WHARF REIC(01997)2025-03-10 04:10Financial Performance - The group's basic net profit increased by 2% to HKD 6.139 billion (2023: HKD 6.011 billion), equivalent to HKD 2.02 per share (2023: HKD 1.98 per share) [3] - Total revenue decreased by 3% to HKD 12.912 billion (2023: HKD 13.306 billion), with operating profit also down by 3% to HKD 9.691 billion (2023: HKD 9.993 billion) [16] - Investment property income fell by 1% to HKD 10.801 billion (2023: HKD 10.916 billion), while operating profit decreased by 2% to HKD 9.102 billion (2023: HKD 9.247 billion) [16] - Hotel revenue decreased by 1% to HKD 1.541 billion (2023: HKD 1.561 billion), with operating profit down 53% to HKD 99 million (2023: HKD 209 million) [16] - Shareholders' profit attributable to the group was HKD 890 million, a decrease from HKD 4.76 billion in the previous year, resulting in basic earnings per share of HKD 0.29 compared to HKD 1.57 last year [22] - The net profit for the year was HKD 875 million, a significant decline of 81.12% compared to HKD 4,644 million in 2023 [43] - The company reported a net profit of HKD 2,053 million for 2024, compared to HKD 5,782 million in 2023, reflecting a significant decline of 64.60% [53] Assets and Liabilities - Total assets reached HKD 238.1 billion, down from HKD 245.3 billion in the previous year, with 95% of assets located in Hong Kong [24] - Total assets decreased from HKD 245,322 million in 2023 to HKD 238,072 million in 2024, reflecting a reduction of 2.57% [45] - The total liabilities decreased from HKD 49,715 million in 2023 to HKD 46,088 million in 2024, a decline of 5.26% [45] - Total liabilities decreased to HKD 5,371 million in 2024 from HKD 6,256 million in 2023 [74] Investment Properties - The total value of investment properties reported a 3% impairment loss, with a fair value of HKD 221.8 billion [18] - Investment property assets totaled HKD 221.8 billion, accounting for 94% of operating assets, with Harbour City valued at HKD 152.5 billion and Times Square at HKD 43.7 billion [25] - The fair value loss on investment properties was HKD 5,665 million, compared to a loss of HKD 1,147 million in the previous year [41] Debt and Financial Position - The group maintained a net debt ratio of 18%, reducing borrowing costs by 10% [4] - The group plans to manage debt actively amid uncertain interest rate prospects, achieving the lowest net debt level since listing at HKD 34.2 billion [5] - Net debt decreased by HKD 2.1 billion to HKD 34.2 billion, with a net debt to total equity ratio declining to 17.8% from 18.6% [30][32] - Financial expenses were HKD 1.8 billion, down from HKD 2.17 billion in the previous year, with an effective borrowing interest rate rising to 5.6% [20] - Total interest expenses decreased to HKD 2,024 million in 2024 from HKD 2,261 million in 2023 [66] Revenue Breakdown - Revenue from Hong Kong was HKD 12,181 million, a slight decrease from HKD 12,329 million in 2023 [60] - Development property revenue decreased significantly to HKD 152 million from HKD 238 million, a drop of 36.03% [55] - Investment income fell to HKD 281 million from HKD 465 million, a decrease of 39.51% [55] - Other income netted HKD 83 million in 2024, a significant recovery from a loss of HKD 726 million in 2023 [66] Dividends and Shareholder Information - The total dividend for the year is HKD 1.24 per share, representing 65% of the basic net profit from investment properties and hotels [4] - Total dividends declared per share were HKD 1.24 in 2024, down from HKD 1.28 in 2023 [72] - The second interim dividend's ex-dividend date is set for April 3, 2025, with a payment date of April 24, 2025 [79] - The annual general meeting is scheduled for May 15, 2025, with a record date of May 12, 2025 [80] Future Outlook - The company expects challenges in 2025 due to escalating trade conflicts and global economic uncertainty, but anticipates potential recovery in retail and hotel sectors with government support [13] - The company plans to finance its capital expenditures through internal financial resources and bank borrowings [37] - The company has committed capital expenditures of HKD 900 million for the coming years, with HKD 200 million already incurred [37] Employee and Operational Information - The company employed approximately 2,900 staff members as of December 31, 2024 [39] - Employee costs increased to HKD 59 million in 2024 from HKD 52 million in 2023, including share-based payment expenses of HKD 11 million [65] Governance and Communication - The board of directors includes a mix of executive and independent non-executive members, ensuring diverse governance [82] - The company is preparing for its annual general meeting, emphasizing shareholder participation and voting rights [81] - The company is committed to maintaining transparency and timely communication with its shareholders regarding dividends and meetings [79] - The fiscal year-end report will be announced on March 10, 2025, providing insights into the company's performance [83]