希慎兴业(00014) - 2020 - 中期财报

Financial Performance - Revenue decreased by 5.0% to HKD 1,981 million, and recurring basic profit fell by 3.4% to HKD 1,346 million for the six months ended June 30, 2020[5]. - The group recorded a reported loss of HKD 2,626 million for the first half of 2020, compared to a profit of HKD 2,783 million in the same period last year[14]. - The fair value loss of investment properties was HKD 4,065 million, compared to a fair value gain of HKD 1,453 million in 2019[14]. - The group experienced a loss before tax of HKD 2,422 million for the six months ended June 30, 2020, compared to a profit of HKD 3,257 million in the same period of 2019[39]. - The company reported a total comprehensive loss of HKD 2,694 million for the six months ended June 30, 2020, compared to a profit of HKD 3,019 million for the same period in 2019[45]. - The company reported a loss attributable to shareholders of HKD 2,626 million for the six months ended June 30, 2020, compared to a profit of HKD 2,783 million in 2019[69]. Revenue Breakdown - For the six months ended June 30, 2020, the total revenue from the retail segment was HKD 900 million, while the office segment generated HKD 927 million, and the residential segment brought in HKD 154 million, leading to a combined revenue of HKD 1,981 million[59]. - The total segment profit for the retail segment was HKD 794 million, for the office segment was HKD 840 million, and for the residential segment was HKD 128 million, resulting in a total segment profit of HKD 1,762 million[59]. Economic Outlook - The economic outlook for Hong Kong in the second half of 2020 remains uncertain due to COVID-19 and other global and local political and economic factors[5]. - Retail sales in Hong Kong dropped over 33% year-on-year in the first half of 2020, with jewelry and luxury goods sales declining by more than 65%[8]. Occupancy and Property Management - The occupancy rates for office and retail properties were 96% and 94% respectively[5]. - The company continues to focus on improving health and safety standards in its properties, becoming one of the first owners in Hong Kong to enhance hygiene and safety specifications[11]. - The company plans to continue expanding its property management services in Hong Kong, aligning with its core business strategy[57]. Financial Position - Shareholders' equity decreased by 5.1% to HKD 73,696 million, and the net asset value per share fell by 5.0% to HKD 70.7[6]. - The value of the investment property portfolio was HKD 75,630 million as of June 30, 2020, a decrease of 4.4% from HKD 79,116 million on December 31, 2019[25]. - The company’s net assets amounted to HKD 83,529 million as of June 30, 2020, up from HKD 80,972 million at the end of 2019, indicating a growth of 3.2%[42]. - The company’s net current assets increased to HKD 19,417 million as of June 30, 2020, compared to HKD 7,195 million as of December 31, 2019, indicating improved liquidity[41]. Debt and Financial Management - Total outstanding debt rose to HKD 19,458 million as of June 30, 2020, from HKD 12,615 million at the end of 2019[30]. - The debt-to-equity ratio improved to a cash net position by mid-2020, with a net interest coverage ratio maintained at 17.0 times[32]. - The proportion of fixed-rate debt increased to 89% of total debt as of June 30, 2020, up from 84% at the end of 2019, indicating a stronger position in managing borrowing costs[34]. - The company has access to committed credit facilities totaling HKD 4,700 million as of June 30, 2020, up from HKD 3,250 million as of December 31, 2019, enhancing its liquidity position[33]. Dividends and Shareholder Returns - The group announced an interim dividend of HKD 0.27 per share, consistent with the previous year[15]. - The company declared dividends of HKD 1,221 million during the period, which is a decrease from HKD 1,286 million in the previous period[45]. - The company declared an interim dividend of HKD 0.27 per share for 2020, totaling HKD 281 million, compared to HKD 283 million for the same period in 2019[72]. Strategic Initiatives - The company has implemented various flexible relief measures for tenants, including rent reductions and marketing support, to help them navigate short-term financial and operational challenges[11]. - The "Power Up" campaign was launched in May 2020, integrating technology and marketing expertise to create a comprehensive digital platform for customer engagement[11]. - The company plans to enhance its business resilience through the expansion of flexible workspaces and the introduction of high-end retail concepts[11]. - The company plans to continue exploring market expansion opportunities and new product development strategies in the upcoming quarters[42]. Risk Management and Governance - The board established a Sustainability Committee on January 1, 2020, to oversee environmental, social, and governance issues, supported by a management execution committee and working groups[97]. - The Audit and Risk Management Committee held two meetings during the period, focusing on the annual financial report and risk management related to the COVID-19 pandemic[97]. - The company actively engaged in discussions regarding the impacts of the global pandemic on its operations and risk management strategies[97]. Employee and Shareholder Information - As of June 30, 2020, the total number of employees in the group was 506[127]. - Major shareholders included Lee Hysan Company Limited with 433,130,735 shares (41.57% of total issued shares), Silchester International Investors LLP with 83,647,000 shares (8.03%), and First Eagle Investment Management, LLC with 52,460,214 shares (5.04%) as of June 30, 2020[124].