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]

Core Viewpoint - Hang Lung Group (00010) announced that it will distribute an interim dividend of HKD 0.21 per share on September 24, 2025 [1] Group 1 - The company is set to pay an interim dividend of HKD 0.21 per share [1]

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]

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 697 million, 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 Initiatives - 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: Market Conditions and Challenges - 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 attract different customer segments, resulting in revenue growth for most shopping malls, except for Tianjin, Wuhan, and Shenyang Hang Lung Plazas, which experienced rental declines due to competitive pricing and promotional efforts from peers [1] - The office leasing market continues to struggle due to economic uncertainty, with overall income declining by 4% to RMB 638 million, primarily affected by a 77% drop in income from Shanghai Hang Lung Plaza's Grade A office space [2] - The decline in Grade A office income is attributed to tenant relocations, changes in demand patterns, and cost-effectiveness considerations [2] - Despite multiple market pressures, the company has maintained high levels of property management services and actively retained quality tenants [2]

Core Viewpoint - Hang Lung Group reported a significant decline in total revenue for the first half of 2025, primarily driven by a sharp drop in property sales revenue [1] Financial Performance - Total revenue decreased by 18% year-on-year to HKD 5.202 billion, mainly due to a 87% drop in property sales revenue to HKD 161 million [1] - Overall operating profit fell by 6% to HKD 3.408 billion [1] - Rental income and operating profit from property leasing declined by 3% and 4% respectively, reaching HKD 4.912 billion and HKD 3.499 billion, attributed to ongoing slow demand in Hong Kong and mainland office spaces [1] Hotel Operations - Hotel portfolio revenue increased by 84% to HKD 129 million, although operating losses, including asset depreciation, widened to HKD 34 million [1] Shareholder Earnings - Basic net profit attributable to shareholders decreased by 7% to HKD 1.191 billion, primarily due to lower leasing operating profit and increased financial expenses [1] - Basic earnings per share fell to HKD 0.87 [1] - After accounting for a net revaluation loss of HKD 494 million on properties attributable to shareholders, the group recorded a net profit attributable to shareholders of HKD 697 million, with corresponding earnings per share of HKD 0.51 [1]

Financial Performance - Hang Lung Properties (HLP) - HLP's total revenue decreased by 19% year-over-year to HK$4968 million in 1H25[8] - Rental revenue for HLP decreased by 3% year-over-year to HK$4678 million in 1H25[8] - HLP's sales revenue significantly decreased by 87% year-over-year to HK$161 million in 1H25[8] - Revenue from HLP's hotel operations increased by 84% year-over-year to HK$129 million in 1H25[8] - HLP's underlying profit decreased by 9% year-over-year to HK$1587 million in 1H25[8] Financial Performance - Hang Lung Group (HLG) - HLG's total revenue decreased by 18% year-over-year to HK$5202 million in 1H25[10] - Rental revenue for HLG decreased by 3% year-over-year to HK$4912 million in 1H25[10] - HLG's sales revenue significantly decreased by 87% year-over-year to HK$161 million in 1H25[10] - Revenue from HLG's hotel operations increased by 84% year-over-year to HK$129 million in 1H25[10] - HLG's underlying profit decreased by 7% year-over-year to HK$1191 million in 1H25[10] Mainland China Rental Performance (HLP) - Mainland China rental revenue decreased by 1% year-over-year to RMB 2941 million in 1H25[14] - Retail rental revenue in Mainland China was flat year-over-year at RMB 2412 million in 1H25[17] - Office rental revenue in Mainland China decreased by 5% year-over-year to RMB 528 million in 1H25[62] Hong Kong Rental Performance (HLP) - Hong Kong rental revenue decreased by 4% year-over-year to HK$1488 million in 1H25[65] - Retail rental revenue in Hong Kong decreased by 7% year-over-year to HK$874 million in 1H25[65] - Office rental revenue in Hong Kong decreased by 1% year-over-year to HK$502 million in 1H25[65] - Residential & serviced apartments rental revenue in Hong Kong increased by 11% year-over-year to HK$112 million in 1H25[65] Financial Position (HLP) - Net gearing ratio stood at 335% as at June 30 2025[77] - Net debt increased by HK$08 billion to HK$479 billion as at June 30 2025[78] - Gross finance costs decreased by 7% year-over-year to HK$988 million in 1H25[78] Sustainability - Eight of the company's Mainland China properties are powered by renewable energy[132] - Over 80% of the company's certified floor area is certified to LEED/BEAM Plus Gold or above[134]