SWIREPROPERTIES(01972)2024-03-14 04:00Financial Performance - Revenue for 2023 increased by 6% to HKD 14,670 million compared to HKD 13,826 million in 2022[4] - Basic earnings attributable to shareholders rose by 33% to HKD 11,570 million from HKD 8,706 million in 2022[4] - The company reported a net profit attributable to shareholders of HKD 2,637 million for 2023, down from HKD 7,980 million in 2022, reflecting a decrease of 67.0%[25] - The basic earnings per share increased by 33% to HKD 1.98 from HKD 1.49 in 2022[4] - The total comprehensive income for 2023 was HKD 1,869 million, compared to HKD 3,340 million in 2022[144] - The profit for the year 2023 was HKD 2,637 million, compared to HKD 7,980 million in 2022, indicating a decrease of about 67%[175] - The recurring basic profit for 2023 was HKD 7.285 billion, compared to HKD 7.176 billion in 2022, indicating a stable performance despite market challenges[17] Cash Flow and Debt - Cash generated from operations increased by 18% to HKD 7,492 million, up from HKD 6,332 million in 2022[4] - The company reported a net debt of HKD 36,679 million, a 94% increase from HKD 18,947 million in 2022[4] - The company’s total borrowings amounted to HKD 41,169 million in 2023, a significant increase from HKD 22,835 million in 2022[138] - The net cash position at the end of 2023 was HKD 5,097 million, compared to HKD 4,502 million at the end of 2022, showing an increase of 13.2%[147] - The weighted average debt maturity is 3.0 years, with a weighted average cost of debt at 4.1%[135] - The company’s cash interest coverage ratio was 4.0 in 2023, reflecting strong cash flow management[139] Investment and Development Plans - The company plans to invest HKD 100 billion over the next decade, with nearly 60% of the funds already committed to new and ongoing development projects[5] - The company plans to invest HKD 300 billion to expand its flagship projects in Hong Kong, with the latest Grade A office building achieving a rental rate of 62%[8] - The company plans to invest HKD 500 billion in the Chinese mainland market, focusing on large-scale integrated development projects[10] - The company aims to double its total floor area in mainland China by 2032, currently operating six international projects in four major cities[5] - The investment plan of HKD 100 billion is progressing smoothly, with nearly 60% of the planned funds committed to new projects aimed at long-term development in key markets[16] Retail and Commercial Performance - The retail portfolio in Hong Kong showed strong recovery in 2023, with retail sales significantly increasing, and membership rewards program members grew by over 30%[9] - Rental income from retail properties rose to HKD 7,143 million in 2023, up from HKD 5,849 million in 2022, marking a significant increase of 22.1%[25] - The retail sales of Taikoo Plaza, East Point City, and Taikoo City Center increased by 44%, 43%, and 6% respectively in 2023, while overall retail sales in Hong Kong rose by 16%[52] - The total rental income from investment properties in mainland China for 2023 was HKD 6.045 billion, reflecting a 38% increase compared to 2022, driven by the recovery post-pandemic and enhanced tenant mix in shopping malls[67] - The total area of completed retail properties in mainland China was 780,000 square feet, with attributable rental income rising 20% to HKD 5.101 billion in 2023[68] Sustainability and Community Engagement - The company is committed to achieving net-zero emissions by 2050 and is actively implementing sustainable development solutions across its property portfolio[16] - The company has launched a supply chain sustainability participation program in Hong Kong and mainland China, collaborating with EcoVadis to enhance supplier performance[21] - The "GPP Academy" program, initiated in 2023, aims to promote knowledge sharing among office tenants to improve sustainability performance[20] - The company is committed to community engagement and has launched various initiatives to stimulate the local economy post-pandemic[13] Market Outlook and Challenges - The office market in Hong Kong is expected to remain under pressure in 2024 due to low demand and increased supply, with rental rates facing downward pressure[18] - The outlook for the Hong Kong office market in 2024 remains bleak due to weak demand and increased supply, with continued downward pressure on rental rates[47] - Retail sales in mainland China are expected to stabilize in 2024 after years of double-digit growth, with a cautious attitude from retailers but an optimistic long-term outlook[79] Property Portfolio and Acquisitions - As of December 31, 2023, the group's total attributable property portfolio amounted to approximately 39.1 million square feet, with 34.4 million square feet being investment properties and hotels[32] - The group has nine ongoing residential development projects, including four in Hong Kong and two in mainland China[36] - The group acquired the remaining 35% interest in Chengdu Taikoo Li in February 2023, increasing its ownership to 100%[69] - The group signed an agreement to sell 12 office floors in Hong Kong for HKD 5.4 billion, with the sale expected to complete in stages from December 2025 to December 2028[31] Hotel Performance - The hotel management segment recorded an EBITDA of HKD 88 million in 2023, a significant recovery from an EBITDA loss of HKD 118 million in 2022[118] - The average room revenue and occupancy rates for hotels in Hong Kong and mainland China have significantly rebounded following the lifting of pandemic-related restrictions[118] - The group anticipates further improvement in hotel performance in Hong Kong and growth in mainland China hotel business in 2024[129]