SHK PPT(00016)2022-03-17 08:37Financial Performance - For the six months ended December 31, 2021, the company's attributable profit to shareholders was HKD 14.81 billion, a decrease of 15.2% from HKD 17.48 billion in the same period last year[11]. - The basic earnings per share based on the attributable profit was HKD 5.11, down 15.3% from HKD 6.03 in the previous year[11]. - The company’s basic profit attributable to shareholders as per accounts was HKD 15.19 billion, compared to HKD 13.58 billion last year, marking an increase of 11.8%[6]. - The company reported a profit of HKD 15,514 million for the six months ended December 31, 2021, an increase from HKD 13,975 million in the same period of 2020, representing a growth of 11%[68]. - Revenue for the six months was HKD 40,153 million, compared to HKD 46,070 million in the previous year, indicating a decrease of approximately 13%[67]. - The total comprehensive income for the period was HKD 18,034 million, down from HKD 22,770 million, a decrease of 20.8%[68]. - The group reported a net profit of HKD 13,560 million for the period, reflecting a significant performance increase compared to the previous year[78]. Rental and Property Sales - Total rental income increased by 2.2% year-on-year to HKD 12.63 billion, while net rental income rose by 2.4% to HKD 9.73 billion[6]. - The profit from property sales during the review period was HKD 7.65 billion, compared to HKD 12.36 billion in the same period last year[14]. - The total revenue from property sales in Hong Kong and Mainland China for the six months ended December 31, 2021, was HKD 16.997 billion and HKD 1.465 billion, respectively, with a decrease of 33% in Hong Kong property sales profit to HKD 7.036 billion[120]. - Total revenue from customer contracts for the six months ended December 31, 2020, was HKD 46,070 million, with property sales contributing HKD 24,964 million and rental income contributing HKD 10,190 million[82]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 1.25 per share, unchanged from the same period last year[13]. - The interim dividend declared for shareholders is HKD 1.25 per share, consistent with the previous year, totaling HKD 3,622 million[91]. - The board of directors has declared that the interim dividend will be paid in cash on March 17, 2022[197]. Investment and Development - The group has a total land reserve of approximately 57.8 million square feet in Hong Kong, including 23.6 million square feet of properties under development, sufficient for the next 5 to 6 years of development needs[17]. - The group plans to deliver approximately 1.4 million square feet of properties in the second half of the fiscal year, with around 1.3 million square feet being residential properties from Wetland Seasons Bay[20]. - The group plans to expand its property investment portfolio with approximately 5 million square feet of new quality property projects, including 2.6 million square feet of Grade A office space and 600,000 square feet of retail space at the West Kowloon high-speed rail station development[24]. - The group is focused on selective land acquisitions to strengthen its property development business in both Hong Kong and mainland China[59]. Financial Position and Debt Management - The group's net debt to equity ratio is at a low level of 17.5%, with an interest coverage ratio of 13 times[42]. - The group has a solid recurring revenue base and ample financial resources to meet funding needs and seize future investment opportunities[127]. - The total debt of the group was HKD 122.864 billion, with net debt of HKD 104.955 billion after deducting cash and bank deposits[126]. - The group has minimal foreign exchange risk due to a large asset base primarily in HKD, with 76% of borrowings in HKD after cross-currency swaps[130]. Sustainability and Corporate Responsibility - The group is focused on creating sustainable and green communities in its developments, integrating health and wellness concepts[19]. - The group plans to increase the number of properties with solar panels from 26 to approximately 45 by the end of 2022[49]. - The group has established a ten-year environmental goal focusing on greenhouse gas emissions, energy consumption, and waste diversion[49]. - The group actively promotes the use of electric vehicles and is installing charging stations in its commercial and residential projects[49]. Market Outlook and Economic Conditions - The economic outlook for 2022 remains challenging due to ongoing COVID-19 variants and geopolitical risks, but supportive macroeconomic measures are expected to stimulate growth[57]. - The group is optimistic about the economic recovery in Hong Kong, supported by government stimulus measures and the potential for a gradual return to quarantine-free travel with mainland China[58]. - The dual circulation strategy and further promotion of innovation and green economy development are expected to yield positive economic effects[57]. Employee and Management - The group employed over 38,500 employees as of December 31, 2021[195]. - The total employee compensation for the six months ending December 31, 2021, was approximately HKD 6.508 billion[195]. - The company expresses gratitude to its employees for their dedication during the pandemic, ensuring effective operations and continued service to customers[62]. Corporate Governance - The company is committed to enhancing its corporate governance by maintaining a diverse and experienced board of directors[153]. - The company has been recognized in major financial publications for outstanding management and corporate governance[46].