KERRY PPT(00683)2023-04-26 08:56Financial Performance - Total revenue for 2022 was HKD 14,590 million, a decrease of 4.8% from HKD 15,327 million in 2021[7] - Shareholders' profit attributable for 2022 was HKD 4,520 million, a decline of 28% from HKD 6,266 million in 2021[7] - Earnings per share (EPS) decreased to HKD 1.90 from HKD 7.11, representing a 73% drop[7] - The group recorded a total revenue of HKD 14.59 billion, a decrease of 4.8% compared to HKD 15.33 billion in the previous year[19] - The mainland property division recorded revenue of HKD 9.245 billion for the year ended December 31, 2022, down from HKD 10.250 billion in 2021, with a gross profit of HKD 4.887 billion, compared to HKD 6.334 billion in 2021[28] - The gross profit margin for development property sales decreased to 44% in 2022 from 62% in 2021, primarily due to changes in the sales mix across different cities[28] Property Sales and Leasing - Property sales increased by 2.1% to HKD 8,543 million, compared to HKD 8,371 million in the previous year[7] - Property sales contributed HKD 9.97 billion, including contract sales of HKD 5.35 billion from Hong Kong and the sale of two warehouses for HKD 4.62 billion[19] - The group's property leasing income was HKD 4.99 billion, down 6.6% from HKD 5.34 billion in the previous year[19] - The group provided rental concessions of HKD 150 million to tenants in Hong Kong and mainland China during the year[14] - The rental income from joint ventures and associates was HKD 300 million, down 11.5% from HKD 339 million in the previous year[38] Investment Properties - The company’s investment property portfolio comprises 16.31 million square feet, with 19% located in Hong Kong and 81% in mainland China[26] - The company expects to add 8.93 million square feet to its investment property portfolio from ongoing mixed-use projects in mainland China over the next five years[26] - The total area of the group's investment properties and hotel portfolio is expected to increase by 43% to 29.69 million square feet by 2027, enhancing the platform for recurring income[27] - The total consolidated rental income, including contributions from joint ventures and associates, was HKD 4.092 billion, down 6.8% from HKD 4.392 billion in the previous year[38] Debt and Financial Position - Cash and bank balances decreased by 33% to HKD 11,701 million from HKD 17,435 million in 2021[7] - Total borrowings increased by 41% to HKD 52,870 million, compared to HKD 37,479 million in the prior year[7] - The debt-to-equity ratio rose to 33.6% from 15.1% in 2021[7] - The total unused bank loan credit as of December 31, 2022, was HKD 28.875 billion, with cash and bank deposits at HKD 11.701 billion, representing a decrease of 17% and 33% respectively from the previous year[78] Sustainability and Corporate Social Responsibility - The group aims to achieve carbon neutrality and has set science-based carbon reduction targets[15] - The company raised HKD 17.035 billion through sustainable development-linked loan agreements in 2022[87] - The company achieved a five-star rating from CDP Sustainalytics, maintaining a low-risk rating[88] - Key sustainability issues identified for 2022 include climate change adaptation and energy efficiency[94] - 100% of investment properties completed climate risk and vulnerability assessments, showing progress towards sustainability goals[98] Corporate Governance - Kerry Properties fully complied with all provisions of the Corporate Governance Code in 2022[115] - The board of directors is composed of three executive directors and four independent non-executive directors, ensuring a diverse skill set and experience[116] - The company emphasizes high standards of corporate governance as critical for long-term success and sustainable development[115] - The board has established five committees to assist in fulfilling its responsibilities, including the Audit and Corporate Governance Committee[116] Employee and Community Engagement - Employee training rate increased to 98.6% from 96% in 2021[83] - 34% of senior positions are held by women, up from 31% in 2021[83] - Total donations amounted to HKD 12.1 million, down from HKD 22.6 million in 2021[85] - Over 550 community investment projects were conducted, an increase from over 400 in 2021[85] Market Conditions and Risks - The overall market conditions and the group's operational performance remain uncertain due to the impact of the COVID-19 pandemic, influenced by potential virus mutations and government measures[187] - The group faces intense competition and market volatility, which may negatively affect sales or profit margins due to price competition from new entrants and existing competitors[188] - Geopolitical situations, such as the Russia-Ukraine conflict, have led to trade restrictions and supply chain risks, potentially impacting the group's financial condition and operational performance[189] Future Development Plans - The company plans to continue land acquisitions and asset enhancement projects in key cities like Shanghai, Beijing, and Hangzhou[12] - The company plans to complete several projects in 2023 and beyond, including developments in Zhengzhou, Kunming, and Shenyang, contributing significant floor area to its portfolio[25] - New projects are being developed in cities like Hangzhou and Wuhan, contributing to future growth and market expansion[27]