2026-02-26 08:30Financial Performance - The company's attributable profit for the six months ended December 31, 2025, was HKD 12.213 billion, an increase from HKD 10.463 billion in the same period last year, with basic earnings per share rising to HKD 4.21 from HKD 3.61[2] - Total revenue for the six months ended December 31, 2025, was HKD 52,705 million, an increase of 32% compared to HKD 39,933 million for the same period last year[68] - Operating profit rose to HKD 13,398 million, up 10.7% from HKD 12,098 million year-on-year[68] - Net profit for the period was HKD 10,585 million, representing a 35% increase from HKD 7,841 million in the previous year[69] - Earnings per share attributable to shareholders increased to HKD 3.54, up from HKD 2.60, marking a 36% rise[68] - The company reported a total comprehensive income of HKD 12,317 million, significantly higher than HKD 6,749 million in the previous year[69] - The fair value change of investment properties resulted in a loss of HKD 1,307 million, compared to a loss of HKD 2,875 million in the previous year[68] - Total assets decreased to HKD 741,024 million from HKD 746,801 million, reflecting a slight decline in asset value[70] - Cash and cash equivalents increased to HKD 19,529 million, up from HKD 16,919 million, indicating improved liquidity[70] - The group's net asset value rose to HKD 626,409 million, compared to HKD 622,374 million, showing a modest growth[70] Dividends and Shareholder Returns - The interim dividend declared is HKD 0.98 per share, representing a 3% increase compared to the same period last year[3] - The interim dividend declared was HKD 0.98 per share, an increase from HKD 0.95 per share in the previous year, totaling HKD 2.840 billion compared to HKD 2.753 billion[87] Property Development - Profit from property development for the period was HKD 4.885 billion, up from HKD 2.506 billion year-on-year, with total contracted sales amounting to approximately HKD 18.9 billion[4] - The company recorded a total contracted sales amount of approximately HKD 17.4 billion in Hong Kong during the period, driven by strong demand in the primary residential market[8] - Property development revenue in Hong Kong reached HKD 26,474 million with an operating profit of HKD 2,005 million, while mainland China contributed HKD 3,383 million in revenue and HKD 2,021 million in operating profit[73] - The average gross profit margin for property development projects decreased to approximately 8%, down from 15% in the same period last year[98] - The unrecognized contract sales revenue from properties amounted to HKD 26.3 billion, with HKD 22.2 billion expected to be recognized in the current fiscal year[100] Rental Income and Leasing - Total rental income for the period remained flat at HKD 12.285 billion, while net rental income decreased by 1% to HKD 8.955 billion[5] - The group achieved a total rental income of HKD 8.79 billion, maintaining stable performance year-on-year[11] - The average occupancy rate of the shopping mall portfolio was 94% during the period[12] - The group’s residential leasing business saw moderate growth in rental income, benefiting from rising residential rents[17] - The occupancy rate of the International Finance Centre (IFC) rose to 98%, while the International Commerce Centre (ICC) maintained a high occupancy rate of 91%[16] Strategic Developments and Projects - The company holds approximately 5.73 million square feet of land reserves in Hong Kong, with 3.82 million square feet being completed properties primarily for rental and long-term investment[6] - The company has successfully increased the total gross floor area of the residential project in Kwu Tung South from approximately 162,000 square feet to about 1.2 million square feet, planning to provide over 2,700 units[7] - The group plans to complete approximately 1.9 million square feet of properties in the second half of the fiscal year, with around 600,000 square feet available for sale as residential properties[10] - The IGC project, located above the West Kowloon High-Speed Rail Station, consists of two twin towers providing approximately 2.6 million square feet of office space, with the company holding about 1.2 million square feet for long-term investment[18] - The ITC project in Shanghai is expected to provide approximately 5.6 million square feet of premium office, retail, and hotel space, with completion anticipated in the second half of the fiscal year[25] Technology and Innovation - The company is leveraging artificial intelligence and 5G technology to create a comprehensive smart living ecosystem in its new residential projects[9] - The company has launched several new services, including "SmarTone PRIORITY" for high-speed internet during peak hours, "AI Connect" for easy access to global AI platforms, and "Kids CARE" for parental digital solutions[38] - The company continues to enhance its digital infrastructure to support various sectors, including residential, retail, and hospitality, reflecting confidence in its future prospects[39] Sustainability and Corporate Responsibility - The solar power plant in Tseung Kwan O is expected to produce 1.2 million kWh of green electricity annually, reducing CO2 emissions by 468 tons[49] - The group installed 20,000 solar panels across managed properties and construction sites, generating approximately 9 million kWh of electricity and reducing emissions by about 3,800 tons annually[49] - The group donated HKD 20 million for emergency support following the Tai Po fire, and provided 160 hotel rooms for affected residents[51] - The group raised approximately HKD 4.6 million through the "Charity Marathon 2025" to support rehabilitation and counseling services, including youth mental health programs[52] Market Outlook and Economic Conditions - The group anticipates moderate global economic growth by 2026, driven by easing U.S. interest rates, improved U.S.-China relations, and accelerated technology investments[56] - The group expects continued robust performance in the domestic economy, supported by increased high-tech investments and closer trade cooperation with ASEAN countries[56] - Local governments are expected to implement flexible policies to promote supply-demand balance, benefiting the medium to long-term development of the residential market[56] - Hong Kong's economy is expected to maintain stable growth, supported by strong stock market performance and new policies for family offices and gold trading, enhancing its position as a global wealth management center[57] Corporate Governance and Management - The company has complied with the corporate governance code during the six months ending December 31, 2025, although the roles of Chairman and CEO are not separated[125] - The board of directors consists of eight executive directors, including the chairman and managing director, and two non-executive directors[126] - The company is committed to providing detailed financial and other relevant information as required by listing rules[126] - The report will be sent to shareholders, ensuring transparency and compliance with regulatory requirements[126] - The company aims to enhance shareholder communication through timely disclosures and updates[126]