新鸿基地产(00016) - 2025 - 年度业绩

Chairman's Report Performance The group's underlying profit attributable to shareholders slightly increased to HK$21.855 billion, with reported profit also up despite a fair value decrease in investment properties Key Performance Indicators | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | Change | | :--- | :--- | :--- | :--- | | Underlying Profit Attributable to Shareholders | 21,855 | 21,739 | Increase 116 | | Basic Underlying EPS | $7.54 | $7.50 | Increase $0.04 | | Reported Profit Attributable to Shareholders | 19,277 | 19,046 | Increase 231 | | Reported EPS | $6.65 | $6.57 | Increase $0.08 | | Decrease in Fair Value of Investment Properties (net of deferred tax and non-controlling interests) | 742 | 2,412 | Decrease 1,670 | Dividends The Board proposed a final dividend of HK$2.80 per share, maintaining the full-year dividend at HK$3.75 per share for the year ended June 30, 2025 Dividend Details | Dividend Type | Amount Per Share (HK$) | Payment Date | | :--- | :--- | :--- | | Final Dividend (2025) | $2.80 | November 20, 2025 | | Interim Dividend | $0.95 | (Already Paid) | | Total Annual Dividend | $3.75 | | Property Development Profit and Rental Income Profit from property sales increased to HK$8.29 billion, with total contract sales attributable to the group's interest at approximately HK$46.6 billion, while total rental income decreased by 2% Property Business Financials | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | Change | | :--- | :--- | :--- | :--- | | Property Sales Profit | 8,290 | 7,850 | Increase 440 | | Total Contract Sales | 46,600 | (Not Provided) | | | Total Rental Income | 24,461 | (Not Provided) | Decrease 2% | | Net Rental Income | 18,392 | (Not Provided) | Decrease 3% | Hong Kong Property Business The group expanded its Hong Kong land bank by acquiring five residential sites, achieved HK$42.3 billion in contract sales, and managed rental properties amidst economic uncertainties Land Bank (Hong Kong) The group acquired five new residential sites with a total attributable gross floor area of approximately 1.6 million sq ft, bringing its Hong Kong land bank to 57.4 million sq ft - Five new residential sites added, with a total gross floor area of approximately 1.6 million sq ft[6] New Residential Land Acquisitions | Location | Property Use | Group's Interest (%) | Attributable Gross Floor Area (sq ft) | | :--- | :--- | :--- | :--- | | Hung Shui Kiu Town Lot No. 5 | Residential/Retail | 50 | 524,000 | | Tung Chung Town Lot No. 55 | Residential | 100 | 401,000 | | Fanling North Fanling/Sheung Shui Town Lot No. 307 | Residential/Retail | 100 | 308,000 | | Tai Wai Sha Tin Town Lot No. 651 | Residential | 100 | 194,000 | | Siu Lek Yuen Sha Tin Town Lot No. 623 | Residential | 100 | 157,000 | | Total | | | 1,584,000 | - As of June 30, 2025, Hong Kong land bank was approximately 57.4 million sq ft, with 13.3 million sq ft for residential development, sufficient for 6-7 years of development[7] - Government resumption of land in Hung Shui Kiu/Ha Tsuen New Development Area is expected to generate approximately HK$3 billion in cash compensation, recognized in FY2024/25[8] Property Development (Hong Kong) Hong Kong's residential market stabilized, leading to HK$42.3 billion in contract sales, the highest in five years, with HK$35.6 billion in unbooked sales - Hong Kong's residential market stabilized, driven by relaxed mortgage restrictions, falling local mortgage rates, and continuous inflow of talent and students[9] - Hong Kong contract sales reached approximately HK$42.3 billion, the highest in the past five financial years, primarily from projects like Grand Mayfair Phase 1, Pak Shek Kok Development Phase 1A(2) and 1B Sierra Sea[10] Completed Development Projects (Hong Kong) | Project | Location | Property Use | Group's Interest (%) | Attributable Gross Floor Area (sq ft) | | :--- | :--- | :--- | :--- | :--- | | YOHO WEST Phase 1 | Tin Shui Wai | Residential/Retail | Joint Development | 748,000 | | NOVO LAND Phase 3A and 3B | Tuen Mun | Residential | 100 | 694,000 | | Pak Shek Kok GO PARK | Pak Shek Kok | Retail | 100 | 108,000 | | The Horizon Phase 2 | Castle Peak Road - Tai Lam | Residential | 59.1 | 104,000 | | Total | | | | 1,654,000 | - As of June 30, 2025, unbooked Hong Kong contract sales were approximately HK$35.6 billion, with about HK$30.1 billion expected to be recognized in FY2025/26[11] Property Investment (Hong Kong) Hong Kong rental income slightly declined by 2% to HK$17.531 billion, but overall occupancy remained satisfactory, with new retail concepts and office market consolidation - Hong Kong rental business total rental income slightly decreased by 2% year-on-year to HK$17.531 billion, with overall occupancy maintained at a satisfactory level[12] - The retail property portfolio recorded an occupancy rate of approximately 95%, with a significant narrowing of tenant sales decline in the first half of 2025[13] - Pak Shek Kok GO PARK, Hong Kong's first sports-themed commercial complex, has attracted over 2 million visitors since its opening in early 2025[14] - The Point mall membership program has over 3 million members, with the launch of "The Point Gold" VIP membership to enhance customer loyalty[15] - Hong Kong's Grade A office market maintained an average occupancy rate of approximately 90%, with downward adjustments in renewal rents, though landmark projects IFC and ICC achieved about 92% occupancy[17][18] - Over the next two to three years, new malls like Kwun Tong Scramble Hill will open in phases from H2 2025, and Kai Tak Grand Mayfair Mall is planned to open in phases from Q4 2025[19][20] - The group is committed to developing West Kowloon into another core business district outside Central, with pre-leasing underway for the High Speed Rail West Kowloon Station Development Project office tower IGC, scheduled for tenant handover in early 2026[21][22] Mainland China Property Business As of June 30, 2025, the group's Mainland land bank was approximately 65.3 million sq ft, with RMB4 billion in contract sales, and rental income slightly decreased Land Bank (Mainland China) As of June 30, 2025, the group's Mainland land bank totaled approximately 65.3 million sq ft, with 44.2 million sq ft under development - As of June 30, 2025, Mainland land bank was approximately 65.3 million sq ft, with 44.2 million sq ft under development[23] Property Development (Mainland China) The Mainland residential market benefited from supportive policies, leading to approximately RMB4 billion in contract sales and RMB8.1 billion in unbooked sales - The Mainland residential market was supported by positive policies such as reduced loan prime rates, lower reserve requirement ratios, and relaxed home purchase restrictions[24] - Mainland contract sales were approximately RMB4 billion, primarily from the joint development project Suzhou Lakeside Seasons Phase 2, and new residential units at Guangzhou Royal Park and The Cullinan[24] Completed Development Projects (Mainland China) | Project | Location | Property Use | Group's Interest (%) | Attributable Gross Floor Area (sq ft) | | :--- | :--- | :--- | :--- | :--- | | Royal Park Phase 3A | Huadu District, Guangzhou | Residential | 100 | 477,000 | | Arch Central Phase 3 | Lujiazui, Shanghai | Residential | 100 | 465,000 | | The Cullinan Phase 1A and 1B | Panyu District, Guangzhou | Residential | 100 | 347,000 | | The Paragon Phase 6B | Chancheng District, Foshan | Residential | 50 | 245,000 | | Total | | | | 1,534,000 | - As of June 30, 2025, unbooked Mainland contract sales reached RMB8.1 billion, with most expected to be recognized in FY2025/26[25] Property Investment (Mainland China) Mainland rental property portfolio's total rental income decreased by 2% to RMB5.713 billion, but key malls maintained competitiveness and high occupancy rates - Mainland rental property portfolio's total rental income decreased by 2% year-on-year to RMB5.713 billion[26] - Shanghai IFC Mall actively adapts to market trends by offering premium services, art installations, and diverse events to create immersive experiences[27] - Guangzhou Parc Central and IGC malls leverage outdoor spaces and expand the pet economy, while Nanjing IFC Mall's occupancy has risen since its July 2024 opening, contributing new revenue[28] - The Mainland office market faces challenges, but the group's ITC Phase 3 Tower A achieved an occupancy rate of nearly 80%, contributing to recurring income[29] - The remaining parts of the large-scale Shanghai ITC Phase 3 project (Tower B office building, flagship mall ITC Maison, and Andaz Shanghai Xujiahui) are expected to be completed by the end of 2025[30] Other Businesses The group's diverse businesses, including hotels, telecommunications, and infrastructure, showed stable performance and strategic growth Hotels Hong Kong hotel business performed satisfactorily due to increased tourism and events, with Mainland hotels also growing steadily and new openings planned - Hong Kong hotel business benefited from increased overseas and Mainland visitors, major events, and the "concert economy," leading to continuous improvement in room revenue and high occupancy rates[32] - Driven by expanded visa-free policies in Mainland China, international visitor numbers increased, and The Ritz-Carlton Shanghai, Pudong maintained high occupancy[33] - The Andaz Shanghai Xujiahui, part of the ITC Phase 3 integrated project, is expected to open by the end of 2025[33] Telecommunications and Information Technology SmarTone maintained stable performance with improved profitability and network quality, while SUNeVision's data center business saw strong growth with new facilities - SmarTone maintained stable performance with further improved profitability, offering the highest per-customer available spectrum resources in Hong Kong[34] - SmarTone launched new services, including high-speed 5G home broadband supporting WiFi 7, and uses AI to test network blind spots[34] - SUNeVision's business showed strong growth, with robust demand for data center services, and MEGA IDC Phase 1 in Tseung Kwan O commenced operations in Q2 2024[36] Infrastructure and Other Businesses The group's infrastructure and transport businesses remained resilient, with stable performance in parking and aviation, and YATA focusing on supermarket operations - The group's infrastructure and transport businesses continued to perform resiliently, with Wilson Group's car park and tunnel management businesses recording stable results[38] - Hong Kong Business Aviation Centre's business performance was stable, with flight movements nearing pre-pandemic levels, and major terminal upgrade works nearing completion[38] - YATA has adjusted its operating model to focus on its more stable supermarket business, optimizing product mix and introducing new specialty products[39] Group Financials The group maintained a robust financial position with a net debt-to-equity ratio of 15.1% and interest coverage of 6 times, showing improvement from the previous year - The group's financial position remained robust, with a net debt-to-equity ratio of 15.1% and interest coverage of 6 times, indicating improved financial ratios year-on-year[40] - The group's A1 rating was affirmed by Moody's with an upgraded outlook to stable, while S&P maintained its A+ rating (outlook negative)[40] - The group successfully secured sufficient RMB financing, including a RMB700 million three-year offshore RMB bond and a second batch of RMB2 billion commercial mortgage-backed securities, to lower borrowing costs and balance RMB assets and liabilities[40] - The group does not engage in speculative derivative or structured product trading, with all USD borrowings hedged via cross-currency swaps, and RMB debt naturally hedged by Mainland assets[41] Corporate Governance The group upholds high corporate governance standards with an 18-member board, including seven independent non-executive directors, ensuring diverse experience and independent oversight - The Board comprises 18 members, including 7 Independent Non-Executive Directors, whose diverse experience, expertise, and backgrounds meet the group's strategic, governance, and business needs[42] - The Board delegates specific roles to four committees: Executive Committee, Remuneration Committee, Nomination Committee, and Audit and Risk Management Committee, each with clearly defined terms of reference[43] - The group received multiple major awards from leading financial publications during the year, including being named "Overall Best Developer" in Hong Kong, China, Asia Pacific, and globally by Euromoney[43] Sustainability The group achieved an improved MSCI ESG rating of AA, focusing on sustainable building practices, renewable energy, and active community engagement - The group's MSCI ESG rating was upgraded to AA, and it received recognition from several major global indices, including inclusion in the Dow Jones Sustainability Asia Pacific Index and S&P Global Sustainability Yearbook 2025 (and its China edition)[44] Environment The group prioritizes sustainable construction, aiming for LEED Gold or Platinum certification for new core commercial projects, and has installed approximately 20,000 solar panels - The group places high importance on sustainable construction, aiming for LEED Gold or Platinum certification for all new core commercial projects, and has obtained approximately 150 green building certifications in Hong Kong as of end-June 2025[45] - International Commerce Centre became the first building in Asia to receive LEED v5.0 Existing Buildings: Operations & Maintenance Platinum certification[45] - The group has installed approximately 20,000 solar panels across its managed properties and construction sites, forming Hong Kong's largest solar power network, and is building the city's first private solar farm on a landfill with a joint venture partner[45] - To promote low-carbon transportation, the group has installed nearly 100 EV fast-charging devices across all 18 districts in Hong Kong and plans to further expand its network[46] Society The group actively fulfills its corporate social responsibility by providing free venues for community services, promoting youth education, and advocating for sports and cultural exchange - The group provides free venues for operating the "Ko Shan Road Community Living Room," offering facilities and services to families living in subdivided units[47] - The group continues to promote reading and STEM education among youth through the "Reading Club" and organizes aerospace-themed activities[47] - Pak Shek Kok GO PARK, the group's unique sports-themed commercial complex, offers international standard professional facilities for over ten popular and emerging sports, and has hosted over 160 sports events[48] - Ma Wan Park Phase 2 "Ma Wan 1868" officially opened, integrating conservation, nature, art, culture, and leisure, and supports young entrepreneurs with rent-free shops through the "Co-create Entrepreneur 2.0" program[49] Outlook Despite global economic volatility, the group anticipates economic growth driven by accommodative monetary policies and AI, with confidence in Hong Kong and Mainland China's long-term prospects - The global economic environment is expected to remain volatile and uncertain, but accommodative monetary policies in major economies and rising expectations of US interest rate cuts are conducive to economic growth[50] - Mainland China's economy shows good performance in key indicators and is expected to maintain stable and positive development, with proactive fiscal and moderately loose monetary policies fostering a favorable business environment[50] - Hong Kong's economy is in a transition phase, with an active financial market and improving tourism expected to drive moderate growth in the short term, and buyer confidence and residential transaction volumes anticipated to improve[51] - The group is committed to enhancing asset turnover in its property development business to maintain strong cash flow, while preserving substantial recurring income through a diversified portfolio of rental properties and non-property businesses[52] - Over the next ten months, the group plans to launch existing units of Grand Mayfair Phase 2 and Grand Mayfair Sea Phase 2 in Kai Tak, and major residential projects like Pak Shek Kok Development Phase 2A and 2B in Hong Kong[53] - Over the next two to three years, newly completed investment properties in Hong Kong and Mainland China, including the new Kwun Tong mall Scramble Hill and Kai Tak Grand Mayfair Mall, will progressively contribute to the group's recurring income[55] Acknowledgements The Chairman extends sincere gratitude to all employees for their resilience in a dynamic market, the Board for their guidance, and shareholders and customers for their enduring trust and support - The Chairman thanks all employees for their dedication and tireless efforts, the Board members for their wise guidance, and shareholders and customers for their enduring trust and support for the group[57] Notices Consolidated Income Statement For the year ended June 30, 2025, the group's revenue increased to HK$79.721 billion, with operating profit at HK$26.078 billion, and profit attributable to shareholders at HK$19.277 billion Consolidated Income Statement Summary | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Revenue | 79,721 | 71,506 | | Operating Profit | 26,078 | 26,752 | | Change in Fair Value of Investment Properties | (2,730) | (1,481) | | Net Finance Costs | (2,485) | (3,567) | | Profit Before Tax | 24,753 | 23,583 | | Profit for the Year | 19,884 | 19,605 | | Profit Attributable to Company Shareholders | 19,277 | 19,046 | | Basic Underlying EPS | $7.54 | $7.50 | | Reported EPS | $6.65 | $6.57 | Consolidated Statement of Comprehensive Income For the year ended June 30, 2025, the group's total comprehensive income significantly increased to HK$22.519 billion, primarily due to a reversal from loss to gain in exchange differences from Mainland subsidiaries Consolidated Statement of Comprehensive Income Summary | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Profit for the Year | 19,884 | 19,605 | | Exchange Differences on Translation of Mainland Subsidiaries' Accounts | 1,810 | (355) | | Other Comprehensive Income/(Loss) for the Year | 2,635 | (944) | | Total Comprehensive Income for the Year | 22,519 | 18,661 | | Total Comprehensive Income Attributable to Company Shareholders | 21,889 | 18,089 | Consolidated Statement of Financial Position As of June 30, 2025, the group's total non-current assets were HK$581.181 billion, with total equity attributable to shareholders at HK$617.851 billion Consolidated Statement of Financial Position Summary | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Non-Current Assets | 581,181 | 569,431 | | Current Assets | 235,712 | 248,663 | | Current Liabilities | (70,092) | (62,012) | | Net Assets | 622,374 | 611,071 | | Equity Attributable to Shareholders | 617,851 | 606,717 | | Bank Balances and Cash | 16,919 | 16,221 | Notes to the Consolidated Financial Statements This section details the basis of preparation, segment information, other net income, net finance costs, taxation, earnings per share, dividends, investment property valuation, and trade receivables/payables Basis of Preparation The consolidated financial statements are prepared under HKFRS and the Companies Ordinance, primarily using historical cost, with no significant impact from new accounting standards - The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants, and the disclosure requirements of the Hong Kong Companies Ordinance (Cap. 622) and the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[63] - Except for investment properties and certain financial instruments measured at fair value, these consolidated financial statements are prepared on a historical cost basis[63] - During the year, the group adopted several amendments to Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants, with no significant impact on the group's financial statements[64] Segment Information The group operates across property development, investment, hotels, telecom, infrastructure, data centers, and other businesses, with Hong Kong contributing 83% of total revenue Segment Revenue and Results | Segment | 2025 Revenue (HK$ million) | 2025 Results (HK$ million) | 2024 Revenue (HK$ million) | 2024 Results (HK$ million) | | :--- | :--- | :--- | :--- | :--- | | Property Development | 33,880 | 8,007 | 25,106 | 6,563 | | Property Leasing | 19,855 | 14,892 | 20,366 | 15,504 | | Hotel Operations | 4,416 | 486 | 4,421 | 521 | | Telecommunications | 6,253 | 752 | 6,221 | 701 | | Transport Infrastructure and Logistics | 4,441 | 1,188 | 4,571 | 1,294 | | Data Centre Operations | 2,938 | 1,489 | 2,674 | 1,266 | | Other Businesses | 7,938 | 959 | 8,147 | 1,125 | | Total Segments | 79,721 | 27,773 | 71,506 | 26,974 | Geographical Revenue Breakdown | Region | 2025 Revenue (HK$ million) | 2024 Revenue (HK$ million) | | :--- | :--- | :--- | | Hong Kong | 66,165 | 65,267 | | Mainland China | 13,495 | 6,187 | | Other | 61 | 52 | | Total | 79,721 | 71,506 | Other Net Income Other net income was HK$288 million, including HK$1.137 billion from land resumption and HK$390 million from investment property sales, partially offset by HK$1.384 billion in impairment provisions Other Net Income Components | Item | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Gain on Land Resumption | 1,137 | 1,095 | | Profit on Disposal of Investment Properties | 390 | 343 | | Impairment Provision for Development Properties | (1,384) | - | | Others | 145 | 328 | | Total | 288 | 1,766 | - The impairment provision for development properties was primarily attributable to the Grand Mayfair residential project[71] Net Finance Costs Net finance costs significantly decreased to HK$2.485 billion from HK$3.567 billion last year, mainly due to reduced interest expenses on bank and other borrowings Net Finance Costs Breakdown | Item | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Interest and Other Finance Expenses on Bank and Other Borrowings | 4,604 | 6,090 | | Less: Amount Capitalized | (1,895) | (2,199) | | Interest Income from Bank Deposits | (371) | (479) | | Net Finance Costs | 2,485 | 3,567 | Profit Before Tax Profit before tax was HK$24.753 billion, with key deductions including property sales costs and employee expenses, and income from investments Profit Before Tax Components | Item | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Cost of Properties Sold | 22,612 | 16,480 | | Employee Expenses (including directors' emoluments and retirement scheme contributions) | 10,559 | 10,605 | | Depreciation of Property, Plant and Equipment | 3,105 | 3,088 | | Dividend Income from Investments | 67 | 75 | | Interest Income from Investments | 32 | 69 | Taxation Total income tax expense was HK$4.869 billion, comprising HK$2.423 billion in Hong Kong profits tax and HK$3.372 billion in overseas taxes, with a deferred tax credit of HK$926 million Taxation Breakdown | Item | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Hong Kong Profits Tax | 2,439 | 2,549 | | (Overprovision)/Underprovision in Prior Years | (16) | 14 | | Taxation Outside Hong Kong | 3,372 | 1,336 | | Deferred Tax (Credit)/Expense | (926) | 79 | | Total Income Tax Expense | 4,869 | 3,978 | Earnings Per Share Reported basic and diluted earnings per share was HK$6.65, while underlying earnings per share was HK$7.54, excluding fair value changes of investment properties Earnings Per Share Metrics | Indicator | 2025 (HK$) | 2024 (HK$) | | :--- | :--- | :--- | | Reported EPS (Basic and Diluted) | $6.65 | $6.57 | | Underlying EPS (Basic and Diluted) | $7.54 | $7.50 | - Basic and diluted earnings per share are the same as there were no dilutive potential ordinary shares during the year[74] Dividends (Notes) The Board proposed a final dividend of HK$2.80 per share, bringing the full-year dividend to HK$3.75 per share, consistent with the prior year Dividend Declaration Details | Dividend Type | Amount Per Share (HK$) | Total Amount (HK$ million) | | :--- | :--- | :--- | | Interim Dividend Declared and Paid | $0.95 | 2,753 | | Proposed Final Dividend | $2.80 | 8,114 | | Total Annual Dividend | $3.75 | 10,867 | Investment Properties (Notes) As of June 30, 2025, total investment properties were valued at HK$417.045 billion, with a fair value decrease of HK$2.730 billion for the year Investment Property Values | Item | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Completed Investment Properties | 351,394 | 349,214 | | Investment Properties Under Development | 65,651 | 59,210 | | Total Investment Properties | 417,045 | 408,424 | | Decrease in Fair Value | (2,730) | (1,481) | - The group's investment properties were revalued at market value as of June 30, 2025, and June 30, 2024, by Knight Frank Petty Limited (an independent qualified surveyor)[79] - Completed investment properties are valued using the income capitalization approach, while investment properties under development are valued using the residual method[79] Trade and Other Receivables Trade receivables totaled HK$3.252 billion, with 59% less than 30 days old and 18% over 90 days - Trade receivables amounted to HK$3.252 billion (2024: HK$3.645 billion), with an aging analysis showing 59% less than 30 days, 13% between 31 and 60 days, 10% between 61 and 90 days, and 18% over 90 days[81] Trade and Other Payables Trade payables totaled HK$2.476 billion, with 59% less than 30 days old and 31% over 90 days - Trade payables amounted to HK$2.476 billion (2024: HK$3.07 billion), with an aging analysis showing 59% less than 30 days, 7% between 31 and 60 days, 3% between 61 and 90 days, and 31% over 90 days[82] Financial Review Review of 2024/25 Results Underlying profit attributable to shareholders increased by HK$116 million to HK$21.855 billion, driven by higher property development and investment property sales profit and reduced finance costs, with total revenue up 8% Key Financial and Operational Metrics | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | Change | | :--- | :--- | :--- | :--- | | Underlying Profit Attributable to Shareholders | 21,855 | 21,739 | Increase 116 | | Reported Profit Attributable to Shareholders | 19,277 | 19,046 | Increase 231 | | Total Revenue (including joint ventures and associates) | 90,119 | 83,636 | Increase 8% | | Property Development Revenue (including joint ventures and associates) | 34,556 | 27,422 | Increase 26% | | Overall Rental Income (including joint ventures and associates) | 24,461 | 24,991 | Decrease 2% | | Property Development Profit (including joint ventures and associates) | 8,290 | 7,850 | Increase 6% | | Recurring Profit | 23,898 | 24,509 | Decrease | | Net Rental Income | 18,392 | 19,000 | Decrease | - Hong Kong property development profit decreased by 51% to HK$3.2 billion, primarily due to a decline in gross profit margin to 12%[86] - Mainland China property development revenue increased by 214% to HK$8.417 billion, with profit increasing by 281% to HK$5.09 billion, mainly from higher profits on the sale of Arch Central Phase 3 residential units[87] - As of June 30, 2025, the group's unrecognised contract sales revenue from properties (including investment properties and attributable share of joint ventures) amounted to HK$44.4 billion[87] - Hong Kong property investment rental income decreased by 2% to HK$17.531 billion, with net rental income decreasing by 3% to HK$12.956 billion; residential and serviced apartment property portfolio rental income increased by 12% year-on-year[88] - Mainland China investment property portfolio rental income, in HKD terms, decreased by 2% to HK$6.173 billion, with net rental income decreasing by 3% to HK$4.864 billion[89] - The hotel segment recorded stable revenue of HK$5.25 billion, with improved room revenue and high occupancy rates, averaging 90%[89] - SmarTone's operating profit increased by 7% to HK$752 million, mainly from a one-off gain on the disposal of its Macau business and reduced service costs and operating expenses through cost control and efficiency measures[90] - SUNeVision's revenue increased by 10% to HK$2.938 billion, with operating profit increasing by 18% to HK$1.489 billion, primarily due to new customers moving into newly completed data centers, enhancing utilization[90] - The group (including its share of joint ventures and associates) recorded a net decrease in fair value of investment properties of HK$1.557 billion, with Hong Kong decreasing by HK$1.105 billion, Mainland China by HK$1.232 billion, and Singapore increasing by HK$780 million[92] - The group's net finance costs before capitalization decreased by 24% to HK$4.38 billion, with the average cost of debt falling to 3.7%; interest coverage ratio was 6 times[93] Financial Management The group adopts a proactive and prudent financial management approach, maintaining a robust balance sheet and diversified funding sources Gearing Ratio As of June 30, 2025, net debt decreased by 16% to HK$93.298 billion, resulting in a gearing ratio of 15.1%, reflecting improved financial health Gearing Ratio and Debt Profile | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | Change | | :--- | :--- | :--- | :--- | | Total Shareholders' Equity | 617,851 | 606,717 | Increase 11,134 | | Net Debt | 93,298 | 110,866 | Decrease 17,568 (16%) | | Gearing Ratio | 15.1% | 18.3% | Improvement | - The group's total debt amounted to HK$110.217 billion, with 63% from bank borrowings and 37% from notes and bonds[98] - The group's debt maturity profile remains healthy, with approximately 70% of debt repayable in over two years, and the weighted average repayment period for the total debt portfolio is 3.1 years[98] Financial Resources The group's strong financial strength enables it to raise long-term funds at competitive rates and maintain ample unutilized committed bank facilities with a balanced maturity structure - The group's strong financial strength enables it to raise long-term funds at competitive rates through various channels[101] - The group consistently ensures ample unutilized committed bank facilities, mostly arranged on a medium-to-long-term basis with a balanced maturity structure, which helps reduce refinancing risk and enhance financing flexibility[101] Foreign Exchange Risk Management The group has minimal foreign exchange risk due to its HKD-denominated asset base, with Mainland net investments naturally hedged by RMB borrowings, and uses derivatives for risk management - The group has minimal foreign exchange risk due to its substantial HKD-denominated asset base and business cash flows[102] - The group does not use foreign currency derivatives to hedge the translation risk of its Mainland investments and maintains adequate RMB financial resources to meet funding needs[102] - The appreciation of RMB against HKD by approximately 2.3% resulted in an exchange gain of approximately HK$2.4 billion when these RMB assets were translated into HKD at the June 30, 2025 exchange rate[102] - The group entered into interest rate swap agreements, cross-currency interest rate swap agreements, and foreign exchange forward contracts with a total notional principal of HK$16.389 billion to manage interest rate and foreign exchange risks, without engaging in speculative derivative or structured product trading[103] Bank Balances and Cash As of June 30, 2025, bank balances and cash totaled HK$16.919 billion, with 61% in HKD and 28% in RMB, all held with high-credit-rated banks - As of June 30, 2025, the group's bank balances and cash amounted to HK$16.919 billion, with 61% in HKD and 28% in RMB[104] - All deposits are held with high-credit-rated banks, with appropriate credit limits set based on their credit ratings, and risks of financial counterparties are regularly monitored[104] Pledged Assets Group subsidiaries pledged HK$45 million in bank deposits as security for bank guarantees and HK$17.492 billion in other assets as security for bank borrowings - Group subsidiaries pledged bank deposits totaling HK$45 million as security for bank guarantees[105] - Group subsidiaries pledged certain assets with a total book value of HK$17.492 billion as security for bank borrowings[105] Contingent Liabilities As of June 30, 2025, the group's contingent liabilities totaled HK$1.955 billion, primarily comprising guarantees for joint venture borrowings and other guarantees - As of June 30, 2025, the group's contingent liabilities amounted to HK$1.955 billion, primarily related to guarantees for bank borrowings granted to joint ventures and other guarantees[106] Other Corporate Information Group Remuneration Policy and Long-Term Incentive Schemes The group employs over 38,000 staff with total remuneration of approximately HK$15.122 billion, based on market levels, individual performance, and comprehensive benefits - As of June 30, 2025, the group employed over 38,000 staff, with total employee remuneration before reimbursement of expenses amounting to approximately HK$15.122 billion for the year[107] - The group's remuneration policy is determined based on market levels, individual employee performance, and contributions, with widespread use of performance-based bonuses[107] Criteria for Determining Directors' Remuneration Directors' remuneration is determined by market benchmarks, individual capabilities and contributions, and the company's affordability, with appropriate benefits for executive directors - In determining the remuneration level for each director, the company considers market benchmarks, individual capabilities and contributions, and the company's affordability[108] Dividends (Company Announcement) The Board proposed a final dividend of HK$2.80 per share, maintaining the full-year dividend at HK$3.75 per share, payable on November 20, 2025 - The Board of Directors proposed a final dividend of HK$2.80 per share for the year ended June 30, 2025, which, together with the interim dividend of HK$0.95 per share paid on March 20, 2025, brings the total annual dividend for the year ended June 30, 2025, to HK$3.75 per share, the same as last year[109] - If the proposed final dividend is approved at the upcoming Annual General Meeting, it will be paid in cash on Thursday, November 20, 2025, to shareholders whose names appear on the company's register of members on Wednesday, November 12, 2025[109] Annual General Meeting The 2025 Annual General Meeting will be held on November 6, 2025, with the relevant notice to be sent to shareholders in due course - The 2025 Annual General Meeting will be held on Thursday, November 6, 2025[110] Closure of Register of Members The company's register of members will be closed from November 3 to November 6, 2025, to determine eligibility for the AGM, and on November 12, 2025, for final dividend entitlement - To ascertain eligibility to attend and vote at the 2025 Annual General Meeting, the company's register of members will be closed from Monday, November 3, 2025, to Thursday, November 6, 2025 (both dates inclusive)[114] - To ascertain entitlement to the proposed final dividend, the company's register of members will be closed on Wednesday, November 12, 2025[114] Purchase, Sale or Redemption of Listed Securities Neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during the year ended June 30, 2025 - During the year ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[112] Audit and Risk Management Committee The annual results for the year ended June 30, 2025, were reviewed by the Audit and Risk Management Committee, and the consolidated financial statements were audited with an unmodified opinion - The annual results for the year ended June 30, 2025, have been reviewed by the company's Audit and Risk Management Committee, and the group's consolidated financial statements have been audited by the company's auditor, Deloitte Touche Tohmatsu, who issued an unmodified opinion[113] Compliance with Corporate Governance Code The company complied with the Corporate Governance Code, with the exception of combining Chairman and CEO roles, which the board deems balanced due to independent oversight - During the year ended June 30, 2025, the company complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules, except that the company did not separate the roles of Chairman and Chief Executive Officer as required by code provision C.2.1[115] - The Board includes two Non-Executive Directors and seven Independent Non-Executive Directors, who provide diverse experience, expertise, independent advice, and perspectives, thus the Board believes that the power distribution is balanced and adequately safeguarded[115] Annual Report The 2024-2025 Annual Report, containing all financial and other relevant information, will be published by the end of October 2025 on HKEX and company websites and sent to shareholders - The 2024-2025 Annual Report, containing all financial and other relevant information as required by the Listing Rules, will be published by the end of October 2025 on the website of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and the company's website (www.shkp.com), and sent to shareholders[116]