希慎兴业(00014) - 2022 - 中期财报

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 1,777 million, a decrease of 3.1% compared to HKD 1,834 million in the same period of 2021[6]. - Core operating profit for the same period was HKD 1,169 million, down 0.7% from HKD 1,177 million year-on-year[6]. - The announced profit decreased to HKD 71 million, primarily due to a 1.0% non-cash fair value change of investment properties reflecting market conditions[6]. - Basic profit increased by 4.9% to HKD 1,235 million, primarily due to a one-time foreign exchange gain of HKD 66 million from the acquisition of a subsidiary[14]. - The company reported a net profit of HKD 335 million for the period, a decline of 57.0% from HKD 781 million in the prior year[50]. - Basic earnings per share decreased to HKD 0.07 from HKD 0.50, reflecting an 86.0% drop[49]. - The total comprehensive income for the period was HKD 70 million, a substantial decrease from HKD 945 million in the same period last year[50]. - The fair value change of investment properties resulted in a loss of HKD 985 million, compared to a loss of HKD 545 million in the previous year[49]. - The group reported a pre-tax profit of HKD 517 million for the six months ended June 30, 2022, compared to HKD 943 million in the same period of 2021, reflecting a decline of 45%[64]. Revenue Segmentation - The office segment revenue decreased by 8.5% to HKD 805 million, while the retail segment revenue increased by 3.2% to HKD 846 million[14]. - Revenue from rental investment properties was HKD 702 million, while property management service income was HKD 103 million, totaling HKD 805 million for the office segment[66]. - The total segment profit for the office division was HKD 696 million, a decrease from HKD 795 million in the same period last year[66]. Occupancy and Demand - The occupancy rates for office and retail properties were 91% and 98%, respectively, indicating strong demand despite market challenges[9]. - The occupancy rate for the office segment remained stable at 91% as of June 30, 2022, compared to 94% at the end of 2021[16]. - The retail segment's occupancy rate was 98% as of June 30, 2022, down from 99% at the end of 2021[17]. - Tenant sales in the second quarter increased by over 25% compared to the first quarter, aligning with last year's performance[9]. Strategic Initiatives - The company plans to launch a new thematic initiative in the third quarter to enhance the shopping experience at its flagship mall, celebrating its tenth anniversary[10]. - The company is reviewing and revising retail space designs as part of its asset enhancement strategy[10]. - The company has introduced new tenants in the retail segment, including dining and beauty brands, to enhance its business portfolio[18]. - The company engaged in strategic marketing activities, achieving significant sales performance through promotional campaigns and partnerships[19]. Economic Context - The unemployment rate in Hong Kong improved to 4.7% from the previous year, reflecting a gradual economic recovery[8]. - The company is optimistic about its business outlook, citing ongoing development and expansion plans as key growth drivers[13]. Investment and Capital Expenditures - Capital expenditures decreased to HKD 2,621 million (2021: HKD 20,077 million), focusing on selective asset enhancement and redevelopment[34]. - The group’s investments outside its core areas totaled HKD 2,109 million as of June 30, 2022, up from HKD 1,780 million as of December 31, 2021, aimed at expanding into mainland China and other Asian regions[33]. Debt and Financing - As of June 30, 2022, the total debt of the group increased to HKD 27,287 million, up from HKD 18,807 million as of December 31, 2021, primarily due to bank loans for the project financing of the Kadoorie Hill project[35]. - The net debt-to-equity ratio as of June 30, 2022, was 23.8%, up from 11.7% as of December 31, 2021[40]. - The group executed sustainable financing transactions, including one of Hong Kong's largest green loans amounting to HKD 12,951 million for the Kadoorie Hill land development[45]. Shareholder Returns - The company announced an interim dividend of HKD 0.27 per share, consistent with the previous year[15]. - The total dividends declared during the period were HKD 1,276 million, including HKD 60 million to non-controlling interests[56]. - The company declared an interim dividend of HKD 1,209 million for the second interim dividend of 2021, compared to HKD 1,216 million for the same period in 2021[78]. Corporate Governance and Compliance - The company continues to comply with the Corporate Governance Code and has adopted the standard code for securities trading by directors[105][106]. - The Audit and Risk Management Committee held two meetings during the review period, focusing on annual financial reports and risk management issues[107]. - Deloitte Touche Tohmatsu is the auditor for the company, ensuring compliance and financial integrity[148]. Employee and Management Compensation - The total remuneration for directors and key management personnel for the six months ended June 30, 2022, was HKD 28 million, slightly up from HKD 27 million in the same period of 2021, reflecting a 3.70% increase[92]. - The fixed annual salaries for the executives Li Yunlian and Lu Ganwei were set at HKD 8,240,000 and HKD 5,600,000 respectively for 2022[114]. - The performance-based bonuses for 2021 were established at HKD 15,200,000 for Li Yunlian and HKD 4,400,000 for Lu Ganwei[114]. Stock Options and Share Repurchase - The company granted a total of 2,084,000 stock options under the new plan during the review period[125]. - During the review period, the company repurchased a total of 5,400,000 ordinary shares at a total cost of approximately HKD 125 million[140]. - The highest repurchase price per share was HKD 23.95, while the lowest was HKD 20.15, with a total cost of HKD 36 million for April alone[141].