长实集团(01113) - 2025 - 中期业绩

Performance Summary Performance Summary This section provides a concise overview of the company's financial performance for the first half of 2025, highlighting key profit metrics and dividend declarations | Indicator | 2025 (HKD Million) | 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Profit before revaluation of investment properties | 6,805 | 6,726 | +1.6 | | Revaluation of investment properties (net of tax and non-controlling interests) | (503) | 1,877 | - | | Profit attributable to shareholders | 6,302 | 8,603 | -26.2 | | Interim dividend (HKD per share) | 0.39 | 0.39 | - | - In the first half of 2025, profit per share before revaluation of investment properties was HKD 1.94, an increase of 1.6% compared to HKD 1.91 in the same period last year[4] - In the first half of 2025, profit per share attributable to shareholders was HKD 1.80, a decrease of 26.2% compared to HKD 2.44 in the same period last year[4] - The Board of Directors declared an interim dividend of HKD 0.39 per share for 2025, consistent with 2024[5] Business Review Property Sales The Hong Kong residential property market faced challenges in the first half of 2025, with cautious sentiment despite stamp duty reductions and lower mortgage rates, leading to increased sales revenue but reduced profit due to discounts - The Hong Kong residential property market remains challenging, with a cautious market sentiment[8] - Central government policies supporting mainland real estate demand stimulated the property market[8] - The Group's property sales revenue increased in the first half of 2025, but related profit decreased[8] - The residential project "Kai Tak Fleur de Lis" is expected to launch pre-sales in the second half of 2025[8] Property Leasing In the first six months of 2025, the Hong Kong retail and commercial property leasing sector was weak, with slight decreases in the Group's leasing income and profit, partially offset by earnings from the UK Civitas social infrastructure portfolio - The Hong Kong retail and commercial property leasing sector remains weak[9] - Earnings from the UK Civitas social infrastructure investment portfolio helped mitigate challenges faced by the Group in the Hong Kong market[9] - The Group's property leasing income and profit in the first half of the year both recorded slight decreases compared to the same period in 2024[9] - Promotional and leasing plans are actively underway for the newly completed Cheung Kong Center II[9] Hotel and Serviced Suite Business Despite an increase in visitors to Hong Kong, average hotel room rates declined due to industry cost pressures, resulting in moderate revenue growth but a slight decrease in profit for the Group's hotel and serviced suite business - Both visitor arrivals and overnight stays in Hong Kong increased, but average hotel room rates decreased[10] - The Group's hotel and serviced suite business recorded moderate revenue growth compared to the same period last year, but related profit slightly decreased[10] - The Group will continue to optimize its hotel and serviced suite business portfolio in response to market demand and is committed to digital transformation and innovation[10] Pub Business The UK pub industry faces challenges from rising operating costs and changing consumer habits, yet Greene King's pub business maintained stability with increased revenue and profit in the first half of 2025, aiming for long-term growth through digital investment - The UK pub industry is affected by increasing operating cost pressures and changing consumer habits[11] - Greene King's pub business maintained stability amidst a continuously difficult market environment, with both revenue and profit increasing compared to the same period in 2024[11] - Greene King is committed to achieving long-term growth by investing in digital technology, increasing market share, and enhancing customer spending[11] Infrastructure and Utility Assets Business The Group continues to expand its infrastructure and utility assets investment portfolio, providing stable recurring income with robust growth in revenue and profit during the period, while agreeing to sell its interests in Eversholt UK Rails - The Group continuously expands its infrastructure and utility assets investment portfolio, providing stable recurring income[12] - Revenue and profit recorded robust growth compared to the same period in 2024[12] - These businesses have appropriate debt-to-equity ratios, and their income and related assets are resilient to macroeconomic changes such as inflation and high interest rates[12] - The Group has agreed to sell all its interests in Eversholt UK Rails, with the transaction expected to take several months to complete[12] Sustainability The Group has achieved SBTi certification for its short-term and net-zero emission reduction targets, actively implementing decarbonization plans and sustainable construction practices in property development, earning multiple green building awards - The Group has obtained Science Based Targets initiative (SBTi) certification for its short-term and net-zero emission reduction targets[13] - Greene King also received SBTi approval in May this year for its net-zero emission target by 2040[13] - The Group intends to comply with the new mandatory climate-related disclosures under the HKEX ESG Guide ahead of schedule[13] - The Group's development projects have repeatedly won green building awards, including the Cheung Kong Center II receiving the BEAM Plus New Buildings Final Platinum rating certificate[14] Outlook Outlook The global economic environment is increasingly complex, influenced by geopolitical conflicts and trade tensions, while mainland China and Hong Kong economies show improvement, and the Group maintains a robust, diversified portfolio and strong financial position - The global economic environment is becoming increasingly complex and volatile, influenced by geopolitical conflicts, policy changes, and trade tensions[15] - The mainland economy continues to improve, with a 5.3% year-on-year GDP growth in the first half of 2025[15] - Hong Kong's real GDP increased by approximately 3% year-on-year in the first half of 2025, solidifying its position as an international financial, trade, and shipping center through its role as a super-connector[15] - The Group will continue to maintain its solid and diversified investment and asset portfolio, leveraging its financial strength and low capital gearing ratio to address challenges[16] - The Group's net debt to total capital ratio was approximately 5.0% at the interim balance sheet date[16] - The Group maintained credit ratings of "A/Stable" by S&P and "A2 Stable" by Moody's, reflecting its financial robustness[16] Appreciation Appreciation The Chairman extends deep gratitude to employees, Board members, and stakeholders worldwide for their diligent work, loyal service, and long-term support - The Chairman expresses deep gratitude to employees across all global departments, Board members, and various stakeholders for their diligent work, loyal service and long-term support[17] Management Discussion and Analysis Principal Business Activities This section details the Group's completed and anticipated property projects in 2025 across Hong Kong, mainland China, Singapore, and London, and highlights the update of its USD 5 billion Euro Medium Term Note Programme to support financing activities 2025 Completed and Expected Property Projects | Name | Location | Floor Area (sq ft) | Group's Interest | | :--- | :--- | :--- | :--- | | The Coastline II | Yau Tong Inland Lot | 304,884 | 100% | | Blue Coast and Blue Coast II | Aberdeen Inland Lot | 999,976 | Joint Development | | Perfect Ten | Singapore | 219,518 | 100% | | High-Rise Elegant City | Putuo District, Shanghai | 1,648,685 | 60% | | Imperial Peak | Nan'an District, Chongqing | 1,056,689 | 95% | | Laguna Verde | Henggang Reservoir, Dongguan | 383,647 | 99.8% | | Imperial Bay | Jinzhou New District, Dalian | 969,537 | 100% | | Villa Verde | Zengcheng, Guangzhou | 198,351 | 100% | | Longbo Garden | Daya Bay, Huizhou | 1,216,988 | 100% | | Imperial Garden | Pudong New Area, Shanghai | 261,480 | 85% | | Lakeview Garden | Caidian District, Wuhan | 283,127 | 100% | | Chelsea Waterfront | Chelsea/Fulham, London | 431,501 | 95% | - The Group updated its existing USD 5 billion Euro Medium Term Note Programme, which was listed on The Stock Exchange of Hong Kong Limited on June 23, 2025[21] Property Sales First-half property sales revenue significantly increased to HKD 7.366 billion, primarily from mainland China and overseas markets, but sales profit slightly decreased due to market weakness and discounts; the Group holds HKD 28.553 billion in contracted but unrecognised sales and approximately 67 million sq ft of developable land bank First-Half Recognized Property Sales Revenue (including share of joint ventures) | Region | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | Hong Kong | 2,803 | 2,601 | | Mainland China | 3,827 | 1,761 | | Overseas | 736 | 273 | | Total | 7,366 | 4,635 | First-Half Property Sales Profit | Region | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | Hong Kong | 74 | 1,044 | | Mainland China | 1,469 | 710 | | Overseas | 225 | 67 | | Total | 1,768 | 1,821 | - First-half property sales revenue increased year-on-year, but sales profit decreased, mainly due to various discounts offered by the Group to promote sales in a weak market, resulting in a lower profit margin during the period[22] Contracted but Unrecognized Property Sales (as of June 30, 2025) | Region | Expected to be recognized in 2025 (HKD Million) | Expected to be recognized after 2025 (HKD Million) | Total (HKD Million) | | :--- | :--- | :--- | :--- | | Hong Kong | 16,474 | 5,628 | 22,102 | | Mainland China | 2,153 | 27 | 2,180 | | Overseas | 4,271 | - | 4,271 | | Total | 22,898 | 5,655 | 28,553 | - As of the interim balance sheet date, the Group held approximately 67 million sq ft of developable land bank, including 6 million sq ft in Hong Kong, 58 million sq ft in mainland China, and 3 million sq ft overseas[25] Property Leasing First-half property leasing income and profit both decreased year-on-year, primarily due to the expiration of the Shanghai Meilongzhen Plaza joint venture in mainland China and the continued sluggish retail and office leasing market in Hong Kong; the Group's investment property portfolio of approximately 22.4 million sq ft recorded a fair value decrease of HKD 542 million during the period First-Half Property Leasing Income (including share of joint ventures) | Property Use | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | Retail | 859 | 971 | | Office | 871 | 890 | | Industrial | 386 | 385 | | Social Infrastructure | 671 | 648 | | Other | 215 | 224 | | Total | 3,002 | 3,118 | First-Half Property Leasing Profit | Region | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | Hong Kong | 1,745 | 1,816 | | Mainland China | 78 | 139 | | Overseas | 492 | 489 | | Total | 2,315 | 2,444 | - First-half property leasing income and profit both decreased year-on-year, mainly because the Shanghai Meilongzhen Plaza and commercial building in mainland China no longer provided rental income after the expiration of the joint venture, and the Hong Kong retail and office property leasing market remained sluggish[27] - As of June 30, 2025, the Group held an investment property portfolio of approximately 22.4 million sq ft[27] - As of June 30, 2025, a fair value decrease of HKD 542 million was recorded for investment properties based on professional valuation (2024 - increase of HKD 1.42 billion)[27] Hotel and Serviced Suite Business During the period, despite a continuous increase in visitor arrivals to Hong Kong, per capita spending decreased, leading to slight revenue growth but a slight year-on-year decrease in profit for the Group's hotel and serviced suite business, with high average occupancy rates of 89% for hotels and 88% for serviced suites - During the period, visitor arrivals to Hong Kong continued to increase, while per capita spending decreased compared to last year[28] - First-half hotel and serviced suite business revenue was HKD 2.192 billion (2024 - HKD 2.130 billion), recording slight growth[28] - The average occupancy rates for hotels and serviced suites during the period were 89% and 88%, respectively[28] First-Half Hotel and Serviced Suite Business Profit | Region | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | Hong Kong | 816 | 853 | | Mainland China | (22) | (30) | | Total | 794 | 823 | Property and Project Management First-half property and project management revenue remained stable, with a slight increase in profit; the Group manages approximately 248 million sq ft of properties, primarily in Hong Kong and mainland China, committed to providing quality services - First-half property and project management revenue was HKD 444 million (2024 - HKD 445 million), remaining stable[29] First-Half Property and Project Management Profit | Region | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | Hong Kong | 134 | 143 | | Mainland China | 22 | 20 | | Overseas | 26 | 17 | | Total | 182 | 180 | - As of the interim balance sheet date, the Group provided property management and related services for approximately 248 million sq ft of properties, primarily located in Hong Kong and mainland China[30] Pub Business The Group's pub business (Greene King) saw first-half revenue grow to HKD 12.524 billion, driven by price adjustments and local currency appreciation, with increased profit, maintaining stability despite weak consumer confidence and high labor costs - First-half pub business revenue was HKD 12.524 billion (2024 - HKD 11.823 billion), an increase of HKD 701 million compared to the same period last year[31] - Revenue growth was primarily driven by price adjustments and local currency appreciation[31] - First-half profit was HKD 629 million (2024 - HKD 597 million)[31] Greene King Pub Business Performance (First Half 2025) | Division | Revenue (HKD Million) | Profit (HKD Million) | | :--- | :--- | :--- | | Pub Company | 10,392 | 403 | | Pub Partners | 1,003 | 247 | | Brewing & Brands | 1,129 | (21) | | Total | 12,524 | 629 | Infrastructure and Utility Assets Business The Group's infrastructure and utility assets business, primarily operated through joint ventures, provides stable recurring income; first-half share of joint venture revenue reached HKD 13.598 billion, with profit of HKD 4.576 billion, showing robust year-on-year growth and strong performance across diversified investments in Australia, Europe, and North America Group's Share of Joint Ventures' Revenue (First Half 2025) | Joint Venture | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | CK William JV | 2,482 | 2,366 | | CKP (Canada) JV | 2,356 | 2,325 | | ista JV | 3,791 | 3,467 | | UK Power Networks JV | 2,028 | 1,835 | | Northumbrian Water JV | 1,536 | 1,337 | | Dutch Enviro Energy JV | 397 | 342 | | Wales & West Utilities JV | 668 | 590 | | UK Rails JV | 340 | 314 | | Total | 13,598 | 12,576 | First-Half Profit (Infrastructure and Utility Assets Business) | Joint Venture | Australia (HKD Million) | Europe (HKD Million) | North America (HKD Million) | 2025 Total (HKD Million) | 2024 Total (HKD Million) | | :--- | :--- | :--- | :--- | :--- | :--- | | CK William JV | 589 | 159 | (6) | 742 | 720 | | CKP (Canada) JV | - | - | 694 | 694 | 708 | | ista JV | - | 1,027 | - | 1,027 | 894 | | UK Power Networks JV | - | 1,071 | - | 1,071 | 959 | | Northumbrian Water JV | - | 496 | - | 496 | 360 | | Dutch Enviro Energy JV | - | 64 | - | 64 | (54) | | Wales & West Utilities JV | - | 297 | - | 297 | 310 | | UK Rails JV | - | 167 | - | 167 | 177 | | Other | - | - | 18 | 18 | 24 | | Total | 589 | 3,281 | 706 | 4,576 | 4,098 | Interests in Real Estate Investment Trusts The Group holds interests in Hui Xian REIT, Fortune REIT, and Prosperity REIT; during the period, Hui Xian REIT turned profitable, contributing HKD 77 million in net profit to the Group, while investments in Fortune REIT and Prosperity REIT recorded a fair value increase of HKD 475 million Group's Interests in Listed Real Estate Investment Trusts (as of June 30, 2025) | Name | Principal Business | Interest | | :--- | :--- | :--- | | Hui Xian REIT | Investing in mainland hotels and serviced suites, offices, and retail properties | 35.4% | | Fortune REIT | Investing in Hong Kong and Singapore retail properties | 25.7% | | Prosperity REIT | Investing in Hong Kong office, retail, and industrial properties | 17.6% | - During the period, the Group's share of Hui Xian REIT's net profit was HKD 77 million (2024 - loss of HKD 4 million)[34] - The Group's investments in Fortune REIT and Prosperity REIT recorded a fair value increase of HKD 475 million (2024 - decrease of HKD 634 million)[34] Financial Overview Liquidity and Financing The Group's total bank and other borrowings increased to HKD 54.4 billion, with net debt at HKD 21.4 billion and a net debt to total capital ratio of approximately 5.0%, maintaining robust liquidity with substantial cash and undrawn bank facilities - As of the interim balance sheet date, the Group's total bank and other borrowings were HKD 54.4 billion, an increase of HKD 1.7 billion compared to December 31, 2024[35] - Net debt as of the interim balance sheet date was HKD 21.4 billion, with a net debt to total capital ratio of approximately 5.0%[35] - The Group maintains robust liquidity with substantial cash and undrawn bank facilities[35] Financial Policy The Group adopts a prudent approach to managing foreign exchange and interest rate risks, utilizing hedging instruments and maintaining an appropriate mix of floating and fixed-rate borrowings, with borrowings primarily in HKD/USD and foreign currencies to match business needs - The Group adopts a prudent approach to managing foreign exchange risk and maintains an appropriate mix of floating and fixed-rate borrowings to mitigate interest rate risk[36] - The Group utilizes hedging instruments, including swap contracts and forward contracts, to mitigate foreign exchange and interest rate risks[36] - As of the interim balance sheet date, 32% of the Group's borrowings were in HKD/USD, and 68% were in foreign currencies (including AUD, GBP, and RMB)[36] - After accounting for effective swap contracts, approximately 54% were floating-rate and 46% were fixed-rate[36] Asset Pledges As of the interim balance sheet date, properties totaling HKD 7.43 billion were pledged for bank borrowings related to property development and investment, and properties totaling HKD 27.475 billion were pledged for other borrowings related to the pub business - Properties totaling HKD 7.43 billion were pledged for bank borrowings related to property development and investment[37] - Properties totaling HKD 27.475 billion were pledged for other borrowings related to the pub business[37] Contingent Liabilities The Group's contingent liabilities include guarantees of HKD 427 million for hotel project landowners' share of income and HKD 1.395 billion for property mortgage loans provided by banks to buyers of the Group's mainland development projects, with the latter significantly increasing from year-end - Guarantees for hotel project landowners' share of income amounted to HKD 427 million[38] - Guarantees for property mortgage loans provided by banks to buyers of the Group's mainland development projects amounted to HKD 1.395 billion (December 31, 2024 - HKD 439 million), a significant increase[38] Employees Employees As of the interim balance sheet date, the Group employed approximately 55,000 staff, with related employee costs of approximately HKD 6.878 billion during the period, ensuring competitive compensation without an employee share option scheme - As of the interim balance sheet date, the Group employed approximately 55,000 staff[39] - Related employee costs (excluding directors' emoluments) during the period were approximately HKD 6.878 billion[39] - The Group ensures competitive employee compensation and does not have an employee share option scheme[39] Purchase, Sale or Redemption of Listed Securities Purchase, Sale or Redemption of Listed Securities During the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and no treasury shares were held as of that date - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[40] - As of June 30, 2025, the Company and its subsidiaries did not hold any treasury shares in the Central Clearing and Settlement System or otherwise[40] Corporate Governance Code Overview of Corporate Governance Code The Company is committed to maintaining good corporate governance practices, complying with the HKEX Listing Rules' Corporate Governance Code, with the exception of the Chairman and Managing Director roles being held by the same individual, an arrangement deemed most appropriate for shareholders' overall interests - The Company has complied with all Corporate Governance Code provisions, except for the roles of Chairman and Managing Director being held by Mr. Victor T.K. Li concurrently[41][42] - The Board believes the current arrangement is most appropriate for the overall interests of shareholders, emphasizing that all significant decisions are made after careful deliberation by Board members, relevant committee members, and key Group personnel[42] - The majority of Board members are independent non-executive directors, possessing the necessary expertise, knowledge, experience, and diverse perspectives[42] Audit Committee The Audit Committee, comprising seven independent non-executive directors, is chaired by Mr. Cheung Ying Chow and has reviewed the Group's interim results for the six months ended June 30, 2025 - The Audit Committee consists of 7 members, all of whom are independent non-executive directors, chaired by Mr. Cheung Ying Chow[43] - The Group's interim results for the six months ended June 30, 2025, have been reviewed by the Audit Committee[44] Remuneration Committee The Remuneration Committee, with a majority of independent non-executive directors, is chaired by Independent Non-executive Director Ms. Hung Siu-lin, with Mr. Victor T.K. Li also serving as a member - The Remuneration Committee's majority of members are independent non-executive directors, chaired by Independent Non-executive Director Ms. Hung Siu-lin[45] - Members include another independent non-executive director, Mr. Cheung Ying Chow, and the Chairman and Managing Director, Mr. Victor T.K. Li[45] Nomination Committee The Nomination Committee, with a majority of independent non-executive directors, is chaired by Independent Non-executive Director Mr. Stephen Edward Clark, with Mr. Victor T.K. Li also serving as a member - The Nomination Committee's majority of members are independent non-executive directors, chaired by Independent Non-executive Director Mr. Stephen Edward Clark[46] - Members include two other independent non-executive directors, Mr. George C. Magnus and Dr. The Hon. Sir David K.P. Li, and the Chairman and Managing Director, Mr. Victor T.K. Li[46] Sustainability Committee The Sustainability Committee comprises three directors (mostly independent non-executive directors) and the Company Secretary, chaired by Deputy Chairman Mr. Kam Hing Lam - The Sustainability Committee consists of 3 directors (mostly independent non-executive directors) and the Company Secretary[47] - The Committee is chaired by Deputy Chairman Mr. Kam Hing Lam[47] Announcement of 2025 Interim Dividend Announcement of 2025 Interim Dividend The Board of Directors declared an interim dividend of HKD 0.39 per share for 2025, payable on September 25, 2025, to shareholders registered by the close of business on September 16, 2025 - The Board of Directors declared an interim dividend of HKD 0.39 per share for 2025[49] - The interim dividend will be distributed on Thursday, September 25, 2025[49] - The record date for shareholders registered in the Company's register of members is the close of business on Tuesday, September 16, 2025[49] Financial Statements Consolidated Income Statement For the six months ended June 30, 2025, the Group's total revenue (including share of joint ventures) increased to HKD 39.126 billion, but profit attributable to shareholders decreased by 26.2% to HKD 6.302 billion due to increased operating costs and a fair value decrease in investment properties Consolidated Income Statement Summary (Six Months Ended June 30) | Indicator | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | Group revenue | 25,386 | 22,008 | | Share of joint ventures' revenue | 13,740 | 12,719 | | Total Revenue | 39,126 | 34,727 | | Operating costs | (20,932) | (17,155) | | Gains (losses) from financial instruments | 1,115 | (207) | | Increase (decrease) in fair value of investment properties | (542) | 1,420 | | Share of joint ventures' profit | 2,061 | 1,445 | | Share of associates' profit (loss) | 77 | (4) | | Profit before tax | 8,575 | 9,215 | | Tax | (2,017) | (608) | | Profit for the period | 6,558 | 8,607 | | Profit attributable to shareholders | 6,302 | 8,603 | | Earnings per share | HKD 1.80 | HKD 2.44 | | Interim dividend (per share) | HKD 0.39 | HKD 0.39 | Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the Group's total comprehensive income significantly increased to HKD 11.623 billion from HKD 8.376 billion in the prior year, primarily driven by exchange gains on translating financial statements of overseas operations, despite losses from derivative financial instruments Consolidated Statement of Comprehensive Income Summary (Six Months Ended June 30) | Indicator | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | Profit for the period | 6,558 | 8,607 | | Exchange gains (losses) on translating financial statements of overseas operations | 15,501 | (2,223) | | Exchange gains (losses) on translating bank borrowings for hedging | (756) | 180 | | Gains (losses) from derivative financial instruments | (9,209) | 1,955 | | Share of joint ventures' other comprehensive income | (313) | 93 | | Other comprehensive income not reclassifiable to profit or loss | 12 | (471) | | Other comprehensive income after tax | 5,065 | (231) | | Total Comprehensive Income | 11,623 | 8,376 | | Total comprehensive income attributable to shareholders | 11,293 | 8,372 | Consolidated Statement of Financial Position As of June 30, 2025, the Group's total net assets increased to HKD 406.834 billion, with non-current assets growing due to increases in fixed assets, investment properties, and joint ventures, while net current assets slightly decreased, but total equity maintained robust growth Consolidated Statement of Financial Position Summary (as of June 30, 2025) | Indicator | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | | :--- | :--- | :--- | | Non-current Assets | | | | Fixed assets | 76,013 | 70,209 | | Investment properties | 152,857 | 150,708 | | Joint ventures | 88,349 | 78,998 | | Total non-current assets | 340,047 | 325,864 | | Current Assets | | | | Properties held for sale | 131,781 | 129,776 | | Bank balances and time deposits | 33,005 | 36,069 | | Total current assets | 175,549 | 175,917 | | Current Liabilities | | | | Bank and other borrowings | 10,966 | 11,139 | | Total current liabilities | 42,770 | 41,332 | | Net Current Assets | 132,779 | 134,585 | | Non-current Liabilities | | | | Bank and other borrowings | 43,385 | 41,577 | | Total non-current liabilities | 65,992 | 60,249 | | Net Assets | 406,834 | 400,200 | | Shareholders' Equity | 394,243 | 387,675 | Notes to the Financial Statements Revenue by Principal Business Activities The Group's total revenue is segmented by principal business activities and geographical regions; property sales revenue significantly increased, while infrastructure and utility assets business remains the largest revenue contributor, with the UK contributing the most and mainland China showing substantial growth Revenue by Principal Business Activities (Six Months Ended June 30) | Business | 2025 Total (HKD Million) | 2024 Total (HKD Million) | | :--- | :--- | :--- | | Property Sales | 7,366 | 4,635 | | Property Leasing | 3,002 | 3,118 | | Hotel and Serviced Suite Business | 2,192 | 2,130 | | Property and Project Management | 444 | 445 | | Pub Business | 12,524 | 11,823 | | Infrastructure and Utility Assets Business | 13,598 | 12,576 | | Total | 39,126 | 34,727 | Revenue by Region (Six Months Ended June 30) | Region | 2025 Total (HKD Million) | 2024 Total (HKD Million) | | :--- | :--- | :--- | | Hong Kong | 7,217 | 7,016 | | Mainland China | 4,217 | 2,233 | | United Kingdom | 18,765 | 17,034 | | Other | 8,927 | 8,444 | | Total | 39,126 | 34,727 | Contribution to Profit by Principal Business Activities after Allocation of Operating Costs This section presents the profit contribution from each principal business activity after allocating operating costs, with total profit contribution increasing from HKD 9.963 billion to HKD 10.264 billion, where infrastructure and utility assets business is the largest contributor, while property sales profit decreased Contribution to Profit by Principal Business Activities after Allocation of Operating Costs (Six Months Ended June 30) | Business | 2025 Total (HKD Million) | 2024 Total (HKD Million) | | :--- | :--- | :--- | | Property Sales | 1,768 | 1,821 | | Property Leasing | 2,315 | 2,444 | | Hotel and Serviced Suite Business | 794 | 823 | | Property and Project Management | 182 | 180 | | Pub Business | 629 | 597 | | Infrastructure and Utility Assets Business | 4,576 | 4,098 | | Total Profit Contribution | 10,264 | 9,963 | | Financing costs for bank and other borrowings | (2,219) | (1,926) | | Gains from financial instruments | 726 | 439 | | Interests in Real Estate Investment Trusts | 184 | 109 | | Fair value changes of Real Estate Investment Trusts | 475 | (634) | | Fair value changes of investment properties (net of tax) | (520) | 1,645 | | Other | 600 | 533 | | Tax (Group and joint ventures) | (2,952) | (1,522) | | Non-controlling interests | (113) | 137 | | Perpetual capital securities | (143) | (141) | | Profit attributable to shareholders | 6,302 | 8,603 | Items Deducted from Profit Before Tax This section lists key cost items deducted from profit before tax, including interest and other financing costs for bank and other borrowings (net of capitalized amounts, HKD 883 million), as well as cost of properties sold and provision for properties held for sale Items Deducted from Profit Before Tax (Six Months Ended June 30) | Item | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | Interest and other financing costs (net) | 883 | 666 | | Lease liabilities | 117 | 104 | | Cost of properties sold | 3,779 | 2,362 | | Cost of pub products sold | 3,414 | 3,350 | | Provision for properties held for sale | 1,100 | - | Taxation Total tax for the period was HKD 2.017 billion, comprising HKD 431 million in Hong Kong tax, HKD 1.404 billion in overseas tax, and HKD 182 million in deferred tax, representing a significant increase from the prior year Current Period Taxation (Six Months Ended June 30) | Item | 2025 (HKD Million) | 2024 (HKD Million) | | :--- | :--- | :--- | | Hong Kong | 431 | 254 | | Outside Hong Kong | 1,404 | 98 | | Deferred tax | 182 | 256 | | Total | 2,017 | 608 | Earnings Per Share Earnings per share are calculated based on profit attributable to shareholders and the number of shares in issue during the period, which was 3,499,778,333 shares (2024 - weighted average of 3,529,123,152 shares) - Earnings per share are calculated based on profit attributable to shareholders and the 3,499,778,333 shares in issue during the period (2024 - weighted average of 3,529,123,152 shares)[57] Trade and Other Receivables and Payables This section provides an aging analysis of trade and other receivables and payables; as of June 30, 2025, total trade and other receivables amounted to HKD 1.486 billion, and total trade and other payables amounted to HKD 4.122 billion Aging Analysis of Trade and Other Receivables by Contract Terms (as of June 30, 2025) | Aging | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | | :--- | :--- | :--- | | Within 1 month | 1,183 | 1,803 | | 2 to 3 months | 73 | 101 | | Over 3 months | 230 | 210 | | Total | 1,486 | 2,114 | Aging Analysis of Trade and Other Payables by Invoice Date and Credit Terms (as of June 30, 2025) | Aging | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | | :--- | :--- | :--- | | Within 1 month | 4,058 | 3,658 | | 2 to 3 months | 30 | 30 | | Over 3 months | 34 | 27 | | Total | 4,122 | 3,715 | Accounting Policies The significant accounting policies used in preparing these interim financial statements are consistent with those used for the financial statements for the year ended December 31, 2024, and the Group is currently assessing the impact of new and revised IFRS accounting standards not yet in effect - The significant accounting policies used in preparing these interim financial statements are consistent with those used for the financial statements for the year ended December 31, 2024[58] - The adoption of revised IFRS accounting standards effective for accounting periods beginning on or after January 1, 2025, has no significant impact on the Group's results and financial position[58] - The Group is currently assessing the impact of new and revised IFRS accounting standards not yet in effect on its results and financial position[58] Audit Committee Review These unaudited interim financial statements have been reviewed by the Audit Committee - These unaudited interim financial statements have been reviewed by the Audit Committee[58]