恒隆集团(00010) - 2023 - 中期财报

Financial Performance - Total revenue for the six months ended June 30, 2023, decreased by 1% to HKD 5.525 billion, impacted by RMB depreciation and reduced property sales revenue[5]. - Basic earnings attributable to shareholders decreased by 3% to HKD 1.560 billion, with basic earnings per share falling to HKD 1.15[5]. - After accounting for property revaluation impacts, net profit attributable to shareholders increased by 17% to HKD 1.682 billion, with earnings per share rising to HKD 1.24[5]. - The basic net profit attributable to shareholders decreased by 3%, while property rental profit increased by 2% to HKD 1.571 billion[12]. - The net profit attributable to shareholders rose by 17% to HKD 1.682 billion, including slight net revaluation gains[12]. - The profit attributable to shareholders for the period was HKD 1,682 million, an increase of 17.6% compared to HKD 1,439 million in 2022[112]. - The company reported a net profit of HKD 1,682 million for the six months ended June 30, 2023, contributing to total equity of HKD 91,569 million[94]. - The total comprehensive income for the period was a loss of HKD 644 million, compared to a loss of HKD 2,755 million in the previous year, indicating an improvement[92]. Revenue Sources - Rental income increased by 4% to HKD 5.523 billion, reflecting improved leasing performance[5]. - Approximately 30% of the company's recurring rental income is derived from the Hong Kong market, despite a strategic shift towards the mainland commercial property market[7]. - Rental income in mainland China increased by 12% in the past six months, but due to a 6.3% depreciation of the RMB against HKD, the actual growth recorded was only 5%[12]. - The rental income from high-end shopping malls in mainland China saw tenant sales increase by over 100%, with two malls experiencing sales growth of 2.5 to 3 times[12]. - The overall rental income from the office portfolio typically experiences a decline of less than 4% annually, indicating strong resilience[11]. - The overall revenue of high-end malls increased by 16% to RMB 2,189 million, with individual mall revenue growth ranging from 6% to 23% compared to the same period last year[28]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.21 per share, to be distributed on September 29, 2023[5]. - The interim dividend for 2023 was declared at HKD 0.21 per share, unchanged from 2022[24]. - The company plans to distribute an interim dividend of HKD 286 million, maintaining the same level as in 2022[109]. Market Outlook and Strategy - The company anticipates a systematic transformation in the Hong Kong real estate market, with increasing land supply expected to pressure property prices[8]. - The company believes that the mainland economy is likely to perform reasonably well in the coming years, despite current market weaknesses in Hong Kong[8]. - The company acknowledges the challenges and necessary adjustments for Hong Kong's economy to maintain its competitive position in a changing global landscape[8]. - The company emphasizes a cautious approach to expansion in light of current economic uncertainties and risks[9]. Property and Investment Developments - The company has accumulated significant financial resources and industry expertise over the years, which supports its operations in the mainland market[7]. - The company has not been active in the general residential market for over 20 years, avoiding high-priced land and property challenges[13]. - The company plans to remain vigilant for future land acquisition opportunities despite not purchasing land this year[14]. - The company has established a real estate research center at Tsinghua University to focus on sustainable development and innovation in real estate technology[61]. Financial Position and Debt Management - The net debt to equity ratio increased to 27.1% from 25.9% in December 2022[21]. - The total borrowing as of June 30, 2023, was HKD 47,453 million, up from HKD 45,953 million at the end of 2022, with 28% denominated in RMB[52]. - The average repayment period of the overall debt portfolio was 3.2 years as of June 30, 2023, with approximately 72% of loans due after two years[56]. - The company issued green bonds worth HKD 400 million and secured green loan credit facilities of HKD 500 million, representing 48% of total debt and available credit facilities[50]. Corporate Governance - The company maintains high standards of corporate governance, emphasizing a competent board, sound internal controls, and effective risk management as of June 30, 2023[65]. - The board consists of 11 members, including 4 executive directors, 3 non-executive directors, and 4 independent non-executive directors, ensuring a balanced distribution of power and authority[66]. - The company has complied with the Corporate Governance Code as stipulated in the Hong Kong Stock Exchange Listing Rules during the six months ending June 30, 2023[69]. Employee and Shareholder Information - Employee count as of June 30, 2023, was 4,204, including 988 in Hong Kong and 3,216 in mainland China[85]. - Total employee costs for the six months ended June 30, 2023, amounted to HKD 950 million[85]. - Major shareholder Chen Wenbo holds 551,002,580 shares, representing 40.47% of the total issued shares[81]. - The company has implemented share option plans to incentivize selected participants, including employees and directors, to contribute to the group's future development[74].