恒基地产(00012) - 2025 - 中期业绩

Chairman's Report Interim Results and Dividends The Group's underlying profit attributable to shareholders decreased by 44% to HK$3.048 billion, primarily due to one-off gains in the prior period, with an interim dividend of HK$0.50 per share declared | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Underlying Profit Attributable to Shareholders | 3,048 | 5,441 | -44% | | Reported Profit Attributable to Shareholders | 2,908 | 3,174 | -8% | | Basic Earnings Per Share (HK$) | 0.63 | 1.12 | -43.75% | | Reported Earnings Per Share (HK$) | 0.60 | 0.66 | -9.09% | | Interim Dividend Per Share (HK$) | 0.50 | 0.50 | 0% | - The decrease in underlying profit was primarily due to attributable gains of approximately HK$2.503 billion in the prior period from government land resumption in new development areas and the disposal of a controlling interest in an investment property in North Point ("The Point") [2] - Fair value loss on completed investment properties and investment properties under development significantly reduced to HK$140 million, a substantial decrease from HK$2.267 billion in the prior period [2] Suspension of Share Registration Share registration will be suspended from September 5 to September 8, 2025, to determine eligibility for the interim dividend, which will be paid on September 17, 2025 - Share registration will be suspended from September 5 to September 8, 2025, and the interim dividend will be paid on September 17, 2025 [4] Business Review Hong Kong Hong Kong operations benefited from government policies and interest rate adjustments, improving the property market, while rental properties maintained stable occupancy and construction achieved industry recognition - The Hong Kong SAR Government's proactive measures to attract tourists and talent, develop an international education hub, coupled with stamp duty reductions and lower HKD bank interest rates, are favorable for the local property market [5] Property Sales (Hong Kong) Hong Kong property development revenue decreased by 22% to HK$3.812 billion, with pre-tax profit significantly lower due to prior period land resumption gains, though new projects achieved strong sales | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Attributable Hong Kong Property Development Revenue | 3,812 | 4,887 | -22% | | Attributable Hong Kong Property Development Pre-tax Profit | 310 | 1,499 | -79.3% | | Attributable Contracted Sales (Total) | 6,298 | N/A | N/A | | Unrecognized Attributable Contracted Sales (Total) | 10,424 | N/A | N/A | - The decrease in profit was primarily due to an attributable pre-tax gain of approximately HK$1.055 billion in the prior period from government land resumption in new development areas [5] - Several urban residential projects were launched, including "Belgravia Place" Phase 2 in Cheung Sha Wan, "The Southside" in Ma Tau Kok, and "Miami Quay" Phase 2 in Kai Tak, with "The Southside" achieving strong sales, selling all 181 residential units on its launch day [6] Property Development (Hong Kong) The Group successfully completed a land exchange application in Hung Shui Kiu/Ha Tsuen, with substantial urban redevelopment projects planned for sale or lease in 2025 H2 and beyond, maintaining a robust development pipeline | Location | Development Type | Site Area (sq ft) | Group's Interest (%) | Estimated Attributable Floor Area (sq ft) | Attributable Land Premium (HK$ million) | | :--- | :--- | :--- | :--- | :--- | :--- | | Hung Shui Kiu/Ha Tsuen New Development Area Zone 34B | Commercial/Residential | 178,718 | 50.00 | 580,828 | 931.36 | - Approximately 1.2 million sq ft of attributable floor area from urban old building redevelopment projects has been allocated for sale in 2025 H2 [7] | Category | Number of Projects | Remaining Attributable Saleable/Floor Area (million sq ft) | | :--- | :--- | :--- | | Remaining unsold units from major launched development projects | 26 | 1.3 | | Projects planned for launch in 2025 H2 | 10 | 1.5 | | Urban old building redevelopment projects (all property rights acquired or reached compulsory sale threshold) | Multiple | 1.7 | | Central New Waterfront Site 3 | 1 | 1.6 | | Yau Tong Bay Project | 1 | 0.9 | | Hung Shui Kiu/Ha Tsuen New Development Area Zone 34B | 1 | 0.6 | | Other properties for development/under development | Multiple | 4.3 | | Total | N/A | 11.9 | Land Bank As of June 30, 2025, the Group held approximately 22.9 million sq ft of attributable land bank in Hong Kong, including 11.9 million sq ft for sale/development and 11.0 million sq ft of completed investment properties, actively participating in new development areas | Land Bank Category | Attributable Floor Area (million sq ft) | | :--- | :--- | | Properties for sale/development/under development | 10.6 | | Remaining saleable floor area from major launched projects | 1.3 | | Completed rental properties (including hotels) | 11.0 | | Total | 22.9 | - Urban old building redevelopment projects are expected to provide approximately 1.7 million sq ft of attributable floor area for sale or lease in 2026 or later [18] | New Territories Land Bank Region | Attributable Land Area (million sq ft) | | :--- | :--- | | Yuen Long District | 25.8 | | North District | 12.1 | | Tai Po District | 3.4 | | Tuen Mun District and Others | 0.6 | | Total | 41.9 | - The Group owns approximately 6.1 million sq ft of attributable land in San Tin, "Northern Metropolis", of which approximately 0.334 million sq ft will be resumed by the government [22] - An additional approximately 0.187 million sq ft of the Group's land will be resumed by the government for the construction of the Northern Link main line, with expected cash compensation totaling approximately HK$540 million [23] Rental Properties (Hong Kong) Hong Kong's attributable gross rental income slightly increased to HK$3.411 billion, but pre-tax net rental income decreased by 1% to HK$2.483 billion, with major rental properties maintaining an average occupancy rate of 93% | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Attributable Gross Rental Income | 3,411 | 3,396 | +0.4% | | Attributable Pre-tax Net Rental Income | 2,483 | 2,512 | -1% | | IFC Attributable Gross Rental Income | 803 | 819 | -2% | | Major Rental Properties Average Occupancy Rate | 93% | N/A | N/A | | Category | Attributable Floor Area (million sq ft) | Percentage (%) | | :--- | :--- | :--- | | Shopping Malls or Retail Shops | 5.7 | 54 | | Offices | 4.2 | 40 | | Industrial | 0.2 | 2 | | Residential and Serviced Apartments | 0.4 | 4 | | Total | 10.5 | 100 | Retail Property Portfolio Despite economic uncertainties and changing consumption patterns, the Group's retail property portfolio maintained high occupancy rates, successfully attracting footfall and stimulating consumption through tenant mix adjustments and marketing strategies - The Group's retail property portfolio maintained high overall occupancy rates, successfully attracting a large number of family customers by introducing specialty restaurants, lifestyle stores, and beauty brands, and organizing various marketing activities [26] - MCP (Metro City Plaza) and Maritime Square won "Best Shopping Mall Creative – Hong Kong" and "Best Regional Shopping Mall – Hong Kong" awards, respectively [26] - Leasing interest for the podium malls of two large urban redevelopment projects in Tai Kok Tsui and Hung Hom was strong, expected to further enhance the Group's rental income [27] Office Property Portfolio Despite weak office leasing demand in Hong Kong, the Group's premium office property portfolio performed stably, with major properties maintaining 90% or higher occupancy, and "The Henderson" and a new Central waterfront project securing significant leases - Overall occupancy rates for IFC in Central, AIA Central in North Point, and the Kowloon East office portfolio remained at approximately 90% or above [28] - "The Henderson" achieved an occupancy rate of approximately 80%, attracting premium tenants such as Christie's, Audemars Piguet, and Carlyle, thereby solidifying the Group's recurring income base [29] - Phase 1 of the Central New Waterfront flagship project secured a lease with quantitative trading firm "Jane Street Asia Limited" for over 223,000 sq ft, setting a decades-long record for office leasing in Central's core business district [30] Construction The Group received "Developer of the Year – Hong Kong" and "Luxury Residential Development of the Year – Hong Kong" awards, with several residential projects achieving five-star ratings and four development projects completed during the period - The Group won "Developer of the Year – Hong Kong" and "Luxury Residential Development of the Year – Hong Kong" at the 2025 Asia Property Awards [31] - "Baker Circle • Euston" in Hung Hom and "Square Mile" in Mong Kok were both rated five-star residential estates by the Hong Kong Institute of Surveyors [31] | Project Name and Location | Development Type | Group's Interest (%) | Attributable Floor Area (sq ft) | | :--- | :--- | :--- | :--- | | Belgravia Place Phase 1 (Cheung Sha Wan) | Commercial/Residential | 100.00 | 293,566 | | The Horizon (Cheung Sha Wan) | Residential | 100.00 | 171,664 | | Square Mile (Mong Kok) | Commercial/Residential | 100.00 | 88,367 | | The Forest (Tai Po) | Commercial/Residential | 100.00 | 49,077 | | Total | N/A | N/A | 602,674 | Property Management (Hong Kong) The Group's property management companies manage over 85,000 residential and industrial/commercial units, 10 million sq ft of retail and office space, and 20,000 parking spaces, maintaining industry leadership with integrated management systems and community engagement - The Group's property management member companies manage over 85,000 residential and industrial/commercial units, 10 million sq ft of retail and office space, and 20,000 parking spaces [33] - Integrated management systems compliant with ISO 9001, ISO 10002, ISO 14001, and ISO 45001 have been adopted, earning recognitions such as the "Hong Kong Service Award for Excellence" and "Q-Mark Service Scheme" [33] - The "Year of Vitality" theme promoted public awareness of physical and mental well-being, organizing various sports, music, and environmental activities in collaboration with charitable organizations [33] Mainland China Mainland China's real estate market operated steadily with government support, strong performance in tier-one cities, and the Group's property sales and rental income impacted by reduced project completions and market pressures Real Estate Market Overview In H1 2025, local governments introduced pro-housing policies and financial easing measures, boosting demand and market confidence, leading to a stable overall market with resilient tier-one cities and easing inventory pressure in tier-two cities - Local governments introduced pro-housing policies and financial easing measures, effectively boosting demand, reducing homebuyer costs, and enhancing market confidence [34] - The central government's implementation of new residential policies injected new impetus into real estate development, ensuring overall market stability [34] - Tier-one cities showed greater resilience, while tier-two cities experienced a deep consolidation, gradually easing inventory pressure [34] Completed Development Projects The Group completed four development projects in Mainland China during the period, totaling 1.04 million sq ft of attributable floor area, including office and commercial projects in Shanghai and residential/commercial projects in Chengdu, Chongqing, and Tianjin | Project Name | Use | Group's Interest (%) | Attributable Floor Area (million sq ft) | | :--- | :--- | :--- | :--- | | Shanghai "The Metropolis Commercial Center" | Office and Commercial | 51 | 0.42 | | Chengdu "River & Mountain Mansion" Phase 2 | Residential | 50 | 0.28 | | Chongqing "Platinum Central" Phase 2 | Residential | 50 | 0.08 | | Tianjin "Metropolitan Riverfront" Phase 2 | Residential and Commercial | 50 | 0.26 | | Total | N/A | N/A | 1.04 | Property Investment The Group concentrated resources on leasing major property investment projects like Guangzhou "The Metropolis" and Shanghai "The West Bund Center", achieving over 80% occupancy, with new completions expected to boost future recurring income - Guangzhou "The Metropolis" two Grade A office towers and Shanghai "The Metropolis Plaza" both achieved over 80% occupancy by the end of June 2025 [36] - The newly completed Shanghai "The Metropolis Commercial Center" and the nearing completion Shenzhen "Cloud Tower" in Nanshan District are expected to increase rental income [36] Property Development (Mainland China) The Group continues to explore development opportunities in tier-one and key tier-two cities, holding approximately 9.54 million sq ft of attributable land bank across 14 cities, with about 65% designated for residential development - As of the end of June 2025, in addition to approximately 2.3 million sq ft of attributable inventory, the Group held developable land bank totaling approximately 9.54 million sq ft of attributable floor area across 14 cities [37] | Land Bank Use | Group's Estimated Attributable Developable Floor Area (million sq ft) | Percentage (%) | | :--- | :--- | :--- | | Residential | 6.19 | 65 | | Office | 1.68 | 18 | | Commercial | 1.37 | 14 | | Other | 0.30 | 3 | | Total | 9.54 | 100 | Property Sales (Mainland China) Attributable Mainland property development revenue decreased by 16% to RMB2.177 billion (HK$2.361 billion) due to fewer completed pre-sold residential properties, resulting in a pre-tax loss of RMB100 million (HK$108 million) | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Attributable Mainland Property Development Revenue | 2,177 | 2,590 | -16% | | Attributable Pre-tax Loss | 100 | 25 | +300% | | Attributable Contracted Sales (Total) | 1,135 | 1,830 | -38% | | Attributable Sales Floor Area (10,000 sq ft) | 90 | 114 | -21% | - Unrecognized attributable contracted sales totaled approximately HK$2.275 billion, of which approximately HK$621 million is expected to be recognized in 2025 H2 upon property completion and delivery to buyers [40] Rental Properties (Mainland China) The Group's attributable completed rental property portfolio in Mainland China expanded to approximately 13.4 million sq ft, but gross rental income decreased by 10% (RMB terms) and attributable gross rental income by 12% to HK$922 million due to economic uncertainties and competition | Category | Attributable Floor Area (million sq ft) | Percentage (%) | | :--- | :--- | :--- | | Office | 9.5 | 71 | | Commercial | 3.9 | 29 | | Total | 13.4 | 100 | | Region | Attributable Floor Area (million sq ft) | Percentage (%) | | :--- | :--- | :--- | | Beijing | 2.2 | 16 | | Shanghai | 7.2 | 54 | | Guangzhou | 2.6 | 19 | | Other | 1.4 | 11 | | Total | 13.4 | 100 | | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Gross Rental Income (RMB terms) | N/A | N/A | -10% | | Attributable Gross Rental Income (HK$ terms) | 922 | 1,047 | -12% | | Attributable Pre-tax Net Rental Income (HK$ terms) | 661 | 764 | -13% | - Beijing "World Financial Centre" occupancy rate declined to 60%, while Shanghai "Henderson Metropolitan" office occupancy was 97% and retail 93% [42] - Shanghai "The West Bund Center" leasing interest was strong, with occupancy rate increasing to over 60% [43] Property Management (Mainland China) Shanghai Star Property Management manages approximately 14 million sq ft of projects in Mainland China, holding multiple ISO certifications and receiving numerous awards for sustainable development and professional management - Shanghai Star Property Management manages approximately 14 million sq ft of projects in Mainland China, including 5,600 parking spaces [45] - Star Property has obtained management standard certifications compliant with ISO 9001, ISO 14001, ISO 45001, ISO 10002, and ISO 50001 [45] - Star Property received the WELL Health-Safety Leader Award and was recognized as a "Top 10 China Office Property Service Provider 2025" and "Leading China Property ESG Sustainable Development Enterprise 2025" [46] Henderson Land Development Company Limited Henderson Land Development's attributable loss narrowed to HK$41 million in H1 2025, operating through Citistore and Unicorn department stores/supermarkets, with member loyalty programs integrated into H•COINS | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Attributable Loss to Shareholders | 41 | 69 | -40.58% | | Citistore Self-operated Goods Sales Revenue | 128 | 145 | -11.72% | | Citistore Total Commission Income | 138 | 155 | -11% | | Citistore After-tax Loss | 7 | 11 | -36.36% | | Unicorn Total Sales | 582 | 588 | -1% | | Unicorn After-tax Loss | 30 | 53 | -43.39% | - Henderson Land Development primarily operates through five "Citistore" department stores, one "C-Life" homeware store, and two "APITA" or "UNY" department stores and two "UNY" supermarkets [47] - The "CU APP" member loyalty program has been integrated with the Company's "H•COINS" member loyalty program, providing a more convenient shopping experience for 860,000 members [47] Overall Performance (HLD) Henderson Land Development's attributable loss for H1 2025 narrowed to HK$41 million, an improvement from HK$69 million in the prior period | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Attributable Loss to Shareholders | 41 | 69 | -40.58% | Citistore Citistore's total sales, including self-operated and consignment goods, decreased by 13%, with self-operated goods revenue down 12% to HK$128 million, and a narrowed after-tax loss of HK$7 million | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Sales | N/A | N/A | -13% | | Self-operated Goods Sales Revenue | 128 | 145 | -11.72% | | Gross Profit Margin | 32% | N/A | N/A | | Total Commission Income | 138 | 155 | -11% | | After-tax Loss | 7 | 11 | -36.36% | Unicorn Unicorn's total sales, including self-operated and consignment goods, slightly decreased by 1% to HK$582 million, with an after-tax loss of HK$30 million, a reduction from the prior period | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Sales | 582 | 588 | -1% | | After-tax Loss | 30 | 53 | -43.39% | Outlook (HLD) Henderson Land Development will continue strict cost control and operational streamlining while expanding its loyalty program and leveraging technology to improve operations in a challenging environment - Henderson Land Development will continue to implement strict cost control, carefully reviewing all expenses and streamlining operational processes [49] - Efforts will focus on expanding the member base of its loyalty program and utilizing technology to understand customer needs, with the aim of improving operations [49] Miramar Hotel and Investment Company, Limited Miramar's revenue decreased by 7.6% to HK$1.295 billion, and attributable profit by 13.7% to HK$322.1 million, with underlying profit also down, while hotel occupancy was affected by upgrades, and rental income remained stable | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,295 | 1,402 | -7.6% | | Profit Attributable to Shareholders | 322.1 | 373.3 | -13.7% | | Underlying Profit Attributable to Shareholders | 341.8 | 397.9 | -14.1% | Overall Performance (Miramar) Miramar's revenue for H1 2025 decreased by 7.6% to HK$1.295 billion, with attributable profit down 13.7% to HK$322.1 million, and underlying profit (excluding fair value changes) decreasing by 14.1% to HK$341.8 million | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,295 | 1,402 | -7.6% | | Profit Attributable to Shareholders | 322.1 | 373.3 | -13.7% | | Underlying Profit Attributable to Shareholders | 341.8 | 397.9 | -14.1% | Hotel and Serviced Apartment Business Hotel and serviced apartment total revenue decreased by 5.7% to HK$280 million, and EBITDA by 29.0% to HK$53.5 million, with occupancy rates slightly down due to major IoT upgrade works at The Mira Hong Kong | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 280 | 297 | -5.7% | | EBITDA | 53.5 | 75.3 | -29.0% | | The Mira Hong Kong Average Occupancy Rate | 90.3% | 91.6% | -1.3% | | Hotel ICON Average Occupancy Rate | 92.9% | 94.6% | -1.7% | - The Mira Hong Kong underwent extensive smart IoT facility upgrade works starting in June, affecting approximately 10% of room availability monthly [51] - The Mira Hong Kong and Hotel ICON both received the internationally renowned Muslim travel indicator "CrescentRating" 5-level Muslim-friendly hotel certification [51] Rental Business Rental business revenue decreased by 3.9% to HK$385.5 million, and EBITDA by 5.2% to HK$322.8 million, with a fair value reduction of HK$14.7 million for investment properties, while office and retail occupancy rates remained above 90% | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 385.5 | 401.1 | -3.9% | | EBITDA | 322.8 | 340.5 | -5.2% | | Total Investment Property Fair Value Decrease | 14.7 | N/A | N/A | | Office and Retail Average Occupancy Rate | >90% | N/A | N/A | - Miramar continuously optimized its asset management strategy, meticulously adjusting the tenant mix to significantly increase the proportion of semi-retail tenants in office properties to nearly 60% [52] Food and Beverage Business Food and beverage total revenue decreased by 2.4% to HK$139.4 million, with an EBITDA loss of HK$2.8 million, which turned into a profit of HK$3.8 million after excluding a one-off provision for restaurant closures | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 139.4 | 142.8 | -2.4% | | EBITDA Loss | 2.8 | N/A | N/A | | EBITDA Excluding One-off Loss Provision | 3.8 | N/A | N/A | - "The Masterpiece" became Hong Kong's first high-end Chinese restaurant to receive "Halal-Friendly" certification and was awarded one diamond by the Black Pearl Restaurant Guide 2025 [53] Travel Business Travel business revenue decreased by 12.4% to HK$490.5 million, and EBITDA by 61.6% to HK$15.4 million, primarily due to weak local economy, exchange rate fluctuations, and geopolitical factors dampening travel demand | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 490.5 | 560 | -12.4% | | EBITDA | 15.4 | 40 | -61.6% | - The weak local economy, coupled with exchange rate volatility and geopolitical safety factors, further suppressed travel demand, especially for long-haul and high-end travel products [54] The Hong Kong and China Gas Company Limited Hong Kong and China Gas reported HK$27.514 billion in revenue, with a 3% increase in after-tax operating profit to HK$3.996 billion, but a 3% decrease in attributable profit to HK$2.964 billion, while actively expanding gas sources and new energy businesses | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 27,514 | N/A | N/A | | After-tax Operating Profit | 3,996 | 3,880 | +3% | | Profit Attributable to Shareholders | 2,964 | 3,055 | -3% | | Core Profit Excluding Borrowing Exchange Gains/Losses | N/A | N/A | +4% | | Towngas Smart Energy Core Profit | 719 | 705 | +2% | Overall Performance (Towngas) Hong Kong and China Gas's H1 2025 revenue reached HK$27.514 billion, with after-tax operating profit up 3% to HK$3.996 billion, but attributable profit decreased by 3% to HK$2.964 billion, though core business profit increased by 4% excluding exchange losses | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 27,514 | N/A | N/A | | After-tax Operating Profit | 3,996 | 3,880 | +3% | | Profit Attributable to Shareholders | 2,964 | 3,055 | -3% | | Core Profit Excluding Borrowing Exchange Gains/Losses | N/A | N/A | +4% | | Towngas Smart Energy Core Profit | 719 | 705 | +2% | Utilities Business Hong Kong Utilities Business Hong Kong gas sales remained largely flat, with over 5,000 new customers, and the company actively promoted gas-fired dehumidification and combined heat and power systems for energy saving and carbon reduction - Hong Kong gas sales were 14.935 billion MJ, largely flat year-on-year; the customer base increased by over 5,000 to approximately 2.04 million [56] - Actively promoting the application of gas-fired dehumidification and combined heat and power systems, with the North District Hospital expansion project introducing a "cold, heat, and power trigeneration" system, expected to save users HK$5 million in energy costs and reduce 3,900 tons of carbon emissions annually [56] Mainland China Utilities Business Mainland China's city gas sales remained stable with 980,000 new customers and an 8% increase in gas price spread to RMB0.54 per cubic meter, while "Gas+" businesses expanded and water/environmental profits grew - City gas customer base increased by 980,000 in H1, with gas price spread increasing by 8% to RMB0.54 per cubic meter [57] - Developed 75 new large industrial and commercial customers, adding an annual gas consumption scale of 240 million cubic meters, and achieved over 20% energy savings for users in dyeing industry direct-fired heat exchange retrofits [57] - Focused on expanding "Gas+" businesses, including energy-saving retrofits for industrial and commercial customers, energy management for public institutions, and integrated energy solutions for industrial parks [57] - Water and environmental businesses achieved profit growth due to increased sales volume and cost optimization [57][58] Gas Source Business Hong Kong and China Gas's Gas Source segment secured long-term international LNG agreements totaling 1.5 million tons annually from 2027, reducing procurement costs, and the Jintan gas storage facility in Changzhou, Jiangsu, entered a multi-reservoir operation phase - The Gas Source segment optimizes benefits for Towngas city gas enterprises through a "unified negotiation, separate signing" approach, where Hong Kong and China Gas directly negotiates gas supply and pricing with upstream suppliers [59] - Long-term international LNG agreements for a total of 1.5 million tons annually have been secured, to be implemented progressively from 2027, with the first batch of contracts for approximately 0.5 million tons [59] - The Jintan gas storage facility in Changzhou, Jiangsu, has entered a new phase of multi-reservoir synchronized operation, enhancing overall emergency supply and market peak shaving efficiency [59] Growth Businesses The Group actively developed renewable energy, sustainable aviation fuel (SAF), green methanol, and hydrogen businesses, achieving significant growth in solar power generation, securing SAF supply agreements, expanding green methanol production, and launching hydrogen energy projects Renewable Energy Business As of June 30, 2025, 128 zero-carbon smart industrial parks were established across 24 provincial regions, with distributed solar PV capacity reaching 2.6 GW and solar power sales increasing by 44% to 1.18 billion kWh - 128 zero-carbon smart industrial parks have been established across 24 provincial regions nationwide; industrial and commercial distributed PV installed capacity reached 2.6 GW [60] | Indicator | 2025 H1 | YoY Change (%) | | :--- | :--- | :--- | | Solar Power Sales | 1.18 billion kWh | +44% | | Power Trading Settlement Volume | 3.64 billion kWh | +14% | - Actively developing "Energy as a Service" (EaaS) to build an integrated "PV + storage + power sales" carbon reduction business model [60] - Successfully issued "Zero-Carbon Smart Phase 2" asset-backed special plan (quasi-REIT) products, raising approximately RMB470 million, with further issuance planned for H2 [61] Sustainable Aviation Fuel EcoCeres, a strategic shareholder incubated by Hong Kong and China Gas, secured a multi-year SAF supply agreement with British Airways, aiming to reduce approximately 400,000 tons of carbon emissions, with a new Malaysian plant expected to commence production this year - EcoCeres, Inc., a strategic shareholder incubated by Hong Kong and China Gas, signed a multi-year Sustainable Aviation Fuel (SAF) supply agreement with British Airways, which will help reduce approximately 400,000 tons of carbon emissions [62] - EcoCeres' new plant in Malaysia is expected to commence production this year, with an annual total capacity exceeding 400,000 tons [62] Green Methanol Green methanol products gained market recognition and orders, with full-year sales projected at 20,000 tons, and a new investment platform, VENEX, established with Foshan Gas to expand production capacity in Inner Mongolia and plan a new plant in Foshan - Green methanol products successfully certified and widely recognized by the market, with the business entering a growth phase, securing numerous orders, and full-year sales projected to reach 20,000 tons [63] - Completed the establishment of a new investment platform, VENEX, with Foshan Gas Group Co., Ltd., injecting the Inner Mongolia Ordos green methanol plant into VENEX to expand capacity [63] - Plans to build a new plant in Foshan, Guangdong-Hong Kong-Macao Greater Bay Area, with Phase 1 capacity of 200,000 tons, expected to commence production in 2027 [63] Hydrogen Energy Hong Kong's hydrogen energy initiatives include the first public EV hydrogen charging project and hydrogen power generation for the National Games, with the first green hydrogen project at Tseung Kwan O landfill expected to produce 330 kg of green hydrogen daily by 2026 - Hong Kong's first public EV automatic hydrogen charging project has launched and will provide hydrogen power for the 15th National Games golf event venue [64] - Hong Kong's first green hydrogen project at the Tseung Kwan O landfill expansion is expected to be completed and operational in 2026, producing 330 kg of green hydrogen daily [64] Extended Businesses Towngas Smart Energy completed its first round of strategic financing of US$45 million, supporting national expansion and AI-driven digital platform upgrades, while smart kitchen sales grew 25% and comprehensive home insurance sales reached 50% of insurance business - Towngas Smart Energy completed its first round of strategic financing of US$45 million in H1, which will support its rapid national scale development, enhance product and service capabilities, and fully apply AI technology to upgrade IoT and other digital platform capabilities [65] - Smart kitchen business sales increased by 25% year-on-year in H1; comprehensive home insurance sales accounted for 50% of insurance business sales [65] Outlook (Towngas) Full-year Hong Kong gas sales are expected to remain flat, while Mainland China's city gas pipeline network is maturing, allowing for a lighter asset development model, with growth businesses driving future development - Full-year Hong Kong gas sales are expected to remain largely flat [65] - Mainland China's city gas pipeline network development is maturing, allowing for reduced capital investment and continued development under a lighter asset model [65] - The future strategy and goal are to maintain steady progress in utilities and leverage growth businesses as new development drivers [65] Hong Kong Ferry (Holdings) Company Limited Hong Kong Ferry's underlying profit decreased by 19% to HK$69 million, but attributable profit increased by 36% to HK$122 million, with stable property development and investment, increased ferry losses due to engine damage but approved fare hikes, and growing medical and beauty services | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Underlying Profit | 69 | 85 | -19% | | Profit Attributable to Shareholders | 122 | 90 | +36% | Overall Performance (HK Ferry) Hong Kong Ferry's underlying profit for H1 2025 decreased by approximately 19% to HK$69 million, while attributable profit, including fair value changes in investment properties, increased by approximately 36% to HK$122 million | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Underlying Profit | 69 | 85 | -19% | | Profit Attributable to Shareholders | 122 | 90 | +36% | Property Development and Investment Business Gross rental income from shops and malls decreased by 5% to HK$60 million, with major shop occupancy rates ranging from 80% to 100%, and the company acquired new retail properties in Tsuen Wan for investment | Indicator | 2025 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | | Gross Rental Income from Shops and Malls | 60 | -5% | | "The Avenue" Shop Occupancy Rate | 100% | N/A | | "The Reach" Shop Occupancy Rate | 95% | N/A | | "The Apex" Shop Occupancy Rate | 91% | N/A | | "The Peak Plaza" Occupancy Rate | 87% | N/A | | "The Harbourfront Plaza" Occupancy Rate | 80% | N/A | - Approval was obtained from the Urban Renewal Authority to convert the residential portion of "The Horizon" for youth hostel use, with market-rate rent collection commencing at the end of June this year [67] - In August 2025, multiple shops in Zone A, G/F of "Tai Hung Fai (Tsuen Wan) Centre" in Tsuen Wan were acquired for HK$260 million, with an annualized gross rental yield of approximately 5.6%, intended for investment [67] Ferry, Shipyard and Related Businesses Ferry, shipyard, and related businesses recorded a loss of HK$12.5 million, an increase of HK$9.5 million, primarily due to reduced revenue from "Bauhinia Victoria Harbour Cruise" caused by a damaged ferry engine, though fare increases are expected to mitigate future losses | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | Change (HK$ million) | | :--- | :--- | :--- | :--- | | Loss | 12.5 | 3 | +9.5 | - The increased loss was primarily due to reduced revenue from the "Bauhinia Victoria Harbour Cruise" business as one ferry underwent engine replacement in H1 [68] - A fare increase for the North Point to Kwun Tong dangerous goods vehicle ferry service was successfully approved by the Transport Department, with new fares effective April 12, 2025, expected to reduce losses in H2 [68] Medical, Health and Beauty Services Medical, health, and beauty services continued to be profitable, with specialized services at H Zentre performing well, a new physiotherapy center planned, and AMOUR Medical Beauty Centre's revenue increasing by 26% to HK$22 million - Specialized services in cardiology, surgery, orthopedics, plastic surgery, and urology are provided at H Zentre in Tsim Sha Tsui, with steady performance and continued profitability [69] - AMOUR Medical Beauty Centre's revenue was HK$22 million, an increase of 26% compared to the prior period [69] - While health and beauty businesses did not record net profit, overall EBITDA was positive during the review period [69] Sunshine Real Estate Investment Trust Sunshine REIT's revenue decreased by 4.8% to HK$391.2 million, and net property income by 5.4% to HK$307.4 million, resulting in an after-tax loss of HK$172.2 million due to fair value impairment, though distributable income remained relatively stable | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 391.2 | 411 | -4.8% | | Property Operating Expenses | 83.8 | 86.1 | -2.7% | | Net Property Income | 307.4 | 325 | -5.4% | | Cost-to-Income Ratio | 21.4% | N/A | N/A | | Investment Property Fair Value Impairment | 314.3 | N/A | N/A | | After-tax Loss | 172.2 | (79.5) | N/A | | Distributable Income | 168.6 | 171.7 | -1.8% | | Cash Interest Expense | 91.5 | 106.3 | -14% | Overall Performance (Sunshine REIT) Sunshine REIT's H1 2025 revenue decreased by 4.8% to HK$391.2 million, with net property income down 5.4% to HK$307.4 million, and an after-tax loss of HK$172.2 million after a HK$314.3 million fair value impairment on investment properties | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 391.2 | 411 | -4.8% | | Net Property Income | 307.4 | 325 | -5.4% | | Investment Property Fair Value Impairment | 314.3 | N/A | N/A | | After-tax Loss | 172.2 | (79.5) | N/A | | Distributable Income | 168.6 | 171.7 | -1.8% | | Cash Interest Expense | 91.5 | 106.3 | -14% | Property Portfolio Performance Sunshine REIT's overall property portfolio occupancy rate decreased to 89.2% as of June 30, 2025, with negative rental reversions of 8.5% for offices and 7.1% for retail, while office passing rents slightly declined and retail remained stable | Indicator | 2025 June 30 | 2024 December 31 | Change | | :--- | :--- | :--- | :--- | | Overall Property Portfolio Occupancy Rate | 89.2% | 91.3% | -2.1% | | Office Occupancy Rate | 90.0% | 92.0% | -2.0% | | Retail Occupancy Rate | 87.6% | 90.1% | -2.5% | | Office Negative Rental Reversion | 8.5% | N/A | N/A | | Retail Negative Rental Reversion | 7.1% | N/A | N/A | | Overall Negative Rental Reversion | 7.7% | N/A | N/A | | Office Passing Rent (HK$ per sq ft) | HK$31.7 | HK$32.1 | -1.2% | | Retail Passing Rent (HK$ per sq ft) | HK$65.5 | HK$65.5 | 0% | Outlook (Sunshine REIT) Hong Kong's commercial property market faces persistent challenges and negative rental reversion pressure, but refinancing for upcoming debt is progressing well, and potential lower financing costs may alleviate pressure on distributable income - Hong Kong's commercial property market continues to face severe headwinds, with negative rental reversion pressure expected to persist [72] - Refinancing arrangements for borrowings maturing within the next twelve months are progressing well, with favorable indicative pricing reflecting Sunshine REIT's financial strength [72] - Despite anticipated ongoing operational challenges, potentially lower financing costs may help alleviate pressure on distributable income [72] Sustainability The Group reaffirmed its "G.I.V.E." sustainability strategy, earning "Developer of the Year – Hong Kong" for the third consecutive year and multiple MIKE Awards, while actively engaging in youth empowerment and ESG challenges - The Group was again awarded "Developer of the Year – Hong Kong" for the third consecutive year [74] - Received the Global and Hong Kong "Most Innovative Knowledge Enterprise (MIKE) Award" for the fifth time, recognizing the Group's excellence in innovation [74] - Actively promoted youth empowerment programs through direct engagement with The Chinese University of Hong Kong, Hong Kong Baptist University, The Hong Kong Polytechnic University, and Chu Hai College of Higher Education, and sponsored ESG challenges [74] Outlook (Group) Improved US-China trade talks and Hong Kong's talent policies are expected to support the property market, with the Group having ample land bank, 5,600 attributable residential units for sale in H2, and HK$12.699 billion in unrecognized property sales - Recent active discussions between the US and China on trade disputes have improved market sentiment [75] - The Hong Kong SAR Government's talent schemes and development of an international tertiary education hub will help boost housing demand, providing some support to the local property market [75] - The Group expects to have approximately 5,600 attributable residential units, or about 2.66 million sq ft of attributable residential floor area, available for sale in Hong Kong in 2025 H2 [76] | Indicator | Amount (HK$ million) | | :--- | :--- | | Total Unrecognized Attributable Property Sales in Hong Kong and Mainland China | 12,699 | | Sales Amount Expected to be Recognized in 2025 H2 | 8,377 | - The Group currently holds 10.5 million sq ft and 13.4 million sq ft of attributable completed rental properties in Hong Kong and Mainland China, respectively [76] - The Hong Kong and China Gas Company Limited had over 45 million city gas customers in Mainland China and Hong Kong by the end of June 2025, with its growth businesses expected to generate continuous revenue for the Group [77] Group Finance The Group maintains a robust financial position with stable net debt and gearing ratio, actively utilizing green financing, and possessing ample credit facilities and recurring income to support future development, while managing interest rate and exchange rate risks Financial Overview The Group adheres to prudent financial management, with net debt of HK$67.415 billion and a gearing ratio of 21.1% as of June 30, 2025, and successfully issued HK$8 billion in 0.5% guaranteed convertible bonds in July 2025 | Indicator | 2025 June 30 (HK$ million) | 2024 December 31 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Net Debt | 67,415 | 67,989 | -0.84% | | Gearing Ratio | 21.1% | 21.1% | 0% | | Shareholder Loans | 73,923 | 66,215 | +11.64% | Financial Resources and Liquidity As of June 30, 2025, the Group's total debt was HK$84.015 billion, with net debt of HK$67.415 billion and a gearing ratio of 21.1%, maintaining ample bank credit facilities and recurring income, while actively hedging interest rate and exchange rate risks | Indicator | 2025 June 30 (HK$ million) | 2024 December 31 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Debt | 84,015 | 85,908 | -2.2% | | Cash and Bank Balances | 16,600 | 17,919 | -7.36% | | Net Debt | 67,415 | 67,989 | -0.84% | | Shareholders' Equity | 320,138 | 322,147 | -0.62% | | Gearing Ratio | 21.1% | 21.1% | 0% | | Interest Coverage Ratio (times) | 1.56 | 2.13 | -26.8% | - As of June 30, 2025, the Group's overall effective annual borrowing interest rate was approximately 3.67% (2024: approximately 4.50%) [155] - 32% of the Group's total debt (December 31, 2024: 37%) was fixed-rate borrowings [161] - The Group entered into hedging arrangements with several counterparty banks, including interest rate swaps, cross-currency swaps, cross-currency interest rate swaps, and forward foreign exchange contracts, totaling HK$16.018 billion, representing 19% of total debt [165] Significant Acquisitions and Disposals There were no significant acquisitions or disposals during the review period, and a planned transaction to sell a new hotel site in Kimberley Road, Kowloon, to Miramar was terminated, with the Group proceeding to redevelop the property into a new hotel - There were no significant acquisitions or disposals by the Group during the review period [166] - The proposed transaction to sell the site at 16 Kimberley Road, Kowloon, and its new hotel to Miramar was terminated due to the failure of Miramar's independent shareholders to pass an ordinary resolution [167] - The Group will proceed with the demolition of the existing building on the property and redevelop it into a new hotel according to approved building plans [167] Resumption of Certain Land by HKSAR Government In H1 2025, the HKSAR Government resumed approximately 330,000 sq ft of the Group's developable leasehold land in Yuen Long South and Kam Tin for HK$353 million cash compensation, recognizing a pre-tax attributable gain of HK$240 million | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | | :--- | :--- | :--- | | Cash Compensation for Government Land Resumption | 353 | 1,860 | | Attributable Pre-tax Gain | 240 | 1,059 | - As of June 30, 2025, the Hong Kong SAR Government resumed approximately 330,000 sq ft of the Group's developable leasehold land for sale located in Yuen Long South and Kam Tin, New Territories, Hong Kong [168] Pledge of Assets As of June 30, 2025, and December 31, 2024, the Group had not pledged any assets of its subsidiaries to any parties - As of June 30, 2025, and December 31, 2024, the Group had not pledged any assets of its subsidiaries to any parties [169] Capital Commitments As of June 30, 2025, the Group's capital commitments decreased to HK$16.957 billion, with attributable capital commitments in joint ventures and certain associates also reduced to HK$3.993 billion | Indicator | 2025 June 30 (HK$ million) | 2024 December 31 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Group Capital Commitments | 16,957 | 19,030 | -10.89% | | Attributable Capital Commitments in Joint Ventures and Associates | 3,993 | 5,666 | -29.53% | Contingent Liabilities As of June 30, 2025, the Group's contingent liabilities decreased to HK$12.835 billion, primarily comprising performance guarantees for subsidiaries and joint venture projects, guarantees for Mainland property buyers, and loan guarantees for Kai Tak and To Kwa Wan URA projects | Indicator | 2025 June 30 (HK$ million) | 2024 December 31 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Contingent Liabilities | 12,835 | 14,635 | -12.3% | - Primarily includes performance guarantees for subsidiary and joint venture projects (HK$239 million), guarantees for buyers of Mainland property units (HK$2.523 billion), and loan guarantees for joint ventures in the Kai Tak Development Area and To Kwa Wan URA projects [171] Employees and Remuneration Policy As of June 30, 2025, the Group had 9,997 full-time employees, a slight increase, with total staff costs rising 4% to HK$1.594 billion, offering competitive remuneration and comprehensive benefits | Indicator | 2025 June 30 | 2024 December 31 | Change (%) | | :--- | :--- | :--- | :--- | | Number of Full-time Employees | 9,997 | 9,970 | +0.27% | | Total Staff Costs (HK$ million) | 1,594 | 1,533 | +4% | Financial Statements Consolidated Income Statement For H1 2025, the Group's revenue decreased by 19% to HK$9.552 billion, with operating profit (before fair value changes) down 34.6% to HK$2.304 billion, and attributable profit decreasing by 8% to HK$2.908 billion | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 9,552 | 11,762 | -19% | | Operating Profit Before Fair Value Changes | 2,304 | 3,518 | -34.6% | | Decrease in Fair Value of Investment Properties | (427) | (146) | +192.5% | | Operating Profit After Fair Value Changes | 1,877 | 3,372 | -44.3% | | Net Finance Costs | (933) | (579) | +61.1% | | Profit Before Tax | 2,562 | 4,271 | -40% | | Income Tax | 430 | (286) | N/A | | Profit for the Period | 2,992 | 3,985 | -24.9% | | Profit Attributable to Shareholders | 2,908 | 3,174 | -8% | | Basic Earnings Per Share (HK$) | 0.63 | 1.12 | -43.75% | | Reported Earnings Per Share (HK$) | 0.60 | 0.66 | -9.09% | Consolidated Statement of Comprehensive Income For H1 2025, profit for the period was HK$2.992 billion, with other comprehensive income of HK$1.409 billion, primarily from exchange differences and share of associates/joint ventures, leading to a 95.8% increase in attributable total comprehensive income to HK$4.293 billion | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 2,992 | 3,985 | -24.9% | | Exchange Differences | 662 | (322) | N/A | | Share of Other Comprehensive Income of Associates and Joint Ventures | 903 | (686) | N/A | | Other Comprehensive Income for the Period | 1,409 | (977) | N/A | | Total Comprehensive Income for the Period | 4,401 | 3,008 | +46.3% | | Total Comprehensive Income Attributable to Shareholders | 4,293 | 2,192 | +95.8% | Consolidated Statement of Financial Position As of June 30, 2025, the Group's total non-current assets were HK$417.917 billion, with total current assets of HK$114.654 billion, and total equity attributable to shareholders slightly decreased to HK$320.138 billion | Indicator | 2025 June 30 (HK$ million) | 2024 December 31 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Investment Properties | 273,871 | 271,874 | +0.73% | | Interests in Associates | 50,669 | 50,564 | +0.21% | | Interests in Joint Ventures | 79,088 | 77,876 | +1.56% | | Total Non-current Assets | 417,917 | 412,247 | +1.38% | | Inventories | 84,234 | 85,608 | -1.61% | | Cash and Bank Balances | 16,600 | 17,919 | -7.36% | | Total Current Assets | 114,654 | 118,993 | -3.65% | | Trade and Other Payables | 24,464 | 26,811 | -8.75% | | Bank Borrowings (Current) | 8,672 | 8,001 | +8.39% | | Guaranteed Notes (Current) | 2,692 | 9,585 | -71.91% | | Total Current Liabilities | 37,251 | 45,811 | -18.69% | | Bank Borrowings (Non-current) | 61,292 | 54,626 | +12.2% | | Loans from Fellow Subsidiaries | 73,923 | 66,215 | +11.64% | | Total Non-current Liabilities | 156,591 | 144,852 | +8.1% | | Net Assets | 338,729 | 340,577 | -0.54% | | Total Equity Attributable to Shareholders | 320,138 | 322,147 | -0.62% | Notes The notes provide detailed financial information, including review of results, accounting policy changes, revenue breakdown, net other income, fair value changes of investment properties, pre-tax profit analysis, income tax, earnings per share, dividends, segment reporting, inventory, and receivables/payables Review of Results and Basis of Preparation The unaudited condensed interim financial statements were reviewed by KPMG and the Audit Committee, prepared in accordance with Listing Rules and HKAS 34, applying consistent accounting policies with 2024, except for expected 2025 changes - The unaudited condensed interim financial statements were reviewed by KPMG in accordance with HKSRS 2410 and by the Company's Audit Committee [86] - The condensed interim financial statements are prepared in accordance with applicable disclosure requirements of the HKEX Listing Rules and HKAS 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants [87] Changes in Accounting Policies The Group applied amendments to HKAS 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability", which had no material impact on financial performance or position, and did not early adopt any new standards or interpretations - The Group applied amendments to HKAS 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability", but this amendment did not have a material impact on the Group's financial performance or position [90] - The Group did not apply any new standards or interpretations that are not yet effective for the current accounting period [91] Revenue Group revenue, primarily from property development, rental income, department stores, and hotels, totaled HK$9.552 billion in H1 2025, a 19% decrease, with HK$10.39 billion in unrecognized property sales contracts | Revenue Source | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Property Development (including property sales) | 4,008 | 4,943 | -19% | | Rental Income | 3,363 | 3,459 | -3% | | Department Store Business and Supermarket & Department Store Integrated Business | 745 | 778 | -4% | | Hotel Room Operations Business | 156 | 165 | -5% | | Other Businesses | 1,280 | 2,417 | -47% | | Total | 9,552 | 11,762 | -19% | - As of June 30, 2025, the cumulative total revenue expected to be recognized in the consolidated income statement in the future from sales contracts signed before property completion for properties in Hong Kong and Mainland China held by Group subsidiaries for development and sale, as well as sales contracts for completed properties awaiting transfer, amounted to HK$10.39 billion [94] Net Other Income Net other income significantly decreased to HK$305 million from HK$1.035 billion in the prior period, mainly due to lower government land resumption gains (HK$240 million vs. HK$1.059 billion) and a net exchange gain of HK$84 million | Item | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | | :--- | :--- | :--- | | Net Gain on Disposal of Investment Properties | - | 94 | | Net Provision for Inventories | (69) | (25) | | Gain on Land Resumption | 240 | 1,059 | | Net Exchange Gain/(Loss) | 84 | (26) | | Net Other Income | 305 | 1,035 | - The significant decrease in net other income was primarily due to a reduction in land resumption gains from HK$1.059 billion in the prior period to HK$240 million in the current period [95] Decrease in Fair Value of Investment Properties and Investment Properties Under Development The Group recorded a net fair value loss of HK$208 million on investment properties and investment properties under development (after non-controlling interests and deferred tax), a significant reduction from HK$665 million in the prior period, with total attributable net fair value loss of HK$132 million | Item | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | | :--- | :--- | :--- | | Net Fair Value Loss of Subsidiaries (after deferred tax and non-controlling interests) | (208) | (665) | | Attributable Net Fair Value Loss of Associates (after deferred tax) | (107) | (87) | | Attributable Net Fair Value Gain/(Loss) of Joint Ventures (after deferred tax) | 183 | (68) | | Total Attributable Net Fair Value Loss of the Group | (132) | (820) | - Valuation of completed investment properties is primarily based on the income capitalization approach, while investment properties under development are valued on a redevelopment basis [96] Profit Before Tax For H1 2025, finance costs before capitalization were HK$2.833 billion, with capitalized finance costs of HK$1.628 billion, resulting in post-capitalization finance costs of HK$1.205 billion, while staff costs increased by 4% to HK$1.594 billion | Item | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs (before capitalization) | 2,833 | 3,433 | -17.5% | | Less: Amount Capitalized | (1,628) | (2,613) | -37.7% | | Finance Costs (after capitalization) | 1,205 | 820 | +46.95% | | Staff Costs | 1,594 | 1,533 | +4% | | Depreciation and Amortization | 231 | 247 | -6.5% | - Borrowing costs were capitalized at a weighted average annual interest rate ranging from 3.08% to 4.40% (2024: ranging from 3.36% to 6.01%) [100] Income Tax Income tax for H1 2025 was a credit of HK$430 million, compared to an expense of HK$286 million in the prior period, comprising current tax provision of HK$315 million and deferred tax credit of HK$745 million | Item | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | | :--- | :--- | :--- | | Hong Kong Profits Tax Provision | 208 | 271 | | Overseas Tax Provision | 100 | 152 | | Land Appreciation Tax Provision/(Over-provision) | 7 | (29) | | Current Period Tax | 315 | 394 | | Deferred Tax | (745) | (108) | | Income Tax (Credit)/Expense | (430) | 286 | - Hong Kong profits tax provision is calculated at a rate of 16.5% [102] - Properties in Mainland China are subject to Land Appreciation Tax at progressive rates from 30% to 60% on the appreciation amount [102] Earnings Per Share For H1 2025, basic earnings per share were HK$0.60, and underlying earnings per share were HK$0.63, with no dilutive potential ordinary shares, and underlying profit (excluding fair value changes) decreased by 44% to HK$3.048 billion | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Basic Earnings Per Share | HK$0.60 | HK$0.66 | | Underlying Earnings Per Share | HK$0.63 | HK$1.12 | | Underlying Profit Attributable to Shareholders (HK$ million) | 3,048 | 5,441 | - The decrease in underlying profit was primarily due to higher cumulative fair value gains from property sales and government land resumption gains in the prior period [104] Dividends The Board declared an interim dividend of HK$0.50 per share, totaling HK$2.421 billion, consistent with the prior period, which was not recognized as a liability at the period-end | Dividend Type | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | | :--- | :--- | :--- | | Interim Dividend Declared After Period-end (HK$0.50 per share) | 2,421 | 2,421 | | Final Dividend for Previous Financial Year Approved and Paid in Current Interim Period (HK$1.30 per share) | 6,294 | 6,294 | - The interim dividend proposed after the end of the reporting period was not recognized as a liability at the end of the reporting period [106] Segment Reporting The Group manages its businesses across property development, property leasing, department stores, hotel operations, other businesses, and utilities/energy, with significant profit contributions from associates and joint ventures | Segment | 2025 H1 Revenue (HK$ million) | 2025 H1 Segment Results (HK$ million) | | :--- | :--- | :--- | | Property Development | 4,008 | 344 | | Property Leasing | 3,363 | 2,427 | | Department Store Business and Supermarket & Department Store Integrated Business | 745 | 29 | | Hotel Room Operations Business | 156 | 36 | | Other Businesses | 1,280 | (30) | | Uti