LAI SUN DEV(00488)2024-11-13 10:55Financial Performance - Revenue for the fiscal year ending July 31, 2024, was HKD 5,998.9 million, a 22.4% increase compared to HKD 4,901.5 million in the previous year[14] - Gross profit increased significantly to HKD 1,529.9 million, with a gross margin of 26%, up from 15% in the previous year[14] - Operating loss improved to HKD 1,589.4 million, with an operating loss rate of -26%, compared to -47% in the previous year[14] - Net loss attributable to the company's owners was HKD 3,674.7 million, with a net loss rate of -61%, consistent with the previous year[14] - Total equity attributable to the company's owners decreased to HKD 25,810.1 million from HKD 29,783.6 million in the previous year[14] - Net debt increased slightly to HKD 21,149.8 million, with a net debt-to-equity ratio of 82%, up from 70% in the previous year[14] - Earnings per share (EPS) for the year was a loss of HKD 2.528, compared to a loss of HKD 2.448 in the previous year[14] - The company's share price as of July 31, 2024, was HKD 0.660, down from HKD 1.370 in the previous year[14] - The company's market capitalization as of July 31, 2024, was HKD 959.2 million, a significant decrease from HKD 1,991.1 million in the previous year[14] - The company did not declare any dividends for the fiscal year[14] - Adjusted EBITDA increased to HKD 1,151,500,000, up 46.4% year-on-year[15] - Total revenue for the year reached HKD 5,998,900,000, a 22.4% increase compared to the previous year[17] - Gross profit for the year was HKD 1,529,900,000, significantly higher than the previous year's HKD 727,700,000[17] - The company's loss attributable to owners increased to HKD 3,674,700,000, up from HKD 2,966,000,000 in the previous year[18] - Adjusted EBITDA for the group was HKD 1,151.5 million in 2024, compared to HKD 786.6 million in 2023, reflecting a significant improvement[20][21] - The group's operating loss under Hong Kong Financial Reporting Standards was HKD 1,589.4 million in 2024, down from HKD 2,310.2 million in 2023[20] - The company's adjusted net loss attributable to owners was HKD 913.8 million in 2024, compared to HKD 1,025.4 million in 2023, showing a reduction in losses[22][24] - The fair value loss on investment properties held by the group was HKD 817.3 million in 2024, slightly higher than HKD 812.7 million in 2023[20][22] - The impairment loss on properties held by the group was HKD 688.9 million in 2024, significantly lower than HKD 1,353.0 million in 2023[20][22] - The company's equity attributable to owners decreased to HKD 25,810.1 million in 2024 from HKD 29,783.6 million in 2023[24] - The net asset value per share attributable to owners dropped to HKD 17.759 in 2024 from HKD 20.493 in 2023[24] - No final dividend was recommended for the fiscal year ending July 31, 2024, and no interim dividend was declared during the year[25] - Revenue for 2024 increased to 5,998,861 thousand HKD, up 22.4% from 4,901,537 thousand HKD in 2023[162] - Pre-tax loss for 2024 was 3,728,347 thousand HKD, an increase of 6.7% from 3,493,939 thousand HKD in 2023[162] - Annual loss for 2024 was 4,124,618 thousand HKD, up 20.1% from 3,434,712 thousand HKD in 2023[162] - Investment properties decreased to 34,677,018 thousand HKD in 2024 from 35,751,721 thousand HKD in 2023, a decline of 3%[163] - Total assets decreased to 67,421,570 thousand HKD in 2024 from 73,970,016 thousand HKD in 2023, a reduction of 8.9%[163] - Total liabilities decreased to 35,113,990 thousand HKD in 2024 from 37,108,190 thousand HKD in 2023, a decline of 5.4%[163] - Non-controlling interests decreased to 6,497,453 thousand HKD in 2024 from 7,078,232 thousand HKD in 2023, a reduction of 8.2%[163] - Property, plant, and equipment decreased to 5,489,953 thousand HKD in 2024 from 5,987,057 thousand HKD in 2023, a decline of 8.3%[163] - Current assets decreased to 14,769,745 thousand HKD in 2024 from 16,410,094 thousand HKD in 2023, a reduction of 10%[163] - Bank loans classified as non-current liabilities increased to 18,228,586 thousand HKD in 2024 from 15,343,543 thousand HKD in 2023, up 18.8%[163] Rental Income and Property Leasing - Rental income rose to HKD 1,264,200,000, an 8.9% increase year-on-year[15] - The company's office and retail leasing businesses in Hong Kong recorded growth due to renovation and space optimization efforts[29] - Total rental income for the year ending July 31, 2024, reached HKD 1,264.2 million, compared to HKD 1,160.6 million in the previous year, representing an increase of 8.9%[64] - The retail segment in Shanghai Hong Kong Plaza generated HKD 168.5 million in revenue, a slight increase from HKD 164.1 million in the previous year[63] - Guangzhou Mayflower Commercial Plaza's retail revenue increased to HKD 81.3 million from HKD 80.1 million, while office revenue decreased to HKD 8.5 million from HKD 12.3 million[64] - The total rental income from joint venture projects, including China Construction Bank Tower, amounted to HKD 136.0 million, slightly up from HKD 135.9 million in the previous year[65] - Shanghai Mayflower Lifestyle Plaza's retail revenue decreased to HKD 36.4 million from HKD 37.8 million, while parking revenue remained stable at HKD 4.6 million[63] - Guangzhou Lifeng Center's office revenue declined to HKD 99.2 million from HKD 107.0 million, while retail revenue slightly decreased to HKD 16.8 million from HKD 17.2 million[64] - The total rental income from Shanghai Lifeng Skyline Center 2 surged to HKD 49.2 million from HKD 12.0 million, driven by significant growth in both retail and office segments[63] - Guangzhou Lifeng International Center 2 saw a substantial increase in rental income, reaching HKD 43.0 million compared to HKD 10.6 million in the previous year[64] - The total rental income from the Innovation Phase I project in Hengqin rose to HKD 6.7 million from HKD 2.7 million, reflecting a 148.1% increase[64] - The total rental income from the joint venture project Blue Pool Cove (50% basis) decreased to HKD 21.6 million from HKD 24.4 million, primarily due to lower residential unit revenue[65] - The total rental income from the London investment portfolio for the fiscal year ending July 31, 2024, was HK64.704 million in 2024, compared to HK12.086 million in 2024, compared to HK869,000 in 2024, compared to HK3.3 million[66] - The occupancy rate for the cultural workshop units in the first phase of Hengqin Innovation Square was 72.0%, generating rental income of HK228.9 million in 2024, compared to HK43.1 million in 2024, compared to HK$48.8 million in 2023[66] - The total building area of the first phase of Hengqin Innovation Square is 525,881 square feet for office units and 239,143 square feet for cultural workshop units[66] - The total building area of the China Construction Bank Tower is 229,206 square feet, with 18 office floors and 1 bank hall leased to China Construction Bank[71] - The company owns 100% of the properties located at 107, 100, and 106 Leadenhall Street in London[75] - The London Planning and Transportation Committee has granted planning permission for the redevelopment of the Leadenhall properties, which currently have a total built-up area of 344,230 square feet. The redevelopment will include a 57-story building with approximately 1,059,525 square feet of office space and 57,827 square feet of new retail space[76] - The proposed redevelopment of the Leadenhall properties will feature a 360-degree public viewing gallery spanning 25,190 square feet on the 56th and 57th floors[76] - The total internal area of the proposed Leadenhall building is expected to be approximately 1,296,029 square feet, including 153,487 square feet of ancillary facilities[76] - The company holds a 20% interest in the first phase of the Hengqin Innovation Square in mainland China, with all other major rental properties held through the Lai Fung Group[78] - The Shanghai Hong Kong Plaza, a flagship investment property of the Lai Fung Group, has a total gross floor area of approximately 1,188,500 square feet, including 362,100 square feet of office space, 358,000 square feet of serviced apartments, and 468,400 square feet of retail space[79] - The Shanghai Mayflower Lifestyle Plaza, owned 100% by the Lai Fung Group, has a total gross floor area of approximately 320,300 square feet, including basement commercial areas[81] - The Shanghai Kaixin Garden project, located in the Zhongshan Park commercial district, has a total gross floor area of approximately 82,100 square feet, with the Lai Fung Group holding a 95% interest in the commercial portion[82] - The Shanghai Lai Fung Sky Center, a mixed-use redevelopment project, has a total gross floor area of approximately 727,100 square feet and has achieved LEED v4 Gold certification. As of the report date, 83% of the retail space and 47% of the office space have been leased[83] - The Guangzhou Mayflower Commercial Plaza, located above the Guangzhou Park Front subway station, has a total gross floor area of approximately 436,900 square feet and is almost fully leased[84] - Guangzhou Lifeng International Center has a total construction area of approximately 614,600 square feet, with 99% of commercial space and 65% of office space leased as of the report date[86] - Zhongshan Palm Rainbow Garden Rainbow Hui Mall has a total construction area of approximately 181,100 square feet[86] - Hengqin Innovation Phase project is located in the central area of Hengqin, with a 75-minute drive to Hong Kong via the Hong Kong-Zhuhai-Macao Bridge[88] - Hengqin Cooperation Zone implemented a new management system on March 1, 2024, with a 15% corporate income tax rate for qualified industrial enterprises and a 15% personal income tax rate cap for high-end and紧缺人才[89] - In the first half of 2024, the traffic flow at Hengqin Port increased significantly, with over 10,000,000 passenger trips and 1,080,000 vehicle trips, up 44% and 11% year-on-year respectively[90] - Lifeng Group has established an e-commerce center in Hengqin Innovation Phase, positioning it as a cross-border e-commerce and social media development project[91] - Innovation Phase Phase I has a 76% office space occupancy rate, with a major tenant occupying six floors and planning to increase employees from 1,200 to over 3,000[93] - Innovation Phase Phase II has made significant progress, with eight residential buildings approved for development as保障性租赁住房 to meet the growing demand in Hengqin[94] - The occupancy rate of the commercial area in Phase 1 of Innovation Square is approximately 82%[95] - The total confirmed sales revenue for the fiscal year ending July 31, 2024, is HKD 1,529.5 million, with HKD 1,182.3 million from mainland China and HKD 347.2 million from Hong Kong[97][98] - The average selling price per square foot for residential units in Hong Kong is HKD 15,314, generating HKD 316.7 million in revenue[97] - The average selling price per square foot for cultural studio units in Phase 1 of Innovation Square is HKD 4,412, contributing HKD 175.8 million in revenue[98] - The signed but not yet confirmed sales as of July 31, 2024, amount to HKD 284.5 million, with HKD 188.6 million from mainland China and HKD 95.9 million from Hong Kong[101][102] - The total signed but not yet confirmed sales, including joint venture projects, is HKD 451.7 million as of July 31, 2024[101] - The average selling price per square foot for high-rise residential units in Zhongshan Palm Rainbow Garden is HKD 1,644, generating HKD 842.4 million in revenue[98] - The average selling price per square foot for cultural workshop units in Phase 1 of Innovation Square is HKD 2,218, contributing HKD 141.4 million in revenue[98] - The total confirmed sales revenue for joint venture projects in Hong Kong is HKD 128.9 million, with HKD 106.9 million from independent villas and HKD 16.4 million from residential units[99][100] - The signed but not yet confirmed sales for cultural studio units in Phase 1 of Innovation Square is HKD 13.3 million, with an average selling price of HKD 4,542 per square foot[102] - Total contracted sales for the joint venture project "Blue Pool" reached HKD 167.2 million, with 23 independent villas and 605 units sold, covering a sales area of approximately 405,831 sq. ft. at an average price of HKD 18,000 per sq. ft.[104] - The "Xi Zuo" project sold all 209 residential units and 7 commercial units, with average prices of HKD 16,400 and HKD 23,500 per sq. ft. respectively, generating total sales proceeds of approximately HKD 10.2 million[105] - The "Yi Xin" project sold all 138 residential units, with a total sales area of approximately 28,800 sq. ft., and all 4 commercial units were leased out[106] - The "Yi Xing" project sold all 144 residential units, with a total sales area of approximately 45,822 sq. ft. at an average price of HKD 21,300 per sq. ft., and all 6 parking spaces were sold, generating total sales proceeds of approximately HKD 5.7 million[107] - The "Bal Residence" project sold 84 out of 156 residential units, covering a sales area of approximately 28,501 sq. ft. at an average price of HKD 15,303 per sq. ft.[109] - The "Shang Bai" project pre-sold 103 out of 112 residential units, covering a sales area of approximately 32,623 sq. ft. at an average price of HKD 9,368 per sq. ft.[111] - The company holds 100% equity in the Wong Chuk Hang project, which covers an area of approximately 95,600 square feet with a total gross floor area of about 636,200 square feet. The project is expected to provide around 825 residential units with a total investment of approximately HKD 18 billion. Construction is ongoing and is expected to be completed in Q4 2025[112] - The Broadcast Drive 79 project in Hong Kong, with a site area of approximately 23,900 square feet, is planned to develop into a high-quality luxury residential project offering around 46 medium to large units, including 2 detached villas. The total investment is approximately HKD 2.3 billion, with construction expected to be completed in H1 2026[115] - The Kotewall Road 1 and 1A project involves the redevelopment of two adjacent buildings into a luxury residential project with a total gross floor area of approximately 55,200 square feet, providing around 27 medium to large residential units. The total investment is approximately HKD 1.9 billion, with construction expected to be completed in Q4 2027[116] - The Waterloo Road 116 project in Hong Kong is being redeveloped into a residential project with a total gross floor area of approximately 46,600 square feet, offering around 85 residential units. The total investment is approximately HKD 1.1 billion, with construction expected to be completed in Q3 2028[