SHK PPT(00016)2022-10-06 08:31Financial Performance - The group's revenue attributable to shareholders decreased by 8.8% to HKD 77,747 million in 2022 from HKD 85,262 million in 2021[10] - The company reported a basic underlying profit of HKD 28,729 million, down 3.8% from HKD 29,873 million[10] - The basic earnings per share attributable to shareholders decreased by 4.2% to HKD 8.82 from HKD 9.21[10] - Basic earnings per share for 2022 were HKD 9.91, compared to HKD 10.31 in 2021, reflecting a decrease of about 3.9%[12] - The property sales segment generated revenue of HKD 35,403 million in 2022, down from HKD 46,017 million in 2021, a decline of approximately 23%[17] - The operating profit from property sales was HKD 15,847 million in 2022, compared to HKD 19,250 million in 2021, a decrease of about 17.5%[17] - The company declared a total dividend of HKD 14,344 million for 2022, unchanged from the previous year[17] Rental Income and Property Management - Total rental income remained stable, increasing slightly by 0.1% to HKD 24,810 million[10] - Net rental income rose by 0.5% to HKD 19,250 million compared to HKD 19,149 million in the previous year[10] - The total rental income for the year was HKD 24.81 billion, remaining stable compared to the previous year, while net rental income increased by 1% to HKD 19.25 billion[24] - The total rental income from the diversified property investment portfolio in Hong Kong decreased by 3% to HKD 17.55 billion due to the impact of the Omicron variant[31] - The net rental income from the diversified quality rental property portfolio was HKD 13.207 billion, a decrease of 3% compared to the previous fiscal year[93] Land Reserves and Development Projects - The total land reserve in Hong Kong decreased by 1.4% to 57.1 million square feet, with ongoing projects down by 6.3%[10] - The land reserve in mainland China decreased by 6.2% to 70.6 million square feet, with ongoing projects down by 10.2%[10] - The company has 24.4 million square feet of properties under development, primarily for sale, as of June 30, 2022[18] - The company has a land bank of 56.5 million square feet in Hong Kong and 58.0 million square feet in mainland China as of 2022[15] - The company aims to continue enhancing its land reserves through various channels, including converting agricultural land into developable land[27] Market Expansion and Future Plans - The company plans to continue its market expansion and development of new properties in both Hong Kong and mainland China[10] - The company is committed to maintaining rigorous financial management principles, especially during uncertain global economic conditions and rising interest rates[75] - The company aims to enhance its property investment business in Hong Kong and mainland China, with several new projects expected to support recurring income over the next 18 months[77] - The company plans to launch multiple residential projects in Hong Kong, including Silicon Hill in Tai Po and NOVO LAND in Tuen Mun, in the remaining fiscal year[76] - The company is optimistic about the future, believing that Hong Kong will continue to thrive as an international metropolis with unique advantages under the "One Country, Two Systems" principle[72] Sustainability and ESG Initiatives - The group aims to reduce greenhouse gas emissions intensity by 25% and electricity consumption intensity by 13% by the fiscal year 2029/30[66] - The group has been recognized as one of the top three companies in the Hang Seng Sustainability Index for three consecutive years and received an A rating in the MSCI ESG ratings in 2022[63] - The group is committed to integrating environmental, social, and governance (ESG) elements into its property development and management operations[87] - The group is actively promoting green initiatives, including the installation of solar panels in its properties[68] - The group is enhancing its properties' ESG performance to increase attractiveness to tenants[156] Tenant and Customer Engagement - The active membership of the group's loyalty program, The Point, grew by nearly 20% during the year, reaching close to 2 million members[34] - The group introduced new features in its app to enhance customer engagement, allowing points to be converted into Point Dollars for cash consumption in participating malls[146] - The group is actively managing its tenant mix and conducting promotional campaigns to attract customers, resulting in increased rental inquiries and discussions for longer lease terms[146] - The group is collaborating with tenants to boost customer spending in its malls[40] - The group plans to upgrade its malls, with a major renovation at WTC Mall set to begin in Q4 2022, introducing new premium brands and dining options[149] Economic Outlook and Market Conditions - The global economic environment remains uncertain due to supply chain disruptions, rising inflation, and geopolitical risks, impacting short-term forecasts[71] - The company anticipates reasonable growth in the mainland economy in the coming year due to enhanced domestic circulation and government monetary and fiscal stimulus measures[72] - The mainland real estate market continues to face challenges, but recent policy easing and interest rate cuts are expected to positively impact financially stable developers[59] - The residential market in major cities is expected to remain stable, supported by recent assistance measures, despite a prolonged consolidation period in the real estate market[72] - The group has seen an increase in rental inquiries for office spaces, indicating signs of improvement in the leasing market[34]