SHK PPT(00016)2023-10-04 08:36Financial Performance - Group revenue for the fiscal year ending June 30, 2023, was HKD 71,195 million, a decrease of 8.4% from HKD 77,747 million in 2022[10]. - Profit attributable to shareholders was HKD 23,907 million, down 6.5% from HKD 25,560 million in the previous year[10]. - Basic earnings per share decreased to HKD 8.25, a decline of 6.5% from HKD 8.82 in 2022[10]. - Total rental income was HKD 24,322 million, a decrease of 2.0% compared to HKD 24,810 million in the prior year[10]. - Net rental income fell to HKD 18,461 million, down 4.1% from HKD 19,250 million in 2022[10]. - The profit from property sales was HKD 11.299 billion, down from HKD 15.847 billion in the previous year, with total contracted sales amounting to approximately HKD 37.9 billion[17]. - The company reported a total rental income of HKD 24.322 billion, down 2% year-on-year, with net rental income decreasing by 4% to HKD 18.461 billion[18]. - The net debt to equity ratio increased to 18.2% from 17.4% in the previous year, while the payout ratio rose to 60.1% from 49.9%[10]. Dividend and Shareholder Returns - The company maintained a final dividend of HKD 3.70 per share, consistent with the previous year[10]. - The company declared a final dividend of HKD 3.70 per share, maintaining the total annual dividend at HKD 4.95 per share, which represents about 60% of the basic profit for the year[19]. - The company plans to maintain its dividend policy, distributing 40% to 50% of its basic profit as dividends in the future[16]. Land Bank and Development Projects - The total land bank in Hong Kong amounted to 58.0 million square feet, an increase of 1.6% from 57.1 million square feet in 2022[10]. - The land bank in mainland China decreased to 67.5 million square feet, down 4.4% from 70.6 million square feet in the previous year[10]. - The group added three commercial land reserves, totaling approximately 2.33 million square feet, including a project in Mong Kok expected to be completed by the end of 2030[20]. - The group has 21.6 million square feet of properties under development, primarily for sale, and 36.4 million square feet of completed properties, mostly for leasing/investment[15]. - The group is actively pursuing new development projects, including properties in Hong Kong and mainland China, to enhance its market presence[10]. Market Performance and Sales - The group achieved a 13% increase in sales, nearing its annual sales target, primarily from various residential projects[24]. - Approximately 3 million square feet of properties were completed in Hong Kong during the year, with about 2 million square feet available for sale, most of which have already been sold[25]. - The group has an unrecognized contract sales amount of HKD 28 billion, with an estimated HKD 24 billion expected to be recognized in the 2023/24 fiscal year[26]. - The total contract sales amount to HKD 33.4 billion, reflecting the group's strong performance in property sales[66]. Rental Income and Occupancy Rates - The group's total rental income in Hong Kong increased by 1% year-on-year to HKD 17.73 billion, with an overall occupancy rate maintained at a satisfactory level[27]. - The average occupancy rate for the group's office properties was approximately 92%, reflecting a satisfactory level despite challenges in the office leasing market[27]. - Total rental income increased by 1% year-on-year to HKD 17.738 billion, including income from joint ventures and associates[111]. - The overall occupancy rate of the property investment portfolio remained stable at approximately 93%[111]. Sustainability and ESG Initiatives - The group aims to achieve LEED Gold or Platinum certification for its new commercial projects while continuously improving the green building standards of existing properties[27]. - The company is committed to enhancing its ESG standards and has been included in the S&P Global Sustainability Yearbook 2023[45]. - The group is focused on sustainable development, integrating environmental, social, and governance (ESG) elements into its property development and management[60]. - The group plans to install fast electric vehicle chargers in major shopping malls by mid-2024 to address the limited number of public chargers[47]. - The group has set a ten-year environmental goal and is collaborating with a local university on green building solutions[46]. Technology and Innovation - The company is integrating technology and smart design into its projects, including wireless internet systems and smart home features[88]. - The group has implemented advanced technology to enhance operational efficiency, including an online reservation system that reduces costs and increases booking rates[193]. - The construction department is focusing on digital transformation, including workflow restructuring and the comprehensive application of BIM technology[200]. Hotel Operations and Recovery - The group’s hotel operations in Hong Kong are recovering, with significant improvements noted in the performance of the Ritz-Carlton Shanghai due to domestic tourism recovery[36]. - The hotel portfolio in Hong Kong has seen improved occupancy rates and room prices returning to pre-pandemic levels, driven by an increase in travelers[183]. - The luxury Nanjing River West Andaz Hotel opened during the year, enhancing the group's hotel portfolio in mainland China[183]. - The group achieved a significant recovery in hotel occupancy rates and room prices in mainland China following the lifting of travel restrictions in early 2023[192]. Future Development Plans - The company is actively pursuing market expansion through new developments in various regions, including Tuen Mun and Tai Po, with significant residential and commercial projects planned[104]. - Future major projects expected to be completed by the fiscal year 2026/27 are projected to total 11,730,000 square feet, with residential developments comprising 7,075,000 square feet[104]. - The group is focused on expanding its business in mainland China, leveraging its strong reputation and experienced team to develop high-quality projects[62]. - The group is committed to maintaining high-quality standards, evidenced by its introduction of a three-year warranty for newly sold residential properties in Hong Kong[72].