Core Points - Kerry Properties (00683) reported an annual performance for the year ending December 31, 2024, with a revenue of HKD 19.499 billion, representing a year-on-year increase of 49% [1] - The net profit attributable to shareholders was HKD 808 million, a significant decrease of 75% compared to the previous year [1] - Earnings per share were HKD 0.56, and the company proposed a final dividend of HKD 0.95 per share [1] Performance in Hong Kong - The property sales performance in Hong Kong was strong, with positive market responses to the company's projects, reflecting effective sales and marketing strategies [1] - The focus on high-quality development projects has been a key factor in the company's encouraging results in the Hong Kong market [1] Performance in Mainland China - Despite facing headwinds, the company's investment properties in Mainland China remained stable [1] - The company actively enhanced its retail positioning and launched several initiatives during the year to increase mall visibility and optimize tenant mix, which contributed to retail sales growth [1]

Financial Performance - The consolidated revenue for the year ended December 31, 2024, was HKD 21,361 million, an increase of 18% compared to HKD 18,127 million in 2023[3]. - The group recorded a net profit attributable to shareholders of HKD 808 million, a decrease of 75% from HKD 3,243 million in 2023[3]. - Basic earnings per share for 2024 were HKD 0.56, down 75% from HKD 2.23 in 2023[11]. - The adjusted earnings per share increased by 25% to HKD 2.74 from HKD 2.20 in the previous year[11]. - The group's consolidated profit decreased by 13% to HKD 6,850 million, with a gross profit margin of 32%, down from 44% in the previous year[25]. - The group's basic profit, including impairment provisions, was HKD 2,576 million, a slight increase of 2% from HKD 2,518 million in 2023[23]. - The group reported a net profit of HKD 1,512 million for 2024, down from HKD 4,163 million in 2023, with basic and diluted earnings per share at HKD 0.56[64]. - The total tax expense for the year ended December 31, 2024, was HKD 1,070 million, down from HKD 2,696 million in 2023, indicating a reduction of about 60.3%[4]. Property Sales and Revenue - Property sales revenue reached HKD 13,830 million, up 33% from HKD 10,416 million in the previous year[3]. - Contract sales amounted to HKD 12,605 million, a decline from HKD 14,071 million in 2023, primarily due to reduced saleable resources in mainland China[8]. - The mainland property division recorded consolidated revenue of HKD 136,650 million, up from HKD 99,000 million in 2023, driven by increased recognized sales[35]. - The mainland property division reported consolidated revenue of HKD 7.457 billion in 2024, up from HKD 3.459 billion in 2023, driven by increased sales recognition from completed projects[36]. - The Hong Kong property division recorded consolidated revenue of HKD 7.696 billion in 2024, down from HKD 8.227 billion in 2023, primarily due to reduced sales recognition from development properties[43]. Investment Properties - Rental income from investment properties (excluding hotel operations) decreased by 2% to HKD 5,355 million from HKD 5,450 million in 2023[10]. - The investment property and hotel portfolio has a total attributable floor area of 18.6 million square feet, with 83% (15.5 million square feet) located in mainland China[21]. - The mainland investment property and hotel portfolio generated consolidated revenue of HKD 6.208 billion in 2024, down from HKD 6.441 billion in 2023, with rental income from investment properties contributing HKD 4.069 billion[38]. - The investment property portfolio in Hong Kong generated consolidated rental income of HKD 1.286 billion in 2024, an increase from HKD 1.234 billion in 2023, with a gross profit margin of 76%[47]. Debt and Financial Management - The debt ratio increased to 41.5% as of December 31, 2024, up from 34.1% in 2023, due to an increase in total debt[33]. - Total borrowings increased to HKD 595.81 billion in 2024 from HKD 551.31 billion in 2023, with net borrowings rising to HKD 483.74 billion[56]. - The group's available financial resources decreased by 13% to HKD 381.36 billion in 2024, covering approximately 64% of total borrowings[57]. - The group maintains a cautious financial policy to manage liquidity and financial risks, with regular reviews by the finance committee[52]. - The group plans to increase the proportion of sustainable financing in its overall debt portfolio to enhance cost efficiency and advance environmental goals[59]. Sustainability and Future Outlook - The company plans to reduce operational carbon emissions by 2% annually until 2030 as part of its sustainability goals[12]. - The company maintains an optimistic long-term growth outlook for the mainland market, driven by urbanization and rising middle-class consumption[14]. - The company plans to add 1.04 million square feet to its investment property and hotel portfolio over the next six years, including approximately 570,000 square feet of office space and 410,000 square feet of retail space[21]. - The company is focused on developing and selling premium and luxury properties in key urban areas of Hong Kong and mainland China, aiming to generate stable recurring income[97]. - The company remains committed to ESG initiatives, with plans to reduce carbon emissions by 30% over the next five years[112]. Corporate Governance and Compliance - The company has fully complied with the corporate governance code throughout 2024, except for the dual role of the chairman and CEO, which is deemed beneficial for business development[102]. - The annual general meeting for the year ending December 31, 2024, is scheduled for May 23, 2025[109]. - The company will publish its annual report on April 29, 2025, which will be available on the "disclosure" website and the company's website[111].

Investment Rating - The report initiates coverage with an "Outperform" rating for Kerry Properties [5][10]. Core Insights - The company is expected to benefit from the launch of the "Jinling Huating" project in Shanghai, which is anticipated to contribute significant cash flow starting in 2025 [10]. - The company's investment properties and hotels are projected to increase in gross floor area (GFA) by approximately 59% by the end of 2030 compared to H1 2024, enhancing revenue growth potential [10]. - The company emphasizes stable shareholder returns, maintaining a consistent dividend per share (DPS) of HK$1.35 from 2017 to 2023, with a stable interim DPS of HK$0.40 in H1 2024 [10]. - The gearing ratio is expected to decline in 2025 as cash flow from property sales improves, alleviating financial pressure [10]. Summary by Sections Company Overview - Kerry Properties was established in 1978 and primarily engages in real estate development and property leasing, with significant investments in mainland China since the late 1990s [13][14]. Development Business - The company's sales are primarily driven by high-end residential projects, with a notable recovery in contract sales in Hong Kong, achieving HK$7 billion in H1 2024, a 271% increase year-on-year [22][27]. - The company has a robust project pipeline in Hong Kong, with several high-end projects expected to support sales in the coming years [32][34]. Investment Properties - The company reported a consolidated property rental income of HK$2.6 billion in H1 2024, with a slight year-on-year decline of 2.8% [48]. - The investment properties are strategically located in core cities, with a focus on office and retail spaces, providing stable cash flow [53][57]. Financial Analysis - For the fiscal year 2023, the company reported total revenue of HK$13.09 billion, a decrease of 10.3% year-on-year, with a projected recovery in revenue for 2024 [4][9]. - The core net profit for 2024 is estimated at HK$2.99 billion, reflecting an 18.7% increase compared to 2023 [4][9]. Earnings Forecast and Valuation - The report forecasts a stable DPS of HK$1.35 for 2024, 2025, and 2026, with corresponding price-to-earnings (PE) ratios of 7.4, 6.8, and 5.7, respectively [10].

Financial Performance - Total revenue for the first half of 2024 was HKD 5.04 billion, a decrease of 8% compared to HKD 5.472 billion in the same period of 2023[4]. - Basic profit attributable to shareholders decreased by 55% to HKD 788 million, compared to HKD 1.739 billion in the first half of 2023[6]. - Adjusted earnings per share for the first half of 2024 was HKD 0.97, down 19% from HKD 1.20 in the same period last year[4]. - The net profit for the period was HKD 1,128,391, representing a 44.4% decrease from HKD 2,030,820 in 2023[51]. - The company's debt ratio increased to 40.9% as of June 30, 2024, compared to 34.1% on December 31, 2023[46]. - The total liabilities as of June 30, 2024, amounted to HKD 60,844 million, up from HKD 55,131 million at the end of 2023[46]. - The basic and diluted earnings per share for the period were HKD 0.54, down from HKD 1.20 in the same period last year[50]. - The company reported a total comprehensive loss of HKD 1,048,460 for the period, compared to a loss of HKD 1,432,080 in 2023[51]. Property Sales and Revenue - Property sales amounted to HKD 1.792 billion, down 16% from HKD 2.123 billion year-on-year[4]. - The total contracted sales for the first half of 2024 was HKD 7.044 billion, a decline from HKD 8.170 billion in the first half of 2023[7]. - The group's consolidated revenue from property development decreased by 59% year-on-year to HKD 2.325 billion, primarily due to a short-term timing gap between contract sales and revenue recognition[10]. - The total contracted sales amount for the mainland properties was HKD 1.204 billion in the first half of 2024, with significant contributions from projects in Wuhan and Shenyang[24]. - The total contracted sales amount for the Hong Kong property segment reached HKD 5,840 million, significantly up from HKD 1,575 million year-on-year[31]. Rental Income and Investment Properties - Rental income from investment properties (excluding hotel operations) decreased by 3% to HKD 2.426 billion, compared to HKD 2.498 billion in the previous year[7]. - The group's investment property and hotel revenue slightly decreased by 3% year-on-year to HKD 3.714 billion[11]. - The group's total rental income from investment properties in Hong Kong for the first half of 2024 was HKD 596 million, a decrease of 7% compared to HKD 640 million in the same period of 2023[35]. - The mainland property segment reported a total rental income of HKD 2,053 million, down 2% from HKD 2,086 million year-on-year[27]. - The gross profit from the mainland investment properties and hotel portfolio was HKD 1.40 billion, with a gross profit margin of 74%[26]. Debt and Financial Management - The debt ratio increased to 40.9% as of June 30, 2024, up from 34.1% on December 31, 2023, following the final payment for the Shanghai Huangpu project[13]. - As of June 30, 2024, the total borrowings amounted to HKD 60.844 billion, an increase from HKD 55.131 billion as of December 31, 2023[42]. - Approximately 69% of the borrowings are due for repayment in the next two years[45]. - The company's available financial resources decreased by 20% to HKD 37.351 billion compared to HKD 44.971 billion as of December 31, 2023, mainly due to land cost payments[43]. - The financing costs for the first half of 2024 totaled HKD 195,166,000, a decrease from HKD 317,789,000 in the same period of 2023, representing a reduction of approximately 38.6%[90]. Corporate Governance and Compliance - The company has adopted the standard code for securities trading by directors, ensuring compliance with trading regulations during the blackout period before financial announcements[107]. - The board has reviewed and updated policies including diversity, insider information disclosure, and securities trading procedures to enhance corporate governance practices[108]. - The company is committed to high levels of corporate governance, which is deemed critical for long-term success and sustainability[108]. - The company has established internal control procedures to ensure that related party transactions are conducted fairly and reasonably, with independent non-executive directors reviewing these transactions annually[142]. - The company has not identified any non-compliance with the standard code during the six months ending June 30, 2024[107]. Future Outlook and Strategic Initiatives - The company plans to continue its market expansion and product development strategies to enhance future performance despite the current financial challenges[1]. - The company is focused on developing and selling premium and luxury properties in key urban areas of Hong Kong and mainland China, while managing a portfolio of investment properties in mainland China[140]. - The company plans to launch a new marketing campaign with a budget of HKD 5 million to boost brand awareness[147]. - New product development initiatives are underway, with an investment of HKD 10 million allocated for R&D in innovative technologies[147]. - Market expansion plans include entering two new regions, projected to increase market share by 5%[147].

Financial Performance - Total revenue for the first half of 2024 was HKD 5.04 billion, a decrease of 8% compared to HKD 5.47 billion in the first half of 2023[3] - Basic profit attributable to shareholders decreased by 55% to HKD 788 million, compared to HKD 1.74 billion in the same period last year[6] - Adjusted earnings per share for the first half of 2024 was HKD 0.97, a decline of 19% from HKD 1.20 in the first half of 2023[3] - The group reported a net profit of HKD 1,128,391,000 for the period, with attributable profit to shareholders amounting to HKD 788,036,000[66] - The net profit for the period was HKD 1,128.39 million, a decline from HKD 2,030.82 million year-on-year, indicating a decrease of about 44.4%[48] - The company's total assets decreased to HKD 184,296,273,000 from HKD 182,586,530,000, reflecting a slight increase of 0.9% year-over-year[50] - The group reported a decrease in shareholder's profit attributable to HKD 788,036,000 for the six months ended June 30, 2024, compared to HKD 1,738,831,000 in the same period of 2023, a decline of 54.6%[72] Revenue Breakdown - Property sales revenue dropped to HKD 1.79 billion, down 16% from HKD 2.12 billion year-on-year[3] - The total contracted sales amount for the first half of 2024 was HKD 7.04 billion, down from HKD 8.17 billion in the previous year[7] - The combined revenue from investment properties and hotels for the group is 3.714 billion, a decrease of 3% compared to 3.819 billion in the previous period[19] - Revenue from mainland properties was HKD 3,579,766,000, while revenue from Hong Kong properties was HKD 1,459,841,000[66] - The investment property segment in Hong Kong generated revenue of HKD 542 million in the first half of 2024, down from HKD 578 million in the same period of 2023, with a gross margin of 77%[35] Property Development and Sales - The group's consolidated revenue from property development decreased by 59% year-on-year to HKD 2.325 billion (1H 2023: HKD 5.724 billion) due to a short-term timing gap between contract sales and revenue recognition[20] - Contract sales amounted to HKD 7.044 billion, down 14% from HKD 8.170 billion in the same period last year, with mainland sales decreasing significantly while Hong Kong sales improved[22] - The development property sales revenue for the first half of 2024 was HKD 918 million, a decrease from HKD 1.94 billion in the same period of 2023, with a gross margin of 16%[33] Rental Income and Occupancy - Rental income from investment properties (excluding hotel operations) decreased by 3% to HKD 2.43 billion, compared to HKD 2.50 billion in the first half of 2023[8] - Rental income from mainland leasing properties is 2.053 billion, down 2% year-over-year, while Hong Kong leasing properties decreased by 7% to 596 million[19] - The overall occupancy rate of the mainland investment property portfolio remained stable compared to December 31, 2023[29] - As of June 30, 2024, the overall occupancy rates for the group's properties in mainland cities are 90% for offices, 87% for retail, and 92% for apartments[30] - The occupancy rate for MegaBox in Hong Kong dropped to 89% as of June 30, 2024, down from 95% at the end of 2023, primarily due to renovation works[38] Financial Position and Debt - The group's debt ratio increased to 40.9% as of June 30, 2024, from 34.1% as of December 31, 2023, following the final payment for the Shanghai Huangpu project[23] - Total borrowings amounted to HKD 608.44 billion as of June 30, 2024, an increase from HKD 551.31 billion on December 31, 2023[42] - Approximately 69% of the total borrowings are due for repayment in the next five years, with HKD 41.81 billion (69%) maturing in the third to fifth year[46] - The company aims to maintain a prudent financial management strategy to keep the debt ratio at a reasonable level while executing its deleveraging plan[20] Sustainability and Corporate Governance - The MSCI ESG rating improved from "A" to "AA," reflecting the company's commitment to sustainability[9] - The group emphasizes sustainable development standards for ongoing projects and aims to positively impact the community[85] - The company has fully complied with the corporate governance code during the six months ending June 30, 2024, except for the dual role of the chairman and CEO[88] Future Outlook and Strategy - The group has a robust pipeline of integrated development projects in major cities, which will contribute to stable recurring income growth[18] - The company focuses on developing and selling premium properties in key urban areas in Hong Kong and mainland China, aiming for stable recurring income[85] - The group expects to add 11.028 million square feet of floor area to its investment properties and hotel portfolio over the next six years, primarily in Shanghai, Wuhan, and Hangzhou[18] Interim Dividend and Shareholder Returns - The company maintained an interim dividend of HKD 0.40 per share, consistent with the previous year[6] - The company will distribute an interim dividend of HKD 0.40 per share, totaling approximately HKD 581 million based on 1,451,305,728 shares issued as of June 30, 2024[90] Audit and Reporting - The independent auditor's review report will be included in the upcoming interim report to shareholders[84] - The interim report will be published on or around September 9, 2024, and will be available on the company's website[91]

Financial Performance - Total revenue for 2023 was HKD 13,090 million, a decrease of 10% compared to HKD 14,590 million in 2022[6]. - Property sales revenue dropped to HKD 6,349 million, down 26% from HKD 8,543 million in the previous year[6]. - The hotel operations segment saw a significant increase in revenue, rising 66% to HKD 1,755 million from HKD 1,056 million in 2022[6]. - Shareholders' profit attributable to the company increased by 18% to HKD 3,243 million, compared to HKD 2,755 million in 2022[17]. - Basic earnings per share for 2023 was HKD 2.23, an increase of 18% from HKD 1.90 in 2022[17]. - Contract sales for 2023 totaled HKD 14,071 million, a substantial increase from HKD 5,354 million in 2022[18]. - The consolidated revenue from development properties in Mainland China and Hong Kong increased by 22% to HKD 10.416 billion in 2023, compared to HKD 8.562 billion in 2022[38]. - The consolidated revenue from investment and hotel properties grew by 14% to HKD 7.711 billion in 2023, up from HKD 6.789 billion in 2022[38]. Debt and Financial Management - The company maintained a debt ratio of 34.1%, slightly up from 33.6% in the previous year[6]. - The debt ratio as of December 31, 2023, was 34.1%, a slight increase from 33.6% in 2022[38]. - The total borrowing amount was HKD 55.131 billion, an increase from HKD 52.870 billion in 2022[151]. - Cash and bank deposits totaled HKD 13.845 billion, with net borrowings at HKD 41.286 billion as of December 31, 2023[151]. - The company’s available financial resources amounted to HKD 44.971 billion, including undrawn bank loan facilities of HKD 31.126 billion, representing an 8% increase compared to 2022[153]. - The company maintained a fixed-rate debt ratio of 43% and a net debt ratio of 58% as of December 31, 2023, compared to 37% and 48% in 2022, respectively[150]. - The company has implemented a prudent policy for cash flow and debt management to mitigate liquidity, foreign exchange, interest rate, and credit risks[148]. Property Development and Investment - The company’s total land bank reached 50.9 million square feet, providing ample supply for future project development[19]. - The company has a robust pipeline of development properties, with a total attributable floor area of 10,814,000 square feet expected to be completed by 2028[51]. - The company’s total attributable floor area for development properties is 26,256,000 square feet, up from 24,233,000 square feet in the previous year[48]. - The company’s land reserve strategy focuses on establishing a quality investment property portfolio in mainland China, covering office, retail, hotel, and rental apartments[44]. - The company’s development properties in mainland China are strategically located near major transportation hubs, enhancing accessibility for future residents[50]. Sustainability and Corporate Governance - The company has identified key sustainability issues including energy efficiency, responsible supply chain management, and climate change resilience[167]. - The company aims to improve upstream and downstream emissions performance with specific targets related to Scope 3 emissions[190]. - The company has provided over 622,000 nutritious meals through its community programs[187]. - The company received a five-star rating for three consecutive years in the Global Real Estate Sustainability Benchmark (GRESB)[192]. - Kerry Properties has fully complied with the Corporate Governance Code in 2023, with one exception regarding the dual role of the Chairman and CEO[199]. - The company emphasizes a strong corporate governance framework to ensure long-term success and sustainable development[199]. Community Engagement and Employee Welfare - The total donations increased significantly to HKD 24.7 million in 2023, compared to HKD 12.1 million in 2022[25]. - Over 680 community investment programs were conducted, with more than 8,900 employee participation instances[187]. - The employee training rate was 98.3% in 2023, slightly down from 98.6% in 2022[159]. - 97% of employees received gender equality and anti-harassment training, a significant increase of 22%[168]. - The injury rate among employees was reported at 8.8 incidents per thousand employees, a slight increase from 6.92 incidents in 2022[159]. Customer Satisfaction and Service Quality - The company achieved a customer satisfaction rate of 90% in 2023, up from 93% in 2022[25]. - The overall occupancy rate for the retail portfolio improved to 85%, up from 83% in the previous year[125]. - The office portfolio maintained a high occupancy rate of 90%, compared to 88% in 2022[125]. - The residential leasing portfolio's occupancy rate increased to 92%, up from 86% in the previous year[125]. - The company plans to focus on renewing leases with blue-chip tenants to secure stable income amid a weak market[122].

Financial Performance - For the fiscal year ending December 31, 2023, the company reported total revenue of HKD 13,090 million, a decrease of 10% compared to HKD 14,590 million in 2022[3]. - The company achieved a net profit attributable to shareholders of HKD 3,243 million, an increase of 18% from HKD 2,755 million in 2022, primarily due to a fair value increase of investment properties[5]. - The basic earnings per share for 2023 was HKD 2.23, up from HKD 1.90 in 2022, reflecting an 18% increase[5]. - The group’s consolidated revenue from development properties in mainland China and Hong Kong increased by 22% to HKD 10.416 billion in 2023, compared to HKD 8.562 billion in 2022[21]. - The consolidated revenue from investment and hotel properties in mainland China and Hong Kong grew by 14% to HKD 7.711 billion in 2023, up from HKD 6.789 billion in 2022[21]. - The company reported a revenue of HKD 13.09 billion for the year ended December 31, 2023, down from HKD 14.59 billion in 2022, representing a decrease of approximately 10.3%[49]. - The net profit for the year was HKD 4.16 billion, compared to HKD 3.47 billion in 2022, reflecting an increase of about 19.8%[49]. - The company’s earnings per share (EPS) for the year was HKD 2.23, compared to HKD 1.90 in 2022, marking an increase of 17.4%[49]. Property Sales and Revenue - Property sales revenue fell to HKD 6,349 million, down 26% from HKD 8,543 million in the previous year[3]. - Contract sales for the year totaled HKD 14,071 million, significantly up from HKD 5,354 million in 2022, driven by the successful sales of residential projects in Shanghai, Hangzhou, and Hong Kong[6]. - The total contract sales for The Aster project reached HKD 850 million, while the combined sales from the projects in Wong Chuk Hang amounted to HKD 1.192 billion[31]. - Contract sales in Hong Kong amounted to HKD 3.435 billion for the year ended December 31, 2023, a decrease from HKD 3.673 billion in 2022, with contributions from five projects including The Aster and high-end residential projects[29]. Investment Properties and Development - The company’s investment properties and hotel portfolio generated revenue of HKD 6,741 million, an 11% increase from HKD 6,047 million in 2022, attributed to the recovery of hotel operations post-pandemic[6]. - The total land bank increased to 50.9 million square feet following the acquisition of two land parcels in Hong Kong and mainland China, supporting future project development[8]. - The group has a robust pipeline of development properties with a total attributable floor area of 10.814 million square feet expected to be completed by 2028, including significant projects in Hangzhou, Shenyang, and Shanghai Huangpu[16]. - The investment property portfolio totals 18.403 million square feet, with 83% located in mainland China and 17% in Hong Kong, contributing 15.765 million square feet of investment properties[18]. - The group anticipates adding 11.028 million square feet of floor area to its investment property and hotel portfolio over the next five years, representing a 55% increase[20]. - The group aims to enhance recurring income through the gradual increase of its investment property portfolio in Shanghai, focusing on high-quality residential and commercial developments[13]. Financial Position and Debt - The debt ratio as of December 31, 2023, was 34.1%, a slight increase from 33.6% in 2022[22]. - Total borrowings amounted to HKD 55.131 billion as of December 31, 2023, an increase from HKD 52.870 billion in 2022[45]. - The company maintains a prudent financial policy for managing liquidity and debt, focusing on reducing risks associated with liquidity, foreign exchange, interest rates, and credit[37]. - The proportion of sustainable finance loans reached 48% of the total loan portfolio, amounting to approximately HKD 41.116 billion as of December 31, 2023[44]. - The company’s fixed-rate debt ratio increased to 43% as of December 31, 2023, up from 37% in 2022[40]. - Approximately 64% of the total borrowings are due for repayment in the next two years[45]. Operational Performance - The overall occupancy rate for the retail portfolio remained stable at 85% in 2023, up from 83% in 2022[26]. - The office portfolio's occupancy rate improved to 90% in 2023, compared to 88% in 2022[26]. - The residential leasing portfolio maintained a stable occupancy rate of 92% in 2023, up from 86% in 2022[26]. - Hotel revenue in mainland China increased by 66% to HKD 1.755 billion in 2023, compared to HKD 1.056 billion in 2022[25]. Dividends and Shareholder Information - The board proposed a final dividend of HKD 0.95 per share, maintaining the total cash dividend for the year at HKD 1.35 per share[5]. - The final dividend will be distributed to eligible shareholders on June 5, 2024[91]. - The annual general meeting for shareholders will be held on May 20, 2024, at 2:30 PM[92]. - The total cash dividend for the year, including an interim dividend of HKD 0.40 per share, amounts to HKD 1.35 per share, consistent with the previous year[90]. Compliance and Governance - The company has fully complied with the Corporate Governance Code throughout 2023, except for the dual role of the Chairman and CEO held by Mr. Guo[86]. - The company confirmed compliance with the standard code for securities trading by directors throughout 2023[88].

Financial Performance - Total revenue for the first half of 2023 reached HKD 5.472 billion, an 18% increase compared to HKD 4.641 billion in the same period of 2022[5] - Basic profit attributable to shareholders was HKD 1.739 billion, a 15% increase from HKD 1.508 billion in the same period of 2022[9] - The net profit for the six months ended June 30, 2023, was HKD 2.03 billion, down from HKD 2.92 billion in the previous year, indicating a decline of 30.4%[67] - Basic earnings per share for the period was HKD 1.20, compared to HKD 1.89 in the same period last year[67] - The group reported a significant decrease in other comprehensive income, totaling a loss of HKD 3.46 billion for the period, compared to a loss of HKD 4.96 billion in the previous year[70] Revenue Sources - Property sales contributed HKD 2.123 billion, a 24% increase from HKD 1.714 billion year-on-year[5] - Hotel operations revenue surged to HKD 851 million, a 100% increase from HKD 425 million in the previous year, nearing 90% of pre-pandemic levels[10] - The group recorded total revenue of HKD 2.956 billion for the mainland property division in the first half of 2023, up from HKD 2.664 billion in the same period of 2022[29] - The Hong Kong property division recorded revenue of HKD 2.516 billion, up from HKD 1.977 billion in the same period last year, with a gross profit of HKD 966 million[38] Property Development and Sales - Contract sales amounted to HKD 8.170 billion, significantly up from HKD 3.098 billion in the first half of 2022[10] - The mainland property division achieved contract sales of HKD 6.595 billion for the six months ended June 30, 2023, primarily driven by the sales of the Hangzhou Fuyuan Court project[30] - Contract sales in Hong Kong totaled HKD 1.575 billion, including HKD 428 million from the high-end luxury project Tai Shan and HKD 737 million from the redevelopment project The Aster[39] - The gross profit margin for development property sales in the first half of 2023 was 22%, down from 48% in the same period of 2022, due to changes in the sales mix[29] Property Portfolio and Acquisitions - The total floor area of the property portfolio increased to 51.61 million square feet, up from 48.49 million square feet at the end of 2022[11] - The company acquired two quality projects in the first half of 2023, enhancing its property pipeline for future revenue[11] - The group has a total of 27.40 million sq ft of development properties, with 21.62 million sq ft in mainland China and 1.77 million sq ft in Hong Kong as of June 30, 2023[18] - The group has a pipeline of development properties that will add approximately 12.03 million sq ft of floor area in mainland China, including 6.27 million sq ft of office space and 4.61 million sq ft of retail space[24] Investment Properties and Rental Income - Rental income from investment properties (excluding hotel income) in the mainland reached HKD 1.920 billion, a 2% increase from HKD 1.883 billion in the same period last year[32] - The total rental income from investment properties in the mainland, including contributions from joint ventures, amounted to HKD 2.086 billion, a 3% increase from HKD 2.027 billion[32] - The overall occupancy rate for the retail portfolio stabilized at 81%, down from 83% as of December 31, 2022, while the office portfolio occupancy rate decreased to 85% from 88%[33] - The gross profit from investment properties was HKD 462 million, down from HKD 491 million in the first half of 2022[42] Financial Position and Debt - The total borrowings amounted to HKD 56.31 billion as of June 30, 2023, an increase from HKD 52.87 billion at the end of 2022[52] - Cash and bank deposits stood at HKD 16.47 billion, reflecting a 41% increase compared to the previous period[54] - The debt-to-equity ratio as of June 30, 2023, was 33.3%, slightly down from 33.6% as of December 31, 2022, calculated based on net borrowings of HKD 39.84 billion and total equity of HKD 119.48 billion[56] - The company actively manages its foreign exchange risk, with total foreign currency loans amounting to HKD 10.37 billion, which includes approximately HKD 7.24 billion in RMB loans[50] Corporate Governance and Compliance - The company has fully complied with the Corporate Governance Code during the six months ending June 30, 2023, except for the provision regarding the dual role of the Chairman and CEO[135] - The company has reviewed and updated its policies, including remuneration and dividend policies, to enhance corporate governance[141] - The Audit and Corporate Governance Committee held two meetings during the period to discuss financial reports and governance updates[141] - The board composition includes experienced individuals, with a majority being independent non-executive directors, ensuring balanced power distribution[143] Shareholder Information - As of June 30, 2023, the total issued ordinary shares of the company were 1,451,305,728[154] - Kerry Group Limited holds 874,090,494 shares, representing 60.23% of the company's ordinary shares[154] - The company announced an interim dividend of HKD 0.40 per share, totaling approximately HKD 581 million based on 1,451,305,728 shares issued as of June 30, 2023[191] - The interim dividend will be distributed on September 28, 2023, to shareholders listed as of September 18, 2023[190]

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告的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份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。 二零二三年中期業績公告 嘉里建設有限公司（「本公司」連同其附屬公司統稱「本集團」）董事會（「董事會」）欣然公 布本集團截至二零二三年六月三十日止六個月之未經審核中期業績。本公司審核與企業管治 委員會在向董事會作出建議以待批准前，已召開會議審閱本集團截至二零二三年六月三十日 止六個月之業績及未經審核之簡明綜合中期財務報表。 二零二三年上半年 二零二二年上半年 百分比變動 百萬港元 百萬港元 收入 5,472 4,641 18% 物業銷售 2,123 1,714 24% 物業租賃及其他 2,498 2,502 - 酒店營運 851 425 100% 基礎溢利 (1) 1,739 1,508 15% 股東應佔溢利 1,739 2,747 -37% ...

Financial Performance - Total revenue for 2022 was HKD 14,590 million, a decrease of 4.8% from HKD 15,327 million in 2021[7] - Shareholders' profit attributable for 2022 was HKD 4,520 million, a decline of 28% from HKD 6,266 million in 2021[7] - Earnings per share (EPS) decreased to HKD 1.90 from HKD 7.11, representing a 73% drop[7] - The group recorded a total revenue of HKD 14.59 billion, a decrease of 4.8% compared to HKD 15.33 billion in the previous year[19] - The mainland property division recorded revenue of HKD 9.245 billion for the year ended December 31, 2022, down from HKD 10.250 billion in 2021, with a gross profit of HKD 4.887 billion, compared to HKD 6.334 billion in 2021[28] - The gross profit margin for development property sales decreased to 44% in 2022 from 62% in 2021, primarily due to changes in the sales mix across different cities[28] Property Sales and Leasing - Property sales increased by 2.1% to HKD 8,543 million, compared to HKD 8,371 million in the previous year[7] - Property sales contributed HKD 9.97 billion, including contract sales of HKD 5.35 billion from Hong Kong and the sale of two warehouses for HKD 4.62 billion[19] - The group's property leasing income was HKD 4.99 billion, down 6.6% from HKD 5.34 billion in the previous year[19] - The group provided rental concessions of HKD 150 million to tenants in Hong Kong and mainland China during the year[14] - The rental income from joint ventures and associates was HKD 300 million, down 11.5% from HKD 339 million in the previous year[38] Investment Properties - The company’s investment property portfolio comprises 16.31 million square feet, with 19% located in Hong Kong and 81% in mainland China[26] - The company expects to add 8.93 million square feet to its investment property portfolio from ongoing mixed-use projects in mainland China over the next five years[26] - The total area of the group's investment properties and hotel portfolio is expected to increase by 43% to 29.69 million square feet by 2027, enhancing the platform for recurring income[27] - The total consolidated rental income, including contributions from joint ventures and associates, was HKD 4.092 billion, down 6.8% from HKD 4.392 billion in the previous year[38] Debt and Financial Position - Cash and bank balances decreased by 33% to HKD 11,701 million from HKD 17,435 million in 2021[7] - Total borrowings increased by 41% to HKD 52,870 million, compared to HKD 37,479 million in the prior year[7] - The debt-to-equity ratio rose to 33.6% from 15.1% in 2021[7] - The total unused bank loan credit as of December 31, 2022, was HKD 28.875 billion, with cash and bank deposits at HKD 11.701 billion, representing a decrease of 17% and 33% respectively from the previous year[78] Sustainability and Corporate Social Responsibility - The group aims to achieve carbon neutrality and has set science-based carbon reduction targets[15] - The company raised HKD 17.035 billion through sustainable development-linked loan agreements in 2022[87] - The company achieved a five-star rating from CDP Sustainalytics, maintaining a low-risk rating[88] - Key sustainability issues identified for 2022 include climate change adaptation and energy efficiency[94] - 100% of investment properties completed climate risk and vulnerability assessments, showing progress towards sustainability goals[98] Corporate Governance - Kerry Properties fully complied with all provisions of the Corporate Governance Code in 2022[115] - The board of directors is composed of three executive directors and four independent non-executive directors, ensuring a diverse skill set and experience[116] - The company emphasizes high standards of corporate governance as critical for long-term success and sustainable development[115] - The board has established five committees to assist in fulfilling its responsibilities, including the Audit and Corporate Governance Committee[116] Employee and Community Engagement - Employee training rate increased to 98.6% from 96% in 2021[83] - 34% of senior positions are held by women, up from 31% in 2021[83] - Total donations amounted to HKD 12.1 million, down from HKD 22.6 million in 2021[85] - Over 550 community investment projects were conducted, an increase from over 400 in 2021[85] Market Conditions and Risks - The overall market conditions and the group's operational performance remain uncertain due to the impact of the COVID-19 pandemic, influenced by potential virus mutations and government measures[187] - The group faces intense competition and market volatility, which may negatively affect sales or profit margins due to price competition from new entrants and existing competitors[188] - Geopolitical situations, such as the Russia-Ukraine conflict, have led to trade restrictions and supply chain risks, potentially impacting the group's financial condition and operational performance[189] Future Development Plans - The company plans to continue land acquisitions and asset enhancement projects in key cities like Shanghai, Beijing, and Hangzhou[12] - The company plans to complete several projects in 2023 and beyond, including developments in Zhengzhou, Kunming, and Shenyang, contributing significant floor area to its portfolio[25] - New projects are being developed in cities like Hangzhou and Wuhan, contributing to future growth and market expansion[27]