SWIREPROPERTIES(01972)2025-04-08 08:30Financial Performance - The company's revenue for 2024 was HKD 14,428 million, a decrease of 2% compared to HKD 14,670 million in 2023[52]. - Basic earnings attributable to shareholders dropped by 42% to HKD 6,768 million from HKD 11,570 million in the previous year[52]. - The net cash outflow before financing improved by 70%, reducing to HKD 2,515 million from HKD 8,416 million[52]. - The basic earnings per share decreased by 41% to HKD 1.16 from HKD 1.98 in 2023[52]. - The company reported a total operating profit of HKD 1,702 million in 2024, significantly down from HKD 5,180 million in 2023, indicating a decline of around 67.16%[103]. - The fair value loss on investment properties was HKD 5,996 million in 2024, compared to HKD 2,829 million in 2023, marking an increase of approximately 111.43%[103]. - The reported loss attributable to shareholders for 2024 was HKD 7.66 billion, compared to a profit of HKD 26.37 billion in 2023, primarily due to a fair value loss of investment properties amounting to HKD 62.99 billion in 2024[67]. - The recurring basic profit for 2024 was HKD 64.79 billion, down from HKD 72.85 billion in 2023, mainly due to a decline in rental income from Hong Kong office properties[108]. Sustainability Initiatives - The company aims to achieve its 2030 sustainability vision six years ahead of schedule, ranking first globally in the real estate management and development industry by 2024[27]. - The company has established a partnership with LVMH to enhance environmental, social, and governance performance in retail, office, and dining locations in mainland China and Hong Kong[23]. - The company received the highest sustainability rating of "AAA" and maintained its position as the top index leader for seven consecutive years[36]. - The company achieved a 3.8% reduction in electricity intensity among participating tenants, saving approximately 750,000 kWh[44]. - The company’s sustainable procurement expenditure amounted to HKD 447 million[44]. - The company’s community initiatives created over HKD 60 million in social value since 2019[38]. - The company continues to pursue sustainability initiatives, achieving over 60% of its energy consumption from renewable sources in its mainland China properties[90]. - The "Green Retail Partnership" framework was established to promote sustainable store design and improve environmental performance in collaboration with tenants like LVMH[90]. Investment and Development - The company announced a share buyback plan of up to HKD 1.5 billion, set to conclude by May 2025[22]. - The company acquired a 50% stake in Guangzhou Poly Dragon Bay Taikoo Li, enhancing its retail portfolio[22]. - The company successfully secured the property at Tianhe Road 387, which will be renovated as part of the Guangzhou Taikoo Hui premium retail property portfolio[32]. - The company is expanding its operations into Japan with plans for hotel development[11]. - The company has six operational large-scale commercial development projects in Beijing, Guangzhou, Chengdu, and Shanghai, with several more under development[10]. - The company has invested over HKD 500 billion in mainland China, with more than 90% of this capital already allocated to various new projects[70]. - The company plans to invest HKD 100 billion over the next decade in various projects in Hong Kong and mainland China, with a target allocation of HKD 30 billion for Hong Kong, HKD 50 billion for mainland China, and HKD 20 billion for residential projects including Southeast Asia[119]. - The company plans to double its total floor area in mainland China with more retail-led developments in first-tier and emerging first-tier cities[119]. Market Performance - The short-term outlook for the Hong Kong office market is expected to remain soft, while retail sales in mainland China are anticipated to gradually recover[74]. - The Hong Kong office market is expected to remain sluggish through 2025, with continued pressure on rents due to weak demand and oversupply[83]. - The retail malls maintained a 100% occupancy rate, with strong performance in mainland China, highlighting their status as preferred leisure destinations[72]. - The overall retail sales in Hong Kong dropped by 7% in 2024, with specific declines of 11% at Pacific Place, 2% at Cityplaza, and 4% at Citygate Outlets[153]. - The luxury retail market in first-tier cities in mainland China remains strong, with ongoing expansion plans for luxury brands in key locations[86]. - Retail sales in mainland China are expected to accelerate in 2025, driven by domestic demand growth and ongoing renovations of several malls[85]. Employee and Community Engagement - The average training hours per employee increased by 105% to 25 hours, totaling approximately 173,900 hours of training[39]. - The lost time injury rate (LTIR) for non-hotel operations was reported at 0.56, significantly below the target of ≤1.2[40]. - The female employee ratio reached 42.5%, exceeding the target of at least 40%[41]. - The company achieved a 35.7% representation of women on the board, exceeding the 30% target for 2024[49]. - The group is committed to enhancing community-building capabilities, including tenant engagement programs and strong ESG initiatives[136]. Financial Outlook - The company maintained a capital net debt ratio of 15.7%, an increase of 3.0 percentage points from 12.7%[52]. - The company reported a total equity attributable to shareholders of HKD 275,326 million in 2024, a decrease from HKD 285,082 million in 2023[55]. - The average return on equity for the company was 2.4% in 2024, down from 4.0% in 2023[55]. - The company maintained a healthy financial liquidity, which supports the implementation of the next phase of its investment plan[65]. - Approximately 70% of the company's bond and loan financing came from green finance, with a total issuance of green bonds valued at about HKD 6,900 million[49].