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].

Financial Performance - The company's attributable net profit for the six months ended June 30, 2021, increased to HKD 619 million, up 7.7% from HKD 575 million in the same period of 2020[15]. - The basic net profit attributable to shareholders, excluding the revaluation of investment properties and fair value changes, significantly decreased to HKD 312 million, a 69.1% drop from HKD 1.009 billion in 2020[17]. - The basic interim earnings per share for 2021 was HKD 0.27, compared to HKD 0.86 in 2020[15]. - The interim dividend for 2021 was declared at HKD 0.25 per share, slightly up from HKD 0.24 per share in 2020[17]. - Operating revenue for the six months ended June 30, 2021, was HKD 995,623,000, a decrease from HKD 3,439,565,000 in the same period of 2020[34]. - The operating profit for the period was HKD 716,855,000, compared to HKD 778,297,000 in the previous year[34]. - Profit before tax was HKD 679,888,000, down from HKD 711,984,000 year-on-year[34]. - The profit attributable to equity holders of the company was HKD 619,289,000, an increase from HKD 575,369,000 in the prior year[35]. - Basic and diluted earnings per share from continuing operations were HKD 0.53, up from HKD 0.45 in the previous year[35]. - The company reported a profit of HKD 622,351,000 for the six months ended June 30, 2021, compared to HKD 598,674,000 for the same period in 2020, representing an increase of approximately 3.1%[37]. - Total comprehensive income for the period was HKD 711,737,000, up from HKD 429,218,000 in the previous year, indicating a significant increase of approximately 65.8%[37]. Assets and Liabilities - Non-current assets increased to HKD 17,782,750,000 as of June 30, 2021, from HKD 17,114,126,000 at the end of 2020, reflecting a growth of about 3.9%[38]. - Current assets rose to HKD 19,379,678,000, compared to HKD 16,990,351,000 at the end of 2020, marking an increase of approximately 14.1%[38]. - Cash and bank balances significantly increased to HKD 2,427,299,000 from HKD 1,133,841,000, representing a growth of about 114.1%[38]. - The company's total liabilities decreased slightly to HKD 9,047,421,000 from HKD 9,164,045,000, a reduction of approximately 1.3%[39]. - The net asset value increased to HKD 17,641,016,000 as of June 30, 2021, compared to HKD 17,588,193,000 at the end of 2020, showing a marginal increase of about 0.3%[40]. - The company’s equity attributable to shareholders rose to HKD 17,518,744,000 from HKD 17,469,727,000, reflecting an increase of approximately 0.3%[40]. - The company reported a significant increase in inventory to HKD 15,816,868,000 from HKD 15,040,616,000, which is an increase of about 5.1%[38]. Cash Flow and Financing - For the six months ended June 30, 2021, the net cash used in operating activities was HKD (939,130,000), compared to HKD 631,807,000 in the same period of 2020, indicating a significant decrease in cash flow from operations[45]. - Total financing cash inflow for the period was HKD 2,639,227,000, a substantial increase from the cash outflow of HKD (1,338,752,000) in the previous year[45]. - Cash and cash equivalents increased by HKD 1,282,974,000, compared to a decrease of HKD (1,246,239,000) in the same period last year[45]. - As of June 30, 2021, the total bank loans amounted to HKD 14,282,000,000, an increase from HKD 11,875,000,000 as of December 31, 2020[25]. - The net bank borrowings stood at HKD 11,855,000,000 after accounting for cash and bank balances of HKD 2,427,000,000[25]. - The capital debt ratio increased to 75.5% as of June 30, 2021, compared to 65.5% as of December 31, 2020, with expectations of improvement post-sale confirmation of the Tseung Kwan O project in 2022[25]. Property Development and Investment - The group has a land bank of approximately 3.6 million sq m in Hong Kong and Mainland China as of June 30, 2021[3]. - The development land reserve for major projects includes 3,363,000 sq m across various locations, including Yangpu in Shanghai and several projects in Shenyang and Huizhou[13]. - The company is engaged in financial investments in recognized financial markets, focusing on fixed income and equity investments[13]. - The group manages properties totaling 1,179,000 sq m[11]. - The flagship investment property is the Creative Center, with an investment land reserve of 55,000 sq m[11]. - The company has committed to enhancing its competitive position through strategic property development and investment activities[3]. - Total rental income from the Hong Kong investment property portfolio increased to HKD 151 million in the first half of 2021, up 8.6% from HKD 139 million in the same period of 2020[22]. - Net income from financial investment business rose to HKD 34.2 million in the first half of 2021, a 46.8% increase from HKD 23.3 million in the same period of 2020[22]. - The group plans to launch a residential development project in Tseung Kwan O with 1,556 units for pre-sale by the end of 2021 or early 2022[23]. - The pre-sale of the second phase of Jiangwan South Shore Garden in Huizhou is nearly sold out, with remaining units expected to be completed and delivered by the end of 2021[23]. - The third phase of the Cui Di Wan project in Shenyang is also seeing strong pre-sale responses, with completion and delivery expected by the end of 2021[23]. - The group is actively increasing land reserves to ensure orderly and sustainable business expansion[23]. - The group has ongoing construction for the fourth phase of Jiangwan City in Wuxi, with some residential units expected to be launched for pre-sale in Q4 2021[23]. - The group’s project in Yangpu, Shanghai, has completed relocation and demolition, with overall planning and design currently underway[23]. - The group anticipates satisfactory profit growth in 2022, driven by the completion of the Tseung Kwan O development project[23]. Corporate Governance and Compliance - The company has complied with all provisions of the corporate governance code except for A.2.1, where the chairman also serves as the CEO[92]. - The board of directors' salaries were adjusted effective July 1, 2021, with Mr. Ko Pei Kwan's salary increasing from HKD 97,600 to HKD 101,000[94]. - The company has established written guidelines for employees regarding securities trading during prohibited periods[92]. - The independent auditor has reviewed the interim financial report for the six months ended June 30, 2021[103]. - The company has not disclosed any information under Listing Rule 13.21 for the six months ended June 30, 2021[95]. - The company will suspend share transfer registration from November 15 to November 16, 2021, for the distribution of interim dividends[102]. Future Outlook and Strategic Initiatives - The company reported a revenue increase of 15% year-over-year, reaching $1.2 billion in Q3 2023[105]. - User data showed a growth of 25% in active users, totaling 5 million by the end of the quarter[105]. - The company provided a forward guidance of 10% revenue growth for Q4 2023, projecting revenues of approximately $1.32 billion[105]. - New product launches contributed to a 30% increase in sales, with the latest product line accounting for $300 million in revenue[105]. - The company is investing $50 million in R&D for new technologies aimed at enhancing user experience[105]. - Market expansion efforts have led to a 20% increase in market share in the Asia-Pacific region[105]. - The company completed a strategic acquisition of a tech startup for $200 million to bolster its product offerings[105]. - A new marketing strategy is expected to drive a 15% increase in customer engagement over the next quarter[105]. - The company reported a gross margin of 40%, up from 35% in the previous quarter[105]. - Operating expenses were reduced by 5%, totaling $150 million, contributing to improved profitability[105].

Financial Performance - The net profit attributable to shareholders decreased by 67.3% to HKD 801 million in 2020, compared to HKD 2.45 billion in 2019[11]. - The basic net profit for 2020 was HKD 1.299 billion, a decrease of 50.0% from HKD 2.6 billion in 2019[12]. - The total revenue for the year 2020 was HKD 5,012 million, a decrease from HKD 11,624 million in 2019, representing a decline of approximately 56.9%[16]. - Shareholders' profit attributable to the company was HKD 801 million in 2020, down from HKD 2,450 million in 2019, reflecting a decrease of about 67.3%[16]. - The basic earnings per share for 2020 was HKD 0.68, compared to HKD 2.08 in 2019, indicating a decline of approximately 67.3%[16]. - The total comprehensive income for the year was HKD 1,296,884,000, compared to HKD 2,465,156,000 in 2019, a decrease of about 47.5%[191]. - The company reported a profit of HKD 800,868,000 for the year 2020, compared to HKD 2,449,733,000 in 2019, a decrease of about 67.3%[191]. - Operating profit for 2020 was HKD 943,198,000, down 65.1% from HKD 2,705,740,000 in 2019[183]. Dividends - The proposed final cash dividend per share is HKD 0.56, with a total annual cash dividend of HKD 0.80 per share for 2020[12]. - The company declared a cash dividend of HKD 0.80 per share for 2020, compared to HKD 0.78 per share in 2019, representing an increase of 2.6%[16]. - The company declared a dividend of HKD 282,392,000 for the year 2020, down from HKD 588,316,000 in 2019, a reduction of approximately 52%[191]. - The company issued a special interim dividend in 2020, distributing 2.67 shares of Polydata Asset Holdings for every share held[145]. Assets and Liabilities - The total assets of the company were HKD 34,104 million in 2020, down from HKD 52,132 million in 2019, reflecting a decrease of about 34.6%[17]. - The net asset value per share decreased to HKD 14.85 in 2020 from HKD 23.00 in 2019, a decline of approximately 35.8%[17]. - Total non-current assets decreased from HKD 30,527,043,000 in 2019 to HKD 17,114,126,000 in 2020, a decline of approximately 44%[186]. - Current assets decreased from HKD 21,604,549,000 in 2019 to HKD 16,990,351,000 in 2020, representing a decline of approximately 21.5%[186]. - Total liabilities decreased from HKD 14,025,817,000 in 2019 to HKD 7,352,239,000 in 2020, a decrease of about 47.6%[187]. - Net asset value decreased from HKD 31,321,348,000 in 2019 to HKD 17,588,193,000 in 2020, a decline of approximately 43.7%[187]. Land Bank and Development Projects - The attributable gross floor area of the landbank in Hong Kong and Mainland China amounts to approximately 3.7 million sq m as of December 31, 2020[3]. - The Group has ongoing projects in Shenyang, Huizhou, Foshan, and Wuxi, among others, with a total development land reserve of 3.406 million sq m in Mainland China[10]. - The total land bank available for development as of December 31, 2020, was approximately 3.7 million square meters[33]. - The total area managed by the group as of December 31, 2020, was approximately 1,475,000 square meters, down from 1,632,000 square meters in 2019[83]. Investment Properties - The Group's investment properties and property development projects experienced a decline in revaluation gains due to fewer billable development projects during the year[11]. - The total rental income from the Hong Kong investment property portfolio decreased to HKD 293 million in 2020, down 17.9% from HKD 357 million in 2019[24]. - The fair value of developed investment properties and properties under development was assessed based on independent valuations amounting to HKD 1,811,800,000[179]. - The net revaluation gain recognized in the consolidated income statement for the year ended December 31, 2020, was HKD 31,700,000[179]. Corporate Governance - The company has adhered to all provisions of the corporate governance code, except for the separation of the roles of chairman and CEO[102]. - The company emphasizes the importance of good corporate governance as a key factor for sustainable long-term success[101]. - The board of directors consists of 10 members, with 40% being executive directors and over one-third being independent non-executive directors[105]. - The company has a commitment to transparency and accountability to its shareholders[101]. Environmental and Social Responsibility - The company has committed to high standards of environmental protection and is developing environmental performance goals[89]. - The group has established a waste recycling system and is promoting sustainable development awareness among employees[88]. - The company has taken multiple measures to safeguard the health of stakeholders, including providing personal protective equipment during the COVID-19 pandemic[92]. - The group has conducted annual surveys to gauge stakeholder views on significant environmental and social issues[90]. Financial Management - The company has sufficient financial resources to meet its obligations and future funding needs through existing credit facilities and recurring income from investment properties[93]. - The company aims to declare dividends twice a year, subject to financial performance, with no preset dividend payout ratio[143]. - The company has implemented a risk management and internal control system, regularly reviewing compliance with legal and regulatory requirements[116]. - The company confirmed the responsibility for maintaining proper accounting records and preparing financial statements that fairly reflect the group's financial position and performance for the fiscal year[136]. Employee and Workforce - The total number of employees decreased to 2,906 as of December 31, 2020, from 3,062 in 2019, with 2,782 employees in Hong Kong and 124 in mainland China[92]. - Employee costs increased to HKD 670 million in 2020, compared to HKD 410 million in 2019[92]. - The company has a comprehensive human capital strategy to ensure competitive compensation and development opportunities for employees[92]. Risks and Challenges - The group faces risks related to property development, including market conditions, construction costs, and regulatory changes[85]. - The group faced risks related to fluctuations in the RMB exchange rate for investments in mainland China projects[93]. - The company has implemented a risk management and internal control system based on the "three lines of defense" model to manage operational risks effectively[134].

Financial Performance - For the six months ended June 30, 2020, the company's attributable net profit significantly decreased to HKD 575 million, down 68.9% from HKD 1.851 billion in the same period of 2019[11]. - After excluding the revaluation changes of investment properties and fair value changes of property development projects, the company's underlying net profit for the first half of 2020 was HKD 1.009 billion, a decrease of 27.4% from HKD 1.390 billion in 2019[11]. - The basic earnings per share for the interim period in 2020 was HKD 0.86, compared to HKD 1.18 in 2019[12]. - The company's unaudited net profit attributable to shareholders for the six months ended June 30, 2020, significantly decreased to HKD 575 million, down 68.9% from HKD 1.851 billion in the same period of 2019[14]. - The basic earnings per share for the first half of 2020 was HKD 0.49, compared to HKD 1.57 in the same period of 2019[14]. - The total comprehensive income for the period was HKD 429,218,000, compared to HKD 2,028,620,000 in the previous year[38]. - The net profit for the period was HKD 598,674,000, a decrease from HKD 2,060,166,000 in the previous year[36]. - Total revenue for the six months ended June 30, 2020, was HKD 3,730,856,000, down from HKD 5,664,767,000 in the same period of 2019, indicating a decline of approximately 34.2%[51]. Dividends and Shareholder Returns - The interim cash dividend per share for 2020 was HKD 0.24, unchanged from 2019[12]. - The company announced a special interim dividend in the form of shares, with eligible shareholders entitled to receive 2.67 shares of Polytec Asset Holdings for every share of the company held[12]. - The board approved the issuance of dividends amounting to HKD 635,381 for the period[44]. - The company declared an interim dividend of HKD 0.24 per share, consistent with the previous year, amounting to HKD 282,392,000[66]. Property Development and Sales - As of June 30, 2020, the total sales revenue recognized from the residential project "63 Pokfulam" in Hong Kong was approximately HKD 2.4 billion, with over 95% of the units sold[18]. - The major development project at 63 Pokfulam in Hong Kong has sold over 95% of its residential units, with remaining units to be launched in an orderly manner[28]. - The total pre-sale/sales amount attributable to the company in mainland China for the six months ended June 30, 2020, was approximately RMB 856 million (approximately HKD 937 million)[18]. - The foundation work for the fourth phase of Jiangwan City in Wuxi is underway, with pre-sales expected to launch in the first half of next year[28]. - The third phase of Cui Di Wan in Shenyang is expected to launch pre-sales in the fourth quarter of this year[28]. Financial Position and Liabilities - As of June 30, 2020, the total bank loans amounted to HKD 12,962,000,000, an increase from HKD 10,960,000,000 as of December 31, 2019[31]. - The net bank borrowings were HKD 10,935,000,000 after accounting for cash and bank balances of HKD 2,027,000,000[31]. - The capital debt ratio was 42.5% as of June 30, 2020, compared to 41.3% as of December 31, 2019[31]. - Total liabilities decreased to HKD 6,294,547 from HKD 6,784,427, indicating improved financial stability[42]. - The company's net asset value as of June 30, 2020, was HKD 31,034,438, down from HKD 31,321,348 at the end of 2019[42]. Market Conditions and Strategic Focus - The real estate market in Hong Kong remains uncertain due to the ongoing impact of the COVID-19 pandemic, while recovery is faster in mainland China and stabilizing in Macau[17]. - The company plans to focus on its core real estate and related businesses following the physical distribution of its shares in Polydata Assets[29]. - The company plans to continue focusing on property development and investment, despite the current market challenges[50]. - The company anticipates continued market expansion and product development initiatives in the upcoming quarters, aiming to enhance overall performance[58]. Operational Performance - The group recorded cash inflow of approximately HKD 1,356,000,000 from sales and pre-sales of projects in Hong Kong during the period[31]. - The group invested approximately HKD 671,000,000 in project development during the period[31]. - The group incurred a loss of HKD 331,022,000 from changes in the fair value of investment properties[36]. - The company reported a significant decline in property development revenue, with total sales dropping to HKD 2,933,754,000 from HKD 5,130,583,000 year-over-year[51]. Employee and Governance - The total number of employees increased to 3,185, up from 3,062 as of December 31, 2019, reflecting business growth[109]. - Total employee costs rose to HKD 328 million for the period, compared to HKD 125 million as of June 30, 2019, due to salary adjustments and increased headcount[109]. - The group confirmed compliance with all provisions of the Corporate Governance Code, except for the provision regarding the dual role of the Chairman and CEO[97]. - The company emphasizes the importance of human resources quality in maintaining competitive advantages and conducts various training programs for employees[109]. Oil Business and Impairment - The oil business recorded a post-tax loss of HKD 76.4 million, significantly higher than the loss of HKD 11.3 million in the same period last year[26]. - The company plans to cease its oil business in Kazakhstan due to significant losses and has fully written off the book value of its oil assets[28]. - The impairment loss for oil production assets was HKD 54,214,000 for the six months ended June 30, 2020, compared to HKD 210,731,000 for the same period in 2019[71]. - The estimated future oil prices as of June 30, 2020, ranged from USD 39.02 to USD 71.47 per barrel, down from USD 61.79 to USD 74.01 per barrel as of December 31, 2019[71].

ANNUAL REPORT 2019 年報 Stock Code 股份代號: 34 Kowloon Development Company Limited 九龍建業有限公司 Kowloon Development Company Limited (Stock Code: 34) has been engaged in property investment and investment holding with the operation of its business mainly in Hong Kong since its establishment. It has substantially broadened the areas of its business activity since the Polytec group gained the control of it in 2002. The Group is principally engaged in investment holding, property development, property investment and pro ...

Financial Performance - The company's attributable net profit for the six months ended June 30, 2019, surged to HKD 18.51 billion, a 74.8% increase from HKD 10.59 billion in the same period of 2018[12]. - The basic net profit attributable to shareholders, excluding revaluation gains from investment properties and fair value gains from property development projects, rose to HKD 13.90 billion, up 215% from HKD 4.41 billion in 2018[14]. - The basic earnings per share for 2019 was HKD 1.57, compared to HKD 0.90 in 2018[14]. - The interim dividend for 2019 was declared at HKD 0.24 per share, an increase from HKD 0.22 per share in 2018[14]. - The company reported a revenue of HKD 5,664,767,000 for the six months ended June 30, 2019, compared to HKD 705,627,000 for the same period in 2018, representing a significant increase[34]. - Operating profit for the period was HKD 2,436,789,000, up from HKD 1,037,465,000 in the previous year, indicating a growth of approximately 134%[34]. - Net profit attributable to equity holders of the company was HKD 2,060,166,000, compared to HKD 1,232,961,000 in the prior year, reflecting an increase of about 67%[36]. - Total comprehensive income for the period was HKD 2,028,620,000, compared to HKD 1,163,989,000 in the previous year, showing a growth of around 74%[36]. - The reported profit for the same period was HKD 2,265,336,000, up from HKD 660,932,000 in 2018, reflecting a substantial growth in profitability[57]. Property Development and Investment - The company is engaged in property development and investment across Hong Kong, Mainland China, and Macau, with a focus on enhancing its competitive position[11]. - The company sold approximately 97% of residential units in its wholly-owned development project, enhancing revenue recognition[12]. - The group has significant property development projects in both Hong Kong and Mainland China, including major developments in Shenyang and Foshan[11]. - In Hong Kong, the group sold over 80% of residential units at the Lei Yue Mun project, achieving a cumulative pre-sale amount exceeding HKD 3 billion by the end of June 2019[16]. - The group confirmed revenue recognition from the Hung Hom Coastal East project in Hong Kong, with over 97% of residential units sold, contributing to a more than 200% increase in basic profit compared to the same period in 2018[25]. - The group expects to recognize sales from the fully owned development project, Lei Yue Mun Seaview Bay, with over 80% of residential units sold and a total pre-sale amount exceeding HKD 3 billion[26]. - The group is involved in various property development projects in mainland China, with significant areas under development including Jiangwan City in Shenyang, which has a total floor area of approximately 712,000 square meters[18]. Rental Income - The total rental income from the Hong Kong property investment portfolio was HKD 179 million in the first half of 2019, representing a 1.7% increase compared to the same period in 2018[20]. - The group recorded a slight decrease in total rental income from Macau properties to HKD 29.3 million, with the main contribution from the Macau Square, which generated HKD 27.1 million in rental income[21]. - The rental income for the six months ended June 30, 2019, was HKD 220,000,000, compared to HKD 180,000,000 in the same period of 2018, indicating growth in rental revenue[50]. - The total rental income for the six months ended June 30, 2019, was HKD 178,875,000, slightly up from HKD 175,815,000 in 2018, indicating a 1.2% growth[67]. Financial Position - The total bank loans as of June 30, 2019, amounted to HKD 11,895,000,000, down from HKD 15,281,000,000 as of December 31, 2018, with a net bank borrowing of HKD 10,797,000,000[29]. - The capital debt ratio as of June 30, 2019, was 51.9%, a decrease from 66.2% as of December 31, 2018[29]. - The company’s total assets decreased slightly to HKD 43,532,155,000 from HKD 43,303,801,000 as of December 31, 2018[38]. - The company’s total assets as of June 30, 2019, were HKD 31,155,846, an increase from HKD 29,825,374 as of December 31, 2018[40]. - The company’s inventory decreased to HKD 17,325,563,000 from HKD 20,015,325,000, indicating a reduction of approximately 13.4%[37]. - The company’s cash and bank balances increased to HKD 1,098,286,000 from HKD 1,068,348,000[37]. - The total equity attributable to equity holders as of June 30, 2019, was HKD 26,908,881, compared to HKD 25,390,789 as of December 31, 2018, reflecting an increase of approximately 5.98%[40]. Impairment and Provisions - The group made a provision for impairment of HKD 349 million related to the Cui Di Wan project in Shenyang due to a weak retail market[16]. - The company reported a significant other net expense of HKD 348,979,000 primarily due to inventory impairment[65]. Economic Outlook and Strategic Initiatives - The group is closely monitoring the impact of global economic slowdown and trade disputes on the property market and is prepared to take necessary measures[26]. - The group anticipates substantial growth in annual basic profit for 2019, barring unforeseen circumstances[26]. - The company is committed to expanding its business activities and enhancing its market presence through strategic investments and developments[11]. Corporate Governance and Shareholder Information - The company complied with all provisions of the Corporate Governance Code except for the provision A.2.1, where the Chairman also serves as CEO[99]. - As of June 30, 2019, the company’s Chairman held 831,047,624 shares, representing 70.63% of the total shares[104]. - The company’s shares are held by various stakeholders, with significant ownership by directors and their affiliates[109]. - The company did not purchase, sell, or redeem any of its listed securities during the six months ended June 30, 2019[103]. Employee Information - The total employee cost increased to HKD 125 million as of June 30, 2019, compared to HKD 123 million in the previous year[111]. - The group employed 828 staff members as of June 30, 2019, down from 858 employees at the end of 2018[111]. - The company’s employee compensation is competitive and includes discretionary bonuses based on performance[111].

Financial Performance - Kowloon Development Company Limited reported a net profit attributable to shareholders of HKD 2.193 billion for the year ended December 31, 2018, an increase of 34.1% compared to HKD 1.635 billion in 2017[15]. - The basic earnings per share for 2018 was HKD 1.45, up from HKD 1.31 in 2017, reflecting a 10.7% increase[15]. - Total revenue for 2018 was HKD 2.842 billion, a decrease from HKD 3.120 billion in 2017[19]. - The company's net profit attributable to shareholders for 2018 was HKD 2.193 billion, an increase of 34.1% compared to HKD 1.635 billion in 2017[23]. - Basic earnings per share for 2018 was HKD 1.45, up from HKD 1.31 in 2017, reflecting a growth of 10.7%[23]. - The total assets of the company increased to HKD 57.462 billion in 2018 from HKD 49.086 billion in 2017, representing a growth of 16.9%[20]. - The company's net asset value per share rose to HKD 21.82 in 2018, compared to HKD 21.17 in 2017, an increase of 3.1%[20]. - The company achieved over 97% sales of residential units at the Hung Hom Coastal East project by the end of 2018, with revenue recognition expected in the first half of 2019[25]. - The overall transaction prices in Hong Kong's property market dropped approximately 10% from the peak in July 2018[24]. - The company faced challenges in the market due to uncertainties from US-China trade negotiations and anticipated interest rate hikes, impacting sales performance[24]. Dividends - The company proposed a final cash dividend of HKD 0.50 per share, bringing the total cash dividend for the year to HKD 0.72 per share[15]. - The company proposed a final cash dividend of HKD 0.50 per share for 2018, compared to HKD 0.43 per share in 2017, marking a 16.3% increase[23]. - The company declared an interim dividend of HKD 0.22 per share, consistent with the previous year, and a special dividend in the form of one share of Polydata Asset Holdings for every ten shares held[149]. - The proposed final dividend for the year ending December 31, 2018, is HKD 0.50 per share, an increase from HKD 0.43 per share in 2017[149]. - The company has no preset dividend payout ratio and considers various factors before declaring dividends[141]. Landbank and Property Development - Kowloon Development has a competitive landbank of approximately 3.7 million square meters of attributable gross floor area across Hong Kong, Mainland China, and Macau[4]. - The group’s landbank in Mainland China amounts to 3.257 million square meters, with significant projects in Shenyang and Huizhou[13]. - The company is committed to enhancing its competitive position in the property development market, leveraging opportunities to replenish its landbank[4]. - The group has identified strategic opportunities for market expansion and is focused on property development in key regions[4]. - The company is actively pursuing new product and technology development to strengthen its market position[4]. - Kowloon Development is exploring potential mergers and acquisitions to enhance its growth strategy in the property sector[4]. - The group’s property development business achieved an operating profit of HKD 2.008 billion, primarily from projects in mainland China and Macau[38]. - The project at 35 Chui Shui Wan Road, Kowloon, has a total gross floor area of approximately 196,400 square meters, fully owned by the group[49]. - The Shenyang Phase 3A development has a total site area of approximately 1,100,000 square meters and a total gross floor area of about 2,000,000 square meters, with 389,775 square meters already recognized[56]. - The Jiangwan South Shore Garden project in Huizhou has a total gross floor area of approximately 519,900 square meters, with the group holding a 60% revenue interest[58]. - The Foshan Shanyu Lake project covers an area of approximately 4,020,743 square meters, with a total gross floor area of about 1,600,000 square meters, and 844,414 square meters already recognized[61]. - The Wuxi project has a total site area of approximately 68,833 square meters and a total gross floor area of 365,000 square meters, with 107,320 square meters already recognized[66]. - The Tianjin Urban Plaza project has a total gross floor area of approximately 850,000 square meters, with an additional underground commercial area of about 35,000 square meters, and the group holds a 49% interest[68]. - The Shanghai project has a total gross floor area of approximately 113,600 square meters, including an underground area of about 39,035 square meters, fully owned by the group[72]. - The Zhongshan project is expected to develop into 38 high-rise residential buildings and 150 villas, with a total gross floor area of approximately 587,000 square meters, and the group holds a 35.4% interest[75]. - The Zhuhai project will develop into four hotel-style office buildings with a total gross floor area of approximately 179,000 square meters, with the group holding a 42.5% interest[79]. Financial Position and Debt - The capital debt ratio for 2018 was 66.24%, up from 46.76% in 2017, indicating a significant increase in leverage[20]. - As of December 31, 2018, the total bank loans of the group amounted to HKD 15,281,000,000, an increase from HKD 13,660,000,000 as of December 31, 2017[87]. - The net bank borrowings of the group were HKD 14,213,000,000 after accounting for cash and cash equivalents of HKD 1,068,000,000[87]. - The capital debt ratio as of December 31, 2018, was 66.2%, up from 46.8% as of December 31, 2017[87]. - The group recorded cash inflows of approximately HKD 1,536,000,000 from sales and pre-sales of projects in Hong Kong during the year[87]. - The group completed acquisitions of property development projects in Shanghai, Zhongshan, and Zhuhai for a total payment of approximately HKD 3,471,000,000[87]. - The group invested approximately HKD 1,852,000,000 in project development in Hong Kong and mainland China during the year[87]. - The group provided guarantees for bank loans amounting to HKD 907,000,000 for a joint venture in mainland China, equivalent to 50% of the HKD 1,815,000,000 loan amount[90]. - As of December 31, 2018, properties valued at HKD 16,864,000,000 and bank deposits of HKD 1,042,000,000 were mortgaged to financial institutions[89]. - The group is actively monitoring foreign exchange and interest rate risks, particularly related to its operations in Kazakhstan and mainland China[88]. - The group has sufficient financial resources to meet its obligations and future funding needs, supported by existing credit facilities and pre-sale proceeds[88]. Corporate Governance - The board of directors consists of ten members, including four executive directors and four independent non-executive directors, ensuring over one-third of the board is independent[101]. - The company has adhered to the corporate governance code throughout the year, with the exception of the separation of the roles of chairman and CEO[98]. - The chairman and CEO, Mr. Ko Wai Cheung, holds both positions, which aids in making prompt and effective decisions[103]. - The company has established a nomination committee responsible for developing director nomination policies and making recommendations to the board[104]. - Independent non-executive directors have provided annual confirmations of their independence, ensuring compliance with independence requirements[101]. - The company has a legal liability insurance plan for its directors, which is reviewed annually to ensure adequate protection against potential liabilities[102]. - The board is responsible for setting the overall strategic direction and providing leadership and oversight to management[101]. - The company will consider the independence of independent non-executive directors who have served for over nine years during their re-election[104]. - The company emphasizes the importance of good corporate governance as a key factor for long-term sustainable success[98]. - The board meets regularly and has held additional meetings with independent non-executive directors to discuss general matters of the group[103]. - The company has adopted a board diversity policy to enhance decision-making capabilities and effectively manage organizational changes[105]. - The board diversity considerations include gender, age, cultural and educational background, race, professional experience, skills, knowledge, and tenure[105]. - The nomination committee monitors the implementation of the board diversity policy and the progress towards measurable targets[107]. - The nomination committee evaluates potential board members based on various parameters, including commitment, skills, reputation, and compliance with regulatory requirements[107]. - The board holds regular meetings, with a total of four meetings conducted in the year, ensuring timely distribution of meeting materials[110]. - The executive committee is authorized to exercise all general powers of the board, except for reserved matters[115]. - The executive committee has reviewed governance matters, including insider information policies and risk management systems[116]. - The company has established four board committees, each with formal terms of reference to ensure compliance with corporate governance codes[111]. - The remuneration committee assists the board in planning and reviewing the implementation of remuneration policies[114]. - The nomination committee is responsible for reviewing the composition of the board and making recommendations for appointments or reappointments[113]. - The Audit Committee held three meetings in 2018, reviewing the semi-annual and annual performance, and assessing the effectiveness of risk management and internal control systems[117]. - The Remuneration Committee conducted three meetings in 2018, reviewing the remuneration policies and conducting annual reviews of executive directors and senior management compensation[118]. - Independent non-executive directors played a significant role in monitoring corporate transactions, including the acquisition of 100% of the issued share capital of Wei An Limited from Polydata Holdings International Limited[122]. - The company acquired 50% of the issued share capital of Jun Yang Limited and 60% of Allround Holdings Limited, both from Polydata Holdings, enhancing its property development portfolio in China[122]. - The average attendance rate for board meetings in 2018 was 100%, indicating strong engagement from board members[120]. - The Nomination Committee held one meeting in 2018, reviewing the board's composition and assessing the independence of non-executive directors[118]. - The company provided regular training sessions for directors to enhance their knowledge and skills regarding corporate governance and compliance with listing rules[123]. - The Audit Committee met with external auditors twice during the year to discuss issues related to the annual financial statement audit[117]. - The company established a whistleblowing policy to allow employees and independent third parties to report suspected misconduct or fraud[117]. - The board reviewed the diversity policy and its measurable targets, ensuring progress towards achieving these goals[118]. - The company has adopted a standard code of conduct for securities trading, ensuring all directors have confirmed compliance throughout the year[127]. - The remuneration policy is designed to reflect performance and contributions, aiming to attract, motivate, and retain high performers[129]. - The internal audit department has conducted three meetings with senior staff to discuss the role, objectives, and progress of internal audit functions[133]. - The board believes the risk management and internal control systems are effective and adequate based on the review conducted for the year ending December 31, 2018[134]. - The company has established a whistleblowing policy to allow employees and stakeholders to report concerns effectively[133]. - The board is responsible for maintaining effective oversight of the group's activities, with management providing monthly updates on performance and outlook[130]. - The company emphasizes high ethical standards and compliance with insider trading regulations to avoid conflicts of interest[127]. - The risk management framework follows the "three lines of defense" model, ensuring comprehensive oversight and control[130]. - The company secretary has completed over 15 hours of relevant professional training to update skills and knowledge[126]. - The board has a commitment to fostering a culture of risk awareness and accountability within the organization[133]. Acquisitions and Investments - Future Star International Limited agreed to acquire all issued share capital and sales loans of Wei An Limited for HKD 2,110,242,000[1]. - Noble Prime International Limited agreed to acquire 50% of the issued share capital and sales loans of Jun Yang Limited for an initial price of HKD 1,200,111,000, with an adjustment cap of HKD 311,912,000[1]. - Noble Prime International Limited agreed to acquire 60% of the issued share capital and sales loans of Allround Holdings Limited for HKD 644,378,000[1]. - The transactions were approved by independent shareholders at a special general meeting held on November 21, 2018[3]. - The independent board committee confirmed that the transactions were conducted on normal commercial terms and were fair and reasonable[3]. - The company completed the acquisition of 100% equity in a subsidiary for a total consideration of HKD 2,110,242,000, which included HKD 1,367,692,000 for inter-company loan transfers[194]. Social Responsibility and Environmental Commitment - The group has been recognized for its corporate social responsibility efforts, including donations to local charities and participation in community activities[86]. - The group aims to maintain good relationships and close communication with business partners, banks, contractors, and suppliers to achieve its goals[86]. - The group has established a systematic assessment to address stakeholder concerns regarding environmental and social issues[86]. - The group is committed to environmental protection and continuous improvement in environmental aspects, promoting electronic communication and waste recycling systems in its offices[86]. - The group made charitable donations totaling HKD 1,267,000 during the year, up from HKD 989,000 in 2017[151].