HENDERSON LAND(00012)2024-08-21 09:41Financial Performance - The group's unaudited profit attributable to shareholders for the six months ended June 30, 2024, was HKD 54.44 billion, a decrease of HKD 6.32 billion or 10% compared to HKD 60.73 billion in the same period last year[3]. - Basic earnings per share for the period were HKD 1.12, down from HKD 1.25 in 2023[3]. - The group recorded a fair value loss of HKD 22.67 billion on investment properties, compared to a loss of HKD 1.16 billion in 2023[3]. - The interim dividend declared is HKD 0.50 per share, consistent with the previous year[3]. - The net profit attributable to shareholders decreased to HKD 3,174 million, down 46.3% from HKD 5,957 million year-on-year[69]. - The group reported a total tax expense of HKD 286 million for the six months ended June 30, 2024, compared to HKD 117 million in 2023, indicating a significant increase[89]. - The group reported a post-tax profit of HKD 159.2 million, compared to a post-tax loss of HKD 28.4 million in the same period last year[62]. - The group reported a net financing cost of HKD 579 million, a slight decrease from HKD 618 million in the previous year[68]. Revenue and Sales - The group's attributable revenue from property development in Hong Kong increased by 14% to approximately HKD 49.17 billion compared to the same period last year[5]. - The total contracted sales amount for self-owned properties in Hong Kong was approximately HKD 89.53 billion, an increase of 33% year-on-year[5]. - The revenue from property sales for the period is approximately RMB 2.588 billion (around HKD 2.851 billion), a decrease of 10% compared to the same period last year[39]. - The total self-owned contract sales amount to approximately RMB 1.827 billion, a significant decrease of 48% year-on-year, with a corresponding sales area of about 120,000 square feet, down 49%[39]. - The total revenue for the six months ended June 30, 2024, was HKD 11,762 million, representing a 14.5% increase from HKD 10,278 million in the same period last year[68]. - The property development revenue, including property sales, reached HKD 4,943 million, up from HKD 4,337 million, reflecting a growth of 14.0%[79]. - The overall revenue from the hotel and serviced apartment business increased by 11.1% to HKD 296.9 million, with EBITDA rising by 15.1% to HKD 75.4 million compared to the previous year[48]. Property Development and Projects - The company has 28 ongoing development projects with a total remaining saleable area of approximately 2,040,595 square feet, of which 1,455,491 square feet are residential units[9]. - The company plans to launch several residential projects, including "Belgravia Place" Phase 1, which sold all 138 units on the first day of sale[5]. - The company plans to launch several projects in the second half of 2024, including a residential project at 472,067 square feet with 172 units, and a mixed-use project at 1,205,061 square feet[13]. - The company is currently redeveloping two old properties, expected to provide approximately 900,000 square feet of self-owned floor area upon completion[14]. - The company has acquired 80% to 100% ownership in 24 urban redevelopment projects, with an estimated self-owned floor area of 1,134 square feet[16]. - The company has a total of 3,993,421 square feet of projected floor area from ongoing and future redevelopment projects[15]. - The company is actively pursuing market expansion through new projects and redevelopment strategies[14]. Land and Property Holdings - The company owns land reserves of approximately 23.5 million square feet as of June 30, 2024, including 11.1 million square feet of properties under development[22]. - The group holds approximately 45.1 million square feet of New Territories land, making it the developer with the largest land reserve in Hong Kong[25]. - The group expects to receive cash compensation of approximately HKD 3.9 billion for 3.5 million square feet of land in the Hung Shui Kiu/Xia Village development area, contributing to an estimated pre-tax profit of approximately HKD 3.1 billion for the fiscal year ending December 31, 2024[25]. - The company has acquired properties with a total expected self-occupied floor area of approximately 1,954,427 square feet from various redevelopment projects[19]. - The company has a significant portion of its land reserves, approximately 380,000 square feet, pending land premium agreements for development[22]. Rental Income and Occupancy - The total rental income attributable to the group for the six months ending June 30, 2024, increased by 3% to HKD 3.403 billion, while the pre-tax net rental income rose by 2% to HKD 2.512 billion[27]. - The average occupancy rate of the group's rental properties in Hong Kong was 93% as of June 30, 2024[27]. - The office property portfolio maintained a stable occupancy rate of approximately 90%, despite a challenging rental environment in Hong Kong[30]. - The group's retail property portfolio maintained stable occupancy rates, with some malls exceeding pre-pandemic traffic and tenant sales levels[29]. - The occupancy rate of "AIA Tower" in North Point remains above 90%, reflecting strong tenant relationships[30]. Financial Position and Debt - The group's net debt stood at HKD 71.02 billion, with a debt-to-equity ratio of 22.0%[64]. - The company’s total liabilities increased to HKD 137,898 million from HKD 138,316 million, a slight decrease of 0.3%[72]. - The company’s bank borrowings decreased significantly to HKD 12,421 million from HKD 24,500 million, a reduction of 49.3%[71]. - The group confirmed a gain of HKD 1,407,000,000 from the sale of a wholly-owned subsidiary, completed on January 28, 2024[151]. - The group recognized a gain of HKD 1,096,000,000 from the compensation for land recovery by the Hong Kong government, marking a significant increase from zero in the previous year[152]. Sustainability and Corporate Governance - The group has received preliminary platinum-level certification from BEAM Plus for its new construction projects, indicating a commitment to sustainability[23]. - The group received multiple awards for sustainable development, including the "Outstanding Sustainable Enterprise Award" in the Hong Kong ESG Green Development and Carbon Neutrality Awards[65]. - The group is committed to setting science-based net-zero emissions targets to meet the requirements of the Paris Agreement[65]. - The group has complied with the Corporate Governance Code as per the Hong Kong Stock Exchange Listing Rules during the six months ended June 30, 2024[158]. Challenges and Market Conditions - For the six months ended June 30, 2024, Hang Fat reported a loss attributable to shareholders of HKD 69 million, compared to a loss of HKD 18 million in the same period last year, primarily due to a decline in retail sales caused by outbound travel and cross-border shopping trends[44]. - Citistore's total sales, including consignment and licensed counters, decreased by 13% year-on-year, with self-operated product sales dropping 10% to HKD 146 million and a gross margin decline to 31%[45]. - The company is reviewing store performance to streamline its network and improve operational efficiency amid a challenging retail environment[46]. - The company anticipates stable gas sales in Hong Kong for 2024, with further growth expected in the mainland's city gas and natural gas businesses[57].