WHARF REIC(01997)2024-04-09 09:18Visitor Traffic and Retail Performance - In 2023, the average weekend foot traffic at Harbour City reached 280,000 visitors per day[12]. - The number of visitors to Hong Kong and retail sales were only 52% and 84% of 2018 levels, respectively[11]. - The group successfully attracted luxury brands such as De Beers, Fendi, and Van Cleef & Arpels, increasing the number of high-end street stores to 16, with some achieving double-digit sales growth[12]. - Overall revenue for Harbour City increased by 10%[24]. - The rental rate for Harbour City shopping mall reached 97% by year-end[24]. - The total revenue for Times Square decreased by 3%, with a shopping mall revenue increase of 3%[34]. - Times Square's shopping mall rental rate improved to 95%[34]. Financial Performance - Group revenue increased by 7% to HKD 13.3 billion, compared to HKD 12.5 billion in 2022[17]. - Operating profit rose by 13% to HKD 10 billion, up from HKD 8.8 billion in the previous year[17]. - Basic net profit decreased by 3% to HKD 6 billion, down from HKD 6.2 billion in 2022[17]. - Shareholders' profit attributable to the group was HKD 4.8 billion, a significant recovery from a loss of HKD 8.9 billion in 2022, representing a 154% increase[17]. - Total assets decreased by 4% to HKD 245.3 billion, compared to HKD 255.2 billion in 2022[17]. - Net debt reduced by 20% to HKD 36.3 billion, down from HKD 45.1 billion in the previous year[17]. - The company declared a second interim dividend of HKD 0.61 per share, consistent with the previous year, leading to a total annual dividend of HKD 1.28 per share, down from HKD 1.31 in 2022[17]. Sustainability and Corporate Social Responsibility - The group aims to achieve long-term goals by 2030, including reducing greenhouse gas emissions, electricity intensity, and water usage[9]. - The group continues to be included in the Hang Seng Sustainable Development Index with an AA+ rating[9]. - The group is committed to corporate social responsibility initiatives, including various educational and artistic programs[9]. - The group aims to achieve carbon neutrality by 2030 through reducing direct emissions and electricity consumption, with ongoing reviews of these targets to align with global agendas[59]. - The group has obtained ISO 14001 environmental management system certification during the reporting year, enhancing its environmental performance[59]. - The group is actively exploring opportunities for developing green and smart building renovation technologies, including the use of innovative products like iPaint[59]. - The group has established a robust governance structure to address environmental, social, and governance challenges, led by a sustainability oversight committee[57]. Governance and Board Structure - The company has strengthened its corporate governance framework to enhance transparency and accountability for stakeholders[83]. - The board consists of 12 directors, with 4 executive directors and 8 independent non-executive directors, ensuring strong independence with independent directors making up 67% of the board[89]. - The company aims to maintain at least 17% female representation on the board, with 2 female directors currently serving[89]. - The board's diversity policy is reviewed at least annually to ensure its effectiveness and compliance with regulatory requirements[89]. - The company has adopted a nomination policy to guide the selection and appointment of directors, ensuring a transparent process[91]. Risk Management and Internal Controls - The audit committee oversees the identification and reporting of risks, including environmental, social, and governance risks[113]. - The company has implemented a robust internal control framework to safeguard assets and ensure the reliability of financial information[117]. - The board is responsible for preparing the financial statements in accordance with the Hong Kong Financial Reporting Standards and ensuring internal controls to prevent material misstatements[195]. - The audit identified significant risks related to fraud, necessitating a high level of professional skepticism throughout the audit process[196]. Community Engagement and Donations - The group donated HKD 3 million to the Hong Kong Community Chest in 2023, supporting those in need[63]. - The company reported a total donation of HKD 32 million during the fiscal year[140]. - The company actively engages in community activities, with over 1,600 volunteer hours contributed by its team in 2023[63]. Future Outlook and Strategic Initiatives - The company provided guidance for the next fiscal year, projecting a revenue growth of 10% to 12%[153]. - The company is considering strategic acquisitions to enhance its market position, with a budget of $100 million allocated for potential deals[152]. - The board emphasized a focus on sustainability initiatives, aiming for a 30% reduction in carbon footprint by 2025[153].