恒隆地产(00101) - 2021 - 中期财报

Financial Performance - For the six months ended June 30, 2021, the company reported a revenue increase of 19% to HKD 4.975 billion, with a net profit attributable to shareholders of HKD 2.235 billion, compared to a net loss of HKD 2.537 billion in 2020[5]. - The basic net profit attributable to shareholders, excluding property revaluation gains, rose by 11% to HKD 2.2 billion, with earnings per share increasing to HKD 0.49[5]. - Total revenue for the first half of 2021 increased by 19% to HKD 4.975 billion, with rental income being the sole contributor as there were no property sales recorded[31]. - Operating profit rose by 19% to HKD 3.630 billion, with a notable increase in mainland China contributing to a 45% rise in rental income to HKD 3.295 billion[32]. - The company reported a total comprehensive income of HKD 3,994 million for the period, compared to a loss of HKD 4,215 million in 2020[100]. - The net profit for the same period was HKD 2,771 million, compared to a loss of HKD 2,343 million in 2020, marking a significant turnaround[100]. Rental Income and Property Performance - Overall rental income from mainland properties increased by 33% year-on-year, with shopping mall rents rising by 38% and office rents by 12%[25]. - The overall rental income from mainland China showed a strong growth of 45%, with shopping mall revenue increasing by 38%[35]. - High-end shopping mall rents surged by 46%, indicating a strong recovery driven by high-end consumption[25]. - The performance of high-end shopping malls outpaced that of mid-tier malls, reflecting the uneven impact of the pandemic across different social strata[28]. - The occupancy rate of the two office buildings in Wuxi Hang Lung Plaza is 84%, with the older building at 90% and the newer one at 74%[8]. - The newly opened Wuhan Hang Lung Plaza generated RMB 43 million in revenue within three months, achieving a rental rate of 71%[40]. Strategic Developments - The Wuhan Hang Lung Plaza, a 460,000 square meter high-end integrated project, opened on March 25, 2021, featuring a shopping mall of 177,000 square meters and 130,000 square meters of serviced apartments expected to be available for sale in the first half of 2022[7]. - The company is planning to sell all serviced apartments outside of Shanghai, indicating a strategic shift in its mainland property portfolio[14]. - The company is preparing to develop five to six luxury standalone houses, each featuring private gardens and swimming pools, with expectations that the final product will be more luxurious than any previous projects[13]. - The company is actively seeking new land acquisitions in cities where it has established operations and in metropolitan areas without a presence[23]. - The construction of Hang Lung Plaza in Hangzhou is on schedule, with discussions ongoing with top luxury brands for store layouts and leases[10]. Market Conditions and Challenges - The company anticipates challenges from external factors, including the ongoing COVID-19 pandemic and deteriorating US-China relations[17]. - The company has faced challenges in the Hong Kong rental market, but there are indications of stabilization in the office sector[13]. - There are signs that the most challenging times for retail space in Hong Kong have passed, although recovery may be slow[13]. - The current political environment has hindered land sales, resulting in Hong Kong having some of the most expensive housing globally[20]. - The introduction of the National Security Law and new electoral systems is expected to stabilize the political landscape, potentially increasing land supply and reducing prices in the coming years[20]. Sustainability and Corporate Governance - The company emphasizes its commitment to sustainable development and technology as part of its new vision and mission[12]. - The company is focused on sustainable finance, planning to increase its proportion of sustainable finance within its debt portfolio[58]. - The company has made substantial progress towards its 2030 sustainability goals, including specific key performance indicators and greenhouse gas reduction plans[28]. - The company has adopted corporate governance standards emphasizing a competent board and effective risk management to enhance transparency and accountability[74]. - The audit committee consists of one independent non-executive director as chairman and four independent non-executive directors as members, meeting at least four times a year to discuss internal audit work and assess internal controls[77]. Shareholder Information - The company declared an interim dividend of HKD 0.18 per share, up from HKD 0.17 in the previous year[33]. - As of June 30, 2021, Chen Wenbo holds 2,644,956,340 shares, representing 58.79% of the issued shares, while Chen Kaizong holds 17,155,000 shares, representing 0.38%[81]. - The company has a stock option plan adopted on November 22, 2002, with options granted to directors, including 4,500,000 options for Chen Kaizong and Chen Nanlu[83]. - The company has confirmed compliance with the standards for directors' securities transactions during the six months ending June 30, 2021[79]. Employee and Operational Insights - As of June 30, 2021, the total number of employees was 4,219, with 1,060 in Hong Kong and 3,159 in mainland China[94]. - Total employee expenses for the six months ended June 30, 2021, amounted to HKD 883 million[94]. - The company has a stock option plan and provides competitive compensation packages to employees[94]. - Over 97% of employees in Hong Kong and mainland China participated in the first employee engagement survey, indicating strong internal communication[28].