太古地产(01972) - 2025 - 中期业绩

Financial Summary Swire Properties reported a financial summary for the first half of 2025, with revenue increasing by 20% year-on-year, underlying profit growing by 15%, but recurring underlying profit decreasing by 4%. Dividend per share increased by 3%, and the net debt-to-capital ratio remained stable Key Financial Data for H1 2025 | Metric | 2025 (HKD million) | 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 8,723 | 7,279 | +20% | | Profit Attributable to Company Shareholders (Underlying) | 4,420 | 3,857 | +15% | | Profit Attributable to Company Shareholders (Recurring Underlying) | 3,420 | 3,570 | -4% | | Reported (Loss)/Profit | (1,202) | 1,796 | N/A | | Cash from Operations | 6,103 | 3,701 | +65% | | Net Cash Inflow Before Financing | 6,683 | 1,284 | +420% | | Earnings Per Share (Underlying) | 0.76 | 0.66 | +15% | | Earnings Per Share (Recurring Underlying) | 0.59 | 0.61 | -3% | | Dividend Per Share (First Interim) | 0.35 | 0.34 | +3% | | Total Equity (Period End) | 272,547 | 278,427 | -2% | | Net Debt (Period End) | 42,853 | 43,746 | -2% | | Net Debt-to-Capital Ratio (Period End) | 15.7% | 15.7% | 0 percentage points | | Equity Per Share Attributable to Company Shareholders (Period End) | 47.01 | 47.35 | -1% | Underlying Profit/(Loss) by Segment | Segment | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Property Investment | 3,747 | 3,693 | | Property Trading | (282) | (61) | | Hotels | (45) | (62) | | Recurring Underlying Profit | 3,420 | 3,570 | | Disposal of Assets | 1,000 | 287 | | Underlying Profit | 4,420 | 3,857 | Chairman's Statement Despite global economic uncertainties, Swire Properties demonstrated strong performance through its quality property portfolio and community-building strategy, continuing its HKD 100 billion investment plan and strengthening financial resilience through capital recycling to high-growth core markets, while committing to progressive dividend growth and achieving 2030 sustainability targets ahead of schedule Financial Performance Summary Underlying profit increased by 15% to HKD 4.42 billion in H1 2025, driven by the disposal of interests in Brickell City Centre, while recurring underlying profit decreased by 4% due to lower Hong Kong office rental income and increased residential sales promotion expenses, resulting in a reported loss of HKD 1.202 billion primarily from investment property fair value losses - H1 2025 underlying profit increased by 15% to HKD 4.42 billion, primarily due to the disposal of interests in Brickell City Centre mall, car parks, and adjacent land[8] - Recurring underlying profit attributable to shareholders decreased by 4%, from HKD 3.57 billion in H1 2024 to HKD 3.42 billion in H1 2025, mainly due to lower Hong Kong office rental income and increased sales promotion expenses for residential trading projects[8] - H1 2025 recorded a reported loss attributable to shareholders of HKD 1.202 billion, compared to a profit of HKD 1.796 billion in the same period of 2024, primarily due to fair value losses on investment properties of HKD 4.68 billion (HKD 879 million in H1 2024)[8] Progressive Dividend Growth and Share Buyback The company declared a first interim dividend of HKD 0.35 per share for 2025, a 3% year-on-year increase, aiming for mid-single-digit annual dividend growth and distributing approximately half of its underlying profit as ordinary dividends, having completed HKD 707 million of its HKD 1.5 billion share buyback program - The first interim dividend for 2025 is HKD 0.35 per share, a 3% increase compared to 2024[9] - The company aims for mid-single-digit annual dividend growth and plans to distribute approximately half of its underlying profit as ordinary dividends in the future[9] - As of the Annual General Meeting in May 2025, the company had repurchased 44,736,600 shares for a cash consideration of HKD 707 million, at an average price of HKD 15.8 per share[9] Driving Business Growth in Key Markets The company is steadfastly executing its investment strategy, focusing on Hong Kong, mainland China, and Southeast Asia, expanding in mainland China with new projects in Shanghai, Beijing, Sanya, Xi'an, and the Greater Bay Area, maintaining solid performance in Hong Kong's office and retail sectors with an improving residential market, and making steady progress in Southeast Asia with projects in Bangkok and Jakarta - The company continues to advance its HKD 100 billion investment plan, with 67% of funds already committed, focusing on expanding in Hong Kong, mainland China, and Southeast Asia[7] - In mainland China, the company is expanding its business through Shanghai Taikoo Li Lujiazui and the Qianhai Taikoo Li expansion project, and developing new projects in Beijing, Sanya, Xi'an, and the Greater Bay Area, demonstrating confidence in mainland China's long-term prospects[10][11] - Hong Kong's office property portfolio shows solid performance, retail business is encouraging, and the residential market sentiment is improving, with the company well-prepared to capture market demand[11][12] - In Southeast Asia, construction has begun on a prime luxury residential project in Bangkok, and Savyavasa sales in Jakarta are steady, reflecting successful business expansion strategies in the region[12] Looking Ahead Looking ahead to H2 2025 and beyond, the company will remain agile and prudent, focusing on strategy execution, confident in its quality property portfolio, professional team, and clear long-term vision despite anticipated external challenges - The company will continue to remain agile and prudent, focusing on executing its established strategies, confident in its quality property portfolio, professional team, and clear long-term vision[13] Chief Executive's Report Despite a challenging operating environment, Swire Properties continues to demonstrate solid performance through its focus on quality, innovation, and long-term planning, steadily advancing its HKD 100 billion investment plan and strengthening its property portfolio through asset disposals, while making significant progress in sustainability, innovation, and community engagement Performance Review In H1 2025, recurring underlying pre-tax profit from investment properties decreased due to lower Hong Kong office rental income, though occupancy remained stable. Hong Kong retail softened, but mall occupancy and footfall remained high. Mainland China retail sales stabilized with increased footfall. Residential presales were strong for Shanghai Taikoo Li Lujiazui and Jakarta Savyavasa. Hotel recovery was slow, but EAST Miami performed well - In H1 2025, recurring underlying pre-tax profit from investment properties decreased, mainly due to lower Hong Kong office rental income, but the office property portfolio occupancy rate remained stable[16] - Hong Kong's retail market softened, but Swire Properties' malls maintained high occupancy rates and footfall, benefiting from tenant mix optimization and marketing activities[16] - Mainland China's retail sales stabilized, with overall footfall continuing to increase, and both batches of presale units for Shanghai Taikoo Li Lujiazui Residences received excellent responses[17] - In Southeast Asia, Savyavasa in Jakarta has presold over 40% of its saleable area, reflecting strong demand for high-end residential properties in the region[18] Asset Disposals to Strengthen Property Portfolio The company successfully implemented its capital recycling strategy, completing the disposal of its interests in Brickell City Centre mall, car parks, and adjacent vacant land in Miami for approximately USD 760 million in Q2 2025, with proceeds reinvested into the HKD 100 billion investment plan to support growth opportunities in core markets, including the planned Mandarin Oriental Residences Miami project - In Q2 2025, the company completed the disposal of its interests in Brickell City Centre mall, car parks, and adjacent vacant land in Miami for approximately USD 760 million[19] - Proceeds from the disposal will be reinvested into the HKD 100 billion investment plan to support growth opportunities in core markets, including the development of residential trading projects such as the Mandarin Oriental Residences Miami[19] Future Outlook The company will continue to advance its HKD 100 billion investment plan, anticipating sustained weakness in Hong Kong office demand but benefiting from the flight-to-quality trend, cautious Hong Kong retail sentiment with stable mall footfall, solid mainland China retail sales driven by luxury and rising demand for quality retail space, an improving Hong Kong residential market in the medium to long term, strong demand for prime residential in mainland China's tier-one cities, and robust luxury residential markets in Southeast Asia and Miami, with hotel management expanding into Asia Pacific - Hong Kong office demand is expected to remain soft, but Pacific Place and Taikoo Place, with their integrated development advantages, are well-positioned to attract tenants seeking high-specification, sustainably certified premium office space[20] - Mainland China's retail sales performance is solid, with luxury retail being a key growth driver and an increasing demand for quality retail space, particularly for fashion, lifestyle, leisure, and sports brands[21] - Hong Kong's residential trading portfolio is expected to benefit from improved market sentiment and favorable policies, with several new residential developments attracting attention, and residential prices and demand improving in the medium to long term[22] - Urbanization, a growing middle class, and limited supply continue to support demand for luxury residential properties in Southeast Asia, with markets like Jakarta, Ho Chi Minh City, and Bangkok expected to become more vibrant[23] - The company's hotel portfolio is expanding, with five new projects confirmed for development under third-party management contracts in Tokyo, Beijing, Shenzhen, Shanghai, and Xi'an[23] Sustainability, Innovation, and Community Engagement The company achieved its 2030 sustainability goals ahead of schedule and is now developing its 2050 vision, focusing on community building, innovation, and strategic partnerships, actively expanding its corporate volunteer team, raising over HKD 1.37 million through its annual "Books for Love" charity sale, and advancing digital transformation through its Innovation Accelerator program and generative AI projects - The company achieved its 2030 sustainability goals ahead of schedule and is now developing its 2050 sustainability vision, focusing on community building, innovation, and strategic partnerships[25] - The annual "Books for Love" charity sale mobilized over 7,000 volunteers and raised over HKD 1.37 million to support local charitable initiatives[26] - The company actively trains its teams through the Innovation Accelerator program and digital training courses, and has launched multiple generative AI projects to accelerate digital transformation[27] Future Outlook Despite a challenging H1 2025, the company's team delivered solid business performance in core markets, successfully advanced its HKD 100 billion investment plan, and strengthened its community building and sustainability vision, remaining confident in future opportunities and committed to creating long-term value for stakeholders - The company's team delivered solid business performance in core markets amidst a challenging environment, successfully advancing key projects under the HKD 100 billion investment plan[28] - Looking ahead to H2 2025, the company is confident in its quality property portfolio and its ability to realize future opportunities, continuing to create long-term value for stakeholders[28] Business Review This chapter provides a detailed review of Swire Properties' business segments, including property investment, property trading, and hotels, covering portfolio overviews, market outlooks, capital commitments, and key business developments in Hong Kong, mainland China, and the US, along with detailed financial reconciliation and property valuation information Reconciliation of Underlying Profit This section reconciles reported (loss)/profit attributable to company shareholders with underlying profit, with key adjustments including fair value changes of investment properties, related deferred tax, and realized fair value gains on disposal of investment property interests. In H1 2025, the Group recorded fair value losses of HKD 4.382 billion and HKD 308 million for investment properties in Hong Kong and mainland China, respectively Reconciliation of Underlying Profit (Six Months Ended June 30) | Metric | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Reported (Loss)/Profit Attributable to Company Shareholders | (1,202) | 1,796 | | Fair Value Loss on Investment Properties | 4,690 | 831 | | Deferred Tax on Investment Properties | (44) | 660 | | Realized Fair Value Gain on Disposal of Investment Property Interests | 1,001 | 527 | | Underlying Profit Attributable to Company Shareholders | 4,420 | 3,857 | | Recurring Underlying Profit Attributable to Company Shareholders | 3,420 | 3,570 | - In H1 2025, the Group recorded fair value losses of HKD 4.382 billion and HKD 308 million for investment properties in Hong Kong and mainland China, respectively[32] Underlying Profit In H1 2025, underlying profit attributable to company shareholders increased by HKD 563 million to HKD 4.42 billion, primarily driven by profit from the disposal of interests in Brickell City Centre mall in the US, partially offset by reduced Hong Kong office rental income and increased sales promotion expenses for residential trading projects. Recurring underlying profit was HKD 3.42 billion, lower than the same period last year Change in Underlying Profit (HKD million) | Change Item | Amount | | :--- | :--- | | H1 2024 Underlying Profit | 3,857 | | Increase in Profit from Asset Disposals | 713 | | Increase in Profit from Property Investment | 54 | | Increase in Loss from Property Trading | (221) | | Decrease in Loss from Hotels | 17 | | H1 2025 Underlying Profit | 4,420 | - In H1 2025, underlying profit attributable to shareholders increased by HKD 563 million to HKD 4.42 billion, primarily reflecting profit generated from the disposal of interests in Brickell City Centre mall in the US[37] - Recurring underlying profit (excluding profit from asset disposals) was HKD 3.42 billion, a decrease from HKD 3.57 billion in H1 2024, mainly due to reduced Hong Kong office rental income[37][38] - The underlying loss from property trading primarily stemmed from increased sales and marketing expenses for several residential trading projects, particularly those planned for launch in Hong Kong and the US in the coming years[39] HKD 100 Billion Investment Plan The company plans to invest HKD 100 billion over the next decade, with HKD 30 billion allocated to Hong Kong, HKD 50 billion to mainland China, and HKD 20 billion to residential trading projects (including Southeast Asia). As of August 1, 2025, total committed investments are approximately HKD 67 billion, focusing on residential, retail, and office developments in Hong Kong, mainland China, and Southeast Asia - The company plans to invest HKD 100 billion over the next decade, targeting HKD 30 billion in Hong Kong, HKD 50 billion in mainland China, and HKD 20 billion in residential trading projects (including Southeast Asia)[41] - As of August 1, 2025, the total committed investment plan is approximately HKD 67 billion (HKD 11 billion in Hong Kong, HKD 46 billion in mainland China, and HKD 10 billion in residential property trading projects)[41] - Key projects include residential developments such as Hyde Park and 269 Queen's Road East in Hong Kong; and retail and mixed-use developments in mainland China such as Taikoo Li Xi'an, Sanya retail project, Shanghai Taikoo Li Lujiazui, and the Qianhai mixed-use development[41] Key Business Developments This section outlines the company's major property acquisition and disposal activities in H1 2025, including increasing its interest in Brickell City Centre mall in Miami to 75%, followed by the completion of the sale of that 75% interest and adjacent land. Additionally, the second batch of units at Shanghai Taikoo Li Lujiazui Residences saw strong presales, and the company acquired a 25% interest in the Mandarin Oriental Miami joint venture, increasing its stake to 100% - In April 2025, the Group acquired a 12.07% interest in Brickell City Centre mall in Miami for USD 73.5 million, increasing its stake to 75%[42] - In June 2025, the Group completed the disposal of its 75% interest in Brickell City Centre mall and car parks to Simon Property Group for a total consideration of up to USD 548.7 million[43] - 55 out of 57 units in the second batch of presales for Shanghai Taikoo Li Lujiazui Residences were presold, with total presale revenue from both batches reaching RMB 5.93 billion[42] - In June 2025, the Group acquired a 25% interest in the Mandarin Oriental Miami joint venture for USD 37 million, increasing its stake to 100%, with the hotel having closed in May for redevelopment[44] Property Portfolio Overview As of June 30, 2025, the Group's attributable total floor area was approximately 39 million sq ft, with investment properties and hotels accounting for approximately 33.4 million sq ft (23.8 million sq ft completed, 9.6 million sq ft under development). The Hong Kong investment property and hotel portfolio was approximately 14.5 million sq ft, and mainland China approximately 18.9 million sq ft (10.4 million sq ft completed). The trading property portfolio includes completed units in Hong Kong and 8 residential projects under development, with plans for luxury residential and hotel projects in Miami - As of June 30, 2025, the Group's attributable total floor area was approximately 39 million sq ft[46] - The total floor area for investment properties and hotels was approximately 33.4 million sq ft, of which approximately 23.8 million sq ft was completed, and approximately 9.6 million sq ft was under development or held for future development[47] Completed Investment Properties and Hotels (Attributable Total Floor Area, in million sq ft) | | Office | Retail Properties | Hotels | Residential/Serviced Apartments | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 9.4 | 2.6 | 0.8 | 0.6 | 13.4 | | Mainland China | 2.9 | 6.2 | 1.1 | 0.2 | 10.4 | | Total | 12.3 | 8.8 | 1.9 | 0.8 | 23.8 | Investment Properties and Hotels Under Development or Held for Future Development (Estimated Attributable Total Floor Area, in million sq ft) | | Office | Retail Properties | Hotels | Residential/Serviced Apartments | Planned | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hong Kong | - | - | - | - | 1.1 | 1.1 | | Mainland China | 2.2 | 3.5 | 0.2 | 0.1 | 2.5 | 8.5 | | Total | 2.2 | 3.5 | 0.2 | 0.1 | 3.6 | 9.6 | Trading Properties (Attributable Total Floor Area, in million sq ft) | | Completed | Under Development or Held for Development | Total | | :--- | :--- | :--- | :--- | | Hong Kong | 0.1 | 1.0 | 1.1 | | Mainland China | - | 1.0 | 1.0 | | US and Other Regions | - | 3.5 | 3.5 | | Total | 0.1 | 5.5 | 5.6 | Investment Properties — Hong Kong The Hong Kong investment property portfolio includes office, retail, and residential properties. Office rental income decreased by 5% with an occupancy rate of 88%. Retail property rental income decreased by 2%, but mall occupancy was nearly 100%. Residential property occupancy was approximately 73%. Several investment property projects under development are progressing, including the redevelopment of Wah Ha Factory Building and Warwick House, and the phased disposal of office floors at One Island East Office Hong Kong's completed office property portfolio has a total floor area of approximately 10 million sq ft, with attributable rental income totaling HKD 2.6 billion in H1 2025, a 5% decrease from the same period last year. Despite high market vacancy rates and pressure from new supply, the office portfolio's occupancy rate remained largely stable at 88% - Hong Kong's completed office property portfolio has a total floor area of approximately 10 million sq ft, with attributable rental income totaling HKD 2.6 billion in H1 2025[55] - The total rental income for the Hong Kong office property portfolio in H1 2025 was HKD 2.455 billion, a 5% decrease from the same period in 2024[57] - As of June 30, 2025, the office property portfolio's occupancy rate was 88%. Excluding Two Taikoo Place and Six Pacific Place, the occupancy rate for the remaining office property portfolio was 91%[57] Hong Kong Office Lease Expiry Profile (as at June 30, 2025) | Period | Percentage of Attributable Gross Rental Income | | :--- | :--- | | July to December 2025 | 3.6% | | 2026 | 11.9% | | 2027 and Thereafter | 84.5% | Retail Hong Kong's completed retail property portfolio has a total floor area of approximately 3.2 million sq ft, with attributable gross rental income decreasing by 2% to HKD 1.263 billion in H1 2025. Despite economic uncertainty and changing consumer habits, mall occupancy remained close to 100%. Retail sales at Pacific Place Shopping Mall and Cityplaza increased by 1% and 2% respectively, while Citygate Outlets decreased by 3% - Hong Kong's completed retail property portfolio has a total floor area of approximately 3.2 million sq ft, with attributable gross rental income decreasing by 2% to HKD 1.263 billion in H1 2025[63] - In H1 2025, retail sales at Pacific Place Shopping Mall and Cityplaza increased by 1% and 2%, respectively, while Citygate Outlets decreased by 3%[65] - During the period, the malls were almost fully leased, with occupancy rates close to 100%[66] Hong Kong Retail Lease Expiry Profile (as at June 30, 2025) | Period | Percentage of Attributable Gross Rental Income | | :--- | :--- | | July to December 2025 | 8.5% | | 2026 | 27.8% | | 2027 and Thereafter | 63.7% | Residential Properties Hong Kong's completed residential property portfolio has a total floor area of approximately 600,000 sq ft, including The Upper House and EAST Residences. As of June 30, 2025, the residential property portfolio's occupancy rate was approximately 73%, with stable demand driven by local residents and interest from mainland China and overseas markets - Hong Kong's completed residential property portfolio has a total floor area of approximately 600,000 sq ft, with an occupancy rate of approximately 73% as of June 30, 2025[71] - Demand for the Group's residential investment properties remains stable, primarily driven by increasing interest from local residents and individuals from mainland China and overseas markets[71] Investment Properties Under Development Several Hong Kong investment property projects under development are progressing, including the redevelopment of Wah Ha Factory Building (8 Shipyard Lane) and Warwick House (1067 King's Road), which are expected to provide approximately 779,000 sq ft of office and other commercial uses. Additionally, the phased disposal of certain office floors at One Island East is underway, anticipated to be completed between 2025 and 2028 - Wah Ha Factory Building and Warwick House are planned for redevelopment into office and other commercial uses, with a total floor area of approximately 779,000 sq ft[72] - The disposal of 12 office floors (approximately 300,000 sq ft) at One Island East is being conducted in phases, with the sale of the 43rd floor expected to be completed by December 31, 2025[74] Investment Properties — Mainland China The mainland China property portfolio has a total floor area of approximately 30.2 million sq ft, with the Group's attributable share being 18.9 million sq ft. In H1 2025, attributable gross rental income was HKD 3.073 billion, similar to the previous year. Retail property rental income slightly increased, with sales outperforming the market. Office rental income decreased by 3% due to weak market demand. Serviced apartment performance varied, expected to remain stable in H2. Several large-scale mixed-use developments are progressing Overview The mainland China property portfolio has a total floor area of approximately 30.2 million sq ft, with the Group's attributable interest being 18.9 million sq ft (14 million sq ft completed, 16.2 million sq ft under development). In H1 2025, attributable gross rental income was HKD 3.073 billion, similar to the same period last year. As of June 30, 2025, the valuation of mainland China investment properties was HKD 129.686 billion - The mainland China property portfolio has a total floor area of approximately 30.2 million sq ft, with the Group's attributable interest being 18.9 million sq ft, of which 14 million sq ft is completed and 16.2 million sq ft is under development[75] - In H1 2025, attributable gross rental income from mainland China investment properties was HKD 3.073 billion, similar to H1 2024[75] - As of June 30, 2025, the valuation of mainland China investment properties was HKD 129.686 billion, with the Group's attributable interest being HKD 92.517 billion[75] Retail Mainland China's completed retail property portfolio has a total floor area of approximately 7.8 million sq ft, with attributable gross rental income slightly increasing in H1 2025. Despite some malls being affected by upgrade works, retail sales remained stable and robust, with overall footfall continuing to increase, benefiting from government stimulus measures and recovering consumer confidence. The Group's attributable retail sales in mainland China increased by 1%, outperforming the market - Mainland China's completed retail property portfolio has a total floor area of approximately 7.8 million sq ft, with attributable gross rental income slightly increasing in H1 2025[79] - In H1 2025, the Group's attributable retail sales in mainland China (excluding auto retailers) increased by 1%, outperforming the market and 70% higher than the same period in 2019[81] - Retail sales at Taikoo Li Sanlitun Beijing, HKRI Taikoo Hui Shanghai, and Taikoo Li Qianhai increased by 7%, 14%, and 4%, respectively[81] Mainland China Retail Lease Expiry Profile (as at June 30, 2025) | Period | Percentage of Attributable Gross Rental Income | | :--- | :--- | | July to December 2025 | 15.3% | | 2026 | 30.1% | | 2027 and Thereafter | 54.6% | Office Mainland China's completed office property portfolio has a total floor area of approximately 4.2 million sq ft, with attributable gross rental income decreasing by 3% to HKD 412 million in H1 2025. Office demand in Beijing, Shanghai, and Guangzhou remained weak, with new supply in Guangzhou and Shanghai leading to high vacancy rates. The Group's office portfolio, however, effectively capitalized on the trend of tenants seeking quality office space - Mainland China's completed office property portfolio has a total floor area of approximately 4.2 million sq ft, with attributable gross rental income decreasing by 3% to HKD 412 million in H1 2025[91] - Office demand in Beijing, Shanghai, and Guangzhou remained weak, with new supply in Guangzhou and Shanghai leading to high vacancy rates[92] Mainland China Office Lease Expiry Profile (as at June 30, 2025) | Period | Percentage of Attributable Gross Rental Income | | :--- | :--- | | July to December 2025 | 6.2% | | 2026 | 18.4% | | 2027 and Thereafter | 75.4% | Serviced Apartments Serviced apartment units are available at Mandarin Oriental Guangzhou, The Temple House Chengdu, and The Middle House Shanghai. In H1 2025, serviced apartment performance varied, with occupancy rates of 79%, 43%, and 82% respectively. Performance is expected to remain stable in H2 2025 - Serviced apartment occupancy rates at Mandarin Oriental Guangzhou, The Temple House Chengdu, and The Middle House Shanghai were 79%, 43%, and 82%, respectively[97] - Serviced apartment performance is expected to remain stable in H2 2025[98] Investment Properties Under Development Several large-scale mixed-use developments are progressing in mainland China, including Taikoo Place Beijing (office-led, phased completion from mid-2026), Taikoo Li Xi'an (retail-led, phased completion from 2027), Taikoo Li Sanya (resort-style luxury retail, phased completion from 2026), Shanghai Qianhai mixed-use development (expected completion 2026), Shanghai Taikoo Li Lujiazui (phased completion from 2026, strong residential presales), Guangzhou Julong Bay project (phased completion from H1 2027), and 387 Tianhe Road Guangzhou (Taikoo Hui expansion, renovation completion from 2027) - Taikoo Place Beijing is an office-led mixed-use development with a total floor area of approximately 4 million sq ft, expected to be completed in two phases from mid-2026[99] - Taikoo Li Xi'an is expected to be developed as a retail-led mixed-use development with an estimated total floor area of approximately 2.9 million sq ft, with phased completion from 2027[100] - Shanghai Taikoo Li Lujiazui will be developed into a mixed-use landmark comprising luxury residences, retail, office, and cultural facilities, with phased completion from 2026, and 105 units sold from the first and second batches of residential presales[103] Estimated Attributable Floor Area of Completed Mainland China Property Portfolio (sq ft) | Project | June & December 2025 | December 2026 | December 2027 | Post-2027 | | :--- | :--- | :--- | :--- | :--- | | Taikoo Li Sanlitun Beijing | 1,618,801 | 1,764,059 | 1,764,059 | 1,764,059 | | Taikoo Li Chengdu | 1,654,565 | 1,654,565 | 1,654,565 | 1,654,565 | | Taikoo Hui Guangzhou | 3,668,857 | 3,668,857 | 3,668,857 | 3,668,857 | | INDIGO Beijing | 947,072 | 947,072 | 947,072 | 947,072 | | HKRI Taikoo Hui Shanghai | 1,865,984 | 1,865,984 | 1,865,984 | 1,865,984 | | Taikoo Li Qianhai Shanghai | 594,364 | 594,364 | 594,364 | 594,364 | | Taikoo Place Beijing | - | 1,109,818 | 2,018,509 | 2,018,509 | | Taikoo Li Xi'an | - | - | 1,269,621 | 2,027,283 | | Taikoo Li Sanya | - | 291,832 | 1,147,237 | 1,147,237 | | Shanghai Qianhai Mixed-Use Development | - | 1,177,513 | 1,177,513 | 1,177,513 | | Shanghai Taikoo Li Lujiazui | - | 93,229 | 1,154,581 | 1,154,581 | | Guangzhou Julong Bay Taikoo Li | - | - | 58,928 | 175,873 | | 387 Tianhe Road Guangzhou | - | - | 635,139 | 635,139 | | Guangzhou Hui Fang | 90,847 | 90,847 | 90,847 | 90,847 | | Others | 2,917 | 2,917 | 2,917 | 2,917 | | Total | 10,443,407 | 13,261,057 | 18,050,193 | 18,924,800 | Investment Properties — US This section primarily outlines the development and disposal of the Brickell City Centre project in Miami. The Group increased its interest in the mall to 75% in January 2025, subsequently completing the sale of that 75% interest and adjacent land in June. Prior to the sale, retail sales and gross rental income increased by 4% and 7% respectively compared to the same period last year - In January 2025, the Group increased its interest in Brickell City Centre mall in Miami to 75%[111] - In June 2025, the Group completed the disposal of its 75% interest in the mall, car parks, and certain common facilities for a total consideration of up to USD 548.7 million[112] - Prior to the disposal of the mall at the end of June 2025, retail sales and gross rental income increased by 4% and 7%, respectively, compared to the same period in 2024[112] Investment Property Valuation The Group's investment property portfolio was valued at HKD 269.418 billion as of June 30, 2025, a decrease from HKD 271.502 billion as of December 31, 2024. This decline primarily reflects fair value losses on Hong Kong office investment properties, disposals of investment properties, and transfers to assets held for sale, partially offset by additional acquisitions and exchange gains on mainland China investment properties - The Group's investment property portfolio was valued at HKD 269.418 billion as of June 30, 2025, a decrease from HKD 271.502 billion as of December 31, 2024[113] - The decrease in valuation primarily reflects fair value losses on Hong Kong office investment properties, disposals of investment properties, and transfers of investment properties to assets classified as held for sale[113] Property Trading The property trading portfolio includes completed units in Hong Kong (EIGHT STAR STREET, The Southern Skies, 6 Deep Water Bay Road) and 8 residential projects under development, with plans for luxury residential and hotel projects in Miami. Hong Kong residential sales are gradually increasing, with medium to long-term demand expected to improve. The high-end residential market in mainland China's tier-one cities is expected to remain strong in the short term. Prospects for luxury residential markets in Southeast Asia and the US are robust Overview The property trading portfolio includes completed units available for sale in Hong Kong, as well as 8 residential projects under development (3 in Hong Kong, 2 in mainland China, 1 in Indonesia, 1 in Vietnam, and 1 in Thailand). Additionally, the Group plans to develop a luxury residential project on Brickell Key in Miami, USA - The property trading portfolio includes completed units available for sale at EIGHT STAR STREET, The Southern Skies, and 6 Deep Water Bay Road in Hong Kong[114] - There are 8 residential projects under development across Hong Kong, mainland China, Indonesia, Vietnam, and Thailand, with plans to develop a luxury residential project on Brickell Key in Miami, USA[114] Hong Kong Hong Kong property trading projects include EIGHT STAR STREET in Wan Chai (35 of 37 units sold), The Southern Skies in Wong Chuk Hang (278 of 800 units sold), 6 Deep Water Bay Road (occupation permits obtained for two detached houses), Hyde Park in Chai Wan (expected completion from 2025), 269 Queen's Road East in Wan Chai (expected completion 2026), and 983-987A King's Road and 16-94 Marina Street in Quarry Bay (expected completion 2028). Hong Kong residential sales are gradually increasing, with medium to long-term demand expected to improve - Of the 37 units at EIGHT STAR STREET in Wan Chai, 35 had been sold as of August 1, 2025[117] - Of the 800 residential units at The Southern Skies in Wong Chuk Hang, 278 had been sold as of August 1, 2025, with sales of 184 units recognized in H1 2025[118] - Hong Kong residential sales volumes are gradually increasing, with medium to long-term residential demand expected to improve, supported by increased demand from local and mainland Chinese buyers[123] Mainland China The Group holds a 40% interest in two new landmark projects in Shanghai Pudong New Area (Shanghai Qianhai mixed-use development and Taikoo Li Lujiazui). Approximately 97% of the total saleable area of Shanghai Century Qianhai Tianyu and Tianhui residential towers has been presold, with completion expected in 2026. Of the 107 presale units in two batches at Shanghai Taikoo Li Lujiazui Residences, 105 have been sold. The high-end residential market in mainland China's tier-one cities is expected to remain strong in the short term, with robust prospects for luxury residential markets in Beijing and Shanghai - Approximately 97% of the total saleable area of Shanghai Century Qianhai Tianyu and Tianhui residential towers has been presold, with completion expected in 2026[125] - Of the 107 presale units in two batches at Shanghai Taikoo Li Lujiazui Residences, 105 have been sold, with the project expected to be completed from 2026[126] - The high-end residential market in prime locations of mainland China's tier-one cities is expected to remain strong in the short term, with excellent sales performance for premium projects in Shanghai[127] Indonesia The Group is developing Savyavasa, a residential project in South Jakarta, Indonesia, with a total floor area of approximately 1.123 million sq ft, expected to provide around 400 residential units and be completed by the end of 2025. As of August 1, 2025, 156 units have been sold - Savyavasa, a residential project in South Jakarta, Indonesia, is expected to provide approximately 400 residential units and be completed by the end of 2025[128] - As of August 1, 2025, 156 units of the Savyavasa project have been sold[128] Vietnam The Group is investing in Empire City, a residential-led mixed-use development in Ho Chi Minh City, Vietnam, expected to be completed in phases by 2031 or earlier. As of August 1, 2025, approximately 53% of the units have been presold or sold - The Group's investment in Empire City, a mixed-use development in Ho Chi Minh City, Vietnam, is expected to be completed in phases by 2031 or earlier[129] - As of August 1, 2025, approximately 53% of the units in the Empire City project have been presold or sold[129] Thailand The Group acquired a 40% interest in a plot of land on Wireless Road in Bangkok, Thailand, to co-develop a residential project comprising two towers, expected to be completed in 2029. Piling works are currently underway - The Group is co-developing a residential project comprising two towers on Wireless Road in Bangkok, Thailand, which is expected to be completed in 2029[130] United States Presales for the Mandarin Oriental Residences Miami project began in 2024 with an enthusiastic market response. The existing Mandarin Oriental hotel closed in May 2025, with demolition planned for early 2026 to make way for the new project. The Group completed the disposal of the North Squared site in Brickell, Miami, in July 2025 - Presales for the Mandarin Oriental Residences Miami project began in 2024, with an enthusiastic market response[131] - The existing Mandarin Oriental hotel closed in May 2025, with demolition planned for early 2026 to make way for the new development project[131] Residential Market Outlook for Indonesia, Vietnam, Thailand, and the US Demand for luxury residential properties in Southeast Asia continues to be supported by urbanization, a growing middle class, and limited supply, with markets like Jakarta, Ho Chi Minh City, and Bangkok expected to improve. Despite recent market uncertainties, the Miami luxury residential market outlook remains robust due to its pleasant climate, favorable tax regime, and status as a gateway city to Latin America - Urbanization, a growing middle class, and limited supply continue to support demand for luxury residential properties in Southeast Asia, with markets like Jakarta, Ho Chi Minh City, and Bangkok expected to improve[132] - The Miami luxury residential market outlook remains robust due to Florida's pleasant climate, favorable tax regime, and its geographical position as a gateway city connecting to Latin America[132] Residential Property Management The Group manages 18 of its developed estates and is responsible for managing the Hong Kong residential property "OPUS HONG KONG". Management services include daily assistance, maintenance, cleaning, security, and renovation of common areas, with an emphasis on maintaining good relationships with residents - The Group manages 18 of its developed estates and is responsible for managing the Hong Kong residential property "OPUS HONG KONG"[133] - Management services include providing daily assistance, management, maintenance, cleaning, security, and renovation of common areas and facilities for residents[133] Hotels The Group owns and manages hotels in Hong Kong, mainland China, and the US through Swire Hotels, including "The House Collective" and "EAST" brands. In H1 2025, hotels managed by Swire Properties recorded an operating profit before depreciation of HKD 25 million, consistent with the previous year. Hong Kong hotel visitor recovery was slower, mainland China hotel performance was mixed, and US hotel operating performance was strong. The Group has confirmed plans to open five new hotels in Tokyo and mainland China Overview The Group owns and manages hotels in Hong Kong, mainland China, and the US through Swire Hotels, including "The House Collective" and "EAST" brands. In H1 2025, hotels managed by Swire Properties recorded an operating profit before depreciation of HKD 25 million, consistent with H1 2024. The Group has confirmed plans to open five new hotels in Tokyo and in Beijing, Shenzhen, Shanghai, and Xi'an in mainland China - The Group owns and manages hotels in Hong Kong, mainland China, and the US through Swire Hotels, including "The House Collective" and "EAST" brands[134] - In H1 2025, hotels managed by Swire Properties recorded an operating profit before depreciation of HKD 25 million, consistent with H1 2024[134] - The Group has confirmed plans to open five new hotels in Tokyo and in Beijing, Shenzhen, Shanghai, and Xi'an in mainland China[134] Hong Kong The Group wholly owns and manages The Upper House and EAST Hong Kong. Additionally, the Group holds a 20% interest in JW Marriott Hotel Hong Kong, Conrad Hong Kong, and Island Shangri-La, and a 26.67% interest in Novotel Citygate Hong Kong and The Silveri Hong Kong - MGallery. Hong Kong hotels managed by Swire Properties faced operational difficulties due to slower-than-expected visitor recovery, and the F&B business also remained weak - The Group wholly owns and manages The Upper House (117 guest rooms) and EAST Hong Kong (331 guest rooms)[138] - Hong Kong hotels managed by Swire Properties faced operational difficulties due to slower-than-expected hotel visitor recovery, and the Hong Kong F&B market remained weak[138] Mainland China Swire Hotels manages three hotels in mainland China: EAST Beijing, The Temple House Chengdu, and The Middle House Shanghai. The Group wholly owns The Temple House and holds a 50% interest in EAST Beijing and The Middle House. Additionally, the Group holds a 97% interest in Mandarin Oriental Guangzhou and a 50% interest in The Sukhothai Shanghai. In H1 2025, mainland China hotel performance was mixed, with improved average room revenue at The Temple House, while other hotels faced challenges - Swire Hotels manages three hotels in mainland China: EAST Beijing, The Temple House Chengdu, and The Middle House Shanghai[139] - In H1 2025, the performance of hotels managed and not managed by Swire Properties in mainland China was mixed, with improved average room revenue at The Temple House[139] United States EAST Miami, sold to a third party in 2021 but still managed by Swire Hotels, saw improved average room revenue in H1 2025. Room rates at Mandarin Oriental Miami decreased before its closure in May 2025. The Group acquired a 25% interest in the Mandarin Oriental Miami joint venture in June 2025, increasing its stake to 100%, with the hotel planned for demolition and redevelopment in early 2026 - EAST Miami's average room revenue improved in H1 2025 due to higher room rates[140] - In June 2025, the Group acquired a 25% interest in the Mandarin Oriental Miami joint venture, increasing its stake to 100%, with the hotel ceasing operations in May 2025 and planned for demolition and redevelopment in early 2026[140] Hotel Market Outlook The Hong Kong hotel industry outlook is expected to remain challenging, depending on the recovery of international tourist and business traveler flows. Mainland China's hotel business is anticipated to remain stable in H2 2025, while US hotels managed by Swire Properties are expected to perform well. The Group is expanding its hotel management business, focusing on brand expansion into the Asia Pacific region - The Hong Kong hotel industry outlook is expected to remain challenging, while mainland China's hotel business will remain stable in H2 2025[141] - Hotels managed by Swire Properties in the US are expected to perform well in H2 2025[141] - The Group is expanding its hotel management business, focusing on extending its hotel brands into the Asia Pacific region through a hotel management operating model[141] Capital Commitments In H1 2025, capital expenditure for Hong Kong investment properties and hotels was HKD 766 million, mainland China HKD 1.076 billion, and the US HKD 5 million. As of June 30, 2025, the Group had remaining capital commitments of HKD 19.263 billion, and attributable capital commitments from joint ventures of HKD 10.806 billion. The Group committed to injecting HKD 851 million into joint ventures - In H1 2025, capital expenditure for Hong Kong investment properties and hotels was HKD 766 million, for mainland China HKD 1.076 billion, and for the US HKD 5 million[142][143][144] - As of June 30, 2025, the Group had remaining capital commitments of HKD 19.263 billion, and attributable capital commitments from joint ventures of HKD 10.806 billion[216] - The Group committed to injecting HKD 851 million into joint ventures[217] Capital Commitments for Investment Properties and Hotels (HKD million) | Region | Expenditure for Six Months Ended June 30, 2025 | Total Commitments (as at June 30, 2025) | Commitments Related to Joint Ventures (as at June 30, 2025) | | :--- | :--- | :--- | :--- | | Hong Kong | 766 | 11,047 | 38 | | Mainland China | 1,076 | 19,022 | 10,768 | | US | 5 | - | - | | Total | 1,847 | 30,069 | 10,806 | Financing This chapter details Swire Properties' financing status, including a cash flow summary, medium-term note program, financing changes, net debt, funding sources, repayment profile, currency mix, finance costs, and net debt-to-capital ratio and interest cover, indicating a decrease in net debt, ample funding sources, and a robust financial position Cash Flow Summary In H1 2025, cash from operations significantly increased by 65% to HKD 6.103 billion. Net cash inflow before financing was HKD 6.683 billion, a 420% year-on-year increase. Cash and cash equivalents increased by HKD 7.907 billion Cash Flow Summary (Six Months Ended June 30) | Metric | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Cash from Operations | 6,103 | 3,701 | | Net Cash Inflow Before Financing | 6,683 | 1,284 | | Net Increase in Borrowings | 6,540 | 1,879 | | Dividends Paid | (4,491) | (4,262) | | Increase in Cash and Cash Equivalents | 7,907 | 519 | - In H1 2025, cash from operations was HKD 6.103 billion, a 65% increase compared to H1 2024[147] - Net cash inflow before financing was HKD 6.683 billion, a 420% increase compared to H1 2024[147] Medium Term Note Programme The company's wholly-owned subsidiary, Swire Properties MTN Financing Limited, increased its USD 3 billion Medium Term Note Programme to USD 5 billion in 2025. Notes issued under this program are unconditionally guaranteed by the company and rated A by Fitch Ratings and (P)A2 by Moody's, providing the Group with direct access to capital markets - The company's Medium Term Note Programme was increased to a total value of USD 5 billion in 2025[148] - Notes issued are unconditionally and irrevocably guaranteed by the company and rated A by Fitch Ratings and (P)A2 by Moody's[148] Changes in Financing This section analyzes the Group's financing changes in H1 2025. As of June 30, 2025, borrowings and bonds totaled HKD 55.611 billion, and lease liabilities were HKD 496 million. During the period, HKD 11.002 billion in borrowings and refinancing was drawn, and HKD 565 million in bonds were issued Analysis of Changes in Financing (Six Months Ended June 30) | Metric | Borrowings and Bonds (HKD million) | Lease Liabilities (HKD million) | | :--- | :--- | :--- | | Balance as at January 1 | 48,347 | 520 | | Drawdown of Borrowings and Refinancing | 11,002 | - | | Issuance of Bonds | 565 | - | | Repayment of Borrowings | (4,105) | - | | Balance as at June 30 | 55,611 | 496 | Net Debt As of June 30, 2025, net debt was HKD 42.853 billion, a 2% decrease from HKD 43.746 billion as of December 31, 2024. The decrease in net debt primarily reflects proceeds from the disposal of the subsidiary holding Brickell City Centre, partially offset by capital and development expenditures in Hong Kong and mainland China. The Group's borrowings are primarily denominated in HKD, RMB, and USD - As of June 30, 2025, net debt was HKD 42.853 billion, a 2% decrease from HKD 43.746 billion as of December 31, 2024[150] - The decrease in net debt primarily reflects proceeds from the disposal of the subsidiary holding Brickell City Centre, partially offset by capital and development expenditures in Hong Kong and mainland China[150] Outstanding Borrowings (HKD million) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Borrowings | 55,611 | 48,347 | | Lease Liabilities | 496 | 520 | | Less: Short-term Deposits and Bank Balances | 13,254 | 5,121 | | Net Debt | 42,853 | 43,746 | Sources of Funding As of June 30, 2025, committed borrowing facilities and debt securities amounted to HKD 66.807 billion, of which HKD 11.025 billion (17%) remained undrawn. Additionally, the Group had undrawn uncommitted facilities totaling HKD 400 million - As of June 30, 2025, committed borrowing facilities and debt securities amounted to HKD 66.807 billion, of which HKD 11.025 billion (17%) remained undrawn[151] - The Group had undrawn uncommitted facilities totaling HKD 400 million[151] Repayment Profile and Refinancing As of June 30, 2025, the repayment period for bank and other borrowings extends up to 2040. The Group's weighted average debt maturity was 3.2 years, and the weighted average cost of debt was 3.6% - As of June 30, 2025, the repayment period for bank and other borrowings extends up to 2040[152] Weighted Average Maturity and Cost of Group Debt | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Weighted Average Debt Maturity | 3.2 years | 2.5 years | | Weighted Average Cost of Debt | 3.6% | 4.0% | Repayment Profile of Group Borrowings (HKD million) | Period | June 30, 2025 | Percentage | | :--- | :--- | :--- | | Within 1 year | 12,956 | 23% | | 1 to 2 years | 8,363 | 15% | | 2 to 5 years | 31,087 | 56% | | After 5 years | 3,205 | 6% | | Total | 55,611 | 100% | Currency Mix As of June 30, 2025, the book value of the Group's total borrowings, by currency (after cross-currency swaps), was 56% in HKD, 40% in RMB, and 4% in USD Book Value of Total Borrowings by Currency (HKD million) | Currency | June 30, 2025 | Percentage | | :--- | :--- | :--- | | HKD | 30,935 | 56% | | RMB | 22,133 | 40% | | USD | 2,543 | 4% | | Total | 55,611 | 100% | Finance Costs As of June 30, 2025, 65% of the Group's total borrowings were on fixed interest rates, and 35% on floating interest rates. Net finance costs for H1 2025 were HKD 407 million, a decrease from HKD 469 million in H1 2024 - As of June 30, 2025, 65% of the Group's total borrowings were on fixed interest rates, and 35% on floating interest rates[156] Net Finance Costs (HKD million) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interest Expense | 973 | 905 | | Capitalized Interest | (356) | (368) | | Interest Income | (136) | (116) | | Net Finance Costs | 407 | 469 | Net Debt-to-Capital Ratio and Interest Cover As of June 30, 2025, the net debt-to-capital ratio was 15.7%, consistent with December 31, 2024. The underlying interest cover was 11.5 times, and cash interest cover was 6.6 times Net Debt-to-Capital Ratio and Interest Cover | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Debt-to-Capital Ratio | 15.7% | 15.7% | | Underlying Interest Cover | 11.5 | 8.9 | | Cash Interest Cover | 6.6 | 5.0 | Debt in Joint Ventures and Associates As of June 30, 2025, the total net debt of joint ventures and associates was HKD 16.309 billion, with the Group's attributable share being HKD 7.55 billion. If the attributable share is included in the Group's net debt, the net debt-to-capital ratio would increase to 18.5% Net Debt Position of Joint Ventures and Associates (HKD million) | Region | Net Debt of Joint Ventures and Associates (June 30, 2025) | Group's Attributable Share of Net Debt (June 30, 2025) | | :--- | :--- | :--- | | Hong Kong Entities | 8,028 | 3,002 | | Mainland China Entities | 7,946 | 4,393 | | US and Other Entities | 335 | 155 | | Total | 16,309 | 7,550 | - If the attributable share of net debt from joint ventures and associates is included in the Group's net debt, the net debt-to-capital ratio would increase to 18.5%[158] Review Report on Condensed Interim Financial Statements PricewaterhouseCoopers reviewed Swire Properties Limited's condensed interim financial statements for the six months ended June 30, 2025. The review scope was less than an audit, but nothing came to their attention that caused them to believe the financial statements were not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" Introduction PricewaterhouseCoopers has reviewed the condensed interim financial statements of Swire Properties Limited and its subsidiaries for the six months ended June 30, 2025, and reported in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants - PricewaterhouseCoopers has reviewed the condensed interim financial statements of Swire Properties Limited for the six months ended June 30, 2025[159] - The directors of the company are responsible for the preparation and presentation of these condensed interim financial statements in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[159] Scope of Review The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, which is substantially less in scope than an audit, and therefore does not provide assurance that all material matters would be identified. Consequently, the auditor does not express an audit opinion - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, which is substantially less in scope than an audit conducted in accordance with Hong Kong Standards on Auditing[160] - The auditor does not express an audit opinion, as a review does not provide assurance that all material matters would be identified[160] Conclusion Based on the review, nothing came to the auditor's attention that caused them to believe the Group's condensed interim financial statements were not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" - Nothing came to the auditor's attention that caused them to believe the Group's condensed interim financial statements were not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[161] Condensed Interim Financial Statements This chapter presents Swire Properties' unaudited condensed interim financial statements for the six months ended June 30, 2025, including the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of cash flows, and consolidated statement of changes in equity, providing an overview of the Group's financial performance and position during the reporting period Consolidated Income Statement For the six months ended June 30, 2025, the Group's revenue was HKD 8.723 billion, and operating profit was HKD 355 million. A loss of HKD 1.201 billion was recorded for the period, with a loss attributable to company shareholders of HKD 1.202 billion, and basic and diluted loss per share of HKD 0.21 Consolidated Income Statement Summary (Six Months Ended June 30) | Metric | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Revenue | 8,723 | 7,279 | | Gross Profit | 5,715 | 5,275 | | Fair Value Changes of Investment Properties | (3,900) | (842) | | Operating Profit | 355 | 3,217 | | Net Finance Costs | (407) | (469) | | (Loss)/Profit Before Tax | (591) | 3,098 | | (Loss)/Profit for the Period | (1,201) | 1,890 | | (Loss)/Profit Attributable to Company Shareholders | (1,202) | 1,796 | | (Loss)/Earnings Per Share (Basic and Diluted) | (0.21) | 0.31 | Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the loss for the period was HKD 1.201 billion. Total other comprehensive income was HKD 1.698 billion, primarily from net exchange differences and the share of other comprehensive income of joint ventures and associates. Total comprehensive income for the period was HKD 497 million, with HKD 439 million attributable to company shareholders Consolidated Statement of Comprehensive Income Summary (Six Months Ended June 30) | Metric | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | (Loss)/Profit for the Period | (1,201) | 1,890 | | Net Exchange Differences Recognized During the Period (Not Reclassified to Profit or Loss) | 57 | (37) | | Items That May Be Reclassified Subsequently to Profit or Loss | 1,641 | (1,592) | | Other Comprehensive Income for the Period, After Tax | 1,698 | (1,628) | | Total Comprehensive Income for the Period | 497 | 262 | | Total Comprehensive Income Attributable to Company Shareholders | 439 | 205 | Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets less current liabilities were HKD 331.172 billion. Investment properties amounted to HKD 269.520 billion. Net current assets were HKD 5.129 billion. Total equity was HKD 272.547 billion, with HKD 270.670 billion attributable to company shareholders Consolidated Statement of Financial Position Summary (as at June 30) | Metric | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Investment Properties | 269,520 | 271,617 | | Interests in Joint Ventures | 21,859 | 21,167 | | Interests in Associates | 10,628 | 10,296 | | Cash and Cash Equivalents | 13,254 | 5,121 | | Net Current Assets | 5,129 | 7,311 | | Long-term Borrowings and Bonds | 42,655 | 41,587 | | Total Equity | 272,547 | 278,427 | | Equity Attributa