希慎兴业(00014) - 2024 - 中期业绩

Revenue Performance - Revenue for the six months ended June 30, 2024, increased by 5.1% year-on-year to HKD 1,693 million, compared to HKD 1,611 million in 2023[3] - Revenue for the first half of 2024 increased by 5.1% to HKD 1,693 million compared to HKD 1,611 million in the same period of 2023[10] - Retail business revenue rose by 10.8% to HKD 844 million, driven by significant optimization works in the Lee Gardens area[10][13] - The office segment revenue slightly decreased by 0.1% to HKD 744 million, with Hong Kong office revenue down by 2.8%[16][17] - Revenue in Hong Kong decreased by 2.8% to HKD 720 million in the first half of 2024, compared to HKD 741 million in 2023[18] - Rental investment property revenue for the six months ended June 30, 2024, was HKD 759 million, up from HKD 635 million in the same period last year, representing a 19.5% increase[54] - Total segment revenue for the six months ended June 30, 2024, was HKD 844 million, an increase from HKD 744 million, marking a 13.4% growth[54] Profitability - Core recurring profit decreased by 0.7% year-on-year to HKD 1,019 million, down from HKD 1,026 million in 2023[3] - The net profit for the period was HKD 717 million, significantly up from HKD 333 million in 2023[41] - The company reported a profit of HKD 717 million for the six months ended June 30, 2024, compared to HKD 333 million in the same period of 2023, representing a significant increase[42] - Total comprehensive income for the period was HKD 668 million, a recovery from a loss of HKD 129 million in the previous year[43] - The group announced an interim dividend of HKD 0.27 per share, consistent with the previous year[11] - The company declared an interim dividend of HKD 0.81 per share for the first half of 2024, totaling HKD 832 million, compared to HKD 1.17 per share and HKD 1,202 million for the same period in 2023[64] Asset and Equity Management - The total equity attributable to shareholders decreased by 0.6% to HKD 66,779 million from HKD 67,182 million[4] - The company’s net assets amounted to HKD 78,525 million as of June 30, 2024, down from HKD 79,691 million at the end of 2023[46] - The company’s non-current assets increased to HKD 110,934 million as of June 30, 2024, up from HKD 110,274 million at the end of 2023[45] - The investment property valuation as of June 30, 2024, was HKD 96,535 million, a 0.6% increase from HKD 96,005 million at the end of 2023[28] - Total assets as of June 30, 2024, amounted to HKD 114,661 million, compared to HKD 114,526 million as of December 31, 2023, indicating a slight increase[58] Occupancy and Rental Performance - The occupancy rate for the Shanghai Lee Garden office reached 70% as of the end of the reporting period, reflecting significant success[2] - The occupancy rate for retail properties was 95% as of June 30, 2024, down from 97% at the end of 2023[13] - The occupancy rate in Hong Kong remained stable at 89% as of June 30, 2024, unchanged from December 31, 2023[18] - The average rental income from retail properties was HKD 72 million, down from HKD 87 million in 2023[13] - Residential rental revenue rose by 1.0% to HKD 105 million, with occupancy increasing to 68% from 60%[20] Investment and Development Projects - The new project at Caroline Hill Road is expected to be completed in the second half of 2026, expanding the Lee Garden area by nearly 30%[7] - The company is developing the Kadoorie Hill project, expected to be completed in 2026, enhancing its long-term growth strategy[21] - The company is optimistic about future developments in the Lee Gardens area, with major renovations expected to complete in the second half of 2024[13] - The company is optimistic about the growth of its shared workspace business in the Greater Bay Area, operating 36 centers in partnership with IWG plc[24] Financial Position and Debt Management - Total debt as of June 30, 2024, was HKD 26,737 million, an increase from HKD 25,717 million at the end of 2023[33] - The debt-to-equity ratio was 29.9% as of June 30, 2024, compared to 27.2% at the end of 2023[36] - The average debt maturity was 3.9 years as of June 30, 2024, down from 4.5 years at the end of 2023[33] - Financial expenses decreased to HKD 213 million from HKD 231 million in the first half of 2023, with a current effective interest rate of 4.4%[27] Challenges and Market Conditions - The company continues to face challenges in the retail sector due to changing consumer patterns and competition from other regions[13] - The company is focusing on enhancing its tenant mix and maintaining stable occupancy rates in the office sector despite rental pressure in the overall Hong Kong Grade A office market[2] Other Notable Developments - The company launched the URBANHOOD lifestyle space, further establishing its position as a cultural trendsetter among the younger generation[8] - The company launched a new membership app in Q2 2024, attracting over 60,000 new registrations within six weeks[15] - The company repurchased and canceled a total principal amount of USD 99,995,000 (approximately HKD 777 million) of its subordinated perpetual capital securities, representing about 11.76% of the initial issuance[69] - The company employed a total of 510 staff as of June 30, 2024, aligning its human resources policy with corporate goals for sustainable growth[70] - The company has maintained compliance with corporate governance standards throughout the reporting period[67]