九龙仓集团(00004) - 2024 - 中期财报

Financial Performance - The group's underlying net profit increased by 9% to HKD 1.979 billion, compared to HKD 1.81 billion in the previous year, primarily due to a reduction in property impairment provisions to HKD 560 million from HKD 1.033 billion [2]. - The group reported a loss attributable to shareholders of HKD 26.373 billion, compared to a profit of HKD 6.969 billion in the previous year, after accounting for non-cash impairment losses on investment properties [2][11]. - Group revenue decreased by 14% to HKD 7.032 billion (2023: HKD 8.133 billion) and operating profit decreased by 2% to HKD 3.085 billion (2023: HKD 3.139 billion) [13]. - The net loss for the period was HKD 2,558 million, compared to a profit of HKD 735 million in the same period last year, indicating a significant downturn [38]. - The group reported a total comprehensive loss of HKD 7,631 million for the period, compared to a loss of HKD 5,420 million in 2023 [38]. Revenue Breakdown - Revenue from the development properties segment decreased by 2% to HKD 305 million, while operating profit surged by 113% to HKD 179 million [5]. - Overall revenue from the mainland investment properties segment fell by 4% to HKD 2.326 billion, with operating profit declining by 6% to HKD 1.551 billion [6]. - Investment property income decreased by 5% to HKD 2.364 billion (2023: HKD 2.488 billion) and operating profit decreased by 6% to HKD 1.573 billion (2023: HKD 1.679 billion) due to soft rental rates in mainland shopping malls and offices [12]. - Development property revenue fell by 25% to HKD 2.028 billion (2023: HKD 2.688 billion), but operating profit increased to HKD 387 million (2023: HKD 54 million) with an overall operating margin of 19% (2023: 2%) due to the completion of a project in Hangzhou [12]. - The hotel segment's revenue decreased by 2% to HKD 291 million, with operating profit plummeting by 73% to HKD 12 million [8]. Dividends and Shareholder Returns - The interim dividend remains unchanged at HKD 0.20 per share, with a total payout of HKD 610 million, consistent with the previous year [3]. - The company's interim dividend declared was HKD 0.20 per share, totaling HKD 611 million, consistent with the previous year [59]. Debt and Financial Position - The group maintains a low debt ratio of 6.2%, with most borrowings denominated in RMB to mitigate the impact of high U.S. interest rates [4]. - Net debt increased by 11% to HKD 8.7 billion, with a debt-to-equity ratio of 6.2% [27]. - The group recognized a tax expense of HKD 2,985 million for the period, compared to HKD 676 million in 2023, influenced by deferred tax adjustments [56]. - The average effective borrowing interest rate decreased to 3.9% for the period, compared to 4.9% in 2023 [54]. Market Conditions and Outlook - The business outlook remains uncertain due to economic instability, geopolitical risks, and challenges in the mainland real estate market, prompting the group to adopt a cautious financial strategy [10]. - The mainland China market contributed HKD 5,028 million in revenue, down from HKD 5,876 million in the previous year, indicating a decline of about 14.4% [51]. Assets and Investments - Total operating assets decreased by 7% to HKD 178.7 billion, with real estate, logistics, and investment assets accounting for 69%, 10%, and 21% respectively [22]. - Long-term investments valued at HKD 37.7 billion, with a fair value loss of HKD 4.9 billion during the period [25]. - The fair value change of equity investments resulted in a loss of HKD 4,920 million for the period, compared to a loss of HKD 4,224 million in the previous year [38]. Employee and Management Information - The group employed approximately 5,700 staff as of June 30, 2024, with around 1,000 in management roles [36]. - The annual remuneration for the chairman is set at HKD 350,000 for 2024, an increase from HKD 300,000 in 2023 [87]. - The annual remuneration for directors (excluding the chairman) is now HKD 300,000, up from HKD 250,000 in 2023 [87]. Corporate Governance - The company has complied with the corporate governance code, with the exception of the chairman and CEO roles being held by the same individual, deemed appropriate for strategic execution [76]. - All directors have adhered to the company's securities trading code during the reporting period [77].