SHK PPT(00016)2025-03-20 08:39Financial Performance - The group's revenue for the six months ended December 31, 2024, was HKD 39,933 million, representing a 45.0% increase compared to HKD 27,542 million in the same period last year[7]. - The attributable profit to shareholders, excluding fair value changes of investment properties, was HKD 10,463 million, up 17.5% from HKD 8,906 million year-on-year[7]. - The basic earnings per share based on the accounts was HKD 2.60, down 17.7% from HKD 3.16 in the previous year[7]. - The interim dividend declared was HKD 0.95 per share, unchanged from the same period last year[11]. - The group recorded a net profit of HKD 7,841 million, a decrease of 17.3% compared to HKD 9,473 million in the previous year[71]. - The total comprehensive income for the period was HKD 11,002 million, reflecting strong operational performance despite market challenges[75]. - The company reported a total comprehensive income of HKD 6,749 million for the period, compared to HKD 11,372 million in the previous year[71]. - The company reported a profit of HKD 9,145 million for the period, contributing to a total equity attributable to shareholders of HKD 602,330 million as of December 31, 2024[75]. Property Development - The group recorded property development profit of HKD 2,506 million, compared to HKD 2,040 million in the previous year, with total contracted sales amounting to approximately HKD 25,500 million[12]. - The group recorded a contract sales amount of approximately HKD 24.8 billion during the period, primarily from projects such as Kai Tak and North Point[17]. - The group has unrecognized contract sales amounting to HKD 30.4 billion as of December 31, 2024, with an estimated HKD 20.2 billion expected to be recognized in the second half of the fiscal year[20]. - The group aims to continue expanding its property portfolio to enhance recurring income streams and support future growth[15]. - The group plans to launch several new projects, including the sale of residential units in YOHO WEST PARKSIDE and multiple projects in mainland China, such as Suzhou Lakeside Seasons and Hangzhou International Financial Center[61]. Rental Income - Total rental income decreased by 1.4% to HKD 12,280 million, while net rental income fell by 3.5% to HKD 9,004 million[7]. - The total rental income from the property investment portfolio decreased slightly by 1% year-on-year to HKD 8.813 billion, with an overall occupancy rate maintained at approximately 93%[22]. - The average occupancy rate of the group's office portfolio remained stable at around 90% during the period, despite pressure from new supply in core areas[24]. - The rental income from the group's office portfolio was impacted by a decline in market rents due to intense competition and an uncertain external environment[35]. - Rental income from Hong Kong investment properties decreased by 1% to HKD 88,813 million, while net rental income fell by 4% to HKD 63,390 million[140]. Investment Properties - The fair value decrease of investment properties amounted to HKD 20,340 million, compared to a fair value increase of HKD 4,320 million in the previous year[10]. - The fair value of completed investment properties in Hong Kong is HKD 275.1 billion, with a capitalization rate of 5.1%[115]. - The fair value of completed investment properties in Mainland China is HKD 73.6 billion, with a capitalization rate of 6.6%[115]. - The group acquired investment properties worth HKD 5.5 billion during the period, with HKD 597 million for completed properties and HKD 4.9 billion for properties under development[109]. Financial Position - The group's debt ratio decreased to 17.8% as of December 31, 2024, with an interest coverage ratio maintained at a high level of 5 times[46]. - The group maintained a strong financial position with total equity of HKD 605 billion as of December 31, 2024[151]. - The total debt as of December 31, 2024, was HKD 122.26 billion, with 67% being bank loans and 33% being notes and bonds[152]. - The average interest rate on debt decreased to 4.0% from 4.5% in the previous year[148]. - The group has a solid foundation for recurring income, supported by ongoing property sales cash flow and substantial bank credit lines[157]. Sustainability Initiatives - The group successfully reduced greenhouse gas emissions from major commercial properties by 25% compared to the fiscal year 2019/20, ahead of its ten-year target[51]. - The group plans to reduce greenhouse gas emissions by 35% by the end of the fiscal year 2029/30, based on the same benchmark year[51]. - The group is constructing Hong Kong's first privately developed solar power plant on a landfill site, expected to produce 1.2 million kWh of green electricity annually upon completion in 2025[51]. - The number of fast electric vehicle charging stations installed in the group's shopping malls has doubled to 80, promoting the use of electric vehicles[51]. - The group is committed to sustainable community development, integrating nature, environmental protection, and healthy living elements in its projects[61]. Market Outlook - The global economic outlook for 2025 faces uncertainties due to geopolitical risks and trade policy unpredictability, although major central banks have begun a rate-cutting cycle to aid economic recovery[56]. - The company aims to maintain a low debt ratio and substantial recurring income from rental properties, while focusing on cost control and asset turnover in property development[58]. - The company is focused on expanding its real estate business in both Hong Kong and mainland China, with directors overseeing regional operations[194][197]. Corporate Governance - The board of directors includes experienced professionals with significant contributions to various sectors, ensuring robust governance[178][183]. - The company is committed to corporate governance, with independent directors serving on key committees such as the nomination and remuneration committees[189]. - The company has a clear succession plan in place, with younger directors being groomed for future leadership roles[192]. - The independent non-executive directors have extensive backgrounds in finance and management, contributing to informed decision-making[176][182].