2026-03-19 08:30Financial Performance - The group's revenue for the six months ended December 31, 2025, was HKD 52,705 million, representing a 32.0% increase compared to HKD 39,933 million in the same period last year[8]. - The attributable profit to shareholders for the same period was HKD 10,247 million, up 36.2% from HKD 7,523 million year-on-year[8]. - Basic earnings per share were HKD 3.54, a 36.2% increase from HKD 2.60 in the previous year[11]. - Operating profit rose to HKD 13,398 million, up 10.7% from HKD 12,098 million year-on-year[60]. - The total comprehensive income for the six months was HKD 12,317 million, compared to HKD 6,749 million in the same period last year[61]. - The company reported a net profit of HKD 10,585 million for the period, reflecting a strong performance across various segments[70]. - The group reported a basic underlying profit of HKD 12,213 million for the six months ending December 31, 2025, compared to HKD 10,463 million in 2024[88]. Property Development - The profit from property development for the period was HKD 48,855 million, significantly up from HKD 25,600 million in the previous year[13]. - The group recorded a total contract sales amount of approximately HKD 189 billion during the period[13]. - The group recorded a contract sales amount of approximately HKD 17.4 billion during the review period, with significant contributions from various completed projects[17]. - The average gross profit margin for newly completed development projects was approximately 8%, down from 15% in the same period last year[118]. - The group completed the sale of several residential units, generating net income of HKD 2.59 billion, with a gross profit margin of 71%[119]. - The group's unrecognized contract sales revenue amounted to HKD 26.3 billion, with HKD 22.2 billion expected to be recognized in the current fiscal year[120]. Rental Income - The total rental income for the group was HKD 12,285 million, remaining stable compared to HKD 12,280 million last year[8]. - The total rental income, including joint ventures and associates, was HKD 122,855 million, while net rental income decreased by 1% to HKD 89,500 million[14]. - The average occupancy rate of the shopping mall portfolio was 94% during the review period, reflecting improved consumer confidence and increased visitor numbers[21]. - The group’s total rental income remained stable at HKD 8.79 billion, with a high overall occupancy rate across its property investment portfolio[20]. - Rental income from Hong Kong investment properties remained stable at HKD 8.797 billion, with net rental income decreasing by 1% to HKD 6.265 billion[120]. Dividends and Shareholder Returns - The interim dividend declared was HKD 0.98 per share, a 3.2% increase from HKD 0.95 in the same period last year[12]. - The company paid dividends totaling HKD 8,114 million for the year-end dividend, consistent with the previous year[66]. - The interim results for the six months ending December 31, 2025, are unaudited but have been reviewed by Deloitte according to the relevant standards[194]. Financial Position - The group's net debt ratio is 13.5%, with an interest coverage ratio of 8.7 times[41]. - The group received an A+ credit rating from S&P, with a stable outlook, and maintains an A1 rating from Moody's[41]. - Total assets as of December 31, 2025, amounted to HKD 741,024 million, a slight decrease from HKD 746,801 million as of June 30, 2025[62]. - Cash and cash equivalents at the end of the period increased to HKD 18,955 million from HKD 14,226 million, marking a rise of 33.5%[63]. - The company’s total equity as of December 31, 2025, was HKD 626,409 million, up from HKD 622,374 million as of June 30, 2025[62]. - Net debt decreased to HKD 836.5 billion from HKD 932.9 billion, a reduction of HKD 96.5 billion, mainly due to cash inflows from property sales and reduced construction expenditures[130]. Technology and Innovation - The group is leveraging artificial intelligence and 5G technology to create a comprehensive smart living ecosystem in its new residential projects[18]. - The Point membership program has over 3 million members, with the introduction of The Point Gold membership level to enhance customer service and loyalty[23]. - The group is focused on enhancing its digital services across various sectors, including residential, retail, and hospitality[38]. - SmarTone PRIORITY service ensures high-speed internet during peak hours using 5G technology[38]. - New AI Connect service allows users easy access to global AI platforms[38]. Sustainability and Corporate Responsibility - The solar power plant in Tseung Kwan O is expected to generate 1.2 million kWh of green electricity annually, reducing CO2 emissions by 468 tons[44]. - The group has installed 20,000 solar panels across managed properties and construction sites, producing approximately 9 million kWh of electricity and reducing emissions by about 3,800 tons annually, with plans to increase to 24,000 panels by the end of 2026[44]. - The group achieved an AA rating in the MSCI ESG ratings and was included in the Dow Jones Sustainability Asia Pacific Index[43]. - The group continues to maintain a AAA rating in the Hang Seng Sustainable Development Corporate Index for six consecutive years[43]. - The group donated HKD 20 million for emergency support following the Tai Po fire, and provided 160 hotel rooms for affected residents[45]. Governance and Management - The company has no service contracts with its directors, and their remuneration is subject to approval at the annual general meeting[172]. - The board consists of two non-executive directors and seven independent non-executive directors, providing a balanced distribution of power and sufficient safeguards[195]. - All executive directors are also senior management personnel within the company, indicating a unified leadership structure[173]. - The company’s compensation policy for directors considers market benchmarks, individual contributions, and the company's affordability[190]. Market Outlook - The group anticipates moderate global economic growth by 2026, driven by easing US interest rates and strengthened consumer confidence in mainland China[48]. - The group remains confident in the long-term development prospects of Hong Kong and mainland China, ready to seize opportunities arising from economic transformation[52].