Financial Performance - Group revenue decreased by 22% to HKD 12.459 billion (2021: HKD 16.043 billion) primarily due to the phased withdrawal from non-core property development [12]. - Basic net profit fell by 5% to HKD 6.175 billion (2021: HKD 6.518 billion), while the loss attributable to shareholders was HKD 8.856 billion (2021: profit of HKD 4.391 billion) reflecting a 302% decline [12]. - Total revenue for the year 2022 increased by 2% to HKD 8,175 million, with operating profit rising by 7% to HKD 6,345 million [18]. - Total revenue for 2022 was HKD 12,459 million, a decrease of 22.4% from HKD 16,043 million in 2021 [188]. - Operating profit for 2022 was HKD 8,841 million, down 2.5% from HKD 9,064 million in 2021 [188]. - The company reported a net loss of HKD 8,943 million for 2022, compared to a profit of HKD 4,439 million in 2021 [188]. - The fair value of investment properties decreased by HKD 14,913 million in 2022, compared to a decrease of HKD 2,203 million in 2021 [188]. - Total assets as of December 31, 2022, were HKD 255,249 million, down from HKD 272,268 million in 2021 [191]. - The company reported a total comprehensive income of HKD 5,684 million for 2021, which decreased to a loss of HKD 11,674 million in 2022, reflecting a significant decline in performance [192]. Market Conditions - In 2022, the retail sales in Hong Kong recorded a moderate year-on-year decline of 0.8%, primarily due to fewer tourists and contributions from the local market [7]. - The overall market environment remains challenging, with increased competition and cautious tenant behavior impacting leasing decisions [30]. - The group continues to face challenges from external uncertainties, including inflation and geopolitical tensions, impacting consumer behavior and asset prices [7]. - The hotel sector is preparing for the return of travelers, although facing challenges related to labor shortages [14]. - The outlook for 2023 anticipates gradual recovery in the retail and hotel sectors as travel resumes, despite initial challenges such as limited flight availability and labor shortages [11]. Corporate Governance - The group maintains a robust governance structure to address environmental, social, and governance challenges, led by a dedicated sustainability steering committee [52]. - The company has implemented a zero-tolerance policy towards corruption and strictly adheres to anti-corruption laws and regulations [52]. - The board consists of 12 members, with 4 executive directors and 8 independent non-executive directors, enhancing overall independence and diversity [86]. - The company has adopted a board diversity policy, recognizing the benefits of a diverse board for enhancing overall performance [86]. - The company has established a set of securities trading codes that exceed the standards set by the Listing Rules, ensuring compliance among all directors during the fiscal year [97]. Sustainability Initiatives - The group aims to achieve long-term goals by 2030, including reducing greenhouse gas emissions and water usage, while maintaining sustainable business performance [6]. - The company emphasizes long-term positive social impact and environmental sustainability, aligning its business strategies with the United Nations Sustainable Development Goals [51]. - The company has set long-term environmental goals for 2030, including reducing direct emissions and electricity consumption [54]. - The group secured a sustainable development performance-linked loan of HKD 500 million in 2022 to support its sustainability commitments [55]. - The company is integrating environmental measures to formulate a carbon neutrality roadmap in support of Hong Kong's Climate Action Blueprint 2050 [55]. Investment Properties - Investment properties account for 90% of the group's total assets, primarily located in Hong Kong, making the group vulnerable to economic conditions and regulatory changes in the region [172]. - Revenue from investment properties represented 85% of the company's total income for the year ending December 31, 2022 [183]. - The company emphasizes the importance of accurate valuation of investment properties due to their significant impact on overall profit, with small errors potentially leading to substantial financial misstatements [182]. - The company employs external valuation firms to assess the fair value of investment properties, ensuring independence and objectivity in the valuation process [182]. - The rental income may be adversely affected by oversupply in shopping malls and office spaces, leading to potential adjustments in rental levels due to external economic factors [172]. Community Engagement - The group was recognized as the second highest fundraising organization for the Community Chest for two consecutive years and holds an AA+ rating in the Hang Seng Sustainability Index [6]. - The group is committed to corporate social responsibility through various community projects, including art scholarships and design internship programs [5]. - The "School Activation" program has supported over 87,000 students through partnerships with over 70 organizations since its launch in 2011 [57]. - The group reported a total donation of HKD 44 million during the fiscal year [138]. Financial Position - The total assets as of December 31, 2022, amounted to HKD 255.324 billion, with net asset value per share decreasing to HKD 62.70 (2021: HKD 67.89), an 8% decline [12]. - The group maintained a stable debt-to-equity ratio of 23.2%, with net debt reduced by HKD 2.385 billion to HKD 45.149 billion [12]. - The company has a strong financial position with a liquid investment portfolio valued at HKD 13.1 billion [73]. - The company’s total equity decreased from HKD 210,876 million at the beginning of 2022 to HKD 194,881 million by the end of the year, indicating a decline in shareholder value [192]. - The company’s cash and cash equivalents decreased from HKD 1,800 million at the beginning of 2022 to HKD 1,340 million at the end of the year, reflecting liquidity challenges [193].

Financial Performance - The group's unaudited net profit increased by 3% to HKD 3.37 billion, equivalent to HKD 1.11 per share, compared to HKD 3.27 billion or HKD 1.08 per share in the previous year[5]. - The group reported a net loss attributable to shareholders of HKD 1.468 billion due to an investment property revaluation loss of HKD 50.39 billion, compared to a profit of HKD 2.97 billion in the previous year[5]. - Basic net profit increased by 3% to HKD 3.37 billion, while investment property profit also rose by 3% to HKD 3.42 billion[18]. - The group recorded a revenue of HKD 6,210 million for the six months ended June 30, 2022, down from HKD 7,485 million in 2021[38]. - The group reported a loss attributable to shareholders of HKD 1,468 million for the six months ended June 30, 2022, compared to a profit of HKD 2,970 million in 2021[38]. - The company reported a loss of HKD 1,530 million for the six months ended June 30, 2022, compared to a profit of HKD 2,954 million in the same period of 2021[39]. - The company’s comprehensive loss for the period totaled HKD 4,967 million, compared to a comprehensive income of HKD 4,869 million in the prior year[39]. - The total revenue for the group was HKD 6,210 million, down from HKD 7,485 million in the same period of 2021, representing a decrease of approximately 17%[46]. - The operating profit for the group was HKD 4,446 million, compared to HKD 4,428 million in the previous year, indicating a slight increase[46]. Dividends and Shareholder Returns - The interim dividend is set at HKD 0.70 per share, totaling HKD 2.125 billion, which represents 65% of the net profit from investment properties and hotels[6]. - The first interim dividend declared was HKD 0.70 per share, totaling HKD 2,125 million, compared to HKD 0.67 per share or HKD 2,034 million in 2021[57]. Revenue and Market Performance - Overall revenue decreased by 17%, primarily due to reduced contributions from the listed subsidiary, Harbour Enterprises[7]. - The retail sector faced a 2.6% decline in sales, with the group implementing marketing strategies to stimulate sales post-pandemic[7]. - The group's shopping mall revenue increased by 1%, and operating profit rose by 6% despite ongoing retail market competition[7]. - The overall revenue for Times Square decreased by 15%, with operating profit down by 3% due to market challenges[12]. - The hotel segment reported a revenue increase of 7% to HKD 366 million, with losses narrowing to HKD 172 million[19]. - Investment property revenue amounted to HKD 5,360 million, down from HKD 5,483 million in the previous year, reflecting a decrease of 2.2%[49]. - Revenue from hotel operations increased to HKD 366 million, compared to HKD 343 million in 2021, representing a growth of 6.7%[49]. Assets and Liabilities - Total assets reached HKD 266.1 billion, with 93% located in Hong Kong[25]. - Total assets decreased to HKD 266,103 million as of June 30, 2022, down from HKD 272,268 million at the end of 2021[40]. - Non-current assets, including investment properties, decreased to HKD 259,862 million from HKD 266,879 million[40]. - Total liabilities increased slightly to HKD 62,196 million from HKD 61,392 million[41]. - Net assets decreased to HKD 203,907 million from HKD 210,876 million[41]. - The company’s equity attributable to shareholders decreased to HKD 199,329 million from HKD 206,106 million[41]. Debt and Financing - Net debt decreased by HKD 7 billion to HKD 468 billion as of June 30, 2022, compared to HKD 475 billion in 2021[29]. - The debt-to-equity ratio increased to 23.0% from 22.5% in the previous year[31]. - Total bank borrowings and other borrowings as of June 30, 2022, were HKD 49,046 million, slightly down from HKD 49,334 million as of December 31, 2021[61]. - Current borrowings (due within one year) increased to HKD 5,250 million from HKD 4,500 million, a rise of 16.7%[61]. - Total finance costs for the period were HKD 609 million, compared to HKD 359 million in 2021, indicating an increase of 69.5%[53]. Operational Metrics - The occupancy rate for office spaces increased to 87% as of June 2022, with revenue and operating profit both rising by 3%[10]. - The office rental rates for K. Wah Centre and Carvery Centre were 92% and 98% respectively as of June 2022, while retail spaces were fully leased[15]. - The rental rates for the retail properties in Singapore were 96% for K. Wah Plaza and 89% for Scotts Square as of June 2022[17]. Employee and Governance - The group employed approximately 2,700 staff as of June 30, 2022, with compensation based on job responsibilities and market trends[37]. - The total annual remuneration for the directors has seen changes, with the highest being HKD 3,631,000 for Wu Tianhai, an increase from HKD 3,558,000 in the previous year[79]. - The company has complied with the corporate governance code, except for one provision regarding the separation of the roles of Chairman and CEO, which is deemed appropriate for strategic execution[72]. Future Commitments and Investments - Total capital commitments for the coming years are estimated at HKD 13 billion, with HKD 5 billion already incurred[35]. - The company has unspent commitments totaling HKD 1.33 billion, with HKD 516 million already incurred and HKD 819 million yet to be incurred as of June 30, 2022[16]. - The company has a commitment of HKD 9.62 billion related to joint ventures in mainland China, an increase from HKD 8.93 billion as of December 31, 2021[70].

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].

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].