金融界6月19日消息，上证指数低开低走，中证港股通地产指数 (港股通地产，931025)报1543.32点。 数据统计显示，中证港股通地产指数近一个月上涨3.41%，近三个月下跌0.88%，年至今上涨7.81%。 据了解，中证港股通地产投资指数从港股通范围合资格证券中选取符合地产主题的不超过50家香港市场 上市公司作为样本，以反映相关行业主题上市公司的整体表现。该指数以2014年11月14日为基日，以 3000.0点为基点。 从指数持仓来看，中证港股通地产指数十大权重分别为：新鸿基地产（13.77%）、贝壳-W（13.5%）、 华润置地（10.84%）、长实集团（7.94%）、中国海外发展（6.58%）、九龙仓置业（4.42%）、恒基地 产（4.42%）、信和置业（4.26%）、九龙仓集团（3.23%）、华润万象生活（2.97%）。 从中证港股通地产指数持仓样本的行业来看，房地产占比100.00%。 资料显示，指数样本每半年调整一次，样本调整实施时间分别为每年6月和12月的第二个星期五的下一 交易日。权重因子随样本定期调整而调整，调整时间与指数样本定期调整实施时间相同。特殊情况下将 对该指数进行临时调整。当样 ...

丨证券研究报告丨 行业研究丨专题报告丨房地产 [Table_Title] 商业估值和分红保障的简约框架 ——商业地产系列专题之一 报告要点 [Table_Summary] 开发下行周期中，具备稳定现金流和较高股息率的商业地产更受市场青睐，但各家评估标准不 同导致净资产差异较大，市净率缺乏客观比较基础。本文力图构建一个简约的分析框架，以统 一刻度对投房价值进行评估，以【（投房价值-有息负债）/市值】指标去评价各家商企的低估程 度，以当前股息率和自持业务对股息的保障性去衡量红利价值。结论指向明确，部分港资商企、 华润置地和开发业务风险出清后的部分民营房企，具备显著的稀缺性，低利率时代值得重视。 分析师及联系人 [Table_Author] 刘义 薛梦莹 SAC：S0490520040001 SAC：S0490520120002 SFC：BUV416 请阅读最后评级说明和重要声明 %% %% 市净率并不是商业类房企客观的估值指标，因为大多数商企的投房是按照公允值入账，且评估 标准差异较大，导致各家企业净资产缺乏可比性。在 EBITDA%相差不大的情况下，可以通过 【自持租金/已完工投房账面价值】来刻画资产评估是否足 ...

Core Points - The China Securities Index for Hong Kong Stock Connect Real Estate has shown significant growth, with a 9.35% increase over the past month, 7.83% over the last three months, and a 3.95% rise year-to-date [2]. Group 1: Index Performance - The current value of the China Securities Index for Hong Kong Stock Connect Real Estate is reported at 1488.12 points [1]. - The index was established on November 14, 2014, with a base value of 3000.0 points [2]. Group 2: Index Composition - The index includes a maximum of 50 eligible Hong Kong-listed companies that reflect the real estate theme [2]. - The top ten weighted companies in the index are: - Sun Hung Kai Properties (14.39%) - China Resources Land (12.18%) - Cheung Kong Property (8.91%) - China Overseas Land & Investment (7.68%) - Sino Land (4.76%) - Wharf Real Estate Investment (4.51%) - Henderson Land Development (4.28%) - Longfor Group (3.65%) - China Resources Mixc Lifestyle (3.3%) - Wharf Holdings (3.09%) [2]. Group 3: Sector Allocation - The index's holdings are entirely composed of companies listed on the Hong Kong Stock Exchange [3]. - The sector breakdown of the index holdings is as follows: - Real Estate Development: 77.56% - Real Estate Management: 11.73% - Real Estate Services: 10.71% [3]. Group 4: Index Adjustment Mechanism - The index samples are adjusted biannually, specifically on the next trading day after the second Friday of June and December [3]. - In special circumstances, the index may undergo temporary adjustments, such as when a sample company is delisted or when new companies meet the eligibility criteria for inclusion [3].

Core Viewpoint - The China Securities Index for Hong Kong Real Estate (CSI Hong Kong Real Estate Index) has shown a decline of 1.97% over the past month, but an increase of 5.51% over the past three months and 1.84% year-to-date [1]. Group 1: Index Performance - The CSI Hong Kong Real Estate Index reported a value of 1462.70 points as of April 29 [1]. - The index is based on a sample of up to 50 eligible Hong Kong-listed companies that reflect the overall performance of the real estate sector [1]. Group 2: Index Holdings - The top ten weighted companies in the CSI Hong Kong Real Estate Index are: - Sun Hung Kai Properties (13.88%) - China Resources Land (12.3%) - Cheung Kong Property (8.74%) - China Overseas Land & Investment (8.05%) - Sino Land (4.68%) - Wharf Real Estate Investment (4.4%) - Henderson Land Development (4.15%) - Longfor Group (3.75%) - China Resources Mixc Lifestyle (3.35%) - Wharf Holdings (3.08%) [1]. Group 3: Market Composition - The CSI Hong Kong Real Estate Index exclusively comprises companies listed on the Hong Kong Stock Exchange, with a 100% representation [2]. - The index is entirely focused on the real estate sector, with a 100% allocation to this industry [3]. Group 4: Index Adjustment Mechanism - The index samples are adjusted biannually, with changes implemented on the next trading day following the second Friday of June and December [3]. - In special circumstances, the index may undergo temporary adjustments, such as when a sample company is delisted or when new companies meet the eligibility criteria for inclusion [3].

Visitor Trends and Retail Performance - In 2023, Hong Kong welcomed 45 million visitors, a year-on-year increase of 31%, although retail sales fell by 7% to HKD 377 billion[20]. - Despite a weak retail recovery, leasing demand for the group's flagship properties, Harbour City and Times Square, remained resilient with continued investment from top brands[22]. - New flagship stores for international brands like Fendi and Celine were opened in Harbour City, indicating continued confidence in the market[43]. Property and Rental Market - The office rental market faced challenges with a 90% occupancy rate, but rental prices adjusted downward due to market trends[22]. - The overall occupancy rate for Harbour City reached 94% at year-end, while the office occupancy rate increased to 90% despite a weak market[43][47]. - The year-end occupancy rate for Times Square was 93%, with office occupancy also at 90%[66][67]. Financial Performance - Group revenue decreased by 3% to HKD 12.91 billion, down from HKD 13.31 billion in 2023[24]. - Operating profit fell by 3% to HKD 9.69 billion, compared to HKD 9.99 billion in the previous year[24]. - Basic net profit increased by 2% to HKD 6.14 billion, up from HKD 6.01 billion in 2023[24]. - Shareholders' profit attributable to the group dropped by 81% to HKD 891 million, down from HKD 4.77 billion in 2023[31]. - Total assets remained at HKD 238.07 billion, a decrease of 3% from HKD 245.32 billion in 2023[31]. Sustainability and Environmental Initiatives - The group is committed to reducing its environmental footprint by 2030, including targets for greenhouse gas emissions and waste reduction[13]. - The group has been included in the Hang Seng Sustainable Development Index with an AA+ rating and received an A rating in the MSCI ESG ratings[13]. - The group has committed to setting science-based near-term targets to reduce carbon emissions, aligning its vision with global climate action and low-carbon transition agendas[105]. - The group continues to achieve ISO 14001 environmental management system certification, enhancing its overall environmental performance[106]. - The group has implemented innovative cooling systems at Harbour City to improve energy efficiency, which won the "Excellence in Energy Management Award" at the CLP Innovation Energy Saving Awards 2024[106]. Corporate Governance and Board Structure - The board consists of 12 directors, with 4 executive directors and 8 independent non-executive directors, ensuring strong independence as independent directors account for 67% of the board[148][155]. - The company emphasizes the importance of independent non-executive directors in maintaining good corporate governance and independent judgment[156]. - The company has adopted a formal Nomination Policy to ensure a sustainable and optimal board composition, focusing on skills, experience, and diverse perspectives[157]. - The board has established three committees: Audit, Remuneration, and Nomination, which regularly review their terms of reference[169]. Risk Management and Internal Controls - The risk management and internal control systems are continuously monitored and evaluated to ensure they align with the company's strategic objectives and risk tolerance[180]. - The risk management and internal control committee is responsible for identifying and reporting risks, including environmental, social, and governance risks[181]. - The group has adopted an Anti-Corruption Policy as a key component of its corporate governance framework, demonstrating a zero-tolerance approach to corruption[190]. Employee and Community Engagement - The company maintained a low injury rate of 3.1 incidents per 100 employees, with no recorded cases of work-related fatalities during the reporting year[107]. - The "School Activation" program has supported 82 schools and nearly 100,000 students since its launch in 2011, aiming to inspire students in their educational and career planning[113]. - The company has provided scholarships to 22 award winners from the Kowloon Warehouse Art Scholarship Program, enabling them to pursue art-related degrees at prestigious institutions worldwide[114]. Future Outlook and Challenges - The outlook for 2025 indicates challenges due to trade conflicts and global economic uncertainty, but potential opportunities with government stimulus measures[28]. - The company plans to finance its capital expenditures through internal resources, bank loans, and other borrowings, including the sale of equity investments[138].

Financial Performance - The group's basic net profit increased by 2% to HKD 6.139 billion (2023: HKD 6.011 billion), equivalent to HKD 2.02 per share (2023: HKD 1.98 per share) [3] - Total revenue decreased by 3% to HKD 12.912 billion (2023: HKD 13.306 billion), with operating profit also down by 3% to HKD 9.691 billion (2023: HKD 9.993 billion) [16] - Investment property income fell by 1% to HKD 10.801 billion (2023: HKD 10.916 billion), while operating profit decreased by 2% to HKD 9.102 billion (2023: HKD 9.247 billion) [16] - Hotel revenue decreased by 1% to HKD 1.541 billion (2023: HKD 1.561 billion), with operating profit down 53% to HKD 99 million (2023: HKD 209 million) [16] - Shareholders' profit attributable to the group was HKD 890 million, a decrease from HKD 4.76 billion in the previous year, resulting in basic earnings per share of HKD 0.29 compared to HKD 1.57 last year [22] - The net profit for the year was HKD 875 million, a significant decline of 81.12% compared to HKD 4,644 million in 2023 [43] - The company reported a net profit of HKD 2,053 million for 2024, compared to HKD 5,782 million in 2023, reflecting a significant decline of 64.60% [53] Assets and Liabilities - Total assets reached HKD 238.1 billion, down from HKD 245.3 billion in the previous year, with 95% of assets located in Hong Kong [24] - Total assets decreased from HKD 245,322 million in 2023 to HKD 238,072 million in 2024, reflecting a reduction of 2.57% [45] - The total liabilities decreased from HKD 49,715 million in 2023 to HKD 46,088 million in 2024, a decline of 5.26% [45] - Total liabilities decreased to HKD 5,371 million in 2024 from HKD 6,256 million in 2023 [74] Investment Properties - The total value of investment properties reported a 3% impairment loss, with a fair value of HKD 221.8 billion [18] - Investment property assets totaled HKD 221.8 billion, accounting for 94% of operating assets, with Harbour City valued at HKD 152.5 billion and Times Square at HKD 43.7 billion [25] - The fair value loss on investment properties was HKD 5,665 million, compared to a loss of HKD 1,147 million in the previous year [41] Debt and Financial Position - The group maintained a net debt ratio of 18%, reducing borrowing costs by 10% [4] - The group plans to manage debt actively amid uncertain interest rate prospects, achieving the lowest net debt level since listing at HKD 34.2 billion [5] - Net debt decreased by HKD 2.1 billion to HKD 34.2 billion, with a net debt to total equity ratio declining to 17.8% from 18.6% [30][32] - Financial expenses were HKD 1.8 billion, down from HKD 2.17 billion in the previous year, with an effective borrowing interest rate rising to 5.6% [20] - Total interest expenses decreased to HKD 2,024 million in 2024 from HKD 2,261 million in 2023 [66] Revenue Breakdown - Revenue from Hong Kong was HKD 12,181 million, a slight decrease from HKD 12,329 million in 2023 [60] - Development property revenue decreased significantly to HKD 152 million from HKD 238 million, a drop of 36.03% [55] - Investment income fell to HKD 281 million from HKD 465 million, a decrease of 39.51% [55] - Other income netted HKD 83 million in 2024, a significant recovery from a loss of HKD 726 million in 2023 [66] Dividends and Shareholder Information - The total dividend for the year is HKD 1.24 per share, representing 65% of the basic net profit from investment properties and hotels [4] - Total dividends declared per share were HKD 1.24 in 2024, down from HKD 1.28 in 2023 [72] - The second interim dividend's ex-dividend date is set for April 3, 2025, with a payment date of April 24, 2025 [79] - The annual general meeting is scheduled for May 15, 2025, with a record date of May 12, 2025 [80] Future Outlook - The company expects challenges in 2025 due to escalating trade conflicts and global economic uncertainty, but anticipates potential recovery in retail and hotel sectors with government support [13] - The company plans to finance its capital expenditures through internal financial resources and bank borrowings [37] - The company has committed capital expenditures of HKD 900 million for the coming years, with HKD 200 million already incurred [37] Employee and Operational Information - The company employed approximately 2,900 staff members as of December 31, 2024 [39] - Employee costs increased to HKD 59 million in 2024 from HKD 52 million in 2023, including share-based payment expenses of HKD 11 million [65] Governance and Communication - The board of directors includes a mix of executive and independent non-executive members, ensuring diverse governance [82] - The company is preparing for its annual general meeting, emphasizing shareholder participation and voting rights [81] - The company is committed to maintaining transparency and timely communication with its shareholders regarding dividends and meetings [79] - The fiscal year-end report will be announced on March 10, 2025, providing insights into the company's performance [83]

Financial Performance - The group's basic net profit increased by 2% to HKD 3.123 billion, compared to HKD 3.059 billion in 2023, equivalent to HKD 1.03 per share[5] - The group recorded an unrealized revaluation loss of investment properties amounting to HKD 4.426 billion, leading to a loss attributable to shareholders of HKD 1.052 billion, compared to a profit of HKD 1.805 billion in 2023[5] - Total revenue remained stable at HKD 6.501 billion, slightly up from HKD 6.473 billion in 2023, while operating profit decreased by 1% to HKD 4.915 billion[16] - Investment property revenue increased by 2% to HKD 5.542 billion, with operating profit rising by 1% to HKD 4.718 billion[16] - Hotel revenue rose by 7% to HKD 748 million, but operating profit decreased by 64% to HKD 24 million[16] - The attributable loss to shareholders was HKD 1.052 billion, a significant decline from a profit of HKD 1.805 billion in the previous year, resulting in a basic loss per share of HKD 0.35[22] - The total comprehensive income for the period was a loss of HKD 1,052 million, which includes a loss of HKD 795 million from investments[46] - The company reported a loss attributable to shareholders of HKD 10.52 billion for the six months ended June 30, 2024, compared to a profit of HKD 18.05 billion for the same period in 2023[69] Dividends and Shareholder Returns - The first interim dividend is set at HKD 0.64 per share, down from HKD 0.67 per share in 2023, totaling HKD 1.943 billion[6] - The company paid an interim dividend of HKD 1,852 million, consistent with the previous year, reflecting a stable dividend policy[48] - The interim dividend declared is HKD 0.64 per share, totaling HKD 1.943 billion, down from HKD 0.67 per share and HKD 2.034 billion in the previous year[71] Market Conditions and Economic Outlook - The retail sales in Hong Kong showed a significant decline in the second quarter, reversing the post-pandemic recovery trend[7] - The office rental market remains under pressure, with an occupancy rate of 88% as of June, and rental income down by 2%[9] - The group anticipates that uncertainties from global economic slowdown and geopolitical tensions will continue to impact the local economy[13] Financial Position and Assets - Total assets reached HKD 238.9 billion, down from HKD 245.3 billion at the end of the previous year, with 95% of assets located in Hong Kong[24] - Investment properties accounted for HKD 223 billion, representing 94% of total operating assets, with Harbour City valued at HKD 151.6 billion and Times Square at HKD 46 billion[25] - Net debt decreased by HKD 1.2 billion to HKD 35.1 billion, with a net debt to total equity ratio declining to 18.3% from 18.6%[30][32] - The total assets of the group as of June 30, 2024, amounted to HKD 238.9 billion, a decrease from HKD 245.3 billion as of December 31, 2023[44] - The net asset value of the group as of June 30, 2024, was HKD 191.6 billion, down from HKD 195.6 billion at the end of 2023[44] Cash Flow and Financial Management - The group recorded an operating cash inflow of HKD 4.9 billion for the period, primarily from rental income, resulting in a net cash inflow of HKD 3.3 billion from operating activities[35] - The company reported a net cash inflow from operating activities of HKD 3,261 million, compared to HKD 3,174 million for the same period in 2023, representing an increase of 2.7%[48] - The company reported a decrease in financing cash outflows to HKD 3,338 million for the current period, down from HKD 8,226 million in the previous year, indicating improved cash management[48] - The company’s investment activities resulted in a net cash outflow of HKD 66 million, a significant decrease from the previous year's inflow of HKD 4,708 million, highlighting a shift in investment strategy[48] Financial Expenses and Taxation - Financial expenses totaled HKD 882 million, down from HKD 990 million in the previous year, with an effective borrowing interest rate rising to 5.7% from 4.7%[19] - Tax expenses decreased by 3% to HKD 607 million, compared to HKD 627 million in the previous year[20] - The tax expense for the six months ended June 30, 2024, was HKD 607 million, compared to HKD 627 million for the same period in 2023[67] Employee and Compensation - The company has approximately 2,900 employees as of June 30, 2024, with compensation based on job responsibilities and market trends[38] - The annual remuneration for the chairman increased from HKD 300,000 in 2023 to HKD 350,000 in 2024, representing a 16.67% increase[104] - The annual remuneration for non-chairman directors increased from HKD 250,000 in 2023 to HKD 300,000 in 2024, reflecting a 20% increase[104] Share Options and Ownership - The company has granted a total of 3,500,000 share options to directors under the share option plan, representing 0.12% of the total issued shares[99] - The average exercise price for the share options is HKD 36.58, with a vesting period starting from August 14, 2024[93] - Major shareholders include BlackRock Group with 153,217,040 shares (5.05%) and a short position of 5,108,000 shares (0.17%)[96] - The company has no outstanding or expired share options for directors during the financial period[94] Investment Properties and Future Plans - The investment property segment primarily involves leasing and management, with a focus on shopping malls, offices, and serviced apartments located mainly in Hong Kong[53] - The company plans to continue expanding its investment properties and hotel operations to drive future growth[59]

Financial Performance - Basic net profit increased by 2% to HKD 3.123 billion (2023: HKD 3.059 billion)[3] - Group recorded a loss of HKD 1.052 billion due to non-cash investment property revaluation impairment of HKD 4.426 billion (2023: HKD 1.133 billion)[3] - Shareholders' loss was HKD 1.052 billion, with basic loss per share of HKD 0.35 (2023: profit of HKD 1.805 billion and earnings per share of HKD 0.59)[16] - Underlying net profit increased by 2% to HKD 3.123 billion (2023: HKD 3.059 billion), with underlying earnings per share of HKD 1.03 (2023: HKD 1.01)[16] - Revenue for the six months ended June 30, 2024, was HKD 6.501 billion, a slight increase from HKD 6.473 billion in the same period in 2023[30] - Operating profit before depreciation, amortization, interest, and taxes was HKD 5.035 billion, down from HKD 5.065 billion in 2023[30] - Net loss for the period was HKD 1.067 billion, compared to a net profit of HKD 1.780 billion in 2023[30] - Group total revenue for 2024 was HKD 6,501 million, compared to HKD 6,473 million in 2023[38] - Operating profit for 2024 was HKD 4,673 million, slightly up from HKD 4,671 million in 2023[38] - Basic loss per share for 2024 was HKD 1,052 million, compared to a profit of HKD 1,805 million in 2023[44] Dividend and Shareholder Information - First interim dividend of HKD 0.64 per share (2023: HKD 0.67 per share) with a total distribution of HKD 1.943 billion (2023: HKD 2.034 billion)[4] - Interim dividend ex-date set for August 23, 2024[50] - Deadline for submitting share transfer documents for the interim dividend is August 26, 2024, at 4:30 PM[50] - Record date and time for the interim dividend is August 26, 2024, at 6:00 PM[50] - Interim dividend payment date is September 10, 2024[50] - Shareholders must submit transfer documents and relevant share certificates to the company's Hong Kong share registrar by August 26, 2024, at 4:30 PM to receive the interim dividend[50] - First interim dividend for 2024 was HKD 0.64 per share, totaling HKD 1,943 million, down from HKD 0.67 per share and HKD 2,034 million in 2023[45] Investment Properties - Investment property revenue increased by 2% to HKD 5.542 billion (2023: HKD 5.455 billion), with operating profit up 1% to HKD 4.718 billion (2023: HKD 4.677 billion)[12] - Investment properties recorded a 2% revaluation impairment, with a net unrealized revaluation impairment of HKD 4.426 billion (2023: HKD 1.133 billion)[13] - Investment properties totaled HKD 223 billion, accounting for 94% of operating assets (2023: HKD 227.6 billion and 93%)[19] - Investment properties in Hong Kong accounted for HKD 583 million of the total capital expenditure[28] - Investment properties revenue increased to HKD 5,542 million in H1 2024, up from HKD 5,455 million in H1 2023[35] Retail and Office Market Performance - Overall retail sales in Q2 experienced a double-digit sharp decline[5] - Harbour City's overall revenue (including hotels) increased by 5%, with operating profit up 3%[6] - Office rental market remains weak with a June-end occupancy rate of 88% and a 5% decline in operating profit[7] - Times Square's shopping mall revenue increased by 4% and operating profit rose by 6%, with an end-period occupancy rate of 94%[9] Hotel Industry Performance - Hotel industry faces challenges with intense competition and pressure on room rates, though Marco Polo hotels maintained stable occupancy rates[8] - Hotel revenue rose to HKD 748 million in H1 2024 compared to HKD 697 million in H1 2023[35] Financial Expenses and Borrowing - Financial expenses amounted to HKD 882 million, including unrealized gains of HKD 189 million from cross-currency and interest rate swaps[15] - Actual borrowing interest rate increased to 5.7% (2023: 4.7%) due to rising Hong Kong Interbank Offered Rate[15] - Total interest expense for 2024 was HKD 1,042 million, up from HKD 1,031 million in 2023[41] Assets and Liabilities - Total assets reached HKD 238.9 billion, with 95% located in Hong Kong (2023: HKD 245.3 billion)[18] - Net debt decreased by HKD 1.2 billion to HKD 35.1 billion (2023: HKD 36.3 billion), with net debt to total equity ratio declining to 18.3% (2023: 18.6%)[23][24] - Total assets as of June 30, 2024, were HKD 238.942 billion, down from HKD 245.322 billion at the end of 2023[32] - Total liabilities decreased to HKD 47.370 billion from HKD 49.715 billion at the end of 2023[32] - Net assets stood at HKD 191.572 billion, down from HKD 195.607 billion at the end of 2023[32] Revenue Breakdown - Fixed rental income grew to HKD 4,352 million in H1 2024 from HKD 4,218 million in H1 2023[36] - Variable rental income decreased to HKD 454 million in H1 2024 from HKD 542 million in H1 2023[36] - Management and service income increased to HKD 607 million in H1 2024 from HKD 586 million in H1 2023[36] - Other rental-related income rose to HKD 106 million in H1 2024 from HKD 93 million in H1 2023[36] - Total revenue from operations under HKFRS 15 increased to HKD 1,469 million in H1 2024 from HKD 1,398 million in H1 2023[36] - Hong Kong region revenue for 2024 reached HKD 6,194 million, a slight increase from HKD 6,050 million in 2023[38] Corporate Governance and Board Structure - The company deviated from the Corporate Governance Code by having the same individual serve as both Chairman and CEO, which is deemed appropriate for long-term strategy planning and execution[49] - The Board of Directors consists of 4 executive members and 8 independent non-executive directors[50] Other Financial Information - Total committed and uncommitted credit facilities and issued debt securities amounted to HKD 50 billion, with HKD 36 billion utilized[25] - Operating cash inflow was HKD 4.9 billion (2023: HKD 4.8 billion), mainly from rental income, with net cash inflow from operating activities of HKD 3.3 billion (2023: HKD 3.2 billion)[27] - Total estimated capital expenditure for the coming years is HKD 1.1 billion, with HKD 231 million already committed[28] - Development properties revenue significantly decreased to HKD 8 million in H1 2024 from HKD 22 million in H1 2023[35] - Investment revenue dropped to HKD 140 million in H1 2024 from HKD 244 million in H1 2023[35] - Total depreciation and amortization for 2024 was HKD 120 million, down from HKD 125 million in 2023[39] - Employee costs increased to HKD 533 million in 2024 from HKD 476 million in 2023[39] - Other income net for 2024 was HKD 70 million, a significant improvement from a loss of HKD 282 million in 2023[40] - Tax expense for 2024 was HKD 607 million, down from HKD 627 million in 2023[42] - The company employed approximately 2,900 people as of June 30, 2024[29] - No purchase, sale, or redemption of any listed securities by the company or its subsidiaries during the financial period[50]

Visitor Traffic and Retail Performance - In 2023, the average weekend foot traffic at Harbour City reached 280,000 visitors per day[12]. - The number of visitors to Hong Kong and retail sales were only 52% and 84% of 2018 levels, respectively[11]. - The group successfully attracted luxury brands such as De Beers, Fendi, and Van Cleef & Arpels, increasing the number of high-end street stores to 16, with some achieving double-digit sales growth[12]. - Overall revenue for Harbour City increased by 10%[24]. - The rental rate for Harbour City shopping mall reached 97% by year-end[24]. - The total revenue for Times Square decreased by 3%, with a shopping mall revenue increase of 3%[34]. - Times Square's shopping mall rental rate improved to 95%[34]. Financial Performance - Group revenue increased by 7% to HKD 13.3 billion, compared to HKD 12.5 billion in 2022[17]. - Operating profit rose by 13% to HKD 10 billion, up from HKD 8.8 billion in the previous year[17]. - Basic net profit decreased by 3% to HKD 6 billion, down from HKD 6.2 billion in 2022[17]. - Shareholders' profit attributable to the group was HKD 4.8 billion, a significant recovery from a loss of HKD 8.9 billion in 2022, representing a 154% increase[17]. - Total assets decreased by 4% to HKD 245.3 billion, compared to HKD 255.2 billion in 2022[17]. - Net debt reduced by 20% to HKD 36.3 billion, down from HKD 45.1 billion in the previous year[17]. - The company declared a second interim dividend of HKD 0.61 per share, consistent with the previous year, leading to a total annual dividend of HKD 1.28 per share, down from HKD 1.31 in 2022[17]. Sustainability and Corporate Social Responsibility - The group aims to achieve long-term goals by 2030, including reducing greenhouse gas emissions, electricity intensity, and water usage[9]. - The group continues to be included in the Hang Seng Sustainable Development Index with an AA+ rating[9]. - The group is committed to corporate social responsibility initiatives, including various educational and artistic programs[9]. - The group aims to achieve carbon neutrality by 2030 through reducing direct emissions and electricity consumption, with ongoing reviews of these targets to align with global agendas[59]. - The group has obtained ISO 14001 environmental management system certification during the reporting year, enhancing its environmental performance[59]. - The group is actively exploring opportunities for developing green and smart building renovation technologies, including the use of innovative products like iPaint[59]. - The group has established a robust governance structure to address environmental, social, and governance challenges, led by a sustainability oversight committee[57]. Governance and Board Structure - The company has strengthened its corporate governance framework to enhance transparency and accountability for stakeholders[83]. - The board consists of 12 directors, with 4 executive directors and 8 independent non-executive directors, ensuring strong independence with independent directors making up 67% of the board[89]. - The company aims to maintain at least 17% female representation on the board, with 2 female directors currently serving[89]. - The board's diversity policy is reviewed at least annually to ensure its effectiveness and compliance with regulatory requirements[89]. - The company has adopted a nomination policy to guide the selection and appointment of directors, ensuring a transparent process[91]. Risk Management and Internal Controls - The audit committee oversees the identification and reporting of risks, including environmental, social, and governance risks[113]. - The company has implemented a robust internal control framework to safeguard assets and ensure the reliability of financial information[117]. - The board is responsible for preparing the financial statements in accordance with the Hong Kong Financial Reporting Standards and ensuring internal controls to prevent material misstatements[195]. - The audit identified significant risks related to fraud, necessitating a high level of professional skepticism throughout the audit process[196]. Community Engagement and Donations - The group donated HKD 3 million to the Hong Kong Community Chest in 2023, supporting those in need[63]. - The company reported a total donation of HKD 32 million during the fiscal year[140]. - The company actively engages in community activities, with over 1,600 volunteer hours contributed by its team in 2023[63]. Future Outlook and Strategic Initiatives - The company provided guidance for the next fiscal year, projecting a revenue growth of 10% to 12%[153]. - The company is considering strategic acquisitions to enhance its market position, with a budget of $100 million allocated for potential deals[152]. - The board emphasized a focus on sustainability initiatives, aiming for a 30% reduction in carbon footprint by 2025[153].

Financial Performance - Core business revenue from investment properties and hotels increased by 8%, with operating profit rising by 12%[2] - The group's underlying net profit decreased by 3% to HKD 6.01 billion, equivalent to HKD 1.98 per share[3] - Group revenue increased by 7% to HKD 13.31 billion, while operating profit rose by 13% to HKD 9.99 billion, primarily due to improved performance in investment properties and hotels after border reopening[14] - Hotel revenue surged by 67% to HKD 1.56 billion, turning a loss of HKD 230 million in 2022 into a profit of HKD 209 million in 2023[14] - Investment property revenue increased by 2% to HKD 10.91 billion, with operating profit up 6% to HKD 9.24 billion, accounting for 82% and 93% of the group's total, respectively[14] - The company reported a net profit of HKD 4.6 billion for the year, a significant recovery from a loss of HKD 8.9 billion in 2022[30] - Total revenue for 2023 reached HKD 13,306 million, an increase from HKD 12,459 million in 2022, representing a growth of 6.8%[35] - Operating profit for the group was HKD 9,993 million in 2023, compared to HKD 8,841 million in 2022, representing a year-on-year increase of 13.0%[40] Asset and Liability Management - Total valuation of investment properties decreased by 0.4% to HKD 228 billion, accounting for 93% of the group's assets[2] - Net debt decreased by HKD 8.8 billion, with the debt ratio declining to 18.6%[2] - The total assets decreased to HKD 245,322 million in 2023 from HKD 255,249 million in 2022, a decline of 3.9%[32] - Total liabilities decreased to HKD 49,715 million in 2023 from HKD 60,368 million in 2022, a reduction of 17.5%[32] - Net assets increased to HKD 195,607 million in 2023, compared to HKD 194,881 million in 2022, a growth of 0.4%[32] - The total available credit and issued debt securities amounted to HKD 52.1 billion as of December 31, 2023, with HKD 37.4 billion utilized, leaving HKD 14.7 billion unutilized[26] - As of December 31, 2023, the net debt of the group (excluding the port enterprises) decreased to HKD 36.1 billion from HKD 44.7 billion in 2022, resulting in a net debt to total equity ratio of 18.6% compared to 23.2% in 2022[25] Dividends and Shareholder Returns - The first interim dividend of HKD 0.67 per share was paid, with a second interim dividend of HKD 0.61 per share to be paid in April 2024, totaling HKD 1.28 per share for the year[4] - The first interim dividend for 2023 is HKD 0.67 per share, totaling HKD 2,034 million, compared to HKD 0.70 per share and HKD 2,125 million in 2022[46] - The second interim dividend for 2023 is HKD 0.61 per share, totaling HKD 1,852 million, consistent with the same amount in 2022[46] Operational Insights - Harbour City saw a 10% increase in overall revenue and a 13% rise in operating profit[5] - The retail rental rate stabilized, with expectations of further increases as sales recover[5] - The office rental rate was under pressure, with an occupancy rate of 88% at year-end, and revenue down by 6%[7][10] - The overall revenue of Times Square decreased by 3%, while the occupancy rate improved to 95%[9] - The group recorded an operating cash inflow of HKD 9.7 billion for the year, up from HKD 8.6 billion in 2022, primarily driven by rental income[27] - The net cash inflow from operating activities was HKD 5.9 billion, down from HKD 6.7 billion in the previous year[27] Future Outlook and Challenges - The outlook for 2024 indicates potential positive signs, but uncertainties from global economic slowdown and geopolitical tensions may cause volatility[12] - The company plans to continue expanding its investment property portfolio, focusing on markets in Hong Kong and mainland China[34] Financial Challenges - Other net losses amounted to HKD 720 million, primarily due to fair value losses on financial instruments and impairment of development properties[16] - Financial expenses rose to HKD 2.17 billion, with the effective borrowing rate increasing to 5.4% from 2.5% in 2022[17] - Tax expenses decreased by 17% to HKD 1.14 billion, compared to HKD 1.36 billion in 2022[18] - Interest expenses rose to HKD 2,261 million in 2023, up from HKD 1,142 million in 2022, marking an increase of 98.1%[43] Corporate Governance and Compliance - The company has complied with all principles of the Corporate Governance Code, with the exception of the separation of roles between the Chairman and CEO[50] - No purchases, sales, or redemptions of the company's listed securities were made during the fiscal year[51] - The annual general meeting is scheduled for May 7, 2024, with a record date of May 2, 2024[52]