Financial Performance - The basic earnings attributable to shareholders for the first half of 2024 slightly increased to HKD 289 million, compared to HKD 288 million in the same period of 2023, representing a 0.3% increase [13]. - The unaudited profit attributable to shareholders for the six months ended June 30, 2024, decreased to HKD 113 million, down 38.6% from HKD 184 million in the same period of 2023 [15]. - The basic interim earnings per share for 2024 is HKD 0.246, compared to HKD 0.245 in 2023 [15]. - The interim dividend for 2024 is set at HKD 0.10 per share, down from HKD 0.26 per share in 2023 [15]. - The company reported a total revenue of HKD 1,940,947,000 for the six months ended June 30, 2024, compared to HKD 1,275,963,000 for the same period in 2023, representing an increase of approximately 52.1% [34]. - Operating profit decreased to HKD 269,188,000 for the first half of 2024, down from HKD 313,391,000 in the previous year, reflecting a decline of about 14.1% [34]. - The net profit for the period was HKD 113,104,000, a decrease of 38.3% from HKD 183,594,000 in the prior year [35]. - Basic and diluted earnings per share were HKD 0.10, down from HKD 0.16 in the same period last year, indicating a decline of 37.5% [34]. - The total comprehensive income for the period was HKD 78,542,000, compared to a loss of HKD 45,900,000 in the same period last year [35]. - The company reported a profit of HKD 113,453 for the six months ended June 30, 2024, compared to HKD 184,481 for the same period in 2023, reflecting a decrease of approximately 38.4% [38]. Property Development and Sales - The group's attributable gross floor area landbank amounts to approximately 3.2 million sq m in Hong Kong and Mainland China as of June 30, 2024 [3]. - The group is engaged in property development, investment, and management, with major projects including Jiangwan City in Shenyang and other developments in Mainland China [12]. - In Hong Kong, the group achieved sales revenue of approximately HKD 1.2 billion from the sale of over 1,100 residential units at the Haiyin Garden project by June 30, 2024 [17]. - In mainland China, the total pre-sale/sales amount for the group's development projects reached approximately RMB 643 million, with the group's attributable share being about RMB 558 million [17]. - The group is progressing with the construction of a mixed-use development project in Sai Ying Pun, with a 60% interest, expected to meet strong demand due to its prime location [23]. - The group is adjusting the planning for the third phase of the Jiangwan South Garden residential project in Huizhou in response to market changes, with construction to commence upon approval [23]. - The group continues to sell remaining units in joint venture projects in Foshan and Tianjin, with ongoing construction for the fifth phase of the Shanyu Lake project and the third phase of the City Square project [23]. - The group anticipates that sales from remaining units in the Sea Garden project and other development projects will contribute significantly to revenue in the second half of the year [24]. Market Conditions - The residential price index in June 2024 was 301.8, marking a nearly eight-year low and a decline of approximately 2.55% from the beginning of the year [16]. - The overall vacancy rate for office buildings in Hong Kong reached a new high, putting pressure on rental income [16]. - The market conditions in Hong Kong have been challenging, with high interest rates affecting purchasing sentiment and leading to a decline in property prices [16]. Financial Position and Liabilities - As of June 30, 2024, the group’s total bank loans were HKD 19,348,000,000, with HKD 2,898,000,000 due within one year [26]. - The company’s total liabilities decreased to HKD 8,474,882,000 from HKD 9,433,686,000, reflecting a reduction of about 10.2% [37]. - The company’s total liabilities decreased to HKD 16,449,906,000 from HKD 17,151,977,000, indicating a reduction of approximately 4.1% [68]. - The bank loans due within one year decreased to HKD 2,898,391,000 from HKD 3,744,569,000, reflecting a decline of about 22.7% [68]. - The total bank loans as of June 30, 2024, were HKD 19,348,297,000, down from HKD 20,896,546,000 at the end of 2023, indicating a decrease of approximately 7.4% [69]. Cash Flow and Investments - Cash inflow from sales in Hong Kong projects amounted to approximately HKD 1,205,000,000, primarily from the sale of the Sea Garden project, while cash inflow from mainland China projects was about HKD 351,000,000 [27]. - The company reported a significant decrease in cash and bank balances, which fell to HKD 708,832,000 from HKD 1,080,599,000, a decline of approximately 34.4% [36]. - The net cash generated from operating activities for the six months ended June 30, 2024, was HKD 1,076,035, an increase from HKD 1,005,443 in the same period of 2023, representing a growth of approximately 7.0% [39]. - The net cash used in investing activities for the six months ended June 30, 2024, was HKD 104,928, a recovery from HKD (11,258) in the same period of 2023 [39]. - The company incurred financial costs of HKD 85,140,000 for the six months ended June 30, 2024, slightly lower than HKD 95,034,000 in the previous year [52]. Corporate Governance and Compliance - The company has complied with all relevant corporate governance codes except for one specific provision regarding the dual role of the chairman and CEO [82]. - The company’s board members have confirmed full compliance with the securities trading standards during the review period [83]. - The independent auditor, KPMG, reviewed the interim financial report for the six months ending June 30, 2024, in accordance with Hong Kong standards [95]. Employee and Operational Insights - As of June 30, 2024, the company employed 2,743 staff, an increase from 2,641 staff as of December 31, 2023, reflecting business growth [93]. - Total employee costs rose to HKD 329 million, up from HKD 300 million as of June 30, 2023, due to salary adjustments and increased headcount [93]. - The company emphasizes competitive salary levels and discretionary bonuses based on performance to attract and retain talent [93]. - A series of training programs are conducted to enhance employee skills and knowledge, preparing them for a rapidly changing economic environment [93].

2024 Interim Results Announcement Summary [Interim Results and Dividend Overview](index=1&type=section&id=Interim%20Results%20and%20Dividend%20Overview) Kowloon Development Company Limited reported a slight increase in underlying profit attributable to shareholders but a significant decrease in unaudited profit, leading to a substantial reduction in interim dividends per share H1 2024 Key Financial Performance | Metric | H1 2024 (HKD) | H1 2023 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Underlying Profit Attributable to Shareholders | 289 million | 288 million | +0.3% | | Basic Interim Earnings Per Share | 0.246 | 0.245 | - | | Unaudited Profit Attributable to Shareholders | 113 million | 184 million | -38.6% | | Interim Earnings Per Share | 0.10 | 0.16 | - | | Interim Dividend Per Share | 0.10 | 0.26 | -61.5% | [Market Overview and Business Review](index=2&type=section&id=Market%20Overview%20and%20Business%20Review) [Market Overview](index=2&type=section&id=Market%20Overview) Hong Kong's property market in H1 2024 experienced low buying sentiment due to high interest rates, with a brief stimulus from the government's removal of sales restrictions, while mainland China saw continued declines in both property sales volume and prices - High bank interest rates in Hong Kong severely impacted market buying sentiment[5](index=5&type=chunk) - The government's complete removal of property sales restrictions in late February provided only a short-term stimulus, with transaction volumes gradually declining[5](index=5&type=chunk) - Hong Kong's residential property price index reached a nearly eight-year low, falling approximately **2.55%** from its year-start high and over **24%** from its historical peak in September 2021[5](index=5&type=chunk) - Mainland China's property market experienced generally sustained low buying sentiment, leading to declines in both sales volume and prices nationwide[5](index=5&type=chunk) [Property Sales](index=2&type=section&id=Property%20Sales) The Group continued to sell its Grand Mayfair project in Tseung Kwan O, Hong Kong, recognizing approximately HKD 1.2 billion in sales revenue in H1, while mainland China development projects achieved total pre-sales/sales of approximately RMB 643 million, with the Group's attributable share being approximately RMB 558 million - Over **1,100 residential units** at the Grand Mayfair project in Tseung Kwan O, Hong Kong, have been sold cumulatively[6](index=6&type=chunk) - Sales revenue of approximately **HKD 1.2 billion** from Grand Mayfair was recognized in H1[6](index=6&type=chunk) Mainland China Development Projects Pre-sales/Sales (Six Months Ended June 30, 2024) | Metric | Amount | | :--- | :--- | | Total Pre-sales/Sales | Approximately RMB 643 million | | Group's Attributable Pre-sales/Sales | Approximately RMB 558 million | [Property Development](index=3&type=section&id=Property%20Development) The Group sold a 60% equity interest in a Shanghai property development project for a total consideration of HKD 1.392 billion to enhance liquidity and reduce its gearing ratio, with total attributable gross floor area of land bank at approximately 3.2 million square meters as of June 30, 2024, and various key property projects in Hong Kong and mainland China progressing towards their estimated completion dates - The Group completed the disposal of a **60% equity interest** in a subsidiary holding a Shanghai property development project, along with a **60% shareholder loan**, for a total consideration of **HKD 1,391,957,000** on June 11, 2024[7](index=7&type=chunk) - The disposal helps enhance the Group's liquidity and reduce its gearing ratio[7](index=7&type=chunk) - As of June 30, 2024, the Group's attributable total gross floor area of land bank available for development was approximately **3,200,000 square meters**[7](index=7&type=chunk) Overview of Major Property Project Progress | Property Project | Region/City | Usage | Group's Interest | Project Progress | Estimated Completion Date | | :--- | :--- | :--- | :--- | :--- | :--- | | High Street | Sai Ying Pun, Hong Kong | Residential & Commercial | 60% | Superstructure works in progress | End of 2025 | | Clearwater Bay Road | Ngau Chi Wan, Kowloon | Residential & Commercial | 100% | Foundation works in progress | 2026 to 2028 | | Jiangwan City (Shenyang) | Hunnan New District, Shenyang | Residential & Commercial | 100% | Phase 5A planning modification in progress | Phase 5A to be determined | | Cui Di Wan (Shenyang) | Shenhe District, Shenyang | Residential & Commercial | 100% | Phase 4 design approval in progress | Phase 4 to be determined | | Jiangwan South Bank Garden (Huizhou) | Huicheng District, Huizhou | Residential & Commercial | 60% | Phase 3 planning in progress | Phase 3 to be determined | | Shan Yu Hu (Foshan) | Nanhai District, Foshan | Residential & Commercial | 50% | Phase 5 superstructure works in progress | 2024/2025 | | Jiangwan City (Wuxi) | Liangxi District, Wuxi | Residential & Commercial | 100% | Phase 4 interior fitting-out works in progress | Q3 2024 | | City Plaza (Tianjin) | Hedong District, Tianjin | Residential, Commercial & Office | 49% | Phase 3B superstructure works in progress | End of 2026 | | Yangpu (Shanghai) | Yangpu District, Shanghai | Residential, Commercial & Office | 40% | Preliminary construction permit obtained; site formation works in progress | End of 2029 | | Polytec • Guifu (Shanxi) | Jiexiu City | Residential & Commercial | 100% | Phase 1 interior fitting-out works in progress | End of 2024 | | Henda Plaza (Zhuhai) | Xiangzhou District, Zhuhai | Commercial, Office & Serviced Apartments | 70% | Phase 1 superstructure works in progress | End of 2025 | [Property Investment](index=4&type=section&id=Property%20Investment) In the first six months of 2024, the Group's total rental income from its Hong Kong investment property portfolio was HKD 148 million, with its flagship property, Pioneer Centre, experiencing a 3.3% year-on-year decline in total rental income to HKD 116 million, reflecting pressure from a weak retail market and record-high office vacancy rates - The Group's total rental income from its Hong Kong investment property portfolio was **HKD 148 million**[10](index=10&type=chunk) Pioneer Centre Total Rental Income (H1 2024) | Metric | H1 2024 (HKD) | H1 2023 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Pioneer Centre Total Rental Income | 116 million | 120 million | -3.3% | [Outlook](index=5&type=section&id=Outlook) The Group anticipates a boost in the Hong Kong property market from factors such as declining US interest rates, the removal of stamp duties, and a temporary halt in land sales, with a focus on selling remaining units at Grand Mayfair and launching pre-sales for the new High Street project in Sai Ying Pun in the second half of the year, while the outlook for mainland China remains challenging with limited profit contribution expected; the Group will continue to operate cautiously and has temporarily reduced its interim dividend to navigate the severe market conditions, with plans to resume increasing dividends when market conditions permit - Hong Kong interest rates are expected to gradually decline after September, following US interest rates, and the Hong Kong government's removal of stamp duties and temporary halt in land sales are anticipated to boost market buying confidence[11](index=11&type=chunk) - The Group will launch pre-sales for its new project on High Street in Sai Ying Pun, Hong Kong Island, in the fourth quarter of this year[12](index=12&type=chunk) - Operating income from mainland China will primarily come from the sale of remaining units in Wuxi and other development projects, but given the current low property prices in mainland China, the contribution of domestic development projects to the Group's profit is expected to be limited[12](index=12&type=chunk) - Under the principle of prudent operation, the Group has temporarily altered its strategy of gradually increasing dividends over the past decade, reducing this interim dividend, and will resume increasing dividends when market conditions permit[12](index=12&type=chunk) [Interim Financial Report](index=7&type=section&id=Interim%20Financial%20Report) [Consolidated Statement of Profit or Loss](index=7&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) In H1 2024, the Group's operating revenue significantly increased to HKD 1.941 billion, but profit for the period decreased by 38.6% to HKD 113 million due to an expanded fair value loss on investment properties and a reversal from loss to gain in fair value changes of property development interests Consolidated Statement of Profit or Loss Key Data (Six Months Ended June 30, 2024) | Metric | 2024 (HKD thousand) | 2023 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,940,947 | 1,275,963 | +52.1% | | Cost of Sales | (916,223) | (402,254) | +127.8% | | Operating Profit | 269,188 | 313,391 | -14.1% | | Fair Value Change of Investment Properties | (189,846) | (36,972) | +413.5% (Loss widened) | | Fair Value Change of Property Development Interests | 14,050 | (8,777) | Turned from loss to profit | | Profit Before Tax | 199,345 | 260,997 | -23.6% | | Profit for the Period | 113,104 | 183,594 | -38.4% | | Profit Attributable to Equity Holders of the Company | 113,453 | 184,481 | -38.5% | | Earnings Per Share – Basic and Diluted | HKD 0.10 | HKD 0.16 | -37.5% | [Consolidated Statement of Comprehensive Income](index=8&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) In H1 2024, the Group's total comprehensive income for the period turned from a loss in the prior year to a profit of HKD 78.542 million, primarily due to a significant narrowing of exchange differences on financial statements of subsidiaries outside Hong Kong and the release of exchange reserves upon disposal of a subsidiary Consolidated Statement of Comprehensive Income Key Data (Six Months Ended June 30, 2024) | Metric | 2024 (HKD thousand) | 2023 (HKD thousand) | Change (HKD thousand) | | :--- | :--- | :--- | :--- | | Profit for the Period | 113,104 | 183,594 | -70,490 | | Exchange Differences on Financial Statements of Subsidiaries Outside Hong Kong | (32,719) | (129,063) | +96,344 | | Exchange Reserve Released on Disposal of Subsidiary | 17,082 | - | +17,082 | | Share of Other Comprehensive Income of Joint Ventures and Associates | (18,925) | (100,431) | +81,506 | | Total Comprehensive Income for the Period | 78,542 | (45,900) | +124,442 (Turned from loss to profit) | [Consolidated Statement of Financial Position](index=9&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets decreased from the end of 2023, mainly due to a reduction in inventories, while net current liabilities improved and the gearing ratio decreased, with a significant increase in interests in associates within non-current assets reflecting investments in these entities Consolidated Statement of Financial Position Key Data (As of June 30, 2024) | Metric | June 30, 2024 (HKD thousand) | December 31, 2023 (HKD thousand) | Change (HKD thousand) | | :--- | :--- | :--- | :--- | | Total Assets | 44,455,032 | 47,732,654 | -3,277,622 | | Investment Properties | 13,502,300 | 13,633,020 | -130,720 | | Interests in Associates | 2,287,563 | 1,315,962 | +971,601 | | Inventories | 22,845,215 | 26,551,788 | -3,706,573 | | Cash and Bank Balances | 708,832 | 1,080,599 | -371,767 | | Net Current Liabilities | 16,431,556 | 19,529,624 | -3,098,068 | | Bank Loans (Current) | 2,898,391 | 3,744,569 | -846,178 | | Bank Loans (Non-current) | 16,449,906 | 17,151,977 | -702,071 | | Loans from Related Companies (Non-current) | 1,079,763 | 2,789,185 | -1,709,422 | | Total Equity | 17,846,513 | 17,767,971 | +78,542 | [Notes to the Financial Statements](index=11&type=section&id=Notes%20to%20the%20Financial%20Statements) The notes to the financial statements provide detailed information on the basis of preparation, changes in accounting policies, segment reporting, components of profit before tax, income tax calculation, earnings per share, dividend policy, property development interests, and trade and other receivables/payables, offering a deeper understanding of the Group's financial performance [Basis of Preparation](index=11&type=section&id=Basis%20of%20Preparation) This interim financial report is prepared in accordance with the disclosure requirements of the Listing Rules of The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants, consistently applying the accounting policies used in the 2023 annual financial statements - This interim financial report is prepared in accordance with the disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, including compliance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[17](index=17&type=chunk) - Except for changes in accounting policies expected to be reflected in the 2024 annual financial statements, the accounting policies adopted in the 2023 annual financial statements have been consistently applied in this interim financial report[17](index=17&type=chunk) [Changes in Accounting Policies](index=12&type=section&id=Changes%20in%20Accounting%20Policies) Revisions to Hong Kong Financial Reporting Standards effective for the current accounting period had no material impact on the preparation and presentation of the Group's current or prior period results and financial position - The Hong Kong Institute of Certified Public Accountants has issued certain amendments to Hong Kong Financial Reporting Standards that are effective for the Group's current accounting period, but they have no material impact on the preparation and presentation of the Group's current or prior period results and financial position[18](index=18&type=chunk) [Segment Reporting](index=12&type=section&id=Segment%20Reporting) The Group's operations are categorized into property development (Hong Kong/Mainland China), property investment, and other businesses, with property development (Hong Kong) contributing the largest operating revenue and profit in H1 2024, while property investment recorded a negative fair value change - The Group manages its businesses by the nature of the business and geographical area, identifying three reportable segments: property development (Hong Kong/Mainland China), property investment, and other businesses[19](index=19&type=chunk) Segment Results and Assets (Six Months Ended June 30, 2024) | Segment | Operating Revenue (HKD thousand) | Reportable Segment Profit (HKD thousand) | | :--- | :--- | :--- | | Total Property Development | 1,940,947 | 497,394 | | - Hong Kong | 1,174,307 | 346,022 | | - Mainland China | 271,326 | 5,024 | | Property Investment | 147,555 | 118,469 | | Others | 347,759 | 27,879 | | Fair Value Change of Investment Properties | - | (189,846) | | Fair Value Change of Property Development Interests | - | 14,050 | Segment Assets (As of June 30, 2024) | Segment | Reportable Segment Assets (HKD thousand) | | :--- | :--- | | Total Property Development | 29,442,882 | | - Hong Kong | 15,483,649 | | - Mainland China | 13,959,233 | | Property Investment | 13,519,341 | | Others | 653,611 | [Profit Before Tax](index=15&type=section&id=Profit%20Before%20Tax) Profit before tax was influenced by fair value gains on other financial assets and finance costs, with an increase in interest on bank loans and related company loans in H1 2024, largely offset by amounts capitalized - Other net expenses primarily consisted of fair value gains on other financial assets of **HKD 669,000** (compared to impairment and fair value losses of **HKD 57,643,000** in the corresponding period of 2023)[28](index=28&type=chunk) Finance Costs (Six Months Ended June 30, 2024) | Metric | 2024 (HKD thousand) | 2023 (HKD thousand) | | :--- | :--- | :--- | | Interest on Bank Loans | 543,149 | 483,723 | | Interest on Loans from Related Companies | 73,904 | 45,362 | | Less: Amounts Capitalized | (531,913) | (434,051) | | Net Finance Costs | 85,140 | 95,034 | - Borrowing costs capitalized were calculated at an annual interest rate of **4.98% – 6.98%** (2023: **2.42% – 6.29%**)[29](index=29&type=chunk) Other Items (Six Months Ended June 30, 2024) | Metric | 2024 (HKD thousand) | 2023 (HKD thousand) | | :--- | :--- | :--- | | Depreciation and Amortization | 10,155 | 10,471 | | Interest Income | (36,425) | (74,346) | [Income Tax](index=16&type=section&id=Income%20Tax) Total income tax for H1 2024 was HKD 86.241 million, an increase from the prior year, mainly due to higher provision for Hong Kong profits tax, with mainland China land appreciation tax calculated at progressive rates Income Tax Components (Six Months Ended June 30, 2024) | Tax Category | 2024 (HKD thousand) | 2023 (HKD thousand) | | :--- | :--- | :--- | | Provision for Hong Kong Profits Tax | 77,775 | 53,605 | | Provision for Profits Tax Outside Hong Kong | 397 | (473) | | Land Appreciation Tax | 818 | 9,139 | | Deferred Tax | 7,251 | 15,132 | | **Total Income Tax** | **86,241** | **77,403** | - Hong Kong profits tax is calculated at **16.5%** of the estimated assessable profit[31](index=31&type=chunk) - Mainland China land appreciation tax is levied at progressive rates ranging from **30% to 60%**[32](index=32&type=chunk) [Earnings Per Share](index=17&type=section&id=Earnings%20Per%20Share) Basic earnings per share for H1 2024 decreased to HKD 0.10 from HKD 0.16 in the prior year, with no dilutive potential shares for the Company during the period Basic Earnings Per Share (Six Months Ended June 30, 2024) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company | HKD 113,453,000 | HKD 184,481,000 | | Weighted Average Number of Shares in Issue | 1,176,631,296 shares | 1,176,631,296 shares | | Basic Earnings Per Share | HKD 0.10 | HKD 0.16 | - There were no dilutive potential shares of the Company for the six months ended June 30, 2024 and 2023[34](index=34&type=chunk) [Dividends](index=17&type=section&id=Dividends) The interim dividend declared for H1 2024 was HKD 0.10 per share, a significant reduction from HKD 0.26 per share in the prior year Interim Dividends (Six Months Ended June 30, 2024) | Metric | 2024 (HKD thousand) | 2023 (HKD thousand) | | :--- | :--- | :--- | | Interim Dividend Declared After Period End Per Share | HKD 0.10 (130,621) | HKD 0.26 (305,924) | [Property Development Interests](index=17&type=section&id=Property%20Development%20Interests) Property development interests primarily represent the Group's co-investment agreements with Polytec Holdings for property development projects in Huizhou and Zhuhai, mainland China, with an expected recoverable amount of HKD 439 million within one year as of June 30, 2024 - Property development interests represent the Group's interests in several property development projects in Huizhou and Zhuhai, mainland China, under co-investment agreements with a related company, Polytec Holdings International Limited[35](index=35&type=chunk) Property Development Interests Receivable (As of June 30, 2024) | Metric | June 30, 2024 (HKD) | December 31, 2023 (HKD) | | :--- | :--- | :--- | | Property Development Interests Expected to be Recovered Within One Year | 439,153,000 | 427,589,000 | [Trade and Other Receivables / Loans](index=18&type=section&id=Trade%20and%20Other%20Receivables%20/%20Loans) As of June 30, 2024, total trade and other receivables/loans amounted to HKD 1.064 billion, with current amounts accounting for HKD 405 million, and the Group maintains specific credit policies and regular monitoring to mitigate credit risk Ageing Analysis of Trade and Other Receivables / Loans (As of June 30, 2024) | Ageing | June 30, 2024 (HKD thousand) | December 31, 2023 (HKD thousand) | | :--- | :--- | :--- | | Current | 405,039 | 444,648 | | Less than Three Months | 28,630 | 22,122 | | Three to Six Months | 3,617 | 3,587 | | Over Six Months | 17,231 | 17,255 | | Total Trade and Other Receivables / Loans | 454,517 | 487,612 | | Utilities and Other Deposits | 17,710 | 17,048 | | Prepaid Taxes | 86,065 | 83,966 | | Other Receivables and Prepayments | 505,858 | 487,459 | | **Total** | **1,064,150** | **1,076,085** | - The Group maintains specific credit policies and regularly prepares and closely monitors the ageing analysis of trade and other receivables/loans to minimize any credit risk associated with receivables and loans[37](index=37&type=chunk) [Trade and Other Payables](index=19&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2024, total trade and other payables amounted to HKD 4.690 billion, with contract liabilities (deposits received for property sales) accounting for HKD 2.178 billion, an increase from the end of 2023 Ageing Analysis of Trade and Other Payables (As of June 30, 2024) | Ageing | June 30, 2024 (HKD thousand) | December 31, 2023 (HKD thousand) | | :--- | :--- | :--- | | Not Yet Due or Current | 1,980,383 | 2,125,394 | | Less than Three Months | 489 | 107 | | Total Trade Payables | 1,980,872 | 2,125,501 | | Rental and Other Deposits | 78,106 | 78,543 | | Other Payables and Accrued Expenses | 452,683 | 778,061 | | Contract Liabilities – Deposits Received for Property Sales | 2,178,314 | 1,898,721 | | **Total** | **4,689,975** | **4,880,826** | [Financial Review](index=20&type=section&id=Financial%20Review) [Financial Resources and Bank Borrowings](index=20&type=section&id=Financial%20Resources%20and%20Bank%20Borrowings) As of June 30, 2024, the Group's total bank loans were HKD 19.348 billion, with net bank borrowings of HKD 18.639 billion, and the gearing ratio decreased to 104.4%, primarily due to the use of proceeds from the disposal of a 60% interest in a Shanghai property development project for debt repayment and over HKD 200 million in cash generated from the disposal of non-core assets, while project sales in Hong Kong and mainland China contributed significant cash inflows Bank Borrowings and Gearing Ratio (As of June 30, 2024) | Metric | June 30, 2024 (HKD) | December 31, 2023 (HKD) | | :--- | :--- | :--- | | Total Bank Loans | 19,348,000,000 | 20,897,000,000 | | Cash and Bank Balances | 709,000,000 | 1,080,599,000 | | Net Bank Borrowings | 18,639,000,000 | - | | Gearing Ratio | 104.4% | 111.5% | - The Group utilized the **HKD 1,391,957,000** proceeds from the disposal of a **60% equity interest** in a Shanghai property development project for repayment of the Group's borrowings and general working capital, strengthening its financial position and cash flow[39](index=39&type=chunk) - Since 2023, the Group has generated over **HKD 200,000,000** in cash from the disposal of commercial properties and car parking spaces in Hong Kong and mainland China[39](index=39&type=chunk) Project Sales Cash Inflow (During the Period) | Source | Cash Inflow (HKD) | | :--- | :--- | | Hong Kong Project Sales (mainly from Grand Mayfair) | Approximately 1,205,000,000 | | Mainland China Property Development Pre-sales and Sales (mainly from Jiangwan City (Wuxi)) | Approximately 351,000,000 | - The Group invested approximately **HKD 829,000,000** in construction costs during the period[41](index=41&type=chunk) - The Group's borrowings are all arranged on a floating interest rate basis, with RMB income and RMB borrowings generated from mainland China development projects serving as a natural hedge against RMB exchange rate risk[41](index=41&type=chunk) [Capital Commitments](index=21&type=section&id=Capital%20Commitments) As of June 30, 2024, the Group's capital commitments amounted to HKD 80 million, primarily for investment properties Capital Commitments (As of June 30, 2024) | Item | Amount (HKD) | | :--- | :--- | | Total Capital Commitments | 80,000,000 | | Primary Use | Investment Properties | [Pledged Assets](index=21&type=section&id=Pledged%20Assets) As of June 30, 2024, the Group had pledged HKD 26.857 billion in properties and HKD 14 million in deposits, primarily as security for bank facilities and performance guarantees Pledged Assets (As of June 30, 2024) | Asset Category | Amount (HKD) | | :--- | :--- | | Properties | 26,857,000,000 | | Deposits | 14,000,000 | | Primary Use | Security for bank facilities and performance guarantees | [Contingent Liabilities](index=21&type=section&id=Contingent%20Liabilities) As of June 30, 2024, the Group had provided guarantees of HKD 35 million to financial institutions for performance guarantees entered into by its subsidiaries Contingent Liabilities (As of June 30, 2024) | Item | Amount (HKD) | | :--- | :--- | | Guarantees for Subsidiary Performance | 35,000,000 | [Other Information](index=21&type=section&id=Other%20Information) [Review of Interim Financial Report](index=21&type=section&id=Review%20of%20Interim%20Financial%20Report) The Company's Audit Committee has reviewed the interim financial report, which was also reviewed by KPMG, the independent auditor, in accordance with Hong Kong Standard on Review Engagements 2410 - The Company's Audit Committee has reviewed the Group's unaudited interim financial report for the six months ended June 30, 2024[43](index=43&type=chunk) - The Group's independent auditor, KPMG, has reviewed the interim financial report in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[43](index=43&type=chunk) [Compliance with Corporate Governance Code](index=22&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) For the six months ended June 30, 2024, the Company complied with all code provisions set out in Part 2 of Appendix C1 to the Listing Rules, except for code provision C.2.1 (where the roles of Chairman and Chief Executive Officer are performed by the same individual) - The Company has complied with all code provisions set out in Part 2 of Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, save for code provision C.2.1[44](index=44&type=chunk) - Mr. Or Wai Sheun concurrently holds the roles of Chairman of the Board and Chief Executive Officer, responsible for the overall operations of the Group[44](index=44&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=22&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the six months ended June 30, 2024, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the six months ended June 30, 2024, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[45](index=45&type=chunk) [Closure of Register of Members](index=22&type=section&id=Closure%20of%20Register%20of%20Members) To qualify for the interim dividend, the Company will suspend its share transfer registration from December 16 to December 17, 2024, with all transfer documents to be submitted by 4:30 p.m. on December 13, 2024 - The Company will suspend its share transfer registration from Monday, December 16, 2024, to Tuesday, December 17, 2024 (both days inclusive)[45](index=45&type=chunk) - To qualify for the interim dividend, all transfer documents, together with the relevant share certificates, must be lodged with the Company's share registrar by 4:30 p.m. (Hong Kong time) on Friday, December 13, 2024[45](index=45&type=chunk) [Publication of Interim Report](index=22&type=section&id=Publication%20of%20Interim%20Report) The Company will publish its 2024 Interim Report, containing all required comprehensive information prepared in accordance with the Listing Rules, on the "HKEXnews" website and the Company's website by the end of September 2024, with printed copies sent to shareholders upon request - The Company will publish its 2024 Interim Report, containing all required comprehensive information prepared in accordance with the Listing Rules, on the "HKEXnews" website www.hkexnews.hk and the Company's website www.kdc.com.hk by the end of September 2024[46](index=46&type=chunk)

Financial Performance - For the year ended December 31, 2023, the attributable profit to shareholders was HKD 337 million, a decrease of 72.3% compared to HKD 1.215 billion in 2022[10] - The basic earnings per share for 2023 was HKD 0.49, down from HKD 0.94 in 2022, reflecting a decline of 48.2% in underlying profit to HKD 573 million from HKD 1.107 billion[10] - The Group's total revenue for 2023 was HKD 2.943 billion, a significant drop from HKD 4.582 billion in 2022[15] - The Group's operating profit for 2023 was HKD 623 million, a decrease of 65.1% from HKD 1.787 billion in 2022[15] - Total assets for the year 2023 were HKD 47.732 billion, a slight decrease from HKD 47.766 billion in 2022[16] - The company's total equity as of December 31, 2023, was HKD 17.768 billion, down from HKD 18.536 billion in 2022[16] - The total rental income from investment properties in Hong Kong decreased to HKD 296 million in 2023, down 1.7% from HKD 301 million in 2022[23] - The total interest and dividend income from financial investments fell to HKD 104 million in 2023, a decrease of 34.6% from HKD 159 million in 2022[24] Dividends - The proposed final dividend is HKD 0.57 per share, bringing the total dividend for 2023 to HKD 0.83 per share[10] - The board proposed a final dividend of HKD 0.57 per share for the year ended December 31, 2023, consistent with the previous year's cash dividend[19] - The company declared a final dividend of HKD 0.26 per share for the fiscal year 2023, maintaining the same level as in 2022[158] - The interim dividend for 2023 was also HKD 0.26 per share, consistent with the previous year[158] - The company aims to declare dividends twice a year, subject to financial performance[157] Land and Property Development - The Group's landbank amounted to approximately 3.3 million sq m of attributable gross floor area in Hong Kong and Mainland China as of December 31, 2023[4] - The property development land reserve in Hong Kong is 204,000 sq m, while the land reserve in Mainland China is approximately 3.078 million sq m[9] - The group sold over 870 residential units at the residential development project "Oceanview Garden" in Hong Kong, generating sales revenue of approximately HKD 1.2 billion[22] - The total pre-sale/sales amount for development projects in mainland China exceeded RMB 2.5 billion, with the group's attributable share being approximately RMB 2.1 billion[22] - The group has ongoing projects in mainland China with a total gross floor area of approximately 6,702,000 square meters, including significant developments in Shenyang and Tianjin[33] Market Outlook and Strategy - The group expects the residential market in Hong Kong to remain active and healthy following the removal of sales restrictions, with significant increases in transaction volumes observed in early March[27] - The group plans to actively sell remaining inventory in Hong Kong and mainland China, leveraging the recent market recovery[27] - The group is committed to enhancing its competitive position through property development, investment, and management in both Hong Kong and Mainland China[4] Financial Position and Debt - The capital debt ratio for 2023 was 111.53%, compared to 113.27% in 2022, indicating a slight improvement[16] - As of December 31, 2023, the total bank loans of the group amounted to HKD 20,897,000,000, a decrease from HKD 21,860,000,000 as of December 31, 2022[94] - The group's net bank borrowings as of December 31, 2023, were HKD 19,816,000,000 after accounting for cash and bank balances of HKD 1,081,000,000[94] Corporate Governance - The company has a strong focus on corporate governance, emphasizing high-quality board performance and accountability to shareholders[104] - The company has adhered to all provisions of the corporate governance code for the year ending December 31, 2023, except for specific recommendations regarding the separation of roles between the chairman and CEO[105] - The board of directors includes independent non-executive directors with extensive experience in banking, engineering, and finance, enhancing the company's governance structure[102] - The company has a commitment to regular reviews of its corporate governance practices to ensure long-term sustainable development[104] Risk Management - The group faces risks including economic recovery challenges post-pandemic and potential impacts from rising construction costs and competition in the property development sector[84] - The group is exposed to financial risks including interest rate, credit, liquidity, foreign currency, and other price risks, which are detailed in the financial statements[88] - The company is responsible for preparing financial statements that are free from material misstatement due to fraud or error, ensuring internal controls are in place[197] Environmental and Social Responsibility - The group has implemented comprehensive environmental management measures, achieving energy efficiency certifications for ten properties managed as of December 31, 2023[92] - The group has committed to high standards of environmental protection and continuous improvement in its environmental performance[92] - The group made charitable donations totaling HKD 647,000 during the year, an increase from HKD 261,000 in the previous year[170] Audit and Compliance - The consolidated financial statements for the year ended December 31, 2023, were audited and reflect the group's financial position accurately[188] - The audit report emphasizes the importance of identifying and assessing risks of material misstatement due to fraud or error in the consolidated financial statements[199] - The auditor's goal is to provide reasonable assurance that the financial statements are free from material misstatement, which is essential for stakeholders' economic decisions[198]

智通财经APP讯，九龙建业(00034)发布截至2023年12月31日止年度的全年业绩，该集团期内取得营业收 入29.43亿港元，同比减少35.77%;股东应占溢利3.37亿港元，同比减少72.25%;每股基本盈利0.29港元;拟 以代息股份方式派发末期股息每股0.57港元。 公告称，于中国香港，集团继续推售其于将军澳名为海茵庄园的全资拥有住宅发展项目余下之单位。于 2023年12月31日，海茵庄园累积售出超过870个住宅单位，销售收益约12亿港元于回顾年内确认入帐。 于中国大陆，截至2023年12月31日止年度，集团发展项目的预售╱销售总额逾人民币25亿元，其中集团 按其权益应占预售╱销售额约人民币21亿元。 ...

Financial Performance - The group's profit attributable to shareholders for the year ended December 31, 2023, was HKD 337 million, a decrease of 72.3% compared to HKD 1.215 billion in 2022[2]. - The basic earnings per share for 2023 was HKD 0.49, down from HKD 0.94 in 2022, reflecting a decline of 48.2% in the underlying profit to HKD 573 million from HKD 1.107 billion in the previous year[3]. - Total revenue for the year ended December 31, 2023, was HKD 2,942,765, a decrease of 35.7% compared to HKD 4,581,905 in 2022[18]. - Operating profit for 2023 was HKD 622,880, down 65.2% from HKD 1,787,348 in 2022[18]. - Profit before tax decreased to HKD 492,717, a decline of 70.1% from HKD 1,646,679 in the previous year[18]. - Net profit for the year was HKD 326,302, representing a 73.0% decrease from HKD 1,209,876 in 2022[18]. - Total comprehensive income for the year was HKD 208,876, compared to HKD 439,162 in 2022, reflecting a decline of 52.5%[20]. - The reported profit for the year 2023 was HKD 813,446,000, compared to HKD 1,605,355,000 in 2022, indicating a decrease of about 49.3%[28]. Dividends - The proposed final dividend is HKD 0.57 per share, with a total dividend for 2023 of HKD 0.83 per share[4]. - The company declared an interim dividend of 0.26 HKD per share for both 2023 and 2022, totaling 305,924,000 HKD[42]. Property Development - The group sold over 870 residential units at the residential development project "Oceanview Garden" in Tseung Kwan O, generating sales revenue of approximately HKD 1.2 billion during the year[8]. - The total pre-sale/sales amount for the group's development projects in mainland China exceeded RMB 2.5 billion, with the group's attributable share being approximately RMB 2.1 billion[8]. - The group is progressing with several major property projects, including the "High Street" project in Hong Kong, with a total floor area of approximately 4,700 square meters and a completion date expected in 2025/2026[10]. - The group expects to actively sell remaining units of the residential development project, Oceanview Garden, in Tseung Kwan O during the first half of 2024[15]. - Construction of the foundation for the mixed-use development project in Sai Ying Pun has been completed, with pre-sales expected to launch in the second half of the year[16]. - The structure of the first phase of the Polyda Guifu project in Shanxi has been completed, with pre-sales launched and full completion expected by the end of 2024[16]. Market Conditions - The geopolitical tensions and inflationary pressures have negatively impacted the Hong Kong residential property market, with prices dropping over 12% from the peak at the beginning of the year[6]. - In mainland China, GDP growth for 2023 was recorded at 5.2%, but the overall sentiment in the residential market remains cautious despite government measures to stabilize the market[7]. - The group anticipates that the residential market in Hong Kong will remain active following the removal of sales restrictions, allowing for increased sales of remaining inventory[16]. - The group will continue to accelerate project sales in mainland China to facilitate cash flow, despite a weak market[15]. Financial Position - Non-current assets as of December 31, 2023, totaled HKD 18,769,344, a slight decrease from HKD 19,795,875 in 2022[21]. - Current liabilities increased to HKD 9,433,686 from HKD 19,190,832 in the previous year, indicating a significant reduction[22]. - The company's total assets less current liabilities amounted to HKD 38,298,968, up from HKD 28,574,972 in 2022[22]. - The company's equity attributable to shareholders decreased to HKD 17,669,438 from HKD 18,425,585 in 2022[22]. - The total liabilities for the company increased to 4,880,826,000 HKD in 2023 from 3,692,787,000 HKD in 2022, marking an increase of approximately 32.2%[48]. - The capital-to-debt ratio was 111.5% as of December 31, 2023, down from 113.3% a year earlier[49]. Cash Flow and Investments - Cash and bank balances as of 2023 amounted to HKD 1,080,599,000, compared to HKD 36,569,000 in 2022, reflecting a significant increase[30]. - The group generated cash inflow of approximately HKD 1,330,000,000 from property sales in Hong Kong, primarily from the sale of units in the Ocean Park project[50]. - Cash inflow from various property developments in mainland China amounted to approximately HKD 2,095,000,000, mainly from pre-sales in Jiangwan City (Wuxi)[50]. - The group invested a total of HKD 1,817,000,000 in project development during the year[50]. - The group plans to sell 60% equity in Weian Limited for HKD 1,391,957,000 to improve financial conditions and cash flow[49]. - The group sold non-core assets, including commercial properties and parking spaces, generating approximately HKD 137,000,000 to reduce debt levels[49]. Employee and Operational Costs - Total employee costs for 2023 amounted to 621,279,000 HKD, down from 633,306,000 HKD in 2022, indicating a reduction of about 1.6%[36]. - The group employed 2,641 staff as of December 31, 2023, with total employee costs decreasing to HKD 621,000,000 from HKD 633,000,000 in the previous year[53]. Corporate Governance - The company proposes to adopt a new set of articles of association to replace the existing ones, aiming for compliance with applicable laws and regulations, and to provide flexibility for shareholder meetings[59]. - The company's 2024 Annual General Meeting is scheduled for June 5, 2024[61]. - Share transfer registration will be suspended from May 31, 2024, to June 5, 2024, to determine eligibility for attending the AGM and voting[62]. - A report for the year 2023 will be published by the end of April 2024 on the company's website and the Hong Kong Stock Exchange's website[63].

Financial Performance - For the six months ended June 30, 2023, the company's attributable profit increased to HKD 184 million, up 21.1% from HKD 152 million in the same period of 2022[13]. - The basic earnings per share for the first half of 2023 was HKD 0.24, compared to HKD 0.13 in 2022, representing a 84.6% increase[15]. - The company's basic profit, excluding revaluation changes of investment properties and fair value changes of property development interests, rose to HKD 288 million, a 93.3% increase from HKD 149 million in the same period of 2022[15]. - The group's operating revenue for the six months ended June 30, 2023, was HKD 1,275,963,000, representing a 76.5% increase from HKD 723,624,000 in the same period of 2022[30]. - The group recorded a net profit of HKD 183,594,000 for the period, compared to HKD 153,808,000 in the previous year, marking a 19.4% increase[32]. - Total revenue for the six months ended June 30, 2023, was HKD 1,275,963,000, compared to HKD 723,624,000 in the same period of 2022, representing a year-over-year increase of approximately 76.5%[43]. - Property sales revenue for the first half of 2023 was HKD 769,137,000, a substantial increase from HKD 161,278,000 in the first half of 2022[43]. - Rental income for the same period increased to HKD 1,053,503,000 from HKD 454,459,000, reflecting a growth of approximately 131.8% year-over-year[43]. Dividends and Shareholder Returns - The interim dividend for 2023 is set at HKD 0.26 per share, consistent with the dividend in 2022[15]. - The approved final dividend for the fiscal year is HKD 0.57 per share, consistent with the previous year[53]. - The company declared an interim dividend of HKD 0.26 per share, consistent with the dividend declared for the same period in 2022[52]. Property Development and Sales - As of June 30, 2023, the company's landbank amounted to approximately 3.4 million sq m in Hong Kong and Mainland China[3]. - The company has a property development land reserve of 204,000 sq m in Hong Kong and 3.195 million sq m in Mainland China[10]. - As of June 30, 2023, the group sold over 200 residential units in the Hong Kong project "Ocean Garden," generating sales revenue of approximately HKD 1.2 billion[17]. - In mainland China, the total pre-sale/sales amount for the group's development projects exceeded RMB 1.6 billion, with the group's attributable share amounting to approximately RMB 1.3 billion as of June 30, 2023[17]. - The planning for the third phase of the Jiangwan South Shore Garden residential project in Huizhou was approved in July 2023, with construction expected to commence within the year[23]. - The group has launched pre-sales for the third and fourth phases of the Jiangwan City project in Wuxi, with positive market response expected to complete by the end of 2023 and mid-2024 respectively[23]. Financial Position and Liabilities - The capital debt ratio as of June 30, 2023, was 123.8%, a slight improvement from 125.3% at the end of 2022, with expectations for gradual improvement as sales from projects in Hong Kong and mainland China are realized[26]. - The group has a total bank loan amount of HKD 21,097,000,000 as of June 30, 2023, down from HKD 21,860,000,000 at the end of 2022[26]. - The company’s bank loans increased to HKD 20,113,867 from HKD 14,488,973, a rise of 38.9%[33]. - Total liabilities increased significantly to HKD 26,188,644 from HKD 19,190,832, representing a rise of 36.5%[34]. Market Conditions and Outlook - The Hong Kong property market experienced a rebound in early 2023 but faced declining prices and transaction volumes due to rising interest rates[16]. - The group expects continued high interest rates in Hong Kong to negatively impact property sales in the second half of the year[23]. - The group plans to adopt a cautious approach to replenish land reserves and reduce borrowing in light of the weak property market conditions in Hong Kong and mainland China[24]. Cash Flow and Investments - For the six months ended June 30, 2023, the net cash generated from operating activities was HKD 465,301,000, a significant improvement from a net cash outflow of HKD 7,637,426,000 in the same period of 2022[39]. - The company reported a net cash outflow from financing activities of HKD 575,305,000 for the first half of 2023, compared to a net cash inflow of HKD 8,602,371,000 in the same period of 2022[39]. - The company has increased related party loans by HKD 431,426,000 in the first half of 2023, compared to HKD 145,875,000 in the same period of 2022[39]. Assets and Valuation - As of June 30, 2023, total non-current assets amounted to HKD 19,236,616, a decrease of 2.83% from HKD 19,795,875 as of December 31, 2022[33]. - The total assets as of June 30, 2023, amounted to HKD 47,141,192,000, compared to HKD 47,765,804,000 as of December 31, 2022[46]. - The fair value of property development interests was HKD 1,678,273,000, down from HKD 2,687,050,000 as of December 31, 2022, representing a decrease of approximately 37.6%[66]. Employee and Corporate Governance - The company employed 2,598 employees as of June 30, 2023, a decrease from 2,668 employees as of December 31, 2022[89]. - Total employee costs reduced to HKD 300 million for the six months ended June 30, 2023, down from HKD 333 million for the same period in 2022[89]. - The board of directors underwent changes, with Mr. David John Shaw resigning as an independent non-executive director after the annual general meeting on June 7, 2023[80].

Financial Performance - For the six months ended June 30, 2023, the company's unaudited profit attributable to shareholders increased to HKD 184 million, up 21.1% from HKD 152 million in the same period of 2022[2] - The basic profit attributable to shareholders, after excluding changes in fair value of investment properties and financial investments, rose to HKD 288 million, a 93.3% increase from HKD 149 million in the same period of 2022[3] - The basic interim earnings per share for 2023 was HKD 0.24, compared to HKD 0.13 in 2022[3] - Total revenue for the first half of 2023 reached HKD 1,275,963,000, a significant increase from HKD 723,624,000 in the same period of 2022, representing a growth of 76.5%[14] - Rental income from the Hong Kong investment property portfolio remained stable at HKD 148 million, with a slight increase of 3.4% from HKD 116 million in the same period of 2022[10] - Interest income from financial investments decreased to HKD 58 million, down 45.8% from HKD 107 million in the same period of 2022[11] - Profit before tax amounted to HKD 260,997,000, with share of profits from associates at HKD 26,121,000 and share of losses from joint ventures at HKD 16,519,000[22] - Reported segment profit was HKD 419,413,000, with property development in Hong Kong generating HKD 263,835,000[22] - Other businesses, including property management services and financial investment, generated revenue of HKD 205,220,000 and HKD 57,945,000 respectively[23] Dividends and Shareholder Returns - The interim dividend for 2023 was declared at HKD 0.26 per share, unchanged from 2022[4] - Basic earnings per share for the period were HKD 184,481,000, compared to HKD 152,208,000 for the same period last year[34] - The interim dividend declared was HKD 0.26 per share, consistent with the previous year[35] Property Development and Sales - In Hong Kong, over 200 residential units of the full ownership project "Ocean Garden" were sold, generating sales of approximately HKD 1.2 billion[6] - In mainland China, the total pre-sale/sales amount for the group's development projects exceeded RMB 1.6 billion, with the group's attributable share being approximately RMB 1.3 billion[6] - The company plans to continue selling remaining units of the residential development project "Ocean Garden" in Tseung Kwan O in the second half of the year[12] - Construction of the foundation for the mixed-use development project in Sai Ying Pun, in which the company holds a 60% stake, is currently underway, with pre-sales expected in the first half of next year[12] - The company anticipates that the residential development project "Jiangwan South Garden" in Huizhou will commence construction within the year following planning approval received in July 2023[12] - The first phase of the development project in Jiexiu, Shanxi, is expected to launch pre-sales between September and October 2023, with completion anticipated by the end of 2024[13] - The company has completed the foundation work for the first phase of the "Hengda Plaza" project in Zhuhai, with superstructure work expected to commence within the year and completion projected for 2025[13] Financial Position and Assets - Total non-current assets as of June 30, 2023, amounted to HKD 19,236,616, a decrease from HKD 19,795,875 as of December 31, 2022[17] - Current assets increased to HKD 27,904,576 from HKD 27,969,929, with inventory rising to HKD 26,101,145 from HKD 25,549,725[18] - Current liabilities surged to HKD 26,188,644 from HKD 19,190,832, primarily due to an increase in bank loans to HKD 20,113,867 from HKD 14,488,973[18] - The net asset value decreased to HKD 17,819,119 from HKD 18,535,699, reflecting a decline in total equity attributable to shareholders[18] - The company reported a significant increase in trade payables and other payables, which rose to HKD 5,024,392 from HKD 3,692,787[18] - The company’s cash and bank balances decreased to HKD 737,990 from HKD 864,590, indicating a liquidity contraction[17] - Total assets as of June 30, 2023, were HKD 47,765,804,000, with cash and bank balances amounting to HKD 864,590,000[28] Debt and Financing - As of June 30, 2023, the total bank loans of the group amounted to HKD 21,097,000,000, a decrease from HKD 21,860,000,000 as of December 31, 2022[39] - The group's net bank borrowings as of June 30, 2023, were HKD 20,359,000,000, after accounting for cash and bank balances of HKD 738,000,000[39] - The capital debt ratio as of June 30, 2023, was 123.8%, down from 125.3% as of December 31, 2022[39] - The company will adopt a cautious approach to replenish land reserves and aims to reduce overall borrowing in light of the weak property market conditions in Hong Kong and mainland China[13] Governance and Transparency - The company announced its mid-term performance results on August 18, 2023[46] - The board of directors includes executive and non-executive members, indicating a diverse governance structure[46] - The chairman of the company is Mr. Ko Wai Cheung, highlighting leadership continuity[46] - The announcement reflects the company's commitment to transparency and shareholder communication[46] - Specific financial metrics and performance data were not disclosed in the provided content[46] - Future outlook and strategic initiatives were not detailed in the announcement[46] - No information on new products, technologies, or market expansion was provided[46] - The document does not mention any mergers or acquisitions[46] - There is no indication of user data or performance guidance in the content[46] - Overall, the content lacks detailed financial figures and strategic insights[46]

Financial Performance - The Group's basic earnings attributable to shareholders increased by 72.4% to HKD 1.107 billion in 2022, compared to HKD 642 million in 2021[13]. - The Group's total revenue for 2022 was HKD 4.582 billion, a significant increase from HKD 2.050 billion in 2021[18]. - The net profit attributable to shareholders for the year ended December 31, 2022, was HKD 1.215 billion, down 45.0% from HKD 2.209 billion in 2021 due to a significant decrease in net fair value gains from investment properties in Hong Kong[13]. - The Group's operating profit for 2022 was HKD 1.787 billion, compared to HKD 2.397 billion in 2021[18]. - The Group's basic earnings per share for 2022 was HKD 0.94, an increase from HKD 0.55 in 2021[18]. - Total assets decreased from HKD 48.117 billion in 2021 to HKD 47.766 billion in 2022[19]. - The net asset value attributable to shareholders was HKD 18.426 billion in 2022, down from HKD 18.953 billion in 2021[19]. - The company proposed a final dividend for 2022 is HKD 0.57 per share, with a total annual dividend of HKD 0.83 per share[13]. Property Development - Kowloon Development Company Limited's attributable gross floor area landbank amounts to approximately 3.4 million sq m in Hong Kong and Mainland China as of December 31, 2022[5]. - The Group's property development projects in Mainland China include Jiangwan City (Shenyang) and Cuidi Bay (Shenyang)[11]. - The total sales revenue from the residential project "Oceanview Garden" in Hong Kong was approximately HKD 3 billion, with over 520 units sold by the end of 2022[25]. - The group owns a 100% stake in the Clearwater Bay Road project, which has a total floor area of approximately 201,000 square meters and is expected to be developed into a large shopping center and five high-end residential towers[41]. - The group is currently developing the residential project Jiangwan South Coast Garden in Huizhou, with a total floor area of approximately 520,000 square meters, of which 60% is owned by the group[53]. - The foundation works for the residential and commercial project in Shenyang are ongoing, with a total floor area of approximately 712,000 square meters[46]. - The group plans to launch pre-sales for the residential development project in Sai Kung, with approximately 1,000 unsold residential units expected to be sold in 2023[1]. - The group is conducting foundation works for the mixed-use development project in Sai Ying Pun, which is expected to launch pre-sales in Q3 2023[1]. Financial Investments - The Group's financial investments include fixed income and equity investments in Hong Kong and other recognized financial markets[11]. - Interest and dividend income from financial investments rose to HKD 159 million in 2022, a 60.6% increase from HKD 99 million in 2021[28]. - The group recorded cash inflow of approximately HKD 815,000,000 from pre-sales and sales of various properties in mainland China[95]. - The group invested approximately HKD 1,852,000,000 in project development in Hong Kong and mainland China during the year[95]. Risk Management - The group is facing risks related to property development, including local market conditions and overall economic environment, which may be adversely affected by COVID-19 and geopolitical tensions[87]. - The group has established a risk management and internal control system to continuously identify, monitor, and manage major risks and emerging risks[86]. - The group emphasizes the importance of attracting and retaining qualified employees, as key personnel shortages could impact business operations and future prospects[89]. - The group faces risks related to cybersecurity threats, which could lead to unauthorized access or damage to its computer systems and data[89]. - The group is exposed to financial investment risks, including default and liquidity risks, which may affect the market value of its investments[89]. Corporate Governance - The company has been adhering to the corporate governance code throughout the year ending December 31, 2022, except for the provision C.2.1, which suggests that the roles of chairman and CEO should be separate[104]. - The board emphasizes the importance of high-quality governance as a key factor for sustainable long-term success[103]. - The company has implemented various policies to ensure ethical conduct and responsibility among its directors, management, and employees[108]. - The board consists of experienced individuals with backgrounds in real estate development, finance, and law, enhancing the company's governance[101]. - The company has a management team with extensive experience in finance, accounting, and corporate planning, contributing to its strategic direction[102]. Sustainability and Social Responsibility - The group has committed to high standards of environmental protection, implementing measures to reduce community impact and improve sustainability performance since 2007[91]. - The group has established a waste recycling system and participates in various recycling programs, demonstrating efforts to promote sustainability awareness[91]. - The latest residential development project, "Hainz Garden," incorporates a "fully electric home" design and has achieved provisional bronze certification under the BEAM Plus New Buildings (Version 1.2)[91]. - The group has provided 20 housing units to underprivileged families as part of its support for the social housing program in 2022[91]. - The group has received multiple awards for its properties, including energy-saving and waste reduction certifications, highlighting its commitment to corporate social responsibility[91]. Audit and Compliance - The audit committee, along with independent auditors, has reviewed the consolidated financial statements for the year ended December 31, 2022[184]. - The consolidated financial statements have been audited by KPMG, and the auditor's report confirms that the financial statements present a true and fair view of the group's financial position[187]. - The company is responsible for preparing true and fair consolidated financial statements in accordance with Hong Kong Financial Reporting Standards and the Companies Ordinance[196]. - The auditor's goal is to obtain reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[197]. - The company must disclose any significant uncertainties related to its ability to continue as a going concern[198].

Financial Performance - The company's basic earnings attributable to shareholders for 2022 increased to HKD 11.07 billion, a 72.4% rise from HKD 6.42 billion in 2021[2]. - The basic earnings per share for 2022 were HKD 0.94, compared to HKD 0.55 in 2021[3]. - The net profit attributable to shareholders for the year ended December 31, 2022, was HKD 12.15 billion, a decrease of 45.0% from HKD 22.09 billion in 2021[3]. - The group's net profit for the year was HKD 1,209,876,000, a decrease from HKD 2,210,054,000 in 2021, reflecting a decline of 45.2%[16]. - The group's earnings per share for the year was HKD 1.03, down from HKD 1.88 in the previous year, indicating a decline of 45.2%[16]. - The company reported a pre-tax profit of HKD 1,646,679,000 for 2022, compared to HKD 2,335,266,000 in 2021, reflecting a decrease of approximately 29.5%[31]. - The company incurred financial costs of HKD 96,309,000 in 2022, up from HKD 41,825,000 in 2021, indicating a rise of approximately 130%[32]. - The company reported a significant decrease in other net expenses, which amounted to HKD 92,540,000 in 2022 compared to HKD 1,076,700,000 in 2021[31]. Revenue and Sales - The group's total revenue for the year ended December 31, 2022, was HKD 4,581,905,000, an increase from HKD 2,050,388,000 in 2021, representing a growth of 123.5%[16]. - The total sales revenue from the residential project "Ocean Garden" in Hong Kong was approximately HKD 3 billion, with over 520 units sold by December 31, 2022[6]. - The group recorded a total pre-sale/sales amount of approximately RMB 2 billion from development projects in mainland China for the year ended December 31, 2022[6]. - The group recorded cash inflows of approximately HKD 2,890,000,000 from pre-sales and sales of projects in Hong Kong during the year, mainly from the sale of the Ocean Garden project[42]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.57 per share, maintaining the same level as in 2021, with a total annual dividend of HKD 0.83 per share[4]. - The diluted earnings per share for the year ended December 31, 2022, was HKD 0.26 for the interim dividend, an increase from HKD 0.25 in 2021, with total dividends declared amounting to HKD 976,604,000 compared to HKD 964,838,000 in 2021[37]. Assets and Liabilities - Total non-current assets as of December 31, 2022, amounted to HKD 19,795,875, a decrease from HKD 20,164,146 in 2021, reflecting a decline of approximately 1.8%[19]. - Current assets totaled HKD 27,969,929, slightly up from HKD 27,953,080 in the previous year, indicating a marginal increase of 0.06%[20]. - Current liabilities increased significantly to HKD 19,190,832 from HKD 14,628,888, representing a rise of approximately 31.5%[20]. - The net asset value decreased to HKD 18,535,699 from HKD 19,074,434, a decline of about 2.8% year-over-year[20]. - The total assets as of December 31, 2022, amounted to HKD 47,765,804,000, slightly down from HKD 48,117,226,000 in 2021[27]. - The company's total liabilities increased to HKD 10,039,273 from HKD 14,413,904, indicating a decrease of approximately 30.5%[20]. Property Development and Projects - The company acquired 70% equity interest in a property development project in Zhuhai, China, enhancing its land reserve[7]. - The group is actively developing several major property projects in various cities, with completion dates ranging from 2023 to 2028[9]. - The group plans to launch pre-sales for the residential development project in Tseung Kwan O, which has approximately 1,000 unsold units, in 2023[14]. - The group expects to complete the foundation works for the first phase of the Hengda Plaza project in Zhuhai in the first half of 2023, with superstructure works commencing in the second half of the year[15]. - The group has a 49% stake in the Tianjin City Square project, with the office building of Phase 3A expected to be completed in 2023 and Phase 3B in 2025[11]. - The group is progressing with the foundation works for the Jiangwan City Phase 5 project in Shenyang and expects to commence construction for the Jiangwan South Garden Phase 3 residential project in Huizhou within the year[14]. - The group invested approximately HKD 1,852,000,000 in project development during the year, focusing on both Hong Kong and mainland China projects[42]. Market Conditions - The Hong Kong residential property prices fell over 15% in 2022, ending a 13-year upward trend, while transaction volumes also decreased[5]. - The group anticipates that the economic recovery in Hong Kong and mainland China will positively impact the real estate market, with a GDP growth target of around 5% set for 2023[14]. Human Resources - The total number of employees decreased to 2,668 as of December 31, 2022, from 2,854 in the previous year, with total employee costs rising to HKD 633 million, up from HKD 623 million in 2021[45]. - The group emphasizes the importance of human resources quality in maintaining competitive advantages and has implemented various training programs to enhance employee skills[45]. Corporate Governance - The audit committee reviewed the consolidated financial statements for the year ended December 31, 2022, with no discrepancies found between the preliminary financial figures and the final report[46][47]. - The company has complied with all corporate governance codes except for the specific provision C.2.1 regarding the dual role of the chairman and CEO[48][49]. - No purchase, sale, or redemption of the company's listed securities occurred during the year ended December 31, 2022[50]. - The 2023 Annual General Meeting is scheduled for June 7, 2023, with a notice to be published in due course[50]. - The company will suspend share transfer registration from June 2, 2023, to June 7, 2023, to determine shareholder eligibility for the AGM[51]. - A report for the year 2022 will be published on the company's website and sent to shareholders by the end of April 2023[53].

Financial Performance - The Group's attributable profit for the six months ended June 30, 2022, decreased to HKD 152 million, down 75% from HKD 619 million in the same period of 2021[9]. - The basic earnings per share for the first half of 2022 was HKD 0.13, compared to HKD 0.53 in the same period of 2021[11]. - The Group's underlying profit, after excluding revaluation changes and fair value changes, fell to HKD 149 million, a decrease of 52% from HKD 312 million in the previous year[11]. - The operating revenue for the six months ended June 30, 2022, was HKD 723,624,000, down from HKD 995,623,000 in the same period of 2021[26]. - The net profit for the period was HKD 153,808,000, a decrease from HKD 622,351,000 in the previous year[28]. - The total revenue for the six months ended June 30, 2022, was HKD 723,624,000, a decrease from HKD 995,623,000 for the same period in 2021, representing a decline of approximately 27.3%[40]. - Property development revenue for the six months ended June 30, 2022, was HKD 161,278,000, compared to HKD 266,574,000 in 2021, indicating a decrease of about 39.6%[40]. - Rental income for the same period was HKD 120,831,000, down from HKD 151,170,000 in 2021, reflecting a decline of approximately 20.1%[40]. - The reported loss from property development was HKD 35,915,000 for the six months ended June 30, 2022, compared to a profit of HKD 173,082,000 in the previous year[41]. Dividends and Shareholder Returns - The interim dividend for 2022 was declared at HKD 0.26 per share, slightly up from HKD 0.25 per share in 2021[11]. - The company approved a dividend of HKD (294,158) thousand for the current year, reflecting a decrease from the previous year's dividend of HKD (658,914) thousand[34]. Assets and Liabilities - Total assets as of June 30, 2022, were HKD 28,748,562,000, an increase from HKD 27,953,080,000 as of December 31, 2021[29]. - The company’s total liabilities as of June 30, 2022, were HKD 12,051,010 thousand, down from HKD 13,460,816 thousand as of December 31, 2021, representing a decrease of about 10.5%[34]. - The total assets as of June 30, 2022, were HKD 12,107,316 thousand, compared to HKD 14,413,904 thousand as of December 31, 2021, showing a decrease of approximately 16.0%[34]. - The company reported a cash and bank balance of HKD 1,206,927,000 as of June 30, 2022[43]. - The company reported a significant increase in the fair value of property development rights, reaching HKD 1,872,714,000 as of June 30, 2022, compared to HKD 1,870,030,000 as of December 31, 2021[66]. Development Projects and Landbank - The landbank amounted to approximately 3.5 million sq m of attributable gross floor area in Hong Kong and Mainland China as of June 30, 2022[3]. - The Group's property development land reserve in Hong Kong is 252,000 sq m, while in Mainland China, it is 3,405,000 sq m[8]. - The group achieved over 500 pre-sold units in the Tseung Kwan O Oceanview project, generating a cumulative pre-sale amount exceeding HKD 3.3 billion as of June 30, 2022[14]. - In mainland China, the group's attributable pre-sale/sales total exceeded RMB 752 million (approximately HKD 879 million) for the six months ending June 30, 2022[14]. - The group completed the acquisition of 70% equity in a property development project in Zhuhai for a total consideration of HKD 816.6 million, enhancing its land reserves[15]. - The group is progressing with the demolition works for the High Street project in Sai Ying Pun, with foundation works expected to commence in Q4 2022 and pre-sales anticipated in 2023[18]. - The group’s development projects in Shenyang and Wuxi are expected to generate revenue in 2023 and 2024, respectively, contributing positively to the group's performance[19]. Financial Position and Debt - As of June 30, 2022, the total bank loans amounted to HKD 23,044,000,000, an increase from HKD 14,702,000,000 as of December 31, 2021[21]. - The capital debt ratio rose significantly to 128.5% as of June 30, 2022, compared to 78.4% on December 31, 2021, primarily due to a land premium payment of HKD 9,658,000,000[21]. - The company reported a net cash inflow from financing activities of HKD 8,602,371 thousand for the six months ended June 30, 2022, compared to HKD 2,639,227 thousand for the same period in 2021[35]. - The company experienced a net cash outflow from investing activities of HKD (837,462) thousand for the six months ended June 30, 2022[35]. - Bank loan interest increased to HKD 160,056,000 for the six months ended June 30, 2022, from HKD 112,007,000 in 2021[48]. Market Conditions and Economic Impact - The overall economic growth in Mainland China was negatively impacted by intermittent lockdowns due to the zero-COVID policy[13]. - The tightening policies implemented in the second half of 2021 led to a decline in transaction volume and prices in the real estate market[13]. - The group anticipates that the real estate market in Hong Kong may be affected by rising interest rates, but recent large new development projects have received strong market responses[18]. Employee and Corporate Governance - The total employee count as of June 30, 2022, was 2,700, a decrease from 2,854 employees as of December 31, 2021[90]. - Total employee costs increased to HKD 333 million as of June 30, 2022, up from HKD 298 million as of June 30, 2021[90]. - The company aims to enhance employee skills through various training programs to adapt to changing economic conditions[90]. - The company has established a recreational committee to organize activities for employees to boost team spirit and communication[90]. Compliance and Audit - The independent auditor, KPMG, reviewed the interim financial report for the six months ending June 30, 2022[92]. - The company complied with all relevant provisions of the Hong Kong Stock Exchange Listing Rules, except for a deviation regarding the roles of the Chairman and CEO[79].