SHK PPT(00016)2024-03-20 08:31Financial Performance - For the six months ended December 31, 2023, the group's revenue was HKD 27,542 million, a slight increase of 0.4% compared to HKD 27,428 million in the same period last year[6]. - The attributable profit to shareholders was HKD 9,145 million, representing an increase of 8.7% from HKD 8,410 million year-on-year[6]. - Basic earnings per share were HKD 3.16, up 8.7% from HKD 2.90 in the previous year[10]. - Total comprehensive income for the period was HKD 11,372 million, significantly higher than HKD 4,180 million in the prior year, indicating a substantial increase of 171.5%[44]. - The net profit for the period was HKD 9,473 million, up from HKD 8,790 million, representing a growth of 7.8% year-on-year[44]. - The company reported a profit of HKD 8,410 million for the period, contributing to a total comprehensive income of HKD 3,847 million[47]. - The company reported a profit of HKD 9,145 million for the six months ended December 31, 2023, compared to a profit of HKD 9,473 million for the previous period[48]. - The total operating profit, including fair value changes of investment properties, was HKD 13,881 million, with a pre-tax profit of HKD 11,244 million[52]. Revenue Sources - Total rental income increased by 4% to HKD 12,454 million, while net rental income rose by 4.9% to HKD 9,326 million[6][13]. - The hotel business generated revenue of HKD 2,757 million, with a profit of HKD 430 million[51]. - The telecommunications segment reported revenue of HKD 3,390 million, contributing HKD 361 million to the overall performance[51]. - Property sales in Hong Kong generated revenue of HKD 3,612 million, while mainland property sales contributed HKD 256 million[51]. - The hotel division's revenue increased by 48% to HKD 2.76 billion, with an operating profit of HKD 430 million, recovering from a loss of HKD 63 million in the previous year[90]. Dividends and Shareholder Returns - The interim dividend declared is HKD 0.95 per share, a decrease of 24% compared to HKD 1.25 in the same period last year[11]. - The company declared a dividend of HKD 10,722 million for the year-end, consistent with previous distributions[47]. - The interim dividend will be paid in cash on March 20, 2024, with the ex-dividend date set for March 12, 2024[151]. Property and Investment Developments - The group added two residential land parcels through land deed amendments, with a total buildable floor area of approximately 1 million square feet[14]. - The group recorded a profit from property sales of HKD 2,040 million, down from HKD 3,366 million in the previous year[12]. - The group expects a significant increase in completion volume to approximately 3.1 million square feet in the second half of the fiscal year, with about 2.5 million square feet being residential properties for sale[17]. - The group has unrecognized contract sales amounting to HKD 32.8 billion, with an estimated HKD 22.4 billion expected to be recognized in the second half of the fiscal year[17]. - The group is integrating sustainable development and technology elements into new projects, including smart home features and green spaces[16]. Financial Position and Debt Management - The company's bank and other borrowings increased significantly to HKD 20,290 million from HKD 7,508 million, reflecting a rise of 169.5%[45]. - The net debt as of December 31, 2023, was HKD 127.8 billion, up from HKD 109.8 billion as of June 30, 2023, with a debt-to-equity ratio of 21.2%[94]. - The average effective interest rate increased to 4.5% as of December 31, 2023, compared to 3.1% in 2022, due to rising borrowing costs[96]. - The company maintains a strong financial position with ample unused credit facilities, ensuring sufficient liquidity for future investment opportunities[101]. Corporate Governance and Management - The company is committed to high levels of corporate governance, with a diverse board of 19 members ensuring effective strategy and risk management[32]. - The company has a strong governance structure with independent non-executive directors serving on various committees, including audit, risk management, and remuneration[111][112][113]. - The company continues to engage with its independent directors to leverage their expertise in navigating market challenges and opportunities[111][112][113]. - The company is committed to continuous improvement in governance practices, reflecting best practices in corporate governance and accountability[111][112][113]. Sustainability and Community Engagement - The group is actively involved in community support initiatives, including sponsoring cycling events and educational programs to promote reading among youth[36]. - The group has achieved significant ESG recognition, being included in the S&P Global Sustainability Yearbook for the second consecutive year and receiving the highest AAA rating in the Hang Seng Sustainability Index since 2020[33]. - The group is the first developer in Hong Kong to purchase and use fully electric construction equipment, aiming to reduce carbon emissions on construction sites[35]. Employee and Workforce Management - The total employee compensation for the group was approximately HKD 7.135 billion, reflecting the company's commitment to market-level compensation and individual performance[149]. - The company has over 40,000 employees as of December 31, 2023, indicating a stable workforce size[149]. - The company has a long-term incentive plan in place for key employees, which includes stock options and share reward plans[149].