2025-09-26 08:30Financial Performance - The company's revenue for the fiscal year ending June 30, 2025, was HKD 27,680.5 million, a decrease of 23% year-on-year[25]. - Core operating profit was HKD 6,016.5 million, down 13% compared to the previous year[28]. - The total assets as of June 30, 2025, amounted to HKD 420,265.0 million, a decrease from HKD 445,157.6 million in the previous year[25]. - The net debt ratio increased to 58.1% from 55.0% year-on-year[25]. - The company reported a loss attributable to shareholders from continuing operations of HKD 16,302 million, primarily due to one-time provisions and losses[28]. - No final dividend was declared for the fiscal year ending June 30, 2025[28]. - The company maintained available funds of approximately HKD 45 billion, including cash and bank balances of about HKD 25.9 billion[28]. - The group achieved property investment revenue of HKD 1,821 million in mainland China, with a segment performance of HKD 843 million, indicating stable overall rental performance[77]. Property Development and Sales - Contract sales from property development and asset sales totaled approximately HKD 26 billion, with HKD 11 billion coming from Hong Kong projects[28]. - In the fiscal year ending June 30, 2025, the company's property development revenue in Hong Kong was HKD 2,696 million, with a segment profit of HKD 877 million, primarily from projects like The Pavilia and others[40]. - The total contract sales in Hong Kong for the fiscal year 2025 amounted to approximately HKD 11 billion, driven by residential projects such as The Pavilia and others[40]. - The "PAVILIA COLLECTION" projects achieved significant sales, with The Pavilia sold approximately 614 units for a total contract sales amount of about HKD 10.5 billion, ranking first among new developments in Hong Kong for 2025[42]. - The project "The Royal" achieved a total contract sales amount of approximately HKD 3.6 billion, with a highest price of HKD 51,000 per square foot, and was oversubscribed by up to 95 times during its launch[43]. - The company continues to focus on high-quality development and brand value enhancement, aiming to create long-term value for society and stakeholders[35]. Market Trends and Outlook - The residential property market in Hong Kong showed signs of recovery, with a 22% year-on-year increase in residential sale agreements, rising from 44,556 to 54,270 contracts[38]. - The total value of residential sale agreements also increased by 14% year-on-year, from approximately HKD 389 billion to HKD 442 billion[38]. - The company is positioned to benefit from the synergy effects of the Greater Bay Area, supporting the government's vision of transforming the area into a modern service center for finance and professional services[59]. - The Chinese real estate market is stabilizing due to favorable government policies, with measures to optimize purchasing conditions and reduce mortgage rates being implemented[66]. Land Reserves and Development Projects - The group holds approximately 7.14 million square feet of land reserves in Hong Kong for immediate development, with about 3.38 million square feet designated for property development[57]. - The company signed a strategic cooperation agreement with China Resources Land Limited in December 2023 to jointly develop the Longtian Village project, with construction expected to start in 2025[58]. - The company plans to increase land reserves by approximately 620,000 square feet over the next 3 to 5 years through planning and land exchange applications[61]. - The total floor area from converted agricultural land is expected to provide approximately 11.9 million square feet, with about 8.7 million square feet designated for medium to short-term projects[61]. Retail and Commercial Performance - K11 MUSEA achieved a rental rate of 96% as of June 30, 2025, with foot traffic increasing by 2% year-on-year, reaching a new high since its opening in 2019[48]. - The "100% DORAEMON & FRIENDS" exhibition at K11 MUSEA set a record for single-day foot traffic and boosted tourist sales by 10%[50]. - K11 Art Mall recorded its highest foot traffic since opening in 2009, maintaining a 100% overall rental rate[51]. - Sales of anime and trendy toy brands at K11 Art Mall grew by over 65% year-on-year, while major sports and fashion brands saw approximately 40% year-on-year growth[54]. Sustainability and Corporate Responsibility - The company aims to create sustainable value through its SV2030+ initiative, focusing on three pillars: "Future-Ready Places," "Corporate Resilience," and "Prosperous Living"[158]. - The company is committed to achieving net-zero emissions across all assets and operations, with a focus on responsible investment principles for new and existing projects[159]. - The company emphasizes transparency in corporate disclosures and aims to lead the industry in key ESG indices and ratings[159]. - The company has set a 2050 net-zero science-based target, verified by the Science Based Targets initiative, using the fiscal year 2023 as the baseline[166]. Leadership and Strategic Initiatives - The company appointed a new CEO, Ms. Huang, who has over 20 years of experience in real estate and will take office in November 2024[119]. - The company is considering strategic acquisitions to enhance its portfolio, targeting companies with complementary technologies[116]. - The company is actively involved in various committees and advisory boards to promote governance and sustainable practices[156]. - The company has conducted detailed climate risk analyses for core projects, including K11 ECOAST and 83 Qionglin Street, to develop targeted climate resilience measures[171].