希慎兴业(00014) - 2023 - 年度业绩

Financial Performance - For the year ended December 31, 2023, the company's revenue was HKD 3,210 million, a decrease of 7.2% compared to HKD 3,460 million in 2022[3]. - The recurring basic profit for 2023 was HKD 1,832 million, down 11.2% from HKD 2,063 million in the previous year[3]. - The reported loss attributable to the company's owners was HKD 872 million, an improvement of 24.6% from a loss of HKD 1,157 million in 2022[3]. - The basic loss per share improved to HKD (85) from HKD (112), reflecting a 24.1% increase[3]. - The annual dividend per share was reduced to HKD 108, down 25.0% from HKD 144 in the previous year[3]. - The net loss for the year was HKD 1,026 million, compared to a net loss of HKD 949 million in 2022, indicating an increase in losses of approximately 8.1%[52]. - The gross profit for the year was HKD 2,589 million, down from HKD 2,893 million in the previous year, reflecting a decline of 10.5%[51]. - The group reported a pre-tax loss of HKD 731 million, with significant fair value changes in investment properties amounting to HKD 2,763 million[57]. Occupancy and Rental Trends - The office occupancy rate was 89%, while the retail occupancy rate was 97%, with rental levels for renewals showing a downward trend for offices and a stable upward trend for retail[2]. - The occupancy rate for office properties at year-end was 89%, down from 90% in 2022, while retail properties had a 97% occupancy rate, down from 99%[11]. - The rental income from retail sales grew by 45% year-on-year, outperforming the overall retail market in Hong Kong[6]. - The retail occupancy rate remained stable at 97% as of December 31, 2023 (2022: 99%) despite external challenges[15]. - The average rental levels for renewals and new leases in the office sector continued to trend downward, with a rental rate of 89% as of December 31, 2023 (2022: 90%) for the office portfolio[12]. Capital Expenditure and Investments - The total capital expenditure for the year decreased to HKD 1,669 million in 2023 from HKD 3,081 million in 2022, mainly from construction projects at the Kadoorie Hill and Lee Gardens[36]. - The investment in the healthcare sector through a minority stake in New Wind Tianyu Group continues to grow, with total other financial investments amounting to HKD 1,557 million as of December 31, 2023, down from HKD 2,035 million in 2022[31]. - The group is strategically developing the Carrian Mountain Road project in partnership with the Wah Lee Group, expected to be completed by the end of 2026[20]. Debt and Financial Ratios - The total debt of the group decreased to HKD 25,717 million as of December 31, 2023, down from HKD 27,487 million as of December 31, 2022, primarily due to debt repayments during the year[38]. - The debt-to-equity ratio at the end of 2023 was 27.2%, an increase from 23.4% at the end of 2022[41]. - Financial expenses rose to HKD 478 million in 2023 from HKD 423 million in 2022, attributed to the rising interest rate environment, with an effective interest rate of 4.2% compared to 2.8% in 2022[27]. Operational Challenges and Strategic Initiatives - The company faces challenges from geopolitical tensions, macroeconomic uncertainties, and structural changes in the office and retail markets post-pandemic[5]. - The company aims to continue expanding and optimizing its operations in the vibrant community of Lee Gardens as it moves into its 101st year[2]. - The group launched various marketing initiatives to enhance core business and maintain sales flow, resulting in a recovery of high-end member retention rates to pre-pandemic levels[17]. - The company is undergoing significant optimization works in the Lee Gardens area, with major renovations for flagship stores expected to complete in phases between 2024 and 2025[6]. Sustainability and Community Engagement - The company received multiple awards for its commitment to sustainable development, including the 2023 Hong Kong Sustainable Development Award[6]. - The company emphasizes its unique business model and community engagement as key factors for long-term development[5]. Employee and Administrative Costs - Employee costs, including directors' remuneration, rose to HKD 331 million in 2023 from HKD 310 million in 2022, marking a 6.8% increase[67]. - The total number of employees increased to 516 in 2023 from 486 in 2022, reflecting a growth of 6.2%[77].