Core Viewpoint - Hang Lung Group is facing ongoing performance pressure but is actively expanding its presence in key mainland cities to mitigate revenue fluctuations [1][3]. Financial Performance - For the first half of 2025, Hang Lung reported total revenue of HKD 5.202 billion, a year-on-year decline of 18% [3]. - Property sales revenue plummeted by 87% to HKD 161 million, significantly impacting overall performance [3]. - Rental income decreased by 3% to HKD 4.912 billion, now accounting for 94% of total revenue [1][3]. - The overall operating profit fell by 6% to HKD 3.408 billion, with net profit attributable to shareholders at HKD 1.191 billion, affected by reduced rental profits and increased financial costs [3]. Strategic Initiatives - In July, Hang Lung announced plans to lease two properties in the core Wulin business district of Hangzhou for 20 years, with a total rental of approximately HKD 3.336 billion [1]. - This expansion is expected to increase Hang Lung's commercial footprint in the Wulin area by 40%, enhancing visibility and accessibility for Hangzhou Hang Lung Plaza [1][7]. Market Outlook - The company anticipates a slight recovery in retail business in the second half of the year, driven by improved market sentiment and consumer confidence [4]. - Hang Lung's ongoing projects in Shanghai and Hangzhou are crucial for its growth strategy, with Shanghai remaining the most significant market for the company [5][9]. Development Projects - Hang Lung is developing a high-end commercial complex in Hangzhou, which includes a shopping mall, office buildings, and a hotel, set to open in phases starting in the second half of 2025 [5][7]. - The company has ongoing construction projects valued at HKD 26.137 billion in rental assets and HKD 8.118 billion in saleable assets, primarily in mainland cities [9].

Core Viewpoint - Hang Lung Group demonstrates a resilient business model amidst a challenging macroeconomic environment, despite a significant decline in revenue for the first half of 2025 [1][2]. Financial Performance - Total revenue for Hang Lung Group and Hang Lung Properties decreased by 18% and 19% to HKD 5.202 billion and HKD 4.968 billion, respectively, with mainland China contributing HKD 3.502 billion and Hong Kong contributing HKD 1.7 billion [1][2]. - Property sales revenue plummeted by 87% to HKD 161 million, while core leasing income showed relative stability, with rental income and operating profit down by 3% and 4% to HKD 4.912 billion and HKD 3.499 billion, respectively [2]. - Shareholders' net profit for Hang Lung Group fell by 7% to HKD 1.191 billion, and for Hang Lung Properties, it decreased by 9% to HKD 1.587 billion [2][3]. Debt and Financial Strategy - As of the reporting date, total borrowings amounted to HKD 55.972 billion, with 42% denominated in RMB as a natural hedge against mainland investments [3]. - Fixed-rate debt accounted for 42% of total debt, including bonds and fixed-rate bank loans [3]. Market Adaptation and Strategy - The company is adjusting its mall brand mix to adapt to changing retail market conditions and consumer habits, eliminating the categorization of malls into "high-end" and "sub-high-end" [3]. - In Hong Kong, the company is implementing measures such as offering fully furnished or partitioned office space solutions to meet tenant demands [3]. Future Outlook and Expansion - The company is optimistic about achieving "micro-growth" in 2025, although the performance in the second half of the year will be crucial [4][5]. - Hang Lung is intensifying its market presence in mainland China, with a significant 20-year operating lease signed for the Hangzhou department store, which will increase retail space by 40% [6][7]. - Upcoming projects include the Hangzhou Hang Lung Plaza, which is expected to enhance revenue and returns significantly, with a current pre-leasing rate of approximately 81% [7][8]. Challenges and Market Conditions - The overall office market remains challenging, with rising vacancy rates and declining rents due to insufficient demand for premium office spaces [2]. - The uncertain market environment poses challenges for upcoming projects, particularly if economic pressures continue to affect high-end consumer markets [8].

Core Viewpoint - The company is confident in achieving slight growth this year, contingent on the performance in the third and fourth quarters [1] Financial Performance - In the first half of 2025, the company reported total revenue of HKD 52.02 billion, a decrease of 18% compared to HKD 63.79 billion in the same period of 2024 [1] - Overall operating profit was HKD 34.08 billion, down 6% from HKD 36.13 billion year-on-year [1] - Shareholders' basic net profit was HKD 11.91 billion, a decline of 7% from HKD 12.81 billion in 2024 [1] Property Sales - Property sales revenue fell significantly to HKD 1.61 billion, down 87% year-on-year, with mainland property sales at HKD 0.1 billion (down 60%) and Hong Kong property sales at HKD 1.51 billion (down 87%) [1] Hotel Business - The hotel segment showed strong performance with revenue of HKD 1.29 billion, an increase of 84% year-on-year, all derived from mainland operations [1] - The Shenyang Conrad Hotel generated HKD 0.62 billion (down 3%), while the newly opened Kunming Hyatt Hotel achieved HKD 0.57 billion in revenue [1] Rental Income - Rental income remained stable, decreasing only 3% to HKD 49.12 billion, despite a slowdown in consumer and office demand in Hong Kong and mainland China [2] - Shanghai Hang Lung Plaza was the top performer with revenue of HKD 8.22 billion, significantly higher than other locations [2] Office Market Performance - The office rental market faced challenges with declining occupancy rates across several properties, attributed to oversupply [3] - Shanghai Hang Lung Plaza's income dropped 7% due to market pressures, with occupancy falling to 82% [3] Future Developments - The company has signed a 20-year operating lease with Baida Group for the Hangzhou department store, which will increase retail space by 40% [4] - The total value of properties available for lease and sale is HKD 261.37 billion and HKD 81.18 billion, respectively, including various development projects [5] - The Hangzhou project is expected to open in mid-2026, with a pre-leasing rate of 81% [6]

Financial Data and Key Metrics Changes - The core rental business saw a decline of 3%, which was anticipated at the beginning of the year, with hopes for improvement in the second half [7][8] - Overall revenue contribution from property sales and hotel business accounted for 33% of total revenue, down 6% [8] - The Mainland China rental revenue decreased by 1% in renminbi terms, but due to RMB depreciation, it was down by 2% in Hong Kong dollars [9][10] - Hong Kong rental revenue decreased by 4%, with the core rental business representing 94% of total operations [10][11] - Net gearing stood at 33.5%, with a slight increase of 0.1% compared to December [35] Business Line Data and Key Metrics Changes - Rental revenue in Mainland China improved from a decline of 4% in 2024 to a decline of 1% in 2025 [11] - Retail business remained flat compared to a decline of 3% in 2024, with seven out of ten projects showing positive growth [12] - The hotel business was reclassified under property, contributing to the overall revenue decline [10] - New letting increased by 36%, indicating strong demand despite market challenges [17] - The occupancy rate improved from 83% to 88% in certain properties, reflecting effective management strategies [19] Market Data and Key Metrics Changes - The retail landscape in Mainland China has evolved, with athleisure brands performing better than luxury brands [16] - The company is focusing on enhancing customer experience through events and tenant management to adapt to changing consumer behavior [16] - The luxury retail segment saw a decline of 12%, while other segments showed resilience [90] Company Strategy and Development Direction - The company aims to leverage its strengths and adapt to market changes, focusing on customer-centric strategies and enhancing tenant offerings [16][18] - Plans to launch a national program to improve operational efficiency and attract foot traffic in second-tier cities [16] - The company is exploring hybrid models for expansion, particularly in cities where it already has a presence [61] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the stability and potential uplift in the market, with expectations for mild growth in the second half of the year [6][62] - The sentiment in the property sector has stabilized, contributing to improved occupancy and traffic [66] - Management acknowledged the challenges posed by competition and the need for differentiation in the retail space [76] Other Important Information - The company is committed to sustainability, with 80% of projects in Mainland China powered by renewable energy [39] - The company is focusing on maintaining a strong balance sheet and managing finance costs effectively [36][38] Q&A Session Summary Question: Future expansion using high room property models - Management indicated that expansion will only occur when there is demand and synergy with existing projects [60] Question: Tenant sales trend in the next twelve months - Management anticipates a potential improvement from negative sales to mild growth in the second half of the year [62] Question: Reasons for improvement in the second quarter - Factors included improved occupancy, traffic, and external market conditions stabilizing [66] Question: Dividend guidance for the full year - Management intends to maintain a flat dividend, with discussions ongoing regarding future cash dividends [83][84] Question: Potential issuance of convertible bonds - Management is cautious about dilutive instruments and is monitoring the market but does not plan to issue convertible bonds at this time [72][73] Question: Transition progress in specific projects - Management reported improvements in occupancy and traffic, with a focus on enhancing the tenant mix and customer experience [74][75]

Financial Data and Key Metrics Changes - The core rental business revenue decreased by 3%, which was anticipated at the beginning of the year, with hopes for improvement in the second half [8][10] - Overall revenue contribution from property sales and hotel business accounted for 33% of total revenue, down by 6% [9][10] - The net gearing of Hang Lung Properties stood at 33.5%, reflecting a slight increase of 0.1% compared to December [35] Business Line Data and Key Metrics Changes - Rental revenue in Mainland China decreased by 1% in the first half of 2025, an improvement from a 4% decline in 2024 [12][10] - Retail business remained flat compared to a 3% decline in 2024, with seven out of ten projects showing positive revenue growth [13][14] - The office segment continued to face challenges, with a decline of 4% in rental revenue [28][30] Market Data and Key Metrics Changes - Hong Kong's rental revenue saw a decline of 4%, but residential and service apartment rentals improved by 11% [32][30] - The overall sales in Hong Kong decreased by 2%, which is better than the market average decline of 4% [33][32] - The luxury retail segment reported a decline of 12%, while non-luxury sales increased by 8% [97] Company Strategy and Development Direction - The company is focusing on enhancing its retail offerings and tenant management to adapt to the evolving retail landscape [17][19] - A national program is being launched to improve operational efficiency and attract customers in second-tier cities [17] - The company is exploring hybrid models for expansion, particularly in cities where it already has a presence [65] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the stability and potential uplift in the market, particularly in the second half of the year [6][10] - The sentiment in the property sector has stabilized, which may lead to mild growth in tenant sales [66][71] - The company is committed to maintaining its dividend policy, with intentions to return to a cash dividend structure after the Westlake 66 Mall opens [88][89] Other Important Information - The company has increased its focus on renewable energy, with 80% of its projects in Mainland China now powered by renewable sources [41] - The company is actively working on several projects, including the Westlake 66 Mall, which is expected to enhance its market position [44][49] Q&A Session Summary Question: Future expansion using asset-light models - Management indicated that future expansions will depend on demand and synergy with existing projects, emphasizing a holistic approach [64][65] Question: Tenant sales trends in the next twelve months - Management anticipates a potential improvement in tenant sales, moving from a negative trend to mild growth in the second half of the year [66][71] Question: Reasons for improvement in the second quarter - The improvement was attributed to increased occupancy and traffic, along with external factors such as stock market stabilization [70][71] Question: Dividend policy for the full year - Management intends to maintain the current dividend structure, with a focus on not cutting dividends unless absolutely necessary [76][88] Question: Thoughts on issuing convertible bonds - The CFO expressed caution regarding dilutive instruments, noting that the company is not considering issuing convertible bonds at this time [78][79] Question: Progress on transitioning properties - Management reported improvements in occupancy rates and is focused on enhancing the tenant mix to attract customers [79][82]

Financial Performance - Hang Lung Properties (HLP) - HLP's total revenue decreased by 19% YoY to HK$4968 million [8] - Rental revenue decreased by 3% YoY to HK$4678 million [8] - Sales revenue decreased significantly by 87% YoY to HK$161 million [8] - Hotel revenue increased significantly by 84% YoY to HK$129 million [8] - Underlying profit decreased by 9% YoY to HK$1587 million [8] Financial Performance - Hang Lung Group (HLG) - HLG's total revenue decreased by 18% YoY to HK$5202 million [10] - Rental revenue decreased by 3% YoY to HK$4912 million [10] - Sales revenue decreased significantly by 87% YoY to HK$161 million [10] - Hotel revenue increased significantly by 84% YoY to HK$129 million [10] - Underlying profit decreased by 7% YoY to HK$1191 million [10] Mainland China Rental Performance (HLP) - Mainland China rental revenue decreased by 1% YoY to RMB 2941 million [14] - Retail rental revenue in Mainland China remained flat YoY at RMB 2412 million [14, 17] - Office rental revenue in Mainland China decreased by 5% YoY to RMB 528 million [14, 62] Hong Kong Rental Performance (HLP) - Hong Kong rental revenue decreased by 4% YoY to HK$1488 million [12, 65] - Retail rental revenue in Hong Kong decreased by 7% YoY to HK$874 million [65] - Office rental revenue in Hong Kong decreased by 1% YoY to HK$502 million [65] - Residential & serviced apartments rental revenue in Hong Kong increased by 11% YoY to HK$112 million [65]

Financial Performance - The total revenue of Hang Lung Group and Hang Lung Properties decreased by 18% and 19% to HKD 5.202 billion and HKD 4.968 billion, primarily due to a reduction in property sales revenue [1][7] - Core property leasing income remained stable, only declining by 3%, with overall rental rates for mainland shopping malls maintaining a high level of 94% [1][7] - Shareholders' basic net profit for Hang Lung Group and Hang Lung Properties fell by 7% and 9% to HKD 1.191 billion and HKD 1.587 billion, mainly due to rising financial costs [1][8] Strategic Developments - A 20-year operating lease agreement was signed with Baida Group for the south and north buildings of Hangzhou Department Store, potentially adding approximately 42,000 square meters of retail space, a 40% increase [2] - The Hangzhou Hang Lung Plaza is set to open in phases starting in the second half of 2025, with a current pre-leasing rate of about 77% [5] - The second phase of the Wuxi Hang Lung Plaza development is also scheduled to open in phases starting in the second half of 2025 [4] - The third phase expansion of Shanghai Hang Lung Plaza was successfully topped off in June this year, with an expected opening in the second half of 2026 [6] Sustainability Initiatives - 80% of the operational properties in mainland China are now powered by renewable energy, a significant increase from 50% last year, exceeding the 2025 target of 25% [7][10] - The company has committed to achieving net-zero emissions by 2050, demonstrating its leadership in sustainable development within the real estate industry [10] Dividend Announcements - The board of Hang Lung Group announced an interim dividend of HKD 0.21 per share, to be distributed on September 24, 2025 [8] - Hang Lung Properties also announced an interim dividend of HKD 0.12 per share, with a cash or scrip option for shareholders [9] Market Position and Strategy - The company has shown resilience in its business model despite market pressures, with a gradual recovery in property performance [9] - The diversified property portfolio in Hong Kong includes prime office buildings and luxury residential projects, while the mainland projects are recognized as quality commercial landmarks [10]

恒隆集团(00010)发布公告，该公司将于2025年9月24日派发中期股息每股0.21港元。 ...

智通财经APP讯，恒隆集团(00010)发布公告，该公司将于2025年9月24日派发中期股息每股0.21港元。 ...

Group 1: Financial Performance - The company reported a revenue of HKD 5.202 billion for the first half of 2025, representing a year-on-year decrease of 18.45% [1] - Shareholders' net profit was HKD 0.697 billion, down 21.51% compared to the previous year [1] - Earnings per share based on shareholders' net profit stood at HKD 0.51 [1] Group 2: Business Development and Marketing - The company is actively developing investment projects, including the second phase of Wuxi Hang Lung Plaza, Hangzhou Hang Lung Plaza, Shanghai Hang Lung Plaza expansion, and a new co-working space project in Hong Kong called NET WORK [1] - To celebrate its 65th anniversary, the company organized a series of marketing activities nationwide, which successfully increased customer traffic and strengthened customer relationships [1] - The company anticipates that these initiatives will further improve revenue and enhance brand loyalty [1] Group 3: Retail Performance - The overall income from the shopping mall portfolio remained stable, despite a cautious trend in high-end consumer spending [1] - Targeted marketing projects were launched to drive revenue and customer traffic, tailored to the unique preferences of different customer segments [1] - Overall occupancy rates remained high, although certain malls experienced rental income declines due to competitive pricing and promotional efforts from peers [1] Group 4: Office Leasing Market - The office leasing market continues to be weak due to economic uncertainty, with overall income declining by 4% year-on-year to RMB 638 million [2] - The revenue from Shanghai Hang Lung Plaza's Grade A office space saw a significant drop of 77%, attributed to tenant relocations, changing demand patterns, and cost-effectiveness considerations [2] - Despite multiple market pressures, the company successfully maintained high levels of property management services and actively retained quality tenants [2]