)[22] - Development properties segment revenue dropped to HKD 2,028 million in H1 2024 from HKD 2,688 million in H1 2023, a decrease of 24.6%[43] - Development properties segment operating profit increased to HKD 387 million in H1 2024 from HKD 54 million in H1 2023, a significant rise of 616.7%[43] - Revenue from property development sales dropped to HKD 2,028 million in 2024 from HKD 2,688 million in 2023, a decrease of 24.6%[44] Investment Properties - Mainland China investment property revenue decreased by 4% to HKD 2.326 billion, with operating profit down 6% to HKD 1.551 billion[7] - Investment property profit decreased by 5% to HKD 1.207 billion (2023: HKD 1.275 billion), while development property loss narrowed to HKD 462 million after deducting impairment provisions of HKD 564 million (2023: HKD 1.033 billion)[13] - Investment properties portfolio decreased to HKD 633 billion, representing 35% of total operating assets, with Hong Kong and Mainland China properties valued at HKD 180 billion and HKD 453 billion respectively[25][26] - Investment properties segment revenue decreased to HKD 2,364 million in H1 2024 from HKD 2,480 million in H1 2023, a decline of 4.7%[43] - Investment properties segment operating profit decreased to HKD 1,573 million in H1 2024 from HKD 1,679 million in H1 2023, a decline of 6.3%[43] Logistics and Infrastructure - Logistics infrastructure revenue fell by 12% to HKD 1.073 billion, with operating profit down 39% to HKD 123 million, impacted by reduced throughput in Hong Kong[11] - Logistics revenue decreased by 12% to HKD 1.073 billion (2023: HKD 1.221 billion), with operating profit down 39% to HKD 123 million (2023: HKD 203 million)[14] - Logistics segment revenue fell to HKD 1,073 million in H1 2024 from HKD 1,221 million in H1 2023, a reduction of 12.1%[43] - Logistics segment operating profit dropped to HKD 123 million in H1 2024 from HKD 203 million in H1 2023, a decrease of 39.4%[43] - Revenue from logistics decreased to HKD 1,073 million in 2024 from HKD 1,221 million in 2023, a decline of 12.1%[44] Financial Position and Debt - The group maintains a low debt ratio of 6.2%, with most borrowings denominated in RMB to mitigate the impact of high US interest rates[5] - Net debt increased by 11% to HKD 8.7 billion, with a net debt to total equity ratio of 6.2%, maintaining a low level[29] - Available credit facilities and issued debt securities totaled HKD 347 billion, with HKD 193 billion utilized, and HKD 116 billion of liabilities secured by properties and equipment with a total book value of HKD 393 billion[30] - The company's average effective borrowing rate decreased to 3.9% in 2024 from 4.9% in 2023[48] Dividends and Shareholder Returns - The first interim dividend remains unchanged at HKD 0.20 per share, with a total payout of HKD 611 million (2023: HKD 611 million)[4] - The company declared an interim dividend of HKD 0.20 per share, totaling HKD 611 million, unchanged from 2023[49] - The interim dividend ex-date is set for August 27, 2024, with the payment date on September 12, 2024[56] Operating Assets and Liabilities - Total operating assets (excluding bank deposits, cash, certain financial and deferred tax assets) decreased by 7% to HKD 1,787 billion, with Hong Kong, Mainland China, and overseas assets accounting for 51%, 44%, and 5% respectively[24] - Development properties assets decreased by 4% to HKD 358 billion, with Hong Kong and Mainland China properties valued at HKD 299 billion and HKD 59 billion respectively[27] - Long-term investments totaled HKD 377 billion, with listed equities accounting for HKD 300 billion, primarily held for long-term capital growth and/or reasonable dividend income[28] - Total assets as of June 30, 2024, are HKD 190,012 million, down from HKD 204,877 million as of December 31, 2023[39] - Total liabilities as of June 30, 2024, are HKD 50,147 million, down from HKD 56,674 million as of December 31, 2023[39] - Net assets as of June 30, 2024, are HKD 139,865 million, down from HKD 148,203 million as of December 31, 2023[39] Operating Cash Flow and Expenditure - Operating cash inflow before working capital changes was HKD 2.3 billion, with a net cash inflow from operating activities of HKD 500 million, and a net cash outflow from investing activities of HKD 700 million, mainly due to net purchases of long-term investments[31] - Total capital and development expenditure for 2024 is HKD 2,387 million, with HKD 1,099 million in Hong Kong and HKD 1,142 million in Mainland China[32] - Future fiscal year's major expenditure is estimated at HKD 21.425 billion, with HKD 7.432 billion already committed and HKD 13.993 billion not yet committed[33] Employee and Operational Costs - The company employs approximately 5,700 people, with about 1,000 in management roles[34] - Employee costs decreased to HKD 817 million in 2024 from HKD 825 million in 2023, a decline of 1.0%[46] - Total depreciation and amortization decreased to HKD 352 million in 2024 from HKD 356 million in 2023, a slight decline of 1.1%[46] - Net other expenses decreased to HKD 864 million in 2024 from HKD 997 million in 2023, a decline of 13.3%[47] Payables and Trade Liabilities - Trade payables decreased to HKD 748 million from HKD 883 million, with a notable reduction in the 0-30 days category from HKD 345 million to HKD 240 million[53] - Rent and customer deposits decreased to HKD 1,391 million from HKD 1,354 million[53] - Construction cost payables decreased to HKD 3,931 million from HKD 4,851 million[53] - Payables to associates increased to HKD 8,023 million from HKD 8,013 million[53] - Payables to joint ventures increased to HKD 2,005 million from HKD 1,823 million[53] - Other payables decreased to HKD 2,748 million from HKD 2,920 million[53] - Total group payables decreased to HKD 18,846 million from HKD 19,844 million[53] Audit and Compliance - The company's unaudited interim financial data for the six months ended June 30, 2024, was reviewed by the audit committee with no differing opinions[54] - The company did not purchase, sell, or redeem any of its listed securities during the financial period[56] Regional Performance - Hong Kong property sales saw a temporary boost post-stamp duty removal, with Mount Nicholson selling a unit for HKD 600 million at HKD 131,000 per square foot[6] - Operating profit in Hong Kong decreased to HKD 1,166 million in 2024 from HKD 1,301 million in 2023, a decline of 10.4%[45] - Operating profit in Mainland China increased to HKD 1,865 million in 2024 from HKD 1,736 million in 2023, a growth of 7.4%[45] Hotel Segment - Hotel segment revenue decreased by 2% to HKD 291 million, with operating profit down 73% to HKD 12 million[10] - The group opened a new hotel under the Park Hyatt brand in Changsha, marking the first non-self-operated hotel owned by the group since the 1980s[10]

Land Reserve and Development Projects - The company's attributable land reserve totals 2.8 million square feet, with approximately 600,000 square feet located on the Peak, including projects such as No. 1 Plantation Road, Kowloon Tong Residential Project, Kai Tak Residential Project (30% interest), and Kowloon Godown Redevelopment Project[3] - The company's unsold land reserve for development properties in mainland China decreased to approximately 1.4 million square meters by the end of 2023[3] - Total land reserve was 2,787,000 square feet, with the Kowloon Tong residential project accounting for 436,000 square feet and the Kowloon East property portfolio accounting for 1,802,000 square feet[23] - The group's land reserves include 2.8 million square feet in Hong Kong and 1.4 million square meters in mainland China, with flagship projects in both regions[71] Hotel Operations - The company manages 16 hotels in Hong Kong, mainland China, and the Philippines, offering over 5,000 rooms and suites, including five Niccolo hotels and ten Marco Polo hotels, with the new lifestyle hotel brand Mǎkè opening its first property in Changsha IFS in November 2023[3] - The company launched a new high-end lifestyle hotel brand, Marco, with the first hotel opening in Changsha IFS in November 2023, and currently operates or owns 16 hotels in Hong Kong, mainland China, and the Philippines[30] - The Hong Kong Murray Hotel was awarded a 5-star rating in the 2023 Forbes Travel Guide[39] - The Changsha Niccolo Hotel won the THAT'S Hotel Industry Award for Luxury Hotel of the Year[39] - The Chengdu Niccolo Hotel was recognized as one of the Top 100 Hotels in China in 2022[39] - The Chongqing Niccolo Hotel was awarded the City Life Award for Destination Cloud Luxury Hotel of the Year in 2023[39] - The Suzhou Niccolo Hotel was named the Luxury Art Landmark of the Year by Go Travelling[39] - The Marco Polo Hongkong Hotel's restaurant received a 4-star rating in the 2023 Forbes Travel Guide[39] - The Wuhan Marco Polo Hotel was listed as one of the top luxury hotels in Wuhan by Ctrip[39] - The Changsha Marco Polo Hotel won the THAT'S Hotel Industry Award for Best Newly Opened Hotel[39] - Hotel revenue rebounded by 66% to HKD 611 million, recording an operating profit of HKD 107 million[52] - The hotel segment manages 16 hotels across Asia, with five being wholly or partially owned by the group[183] Logistics and Infrastructure - The company's logistics infrastructure includes Modern Terminals, a major container terminal operator in Hong Kong and Shenzhen, and Hong Kong Air Cargo Terminals, both crucial to maintaining Hong Kong's status as an international trade and transportation hub[3] - Logistics and infrastructure segment revenue decreased by 20% to HKD 2.37 billion, and operating profit decreased by 50% to HKD 378 million[31] - Modern Terminals' throughput in Hong Kong decreased by 15% to 3.7 million TEUs, while throughput at Dachan Bay Terminal (65% owned) in Shenzhen decreased by 5% to 1.9 million TEUs, and Shekou Container Terminal (20% owned) increased by 2% to 6.1 million TEUs[32] - Hong Kong Air Cargo Terminals (21% owned) handled a total cargo volume of 1.6 million tons, a decrease of 2%[33] - Modern Terminals received the 2023 Outstanding Corporate Partner Excellence Award from Hong Kong Customs[40] - The logistics segment includes container terminal operations in Hong Kong and mainland China, as well as air cargo handling services[183] Sustainability and ESG - The company has set a 2030 target to minimize carbon emissions and explore energy efficiency and renewable energy in its operations[4] - The company was awarded the third-highest fundraising organization by the Community Chest for 2022/23 and maintains its position as a constituent of the Hang Seng Sustainability Index Series, with an ESG rating of AA+[4] - The company aims to minimize carbon emissions by 2030, with projects like solar panel installations increasing solar power generation to 431,000 kWh annually[13] - The company raised approximately HKD 14.8 billion through green loans and sustainability-linked loans by 2023[47] - The company conducts climate risk assessments and scenario analyses to identify significant physical and transitional risks and opportunities related to climate change[163] - The company has implemented a Climate Change Policy Statement and is enhancing climate resilience through energy optimization, renewable energy adoption, and green procurement[163] Financial Performance - The company declared a second interim dividend of HK$0.20 per share for 2023, with the record date set for April 10, 2024, and the payment date for April 25, 2024[8] - The company's total revenue increased by 5% to HKD 18.95 billion, driven by development properties and higher dividend income[12] - Basic net profit rose to HKD 3.566 billion, primarily due to a reduction in development property impairment provisions by HKD 3.804 billion[12] - Total assets reached HKD 204.9 billion, with a net debt of HKD 7.8 billion and a low debt-to-equity ratio of 5.3%[12] - The company declared a second interim dividend of HKD 0.20 per share, maintaining the total annual dividend at HKD 0.40 per share[12] - The company's total income for 2023 was HKD 18.95 billion, with operating profit at HKD 6.896 billion, marking a 4% increase[16] - Basic net profit per share was HKD 0.40, and shareholder profit/(loss) per share was HKD 46.79[19] - Group's underlying net profit increased to HKD 3.566 billion, primarily due to a decrease in provisions for development properties to HKD 1.933 billion[52] - Group revenue increased by 5% to HKD 18.95 billion, with operating profit up 4% to HKD 6.896 billion[52] - Investment properties revenue slightly decreased by 1% to HKD 4.843 billion, with operating profit also down 1% to HKD 3.207 billion[52] - Development properties revenue rose 15% to HKD 8.562 billion, with operating profit up 32% to HKD 1.232 billion[52] - Logistics revenue decreased by 20% to HKD 2.37 billion, with operating profit down 50% to HKD 378 million[52] - Investment operating profit increased by 34% to HKD 2.03 billion, driven by higher dividend income[52] - Unrealized revaluation loss on investment properties amounted to HKD 1.617 billion as of December 31, 2023[53] - Other net expenses totaled HKD 1.6 billion, including impairment provisions for development properties of HKD 489 million[54] - Financial expenses increased by 40% to HKD 905 million, with the actual borrowing rate rising to 4.7%[55] - Share of associates and joint ventures' performance: Profit from associates was HKD 249 million (2022: HKD 21 million), while loss from joint ventures was HKD 1,699 million (2022: HKD 121 million), mainly due to impairment provisions for development properties of HKD 1,449 million (2022: HKD 1,497 million) and net revaluation loss on investment properties of HKD 500 million (2022: surplus of HKD 17 million)[56] - Tax expenses decreased by 34% to HKD 1,090 million (2022: HKD 1,660 million), primarily due to reduced tax provisions from lower profits in mainland investment and development property transactions[57] - Group's underlying net profit rebounded to HKD 3,566 million (2022: HKD 303 million), with development property losses narrowing by 77%, including a profit of HKD 150 million in Hong Kong (after impairment provisions of HKD 78 million) and a loss of HKD 1,083 million in mainland China (after impairment provisions of HKD 1,855 million)[57] - Contracted sales dropped by 44% to HKD 3,189 million (2022: HKD 5,678 million), with Hong Kong sales falling by 67% to HKD 343 million (2022: HKD 1,025 million) and mainland sales decreasing by 38% to RMB 2,579 million (2022: RMB 4,156 million)[58] - Shareholders' equity decreased by 6% to HKD 143 billion (2022: HKD 151.6 billion), equivalent to HKD 46.79 per share (2022: HKD 49.60 per share), due to a HKD 9.8 billion revaluation loss on listed equity investments[59] - Total operating assets (excluding bank deposits, cash, certain financial and deferred tax assets) decreased by 6% to HKD 192.8 billion (2022: HKD 205.9 billion), with real estate, logistics, and investment assets accounting for 69%, 9%, and 22% of total operating assets, respectively[59] - Investment properties portfolio was reported at HKD 71.2 billion (2022: HKD 69.2 billion), accounting for 37% of total operating assets, including HKD 18 billion in Hong Kong (2022: HKD 14.6 billion) and HKD 53.2 billion in mainland China (2022: HKD 54.6 billion)[60] - Development property assets decreased by 13% to HKD 37.2 billion (2022: HKD 43 billion), including HKD 29.3 billion in Hong Kong (2022: HKD 28.5 billion) and HKD 7.9 billion in mainland China (2022: HKD 14.5 billion)[60] - Long-term investments totaled HKD 42.4 billion (2022: HKD 48.9 billion), with HKD 34.6 billion (2022: HKD 40.3 billion) in listed equities, primarily blue-chip stocks held for long-term capital growth and/or reasonable dividend income[61] - Sales deposits decreased by 79% to HKD 1.7 billion (December 2022: HKD 8.2 billion), to be recognized in the coming years[63] - Net debt increased by 47% to HKD 7.8 billion (December 2022: HKD 5.3 billion), with a net debt to total equity ratio of 5.3% (December 2022: 3.4%)[63] - Total available credit facilities and issued debt securities amounted to HKD 36.6 billion, with HKD 19.4 billion utilized as of December 31, 2023[64] - The group's debt portfolio includes USD, HKD, and RMB, primarily used to fund investment properties, development properties, and port investments[65] - Operating cash inflow before working capital changes was HKD 5.2 billion (2022: HKD 5.1 billion), with a net inflow of HKD 2.4 billion after tax and other changes[65] - Investment activities resulted in a net outflow of HKD 3.5 billion (2022: inflow of HKD 4.3 billion), mainly due to net purchases of long-term investments[66] - Total capital and development expenditures for 2023 were HKD 5.134 billion, with HKD 4.611 billion allocated to development properties[67] - Estimated major expenditures for the next fiscal year are HKD 14.181 billion, with HKD 5.772 billion already committed[68] - Revenue for 2023 increased to HKD 18,950 million from HKD 18,064 million in 2022, representing a growth of 4.9%[174] - Operating profit before depreciation, amortization, interest, and taxes rose to HKD 7,602 million in 2023, up from HKD 7,320 million in 2022[174] - Net profit attributable to shareholders improved significantly to HKD 945 million in 2023, compared to a loss of HKD 1,705 million in 2022[174] - Basic and diluted earnings per share for 2023 were HKD 0.31, a recovery from a loss of HKD 0.56 per share in 2022[174] - The fair value decrease of investment properties was HKD 746 million in 2023, up from HKD 264 million in 2022[174] - Other comprehensive loss for the year was HKD 7,285 million, slightly lower than the HKD 7,807 million loss in 2022[175] - Total comprehensive loss for the year was HKD 6,180 million, an improvement from HKD 9,241 million in 2022[175] - The company's share of other comprehensive income from associates and joint ventures was a loss of HKD 236 million in 2023, compared to a loss of HKD 1,252 million in 2022[175] - Total assets decreased from HKD 221,745 million in 2022 to HKD 204,877 million in 2023[176] - Net profit for the year was HKD 945 million, compared to a loss of HKD 1,705 million in 2022[178] - Cash and cash equivalents decreased from HKD 14,648 million in 2022 to HKD 11,593 million in 2023[179] - Total equity decreased from HKD 155,707 million in 2022 to HKD 148,203 million in 2023[176] - Operating cash inflow increased slightly from HKD 5,141 million in 2022 to HKD 5,244 million in 2023[179] - Investment properties decreased from HKD 69,222 million in 2022 to HKD 71,244 million in 2023[176] - Total liabilities decreased from HKD 66,038 million in 2022 to HKD 56,674 million in 2023[176] - Revenue from other long-term investments increased from HKD 1,337 million in 2022 to HKD 1,753 million in 2023[179] - Net cash used in financing activities decreased significantly from HKD 17,552 million in 2022 to HKD 1,745 million in 2023[179] - Total comprehensive income for the year was a loss of HKD 6,180 million, compared to a loss of HKD 9,241 million in 2022[178] - Operating profit increased to HKD 6,896 million in 2023 from HKD 6,603 million in 2022, reflecting a growth of 4.4%[180] - Cash and cash equivalents decreased to HKD 11,593 million in 2023 from HKD 14,648 million in 2022, a decline of 20.9%[181] - New bank and other borrowings amounted to HKD 10,997 million in 2023, compared to HKD 8,258 million in 2022, showing a 33.1% increase[182] - Repayment of bank and other borrowings was HKD 11,371 million in 2023, down from HKD 24,336 million in 2022, a significant reduction of 53.3%[182] - The total cash inflow from operating activities was HKD 3,246 million in 2023, a decrease from HKD 6,692 million in 2022, marking a 51.5% decline[180] - Total group revenue for 2023 reached HKD 18,950 million, compared to HKD 18,064 million in 2022[185] - Investment properties segment revenue for 2023 was HKD 4,843 million, with operating profit of HKD 3,207 million[184] - Development properties segment revenue for 2023 increased to HKD 8,562 million from HKD 7,462 million in 2022[185] - Logistics segment revenue for 2023 decreased to HKD 2,370 million from HKD 2,964 million in 2022[185] - Hotel segment revenue for 2023 increased to HKD 611 million from HKD 369 million in 2022[185] - Total group operating assets for 2023 were HKD 204,877 million, down from HKD 221,745 million in 2022[186] - Capital expenditures for 2023 totaled HKD 523 million, compared to HKD 1,359 million in 2022[188] - Depreciation and amortization expenses for 2023 were HKD 706 million, slightly down from HKD 717 million in 2022[188] - The group made provisions of HKD 1,938 million for certain development properties of subsidiaries, joint ventures, and associates in 2023[188] - Group total revenue increased to HKD 18,950 million in 2023 from HKD 18,064 million in 2022, representing a growth of 4.9%[189] - Mainland China contributed HKD 14,030 million to revenue in 2023, slightly up from HKD 13,977 million in 2022[189] - Operating profit for the group rose to HKD 6,896 million in 2023 from HKD 6,603 million in 2022, a 4.4% increase[189] - Total depreciation and amortization decreased to HKD 706 million in 2023 from HKD 717 million in 2022[192] - Employee costs decreased to HKD 1,580 million in 2023 from HKD 1,646 million in 2022[192] - Interest income from financial assets at amortized cost dropped to HKD 322 million in 2023 from HKD 662 million in 2022[193] - Total remuneration for the board of directors decreased to HKD 44,892 thousand in 2023 from HKD 52,238 thousand in 2022[195] - Total remuneration for the top five highest-paid employees decreased to HKD 14 million in 2023 from HKD 21 million in 2022[198] - Non-current assets designated for the group totaled HKD 111,851 million in 2023, slightly down from HKD 112,453 million in 2022[190] - Total operating assets for the group decreased to HKD 192,780 million in 2023 from HKD 205,869 million

Core Insights - The company reported a 5% increase in revenue to HKD 18.95 billion for the fiscal year 2023 [1] - Operating profit rose by 4% to HKD 6.896 billion [1] - The company's net profit attributable to shareholders rebounded to HKD 3.566 billion, compared to HKD 303 million in the same period last year, primarily due to a reduction in provisions for development properties to HKD 1.933 billion [1] Financial Performance - Development property losses narrowed by 77% [1] - Investment profit increased by 37% [1] - Investment property profit decreased by 6% [1] - Logistics profit decreased by 39% [1] Overall Profitability - After accounting for a revaluation loss of investment properties amounting to HKD 1.617 billion and other non-cash items, the company recorded a profit attributable to shareholders of HKD 0.945 billion, compared to a loss of HKD 1.705 billion in 2022 [1]

Financial Performance - Total property sales decreased by 44% compared to 2022[2] - Year-end unrecognized sales dropped by 75%[2] - Impairment provisions totaled HKD 1.9 billion, a decrease of HKD 3.8 billion from 2022[2] - Basic net profit before provisions fell by HKD 0.5 billion (or 9%) while basic net profit after provisions increased by HKD 3.3 billion[2] - Shareholders' profit increased by HKD 2.7 billion[2] - Basic earnings per share rose to HKD 0.31 from a loss of HKD 0.56 in 2022[3] - The net profit attributable to shareholders for the year was HKD 945 million, compared to a loss of HKD 1,705 million in 2022[35] - The group reported a comprehensive income of HKD 1,105 million for the year, compared to a loss of HKD 1,434 million in 2022[36] - The group’s financial performance for the year ended December 31, 2023, was reviewed by the audit committee, with no discrepancies noted[55] Revenue and Profitability - Group revenue increased by 5% to HKD 18.95 billion, while operating profit rose by 4% to HKD 6.89 billion[13] - Revenue from mainland China properties decreased by 35% to HKD 9.25 billion, with operating profit down 37% to HKD 1.02 billion[6] - Hotel revenue increased by 66% to HKD 610 million, returning to profitability with HKD 107 million[8] - Logistics infrastructure revenue fell by 20% to HKD 2.37 billion, with operating profit down to HKD 378 million[9] - Investment property revenue slightly decreased by 1% to HKD 4.84 billion, with operating profit also down by 1% to HKD 3.07 billion[13] - Development property revenue surged by 15% to HKD 8.56 billion, and operating profit increased by 32% to HKD 1.23 billion[13] - The hotel segment generated revenue of HKD 611 million, up from HKD 369 million, indicating a growth of 65.8%[44] - The investment segment reported a revenue of HKD 2,030 million, down from HKD 1,517 million, reflecting a decrease of 33.8%[44] Assets and Liabilities - Total operating assets decreased by 6% to HKD 192.8 billion, with real estate, logistics, and investment assets accounting for 69%, 9%, and 22% respectively[21] - The total assets as of December 31, 2023, amounted to HKD 204,877 million, a decrease from HKD 221,745 million in 2022[38] - The total liabilities decreased to HKD 56,674 million from HKD 66,038 million in the previous year[38] - Shareholders' equity decreased by 6% to HKD 143 billion, primarily due to investment revaluation losses of HKD 9.8 billion[20] - The group recorded an unrealized revaluation loss of HKD 1.617 billion on investment properties as of December 31, 2023[14] Cash Flow and Expenditures - Cash flow from operating activities generated HKD 5.2 billion, while net cash inflow from operations was HKD 2.4 billion after tax payments[29] - Major capital expenditures totaled HKD 46.1 billion, with HKD 10.6 billion for investment properties and HKD 35.5 billion for development properties[30] - The group has committed expenditures of HKD 142 billion for the upcoming fiscal year, with HKD 58 billion already undertaken[31] - The group plans to finance its expenditures through internal financial resources, including surplus cash and cash flows from operations[32] Financial Ratios and Debt - Net debt increased by 47% to HKD 7.8 billion, with a net debt to total equity ratio of 5.3%[27] - Financial expenses rose by 40% to HKD 905 million, with the effective borrowing interest rate increasing to 4.7%[16] - Interest expenses for 2023 totaled HKD 1.224 billion, up from HKD 709 million in 2022, with bank borrowings and overdrafts contributing HKD 649 million[49] Corporate Governance - The company has adhered to all applicable principles of the Corporate Governance Code as per the Hong Kong Stock Exchange Listing Rules, with the exception of Code Provision C.2.1, which states that the roles of Chairman and CEO should be held by different individuals[56] - The board believes that having the same person serve as both Chairman and CEO is more effective for planning and executing long-term strategies[56] - The board consists of experienced and capable individuals, with more than half being independent non-executive directors, ensuring a balanced distribution of power and authority[56] - The company is committed to maintaining compliance with corporate governance standards while optimizing its leadership structure[56] Shareholder Information - The group declared a total dividend of HKD 0.40 per share for 2023, amounting to HKD 1.222 billion, consistent with the previous year's dividend[52] - The second interim dividend payment date is set for April 25, 2024, with a record date of April 10, 2024[57] - Shareholders must register their share transfers by April 10, 2024, to be eligible for the second interim dividend[57] - Shareholders wishing to attend the annual general meeting must register by May 3, 2024[58] - The annual general meeting is scheduled for May 9, 2024, at 11:15 AM[58]

Financial Performance - The group's underlying net profit increased to HKD 1.81 billion, compared to HKD 0.42 billion in 2022, primarily due to a reduction in property impairment provisions to HKD 1.03 billion from HKD 2.54 billion[3]. - The group's attributable profit was HKD 0.696 billion, up from HKD 0.057 billion in 2022[3]. - The group confirmed a 33% decrease in recognized revenue to HKD 3.32 billion, with operating profit down 88% to HKD 0.076 billion[8]. - Group revenue decreased by 1% to HKD 8.13 billion (2022: HKD 8.20 billion) and operating profit decreased by 10% to HKD 3.14 billion (2022: HKD 3.47 billion)[13]. - The operating profit for the same period was HKD 3,139 million, down 9.8% from HKD 3,479 million year-on-year[37]. - The net profit attributable to shareholders for the period was HKD 696 million, significantly up from HKD 57 million in the previous year, representing a growth of 1,126.3%[38]. - The total comprehensive income for the six months ended June 30, 2023, was a loss of HKD 6,064 million, compared to a loss of HKD 3,810 million for the same period in 2022, indicating a worsening of approximately 59.0%[40]. Revenue Breakdown - Revenue from the logistics segment decreased by 21% to HKD 1.22 billion, with operating profit down 49% to HKD 0.203 billion[11]. - Investment property revenue decreased by 4% to HKD 2.48 billion (2022: HKD 2.59 billion) and operating profit decreased by 6% to HKD 1.68 billion (2022: HKD 1.79 billion)[13]. - Development property revenue increased by 1% to HKD 2.68 billion (2022: HKD 2.67 billion) but operating profit decreased by 87% to HKD 64 million (2022: HKD 480 million)[13]. - Hotel revenue rebounded by 77% to HKD 296 million (2022: HKD 167 million) with operating profit of HKD 44 million (2022: loss of HKD 47 million)[13]. - The investment properties segment generated revenue of HKD 2,480 million, while the development properties segment contributed HKD 2,688 million, showing a year-on-year increase of 0.52% and 0.52% respectively[49]. - The logistics segment reported revenue of HKD 1,221 million, down from HKD 1,542 million in the previous year, indicating a decline of 21%[50]. - The hotel segment's revenue was HKD 296 million, an increase from HKD 167 million in the previous year, representing a growth of 77%[50]. Dividends and Shareholder Returns - The interim dividend per share remains at HKD 0.20, with a total payout of HKD 0.611 billion, unchanged from 2022[4]. - Shareholders' attributable profit was HKD 696 million (2022: HKD 57 million) with basic earnings per share of HKD 0.23 (2022: HKD 0.02)[19]. - The company declared an interim dividend of HKD 611 million for the period, consistent with the previous year's dividend payments[40]. - The first interim dividend declared was HKD 0.20 per share, totaling HKD 611 million, consistent with the previous year[60]. Assets and Liabilities - The total assets as of June 30, 2023, amounted to HKD 215,509 million, a decrease from HKD 221,745 million in the previous year[39]. - The net assets of the company stood at HKD 149,657 million, down from HKD 155,707 million year-on-year[39]. - The group's total liabilities as of June 30, 2023, were HKD 17.525 billion, with HKD 8.163 billion already incurred and HKD 13.491 billion yet to be incurred[77]. - The net debt increased to HKD 15 billion, with a net debt to total equity ratio of 10.1%, up from 3.4% in December 2022[28]. - The group's total available credit and issued debt securities amounted to HKD 42.6 billion, with HKD 23.9 billion drawn down[29]. Cash Flow and Investments - The group recorded a net cash inflow from operating activities of HKD 2.1 billion, down from HKD 2.7 billion in the previous year[33]. - The net cash inflow from operating activities for the six months ended June 30, 2023, was HKD 5,407 million, compared to HKD 2,725 million for the same period in 2022, indicating a significant increase of approximately 98.5%[41]. - The net cash used in investing activities was HKD 9,368 million for the six months ended June 30, 2023, compared to HKD 1,979 million in the previous year, reflecting a substantial increase of approximately 373.5%[41]. - The net cash inflow from financing activities was HKD 3,428 million for the six months ended June 30, 2023, compared to a net outflow of HKD 7,620 million in the same period of 2022, showing a turnaround in financing activities[41]. - The cash and cash equivalents balance as of June 30, 2023, was HKD 8,858 million, down from HKD 18,404 million as of June 30, 2022, representing a decrease of approximately 52.1%[41]. Market Conditions and Future Outlook - Contracted sales in mainland China reached RMB 1.4 billion, down from RMB 2.3 billion in 2022, with an area of 64,200 square meters involved[7]. - The retail leasing market showed slow recovery, with rental rates and occupancy continuing to be under pressure[9]. - The group plans to launch a new hotel brand in Changsha in the fourth quarter, adding 286 rooms to its portfolio[10]. - The group plans to continue expanding its investment portfolio, focusing on both local and overseas markets, particularly in real estate and emerging economies[49]. - The logistics division is expected to enhance its operational efficiency through technological advancements and strategic partnerships in the coming quarters[49]. Governance and Compliance - The company has adhered to all principles of the Corporate Governance Code during the reporting period, with the exception of the separation of roles between the Chairman and CEO[79]. - The company’s board consists of experienced individuals, with more than half being independent non-executive directors, ensuring balanced power distribution[79]. - The company’s interim financial data for the six months ending June 30, 2023, was reviewed by the audit committee with no discrepancies noted[78]. Employee and Management Information - The company employed approximately 6,200 staff as of June 30, 2023, with around 1,100 in management roles[36]. - Employee costs amounted to HKD 825 million, slightly down from HKD 837 million in the previous year, reflecting a decrease of 1.43%[52]. - The company has committed to maintaining its workforce and utilizing government subsidies to support employee retention during challenging economic conditions[53].

Financial Performance - The group's underlying net profit increased to HKD 1.81 billion, up from HKD 0.42 billion in 2022, primarily due to a reduction in property development provisions to HKD 1.03 billion from HKD 2.54 billion[3]. - Shareholders' profit attributable to the group rose to HKD 0.696 billion, compared to HKD 0.057 billion in 2022[3]. - Group revenue decreased by 1% to HKD 8.13 billion, while operating profit fell by 10% to HKD 3.139 billion[12]. - Total comprehensive income for the period was HKD -5,420 million, compared to HKD -3,810 million in the previous year, indicating a worsening in overall financial performance[33]. - Operating profit for the same period was HKD 3,139 million, down 9.8% from HKD 3,479 million in 2022[31]. - The group recorded a net cash inflow from operating activities of HKD 2.1 billion, down from HKD 2.7 billion in the previous year[27]. - The company reported a fair value loss on equity investments of HKD 4,224 million, compared to a loss of HKD 602 million in 2022, indicating significant market volatility[33]. Revenue Breakdown - Revenue from the logistics infrastructure segment decreased by 21% to HKD 1.22 billion, with operating profit down 49% to HKD 0.203 billion[10]. - The hotel segment saw a revenue increase of 77% to HKD 0.296 billion, recovering to an operating profit of HKD 0.044 billion[9]. - Revenue from investment properties in mainland China fell by 5% to HKD 2.434 billion, with operating profit down 7% to HKD 1.653 billion[8]. - The group’s development property revenue decreased by 48% to HKD 0.311 billion, with operating profit down 77% to HKD 0.094 billion[6]. - Development property revenue increased by 1% to HKD 2.6888 billion, but operating profit plummeted 87% to HKD 64 million, reflecting a significant drop in gross margin to 4% from 18%[12]. - The logistics segment reported revenue of HKD 1,221 million, a decrease from HKD 1,542 million, representing a decline of 20.77%[40]. - The investment segment reported a revenue of HKD 1,160 million, down from HKD 901 million, reflecting a decrease of 28.73%[40]. Dividends and Shareholder Returns - Interim dividend declared at HKD 0.20 per share, with a total payout of HKD 0.611 billion, unchanged from 2022[4]. - The group reported a basic and diluted earnings per share of HKD 0.20, with total profit attributable to shareholders reaching HKD 696 million, compared to HKD 57 million in the previous year[45]. - Basic and diluted earnings per share increased to HKD 0.23 from HKD 0.02, reflecting a substantial improvement in profitability[31]. Assets and Liabilities - Non-current assets totaled HKD 163,466 million as of June 30, 2023, a slight decrease from HKD 162,287 million at the end of 2022[34]. - Current assets decreased to HKD 52,043 million from HKD 59,458 million, primarily due to a reduction in cash and bank deposits[34]. - Total liabilities were HKD 65,852 million, a marginal decrease from HKD 66,038 million in the previous year[34]. - The group’s land bank decreased to 1.6 million square meters, with no new land acquisitions during the period[7]. - Shareholders' equity decreased by 4% to HKD 145.6 billion, equivalent to HKD 47.65 per share[19]. Financial Ratios and Debt - Net debt increased by HKD 9.7 billion to HKD 15 billion, with a net debt to total equity ratio of 10.1%, up from 3.4% in December 2022[25]. - Total interest expenses for the six months ended June 30, 2023, amounted to HKD 566 million, a significant increase from HKD 281 million in the same period of 2022, reflecting a rise in the average effective borrowing interest rate from 2.1% to 4.9%[43]. - The group’s total financial expenses, including other financial costs, were HKD 399 million, compared to HKD 156 million in the previous year, indicating increased financial pressure[43]. Future Outlook and Expenditures - Major capital and development expenditures for 2023 totaled HKD 2.485 billion, with HKD 2.315 billion allocated to property investments and developments[28]. - Future estimated major expenditures amount to HKD 17.525 billion, with HKD 7.556 billion already committed[29]. Operational Insights - The group employs approximately 6,200 staff, with compensation based on job responsibilities and market trends[30]. - The company operates 16 hotels in Asia, with four fully owned or partially held by the group[39]. - The logistics division includes container terminal operations in Hong Kong and mainland China, contributing to the group's diversified business model[39]. Tax and Governance - The group’s tax expenses for the six months ended June 30, 2023, totaled HKD 676 million, down from HKD 1,019 million in the same period of 2022, with a notable decrease in tax provisions for prior years[44]. - The company has adhered to the corporate governance code throughout the financial period, with a notable exception regarding the roles of the chairman and CEO being held by the same individual, deemed appropriate for strategic execution[50].

Land Reserves and Property Portfolio - The company's land reserve in Hong Kong and Mainland China totals 2.8 million square feet, with 600,000 square feet located at the Peak[3] - The company's land reserve for development properties in Mainland China is 1.7 million square meters as of the end of 2022[3] - The company's luxury property portfolio at the Peak continues to cater to high-end customers with top-tier customization and craftsmanship[3] - The company's International Finance Centers in Chengdu and Changsha have become local landmarks due to their prime locations and excellent retail management[3] - The company's land reserves include 2.8 million square feet in Hong Kong and 1.7 million square meters in mainland China, with flagship projects such as Mount Nicholson and The Peak[77] Hotel Operations - The company manages 16 hotels across Mainland China, Hong Kong, and the Philippines, offering over 5,000 rooms and suites[3] - Hotel segment revenue decreased by 26% to HKD 369 million, with an operating loss of HKD 27 million[32] - Hotel income decreased by 26% to HKD 369 million (2021: HKD 497 million), resulting in an operating loss of HKD 27 million (2021: profit of HKD 39 million)[53] - The Wharf Hotels group, including The Murray Hong Kong and Niccolo Hotels, received multiple accolades such as Forbes Travel Guide Five-Star Awards and TripAdvisor Travelers' Choice Awards[41] Financial Performance - The company's rental income experienced its first decline in recent years due to the pandemic and macroeconomic challenges in Mainland China[11] - The company's sales volume and recognized revenue from development properties significantly decreased in 2022[11] - Group revenue decreased by 19% to HKD 18.064 billion due to significant reductions in property development recognition in Hong Kong and Mainland China, and a reversal in investment property income growth[14] - The group reported a net loss attributable to shareholders of HKD 1.705 billion, with a basic net profit of HKD 303 million excluding investment property revaluation losses[14] - Total assets amounted to HKD 221.7 billion, with a net asset value of HKD 151.6 billion, equivalent to HKD 49.60 per share[14] - Net debt decreased by 60% to HKD 5.3 billion, with a debt ratio reduced to 3.4%[14] - Revenue decreased by 19% to HKD 18,064 million, and operating profit decreased by 23% to HKD 6,603 million[19] - Basic net profit dropped by 92% to HKD 303 million, and shareholder's loss was HKD 1,705 million[19] - Total assets decreased by 13% to HKD 221,745 million, and net debt decreased by 60% to HKD 5,316 million[19] - Development property revenue in Hong Kong decreased by 79% to HKD 905 million, and operating profit decreased by 59% to HKD 616 million[25] - Contracted sales in Mainland China decreased by 70% to RMB 4.2 billion, with unrecognized sales of RMB 8.5 billion at year-end[27] - Mainland China investment property revenue decreased by 11% to HKD 4,798 million, and operating profit decreased by 9% to HKD 3,226 million[30] - Logistics infrastructure revenue decreased by 1% to HKD 2,964 million, and operating profit decreased by 1% to HKD 763 million[34] - Throughput at Modern Terminals in Hong Kong decreased by 11% to 4.4 million TEUs, while Shenzhen's throughput increased by 19% to 2 million TEUs[35] - Hong Kong Air Cargo Terminals' cargo volume decreased by 18% to 1.6 million tons due to weak demand and cross-border restrictions[36] - Group's basic net profit decreased by 92% to HKD 303 million (2021: HKD 3.646 billion), and shareholders' share of the group's loss was HKD 1.705 billion (2021: profit of HKD 6.019 billion)[52] - Group revenue decreased by 19% to HKD 18.064 billion (2021: HKD 22.378 billion), and operating profit decreased by 23% to HKD 6.603 billion (2021: HKD 8.536 billion)[53] - Investment property income decreased by 11% to HKD 4.871 billion (2021: HKD 5.467 billion), and operating profit decreased by 9% to HKD 3.247 billion (2021: HKD 3.575 billion)[53] - Development property income decreased by 33% to HKD 7.462 billion (2021: HKD 11.193 billion), and operating profit decreased by 68% to HKD 935 million (2021: HKD 2.939 billion)[53] - Logistics income decreased by 1% to HKD 2.964 billion (2021: HKD 3.002 billion), and operating profit decreased by 1% to HKD 763 million (2021: HKD 771 million)[53] - Unrealized revaluation loss on investment properties amounted to HKD 735 million (2021: HKD 31 million)[54] - Other net expenses amounted to HKD 5.367 billion (2021: HKD 1.019 billion), including impairment provisions for development properties of HKD 4.24 billion (2021: HKD 3.336 billion)[55] - Financial expenses increased by 143% to HKD 646 million (2021: HKD 266 million), with the actual borrowing interest rate rising to 2.6% (2021: 1.8%)[56] - Tax expenses decreased by 43% to HKD 1.66 billion (2021: HKD 2.898 billion), including deferred tax of HKD 194 million due to revaluation surplus of mainland investment properties (2021: HKD 852 million)[58] - Group's underlying net profit decreased by 92% to HKD 303 million (2021: HKD 3.646 billion), with development properties loss expanding to HKD 4.054 billion (2021: HKD 1.252 billion)[58] - Total contracted sales dropped by 74% to HKD 5.678 billion (2021: HKD 21.864 billion), with Hong Kong sales decreasing by 79% to HKD 1.025 billion (2021: HKD 4.914 billion)[59] - Shareholders' equity decreased by 6% to HKD 151.6 billion (2021: HKD 162 billion), equivalent to HKD 49.60 per share (2021: HKD 53.02 per share)[60] - Total operating assets decreased by 10% to HKD 205.9 billion (2021: HKD 228.6 billion), with Hong Kong operating assets increasing by 1% to HKD 95.6 billion (2021: HKD 94.6 billion)[61] - Investment properties portfolio was reported at HKD 69.2 billion (2021: HKD 76.5 billion), accounting for 34% of total operating assets (2021: 33%)[62] - Development properties assets decreased by 11% to HKD 43 billion (2021: HKD 48.5 billion), including Hong Kong development properties of HKD 28.5 billion (2021: HKD 23.6 billion)[63] - Associates and joint ventures' interests decreased by 14% to HKD 30.8 billion (2021: HKD 35.9 billion)[64] - Long-term investments totaled HKD 48.9 billion (2021: HKD 52.9 billion), with HKD 40.3 billion in listed equities (2021: HKD 44.1 billion)[65] - Sales deposits decreased by 15% to HKD 8.2 billion (2021: HKD 9.6 billion), to be recognized in the coming years[66] - Net debt decreased by 60% to HKD 5.3 billion as of December 31, 2022, compared to HKD 13.2 billion in 2021, primarily due to the sale of long-term investments and reduced construction costs offset by land premium payments for the Kowloon Godown redevelopment[67] - The net debt to total equity ratio further declined to 3.4% in 2022 from 7.9% in 2021, reflecting a stronger financial position[67] - Total available credit facilities and issued debt securities amounted to HKD 35.9 billion, with HKD 19.9 billion utilized as of December 31, 2022[68][69] - The company's debt portfolio is primarily denominated in USD, HKD, and RMB, with funds mainly used for investment properties, development properties, and port investments[70] - Operating cash inflow before working capital changes was HKD 5.1 billion in 2022, down from HKD 7.5 billion in 2021, with total operating cash inflow reaching HKD 6.2 billion[71] - Total capital and development expenditures for 2022 amounted to HKD 7.905 billion, with HKD 6.546 billion allocated to development properties[72] - Future commitments for major expenditures over the next few years are estimated at HKD 21.654 billion, with HKD 8.163 billion already committed[74] - The company's dividend policy aims to distribute approximately 30% of its underlying net profit, subject to board approval based on financial performance and cash flow[75] - The first interim dividend of HKD 0.20 per share was paid on September 15, 2022, and the second interim dividend of HKD 0.20 per share will be paid on April 27, 2023, totaling HKD 0.40 per share for the year[134] - Revenue for 2022 decreased to HKD 18,064 million from HKD 22,378 million in 2021, a decline of 19.3%[192] - Operating profit before depreciation, amortization, interest, and taxes dropped to HKD 7,320 million in 2022 from HKD 9,290 million in 2021, a decrease of 21.2%[192] - Net loss attributable to shareholders was HKD 1,705 million in 2022, compared to a profit of HKD 6,019 million in 2021[192] - Basic and diluted loss per share was HKD 0.56 in 2022, down from a profit of HKD 1.97 per share in 2021[192] - Total comprehensive loss for 2022 was HKD 9,241 million, compared to a comprehensive income of HKD 4,758 million in 2021[193] - Fair value changes in equity investments resulted in a loss of HKD 1,520 million in 2022, compared to a loss of HKD 4,054 million in 2021[193] - Exchange differences on translation of Mainland operations led to a loss of HKD 5,035 million in 2022, compared to a gain of HKD 1,929 million in 2021[193] - Share of other comprehensive income from associates and joint ventures was a loss of HKD 1,252 million in 2022, compared to a gain of HKD 544 million in 2021[193] - Total assets decreased to HKD 221,745 million in 2022 from HKD 253,700 million in 2021, a decline of 12.6%[194] - Investment properties decreased to HKD 69,222 million in 2022 from HKD 76,525 million in 2021, a decline of 9.5%[194] - Bank deposits and cash decreased to HKD 14,648 million in 2022 from HKD 23,559 million in 2021, a decline of 37.8%[194] - Total liabilities decreased to HKD 66,038 million in 2022 from HKD 87,323 million in 2021, a decline of 24.4%[194] - Net assets decreased to HKD 155,707 million in 2022 from HKD 166,377 million in 2021, a decline of 6.4%[194] - The company reported a net loss of HKD 1,705 million in 2022 compared to a net profit of HKD 6,019 million in 2021[195] - Other comprehensive income showed a loss of HKD 7,508 million in 2022 compared to a loss of HKD 1,706 million in 2021[195] - Total equity decreased to HKD 155,707 million in 2022 from HKD 166,377 million in 2021, a decline of 6.4%[195] - The company paid dividends of HKD 611 million for the second interim dividend of 2021 and the first interim dividend of 2022[195] - Non-controlling interests' dividends paid were HKD 207 million in 2022 compared to HKD 710 million in 2021[195] - Operating cash inflow from operations increased to HKD 6,692 million in 2022 from HKD 3,553 million in 2021, reflecting improved operational efficiency[199] - Net cash from investing activities decreased to HKD 4,312 million in 2022 from HKD 11,314 million in 2021, primarily due to lower proceeds from the sale of other long-term investments[196] - Net cash used in financing activities increased to HKD 17,552 million in 2022 from HKD 7,414 million in 2021, driven by higher repayments of bank and other borrowings[196] - Cash and cash equivalents decreased by HKD 7,057 million in 2022, ending the year at HKD 14,648 million compared to HKD 23,559 million at the end of 2021[196] - The company paid HKD 1,222 million in dividends to company shareholders in both 2022 and 2021, maintaining consistent shareholder returns[196] - Interest paid decreased to HKD 132 million in 2022 from HKD 494 million in 2021, reflecting lower interest expenses[196] - Proceeds from the sale of other long-term investments decreased to HKD 14,273 million in 2022 from HKD 23,284 million in 2021, impacting overall investment cash flow[196] - New bank and other borrowings decreased significantly to HKD 8,258 million in 2022 from HKD 35,123 million in 2021, indicating reduced reliance on external financing[196] - The company's operating profit decreased to HKD 6,603 million in 2022 from HKD 8,536 million in 2021, reflecting challenging market conditions[199] - Cash and cash equivalents at the end of 2022 were HKD 14,648 million, down from HKD 23,559 million at the end of 2021, primarily due to higher cash outflows in financing activities[198] Sustainability and ESG Initiatives - The company has set a long-term goal for 2030 to reduce water usage, carbon emissions, electricity intensity, and waste as part of its sustainability efforts[4] - The company was awarded the AA+ rating in the Hang Seng ESG Index and received the Social Responsibility Advanced Index certification from the Hong Kong Quality Assurance Agency[4] - The group is integrating green efforts and has set a long-term goal for 2030 to reduce carbon emissions, energy intensity, water, and waste[16] - The group's ESG rating improved to AA+ in 2022, and it remains a constituent of the Hang Seng Sustainability Index Series[16] - The company implemented a Climate Change Policy Statement to address climate-related risks and opportunities, following TCFD recommendations[46] - Shanghai Wheelock Square achieved LEED Platinum certification, and Shanghai Times Square obtained ISO 50001 Energy Management System certification in 2022[47] - Wharf Holdings secured green loans to enhance the environmental performance of Chengdu IFS and Changsha IFS, and raised sustainability-linked loans to support ESG improvements[48] - The group's climate risk assessment includes scenario analysis to identify physical and transition risks and opportunities under different climate conditions[178] - The group's sustainability efforts are detailed in the independently published "Sustainability Report 2022"[178] Logistics and Infrastructure - The company's Modern Terminals and Hong Kong Air Cargo Terminals are key contributors to Hong Kong's status as an international trade and transportation hub[3] - Modern Terminals handled over 140 million TEUs in its 50 years of operation, but faced challenges in 2022 with declining throughput due to external environment deterioration and cross-border restrictions[13] - Throughput at Modern Terminals in Hong Kong decreased by 11% to 4.4 million TEUs, while Shenzhen's throughput increased by 19% to 2 million TEUs[35] - Hong Kong Air Cargo Terminals' cargo volume decreased by 18% to 1.6 million tons due to weak demand and cross-border restrictions[36] - The logistics segment, operating container terminals in Hong Kong and China, faces risks from global economic downturns, geopolitical tensions, and supply chain decentralization, with efforts focused on improving operational efficiency and financial stability[174] Corporate Governance and Board Structure - The company's Board of Directors consists of 12 members, including 5 executive directors and 7 independent non-executive directors, with a female representation of 25%[85] - The company aims to maintain at least the current level of female representation on the Board, with an ultimate goal of achieving gender equality[85] - The company's Board diversity includes 25% male and 75% female representation, with age groups primarily between 60-69 years (42%) and 70 years or above (50%)[87] - The company's Board members have diverse professional experiences across industries such as finance/accounting, real estate development, logistics, and public service[87] - The company adheres to the Corporate Governance Code, with the exception of Code Provision C.2.1, which allows the Chairman to also serve as the Managing Director for strategic planning efficiency[81] - The company has strengthened its corporate governance framework to ensure proper management, transparency, and accountability, benefiting shareholders and stakeholders[79] - The company's corporate culture is deeply rooted in high standards of business ethics and integrity, aligned with its mission and strategic goals[82] - The company's risk management framework includes oversight of major risks, including environmental, social, and governance (ESG) risks, and internal control systems[84] - The company's nomination committee reviews the

Financial Performance - The group reported a 33% decrease in revenue, with operating profit down 19%[4] - The basic net profit increased to HKD 428 million, compared to a loss of HKD 360 million in the previous year[5] - Revenue from Hong Kong properties decreased by 75% to HKD 603 million, with operating profit down 40% to HKD 412 million[8] - Revenue from mainland China development properties decreased by 29% to HKD 49.91 billion, with operating profit down 44% to HKD 609 million[9] - The group recorded a 60% decrease in contracted sales to RMB 2.3 billion, with an area of 78,000 square meters involved[9] - Group revenue decreased by 33% to HKD 8.209 billion, down from HKD 12.337 billion in 2021[17] - Operating profit decreased by 19% to HKD 3.479 billion, compared to HKD 4.301 billion in 2021[17] - Shareholders' profit decreased by 95% to HKD 57 million, down from HKD 1.038 billion in 2021[23] - The net profit attributable to shareholders for the six months ended June 30, 2022, was HKD 175 million, a significant drop of 84.7% from HKD 1,150 million in the previous year[41] - Total comprehensive income for the period was HKD (3,810) million, compared to HKD 6,908 million in the same period of 2021, indicating a decline of 155.2%[41] Asset and Equity Changes - Total assets decreased by 3% to HKD 222.5 billion, down from HKD 228.6 billion in 2021[26] - Total equity decreased by 3% to HKD 157.6 billion, compared to HKD 162 billion in 2021[25] - Development property assets decreased by 9% to HKD 44.4 billion, including mainland development properties at HKD 21.1 billion and Hong Kong development properties at HKD 23.3 billion[28] - The equity in joint ventures and associates decreased to HKD 34 billion, down from HKD 35.9 billion[29] - The net asset value as of June 30, 2022, was HKD 161,950 million, down from HKD 166,377 million, a decline of 2.6%[42] Cash Flow and Debt Management - The group recorded a net cash inflow of HKD 2.7 billion from operating activities, with a significant increase in sales deposits contributing to this[35] - Net debt decreased by 18% to HKD 10.9 billion, with a net debt to total equity ratio of 6.7%[31] - Cash and cash equivalents decreased by HKD 4,192 million during the six months ended June 30, 2022, compared to an increase of HKD 3,164 million in the same period of 2021[44] - Total bank borrowings and other borrowings as of June 30 were HKD 29.281 billion, down from HKD 36.745 billion at the end of 2021[64] Segment Performance - The group operates in five reportable segments: investment properties, development properties, hotels, logistics, and investments, with a focus on diversifying its business operations[48] - The logistics segment generated revenue of HKD 1,542 million, an increase from HKD 1,361 million in the previous year, showing a growth of approximately 13.3%[50] - Revenue from investment properties was HKD 2,595 million, while revenue from development properties was HKD 2,674 million, indicating a significant drop from HKD 6,704 million in the previous year[50] Dividend and Shareholder Information - The first interim dividend remains unchanged at HKD 0.20 per share, totaling HKD 610 million[6] - The first interim dividend declared was HKD 0.20 per share, totaling HKD 611 million, consistent with the previous year[60][61] - The company has a significant shareholder, K. Wah International Holdings Limited, holding 1,942,964,551 shares, representing 63.58% of the total issued shares[84] Governance and Compliance - The company has complied with all corporate governance codes except for one, which allows the same person to serve as both chairman and CEO[78] - The company’s board of directors includes independent non-executive directors, ensuring governance and oversight[90] - All directors have adhered to the company's securities trading code during the reporting period[79] Investment and Fair Value Changes - The investment property portfolio is valued at HKD 74.8 billion, accounting for 34% of total assets, with mainland properties valued at HKD 56.9 billion and Hong Kong properties at HKD 17.9 billion[27] - The fair value change of equity investments resulted in a loss of HKD (602) million, contrasting with a gain of HKD 4,776 million in the prior year[41] - The fair value of listed investments as of June 30, 2022, is HKD 45,569 million, an increase from HKD 44,100 million as of December 31, 2021[67]