希慎兴业(00014) - 2024 - 中期财报

Financial Performance - Revenue increased by 5.1% year-on-year to HKD 1,693 million, while recurring basic profit decreased by 0.7% to HKD 1,019 million[4] - Revenue for the six months ended June 30, 2024, increased by 5.1% to HKD 1,693 million compared to HKD 1,611 million in 2023[12] - The group reported a basic profit of HKD 427 million for the period, significantly up from HKD 190 million in the previous year[14] - The net profit for the six months ended June 30, 2024, was HKD 717 million, significantly higher than HKD 333 million in the prior year, representing a 115.6% increase[49] - Basic earnings per share increased to HKD 0.42 from HKD 0.19, marking a 121.1% rise year-over-year[48] - The company reported a total comprehensive income of HKD 668 million for the period, compared to a loss of HKD 129 million in the same period last year[49] - The company’s total assets as of June 30, 2024, were reported at HKD 79,691 million, compared to HKD 78,525 million at the end of the previous period, showing an increase of 1.5%[54] Revenue Breakdown - Retail business revenue rose by 10.8% to HKD 844 million, while office revenue slightly decreased by 0.1% to HKD 744 million[12][18] - Total revenue for the six months ended June 30, 2024, was HKD 1,693 million, with rental income from investment properties contributing HKD 1,486 million and property management service income contributing HKD 207 million[61] - The segment revenue breakdown includes HKD 844 million from retail shops, HKD 744 million from office spaces, and HKD 105 million from residential properties[61] Dividends and Equity - The company maintained an interim dividend of HKD 0.27 per share, unchanged from the previous year[4] - The company declared an interim dividend of HKD 0.27 per share, consistent with the previous year[13] - The company paid dividends amounting to HKD 832 million during the period, a decrease from HKD 1,202 million in the same period last year, representing a reduction of 30.8%[55] - The total equity attributable to shareholders decreased by 0.6% to HKD 66,779 million, with net asset value per share at HKD 65.0[4] Investment and Development - The new project at Gage Road is expected to be completed in the second half of 2026, expanding the area by nearly 30%[7] - The commercial property development project at Caroline Hill Road is progressing well and is expected to be completed by 2026, marking a significant milestone for the company's long-term development plan[23] - The company is committed to sustainable development, with several properties achieving green building certifications[10] - The healthcare investment project, New Wind Tianyu Group, showed steady performance and continued growth in the first half of 2024[7] Market Conditions - The office leasing market remains competitive, with high occupancy rates supported by quality building specifications and sustainable features[10] - The company continues to face challenges in the retail sector due to changing consumer behavior and competition from other regions[15][16] - The company is focusing on enhancing the shopping experience to adapt to changing consumer preferences post-pandemic[8] Financial Position - Total debt as of June 30, 2024, was HKD 26,737 million (December 31, 2023: HKD 25,717 million), with an average debt maturity of 3.9 years[36] - Debt-to-equity ratio as of June 30, 2024, was 29.9% (December 31, 2023: 27.2%), and the net interest coverage ratio was 10.8 times (2023: 10.3 times)[40] - Cash and bank deposits totaled approximately HKD 3,057 million as of June 30, 2024 (December 31, 2023: HKD 3,854 million), with an additional HKD 900 million invested in investment-grade debt securities[41] - The company’s financial expenses for the period were HKD 499 million, up from HKD 459 million in the previous year, indicating an increase of 8.7%[55] Governance and Compliance - The company has maintained compliance with the corporate governance code throughout the review period, ensuring high standards of governance[100] - The company adopted a hybrid format for its annual general meeting on June 5, 2024, enhancing shareholder participation and transparency[103] - The board's composition as of June 30, 2024, includes a mix of executive and independent non-executive directors, ensuring diverse perspectives[105] Employee and Remuneration - The company's employee costs, including directors' remuneration, were HKD 164 million for the six months ended June 30, 2024, slightly down from HKD 165 million in the same period of 2023[69] - The total remuneration for directors and senior management for the six months ended June 30, 2024, was HKD 27 million, a decrease from HKD 30 million in 2023, indicating a reduction of 10%[88] - The remuneration policy aims to attract and retain top executives while aligning rewards with company performance and shareholder interests[110] Share Options and Awards - The 2015 Share Option Scheme has an available share limit of 98,655,673 shares, approximately 9.61% of the total issued shares[121] - The 2024 Share Award Plan was adopted on January 19, 2024, with a maximum share limit of 20,540,164 shares, representing approximately 2% of the company's issued share capital as of the adoption date[130][131] - The maximum number of shares that can be awarded to any selected employee is capped at 0.5% of the company's issued share capital, equivalent to 5,135,041 shares[131]