九龙仓置业(01997) - 2025 - 中期业绩

Performance Highlights This section provides an overview of the Group's financial performance, interim dividend declaration, and key operational achievements for the period Group Performance For the six months ended June 30, 2025, the Group's underlying net profit remained stable at HKD 3.119 billion, consistent with the prior year, but a widened revaluation loss on investment properties of HKD 5.118 billion led to an increased loss attributable to shareholders of HKD 2.406 billion, with basic loss per share at HKD 0.79 H1 2025 Performance Overview | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Underlying Net Profit | HKD 3.119 billion | HKD 3.123 billion | | Net Revaluation Loss on Investment Properties | (HKD 5.118 billion) | (HKD 4.426 billion) | | Group Loss Attributable to Shareholders | (HKD 2.406 billion) | (HKD 1.052 billion) | | Basic Earnings Per Share | HKD 1.03 | HKD 1.03 | | Basic Loss Per Share | (HKD 0.79) | (HKD 0.35) | Interim Dividend The Board declared a first interim dividend of HKD 0.66 per share, a 3.1% increase from the prior year, totaling HKD 2.004 billion, representing 65% of underlying net profit from Hong Kong investment properties and hotels, reflecting consistent dividend policy Interim Dividend Details | Item | Amount/Date | | :--- | :--- | | First Interim Dividend | HKD 0.66 per share (2024: HKD 0.64) | | Total Dividend Payout | HKD 2.004 billion | | Payment Date | September 11, 2025 | Performance Highlights Despite declining investment property income and profit, and expanded revaluation losses, the Group achieved a 27% reduction in borrowing costs and a record-low gearing ratio of 17.6% through effective financial management, maintaining robust underlying net profit and increasing interim dividend payout - Financial Optimization: Borrowing costs reduced by 27%, gearing ratio decreased to a new low of 17.6%[6] - Profitability: Underlying net profit remained stable, but revaluation loss on investment properties widened[6] - Shareholder Returns: Consistent dividend policy maintained, with an increase in interim dividend per share[6] Business Review and Outlook This section reviews the market environment, performance of core properties, and the Group's strategic outlook Market Environment and Financial Management Amid geopolitical tensions and economic uncertainties, Hong Kong's retail market shows initial recovery, while office and hotel sectors remain under pressure; the Group's prudent financial management reduced net debt to a post-listing low and maintained a healthy gearing ratio of 17.6%, effectively navigating market volatility - Market Trends: Inbound tourist arrivals increased by 12%, retail sales decline narrowed, with positive growth in the last two months; the office market faces dual pressures of weak demand and oversupply[7] - Financial Strategy: Maintained prudent financial management and actively reduced debt[7] Key Financial Management Indicators | Indicator | Period-End Data | | :--- | :--- | | Net Debt | HKD 33.3 billion (Lowest since listing) | | Average Interest Cost | 4.4% | | Borrowing Cost Savings | 27% | | Gearing Ratio | 17.6% | Core Property Performance During the period, Harbour City maintained stable overall revenue and operating profit with a 93% mall occupancy rate, while Times Square's overall revenue and operating profit declined by 15% and 19% respectively due to market conditions, though its mall occupancy rate rose to 96%; both properties actively introduced top brands and new concept stores to enhance competitiveness Harbour City Harbour City's overall revenue and operating profit, including hotels, remained largely flat; the mall maintained its market-leading position by introducing several top brands' first Hong Kong stores and expanding flagship stores, achieving a 93% occupancy rate, while the office occupancy rate remained at 90% but faced rental pressure due to market competition - Overall Performance: Revenue and operating profit changed by less than 1%[9] - Mall Leasing: Attracted brands like Louis Vuitton (expansion), Canali, Urban Revivo, and Bacha Coffee to open their first Hong Kong stores or concept stores[10] - Occupancy Rate: Mall at 93%, office at 90%[11] Times Square Times Square's overall revenue decreased by 15% and operating profit by 19%; to address challenges, the mall actively updated its tenant mix, introducing Louis Vuitton, expanding LOEWE, and opening Cristiano Ronaldo's first global CR7® flagship store, boosting its occupancy rate to 96%, while the office occupancy rate remained at 90% but faced rental pressure from new supply Times Square Performance Changes | Indicator | Year-on-Year Change | | :--- | :--- | | Overall Revenue | -15% | | Operating Profit | -19% | - Mall Leasing: Introduced Louis Vuitton and Cristiano Ronaldo's first global CR7® store, strengthening the luxury brand lineup[13] - Occupancy Rate: Mall increased to 96%, office maintained at 90%[14] Outlook Despite macroeconomic challenges, the Group maintains cautious optimism for the Hong Kong market, anticipating that capital inflows into Hong Kong stocks, the opening of Kai Tak Sports Park, and major events will boost the economy and consumer sentiment; the Group will uphold proactive management strategies and a low leverage ratio to navigate adversities and seize opportunities - Positive Factors: Hong Kong stocks regaining upward momentum, the opening of Kai Tak Sports Park, and major events are expected to enhance Hong Kong's attractiveness[15] - Group Strategy: Maintain proactive management and a low leverage ratio, rigorously screen capital investments, and utilize robust cash flow to seize future opportunities[15] Financial Review This section provides a detailed review of the Group's interim financial results, liquidity, financial resources, capital commitments, and human resources Interim Results Review The Group's total revenue slightly decreased by 1% to HKD 6.407 billion, and operating profit fell by 5% to HKD 4.684 billion, primarily due to a decline in investment property segment revenue, while hotel business revenue and profit both grew; despite an expanded revaluation loss on investment properties leading to a HKD 2.406 billion loss attributable to shareholders, underlying net profit remained stable at HKD 3.119 billion after excluding non-cash items Revenue and Operating Profit by Business Segment (HKD million) | Business Segment | Revenue (2025) | Revenue (2024) | Operating Profit (2025) | Operating Profit (2024) | | :--- | :--- | :--- | :--- | :--- | | Investment Properties | 5,371 | 5,542 | 4,528 | 4,718 | | Hotels | 766 | 748 | 47 | 24 | | Property Development | 58 | 8 | (1) | 74 | | Investments | 143 | 140 | 143 | 140 | | Group Total | 6,407 | 6,501 | 4,684 | 4,915 | - Investment Property Revaluation: Generated a 2% revaluation loss totaling HKD 5.15 billion, resulting in an unrealized revaluation loss attributable to shareholders of HKD 5.118 billion[18] - Finance Costs: Effective annual borrowing interest rate decreased from 5.7% to 4.4%, primarily due to a decline in HIBOR[20] Liquidity, Financial Resources, and Capital Commitments The Group's financial position is robust, with shareholders' equity at HKD 185.2 billion and total assets at HKD 234.2 billion as of period-end, 94% of which are in Hong Kong; net debt further decreased to HKD 33.3 billion, and the net debt to total equity ratio fell to 17.6%, with ample credit facilities and liquid investment portfolios, and future capital commitments primarily for Hong Kong investment properties and mainland development properties Key Financial Position Indicators (As of June 30, 2025) | Indicator | Amount/Ratio | Compared to December 31, 2024 | | :--- | :--- | :--- | | Shareholders' Equity | HKD 185.2 billion | Decreased by HKD 2.6 billion | | Total Assets | HKD 234.2 billion | Decreased by HKD 3.9 billion | | Net Debt | HKD 33.3 billion | Decreased by HKD 0.9 billion | | Net Debt to Total Equity Ratio | 17.6% | 17.8% | - Asset Composition: Investment property assets accounted for 93% of operating assets, totaling HKD 217.2 billion[25] - Credit Facilities: Total available credit facilities and issued debt securities amounted to HKD 44.1 billion, with HKD 9.4 billion unused[32] - Capital Commitments: Estimated principal planned expenditures for the coming years are HKD 936 million, of which HKD 240 million has been committed[35] Human Resources As of June 30, 2025, the Group employed approximately 2,900 staff, with remuneration policies determined by job responsibilities and market trends, including discretionary bonuses linked to individual and Group performance - Number of Employees: Approximately 2,900 staff[37] - Remuneration Structure: Fixed remuneration plus performance-linked variable bonuses[37] Consolidated Financial Statements This section presents the Group's consolidated income statement, consolidated statement of comprehensive income, and consolidated statement of financial position Consolidated Income Statement For the six months ended June 30, 2025, the Group recorded revenue of HKD 6.407 billion, a 1.4% year-on-year decrease; a HKD 5.15 billion decrease in fair value of investment properties resulted in a loss before tax of HKD 1.847 billion, with the ultimate loss attributable to company shareholders being HKD 2.406 billion Consolidated Income Statement Summary (HKD million) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 6,407 | 6,501 | | Operating Profit | 4,684 | 4,915 | | Decrease in Fair Value of Investment Properties | (5,150) | (4,450) | | Loss Before Tax | (1,847) | (460) | | Loss Attributable to Company Shareholders | (2,406) | (1,052) | | Basic Loss Per Share | (HKD 0.79) | (HKD 0.35) | Consolidated Statement of Comprehensive Income Loss for the period was HKD 2.475 billion, but positive impacts from fair value changes in equity investments, generating HKD 1.225 billion, and other foreign exchange differences, resulted in other comprehensive income of HKD 1.806 billion, narrowing the total comprehensive loss to HKD 669 million Consolidated Statement of Comprehensive Income Summary (HKD million) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss for the Period | (2,475) | (1,067) | | Other Comprehensive Income for the Period | 1,806 | (1,123) | | Total Comprehensive Income for the Period | (669) | (2,190) | | Total Comprehensive Income Attributable to Company Shareholders | (777) | (2,052) | Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were HKD 234.2 billion, total liabilities HKD 44.7 billion, and net assets HKD 189.5 billion, with investment properties as core assets valued at HKD 217.2 billion, and shareholders' equity at HKD 185.2 billion Consolidated Statement of Financial Position Summary (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current Assets (primarily Investment Properties) | 231,084 | 234,808 | | Total Assets | 234,219 | 238,072 | | Total Liabilities | (44,728) | (46,088) | | Net Assets | 189,491 | 191,984 | | Shareholders' Equity | 185,229 | 187,820 | Notes to Interim Financial Information This section provides detailed segment information and other key notes to the interim financial statements Segment Information The Group's business is divided into four segments: investment properties, property development, hotels, and investments, with investment properties being the core source of revenue and profit, contributing over 80% of revenue and the vast majority of operating profit; geographically, Hong Kong is the Group's primary focus, contributing over 94% of revenue and 96% of operating profit H1 2025 Revenue and Operating Profit by Business Segment (HKD million) | Segment | Revenue | Operating Profit/(Loss) | | :--- | :--- | :--- | | Investment Properties | 5,371 | 4,528 | | Property Development | 58 | (1) | | Hotels | 766 | 47 | | Investments | 143 | 143 | | Group Total | 6,407 | 4,684 | H1 2025 Revenue and Operating Profit by Geographical Region (HKD million) | Region | Revenue | Operating Profit | | :--- | :--- | :--- | | Hong Kong | 6,043 | 4,504 | | Outside Hong Kong | 364 | 180 | | Group Total | 6,407 | 4,684 | Other Key Notes This section provides further explanations of key financial statement items, noting that operating profit is stated after deducting staff costs of HKD 583 million and direct operating expenses for investment properties of HKD 817 million; total finance costs were HKD 853 million, including HKD 749 million in total interest expenses, and total income tax was HKD 628 million; the Board declared a first interim dividend of HKD 0.66 per share - Composition of Finance Costs: Total finance costs of HKD 853 million included interest expenses on bank and other borrowings of HKD 749 million and fair value losses on derivative financial instruments of HKD 74 million[54] - Income Tax: Income tax expense for the period was HKD 628 million, with Hong Kong profits tax provision at HKD 595 million[55] - Trade Receivables: The Group's credit period typically ranges from 0 to 60 days, with the vast majority of trade receivables aged within 30 days[60] Interim Dividend Declared | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interim Dividend Per Share | HKD 0.66 | HKD 0.64 | | Total Dividend | HKD 2.004 billion | HKD 1.943 billion | Corporate Governance and Other Matters This section outlines the Group's adherence to corporate governance principles, details on securities transactions, and key dates related to the interim dividend Corporate Governance and Securities Transactions During the reporting period, the Company complied with all applicable provisions of the Corporate Governance Code, with the sole exception of the Chairman and Chief Executive Officer roles being held by the same individual, which the Board believes is more effective for executing long-term strategies; neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period - Governance Code Compliance: The Company complied with the Listing Rules' Corporate Governance Code, except for the Chairman and Chief Executive Officer roles being held by the same person[64] - Securities Transactions: No purchases, sales, or redemptions of the Company's listed securities occurred during the reporting period[65] Interim Dividend Related Dates The Company announced the key timetable for interim dividend distribution, requiring shareholders to submit share transfer documents by 4:30 p.m. on August 27, 2025, with dividends to be paid on September 11 Interim Dividend Timetable | Event | Date | | :--- | :--- | | Ex-dividend Date | August 26, 2025 | | Record Date | August 27, 2025 | | Payment Date | September 11, 2025 |