KERRY PPT(00683)2024-03-20 08:30Financial Performance - For the fiscal year ending December 31, 2023, the company reported total revenue of HKD 13,090 million, a decrease of 10% compared to HKD 14,590 million in 2022[3]. - The company achieved a net profit attributable to shareholders of HKD 3,243 million, an increase of 18% from HKD 2,755 million in 2022, primarily due to a fair value increase of investment properties[5]. - The basic earnings per share for 2023 was HKD 2.23, up from HKD 1.90 in 2022, reflecting an 18% increase[5]. - The group’s consolidated revenue from development properties in mainland China and Hong Kong increased by 22% to HKD 10.416 billion in 2023, compared to HKD 8.562 billion in 2022[21]. - The consolidated revenue from investment and hotel properties in mainland China and Hong Kong grew by 14% to HKD 7.711 billion in 2023, up from HKD 6.789 billion in 2022[21]. - The company reported a revenue of HKD 13.09 billion for the year ended December 31, 2023, down from HKD 14.59 billion in 2022, representing a decrease of approximately 10.3%[49]. - The net profit for the year was HKD 4.16 billion, compared to HKD 3.47 billion in 2022, reflecting an increase of about 19.8%[49]. - The company’s earnings per share (EPS) for the year was HKD 2.23, compared to HKD 1.90 in 2022, marking an increase of 17.4%[49]. Property Sales and Revenue - Property sales revenue fell to HKD 6,349 million, down 26% from HKD 8,543 million in the previous year[3]. - Contract sales for the year totaled HKD 14,071 million, significantly up from HKD 5,354 million in 2022, driven by the successful sales of residential projects in Shanghai, Hangzhou, and Hong Kong[6]. - The total contract sales for The Aster project reached HKD 850 million, while the combined sales from the projects in Wong Chuk Hang amounted to HKD 1.192 billion[31]. - Contract sales in Hong Kong amounted to HKD 3.435 billion for the year ended December 31, 2023, a decrease from HKD 3.673 billion in 2022, with contributions from five projects including The Aster and high-end residential projects[29]. Investment Properties and Development - The company’s investment properties and hotel portfolio generated revenue of HKD 6,741 million, an 11% increase from HKD 6,047 million in 2022, attributed to the recovery of hotel operations post-pandemic[6]. - The total land bank increased to 50.9 million square feet following the acquisition of two land parcels in Hong Kong and mainland China, supporting future project development[8]. - The group has a robust pipeline of development properties with a total attributable floor area of 10.814 million square feet expected to be completed by 2028, including significant projects in Hangzhou, Shenyang, and Shanghai Huangpu[16]. - The investment property portfolio totals 18.403 million square feet, with 83% located in mainland China and 17% in Hong Kong, contributing 15.765 million square feet of investment properties[18]. - The group anticipates adding 11.028 million square feet of floor area to its investment property and hotel portfolio over the next five years, representing a 55% increase[20]. - The group aims to enhance recurring income through the gradual increase of its investment property portfolio in Shanghai, focusing on high-quality residential and commercial developments[13]. Financial Position and Debt - The debt ratio as of December 31, 2023, was 34.1%, a slight increase from 33.6% in 2022[22]. - Total borrowings amounted to HKD 55.131 billion as of December 31, 2023, an increase from HKD 52.870 billion in 2022[45]. - The company maintains a prudent financial policy for managing liquidity and debt, focusing on reducing risks associated with liquidity, foreign exchange, interest rates, and credit[37]. - The proportion of sustainable finance loans reached 48% of the total loan portfolio, amounting to approximately HKD 41.116 billion as of December 31, 2023[44]. - The company’s fixed-rate debt ratio increased to 43% as of December 31, 2023, up from 37% in 2022[40]. - Approximately 64% of the total borrowings are due for repayment in the next two years[45]. Operational Performance - The overall occupancy rate for the retail portfolio remained stable at 85% in 2023, up from 83% in 2022[26]. - The office portfolio's occupancy rate improved to 90% in 2023, compared to 88% in 2022[26]. - The residential leasing portfolio maintained a stable occupancy rate of 92% in 2023, up from 86% in 2022[26]. - Hotel revenue in mainland China increased by 66% to HKD 1.755 billion in 2023, compared to HKD 1.056 billion in 2022[25]. Dividends and Shareholder Information - The board proposed a final dividend of HKD 0.95 per share, maintaining the total cash dividend for the year at HKD 1.35 per share[5]. - The final dividend will be distributed to eligible shareholders on June 5, 2024[91]. - The annual general meeting for shareholders will be held on May 20, 2024, at 2:30 PM[92]. - The total cash dividend for the year, including an interim dividend of HKD 0.40 per share, amounts to HKD 1.35 per share, consistent with the previous year[90]. Compliance and Governance - The company has fully complied with the Corporate Governance Code throughout 2023, except for the dual role of the Chairman and CEO held by Mr. Guo[86]. - The company confirmed compliance with the standard code for securities trading by directors throughout 2023[88].