2026-02-27 08:31Financial Performance - The group's unaudited profit attributable to shareholders for the interim period was HKD 22.22 billion, compared to HKD 22.41 billion in the previous year, with basic earnings per share of HKD 0.24, down from HKD 0.26 [4]. - The net profit attributable to shareholders, after accounting for a revaluation loss of investment properties, was HKD 15.33 billion, compared to HKD 18.20 billion in the previous year, with earnings per share of HKD 0.17, down from HKD 0.21 [4]. - Total property sales revenue for the interim period was HKD 69.12 billion, significantly up from HKD 24.48 billion in the previous year [7]. - The total rental income for the interim period was HKD 1.708 billion, a decrease of 2.3% from HKD 1.748 billion in the previous year [13]. - The net rental income was HKD 1.356 billion, down 1.5% from HKD 1.377 billion in the previous year [13]. - Revenue for the six months ended December 31, 2025, was HKD 5,185 million, an increase of 34.5% compared to HKD 3,854 million for the same period in 2024 [42]. - Gross profit for the same period was HKD 2,257 million, up 36.5% from HKD 1,653 million in 2024 [42]. - Net profit for the period was HKD 1,527 million, a decrease of 16.0% from HKD 1,817 million in 2024 [43]. - Basic earnings per share for the period was HKD 0.17, down from HKD 0.21 in 2024 [42]. - Total comprehensive income for the period was HKD 1,763 million, compared to HKD 1,656 million in 2024, reflecting an increase of 6.5% [43]. Property Sales and Development - The group sold 98.8% of units in the projects located in Tseung Kwan O and 84.6% in St. George's Mansions, indicating strong sales performance [7]. - The group plans to launch new projects, including the development in Tseung Kwan O, pending the issuance of pre-sale consent [8]. - The group's property sales revenue amounted to HKD 6.5 billion, driven by successful launches in Tseung Kwan O, Yuen Long, and Yau Tong [36]. - The group acquired two government land parcels, enhancing its land reserves with high development potential [36]. - The group has land reserves of approximately 18.8 million square feet, with a balanced property type distribution: 49.6% commercial, 25.8% residential, 10% industrial, 8.3% parking, and 6.3% hotel [9][10]. Rental and Leasing Performance - The overall occupancy rate of the investment property portfolio remained stable at 89.5%, with residential properties showing the largest increase in occupancy rate to 92% [13]. - During the interim period, the group's hotel revenue reached HKD 822 million, up from HKD 794 million in the same period last year, with an operating profit of HKD 289 million, compared to HKD 261 million in 2024 [17]. - The residential leasing market showed a strong performance, with the ONE CENTRAL PLACE project achieving a rental rate of 75% since its launch in July 2025, driven by robust demand from professionals and overseas students [16]. - The company’s revenue from property leasing for the six months ending December 31, 2025, was HKD 1,337 million, slightly down from HKD 1,378 million in the same period of 2024, a decrease of 3% [49]. Financial Position and Management - As of December 31, 2025, the group had cash and bank deposits of HKD 53.21 billion, with net cash of HKD 51.4 billion after deducting total borrowings of HKD 1.79 billion [21]. - The group’s total asset value and total equity amounted to HKD 186.56 billion and HKD 170.49 billion, respectively, with a book net asset value per share of HKD 17.98 [21]. - The company maintains a prudent financial management policy, with foreign exchange risks kept at a low level [23]. - The group plans to maintain a cautious approach to financial management while seeking investment opportunities aligned with its long-term strategy [38]. Corporate Governance and Sustainability - The group emphasizes corporate governance and maintains high transparency through various channels, including press releases and investor seminars [24]. - The company achieved a significant recognition in sustainability, being included in the CDP's highest climate change A-list for the second consecutive year and rated as a global industry leader in residential real estate by GRESB [27]. - The company improved its MSCI ESG rating from "AA" to the highest "AAA" level, and also received the highest "AAA" rating in the Hang Seng Sustainable Development Index series [27]. - The company’s "珍『識』水口" initiative won the United Nations Sustainable Development Goals Hong Kong Achievement Award 2025, highlighting its commitment to environmental and social governance [28]. - The company is actively collaborating with stakeholders to assess key environmental, social, and governance issues that impact long-term value [29]. - The group received an "AAA" rating in the latest MSCI ESG assessment, ranking among the top 5% in the global real estate development sector [38]. - The company is committed to sustainable development through green building practices and carbon reduction measures [38]. Community Engagement and Events - The company organized over 30 sports-themed events to support local athletes during the 15th National Games, fostering community engagement [32]. - The company’s community support included a donation of HKD 20 million for disaster relief and over HKD 8.65 million in living supplies for affected residents [32]. - The company hosted the "One North AI Summer Camp," attracting over 40,000 participants and showcasing over ten new technology projects developed by students and innovators [31]. - The company continues to promote ecological conservation through its initiatives, engaging nearly 550 visitors and students in various educational activities [30]. Market Overview - The Hong Kong property market saw a year-on-year increase of 21.5% in transactions, with over 20,000 deals recorded [34]. - The retail market showed improvement with a year-on-year growth of 1% for the full year, following continuous growth since May 2025 [37]. - The office leasing market showed signs of recovery, with a significant increase in large-scale office leasing transactions during the interim period, supported by government measures and a positive market atmosphere [15]. - The Hang Seng Index experienced a strong annual increase of over 28%, with an average daily trading volume of HKD 249.8 billion, nearly doubling from the previous year [35]. - The total number of new IPOs in Hong Kong reached 119, raising over HKD 285.8 billion, a significant year-on-year increase of 225% [35]. Audit and Reporting - The interim results have been reviewed by the audit committee and KPMG, ensuring compliance with financial reporting standards [68]. - The mid-term report for 2025/2026 will be published on the Hong Kong Stock Exchange and the company's website, with printed copies sent to shareholders around March 18, 2026 [69]. - The report complies with the requirements set forth in the Listing Rules, detailing all necessary information [69]. - The announcement date is February 27, 2026, indicating the company's commitment to timely communication with stakeholders [69]. - The company aims to enhance transparency and shareholder engagement through the publication of detailed financial reports [69]. - The mid-term report will include performance summaries, user data, and future outlooks [69]. - The company is focused on maintaining strong governance with a diverse board composition [69].