希慎兴业(00014) - 2021 - 年度财报

Investment Strategy and Expansion - Hysan achieved significant investments under its mid-to-long-term strategy in 2021, focusing on core business expansion and growth pillars to create a more balanced and diversified business portfolio [8]. - The acquisition of the Carrian Road project is expected to increase Hysan's core property area by approximately 30% and will include a 60,000 square feet green space [20]. - Hysan's investment in the new medical group in mainland China aims to tap into the rapidly growing quality healthcare sector, expanding its investment footprint beyond the Greater Bay Area and Shanghai [24]. - Hysan established a 50/50 joint venture with IWG to expand its shared workspace business in the Greater Bay Area, capitalizing on the growing demand for flexible office solutions [23]. - The company successfully acquired a 24-story commercial building in Shanghai's Jing'an District, enhancing its property portfolio in a key metropolitan area [22]. - Hysan's investment strategy includes light-asset businesses that complement its core operations and leverage partnerships with established operators [18]. - The company plans to develop the Carrian Hill site into a high-quality commercial building with community facilities, which will increase the property portfolio size by 30% and is expected to be completed by 2026 [27]. - The company has partnered with IWG to manage 33 existing office locations in the Greater Bay Area, capitalizing on the rapidly growing office space market [32]. - A new residential project in Tai Po, offering 262 independent houses and units, is set to launch in the first half of 2022, leveraging the area's geographical advantages [35]. - The company has invested in New Wind Group, which operates in the rapidly growing healthcare sector in mainland China, expanding its investment footprint beyond the Greater Bay Area and Shanghai [41]. Financial Performance - The financial performance for 2021 showed a revenue of 74,993 million, with a steady increase from previous years [74]. - Revenue decreased by 2.7% year-on-year, primarily due to the impact of COVID-19 on office leasing business, with total revenue at HKD 3,608 million [76]. - Office business revenue fell by 4.7% to HKD 1,728 million, while retail business revenue increased by 1.3% to HKD 1,620 million [76]. - The company reported a profit before tax of HKD 2,261 million, with a net profit of HKD 1,903 million for the year [78]. - Basic earnings attributable to shareholders amounted to HKD 2,330 million, including non-operating items of HKD 947 million [78]. - The company's operating profit for the year was HKD 2,835 million, with a net cash outflow of HKD 7,851 million [79]. - The total valuation of investment properties increased by 26.8% to HKD 95,107 million compared to HKD 74,993 million at the end of the previous year [83]. - The company's share of profits from joint ventures rose to HKD 458 million in 2021, up from HKD 225 million in 2020, primarily due to fair value gains from investment properties [113]. - Cash flow from operating activities was HKD 2,845 million in 2021, an increase of HKD 87 million from HKD 2,758 million in 2020 [117]. - The company paid dividends totaling HKD 1,497 million in 2021, slightly down from HKD 1,502 million in 2020 [117]. Sustainability and Corporate Governance - The company is leading the industry in green financing, securing the largest green loan in the Hong Kong market to date [19]. - The company emphasizes sustainable practices by minimizing environmental impact and actively contributing to the communities where it operates [52]. - The company achieved a GRESB rating of "Four Stars" and received the "Green Star" designation, reflecting its commitment to sustainability [73]. - The group issued HKD 1,550 million in green bonds in 2019 and expanded its sustainable financing framework in 2021, achieving a total of approximately HKD 3,890 million in sustainable financing transactions, representing about 21% of total debt [130]. - The company established a sustainable development committee on January 1, 2020, and updated the scope of various committees in 2021 and 2022 [136]. - The company has a formal corporate governance guideline in 2004, which was updated in 2021 and 2022 [136]. - The company has a comprehensive board appointment guideline and conducts effective evaluations of board performance [138]. - The company has a whistleblowing policy in place since 2016, with independent third-party reporting channels [136]. - The company has a formal fraud prevention policy and procedures adopted in 2021 [136]. - The company has a sustainable procurement policy adopted in 2021 [136]. Board Composition and Effectiveness - The board consists of 10 directors, with 4 independent non-executive directors, exceeding the minimum requirement of the Listing Rules [145]. - The board has established four committees under the board: Audit and Risk Management Committee, Remuneration Committee, Nomination Committee, and Sustainability Committee [163]. - The board's composition and diversity are regularly assessed to ensure effective governance and decision-making [170]. - The board consists of 10 directors, with 2 being female, and there is a commitment to improve gender diversity when suitable candidates are identified [172]. - The board held a total of 5 meetings in 2021, reflecting active participation in company affairs and decision-making [179]. - The board's self-assessment achieved a 100% response rate, indicating strong engagement among directors [190]. - The board discussed the importance of diversity and high-performance talent in its leadership structure [198]. - The board's evaluation covered five aspects: responsibilities, composition, meetings and processes, board operations, and training [192]. - The board has identified specific matters that require board approval to maintain control over key decisions and ensure clear responsibilities between the board and management [165]. - The board is committed to maintaining high levels of corporate governance and fulfilling its supervisory responsibilities [157]. Market Challenges and Strategic Responses - The company's office leasing market faced pressure due to reduced demand and rental rates, particularly in Central and Wan Chai/Causeway Bay [76]. - The residential business revenue decreased by 12.2% to HKD 260 million, impacted by low demand from expatriates [76]. - The company introduced flexible leasing options to attract new tenants amid challenging market conditions [76]. - The average rental level for renewals, rent reviews, and new leases in the office segment fell to negative levels, while the occupancy rate remained stable at 94% (2020: 95%) [92]. - The occupancy rate for office properties was 94%, down from 95% in the previous year, while retail properties maintained a high occupancy rate of 99% [91]. - The company is focusing on strategic investments in mainland China and new economic sectors to enhance core business development [87].