Core Viewpoint - Morgan Stanley has upgraded its industry outlook for Hong Kong's real estate to "attractive," expecting positive year-on-year growth in three segments: residential property prices, Central office rents, and retail sales for the first time since 2018 [1][2]. Residential Sector - The firm is most optimistic about the residential market, predicting that property prices, which have fallen by 30% since 2018, will bottom out by 2025 and rise by 10% in 2026, with further increases expected in 2027 [1]. - The removal of stamp duties for foreign and mainland buyers in February 2024 is anticipated to boost property purchases from mainland clients [1]. - The influx of mainland immigrants, which has doubled to 140,000 annually post-pandemic compared to 70,000 from 2012 to 2019, is contributing to positive population growth [1]. - A strong stock market performance, with the Hang Seng Index rising by 28% in 2025, has also improved market sentiment [1]. Office Sector - Despite high vacancy rates, the market is expected to recover, with Central office rents projected to increase by 3% this year due to rising demand for quality office properties from asset management firms, hedge funds, and wealth management institutions [2]. - Recent large transactions, pre-leasing activities, and increased trading volumes in the IPO market are seen as positive indicators for the office sector [2]. Retail Sector - Retail sales in Hong Kong are expected to grow by 3% year-on-year this year, driven primarily by an increase in visitor numbers [2]. - However, there are concerns regarding the ongoing rise in online retail sales and competition from lower-priced products and services in Shenzhen, which pose challenges to the retail market [2]. - The expansion of duty-free sales in mainland China is also viewed as a potential pressure point for Hong Kong's retail sector [2].

Core Viewpoint - Morgan Stanley has upgraded its industry outlook for Hong Kong's real estate sector to "attractive," expecting positive year-on-year growth in three segments: residential property prices, Central office rents, and retail sales for the first time since 2018 [1][2]. Residential Market - The residential property market is viewed as the most promising, with prices having dropped 30% since 2018 and expected to bottom out by 2025, followed by a projected 10% increase in 2026 and further growth in 2027 [1]. - The removal of stamp duties for foreign and mainland buyers in February 2024 is anticipated to boost property purchases from mainland clients [1]. - The influx of mainland immigrants, reaching 140,000 annually post-pandemic, has doubled compared to the 70,000 per year from 2012 to 2019, contributing to positive population growth [1]. - The strong performance of the stock market, with the Hang Seng Index rising 28% in 2025, has also improved market sentiment [1]. Office Market - Despite high vacancy rates, the office market is expected to recover, with Central office rents projected to increase by 3% this year due to rising demand for quality office properties from asset management firms, hedge funds, and wealth management institutions [2]. - Recent large transactions, pre-leasing activities, and increased trading volumes in the IPO market are seen as positive indicators for the office sector [2]. Retail Market - Retail sales in Hong Kong are expected to grow by 3% year-on-year, driven primarily by an increase in visitor numbers [2]. - However, there are concerns regarding the continuous rise in online retail sales and competition from lower-priced products and services in Shenzhen, as well as potential pressure from the expansion of duty-free sales in mainland China [2].

FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00101 | 說明 | | 不適用 | | | | | | | | 已發行股份（不包括庫存股份）數目 | | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | | 5,056,646,442 | | 0 | | 5,056,646,442 | | 增加 / 減少 (-) | | | | 0 | | 0 | | | | 本月底結存 | | | | 5,056,646,442 | | 0 | | 5,056,646,442 | 第 2 頁 共 10 頁 v 1.1.1 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2025年12月31日 | 狀態: | 新提交 | | --- | --- | --- | --- | | 致：香港交 ...

Core Insights - The luxury retail sector in China is facing significant challenges, with high-end malls and luxury brands experiencing a decline in performance and store closures due to changing consumer behavior and economic conditions [4][18][24]. Group 1: Market Trends - High-end malls like One ITC and IFC have seen a wave of luxury brand withdrawals, including major names like LV, Celine, and Tiffany, leading to increased vacancy rates [4][10]. - The luxury market in mainland China is projected to experience a continuous decline, with sales expected to drop by 18%-20% in 2024, reverting to 2020 levels [19][21]. - The relationship between luxury brands and high-end malls, which was once mutually beneficial, is deteriorating as both sectors struggle to adapt to new market realities [12][17]. Group 2: Financial Performance - Hang Lung Properties reported an 18.7% year-on-year decline in revenue for the first half of the year, with net profits decreasing for two consecutive years [6][10]. - Other major players in the high-end real estate sector, such as Swire Properties and New World Development, are also facing financial difficulties, with Swire reporting a loss of HKD 1.202 billion [8][10]. - Rental income from luxury brands is becoming increasingly critical for high-end malls, with Hang Lung's rental income share rising from 58.8% to 70.3% [24]. Group 3: Strategic Shifts - In response to declining performance, high-end malls are exploring new strategies, such as introducing new consumer brands and shifting towards a more inclusive customer base [26][29]. - Companies like China Resources are successfully expanding their shopping centers by focusing on experiential retail and attracting a broader range of consumers through innovative marketing strategies [32][33]. - The shift from traditional luxury retail to a more experience-driven model is evident, with malls aiming to transform from mere shopping venues to lifestyle destinations [32][34].

Core Viewpoint - The luxury residential project by Hang Lung Properties in Happy Valley has successfully sold two connected houses for a total price of HKD 450 million, marking a significant transaction in the high-end real estate market [1] Group 1: Transaction Details - The sold properties, designated as 31A and B, have a usable area of 9,186 square feet, with an average transaction price of approximately HKD 48,682 per square foot, making it the largest residential unit in the project [1] - The design of the house includes six bedrooms and five bathrooms, along with a helper's room, featuring amenities such as a wine tasting area, entertainment room, home theater, gym, and study [1] Group 2: Special Features - The master bedroom is notably designed as an oversized Master Chamber, covering around 1,850 square feet, and includes a private walk-in closet of over 580 square feet, divided into sections for men and women [1]

董事會召開日期 恒隆地產有限公司（「本公司」）謹定於2026年1月30日（星期五）舉行董事會會議， 藉以批准（其中包括）本公司及其附屬公司截至2025年12月31日止年度之全年業 績，以及考慮派發末期股息之建議（如適用）。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公布的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示，概不對因本公布全部或任何部分內容而產生或因倚賴該等內容而 引致的任何損失承擔任何責任。 恒隆地產有限公司 HANG LUNG PROPERTIES LIMITED （於香港註冊成立之有限公司） （股份代號﹕00101） 香港，2026年1月2日 於本公布日期，本公司董事會包括： 執行董事： 陳文博先生、盧韋柏先生及趙家駒先生 非執行董事： 韋安祖先生 獨立非執行董事： 袁偉良先生、陳南祿先生、陳嘉正博士、馮婉眉女士及李天芳女士 承董事會命 公司秘書 馬婉華 ...

Core Viewpoint - The Penghua Hong Kong Stock Connect Low Volatility Dividend ETF (159117) experienced a slight decline of 0.68% in its closing price on December 29, with a trading volume of 3.5853 million yuan [1]. Group 1: Fund Overview - The fund was established on September 30, 2025, and is officially named Penghua S&P Hong Kong Stock Connect Low Volatility Dividend Index Securities Investment Fund [1]. - The management fee for the fund is set at 0.30% annually, while the custody fee is 0.10% annually [1]. - The performance benchmark for the fund is the S&P Hong Kong Stock Connect Low Volatility Dividend Index return (adjusted for exchange rates) [1]. Group 2: Fund Size and Liquidity - As of December 26, the latest share count for the ETF is 151 million shares, with a total size of 156 million yuan [1]. - Over the past 20 trading days, the cumulative trading amount for the ETF reached 96.319 million yuan, with an average daily trading amount of 4.8159 million yuan [1]. Group 3: Fund Management - The current fund managers are Yan Dong and Yu Zhanchang, both of whom have managed the fund since its inception on September 30, 2025, achieving a return of 2.95% during their tenure [1]. Group 4: Top Holdings - The ETF's top holdings include: - Hang Lung Properties: 1.08% holding, 496,000 shares valued at 4.0664 million yuan - Jiangxi Copper: 1.08% holding, 122,000 shares valued at 4.0565 million yuan - China Shenhua: 1.05% holding, 110,000 shares valued at 3.9728 million yuan - Far East Horizon: 0.99% holding, 588,000 shares valued at 3.7202 million yuan - CNOOC: 0.96% holding, 210,000 shares valued at 3.6159 million yuan - Sino Land: 0.94% holding, 384,000 shares valued at 3.5443 million yuan - PetroChina: 0.87% holding, 496,000 shares valued at 3.2921 million yuan - Hengan International: 0.87% holding, 134,500 shares valued at 3.2589 million yuan - Henderson Land: 0.81% holding, 122,000 shares valued at 3.0452 million yuan - Bank of China Hong Kong: 0.81% holding, 91,000 shares valued at 3.0623 million yuan [2].

Group 1 - The core announcement is that Weber Lu, the CEO of Hang Lung Group, will retire by August 31, 2026, and the board is currently conducting a search for his successor [1][6] - Lu has been with Hang Lung since May 2018 and previously held significant positions at Procter & Gamble, Coca-Cola, and Citigroup, where he served for 18 years [3] - Lu currently holds 1,128,542 shares of Hang Lung Properties, representing 0.02% of the total issued shares, and 460,000 shares of Hang Lung Group, representing 0.03% of the total issued shares [5] Group 2 - Under the leadership of Chen Wenbo, who took over as chairman in April 2024, the company is transitioning from "heavy asset expansion" to "stock optimization" as part of the "Hang Lung V.3" strategy [6] - Lu expressed gratitude for the support from the board and highlighted the achievements during his tenure, including strengthening the brand and launching significant strategies [6] - The company has faced challenges due to the adjustment in the Chinese real estate market and a decline in luxury consumption, with rental income from mainland properties dropping by 2% to HKD 3.199 billion in the first half of 2025 [7]

Core Viewpoint - The announcement of CEO Lu Weibao's retirement by Hang Lung Group and Hang Lung Properties marks a significant transition to a new management era led by Chen Wenbo, amidst challenges in the real estate market and a strategic transformation towards optimizing existing assets [1][2][4]. Management Transition - Lu Weibao will retire by August 31, 2026, and will continue to provide advisory support to the group [1][4]. - This change follows the recent transition to a third-generation management team under Chen Wenbo, who took over from the long-serving chairman Chen Qizong in April 2024 [3][4]. - The management change is seen as a natural progression in the company's strategic shift from heavy asset expansion to optimizing existing assets [4][5]. Financial Performance and Market Challenges - Hang Lung's stock price has significantly declined from over HKD 18 per share in 2019 to around HKD 8, reflecting the pressures from structural adjustments in the industry and the company's strategic transformation [2][4]. - For the first half of 2025, rental income from mainland properties fell by 2% to HKD 3.199 billion, with operating profit also declining by 2% [4][14]. - The flagship Shanghai Hang Lung Plaza's occupancy rate dropped from a long-term 100% to 98%, with sales down by 8% [4][14]. Strategic Initiatives - The company has initiated a strategic response to market pressures, including a shift away from distinguishing between "high-end" and "sub-high-end" shopping categories, indicating a more flexible approach to customer adaptation [5][14]. - Recent operational data showed a 15% year-on-year increase in total tenant sales during the National Day holiday period, with some properties like Shanghai Port International achieving a 50% sales increase [5][15]. - The V.3 strategy, led by Chen Wenbo, aims to expand core business areas through a light-asset model, with significant projects underway in Shanghai, Hangzhou, and Wuxi [5][15]. Future Outlook and Challenges - The new management team faces challenges, including uncertain retail consumption growth and a competitive office market, with a 5% decline in office income reported for the first half of the year [6][14]. - The transition to a light-asset model involves substantial investment in property renovations, raising concerns about cost overruns and maintaining the high-end brand image while attracting new customer segments [6][16]. - The upcoming selection of Lu Weibao's successor will be critical for maintaining strategic continuity and addressing the multifaceted challenges facing the company [6][18].

Core Viewpoint - The announcement of CEO Lu Weibao's retirement by Hang Lung Group and Hang Lung Properties marks a significant transition as the company enters a new era under the leadership of Chen Wenbo, the third-generation successor, amidst ongoing challenges in the real estate market and a strategic transformation towards optimizing existing assets [5][7][14]. Group 1: Management Transition - Lu Weibao will retire by August 31, 2026, and will continue to provide advisory support to the group [5][14]. - This change follows the retirement of former chairman Chen Qizong in 2024, indicating a shift to a management team led by Chen Wenbo [5][7]. - The transition is seen as a natural progression in the company's strategic transformation, with Lu having laid the groundwork for the "V.3" strategy [7][14]. Group 2: Strategic Transformation - The "V.3" strategy aims to shift from heavy asset expansion to optimizing existing assets, responding to the challenges posed by the real estate market and luxury consumption decline [7][10]. - The company has begun to adapt its operational logic by no longer distinguishing between "high-end" and "mid-range" shopping centers, indicating a more flexible approach to market demands [8][10]. - Recent operational data shows a 15% increase in total tenant sales for mainland properties during the National Day holiday, with significant sales growth in key locations [8][9]. Group 3: Market Challenges - Hang Lung's rental income from mainland properties fell by 2% to HKD 31.99 billion in the first half of 2025, with flagship projects experiencing a decline in occupancy rates [8][9]. - The office market remains under pressure, with a 5% drop in income from mainland office buildings in the first half of the year [10]. - The company faces challenges in balancing the introduction of new retail concepts while maintaining its high-end positioning to avoid losing its existing customer base [10][13]. Group 4: Future Outlook - The selection of Lu Weibao's successor will be closely watched, as the new CEO's ability to uphold strategic consensus and navigate multiple challenges will be crucial for the company's transformation [14]. - The core value of prime commercial locations remains a significant asset, supported by favorable policies and consumer potential in new first-tier cities [13][14]. - The successful execution of the "V.3" strategy and the management transition will be pivotal for restoring investor confidence and achieving sustainable growth [13][14].