Revenue Performance - Total revenue for the year ended December 31, 2023, decreased by 1% to HKD 10,881 million, impacted by RMB depreciation and a decline in property sales revenue[4] - Total revenue for 2023 reached HKD 219.081 billion, a slight increase from HKD 214.679 billion in 2022[57] - Total revenue for 2023 was HKD 10,881 million, a slight decrease of 0.5% from HKD 10,941 million in 2022[55] Rental Income - Rental income increased by 2% to HKD 10,879 million, with mainland rental income rising by 3% and Hong Kong rental income also increasing by 2%[5] - Total rental income for 2023 increased by 7% to RMB 6,651 million, with operating profit rising by 8%[8] - Overall rental income growth in Hong Kong dollars was limited to 3% due to the depreciation of the RMB[8] Profitability - Overall operating profit rose by 1% to HKD 7,794 million, with a breakdown showing mainland operating profit at HKD 5,007 million and Hong Kong at HKD 2,787 million[3] - Shareholders' basic net profit decreased by 2% to HKD 2,931 million, resulting in basic earnings per share of HKD 2.15[4] - The net profit for the year was HKD 4,915 million, representing an increase of 2.5% compared to HKD 4,795 million in 2022[50] Property Sales and Valuation - The net revaluation loss of properties attributable to shareholders was HKD 120 million, compared to a loss of HKD 284 million in 2022[4] - Property sales revenue significantly dropped to HKD 2 million in 2023 from HKD 316 million in 2022[55] - The company reported a net gain from the sale of non-core investment properties amounted to HKD 11 million during the reporting year[27] Debt and Financial Position - The net debt-to-equity ratio increased to 28.6% from 25.9% in the previous year[3] - Total borrowings as of December 31, 2023, reached HKD 50,693 million, up from HKD 45,953 million in 2022, with RMB-denominated borrowings constituting 29%[36] - The average effective borrowing rate rose to 4.3% in 2023 from 3.5% in 2022, leading to a 29% increase in total financial costs to HKD 1,987 million[42] Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.65 per share, maintaining the same level as the previous year[6] - Basic earnings per share for 2023 were HKD 2.15, down from HKD 2.20 in 2022, indicating a decrease of 2.3%[66] Operational Highlights - Tenant sales and rental income in mainland China increased by 23% and 7% respectively year-on-year, reflecting a recovery in business[7] - Hotel operations saw a significant recovery, with revenue increasing by 90% year-on-year due to the easing of travel restrictions[8] - The company plans to enhance its shopping experience by constructing a new retail building of approximately 3,000 square meters at Shanghai Hang Lung Plaza[11] Employee and Governance - As of December 31, 2023, the total number of employees was 4,213, including 968 in Hong Kong and 3,245 in mainland China[71] - The company adhered to the corporate governance code as per the Hong Kong Stock Exchange during the year[72] - The company regularly reviews employee compensation to ensure competitiveness and compliance with regulations[71] Future Plans and Projects - The company plans to launch several new projects in mainland China, including high-end serviced apartments and hotels, with phased completions starting in 2024[31] - The company plans to launch new projects, including Hangzhou Henglong Plaza by the end of 2024 and Kunming Junyue Hotel in mid-2024, to capture post-pandemic business and leisure travel opportunities[48] Environmental Initiatives - The company has established a strategic partnership with a carbon capture technology firm to develop low-carbon recycled aggregates, marking a significant step towards decarbonization in real estate projects[45] - The company successfully reduced urban solid waste by nearly 140,000 kg and avoided over 510 tons of carbon emissions through its office renovation project[46]

Financial Performance - Total revenue for the six months ended June 30, 2023, decreased by 1% to HKD 5.525 billion, impacted by RMB depreciation and reduced property sales revenue[5]. - Basic earnings attributable to shareholders decreased by 3% to HKD 1.560 billion, with basic earnings per share falling to HKD 1.15[5]. - After accounting for property revaluation impacts, net profit attributable to shareholders increased by 17% to HKD 1.682 billion, with earnings per share rising to HKD 1.24[5]. - The basic net profit attributable to shareholders decreased by 3%, while property rental profit increased by 2% to HKD 1.571 billion[12]. - The net profit attributable to shareholders rose by 17% to HKD 1.682 billion, including slight net revaluation gains[12]. - The profit attributable to shareholders for the period was HKD 1,682 million, an increase of 17.6% compared to HKD 1,439 million in 2022[112]. - The company reported a net profit of HKD 1,682 million for the six months ended June 30, 2023, contributing to total equity of HKD 91,569 million[94]. - The total comprehensive income for the period was a loss of HKD 644 million, compared to a loss of HKD 2,755 million in the previous year, indicating an improvement[92]. Revenue Sources - Rental income increased by 4% to HKD 5.523 billion, reflecting improved leasing performance[5]. - Approximately 30% of the company's recurring rental income is derived from the Hong Kong market, despite a strategic shift towards the mainland commercial property market[7]. - Rental income in mainland China increased by 12% in the past six months, but due to a 6.3% depreciation of the RMB against HKD, the actual growth recorded was only 5%[12]. - The rental income from high-end shopping malls in mainland China saw tenant sales increase by over 100%, with two malls experiencing sales growth of 2.5 to 3 times[12]. - The overall rental income from the office portfolio typically experiences a decline of less than 4% annually, indicating strong resilience[11]. - The overall revenue of high-end malls increased by 16% to RMB 2,189 million, with individual mall revenue growth ranging from 6% to 23% compared to the same period last year[28]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.21 per share, to be distributed on September 29, 2023[5]. - The interim dividend for 2023 was declared at HKD 0.21 per share, unchanged from 2022[24]. - The company plans to distribute an interim dividend of HKD 286 million, maintaining the same level as in 2022[109]. Market Outlook and Strategy - The company anticipates a systematic transformation in the Hong Kong real estate market, with increasing land supply expected to pressure property prices[8]. - The company believes that the mainland economy is likely to perform reasonably well in the coming years, despite current market weaknesses in Hong Kong[8]. - The company acknowledges the challenges and necessary adjustments for Hong Kong's economy to maintain its competitive position in a changing global landscape[8]. - The company emphasizes a cautious approach to expansion in light of current economic uncertainties and risks[9]. Property and Investment Developments - The company has accumulated significant financial resources and industry expertise over the years, which supports its operations in the mainland market[7]. - The company has not been active in the general residential market for over 20 years, avoiding high-priced land and property challenges[13]. - The company plans to remain vigilant for future land acquisition opportunities despite not purchasing land this year[14]. - The company has established a real estate research center at Tsinghua University to focus on sustainable development and innovation in real estate technology[61]. Financial Position and Debt Management - The net debt to equity ratio increased to 27.1% from 25.9% in December 2022[21]. - The total borrowing as of June 30, 2023, was HKD 47,453 million, up from HKD 45,953 million at the end of 2022, with 28% denominated in RMB[52]. - The average repayment period of the overall debt portfolio was 3.2 years as of June 30, 2023, with approximately 72% of loans due after two years[56]. - The company issued green bonds worth HKD 400 million and secured green loan credit facilities of HKD 500 million, representing 48% of total debt and available credit facilities[50]. Corporate Governance - The company maintains high standards of corporate governance, emphasizing a competent board, sound internal controls, and effective risk management as of June 30, 2023[65]. - The board consists of 11 members, including 4 executive directors, 3 non-executive directors, and 4 independent non-executive directors, ensuring a balanced distribution of power and authority[66]. - The company has complied with the Corporate Governance Code as stipulated in the Hong Kong Stock Exchange Listing Rules during the six months ending June 30, 2023[69]. Employee and Shareholder Information - Employee count as of June 30, 2023, was 4,204, including 988 in Hong Kong and 3,216 in mainland China[85]. - Total employee costs for the six months ended June 30, 2023, amounted to HKD 950 million[85]. - Major shareholder Chen Wenbo holds 551,002,580 shares, representing 40.47% of the total issued shares[81]. - The company has implemented share option plans to incentivize selected participants, including employees and directors, to contribute to the group's future development[74].

Financial Performance - Total revenue for the first half of 2023 decreased by 1% to HKD 5,525 million compared to HKD 5,605 million in 2022[5] - Basic earnings attributable to shareholders decreased by 3% to HKD 1,560 million, with basic earnings per share at HKD 1.15[5] - Net profit attributable to shareholders, including property revaluation gains, was HKD 1,682 million, up from HKD 1,439 million in 2022[5] - Operating profit rose by 3% to HKD 4,034 million, compared to HKD 3,929 million in the previous year[6] - Net profit for the same period increased to HKD 2,909 million, up 16.0% from HKD 2,507 million in 2022[50] - Profit before tax for the period was HKD 3,756 million, an increase of 18.9% compared to HKD 3,157 million in 2022[56] - The company reported a fair value increase of properties amounting to HKD 241 million, compared to a decrease of HKD 217 million in 2022[49] Revenue Breakdown - Property leasing income increased by 4% to HKD 5,523 million, while property sales revenue was HKD 2 million, down from HKD 316 million in 2022[5] - The shopping mall segment recorded a revenue growth of 13%, with high-end malls increasing by 16% and mid-range malls declining by 3%[10] - The overall revenue for high-end malls grew by 16%, benefiting from improved market conditions and increased tenant sales during festive periods[12] - The overall tenant sales and leasing income in 2023 increased by 42% and 12% respectively compared to the same period last year[8] - Retail property revenue in Hong Kong grew by 6% to HKD 1.019 billion, with tenant sales up 21%[22] - The office building segment contributed 21% to total rental income, with total revenue increasing by 4% to RMB 701 million[15] Property Valuation and Investment - As of June 30, 2023, the total value of investment properties and properties under development is HKD 196.643 billion, with mainland properties valued at HKD 132.867 billion and Hong Kong properties at HKD 63.776 billion[28] - The company recorded a property revaluation gain of HKD 241 million, compared to a loss of HKD 217 million in 2022[28] - The mainland property portfolio achieved a revaluation gain of HKD 208 million, while the Hong Kong portfolio recorded a gain of HKD 33 million, compared to a loss of HKD 70 million in 2022[28] - The total value of properties under development for lease and sale is HKD 21.494 billion and HKD 11.222 billion, respectively[28] Debt and Financial Ratios - The net debt to equity ratio increased to 27.1% from 25.9%[4] - The total borrowings as of June 30, 2023, were HKD 47.453 billion, an increase from HKD 45.953 billion at the end of 2022[35] - Fixed-rate debt accounted for 38% of the total borrowings, while floating-rate debt made up 62%[37] - The total financial expenses increased by 21% to HKD 897 million in the first half of 2023, with the average effective borrowing rate rising to 4.0% from 3.5% in 2022[42] - The interest coverage ratio for the first six months of 2023 was 4 times, down from 5 times in 2022[42] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.21 per share, unchanged from the previous year[7] - The interim dividend proposed for 2023 remains unchanged at HKD 0.21 per share, consistent with the previous year[63] Employee and Corporate Governance - As of June 30, 2023, the total number of employees was 4,204, including 988 in Hong Kong and 3,216 in mainland China[74] - Total employee costs for the six months ended June 30, 2023, amounted to HKD 950 million[74] - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange during the reporting period[75] Future Plans and Developments - The company plans to enhance tenant mix and accelerate leasing efforts in underperforming properties[17] - The company plans to launch high-end serviced apartment brand "恒隆府" in mainland China, with the first units in Wuhan expected to be delivered by the end of 2023[48] - The new luxury hotel in Kunming is expected to open in the first half of 2024, enhancing the company's hospitality portfolio[48] - The company anticipates continued growth in leasing income from its office portfolio despite complex market conditions[48] Miscellaneous - The company reported a foreign exchange loss of HKD 3.576 billion due to a 3.1% depreciation of the RMB against the HKD since December 31, 2022[43] - The company established a real estate research center at Tsinghua University to focus on sustainable development and innovation in real estate technology[45]

Financial Performance - In 2022, the total revenue from property leasing was HKD 10,625 million, with a slight increase from HKD 10,619 million in 2021[11]. - The operating profit for property leasing was HKD 7,596 million, down from HKD 7,898 million in 2021, reflecting a decrease of approximately 3.8%[11]. - The net profit attributable to shareholders was HKD 2,680 million, compared to HKD 2,627 million in 2021, indicating a growth of about 2%[11]. - Total revenue for the year ended December 31, 2022, remained stable at HKD 10.941 billion[16]. - Basic net profit attributable to shareholders was approximately HKD 3.002 billion, with basic earnings per share at HKD 2.20, remaining roughly flat compared to 2021[16]. - After accounting for property revaluation, net profit attributable to shareholders increased by 5% to HKD 2.718 billion, with earnings per share rising to HKD 2.00[16]. - The board proposed a final dividend of HKD 0.65 per share, totaling HKD 0.86 per share for the year ended December 31, 2022[16]. - The company maintained a dividend per share of HKD 0.86 for both 2022 and 2021, with a payout ratio based on net profit of 43%[12][13]. Market Conditions - The operational environment in 2022 was challenging, particularly in the second half of the year due to pandemic restrictions[16]. - The company anticipates benefiting more than competitors due to its prime locations in major cities[16]. - The overall performance in a difficult environment was considered satisfactory by the company[16]. - The company acknowledges the need for significant changes in Hong Kong to maintain competitiveness, particularly in industries like tourism that must recover rapidly post-pandemic[21]. - The company highlights the importance of integrating with the mainland market, recognizing the vast opportunities available there compared to the local market[22]. - The company notes that the influx of well-educated individuals from mainland China is a new driving force for economic growth in Hong Kong[22]. - The company expresses concern over the political climate affecting Hong Kong's international standing and its economic framework under the "one country, two systems" principle[23]. Sustainability Initiatives - The company has established 25 sustainability targets to be achieved by the end of 2025, aiming for net-zero greenhouse gas emissions by 2050[10]. - The company achieved significant milestones in sustainability, including a commitment to net-zero greenhouse gas emissions by 2050 and a 25% renewable energy usage target for its mainland property portfolio by 2023[165][166]. - The company has entered a three-year sustainability partnership with LVMH Group to lead climate action and sustainability initiatives in the real estate and retail sectors[167]. - Hang Lung Properties is the first real estate developer in Hong Kong and mainland China to receive SBTi approval for its short-term and long-term net-zero emissions targets, committing to a 46.6% reduction in Scope 1 and 2 absolute greenhouse gas emissions by 2030 based on 2019 levels[168]. - The company has pledged to achieve net-zero value chain greenhouse gas emissions by 2050, aligning with the Paris Agreement and the recommendations of the Intergovernmental Panel on Climate Change to limit global warming to below 1.5°C[169]. Property Development and Strategy - The company has developed a total of ten major commercial projects in mainland China, reinforcing its market presence[5]. - The company’s strategy focuses on developing high-quality properties in prime locations across major cities in mainland China[10]. - The company has been proactive in asset optimization plans, which have benefited both short-term and long-term performance[17]. - The company anticipates continued demand for luxury brands in its shopping malls, as mainland China remains the largest and fastest-growing luxury goods market globally[18]. - The company is expanding its footprint with new projects, including hotels and residential buildings, set to open in 2023 and 2024[44]. Tenant and Leasing Performance - The average rental income from office buildings recorded robust growth, increasing by 9% last year, with the office rental income in mainland China surpassing that of Hong Kong since 2021[20]. - The rental rate for the newly built office buildings in Wuxi, Kunming, and Wuhan is approaching 90%, with the Wuhan office, opened during the pandemic peak in November 2020, achieving nearly 75% occupancy[19]. - The company has successfully maintained a leading position in nearly all cities it operates in, with a significant gap between the market leader and competitors[17]. - The company’s office buildings are expected to complement its shopping mall business, with a focus on developing world-class office buildings in second-tier cities[18]. - The company aims to optimize its tenant mix in 2023 by introducing more luxury and personal care brands to attract affluent young consumers[57]. Challenges and Risks - The company acknowledges the ongoing structural downturn in the residential market, with many developers likely to struggle in the current environment[21]. - There is a potential supply shortage in new housing due to insufficient land sales, which may lead to a slight recovery in property prices in the short term[21]. - The ongoing international situation poses significant risks, with potential impacts on the supply chain and overall economic stability[29]. - The company recognizes the challenges posed by rising costs and inefficiencies in production as labor moves outside of China[29]. - The company identifies three major economic challenges currently facing China, including the high costs of pandemic control measures, a potential real estate market bubble, and the simultaneous emergence of multiple economic difficulties[27]. Corporate Governance - The company has adopted and fully complied with the Corporate Governance Code, exceeding many of its requirements[187]. - The board consists of 11 members, including four executive directors and seven non-executive directors, ensuring a balanced composition[189]. - The nomination and remuneration committee is fully composed of independent non-executive directors, enhancing governance quality[187]. - The company has published independent sustainability reports since the 2017 fiscal year, showcasing its transparency and accountability[187]. - The board held six meetings in 2022, demonstrating active governance and oversight[187]. Community Engagement - The company has a strong commitment to community welfare, with over 11,400 volunteers contributing more than 135,000 service hours since 2012[8]. - The company established a HKD 13 million "Hang Lung Anti-Epidemic Fund 2.0" to support urgent anti-epidemic projects in Hong Kong and mainland China, particularly in Shanghai, Shenyang, and Dalian[173]. - The company is committed to sustainable growth and community development, launching initiatives to support young people and promote diversity and inclusion in 2022[176].

Financial Performance - Total revenue for 2022 remained flat at HKD 10,941 million compared to 2021, with a 2% decrease in operating profit to HKD 7,683 million[7]. - Net profit for the year was HKD 4,795 million, down from HKD 5,075 million in 2021, reflecting a decrease of 5.5%[54]. - Basic earnings per share for 2022 was HKD 2.00, compared to HKD 1.90 in 2021, indicating an increase of 5.3%[53]. - The net profit attributable to shareholders for 2022 was HKD 2,680 million, compared to HKD 2,627 million in 2021, reflecting a growth of 2%[60]. - The company reported a pre-tax profit of HKD 6,352 million, down from HKD 7,266 million in 2021, indicating a decline of approximately 12.5%[60]. Revenue Breakdown - Rental income decreased by 3% to HKD 10,625 million, primarily due to the depreciation of RMB against HKD and temporary closures of malls in Shanghai due to COVID-19[10]. - The overall rental income in mainland China showed a slight increase of 1% in RMB terms, but decreased by 2% in HKD terms due to currency fluctuations[10]. - Property rental income from Mainland China was HKD 7,218 million, a decrease from HKD 7,402 million in 2021, while Hong Kong rental income was HKD 3,407 million, down from HKD 3,517 million[60]. - The overall rental income for the shopping mall segment in 2022 was RMB 4,607 million, reflecting a 1% decrease from 2021[13]. Dividend and Shareholder Returns - Shareholders' basic profit remained at HKD 3,002 million, with basic earnings per share stable at HKD 2.20[7]. - The company proposed a final dividend of HKD 0.65 per share, maintaining the total annual dividend at HKD 0.86 per share[9]. - The company plans to distribute a final dividend of HKD 0.65 per share, maintaining the same level as in 2021[67]. Debt and Financial Position - The net debt-to-equity ratio increased to 25.9% from 22.3% in 2021, indicating a rise in leverage[6]. - The total debt amounted to HKD 45.953 billion as of December 31, 2022, an increase from HKD 45.883 billion in 2021, with 28% denominated in RMB for natural hedging against mainland investments[38]. - The net debt balance was HKD 40.168 billion, with a net debt-to-equity ratio of 25.9%, up from 22.3% in 2021, primarily due to capital expenditures in mainland China and Hong Kong[41]. - The average repayment period of the debt portfolio was 3.1 years, with approximately 71% of loans due for repayment after two years[42]. Property Valuation and Investment - The fair value of investment properties decreased by HKD 352 million in 2022, compared to an increase of HKD 458 million in 2021[53]. - Total value of investment properties and properties under development reached HKD 199.084 billion, with HKD 135.635 billion in mainland properties and HKD 63.449 billion in Hong Kong properties[30]. - The company acquired additional 6.67% interest in joint ventures for HKD 879 million, increasing its stake from 20% to 26.67%[74]. - The total amount for investment properties and development properties acquired was HKD 2,906 million in 2022, up from HKD 2,261 million in 2021, indicating a growth of approximately 29%[71]. Market and Operational Insights - The company reported a 3% decline in rental income in Hong Kong, attributed to the ongoing impact of the pandemic on consumer sentiment[10]. - The high-end shopping malls experienced a revenue decline of 10% and 24% in income and tenant sales at Shanghai Hang Lung Plaza, respectively[15]. - Wuhan Hang Lung Plaza's revenue surged by 52% to RMB 232 million, with tenant sales increasing by 158%[16]. - The overall performance of the shopping mall portfolio was impacted by COVID-19 restrictions, leading to a 1% revenue drop compared to the previous year[12]. Future Outlook and Strategic Initiatives - The company remains optimistic about the outlook for 2023, anticipating new milestones in property development as various projects are set to launch in response to market conditions[52]. - The company plans to leverage marketing activities and the "Hang Lung Club" membership program to drive foot traffic and stimulate consumer spending in its shopping malls[52]. - The company expects to launch its latest office project at 228 Electric Road in the second quarter of 2023, despite ongoing market challenges[52]. - The company aims to enhance its tenant mix and optimize asset positioning through strategic initiatives and capital recovery measures[52]. Employee and Community Engagement - The company reported a significant improvement in employee engagement, ranking in the top 25% of companies for employee engagement progress compared to others surveyed in the same period[50]. - The company established the "Hang Lung Anti-Epidemic Fund 2.0," allocating over HKD 13 million to support urgent anti-epidemic projects in Hong Kong and mainland cities, including assistance for Shanghai, Shenyang, and Dalian[49].

Revenue and Profitability - Revenue increased by 6% to HKD 5.605 billion for the six months ended June 30, 2022[5]. - Shareholders' net profit decreased by 5% to HKD 1.439 billion, with earnings per share dropping to HKD 1.06[5]. - Basic net profit attributable to shareholders increased by 7% to HKD 1.600 billion after excluding property revaluation impacts, with basic earnings per share rising to HKD 1.18[5]. - Total revenue increased by 6% to HKD 5,605 million for the six months ended June 30, 2022, compared to HKD 5,275 million in 2021[21]. - Operating profit slightly rose by 2% to HKD 3,929 million, up from HKD 3,848 million in the previous year[22]. - Basic earnings attributable to shareholders increased by 7% to HKD 1,600 million, with corresponding earnings per share rising to HKD 1.18[21]. - The net profit for the same period was HKD 2,507 million, down from HKD 2,872 million in 2021, reflecting a decrease of 12.7%[89]. - The total comprehensive income for the period was HKD (2,755) million, a significant decrease from HKD 4,163 million in 2021[89]. Rental Income and Performance - Total rental income remained flat at HKD 5.289 billion[5]. - Rental income in mainland China increased by 2% year-over-year, while rental income in Hong Kong decreased by 4%, resulting in total rental income remaining similar to the previous year[9]. - The company's rental margin in mainland China decreased by 1 percentage point to 68%, while in Hong Kong it decreased by 2 percentage points to 81%[9]. - The overall leasing income for the first half of 2022 remained stable at HKD 5.289 billion, with mainland property leasing income increasing by 1% in RMB and 2% in HKD, offsetting a 4% decline in Hong Kong properties[24]. - The overall rental income from high-end malls decreased by 1%, while the income from mid-range malls fell by 2%[26]. - The rental income from Wuxi Hang Lung Plaza increased by 7% to RMB 195 million, supported by a 3% rise in occupancy rate to 98%[28]. - The cumulative sales growth from Wuxi, Dalian, Kunming, and Wuhan Hang Lung Plazas has more than compensated for two months of rental losses in Shanghai[15]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.21 per share, payable on September 29, 2022[5]. - The company declared an interim dividend of HKD 0.21 per share, consistent with the previous year's dividend[23]. - The company paid dividends totaling HKD 885 million, slightly up from HKD 858 million in the previous year[95]. Capital Expenditure and Investments - The company plans to complete the Hangzhou Hang Lung Plaza project in phases starting in 2024, which requires significant capital expenditure[11]. - Capital commitments for properties under development amounted to HKD 18 billion, with construction progress expected to catch up in the second half of 2022[45]. - The company allocated HKD 11.01 billion for the acquisition of investment properties and development properties in the first half of 2022, slightly down from HKD 11.18 billion in the same period of 2021[112]. Debt and Financial Management - The company maintains a low debt-to-equity ratio and has arranged multiple additional financing sources, ensuring stability in operations[11]. - The net debt to equity ratio increased to 24.8% from 22.3% in the previous year[20]. - The total debt as of June 30, 2022, was HKD 44,898 million, down from HKD 45,883 million as of December 31, 2021, with 28% denominated in RMB[50]. - The average repayment period of the overall debt portfolio was 3.2 years as of June 30, 2022, compared to 3.0 years as of December 31, 2021[54]. - Financial expenses decreased by 4% to HKD 744 million in the first half of 2022, with the average effective borrowing rate dropping to 3.5% from 3.9% in 2021[57]. - The company issued green bonds worth HKD 1.2 billion in the first half of 2022, with sustainable finance now accounting for 31% of total debt and available credit[48]. Market Outlook and Economic Conditions - The long-term economic growth in China is expected to remain between 4% to 5% annually, which is higher than most other major regions[10]. - The company expects performance in the second half of the year to be slightly better than the first half, provided there is no further deterioration of the pandemic situation[12]. - Despite external challenges, the company reported strong and resilient performance in the first half of 2022, with rental income still growing despite a decline in retail sales[13]. Management and Governance - The average age of the management team has been reduced significantly, enhancing the company's talent pool[19]. - The company maintains a strong governance framework, emphasizing a competent board, sound internal controls, and effective risk management[62]. - The board consists of 11 members, including four executive directors and four independent non-executive directors, ensuring a balanced distribution of power[63]. - The company has complied with the Corporate Governance Code as stipulated in the Hong Kong Stock Exchange Listing Rules during the reporting period[66]. Employee and Shareholder Information - As of June 30, 2022, the total number of employees was 4,199, including 1,028 in Hong Kong and 3,171 in mainland China[82]. - Total employee costs for the six months ended June 30, 2022, amounted to HKD 947 million[82]. - Major shareholders included Chen Wenbo with 546,308,580 shares (40.12%) and Chen Tanqingfen with 522,423,080 shares (38.37%)[79]. Property and Development Projects - The company is positioned to complete its residential projects without the financial pressures faced by many mainland developers, allowing for steady progress in construction[17]. - The Wuhan Henglongfu project, the company's first high-end serviced apartment brand in mainland China, is expected to begin phased completion in the second half of 2023[46]. - The Aperture project is on track for completion in 2023, with ongoing construction despite delays caused by the pandemic[47].

Financial Performance - Total revenue for the six months ended June 30, 2022, increased by 6% to HKD 5,605 million, with property leasing income remaining stable at HKD 5,289 million and property sales revenue of HKD 316 million[5]. - Operating profit slightly rose by 2% to HKD 3,929 million, while the operating profit margin for property leasing was reported at HKD 3,796 million, a decrease of 2% compared to the previous year[6]. - Basic earnings attributable to shareholders increased by 7% to HKD 1,600 million, with basic earnings per share rising to HKD 1.18[5]. - The net profit for the same period was HKD 2,507 million, down from HKD 2,872 million in 2021, reflecting a decrease of 12.7%[54]. - Profit before tax decreased by 22% to HKD 3,290 million compared to HKD 4,002 million in the same period of 2021[64]. - The company reported a basic earnings per share of HKD 1.06 for the first half of 2022, compared to HKD 1.11 in the same period of 2021[53]. Property Valuation and Revaluation - The net revaluation loss on properties attributable to shareholders was HKD 161 million, compared to a net revaluation gain of HKD 10 million in 2021[5]. - The company recorded a property revaluation loss of HKD 217 million, compared to a gain of HKD 606 million in 2021[30]. - The fair value of properties decreased by HKD 217 million in the first half of 2022, compared to an increase of HKD 606 million in 2021[53]. Revenue Breakdown - Rental income from mainland properties showed a 2% increase to HKD 3,607 million, while rental income from Hong Kong properties decreased by 4% to HKD 1,682 million[6]. - The retail segment in Hong Kong saw a 3% revenue decline to HKD 961 million, maintaining a rental occupancy rate of 97%[24]. - Office and industrial/office revenue in Hong Kong fell 7% to HKD 598 million, with an occupancy rate of 87%[25]. - Residential and serviced apartment revenue increased by 6% to HKD 123 million, with occupancy rising 14 percentage points to 70%[27]. - The overall office building revenue rose by 12% to RMB 672 million, supported by a strong and diversified tenant mix[16]. Debt and Financial Position - The net debt to equity ratio increased to 24.8% from 22.3% year-on-year, indicating a slight increase in leverage[4]. - Total borrowings as of June 30, 2022, were HKD 44,898 million, down from HKD 45,883 million as of December 31, 2021, with 28% denominated in RMB[38]. - The average repayment period of the overall debt portfolio was 3.2 years as of June 30, 2022, with approximately 68% of loans due after two years[42]. - Financial expenses decreased by 4% to HKD 744 million in the first half of 2022, with an average effective borrowing rate dropping to 3.5% from 3.9% in 2021[45]. Investment and Development - The company has a total capital commitment of HKD 18 billion for investment property development projects[31]. - The Wuhan "Henglongfu" project is expected to begin phased completion in the second half of 2023, with over 490 units available[32]. - The company invested HKD 1,101 million in investment properties and development properties during the first half of 2022, slightly lower than HKD 1,118 million in 2021[72]. Dividend and Shareholder Returns - The company declared an interim dividend of HKD 0.21 per share, consistent with the previous year[7]. - The interim dividend record date is September 15, 2022, with a distribution date of September 29, 2022[82]. Sustainability and Corporate Governance - The company committed to achieving net-zero carbon emissions by 2050, becoming the first real estate company in Hong Kong to pledge such a goal[49]. - The company has complied with the Corporate Governance Code as of June 30, 2022[80]. Market Challenges and Strategies - The company implemented various promotional activities and optimized tenant mix to enhance customer engagement and support tenant sales during the pandemic[8]. - The company plans to optimize its tenant mix in Hong Kong to enhance financial performance following the recovery from the fifth wave of the pandemic[52]. - The company aims to further enhance customer traffic and stimulate consumer spending through its loyalty program "恒隆會" in its shopping malls[51].

Financial Performance - Total revenue for 2021 was HKD 10,919 million, an increase from HKD 9,526 million in 2020, representing a growth of 14.6%[10] - Operating profit for 2021 was HKD 7,898 million, up from HKD 6,880 million in 2020, reflecting a year-over-year increase of 14.8%[10] - Shareholders' basic earnings per share for 2021 was HKD 2.20, compared to HKD 1.80 in 2020, marking a growth of 22.2%[11] - Basic net profit attributable to shareholders increased by 6% to HKD 2.991 billion, with basic earnings per share rising to HKD 2.20[23] - Shareholders' net profit was HKD 2.589 billion, compared to a net loss of HKD 1.541 billion last year[23] - The overall rental income for the group surged by 15% to HKD 10.919 billion, with a rental margin of 68%[190] - The company proposed a final dividend of HKD 0.65 per share, bringing the total dividend for the year to HKD 0.86 per share[188] Rental Income and Property Performance - Rental income from mainland China was HKD 7,402 million in 2021, up from HKD 5,694 million in 2020, showing a significant increase of 30%[10] - Rental income from mainland properties increased by 30% to HKD 7.402 billion, while rental income from Hong Kong properties decreased by 7% to HKD 3.517 billion[187] - High-end shopping mall rental income increased by 30%, while tenant sales surged by 55%[23] - The total rental income from the mainland shopping mall portfolio was RMB 4.662 billion, reflecting a 25% year-on-year increase[194] - The occupancy rate for high-end malls reached 100% in major locations such as Shanghai and Wuxi[194] - The rental margin and occupancy rate slightly increased, despite weak unit rent and rent adjustments[23] Debt and Financial Strategy - The net debt to equity ratio increased to 22.3% in 2021 from 20.1% in 2020, indicating a rise in leverage[12] - The net debt-to-equity ratio remains relatively low at 22.3%, with total borrowings classified as sustainable financing increasing by 11% compared to the previous year[24] - The company maintains a low leverage ratio, contrasting with other developers who are heavily leveraged, which positions it favorably amidst the ongoing market challenges[27] Market Expansion and Development Strategy - The company continues to expand its property portfolio in key cities in mainland China, including projects in Hangzhou based on the success of existing developments[5] - The company is positioned to benefit from the financial crisis faced by many domestic real estate developers, as its business model focuses on high-end commercial properties rather than mass residential developments[27] - The company has previously capitalized on opportunities to acquire land at reasonable prices during market downturns, indicating a proactive approach to land acquisition[27] - The company is actively pursuing new strategies for market expansion and property development, reflecting a commitment to growth and innovation in the real estate sector[182] Sustainability and Corporate Responsibility - The company aims to achieve 25 sustainability targets by the end of 2025 as part of its long-term commitment to sustainable development[5] - The company achieved significant progress in sustainable development, with a clear roadmap towards its 2030 goals outlined in the "25 x 25 Sustainable Development Indicators"[42] - The company’s sustainable development team, though small, has made notable achievements in a challenging year, reflecting its commitment to core values[41] Retail and Consumer Trends - The luxury goods consumption market in mainland China remains strong, contributing positively to the company's performance[23] - Tenant sales have shown considerable growth despite challenges from the pandemic, with a strong performance in luxury goods sales due to domestic consumption recovery[30] - The company anticipates that rental income will remain stable, supported by high-quality tenants, unless there is a severe resurgence of the pandemic[30] - The competitive landscape in the high-end retail market remains favorable, with the company significantly outperforming its closest competitors in key cities[32] Future Outlook and Projections - The company expects 2022 to be a fruitful year, contingent on the control of the pandemic and a rebound in rental prices in Hong Kong[33] - The company anticipates continued growth in tenant sales at Shanghai Hang Lung Plaza in 2022, driven by ongoing expansions of high-end brands and exclusive marketing activities[103] - The company plans to enhance tenant welfare in its office buildings by upgrading facilities and improving service levels in 2022[104] - The company plans to optimize tenant mix and improve lease renewal processes to attract more businesses to Wuxi in the coming year[120] Property Management and Tenant Relations - The company has signed contracts with over 100 top luxury brands in the past four years, positioning itself as a leader in the luxury market[37] - The "Henglong Club" initiative has received positive feedback from tenants and customers, effectively boosting customer loyalty and sales[106] - The company is focused on expanding its luxury brand offerings and enhancing customer experiences across its shopping malls[64][71][75] Specific Property Developments - The company plans to launch the pre-sale of high-end apartments in Wuhan and Wuxi later this year, followed by units in Kunming[33] - The company has several major development properties with a total floor area of 1,000,000 square meters, including projects in Wuhan, Wuxi, and Hangzhou, with completion dates ranging from 2023 to 2027[178] - The company is expanding its market presence with new projects in cities like Shenyang and Kunming, indicating a strategic focus on mainland China[178]

Financial Performance - Total revenue for the year ended December 31, 2021, increased by 15% to HKD 10,919 million, with no property sales revenue recorded[5] - Operating profit rose by 13% to HKD 7,807 million, with mainland China contributing HKD 5,020 million and Hong Kong contributing HKD 2,878 million[6] - Basic earnings attributable to shareholders increased by 6% to HKD 2,991 million, resulting in basic earnings per share of HKD 2.20[5] - Net profit for the year was HKD 5,075 million, compared to a loss of HKD 2,185 million in 2020, marking a significant turnaround[49] - Total comprehensive income for the year reached HKD 8,465 million, up 95% from HKD 4,350 million in 2020[50] - Rental income increased to HKD 9,637 million in 2021, a rise of 14.9% compared to HKD 8,386 million in 2020[55] - The company reported a significant reduction in employee costs to HKD 1,527 million in 2021 from HKD 1,313 million in 2020, reflecting cost management efforts[60] - The total tax expense for the year was HKD 2,191 million, up from HKD 1,261 million in 2020, primarily due to increased profitability[62] Rental Income and Performance - Total rental income surged by 15% to HKD 10,919 million, with mainland rental income increasing by 30% to HKD 7,402 million[8] - The rental income from mainland properties showed a 25% increase in RMB terms, while Hong Kong properties experienced a 7% decline[8] - The overall rental margin was reported at 68%, reflecting strong performance in the mainland market[9] - The company noted a significant reduction in rental concessions required, as tenant sales increased by 8% overall in 2021[8] - Rental income from the shopping mall segment increased by 25% year-on-year, with high-end malls seeing a significant growth of 30%[10] - Tenant sales in high-end malls rose by 33% to 89%, with Dalian Hang Lung Plaza experiencing a 45% increase in revenue in the second half of 2021 compared to the first half[10] - The overall rental income from the shopping mall segment reached RMB 4,662 million, up from RMB 3,731 million, marking a 25% increase[10] Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.65 per share, up from HKD 0.63 in the previous year, resulting in a total dividend of HKD 0.86 per share for 2021[7] - The company declared a total dividend of HKD 1,171 million for the year, compared to HKD 1,116 million in 2020, indicating a commitment to returning value to shareholders[63] Debt and Financial Leverage - The net debt to equity ratio increased to 22.3% from 20.1% in 2020, indicating a rise in leverage[4] - Total borrowings amounted to HKD 45.883 billion as of December 31, 2021, up from HKD 38.770 billion in 2020, representing a 18.5% increase[35] - The debt composition by currency shows HKD at 73% (HKD 33.384 billion) and RMB at 27% (HKD 12.499 billion) as of December 31, 2021, compared to 67% and 33% respectively in 2020[35] - The average repayment period of the debt portfolio was 3.0 years as of December 31, 2021, compared to 2.8 years in 2020, with approximately 65% of loans due after two years[38] - Financial expenses decreased by 1% to HKD 1.509 billion, with the average effective borrowing rate dropping to 3.7% from 4.4% in 2020[41] Property Valuation and Investments - Total value of investment properties and properties under development as of December 31, 2021, was HKD 208.981 billion, with mainland properties valued at HKD 145.861 billion and Hong Kong properties at HKD 63.120 billion[26] - Recorded property revaluation gains of HKD 458 million, a significant recovery from a loss of HKD 6.856 billion in 2020[26] - The net increase in the fair value of properties was HKD 458 million, a recovery from a decrease of HKD 6,856 million in the previous year[56] Future Projects and Sustainability Initiatives - The pre-sale of The Aperture project commenced in December 2021, with 123 residential units sold for a total of HKD 1.083 billion, expected to recognize revenue in 2023[25] - The company plans to invest over HKD 300 million in environmental, social, and governance initiatives over the next 12 months[47] - The company aims to achieve 25 sustainability targets by the end of 2025, focusing on climate change, resource management, and well-being[46] - The Kunming project has adopted 100% renewable energy since December 2021, reducing carbon emissions by approximately 46,471 tons annually[46] Market Conditions and Challenges - Hong Kong's retail segment revenue decreased by 7% to HKD 2.002 billion, with an occupancy rate of 97%[22] - The office and industrial/office segment in Hong Kong saw a 6% revenue decline to HKD 1.273 billion, maintaining an occupancy rate of 87%[22] - Overall revenue for Hong Kong properties fell by 7% to HKD 3.517 billion, with a rental margin maintained at 82%[21] - The company plans to enhance its tenant mix and strengthen connections with local consumers to navigate challenges in Hong Kong[48]

Revenue and Profit Performance - Revenue for the six months ended June 30, 2021, increased by 18% to HKD 5.275 billion, despite no property sales revenue recorded[5]. - Shareholders' profit amounted to HKD 1.508 billion, a significant recovery from a net loss of HKD 1.595 billion in 2020[5]. - Total revenue increased by 18% to HKD 5,275 million for the six months ended June 30, 2021, compared to HKD 4,457 million in the same period last year[20]. - Operating profit rose by 19% to HKD 3,848 million, up from HKD 3,239 million year-on-year[21]. - Basic earnings attributable to shareholders increased by 12% to HKD 1,498 million, with earnings per share rising to HKD 1.10 from HKD 0.98[21]. - The net profit for the period was HKD 2,872 million, compared to a loss of HKD 2,496 million in the previous year, representing a significant turnaround[94]. - The company reported a total comprehensive income of HKD 4,163 million, compared to a loss of HKD 4,477 million in the previous year[95]. Rental Income and Market Performance - Rental income from the mainland property portfolio increased by 31% in RMB terms, translating to a 42% increase in HKD due to RMB appreciation[6]. - High-end shopping malls in mainland China saw rental income rise by 46%, while mid-tier malls experienced a slight increase of 3%[6]. - The overall rental income from mainland properties increased by 31% year-on-year, with shopping mall rents rising by 38% and office rents by 11%[15]. - High-end shopping mall rents surged by 46%, indicating a strong recovery driven by high-end consumer spending[15]. - Tenant sales in high-end shopping malls surged by 122%, with the best-performing malls seeing sales increase by 190% and 232% respectively[8]. - The rental margin for Hong Kong operations improved by 1 percentage point to 84%, while the mainland portfolio recorded a 6 percentage point increase to 72%[6]. Future Outlook and Strategic Initiatives - The company anticipates continued rental increases over the next one to two years due to low rental costs and high sales-to-rent ratios[8]. - The company expects significant profits from ongoing construction projects in Hong Kong and mainland China over the next few years[10]. - The company is focusing on local market operations due to geopolitical complexities, with a strong emphasis on mainland China as a growth market[11]. - The company plans to sell more existing properties, including the Blue Tong Road residential project, which is expected to start pre-sales later this year and be completed in 2023[13]. - The company remains optimistic about future performance, anticipating profit increases and stock price growth as long as external conditions remain relatively stable[14]. Debt and Financial Management - The company maintains a low debt-to-equity ratio, positioning it to withstand economic challenges[11]. - The net debt-to-equity ratio increased to 22.5% from 20.1% year-on-year[20]. - The total debt amounted to HKD 41.254 billion, an increase from HKD 38.770 billion as of December 31, 2020, with approximately 33% denominated in RMB[52]. - The company is focused on maintaining a diversified debt financing channel to mitigate refinancing risks and enhance financial flexibility[49]. - Financial expenses rose by 3% to HKD 775 million in the first half of 2021, while the average effective borrowing rate decreased to 3.9% from 4.5% in 2020[59]. Asset Management and Investments - The company recorded a net revaluation gain of HKD 10 million on properties, compared to a net loss of HKD 2,931 million in the previous year[20]. - The total value of investment properties and properties under development was HKD 204.048 billion, with mainland China and Hong Kong property values at HKD 141.886 billion and HKD 62.162 billion, respectively[45]. - The company has initiated an asset optimization plan for Jinan Hang Lung Plaza, which may have a slight impact on business in the short term but is expected to be beneficial in the long run[13]. - The company plans to invest over HKD 450 million in ESG priorities over the next 18 months, an increase of HKD 200 million compared to the previous 18 months[63]. Market Conditions and Consumer Behavior - The Chinese economy is expected to maintain an annual growth rate of approximately 6% over the next few years, with general consumption projected to grow at a greater rate than the overall economy and luxury goods market[13]. - The performance of high-end shopping malls outside Shanghai is anticipated to excel, with notable growth expected from the Wuxi Hang Lung Plaza, and growth rates potentially surpassed by Kunming, Wuhan, and Dalian Hang Lung Plazas[13]. - The recovery in business is primarily driven by high-end shopping malls, raising questions about the expected returns from mid-tier shopping malls[17]. - Concerns remain regarding the impact of the pandemic on certain regions, particularly in Northeast China, where some individuals have faced layoffs or salary reductions[17]. Corporate Governance and Shareholder Information - The company has adopted corporate governance standards emphasizing a competent board, sound internal controls, and effective risk management[65]. - The audit committee has reviewed the interim financial report for the six months ending June 30, 2021, and recommended its adoption by the board[68]. - As of June 30, 2021, Chen Wenbo holds 533,032,080 shares, representing 39.15% of the issued shares[83]. - The company has a total of 10,000,000 share options granted to Lu Weibao at an exercise price of HKD 18.98, with a vesting schedule starting from May 16, 2020[78].