九龙仓置业(01997) - 2024 - 中期财报

Financial Performance - The group's basic net profit increased by 2% to HKD 3.123 billion, compared to HKD 3.059 billion in 2023, equivalent to HKD 1.03 per share[5] - The group recorded an unrealized revaluation loss of investment properties amounting to HKD 4.426 billion, leading to a loss attributable to shareholders of HKD 1.052 billion, compared to a profit of HKD 1.805 billion in 2023[5] - Total revenue remained stable at HKD 6.501 billion, slightly up from HKD 6.473 billion in 2023, while operating profit decreased by 1% to HKD 4.915 billion[16] - Investment property revenue increased by 2% to HKD 5.542 billion, with operating profit rising by 1% to HKD 4.718 billion[16] - Hotel revenue rose by 7% to HKD 748 million, but operating profit decreased by 64% to HKD 24 million[16] - The attributable loss to shareholders was HKD 1.052 billion, a significant decline from a profit of HKD 1.805 billion in the previous year, resulting in a basic loss per share of HKD 0.35[22] - The total comprehensive income for the period was a loss of HKD 1,052 million, which includes a loss of HKD 795 million from investments[46] - The company reported a loss attributable to shareholders of HKD 10.52 billion for the six months ended June 30, 2024, compared to a profit of HKD 18.05 billion for the same period in 2023[69] Dividends and Shareholder Returns - The first interim dividend is set at HKD 0.64 per share, down from HKD 0.67 per share in 2023, totaling HKD 1.943 billion[6] - The company paid an interim dividend of HKD 1,852 million, consistent with the previous year, reflecting a stable dividend policy[48] - The interim dividend declared is HKD 0.64 per share, totaling HKD 1.943 billion, down from HKD 0.67 per share and HKD 2.034 billion in the previous year[71] Market Conditions and Economic Outlook - The retail sales in Hong Kong showed a significant decline in the second quarter, reversing the post-pandemic recovery trend[7] - The office rental market remains under pressure, with an occupancy rate of 88% as of June, and rental income down by 2%[9] - The group anticipates that uncertainties from global economic slowdown and geopolitical tensions will continue to impact the local economy[13] Financial Position and Assets - Total assets reached HKD 238.9 billion, down from HKD 245.3 billion at the end of the previous year, with 95% of assets located in Hong Kong[24] - Investment properties accounted for HKD 223 billion, representing 94% of total operating assets, with Harbour City valued at HKD 151.6 billion and Times Square at HKD 46 billion[25] - Net debt decreased by HKD 1.2 billion to HKD 35.1 billion, with a net debt to total equity ratio declining to 18.3% from 18.6%[30][32] - The total assets of the group as of June 30, 2024, amounted to HKD 238.9 billion, a decrease from HKD 245.3 billion as of December 31, 2023[44] - The net asset value of the group as of June 30, 2024, was HKD 191.6 billion, down from HKD 195.6 billion at the end of 2023[44] Cash Flow and Financial Management - The group recorded an operating cash inflow of HKD 4.9 billion for the period, primarily from rental income, resulting in a net cash inflow of HKD 3.3 billion from operating activities[35] - The company reported a net cash inflow from operating activities of HKD 3,261 million, compared to HKD 3,174 million for the same period in 2023, representing an increase of 2.7%[48] - The company reported a decrease in financing cash outflows to HKD 3,338 million for the current period, down from HKD 8,226 million in the previous year, indicating improved cash management[48] - The company’s investment activities resulted in a net cash outflow of HKD 66 million, a significant decrease from the previous year's inflow of HKD 4,708 million, highlighting a shift in investment strategy[48] Financial Expenses and Taxation - Financial expenses totaled HKD 882 million, down from HKD 990 million in the previous year, with an effective borrowing interest rate rising to 5.7% from 4.7%[19] - Tax expenses decreased by 3% to HKD 607 million, compared to HKD 627 million in the previous year[20] - The tax expense for the six months ended June 30, 2024, was HKD 607 million, compared to HKD 627 million for the same period in 2023[67] Employee and Compensation - The company has approximately 2,900 employees as of June 30, 2024, with compensation based on job responsibilities and market trends[38] - The annual remuneration for the chairman increased from HKD 300,000 in 2023 to HKD 350,000 in 2024, representing a 16.67% increase[104] - The annual remuneration for non-chairman directors increased from HKD 250,000 in 2023 to HKD 300,000 in 2024, reflecting a 20% increase[104] Share Options and Ownership - The company has granted a total of 3,500,000 share options to directors under the share option plan, representing 0.12% of the total issued shares[99] - The average exercise price for the share options is HKD 36.58, with a vesting period starting from August 14, 2024[93] - Major shareholders include BlackRock Group with 153,217,040 shares (5.05%) and a short position of 5,108,000 shares (0.17%)[96] - The company has no outstanding or expired share options for directors during the financial period[94] Investment Properties and Future Plans - The investment property segment primarily involves leasing and management, with a focus on shopping malls, offices, and serviced apartments located mainly in Hong Kong[53] - The company plans to continue expanding its investment properties and hotel operations to drive future growth[59]