SHK PPT(00016)2024-02-28 08:34Financial Performance - The company's basic profit attributable to shareholders for the six months ended December 31, 2023, was HKD 8.906 billion, down from HKD 9.465 billion in the same period last year, representing a decrease of approximately 5.9%[2]. - The total revenue for the group's business segments for the six months ended December 31, 2023, was HKD 33.933 billion, slightly up from HKD 33.864 billion in the previous year[68]. - The net profit for the period was HKD 9,473 million, up from HKD 8,790 million year-on-year, representing an increase of approximately 7.8%[44]. - The group reported a pre-tax profit of HKD 10,958 million, compared to HKD 10,458 million in the previous year, showing a growth of approximately 4.8%[43]. - The total comprehensive income for the period was HKD 11,372 million, significantly higher than HKD 4,180 million in the previous year[44]. - The group reported a net profit of HKD 7,721 million for the period, compared to HKD 9,473 million in the previous period, indicating a decrease of 18.5%[47]. - The company recorded a profit attributable to shareholders of HKD 9,145 million, compared to HKD 8,410 million in the previous year[56]. - The basic and diluted earnings per share for the company were HKD 3.16, compared to HKD 2.90 in the previous year, indicating a year-on-year increase of 8.97%[43]. Revenue Sources - The total rental income for the period increased by 4% year-on-year to HKD 12.454 billion, while net rental income rose by 5% to HKD 9.326 billion[5]. - Revenue from property sales in Hong Kong reached HKD 3,612 million, while mainland China contributed HKD 3,868 million, totaling HKD 7,480 million in property sales[47]. - The hotel division's revenue increased by 48% to HKD 2.757 billion, with an operating profit of HKD 430 million compared to a loss of HKD 63 million in the previous year[70]. - The transportation infrastructure and logistics segment recorded a 12% revenue increase to HKD 4.342 billion, with operating profit rising by 19% to HKD 947 million[71]. - Total rental income in mainland China increased by 16% year-on-year to RMB 2.89 billion, driven by rising retail rental income and the conclusion of rent concessions[18]. Dividends and Shareholder Returns - The interim dividend declared was HKD 0.95 per share, a decrease of 24% compared to the same period last year[3]. - The company announced an interim dividend of HKD 0.95 per share for the six months ending December 31, 2023, compared to HKD 1.25 per share for the same period in 2022[88]. - The record date for shareholders entitled to the interim dividend is March 14, 2024, with the shares trading ex-dividend from March 12, 2024[89]. Property Development and Investment - The group recorded a total contract sales amount of approximately HKD 12.9 billion during the period, with a total contract sales amount in Hong Kong of approximately HKD 9.6 billion[4][8]. - The group added two residential land parcels, providing a total gross floor area of approximately 1 million square feet[6]. - The group's land reserves in Hong Kong amounted to approximately 58.88 million square feet, with about 36.6 million square feet being diversified completed properties[7]. - The group has a total land reserve of 67.2 million square feet in mainland China as of December 31, 2023, with 20.9 million square feet completed and the majority located in major urban commercial areas[16]. - The group plans to launch several major projects in Hong Kong over the next ten months, including The YOHO Hub II and NOVO LAND Phase III[39]. Market Position and Strategy - The group aims to maintain its leading market position through cost control measures and enhancing building quality while responding to customer expectations for healthy living and green smart homes[8]. - The group is actively adjusting its retail tenant mix to attract customers, including introducing experiential retail stores and various promotional activities to stimulate local consumption[11]. - The group plans to enhance its property investment portfolio's competitiveness through innovative concepts and digital solutions to achieve higher green building standards[38]. - The company remains confident in the long-term prospects of the Hong Kong property market despite short-term fluctuations[37]. Sustainability and Technology - The group plans to integrate sustainable development and technology elements into new projects, including the introduction of smart home devices and 5G network coverage[8]. - The group aims to integrate smart technology into operations to save energy and reduce carbon emissions[34]. - The group has received multiple green building certifications, including LEED Platinum for projects in Hong Kong and Shanghai[33]. - The group has established urban farms in several projects to promote green living and fresh food cultivation[34]. Financial Position and Debt Management - The group reported a net debt ratio of 21.2% as of December 31, 2023, primarily due to the distribution of the previous fiscal year's final dividend[27]. - The group’s net debt as of December 31, 2023, stands at HKD 127.786 billion, compared to HKD 109.773 billion as of June 30, 2023[77]. - The group maintains a strong financial position, ensuring ample unused credit facilities primarily for medium to long-term financing[80]. - The group’s fixed-rate debt comprises 29% of total debt, while floating-rate debt accounts for 71%[79]. Corporate Governance and Compliance - The interim financial results for the six months ending December 31, 2023, have been reviewed by Deloitte, in accordance with the Hong Kong Institute of Certified Public Accountants' standards[91]. - The company has complied with the corporate governance code as per the listing rules, although the roles of Chairman and CEO are not separated[92]. - The group has been recognized for its high level of corporate governance and received multiple awards, including "Best Overall Real Estate Company" in the Asia-Pacific region from Euromoney[31].