希慎兴业(00014) - 2021 - 中期财报

Financial Performance - The group's revenue and recurring basic profit decreased by 7.4% and 12.6% year-on-year, respectively, with revenue at HKD 1,834 million and recurring profit at HKD 1,177 million[4]. - The group's revenue for the first half of 2021 was HKD 1,834 million, a decrease of 7.4% compared to HKD 1,981 million in the same period of 2020[12]. - The recurring basic profit decreased by 12.6% to HKD 1,177 million, down from HKD 1,346 million in 2020[13]. - The office business revenue decreased by 5.1% to HKD 880 million, while the retail business revenue fell by 8.9% to HKD 820 million[15][16]. - The residential business revenue decreased by 13.0% to HKD 134 million, with an occupancy rate of 73%[18]. - The company reported a profit before tax of HKD 943 million, a significant recovery from a loss of HKD 2,422 million in the previous year[38]. - Net profit for the period was HKD 781 million, compared to a loss of HKD 2,658 million in the same period last year[39]. - Earnings per share for the period was HKD 0.50, a turnaround from a loss per share of HKD 2.52 in the previous year[38]. - The company reported a total comprehensive income of HKD 945 million for the period, compared to a loss of HKD 2,694 million in the previous year[39]. Occupancy and Demand - The office and retail business occupancy rates were 95% and 97%, respectively, indicating strong demand despite ongoing challenges[4]. - The occupancy rates for the office and retail segments were 93% and 97% respectively as of June 30, 2021[12]. - The retail sector in Hong Kong continued to be impacted by COVID-19, but the Lee Gardens area saw better sales growth compared to the overall market, supported by a loyal customer base[8]. Investments and Acquisitions - The company successfully acquired a commercial site on Gough Hill Road, which will enhance its property portfolio and community vision in the Lee Gardens area[8]. - The company plans to develop a commercial building in Causeway Bay, which is expected to enhance its asset portfolio and strengthen its market position[19]. - Total capital expenditure cash outflow increased significantly to HKD 20,077 million from HKD 619 million in 2020, mainly due to successful land acquisition[27]. - The company successfully acquired commercial land in Causeway Bay for HKD 19,778 million, classified as investment property[64]. Financial Position - Shareholders' equity stood at HKD 73,146 million, with a slight decrease in net asset value per share to HKD 70.3[5]. - Total assets decreased to HKD 104,658 million from HKD 84,353 million, indicating an increase of 24%[40]. - The company’s total liabilities increased to HKD 27,592 million from HKD 20,754 million, reflecting a rise of 33.4%[41]. - The debt-to-equity ratio at the end of the first half of 2021 was 8.2%, compared to net cash at the end of 2020[31]. - Total debt decreased to HKD 18,404 million from HKD 19,204 million at the end of 2020, following early repayment of HKD 800 million in bank loans[28]. Cash Flow and Dividends - The net cash inflow from operating activities for the six months ended June 30, 2021, was HKD 1,283 million, compared to HKD 958 million for the same period in 2020, representing a 33.8% increase[45]. - The company declared an interim dividend of HKD 1,216 million for the second interim dividend of 2020, compared to HKD 1,221 million for the same period in 2019[62]. - The company announced an interim dividend of HKD 0.27 per share, unchanged from the previous year[14]. Strategic Initiatives - A joint venture with IWG plc was established to expand the shared workspace business in the Greater Bay Area, reflecting the evolving office space needs post-pandemic[10]. - The company is preparing to launch an online interactive community and smart office renovations to improve efficiency and connectivity[20]. - The company aims to explore opportunities in the Greater Bay Area and leverage new economic trends for future growth[11]. - The company is committed to community recovery efforts, including vaccination promotion and support for vulnerable groups[9]. Financial Management - The net interest coverage ratio was 6.5 times, down from 17.0 times in 2020, indicating a decline in financial stability[13]. - Financial expenses increased to HKD 275 million from HKD 234 million in the first half of 2020, primarily due to preparations for potential investment opportunities[23]. - Operating expenses as a percentage of revenue remained relatively stable at 18.5%, compared to 17.2% in 2020[22]. Shareholder Information - The company issued 1 million shares under the share option plan during the first half of 2021, compared to 2 million shares issued in the same period of 2020[42]. - The company has a total of 467 employees as of June 30, 2021, with no significant changes in human resources, training, and development programs compared to the 2020 sustainability report[124]. - The company has been authorized to repurchase up to 10% of its issued shares as of the date of the resolution[122]. Compliance and Governance - The company adopted a tax governance policy in January 2021, outlining its tax strategy and policies[91]. - A risk appetite statement was adopted in June 2021, defining the risk levels the company aims to avoid[91]. - The Audit and Risk Management Committee held two meetings during the period, focusing on financial reporting and risk management issues[91]. - The company confirmed compliance with the standard code of conduct for securities trading by all directors during the six-month period[90].