Investment Rating - The report maintains a **Buy** rating for Sun Hung Kai Properties (16 HK) with a revised target price of HKD 110.1, representing a potential upside of 41.2% from the current price of HKD 78.00 [1][2] Core Views - The company's 2024 interim results were stable, with a slight increase in total revenue by 0.4% YoY to HKD 27.5 billion, while core net profit declined by 5.9% to HKD 8.9 billion, in line with Bloomberg consensus [1] - Property development revenue fell by 23.5% YoY to HKD 3.87 billion due to a 60% decline in mainland project deliveries, partially offset by a 25% increase in Hong Kong property development revenue [1] - Rental income increased by 1.7% YoY to HKD 8.94 billion, with retail rental income growing by 3.5%, supported by the relaxation of travel restrictions and a recovery in tourism [1] - Hotel revenue surged by 48% YoY to HKD 2.76 billion, with operating profit turning positive at HKD 430 million compared to a loss of HKD 63 million in the previous year [1] - The company revised its full-year sales target downward to HKD 23 billion from HKD 33 billion due to delayed project launches, with seven projects scheduled for launch in the second half of the year [1] Financial Data Summary - Revenue for FY2024E is projected to grow by 14.2% YoY to HKD 81.33 billion, with core net profit expected to increase by 5.3% to HKD 25.15 billion [3] - Core EPS for FY2024E is forecasted at HKD 8.68, a 5.3% YoY increase, with a P/E ratio of 9.0x [3] - The company's net asset value per share is estimated at HKD 210.76 for FY2024E, with a P/B ratio of 0.37x [3] - Dividend yield for FY2024E is expected to be 5.6%, with a payout ratio of 50% [3] Property Development and Rental Performance - Hong Kong property development revenue increased by 25% YoY to HKD 3.61 billion, driven by project deliveries including Grand YOHO 2 and Wetland Season Bay 2 [1] - Mainland property development revenue declined by 60% YoY to HKD 1.59 billion, impacting overall development revenue [1] - Retail rental income is expected to continue growing in the second half of 2024, supported by the relaxation of travel restrictions and a recovery in tourism [1] Valuation and Target Price Adjustment - The target price was revised downward to HKD 110.1 from HKD 127.6, based on a 45% discount to the revised NAV estimate of HKD 200.21, primarily due to adjustments in office property valuations [2] - The revised target price reflects a 41.2% potential upside from the current price, supported by the company's strong mid-market property portfolio and recovery in rental income [2]

Financial Performance - The company's basic profit attributable to shareholders for the six months ended December 31, 2023, was HKD 8.906 billion, down from HKD 9.465 billion in the same period last year, representing a decrease of approximately 5.9%[2]. - The total revenue for the group's business segments for the six months ended December 31, 2023, was HKD 33.933 billion, slightly up from HKD 33.864 billion in the previous year[68]. - The net profit for the period was HKD 9,473 million, up from HKD 8,790 million year-on-year, representing an increase of approximately 7.8%[44]. - The group reported a pre-tax profit of HKD 10,958 million, compared to HKD 10,458 million in the previous year, showing a growth of approximately 4.8%[43]. - The total comprehensive income for the period was HKD 11,372 million, significantly higher than HKD 4,180 million in the previous year[44]. - The group reported a net profit of HKD 7,721 million for the period, compared to HKD 9,473 million in the previous period, indicating a decrease of 18.5%[47]. - The company recorded a profit attributable to shareholders of HKD 9,145 million, compared to HKD 8,410 million in the previous year[56]. - The basic and diluted earnings per share for the company were HKD 3.16, compared to HKD 2.90 in the previous year, indicating a year-on-year increase of 8.97%[43]. Revenue Sources - The total rental income for the period increased by 4% year-on-year to HKD 12.454 billion, while net rental income rose by 5% to HKD 9.326 billion[5]. - Revenue from property sales in Hong Kong reached HKD 3,612 million, while mainland China contributed HKD 3,868 million, totaling HKD 7,480 million in property sales[47]. - The hotel division's revenue increased by 48% to HKD 2.757 billion, with an operating profit of HKD 430 million compared to a loss of HKD 63 million in the previous year[70]. - The transportation infrastructure and logistics segment recorded a 12% revenue increase to HKD 4.342 billion, with operating profit rising by 19% to HKD 947 million[71]. - Total rental income in mainland China increased by 16% year-on-year to RMB 2.89 billion, driven by rising retail rental income and the conclusion of rent concessions[18]. Dividends and Shareholder Returns - The interim dividend declared was HKD 0.95 per share, a decrease of 24% compared to the same period last year[3]. - The company announced an interim dividend of HKD 0.95 per share for the six months ending December 31, 2023, compared to HKD 1.25 per share for the same period in 2022[88]. - The record date for shareholders entitled to the interim dividend is March 14, 2024, with the shares trading ex-dividend from March 12, 2024[89]. Property Development and Investment - The group recorded a total contract sales amount of approximately HKD 12.9 billion during the period, with a total contract sales amount in Hong Kong of approximately HKD 9.6 billion[4][8]. - The group added two residential land parcels, providing a total gross floor area of approximately 1 million square feet[6]. - The group's land reserves in Hong Kong amounted to approximately 58.88 million square feet, with about 36.6 million square feet being diversified completed properties[7]. - The group has a total land reserve of 67.2 million square feet in mainland China as of December 31, 2023, with 20.9 million square feet completed and the majority located in major urban commercial areas[16]. - The group plans to launch several major projects in Hong Kong over the next ten months, including The YOHO Hub II and NOVO LAND Phase III[39]. Market Position and Strategy - The group aims to maintain its leading market position through cost control measures and enhancing building quality while responding to customer expectations for healthy living and green smart homes[8]. - The group is actively adjusting its retail tenant mix to attract customers, including introducing experiential retail stores and various promotional activities to stimulate local consumption[11]. - The group plans to enhance its property investment portfolio's competitiveness through innovative concepts and digital solutions to achieve higher green building standards[38]. - The company remains confident in the long-term prospects of the Hong Kong property market despite short-term fluctuations[37]. Sustainability and Technology - The group plans to integrate sustainable development and technology elements into new projects, including the introduction of smart home devices and 5G network coverage[8]. - The group aims to integrate smart technology into operations to save energy and reduce carbon emissions[34]. - The group has received multiple green building certifications, including LEED Platinum for projects in Hong Kong and Shanghai[33]. - The group has established urban farms in several projects to promote green living and fresh food cultivation[34]. Financial Position and Debt Management - The group reported a net debt ratio of 21.2% as of December 31, 2023, primarily due to the distribution of the previous fiscal year's final dividend[27]. - The group’s net debt as of December 31, 2023, stands at HKD 127.786 billion, compared to HKD 109.773 billion as of June 30, 2023[77]. - The group maintains a strong financial position, ensuring ample unused credit facilities primarily for medium to long-term financing[80]. - The group’s fixed-rate debt comprises 29% of total debt, while floating-rate debt accounts for 71%[79]. Corporate Governance and Compliance - The interim financial results for the six months ending December 31, 2023, have been reviewed by Deloitte, in accordance with the Hong Kong Institute of Certified Public Accountants' standards[91]. - The company has complied with the corporate governance code as per the listing rules, although the roles of Chairman and CEO are not separated[92]. - The group has been recognized for its high level of corporate governance and received multiple awards, including "Best Overall Real Estate Company" in the Asia-Pacific region from Euromoney[31].

Financial Performance - Group revenue for the fiscal year ending June 30, 2023, was HKD 71,195 million, a decrease of 8.4% from HKD 77,747 million in 2022[10]. - Profit attributable to shareholders was HKD 23,907 million, down 6.5% from HKD 25,560 million in the previous year[10]. - Basic earnings per share decreased to HKD 8.25, a decline of 6.5% from HKD 8.82 in 2022[10]. - Total rental income was HKD 24,322 million, a decrease of 2.0% compared to HKD 24,810 million in the prior year[10]. - Net rental income fell to HKD 18,461 million, down 4.1% from HKD 19,250 million in 2022[10]. - The profit from property sales was HKD 11.299 billion, down from HKD 15.847 billion in the previous year, with total contracted sales amounting to approximately HKD 37.9 billion[17]. - The company reported a total rental income of HKD 24.322 billion, down 2% year-on-year, with net rental income decreasing by 4% to HKD 18.461 billion[18]. - The net debt to equity ratio increased to 18.2% from 17.4% in the previous year, while the payout ratio rose to 60.1% from 49.9%[10]. Dividend and Shareholder Returns - The company maintained a final dividend of HKD 3.70 per share, consistent with the previous year[10]. - The company declared a final dividend of HKD 3.70 per share, maintaining the total annual dividend at HKD 4.95 per share, which represents about 60% of the basic profit for the year[19]. - The company plans to maintain its dividend policy, distributing 40% to 50% of its basic profit as dividends in the future[16]. Land Bank and Development Projects - The total land bank in Hong Kong amounted to 58.0 million square feet, an increase of 1.6% from 57.1 million square feet in 2022[10]. - The land bank in mainland China decreased to 67.5 million square feet, down 4.4% from 70.6 million square feet in the previous year[10]. - The group added three commercial land reserves, totaling approximately 2.33 million square feet, including a project in Mong Kok expected to be completed by the end of 2030[20]. - The group has 21.6 million square feet of properties under development, primarily for sale, and 36.4 million square feet of completed properties, mostly for leasing/investment[15]. - The group is actively pursuing new development projects, including properties in Hong Kong and mainland China, to enhance its market presence[10]. Market Performance and Sales - The group achieved a 13% increase in sales, nearing its annual sales target, primarily from various residential projects[24]. - Approximately 3 million square feet of properties were completed in Hong Kong during the year, with about 2 million square feet available for sale, most of which have already been sold[25]. - The group has an unrecognized contract sales amount of HKD 28 billion, with an estimated HKD 24 billion expected to be recognized in the 2023/24 fiscal year[26]. - The total contract sales amount to HKD 33.4 billion, reflecting the group's strong performance in property sales[66]. Rental Income and Occupancy Rates - The group's total rental income in Hong Kong increased by 1% year-on-year to HKD 17.73 billion, with an overall occupancy rate maintained at a satisfactory level[27]. - The average occupancy rate for the group's office properties was approximately 92%, reflecting a satisfactory level despite challenges in the office leasing market[27]. - Total rental income increased by 1% year-on-year to HKD 17.738 billion, including income from joint ventures and associates[111]. - The overall occupancy rate of the property investment portfolio remained stable at approximately 93%[111]. Sustainability and ESG Initiatives - The group aims to achieve LEED Gold or Platinum certification for its new commercial projects while continuously improving the green building standards of existing properties[27]. - The company is committed to enhancing its ESG standards and has been included in the S&P Global Sustainability Yearbook 2023[45]. - The group is focused on sustainable development, integrating environmental, social, and governance (ESG) elements into its property development and management[60]. - The group plans to install fast electric vehicle chargers in major shopping malls by mid-2024 to address the limited number of public chargers[47]. - The group has set a ten-year environmental goal and is collaborating with a local university on green building solutions[46]. Technology and Innovation - The company is integrating technology and smart design into its projects, including wireless internet systems and smart home features[88]. - The group has implemented advanced technology to enhance operational efficiency, including an online reservation system that reduces costs and increases booking rates[193]. - The construction department is focusing on digital transformation, including workflow restructuring and the comprehensive application of BIM technology[200]. Hotel Operations and Recovery - The group’s hotel operations in Hong Kong are recovering, with significant improvements noted in the performance of the Ritz-Carlton Shanghai due to domestic tourism recovery[36]. - The hotel portfolio in Hong Kong has seen improved occupancy rates and room prices returning to pre-pandemic levels, driven by an increase in travelers[183]. - The luxury Nanjing River West Andaz Hotel opened during the year, enhancing the group's hotel portfolio in mainland China[183]. - The group achieved a significant recovery in hotel occupancy rates and room prices in mainland China following the lifting of travel restrictions in early 2023[192]. Future Development Plans - The company is actively pursuing market expansion through new developments in various regions, including Tuen Mun and Tai Po, with significant residential and commercial projects planned[104]. - Future major projects expected to be completed by the fiscal year 2026/27 are projected to total 11,730,000 square feet, with residential developments comprising 7,075,000 square feet[104]. - The group is focused on expanding its business in mainland China, leveraging its strong reputation and experienced team to develop high-quality projects[62]. - The group is committed to maintaining high-quality standards, evidenced by its introduction of a three-year warranty for newly sold residential properties in Hong Kong[72].

Financial Performance - The company's basic profit attributable to shareholders for the year ended June 30, 2023, was HKD 23.885 billion, down from HKD 28.72 billion the previous year, representing a decrease of approximately 17.5%[2] - The basic earnings per share decreased to HKD 8.24 from HKD 9.91, reflecting the decline in property sales profits[2] - The group reported a revenue of HKD 71,195 million for the year ended June 30, 2023, compared to HKD 77,747 million in the previous year, reflecting a decrease of approximately 8.5%[38] - The net profit for the year was HKD 24,575 million, down from HKD 26,131 million in the prior year, representing a decline of about 5.9%[39] - Basic and diluted earnings per share were HKD 8.25 for the current year, compared to HKD 8.82 in the previous year, indicating a decrease of approximately 6.5%[38] - The group reported a significant other comprehensive loss of HKD 9,572 million for the year, compared to HKD 3,104 million in the previous year, primarily due to foreign exchange differences[39] - The fair value changes of investment properties resulted in a loss of HKD 3,145 million, compared to a loss of HKD 3,033 million in the previous year[38] Property Sales and Revenue - The profit from property sales was HKD 11.299 billion, down from HKD 15.847 billion the previous year, indicating a decline of approximately 29.1%[4] - Property sales in Hong Kong generated revenue of HKD 23,853 million, contributing to a profit of HKD 8,467 million[43] - Hong Kong property sales revenue decreased by 27% to HKD 23.86 billion, with a significant drop in residential unit deliveries[62] - Mainland property sales revenue increased by 108% to HKD 5.25 billion, driven by higher sales deliveries[62] - The group has unrecognized contract property sales revenue of HKD 32.4 billion, with HKD 28 billion expected to be recognized in the next fiscal year[62] Rental Income and Property Management - Total rental income for the year decreased by 2% to HKD 24.322 billion, while net rental income fell by 4% to HKD 18.461 billion[5] - Total rental income in Hong Kong increased by 1% year-on-year to HKD 17.73 billion, maintaining a healthy overall occupancy rate of 95%[11] - The group’s office properties achieved an average occupancy rate of approximately 92%, reflecting satisfactory performance despite a challenging operating environment[12] - The group’s investment properties continue to generate substantial recurring income, contributing to overall financial stability[11] - The average rental rate for the group’s office properties in Kowloon East remains satisfactory despite intense competition[13] Dividends and Financial Policy - The company plans to maintain its dividend policy, distributing 40% to 50% of its basic profit as dividends, with a final dividend of HKD 3.70 per share[3] - The interim dividend declared was HKD 1.25 per share, consistent with the previous year, totaling HKD 3.622 billion[53] - The proposed final dividend is HKD 3.70 per share, totaling HKD 10.722 billion, unchanged from the previous year[53] Land Reserves and Development Projects - The company added three commercial land reserves, totaling approximately 2.3 million square feet, with a significant project in Mong Kok expected to be completed by the end of 2030[6] - Approximately 5.58 million square feet of land reserves are held in Hong Kong, with 3.64 million square feet being diversified completed properties[7] - As of June 30, 2023, the group's land reserves in mainland China amounted to approximately 6.75 million square feet, with about 4.71 million square feet under development[15] - The group anticipates the opening of several new properties, including TOWNPLACE WEST KOWLOON in Q4 2023 and expansions in Yuen Long and Shanghai ITC by 2024, which will enhance recurring income[34] Sustainability and Innovation - The company aims to integrate technology and natural elements into its projects to meet customer demands for smart homes and healthy living[8] - The group has achieved LEED Platinum certification for its International Finance Centre and headquarters, reflecting its commitment to high standards in green building[12] - The group has set a ten-year environmental goal and is making progress in adopting green building technologies to reduce waste and emissions[29] - NOVO LAND has become the first residential project in Hong Kong to receive three international health building certifications[29] - The group is developing one of Hong Kong's largest solar power networks, including the first solar power plant located in a landfill area[29] Financial Health and Debt Management - The group maintained a strong financial policy, receiving credit ratings of A1 and A+ from Moody's and S&P, respectively, both with stable outlooks[25] - The group achieved a five-year syndicated loan amounting to HKD 27.5 billion, the largest in its history, in May 2023[26] - The group’s net debt as of June 30, 2023, was HKD 109.773 billion, with a debt-to-equity ratio of 18.2%[66] - Interest coverage ratio decreased to 6.8 times from 12.8 times last year, reflecting higher net financial expenses[67] - The group’s debt composition indicates that 85% is denominated in HKD, 14% in RMB, and 1% in GBP as of June 30, 2023[71] Market Outlook and Strategic Initiatives - The group is focusing on high-selectivity investment strategies, concentrating on core areas in first-tier and major second-tier cities in mainland China[15] - The group is optimistic about the prospects in Hong Kong and mainland China, planning to invest in major cities in both regions[34] - The group plans to launch several residential projects in Hong Kong and mainland China, including developments in Yuen Long and Shanghai[33] - The group continues to enhance its ESG standards and was included in the "S&P Global Sustainability Yearbook 2023"[28] Employee and Governance - The total employee compensation for the year is approximately HKD 14.164 billion, with over 40,000 employees as of June 30, 2023[79] - The financial statements for the year have been reviewed by the Audit and Risk Management Committee and audited by Deloitte, with an unqualified opinion issued[84] - The company has complied with the corporate governance code as per the listing rules, although the roles of Chairman and CEO are not separated[85]

Financial Performance - Group revenue for the six months ended December 31, 2022, was HKD 27,428 million, a decrease of 31.7% compared to HKD 40,153 million in the same period last year[7] - Profit attributable to shareholders (basic) was HKD 8,410 million, a decrease of 44.6% compared to HKD 15,186 million in the same period last year[7] - Revenue for the six months ended December 31, 2022, was HK$27,428 million, a decrease from HK$40,153 million in the same period in 2021[50] - Gross profit for the period was HK$14,044 million, down from HK$19,900 million in 2021[50] - Operating profit for the six months ended December 31, 2022, was HK$10,859 million, compared to HK$16,907 million in 2021[50] - Profit attributable to shareholders for the period was HK$8,410 million, a decrease from HK$15,186 million in 2021[50] - Basic and diluted earnings per share were HK$2.90, down from HK$5.24 in the same period last year[50] - Total assets as of December 31, 2022, were HK$738,741 million, compared to HK$745,191 million as of June 30, 2022[52] - Net cash generated from operating activities for the six months ended December 31, 2022, was HK$7,896 million, compared to HK$4,016 million in 2021[53] - Cash and cash equivalents at the end of the period were HK$15,690 million, down from HK$17,830 million at the end of 2021[53] - Investment properties as of December 31, 2022, were valued at HK$399,068 million, slightly up from HK$398,729 million as of June 30, 2022[52] - Total equity attributable to shareholders as of December 31, 2022, was HK$595,070 million, compared to HK$601,946 million as of June 30, 2022[52] - Net profit for the period was HKD 15,186 million, with non-controlling interests contributing HKD 328 million, totaling HKD 15,514 million[54] - Exchange differences from the translation of mainland subsidiaries amounted to HKD 1,773 million[54] - Fair value gains on cash flow hedges were HKD 185 million[54] - Fair value losses on debt securities measured at fair value through other comprehensive income were HKD 31 million[54] - Fair value losses on equity securities measured at fair value through other comprehensive income were HKD 80 million[54] - Total comprehensive income for the period was HKD 18,034 million[54] - Net profit for the six months ended December 31, 2022, was HKD 8,410 million, with non-controlling interests contributing HKD 380 million, totaling HKD 8,790 million[55] - Exchange differences from the translation of mainland subsidiaries resulted in a loss of HKD 3,352 million[55] - Fair value losses on cash flow hedges were HKD 330 million[55] - Total comprehensive loss for the six months ended December 31, 2022, was HKD 4,610 million[55] - Property sales in Hong Kong generated revenue of HKD 2,881 million, with a profit of HKD 1,198 million[58] - Property sales in Mainland China contributed HKD 2,176 million in revenue and HKD 1,083 million in profit[58] - Property leasing in Hong Kong achieved revenue of HKD 7,429 million and profit of HKD 5,352 million[58] - Data center business reported revenue of HKD 1,108 million and profit of HKD 557 million[58] - Hotel business recorded a loss of HKD 82 million despite revenue of HKD 1,551 million[58] - Telecommunications segment generated revenue of HKD 3,809 million with a profit of HKD 391 million[58] - Transport infrastructure and logistics segment contributed HKD 2,051 million in revenue and HKD 604 million in profit[58] - Other businesses, including property management and department stores, reported revenue of HKD 4,128 million and profit of HKD 656 million[58] - Total consolidated revenue for the period was HKD 33,864 million, with a consolidated profit of HKD 14,618 million[58] - Revenue from property sales in Hong Kong for the previous period (H1 2021) was HKD 16,964 million, with a profit of HKD 7,012 million[59] - Property sales revenue for the six months ended December 31, 2021, was HKD 17,305 million, with no revenue recognized over time[63] - Property leasing revenue for the same period was HKD 1,024 million, with other income sources contributing HKD 9,418 million, totaling HKD 10,442 million[63] - Hotel business revenue was HKD 1,564 million, with HKD 881 million recognized at a point in time and HKD 683 million recognized over time[63] - Telecommunications revenue was HKD 3,792 million, with HKD 1,549 million recognized at a point in time and HKD 2,243 million recognized over time[63] - Transportation infrastructure and logistics revenue was HKD 1,819 million, with HKD 38 million recognized at a point in time and HKD 1,781 million recognized over time[63] - Data center business revenue was HKD 995 million, all recognized over time[63] - Property management revenue was HKD 2,487 million, with HKD 131 million recognized at a point in time and HKD 2,356 million recognized over time[63] - Department store business revenue was HKD 1,211 million, all recognized at a point in time[63] - Financial services and other revenue was HKD 355 million, with HKD 12 million recognized over time and HKD 343 million from other sources[63] - Total revenue from contracts with customers was HKD 30,209 million, with HKD 21,115 million recognized at a point in time and HKD 9,094 million recognized over time[63] - Interim dividend declared at HKD 1.25 per share, totaling HKD 3,622 million, unchanged from 2021[71] - Final dividend for the previous fiscal year approved and paid at HKD 3.70 per share, totaling HKD 10,722 million, unchanged from 2021[71] - Investment properties valuation increased to HKD 399,068 million as of December 31, 2022, from HKD 398,729 million on July 1, 2022, with additions of HKD 4,906 million and fair value decrease of HKD 348 million[73] - Completed investment properties in Hong Kong valued at HKD 257,481 million with a weighted average capitalization rate of 5.1%, while Mainland China properties valued at HKD 78,237 million with a capitalization rate of 6.5%[75] - Development properties in Hong Kong valued at HKD 29,587 million with a capitalization rate range of 3.0%-5.5%, and Mainland China properties valued at HKD 33,763 million with a capitalization rate range of 5.0%-8.8%[75] - Property, plant, and equipment additions amounted to HKD 2,779 million, including HKD 428 million for right-of-use assets, with disposals at a net book value of HKD 20 million[76] - Financial investments in equity securities at fair value through profit or loss increased to HKD 1,497 million as of December 31, 2022, from HKD 1,029 million as of June 30, 2022[77] - Total receivables decreased to HKD 3,726 million as of December 31, 2022, from HKD 5,234 million as of June 30, 2022, with first mortgage loans at HKD 1,419 million[78] - Trade receivables aged less than 30 days accounted for 63% as of December 31, 2022, compared to 83% as of June 30, 2022[79] - Contract costs capitalized amounted to HKD 482 million as of December 31, 2022, primarily related to commissions for property sales and telecommunications services[80] - Business payables increased to HKD 3,306 million as of December 31, 2022, from HKD 3,237 million on June 30, 2022, with 62% aged less than 30 days, 10% aged 31-60 days, 3% aged 61-90 days, and 25% aged over 90 days[81] - Total other payables and accrued expenses decreased to HKD 22,951 million as of December 31, 2022, from HKD 24,215 million on June 30, 2022[81] - Contract liabilities increased to HKD 817 million as of December 31, 2022, from HKD 658 million on June 30, 2022[81] - The company's issued and fully paid ordinary shares remained at 2,898 million shares, with a total value of HKD 70,703 million as of both June 30, 2022, and December 31, 2022[82] - Capital commitments for investment properties and property, plant, and equipment totaled HKD 7,068 million (contracted but not provided for) and HKD 4,576 million (approved but not contracted) as of December 31, 2022[86] - The company's share of joint venture capital commitments was HKD 2,826 million (contracted but not provided for) and HKD 4,338 million (approved but not contracted) as of December 31, 2022[86] - The fair value of financial assets classified as Level 1, Level 2, and Level 3 totaled HKD 1,296 million, HKD 220 million, and HKD 826 million, respectively, as of December 31, 2022[88] - The fair value of financial liabilities classified as Level 2 was HKD 616 million as of December 31, 2022[88] - Interest income from joint ventures was HKD 46 million for the six months ended December 31, 2022, compared to HKD 52 million for the same period in 2021[85] - Revenue from services provided to joint ventures increased to HKD 574 million for the six months ended December 31, 2022, from HKD 23 million for the same period in 2021[85] - The company's basic profit attributable to shareholders for the first half of the fiscal year 2022/23 was HK$9.465 billion, a decrease of 36% compared to HK$14.818 billion in the same period last year[94] - The profit decrease was mainly due to reduced property development profits and rental income in Hong Kong, partially offset by increased contributions from non-property and hotel businesses[94] - The fair value of debt securities decreased from HK$657 million to HK$644 million as of December 31, 2022[93] - The fair value of long-term bank loans and bonds decreased from HK$106.070 billion to HK$106.423 billion as of December 31, 2022[93] - Hong Kong property sales revenue (including joint ventures) decreased by 83% to HK$2.885 billion compared to the same period last year[97] - Mainland China property sales revenue (including joint ventures) increased by 175% to HK$4.031 billion compared to the same period last year[97] - The company's unrecognized contracted property sales revenue (including joint ventures) amounted to HK$35.5 billion as of December 31, 2022[97] - Hong Kong property rental income (including joint ventures) decreased by 2% to HK$8.772 billion compared to the same period last year[97] - The company's total revenue decreased by 26% to HK$33.864 billion compared to the same period last year[96] - The company's total operating profit decreased by 25% to HK$14.618 billion compared to the same period last year[96] - The rental income and net rental income of the mainland investment property portfolio, including joint ventures, decreased by 17% and 20% respectively to HKD 2.798 billion and HKD 2.218 billion compared to the same period last year[98] - The hotel business revenue increased by 3% to HKD 1.86 billion, and the operating loss decreased by 61% to HKD 63 million (after deducting depreciation expenses of HKD 325 million)[98] - SmarTone's revenue was HKD 3.809 billion, with an operating profit of HKD 391 million, driven by the growth of its 5G business and cost optimization measures[98] - The transportation infrastructure and logistics business revenue remained stable at HKD 3.886 billion, with operating profit increasing by 3% to HKD 799 million[98] - SUNeVision's revenue increased by 11% to HKD 1.108 billion, and operating profit increased by 10% to HKD 557 million, driven by increased demand for data center services[99] - The revaluation loss of investment properties, including joint ventures and associates, was HKD 1.206 billion, with a net revaluation loss of HKD 967 million after deducting deferred tax and non-controlling interests[100] - The net debt of the company increased to HKD 114.067 billion, with a debt-to-equity ratio of 19.2%, up from 17.4% due to capital expenditures in mainland China and Hong Kong[102] - The net finance costs before interest capitalization increased by HKD 517 million to HKD 1.821 billion, with the weighted average borrowing cost rising to 3.1%[103] - The total debt of the company was HKD 131.869 billion, with 76% borrowed through wholly-owned financial subsidiaries and 24% through operational subsidiaries[105] - The weighted average repayment period of the company's debt was approximately 3.9 years, with 16% of the total debt due within one year[106] - Total debt of the group increased to HKD 131.869 billion as of December 31, 2022, up from HKD 124.931 billion as of June 30, 2022, with HKD-denominated debt accounting for 81% of the total[107] - RMB-denominated debt accounted for 15% of the total debt, primarily used for financing ongoing property projects in mainland China[107] - Fixed-rate debt accounted for 34% of the total debt, including a RMB 2 billion commercial mortgage-backed bond issued in September 2022[108] - The group's bank deposits and cash stood at HKD 17.802 billion as of December 31, 2022, with 62% held in RMB to meet funding needs for mainland projects[112] - The group's net assets were approximately 20% denominated in RMB, with a HKD 4.2 billion exchange loss due to a 3.7% depreciation of RMB against HKD[110] - The group utilized derivative instruments with a total notional principal of HKD 18.557 billion to manage interest rate and foreign exchange risks[111] - Contingent liabilities amounted to HKD 2.157 billion as of December 31, 2022, related to guarantees for joint venture loans[114] - The group's financial resources include substantial unutilized credit facilities and steady cash inflows from property sales, ensuring liquidity and flexibility for future investments[109] - Total employee compensation for the six months ended December 31, 2022, was approximately HKD 6.889 billion before reimbursements[166] - The company will pay an interim dividend of HKD 1.25 per share for the six months ended December 31, 2022, unchanged from the previous year[168] - The record date for determining shareholders' entitlement to the interim dividend is March 10, 2023, with the ex-dividend date set for March 8, 2023[169] - The company did not purchase, sell, or redeem any of its listed securities during the six months ended December 31, 2022[170] - The interim financial results for the six months ended December 31, 2022, were reviewed by Deloitte Touche Tohmatsu in accordance with Hong Kong Standard on Review Engagements 2410[171] - The company complied with the Corporate Governance Code during the six months ended December 31, 2022, except for not separating the roles of Chairman and CEO[172] Property Development and Leasing - Total rental income decreased by 6% to HKD 11,927 million, and net rental income decreased by 9% to HKD 8,887 million, primarily due to the impact of the pandemic on the mainland rental property portfolio[14] - Profit from property sales was HKD 3,366 million, a significant decrease from HKD 7,658 million in the same period last year, mainly due to the completion of Hong Kong residential projects for sale in the second half of the fiscal year[13] - Added a total gross floor area of approximately 809,000 square feet to the land reserve, including the West Kowloon Cultural District Art Square Building project with 672,000 square feet of Grade A office space and 27,000 square feet of retail space[15] - Acquired a site near Anderson Road in Kwun Tong, developing a community shopping mall with a total gross floor area of approximately 110,000 square feet[16] - Total land reserve in Hong Kong as of December 31, 2022, was approximately 57.9 million square feet, including 34.8 million square feet of completed properties and 23.1 million square feet of properties under development[16] - Contracted sales for the period amounted to approximately HKD 13.4 billion, primarily from NOVO LAND Phase 1A and 1B in Tuen Mun and Wetland Seasons Bay Phase 3 in Yuen Long[17] - Plaza 228, a premium office project in Wan Chai, was completed with a total gross floor area of 122,000 square feet[17] - Total rental income in Hong Kong decreased by 2% year-on-year to HKD 8.772 billion, with an overall occupancy rate of approximately 96% for retail properties[18] - The retail portfolio covers approximately 12 million square feet, with Play Park, a 60

以客為先 品牌卓越 實力雄厚 年報 2021/22 股份代號 : 16 | --- | --- | --- | --- | |---------|-------|-------|----------------------------| | | | | | | | | | | | | 6 | 2. | 香港西九龍凱旋門 | | | 7 | 3. | 上海市徐家匯 ITC | | 1 3 5 4 | | 4. | 香港灣仔新鴻基中心 | | 2 | 8 | 5. | 香港西九龍天璽 | | | | 6. | 香港西九龍環球貿易廣場 | | | | 7. | 香港中環國際金融中心二期 | | | | 8. | 香港高鐵西九龍總站發展項目 | 1. 上海市陸家嘴上海國金中心 目 錄 | --- | --- | --- | |-------|----------|--------------------| | | | | | 2 | | 董事局及委員會 | | 3 | | 公司資料及股東資訊 | | 4 | | 財務概要及土地儲備 | | 6 | | 五年財務摘要 | | 7 | 業務架構 | | | 8 | | 董 ...

新 鴻 基 地 產 發 展 有 限 公 司 Sun Hung Kai Properties Limited Customer Focus 以客為先 Premium Brand 品牌卓越 Solid Foundations 實力雄厚 INTERIM REPORT 中期報告 Stock Code 股份代號：16 | --- | --- | --- | |-------|-------|----------------------------------------------------------------------------------------------| | | | | | | | 1. ICC in West Kowloon, Hong Kong 香港西九龍環球貿易廣場 | | | 2 | 2. IFC in Central, Hong Kong 香港中環國際金融中心 | | 1 | | 3. ITC in Xujiahui, Shanghai 上海市徐家匯 ITC | | 4 | | 3 4. Shanghai IFC in Lujiazui, Shanghai 上海市陸家嘴上海國金中心 | ...