恒隆集团(00010) - 2024 - 中期财报

Financial Performance - Property sales reached HKD 1.2 billion, contributing to a total revenue increase of 15% to HKD 6.4 billion[6] - Total revenue for the first half of 2024 reached HKD 6,379 million, a decrease of 15% compared to HKD 5,525 million in the same period of 2023[11] - Operating profit for the first half of 2024 was HKD 3,613 million, down from HKD 4,034 million in the same period of 2023, reflecting a decline of 10%[11] - Shareholders' attributable net profit for the first half of 2024 was HKD 1,281 million, a decrease of 18% from HKD 1,560 million in the same period of 2023[11] - The company's profit for the six months ended June 30, 2024, was HKD 1,526 million, a decrease of 47.5% compared to HKD 2,909 million in the same period of 2023[81] - Basic earnings per share for the period were HKD 0.65, down from HKD 1.24 in the same period last year, reflecting a decline of 47.6%[80] Revenue Breakdown - Core business (recurring rental income) decreased by 7% to HKD 5.2 billion, while basic rental profit attributable to shareholders fell by 18% to HKD 1.3 billion[6] - Property leasing income decreased by 7% to HKD 5.151 billion, impacted by a decline in luxury goods consumption in mainland China and a weak retail market in Hong Kong[16] - Rental income decreased to HKD 4,464 million in 2024 from HKD 4,824 million in 2023, representing a decline of 7.5%[91] - The overall leasing income in Hong Kong fell by 8%, with a corresponding 11% decline in operating profit due to a slow market recovery[16] - Retail property revenue fell by 7% to HKD 950 million, with a tenant sales decline of 3% and an overall occupancy rate maintained at 97%[29] Expenses and Financial Costs - Interest expenses increased by 46% compared to the same period in 2023, significantly impacting basic profit[6] - Total financial expenses increased by 19% when including capitalized interest[6] - The average effective borrowing rate rose to 4.4% in the first half of 2024, leading to a 19% increase in total financial costs to HKD 1,069 million[47] - The net interest expense increased to HKD 421 million in 2024 from HKD 265 million in 2023[95] Market Conditions - Tenant sales in Shanghai shopping malls dropped over 20%, leading to a 13% decline in tenant sales across the mainland property portfolio[6] - Consumer confidence remains low, contributing to a 4% decline in tenant sales in shopping malls outside Shanghai[7] - The company anticipates challenges in the first half of 2024, with expectations for tenant sales to recover diminishing as of June[6] - The macroeconomic environment remains uncertain, with high interest rates expected to persist, but a trend towards rate cuts is anticipated to improve global economic sentiment[52] Debt and Equity - The company expects debt and interest levels to peak at around 35% in two years, which is considered acceptable[8] - The net debt-to-equity ratio increased to 30.2% as of June 30, 2024, compared to 28.6% as of December 31, 2023[12] - Total borrowings reached HKD 53,715 million, up from HKD 50,693 million as of December 31, 2023, with 35% denominated in RMB[41] - The company has prioritized debt repayment over dividends and new investments until the debt situation improves[8] Sustainability Initiatives - The collaboration with LVMH has entered its second year, enhancing the company's sustainability efforts[9] - The "Changemakers: Tenant Sustainability Collaboration Program" was launched in December 2023, involving 16 tenants across 14 properties with a total leased area of over 78,000 square meters[50] - The company has transitioned half of its operational properties in mainland China to renewable energy, exceeding its 2025 sustainability target[49] Shareholder Information - The company declared an interim dividend of HKD 0.21 per share, consistent with the previous year[15] - Major shareholder Chen Wenbo holds 551,502,580 shares, representing 40.50% of the total issued shares[70] - The total number of shares held by Hang Lung Properties Limited is 3,008,256,189, accounting for 63.85% of the total issued shares[60] Future Outlook - The company plans to continue optimizing tenant mix and enhancing customer experience to drive foot traffic and stimulate consumer spending[16] - The demand for office space is expected to remain weak in the second half of 2024 due to ongoing challenges in Hong Kong's retail environment[52] - The company plans to continue selling high-end serviced apartments, including those in Wuhan, Kunming, and Wuxi, leveraging superior product and property management services[52]