Financial Performance - The total revenue for the group reached HKD 16 billion as of December 31, 2018[10]. - The group's core properties, including Harbour City, recorded a 6% increase in underlying net profit to HKD 10.1 billion in 2018, compared to HKD 9.5 billion in 2017[16]. - Harbour City's retail sales surged by 24% in 2018, significantly outperforming the Hong Kong market average growth rate of 9%, reaching a record high of over HKD 37 billion[16]. - Total revenue decreased by 21% to HKD 16,481 million from HKD 20,904 million[22]. - Operating profit fell by 18% to HKD 12,724 million compared to HKD 15,442 million[22]. - Shareholders' profit attributable rose by 5% to HKD 18,027 million from HKD 17,218 million[22]. - The group's underlying net profit increased by 6% to HKD 10.53 billion, compared to HKD 9.5 billion in 2017[104]. - The group's profit attributable to shareholders increased by 5% to HKD 18.027 billion, compared to HKD 17.218 billion in 2017, with basic earnings per share rising to HKD 5.94 from HKD 5.67[108]. Asset Management - The total value of the group's asset portfolio amounted to HKD 274 billion, covering approximately 11.7 million square feet of floor area[10]. - The total assets of the group amounted to HKD 280.3 billion, with a net asset value of HKD 218.8 billion, equivalent to HKD 72.06 per share[18]. - The fair value of the investment property portfolio increased to HKD 259 billion, generating a revaluation gain of HKD 8.065 billion[106]. - Investment properties increased by 2% to HKD 259 billion, compared to HKD 253.8 billion in 2017, accounting for 94% of total operating assets[111]. Dividends and Shareholder Returns - The group declared a second interim dividend of HKD 1.05 per share, up from HKD 0.95 per share in 2017, totaling HKD 2.10 per share for the year[18]. - The total dividend for the fiscal year 2018 amounted to HKD 6.376 billion, representing 65% of the net profit from investment properties and hotels[1]. - The first interim dividend of HKD 1.05 per share was distributed on September 10, 2018, and the second interim dividend of HKD 1.05 per share is scheduled for April 23, 2019[1]. Market Position and Strategy - The company plans to continue expanding its portfolio in prime locations within Hong Kong[10]. - The group is well-positioned to capitalize on the opportunities presented by the Greater Bay Area and Belt and Road initiatives[21]. - The company aims to provide stable dividends and sustainable long-term growth potential through active management of its existing property portfolio and potential future acquisitions[122]. Corporate Social Responsibility - The group is committed to corporate social responsibility, actively supporting various community projects and educational initiatives[11]. - The total donations made by the group during the fiscal year amounted to HKD 26 million[2]. - The company continues to focus on community value creation through various community investment projects under its corporate social responsibility framework[4]. Governance and Compliance - The company has adhered to all provisions of the Corporate Governance Code as per the Hong Kong Stock Exchange Listing Rules for the fiscal year ending December 31, 2018, with certain exceptions noted[125]. - The board consists of ten directors, including five executive directors and five independent non-executive directors, ensuring a balanced and diverse skill set[130]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, regularly reviewing their terms of reference[149]. - The company has implemented a shareholder communication policy to ensure that shareholders can easily access unbiased and comprehensible information regarding financial performance and strategic goals[167]. Risk Management - The risk management and internal control systems are under the full responsibility of the board, which supervises and approves related strategies and policies[158]. - The group conducts a comprehensive review of its risk management and internal control systems at least annually, based on the COSO framework[162]. - The audit committee reviewed the effectiveness of the group's risk management and internal control systems for the fiscal year ending December 31, 2018, covering financial, operational, compliance, and risk management controls[165]. Operational Highlights - The company added over 80 new prestigious stores, enhancing its brand portfolio significantly[41]. - The average daily tenant sales at Harbour City reached over HKD 100 million[34]. - The company is undergoing a major tenant restructuring at Times Square, resulting in a slight revenue increase of 1% to HKD 2.841 billion[56]. - The company introduced several new brands and expanded existing stores to enhance the shopping experience, including high-end brands and digital experiences[57]. Future Outlook - The group anticipates continued growth in the hotel and retail sectors in 2019, despite global political and economic uncertainties[21]. - The company provided a positive outlook for the next quarter, projecting a revenue growth of 10% to 12%[192]. - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in market share by 2025[194].