希慎兴业(00014) - 2023 - 年度财报

Financial Performance - Revenue for 2023 was HKD 3,210 million, a decrease of 7.2% compared to 2022[65]. - Recurring basic profit for 2023 was HKD 1,832 million, reflecting a decline of 11.2% from the previous year[67]. - The company reported a net loss attributable to shareholders of HKD 872 million for the year[84]. - Total revenue for 2023 was HKD 3,210 million, a decrease of 7.2% compared to HKD 3,460 million in 2022[79]. - The recurring basic profit fell by 11.2% to HKD 1,832 million in 2023, down from HKD 2,063 million in 2022[102]. - The group's operating expenses increased to 29% of revenue in 2023, up from 26% in 2022, primarily due to rising electricity costs and the impact of the Lee Garden optimization project[139]. - Financial expenses rose to HKD 478 million in 2023 from HKD 423 million in 2022, attributed to a higher market interest rate environment, with an effective interest rate of 4.2% compared to 2.8% in 2022[140]. - Cash generated from operating activities was HKD 2,431 million in 2023, a decrease of HKD 160 million from HKD 2,591 million in 2022[151]. - The group paid dividends totaling HKD 1,479 million in 2023, slightly down from HKD 1,486 million in 2022[153]. - The group's net cash flow was HKD 21 million in 2023, a significant improvement from a net outflow of HKD 4,049 million in 2022[151]. Asset and Investment Management - Total assets (excluding cash and debt securities) amounted to HKD 109,678 million, showing a slight increase of 0.7%[69]. - The total value of investment properties as of December 31, 2023, was HKD 96,005 million, down 0.8% from HKD 96,787 million in 2022[90]. - The fair value loss of investment properties for the year was HKD 2,763 million, compared to HKD 3,213 million in 2022[90]. - The group's share of joint ventures' performance remained stable at HKD 270 million in 2023, compared to HKD 274 million in 2022[93]. - The group's share of results from joint ventures decreased to HKD 270 million in 2023 from HKD 274 million in 2022[145]. - Other financial investments totaled HKD 1,557 million as of December 31, 2023, down from HKD 2,035 million in 2022, mainly due to a fair value loss of HKD 525 million[146]. - The investment in New Wind Tianyu Group represents a strategic opportunity in the rapidly growing healthcare sector in mainland China[146]. Market and Operational Challenges - The office rental market continues to face challenges due to structural changes post-pandemic, with increased supply leading to more flexible leasing terms and rental incentives[10]. - The office market in Hong Kong is expected to face continued downward pressure due to increased supply of new projects in 2023 and 2024[107]. - The occupancy rate for office spaces was 89% in 2023, down from 90% in 2022[81]. - The rental income from retail spaces showed a decline, with a 6.7% decrease in revenue from HKD 1,643 million in 2022 to HKD 1,533 million in 2023[79]. - The retail business revenue showed a decrease of 6.7% to HKD 1,533 million, despite a stable occupancy rate and some improvement in retail sales due to increased tourist arrivals[115]. Strategic Initiatives and Developments - The first phase of the Lee Gardens optimization project was completed and will be unveiled by the end of 2023, with flagship stores of major high-end brands undergoing renovations to be completed in stages in 2024 and 2025[12]. - The new URBANHOOD lifestyle space, opening in December 2023, will feature nearly 40 lifestyle, entertainment, and dining brands, some of which are debuting in Hong Kong[11]. - The company is investing in a new pedestrian passage system to enhance connectivity in the Lee Garden area, expected to become a premier business hotspot in Hong Kong[26]. - The optimization project for the Lee Garden area commenced in 2023 and is anticipated to be completed by 2024[32]. - The flagship stores of major luxury brands in Lee Gardens are undergoing renovations, expected to be completed in phases by 2024 and 2025, further solidifying Lee Gardens as a top luxury brand destination[116]. - The joint venture project at Carrian Mountain Road is on schedule for completion by the end of 2026, marking a significant milestone in Hysan's long-term development plan[125]. - A joint venture with IWG was established to tap into the economic growth potential of the Greater Bay Area's workspace ecosystem[190]. Community Engagement and Sustainability - Hysan's community business model is crucial for the long-term development of Lee Gardens, focusing on inclusivity, social welfare, and strict environmental management standards[14]. - The company has received multiple awards for its commitment to sustainable development, including the 2023 Hong Kong Sustainable Development Award[14]. - The company aims to strengthen its connection with different age groups through various activities and programs, enhancing community engagement[8]. - The UrbanPark and Playdot initiatives have been launched to enhance customer experiences, including the first covered skate park in Hong Kong and a dedicated indoor play space[121]. - Carbon intensity was reduced by 38% compared to the baseline year of 2005[193]. - The company completed energy audits for 100% of its property portfolio[193]. - The company maintained a 4-star corporate governance award and achieved an AA rating in ESG benchmarks[196]. Financial Health and Debt Management - The debt-to-equity ratio increased to 27.2% in 2023 from 23.4% in 2022[77]. - The net interest coverage ratio (after capitalized interest) decreased to 9.6 times in 2023 from 13.1 times in 2022[77]. - As of December 31, 2023, the total debt of the group decreased to HKD 25,717 million from HKD 27,487 million as of December 31, 2022, primarily due to debt repayments during the year[158]. - Bank loans accounted for approximately 39% of the total debt, with the remaining 61% raised from the capital markets as of December 31, 2023[159]. - The average repayment period of the debt portfolio was approximately 4.5 years as of December 31, 2023, down from 4.8 years in 2022, with about HKD 158 million of debt maturing in 2024[161]. - The fixed-rate debt ratio (after considering interest rate swaps) was 62% as of December 31, 2023, compared to 61% at the end of 2022, with the effective interest rate rising from 2.8% to 4.2%[167]. - The total amount of sustainable financing transactions reached approximately HKD 19,300 million, representing about 49% of the total debt[171]. - Moody's and Fitch maintained the group's credit ratings at Baa1 and BBB+, respectively, reflecting strong financial strength and prudent capital management strategies[165].