SWIREPROPERTIES(01972)2024-04-03 08:30Financing and Investment - The company successfully issued RMB 3.2 billion green bonds, becoming the first Hong Kong enterprise to publicly issue RMB green bonds[8] - 60% of bond and loan financing came from green finance, with a successful issuance of RMB 3.2 billion green bonds[32] - The company plans to invest HKD 100 billion over the next decade in various projects in Hong Kong and mainland China, with HKD 30 billion allocated for residential sales projects including Southeast Asia[72] - Approximately 60% of the HKD 100 billion investment plan has been committed to new and ongoing development projects[42] - The company is investing HKD 100 billion in expanding its residential property portfolio in Southeast Asia, focusing on four major cities: Jakarta, Ho Chi Minh City, Bangkok, and Singapore[53] - The company is strategically acquiring properties to enhance its office business footprint in the region[43] - The group plans to develop residential projects on land reserves in Miami, with ongoing projects in various regions including Hong Kong, mainland China, Indonesia, Vietnam, and Thailand[79] Acquisitions and Developments - The acquisition of remaining equity in the Chengdu project was completed, officially renaming it "Chengdu Taikoo Li"[8] - The group increased its stake in Chengdu Taikoo Li from 50% to 65% for a consideration of RMB 1 billion, and subsequently acquired 100% interests in property management and investment properties for RMB 5.9 million and RMB 4.49 billion respectively[73] - In February 2023, the group acquired a 40% interest in land in Bangkok for approximately THB 2.4 billion, with plans to develop it for residential use[73] - The company is developing multiple large-scale projects in first-tier and emerging first-tier cities in mainland China, including the largest "Taikoo Li" project in Xi'an[45] - The company has committed to several key projects, including residential developments in Hong Kong and retail-led projects in cities like Xi'an and Sanya[72] - The company is exploring new investment opportunities in the Greater Bay Area, including a new hotel series in Shenzhen[45] Financial Performance - Revenue for 2023 reached HKD 14,670 million, representing a 6% increase from HKD 13,826 million in 2022[34] - Basic earnings attributable to shareholders increased by 33% to HKD 11,570 million, up from HKD 8,706 million[34] - The reported earnings attributable to shareholders decreased by 67% to HKD 2,637 million from HKD 7,980 million[34] - The net profit attributable to shareholders for property investment was HKD 7,325 million in 2023, compared to HKD 8,025 million in 2022, reflecting a decrease of 8.7%[36] - The total equity, including non-controlling interests, decreased by 1% to HKD 288,149 million from HKD 292,258 million[34] - The total assets of the company reached HKD 324,828 million in 2023, up from HKD 311,205 million in 2022, representing an increase of 4.9%[36] Sustainability and ESG - The company has a sustainable development strategy for 2030, focusing on community revitalization and enhancing the quality of life for residents[20] - The company has maintained a "AAA" rating for six consecutive years in the global ESG scoring[13] - The company aims to achieve net-zero emissions by 2050 and is actively participating in international initiatives to mitigate climate change[49] - The company aims to achieve net-zero emissions by 2030 and has been recognized in the Dow Jones Sustainability World Index, ranking second in 2023[54] - 50% of tenants signed the "Environmental Performance Charter," covering over 3.5 million square feet of lettable area[30] Employee Engagement and Training - The company has been recognized as one of the top five most attractive employers in Hong Kong according to the Randstad 2023 Employer Brand Survey[16] - Average training hours per employee increased to 23 hours, achieving 89% of the target for a 25% increase by 2025[24] - The lost time injury rate (LTIR) for non-hotel operations was 0.64, below the target of ≤1.2[25] - 35.7% of board members are female, exceeding the target of at least 30%[32] Market Performance and Trends - The Hong Kong retail property portfolio showed strong recovery, with some malls returning to pre-pandemic sales levels[44] - Retail sales in mainland China have significantly exceeded pre-pandemic levels, with strong recovery observed in shopping malls following the lifting of pandemic restrictions[52] - The Hong Kong office market remains weak, with increased supply leading to higher vacancy rates and pressure on demand due to economic uncertainty and high interest rates[51] - The overall demand for retail space in Guangzhou and Chengdu remains strong, while demand in Shanghai and Beijing is expected to stabilize[126] Property Portfolio and Occupancy - The total floor area of the mainland property portfolio is 30.51 million square feet, with 14.14 million square feet completed and 16.38 million square feet under development[109] - The total floor area of completed retail properties in mainland China was 7.84 million square feet, with an occupancy rate of 94%[113] - The total floor area of completed office properties in mainland China is 4.2 million square feet, with the group's attributable interest being 2.9 million square feet[128] - The occupancy rate of the office property portfolio was 89% as of December 31, 2023, and 93% when excluding the newly completed Taikoo Place Two[84] Hotel Management and Performance - The hotel business in Hong Kong and mainland China is expected to continue improving with the increase in international visitors, with the group's hotel, The Upper House, ranked fourth in the "World's 50 Best Hotels" list[53] - The hotel management segment recorded an EBITDA of HKD 88 million in 2023, a significant recovery from a loss of HKD 118 million in 2022[166] - The average room revenue and occupancy rates for the hotels have rebounded strongly following the reopening of borders[167] - The company is expanding its hotel management business, focusing on extending its hotel brand beyond Hong Kong[178]