2025-08-27 08:31Financial Performance - For the fiscal year ending June 30, 2025, the group's underlying profit attributable to shareholders was HKD 51.18 billion, a slight decrease from HKD 51.71 billion in the previous fiscal year[4] - The net profit for the fiscal year, after accounting for a non-cash investment property revaluation loss of HKD 10.84 billion, was HKD 40.19 billion, down from HKD 44.02 billion in the previous year[4] - Total revenue for the year ended June 30, 2025, was HKD 8,183 million, a decrease of 6.6% from HKD 8,765 million in 2024[47] - Gross profit increased to HKD 3,895 million, up 14% from HKD 3,421 million in the previous year[47] - Net profit for the year was HKD 4,001 million, down 5.9% from HKD 4,251 million in 2024[48] - Total comprehensive income for the year was HKD 4,738 million, an increase from HKD 4,238 million in 2024[48] - The basic earnings per share decreased to HKD 0.45 from HKD 0.52, representing a decline of 13.5%[47] - The total equity attributable to shareholders rose to HKD 169,397 million from HKD 165,790 million, an increase of 3.3%[50] Property Sales and Development - The group achieved total property sales revenue of HKD 10.81 billion, an increase from HKD 8.89 billion in the previous fiscal year[7] - The group sold 74.9% of remaining units at St. George's Mansions and 96.5% at the Yang Hai project, indicating strong sales performance[7] - The group has several new projects planned for sale, including developments in Yau Tong and Yuen Long, with pre-sale consent expected for the Tsim Sha Tsui project in 2025[8] - As of June 30, 2025, the group held land reserves totaling approximately 18.9 million square feet, with a balanced property type distribution: 48.8% commercial, 26.2% residential, and 10.5% industrial[9] - The group acquired a residential site in Tuen Mun with a floor area of 282,103 square feet, enhancing its land bank[10] - The group obtained occupation permits for several projects, including 291,710 square feet at the Pak Long I and II developments[11] Rental Income and Occupancy - Total rental income for the fiscal year was HKD 3.486 billion, a year-on-year decrease of 1.8% due to challenges in the retail sector and declining office property occupancy rates[14] - Net rental income decreased by 4.4% to HKD 2.782 billion, impacted by the end of government fee waivers and new property tax payments[14] - Overall occupancy rate for the investment property portfolio was 89.6%, down 1.2 percentage points year-on-year[14] - Residential property occupancy increased by 3.9 percentage points to 90.7%, while office property occupancy decreased by 2.6 percentage points to 83.9%[15] Cash and Financial Position - Cash and bank deposits at the subsidiary level amounted to HKD 51.26 billion, with total borrowings of HKD 1.799 billion as of June 30, 2025[22] - As of June 30, the company has net cash of HKD 49.46 billion and total assets valued at HKD 183.61 billion, with total equity of HKD 169.39 billion[23] - The book value per share attributable to shareholders is HKD 18.51 as of June 30, 2025, down from HKD 19.17 as of June 30, 2024[23] - The company maintains a prudent financial management policy, keeping foreign exchange risk at a low level[24] Sustainability and Community Engagement - The company has received over 180 awards in the fiscal year, including recognition as one of the world's most sustainable companies by TIME magazine and Statista[30] - The company has been included in the FTSE4Good Index series and achieved an "AA" rating in the MSCI ESG ratings[29] - The company launched the "Supplier Climate Partner Program," with approximately 50 suppliers participating, over half of whom have signed the carbon management charter[32] - The company has received certification for its science-based long-term reduction targets from the Science Based Targets initiative (SBTi)[32] - The company has completed beach clean-up and educational activities, engaging nearly 500 visitors and students in its "Know Your Water Mouth" initiative[32] - The company has hosted over 3,200 local and international visitors at the "Coral Revival Center," with nearly 450 rescued coral fragments transplanted to enhance marine biodiversity[33] - The group is committed to sustainable development, with a focus on green building planning and carbon reduction measures[41] Market Outlook and Strategic Initiatives - The group remains cautiously optimistic about the Hong Kong real estate market, supported by a decline in HIBOR from 5.63% in December 2023 to an average of 1% by July 2025[38] - The group is actively responding to changing market dynamics and consumer patterns, focusing on cost management amid ongoing inflationary pressures[19] - The group plans to continue selectively adding to its land reserves to enhance profitability potential[9] - The group plans to enhance hotel service quality and operational efficiency to ensure a pleasant guest experience[19] - The group anticipates a surplus in commercial property supply due to weak demand for office spaces, leading the government to suspend the sale of commercial land[40] Corporate Governance - The company has adopted its own corporate governance code based on the principles and code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules[75] - The roles of the Chairman and CEO are currently combined, with the Chairman also serving as the CEO, which the board believes has facilitated operational and business development[75] - The board regularly reviews the management structure to ensure it aligns with objectives and industry norms[75] - The audited consolidated financial statements for the year ending June 30, 2025, have been reviewed by the company's audit committee[77] - The annual report for 2025, containing all required information as per the Listing Rules, will be published on the Hong Kong Stock Exchange and the company's website around September 26, 2025[78]