希慎兴业(00014) - 2019 - 中期财报

Revenue and Profitability - Revenue and recurring basic profit increased by 9.1% and 8.9% year-on-year, benefiting from the full operational contribution of the new office building, Lee Garden Three[4] - Basic earnings per share for recurring profit and basic profit were both 133 HK cents, reflecting an increase of 8.9%[5] - The group's revenue for the first half of 2019 was HKD 2,086 million, an increase of 9.1% compared to HKD 1,912 million in 2018[12] - The recurring basic profit and basic profit for the first half of 2019 were both HKD 1,394 million, up 8.9% from HKD 1,280 million in 2018[12] - The announced profit for the first half of 2019 was HKD 2,783 million, down from HKD 3,013 million in 2018, primarily due to fair value gains from investment properties of HKD 1,453 million[12] - The group reported a total profit before tax of HKD 3,257 million for the six months ended June 30, 2019, compared to HKD 3,424 million for the same period in 2018, indicating a decrease of 4.9%[55] Occupancy and Sales Performance - The occupancy rates for retail and office segments were 96% and 97% respectively[4] - Estimated sales for retail tenants increased by approximately 4%, outperforming the overall retail sales decline of 2.6% in Hong Kong[7] - The occupancy rates for retail and office properties were 96% and 97% respectively, while the residential property occupancy rate was 91%[12] - The retail business revenue increased by 4.1% to HKD 1,001 million, with a rental income of HKD 49 million[13] - The office business revenue rose by 13.3% to HKD 929 million, including rental income of HKD 3 million from new leases[15] - The residential business revenue surged by 20.0% to HKD 156 million, with an occupancy rate increase to 91%[17] Shareholder Equity and Dividends - Shareholders' equity rose to HKD 76,021 million, a 2.1% increase from HKD 74,431 million[5] - The first interim dividend declared was 27 HK cents per share, unchanged from the previous year[5] - The company declared an interim dividend of HKD 283 million for the first half of 2019, maintaining the same amount as in 2018[70] Expenses and Financial Management - Operating expenses increased by 6.3% to HKD 238 million in 2019, primarily due to the full-year contribution from the new Lee Gardens Phase 3 and increased marketing resources in response to a challenging retail environment[22] - Administrative expenses rose by 13.9% to HKD 123 million, reflecting the filling of previous vacancies and increased investment in technology applications[22] - Financial expenses increased to HKD 127 million, up from HKD 107 million in the same period last year, mainly due to the issuance of new bonds and rising interest rates on floating-rate debt[23] Debt and Financial Ratios - The total outstanding debt increased to HKD 7,576 million as of June 30, 2019, from HKD 6,326 million at the end of 2018[29] - The company's debt-to-equity ratio increased slightly from 4.7% at the end of 2018 to 4.9% at mid-2019, reflecting the impact of new borrowings[31] - The net interest coverage ratio improved to 19.1 times in the first half of 2019, compared to 17.9 times in 2018, due to operational performance improvements[31] Investment and Asset Management - The value of the investment property portfolio was appraised at HKD 79,568 million as of June 30, 2019, compared to HKD 77,442 million at the end of 2018[24] - Total capital expenditure for the period was HKD 663 million, down from HKD 943 million in 2018[27] - The fair value change of investment properties contributed HKD 1,453 million to the total profit for the period[54] Corporate Governance and Compliance - The company adhered to the Corporate Governance Code and maintained compliance with the Hong Kong Stock Exchange's listing rules[91] - The Audit and Risk Management Committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2019[93] Employee and Director Compensation - The company’s employee costs, including directors' remuneration, rose to HKD 138 million in 2019 from HKD 127 million in 2018, an increase of 8.66%[62] - The fixed annual salary for the executive director Li Yunlian is set at HKD 8,000,000 for 2019, with a bonus of HKD 14,616,000 for 2018[99] - The company’s remuneration policy aims to attract and retain talent while aligning compensation with shareholder interests[97] Future Plans and Developments - The company aims to transform the Lee Garden area into a world-class "smart community" through innovative business technologies[9] - The group is actively pursuing a high-density residential development project in Tai Po, with major statutory applications approved and groundwork underway[18]