希慎兴业(00014) - 2024 - 年度财报

Financial Performance - Revenue for 2024 reached HKD 3,409 million, representing a 6.2% increase compared to HKD 3,210 million in 2023[63] - The recurring basic profit for 2024 was HKD 1,956 million, up 6.8% from HKD 1,832 million in 2023[64] - Total assets (excluding cash and debt securities) amounted to HKD 110,982 million, reflecting a 1.2% increase from HKD 109,678 million in 2023[65] - The net debt-to-equity ratio increased to 31.4% in 2024 from 27.2% in 2023[72] - The interest coverage ratio (excluding capitalized interest) was 2.3 times, down from 2.4 times in 2023[72] - The average interest rate on debt was 4.3%, slightly up from 4.2% in 2023[73] - Retail revenue from shops increased by 9.5% to HKD 1,678 million in 2024, while office revenue decreased by 1.5% to HKD 1,440 million[77] - The occupancy rate for retail shops in Hong Kong was 92% in 2024, down from 97% in 2023[82] - The cash and cash equivalents at the end of 2024 were HKD 1,564 million, down from HKD 2,583 million at the beginning of the year[87] - Total revenue increased by 6.2% to HKD 3,409 million in 2024, compared to HKD 3,210 million in 2023[99] - The company's recurring basic profit grew by 6.8% to HKD 1,956 million in 2024, up from HKD 1,832 million in 2023[94] - Investment properties valued at HKD 96,547 million as of December 31, 2024, reflecting a 0.6% increase from HKD 96,005 million in 2023[91] - Fair value loss on investment properties was HKD 1,506 million in 2024, down from HKD 2,763 million in 2023[91] - The retail segment's revenue rose by 9.8% to HKD 1,684 million in 2024, compared to HKD 1,533 million in 2023[105] - The office segment's revenue decreased by 4.4% to HKD 34,109 million in 2024, down from HKD 35,688 million in 2023[91] - The company declared a second interim dividend of HKD 0.81 per share for 2024, consistent with the previous year[101] - The company's investment property portfolio in Shanghai began contributing to recurring profits in 2024, with a commercial floor area of approximately 900,000 square feet[100] - The property expenditure ratio improved to 18.9% of revenue in 2024, compared to 19.3% in 2023[104] - The group’s operating cash flow for 2024 was HKD 2,543 million, an increase of 4.6% from HKD 2,431 million in 2023[149] - Interest income decreased to HKD 134 million in 2024 from HKD 198 million in 2023, attributed to a reduction in bank deposits[146] - Total capital expenditure increased to HKD 1,890 million in 2024, up from HKD 1,669 million in 2023, primarily due to construction projects[152] - The total debt of the group rose to HKD 26,717 million as of December 31, 2024, compared to HKD 25,717 million in 2023, driven by strategic capital expenditures[154] - The debt-to-equity ratio increased to 31.4% in 2024 from 27.2% in 2023, while the net interest coverage ratio decreased to 8.8 times from 9.6 times[161] - Cash and bank deposits held by the group totaled approximately HKD 2,211 million as of December 31, 2024, down from HKD 3,854 million in 2023[163] - The group repurchased HKD 728 million of perpetual capital securities in 2024, with a total principal repurchase amount of HKD 777 million[150] - The group paid dividends totaling HKD 1,109 million in 2024, compared to HKD 1,479 million in 2023[151] - The average debt repayment period was 3.4 years as of December 31, 2024, down from 4.5 years in 2023[157] - The group maintained an investment-grade credit rating with Moody's at Baa2 and Fitch at BBB as of December 31, 2024[162] Strategic Developments - Hysan's retail and office portfolio maintained stable performance, with office occupancy rates remaining steady due to prime location and quality specifications[18] - The revitalization plan for Lee Gardens began to yield financial contributions, with over ten new luxury flagship stores set to open by 2025, including recently reopened Hermès, Dior, and Cartier[15] - The Lee Gardens Phase 8 project will expand the total area of Lee Gardens by nearly 30%, with a total area exceeding 1 million square feet, including 60,000 square feet of green open space[15] - A five-year memorandum of understanding was signed with the Academy for Performing Arts to enhance cultural facilities within Lee Gardens Phase 8, responding to the government's cultural development blueprint[16] - Hysan secured a four-year syndicated loan agreement of HKD 8 billion with 20 international and local banks to ensure ample liquidity for refinancing and operational needs[19] - The retail sector faced challenges but remains optimistic, with expectations for a gradual recovery in visitor numbers and spending due to government measures to attract tourists[17] - The office business showed strong demand growth in various sectors, including co-working spaces and wealth management, contributing to organic growth[18] - The new pedestrian system in Lee Gardens is set to be completed by 2026, enhancing connectivity for office users and shoppers[15] - Hysan's commitment to sustainable development is reflected in the new standards set by the Lee Gardens Phase 8 project[15] - The company continues to focus on maintaining a robust balance sheet and flexible capital management strategies to navigate uncertain market conditions[19] - The company has signed contracts for nearly half of the garden villas and apartments in the Linhai Mountain City project by the end of 2024[37] - Shanghai Li Garden recorded a strong growth with a rental rate of 70%, contributing new recurring profits starting in 2024[39] - The company plans to establish a new pedestrian passage system connecting various buildings in the Li Garden area, enhancing accessibility for office users and shoppers[33] - The Li Garden area will see the opening of over ten newly renovated luxury flagship stores in 2024, further solidifying its position as a premier location for luxury brands[28] - The company is investing in strategies that promote regional expansion and core business development opportunities[36] - The new office ecosystem solutions in the Greater Bay Area have shown robust growth, with high occupancy rates[43] - The company’s healthcare investment projects continue to maintain growth momentum and expand operations[45] - The Li Garden Phase 8 project is set to become a core green area, establishing new standards for quality and sustainable office spaces, expected to be completed by 2026[31] - The company owns approximately 5.5 million square feet of retail, office, and residential space, focusing on sustainable ecosystem development[49] - The company aims to become a leading player in the industry, driven by strategic planning and management by dedicated professionals[51] - The company is optimistic about the shared workspace business in the Greater Bay Area, operating 38 centers with plans to add 5 more in 2024[132] - The company signed a memorandum of cooperation with the Hong Kong Academy for Performing Arts to operate cultural facilities at the Lee Garden Eight project, aiming to enhance community engagement[127] - The company acquired an additional 2,000 square meters for the Lee Garden Eight project, which is expected to be completed by 2026, enhancing its cultural and artistic offerings[127] - The company has established 38 flexible office centers in the Greater Bay Area, addressing the evolving demands of office space[180] - A joint venture with IWG has been established to create shared workspaces in the Greater Bay Area[181] Sustainability and Community Engagement - The company received an "AA" ESG risk rating from Sustainalytics, indicating a low-risk profile[61] - The company has committed to maintaining at least 40% female employees, including in senior management roles, as part of its diversity policy[200] - The company has received a four-star rating in the Hang Seng Sustainable Development Index and is included in the FTSE ESG series with a low-risk rating[190] - The company has pledged to support the Science Based Targets initiative (SBTi) for carbon reduction[190] - The company provided over 2 million hours of community engagement activities, attracting more than 3 million participants in 2024[190] - The company achieved a reduction of over 7% in carbon emissions (Scope 1 and 2) compared to 2023, and electricity consumption in its Hong Kong property portfolio also decreased by over 7% from the baseline year of 2021[190] - The company emphasizes a strong governance framework, with no regulatory violations or confirmed misconduct reported in 2024[184] - The management team balances meticulous management with innovative empowerment to provide sustainable returns to stakeholders[177] - The emphasis on environmental, social, and governance (ESG) principles fosters meaningful connections and mutual respect within the community[176] - The community business model emphasizes careful space integration, a curated mix of products and services, and vibrant community activities, creating a unique social value proposition[176] - Sustainable development is a key part of the financing strategy, supporting the transition to a sustainable economy through green bonds, green loans, and sustainability performance-linked loans[170] - The group has established strict internal guidelines to ensure that all derivative instruments are used solely for managing fluctuations in treasury assets and liabilities or for appropriate adjustments to risk levels[168] - The group monitors counterparty credit risk regularly, ensuring that all deposits are placed with banks of excellent credit ratings[169] - The group sets maximum credit limits for each counterparty based on their credit quality to manage risk effectively[169] Operational Strategies - The core business strategy focuses on continuous updates and expansions of the core operations in the Lee Garden area, while strategically investing in growth pillars that complement and enhance the overall portfolio[177] - The board has identified key areas for focus in 2024, including enhancing core business competitiveness and managing operational risks amid structural changes in retail and office sectors[196] - The company aims to maintain a female director ratio of at least 33%, with the current ratio at 36.4%[199] - A new share incentive plan was adopted in 2024 to attract and retain key talent, linking management compensation to long-term company performance[200] - The company has adopted a share incentive plan in 2024 to attract and retain key talent, linking management compensation to long-term company performance[188] - The company regularly collects employee feedback to enhance the work environment and drive business development[186]