Financial Performance - The group's underlying net profit decreased by 13% to HKD 6.5 billion, compared to HKD 7.5 billion in 2020, with the decline rate narrowing from the previous year[9]. - Shareholders' attributable profit was HKD 4.4 billion, reversing a loss of HKD 7.9 billion in 2020[9]. - Revenue for 2021 was HK$16,043 million, an increase of 3% from HK$15,515 million in 2020[12]. - Operating profit decreased by 9% to HK$9,064 million, down from HK$9,973 million in the previous year[12]. - Basic net profit fell by 13% to HK$6,518 million, compared to HK$7,477 million in 2020[12]. - Total revenue decreased by 9%, with shopping mall revenue down 11% and office revenue down 5%[33]. - The hotel segment continues to face challenges, with ongoing losses unless repurposed for quarantine use due to the lack of travelers[7]. - The company reported a profit of HKD 4,391 million for the year, compared to a loss of HKD 7,854 million in the previous year, indicating a significant turnaround[186]. Asset Management - The company holds a portfolio of six premium assets in Hong Kong, including Harbour City and Times Square, which are located in popular shopping areas[6]. - The fair value of investment properties was reported at HKD 243.3 billion, resulting in a revaluation loss of HKD 2.203 billion[67]. - Investment property assets totaled HKD 243.3 billion, accounting for 90% of operating assets, with Harbour City valued at HKD 163.2 billion[73]. - The investment properties segment accounts for 90% of the group's total assets, indicating its core business focus[168]. - The company recognized rental income on a straight-line basis over the lease term, including contingent rents based on the sales of certain retail stores[178]. Market Conditions - Retail sales in Hong Kong increased by 8% compared to the low base in 2020, indicating a recovery in local consumption[7]. - The local economy experienced a 6% growth in GDP, with improvements in the job market[7]. - The office rental market is experiencing weak demand and oversupply, leading to necessary rent adjustments, although the group's properties remain well-located[8]. - The ongoing COVID-19 pandemic has created economic pressure on tenants, leading to a decline in rental income and negatively affecting cash flow[168]. Corporate Governance - The company has a strong governance structure with a diverse board of directors and independent non-executive members[3]. - The board consists of ten members, including four executive directors and six independent non-executive directors, promoting a diverse and balanced skill set[91]. - The company adheres to the corporate governance code and has maintained compliance with all relevant rules during the fiscal year ending December 31, 2021[87]. - The board is responsible for the company's business management and strategy oversight, aiming to enhance shareholder value[89]. - The company has adopted a formal Nomination Policy in January 2019 to ensure a balanced skill set and diversity among board members[95]. Sustainability Initiatives - The company is committed to corporate social responsibility, engaging in various community projects and educational initiatives[6]. - The group has raised its first sustainable performance-linked loan totaling HKD 1.6 billion, demonstrating its commitment to sustainable development[10]. - The company aims to reduce carbon emissions by decreasing direct emissions and lowering energy intensity by 2030[60]. - The company promotes a new lifestyle model focused on reducing plastic use, reusing, and recycling to alleviate solid waste issues in Hong Kong[60]. Shareholder Communication - The company values transparent communication with shareholders and aims to create higher value through effective dialogue with stakeholders[125]. - The company has adopted a Shareholder Communication Policy to ensure shareholders have access to unbiased and easily understandable information regarding financial performance and strategic goals[125]. - The company will hold its 2022 Annual General Meeting on May 6, 2022, via a hybrid meeting format to facilitate shareholder participation while ensuring safety during the ongoing pandemic[129]. Employee Engagement - The company employs around 2,900 staff as of December 31, 2021, with compensation based on job responsibilities and market trends, including discretionary annual performance bonuses[85]. - The group has implemented various employee wellness programs and talent development initiatives to enhance professional growth[63]. Risk Management - The group has established a risk management framework to identify and mitigate various operational risks[167]. - The company emphasizes the importance of timely and accurate disclosure of inside information to ensure fair disclosure practices[124]. - The audit committee reviewed the effectiveness of the group's risk management and internal control systems for the fiscal year ending December 31, 2021, covering financial, operational, compliance, and risk management controls[123].

Financial Performance - The group's underlying profit decreased by 15% to HKD 3.27 billion, compared to HKD 3.84 billion in 2020, resulting in earnings per share of HKD 1.08, down from HKD 1.27 in 2020[3]. - The group's revenue recorded a 10% increase, while operating profit and underlying net profit declines narrowed to 11% and 15%, respectively[5]. - The group's revenue increased by 10% to HKD 7.48 billion, driven by property sales from listed subsidiary Hutchison Port Holdings[17]. - Basic earnings per share for shareholders were HKD 0.98, compared to a loss of HKD 1.47 per share in the previous year[21]. - The group's net profit attributable to shareholders was HKD 2.97 billion, a significant recovery from a loss of HKD 4.45 billion in the previous year[21]. - The group’s basic net profit decreased by 15% to HKD 3.27 billion, compared to HKD 3.84 billion in the previous year[21]. - The group reported a profit of HKD 2.954 billion for the period, a turnaround from a loss of HKD 4.853 billion in the previous year[35]. - The group’s operating profit for the six months was HKD 4,428 million, down from HKD 4,966 million in the previous year, reflecting a decrease of approximately 10.8%[48]. Dividends and Payouts - The interim dividend is set at HKD 0.67 per share, down from HKD 0.78 in 2020, with a total payout of HKD 2.03 billion, representing 65% of the underlying net profit from investment properties and hotels[4]. - The company declared an interim dividend of HKD 0.67 per share, totaling HKD 2,034 million, compared to HKD 0.78 per share and HKD 2,368 million in the previous year[55]. - The company paid dividends of HKD 2,095 million during the period, compared to HKD 2,824 million in the previous year, showing a decrease of approximately 25.8%[39]. Revenue and Occupancy Rates - The occupancy rate for Harbour City remained at 91%, with new brands introduced to attract customers[6]. - The overall revenue for Times Square decreased by 8%, with operating profit down 25%[10]. - The occupancy rate for office spaces in Tsim Sha Tsui slightly decreased to 82%, with revenue down 13% and operating profit down 15%[8]. - The hotel segment continues to be impacted by the lack of inbound travelers, despite a significant increase in hotel revenue compared to last year[5]. - The occupancy rate for office spaces in Central reached 95% for the Wheelock House and 94% for the Carfield Building, despite a 3% decline in revenue due to market rent adjustments[13]. - The investment property segment generated revenue of HKD 5,483 million, with an operating profit of HKD 4,310 million, while the development property segment reported revenue of HKD 1,402 million and an operating profit of HKD 146 million[42]. - The hotel segment recorded revenue of HKD 343 million but incurred an operating loss of HKD 208 million, indicating challenges in this area[42]. - The geographical breakdown shows that revenue from Hong Kong was HKD 5,729 million, while revenue from regions outside Hong Kong was HKD 1,756 million, indicating a diversified revenue stream[47]. Assets and Liabilities - Total assets amounted to HKD 278.3 billion, with 92% located in Hong Kong[23]. - The fair value of investment properties was reported at HKD 245.1 billion, with a revaluation loss of HKD 284 million[18]. - The group’s total assets as of June 30, 2021, were valued at HKD 278.3 billion, compared to HKD 277.9 billion in the previous year[36]. - Total liabilities decreased to HKD 66,134 million as of June 30, 2021, from HKD 68,505 million as of December 31, 2020, representing a reduction of approximately 3.9%[37]. - The total equity increased to HKD 212,169 million as of June 30, 2021, from HKD 209,409 million as of December 31, 2020, reflecting a growth of about 1.2%[37]. - The net debt decreased to HKD 50.4 billion, with a debt-to-equity ratio of 23.8%[28]. - The company’s total assets increased to HKD 278,303 million as of June 30, 2021, from HKD 277,914 million as of December 31, 2020, reflecting a marginal increase of approximately 0.14%[37]. Cash Flow and Financial Position - The group recorded a net cash inflow of HKD 37 billion from operating activities, a significant increase from HKD 10 billion in the previous year[31]. - Net cash inflow from operating activities for the six months ended June 30, 2021, was HKD 3,707 million, compared to HKD 969 million for the same period in 2020, indicating a significant increase of approximately 282.5%[39]. - The net cash used in investing activities was HKD 330 million for the six months ended June 30, 2021, compared to HKD 7,357 million in the same period of 2020, indicating a significant reduction in investment outflows[39]. - The group maintains a liquid investment portfolio valued at HKD 14.9 billion, an increase from HKD 13 billion in the previous year[30]. - The group’s financial resources are deemed sufficient to support business and investment activities, ensuring a robust financial position[30]. Debt and Interest Expenses - The company's average effective borrowing interest rate for the period was 1.4%, down from 2.3% in the previous year[50]. - The total interest expenses for the six months ended June 30, 2021, were HKD 330 million, a decrease of 38.6% compared to HKD 537 million in the same period of 2020[50]. - Total borrowings as of June 30, 2021, were HKD 53,350 million, slightly down from HKD 54,278 million at the end of the previous year[58]. Shareholder Information - As of June 30, 2021, major shareholders include CK Hutchison Holdings Limited and HSBC Trustee (C.I.) Limited, each holding 1,487,051,651 shares, representing 48.98% of the issued shares[74]. - The company’s major shareholder structure includes interests held through subsidiaries, with Big Heritage Limited holding 1,316,421,651 shares (43.36%)[75]. - The total number of shares held by director Wu Tianhai is 1,435,445, representing 0.0473% of the issued shares[72]. - The company reported that no directors held any short positions in the company as of June 30, 2021[72]. - The company has no records of any short positions held by directors or the CEO as of June 30, 2021[73]. Management and Governance - The company adopted a customized code of conduct for securities trading by directors in 2017, aligning with the standards set by the Listing Rules[70]. - The company’s board of directors includes eight members, with recent changes in executive roles noted[78]. - The company allows shareholders to change their communication preferences regarding company reports and announcements[78].