HKR INT'L(HK:00480)2023-07-11 08:35Sustainability Commitment - Signed the first sustainability-linked loan of HK$2.4 billion, demonstrating the Group's commitment to long-term sustainability[12] - The Group is committed to sustainability and has adopted the TCFD framework for climate-related disclosures, demonstrating its dedication to environmental governance[79][80] - Despite challenges, the group is committed to sustainability and has aligned its Environmental, Social and Governance (ESG) initiatives with the Sustainable Development Goals (SDGs)[185] - The Group is committed to fully implementing TCFD recommendations by 2025, marking a significant step in enhancing climate-related disclosures[195] - The Group has achieved its commitment to expand the use of clean and renewable energy, joining CLP Power Hong Kong's Feed-in Tariff scheme[198] - The CDW Building has commenced pilot installation of a rooftop solar panel system, with plans for more installations in other projects[198] - The hospitality businesses are progressively phasing out plastic products in favor of biodegradable alternatives, such as takeaway boxes made from corn starch and oyster shell powder[199] - The Group's internal policies govern material sourcing and waste management practices rigorously across all businesses[199] - The Group's environmental goals include enhancing energy and water efficiency, lowering emissions, and curbing waste production[196] - All new developments are encouraged to obtain Hong Kong Building Environmental Assessment Method ("BEAM Plus") certification[196] - The group was recognized with the Outstanding ESG Performer of the Year Diamond Award and the Best ESG Report Grand Award in 2022[193] Market Performance - The Group's revenue for the financial year 2022/2023 was HK$1,693.7 million, a decrease of 59.4% from HK$4,167.9 million in the previous year[37] - The underlying profit for the Group was HK$495.6 million, down 48.4% from HK$960.4 million last year[37] - Profit attributable to owners of the Company, including net unrealised losses on fair value change of investment properties, was HK$455.6 million, a decrease of 58.5% from HK$1,097.3 million in the previous year[38] - Basic earnings per share were HK30.7 cents, compared to HK73.9 cents for the last year[38] - As of March 31, 2023, the net asset value attributable to shareholders was HK$24,397.9 million (HK$16.4 per share), down from HK$25,026.9 million (HK$16.8 per share) in the previous year[38] - The Group's revenue from property development and investment for the Current Year was HK$1,833 million, down from HK$4,525 million in the preceding year[102] - The contribution from property development and investment was HK$819 million, a decrease from HK$1,371 million in the previous year[102] Property Development - The first batch of VILLA LUCCA units was launched for sale by tender, marking a significant milestone in the luxury residential market[16] - Over 94% of total units for Starlight One in Jiaxing were sold out on the launch day, indicating strong market demand[20] - Successfully won the bid for a premium residential land lot in Nanhu New District, Jiaxing, enhancing the Group's property portfolio[20] - Obtained occupation permit for VILLA LUCCA, further solidifying its position in the luxury real estate market[14] - The Group is developing a land plot in Discovery Bay under the approved Master Plan 7.0E, which will provide over 1,400 housing units, enhancing residents' access to green spaces and mobility[60][65] - A new multi-recreation center is planned in Discovery Bay, offering various educational, leisure, and sports facilities, alongside upgraded pier facilities[61][65] - The Group has acquired a land plot in Jiaxing's Nanhu New District in March 2023, marking its sixth investment in Jiaxing, aimed at developing a premium residential project[69][73] - The Group emphasizes high-quality housing to meet home-buyer demand, especially as the residential market values project quality more than ever due to recent market consolidations[70][73] - The rezoning of staff quarters at DB Area 6f to residential use was approved, which will provide approximately 500 residential units upon completion[108] - The Group's residential projects in Hong Kong as of March 31, 2023, include Poggibonsi with 196 total units, of which 190 were sold, generating sales proceeds of HK$40.3 million[118] - Villa Lucca, a joint venture project, has seen significant interest with viewing volume increasing after the resumption of travel, and it received a certificate of compliance in March 2023[114] - The Starlight One project in Jiaxing, consisting of 392 high-rise apartments and villas, achieved over 94% sales on its launch day in March 2023[124] - The Group acquired a residential plot in Jiaxing's Nanhu New District with a gross floor area of 1,415,000 square feet, expected to benefit from local development[125] - The foundation work for the residential redevelopment project at Hollywood Road and Upper Lascar Row is in progress, with completion expected by the end of 2025[117] - The Group's residential project IN One in Hangzhou is on schedule for completion by the end of 2023, comprising 245 apartments and 50 villas[125] - The Group's residential project in Jiaxing, Zhejiang, consists of 392 high-rise apartments and villas, with 371 units sold, achieving over 94% sales on the opening day in March 2023[126][127] - The Group acquired a residential land plot in Nanhu New District, Jiaxing, with a total GFA of 1,415,000 sq. ft., expected to commence construction by the end of 2023[127][131] - The IN One project in Hangzhou will provide 245 low-rise apartments and 50 villas, with expected completion by the end of 2023[131] Awards and Recognition - Celebrated HKRI's 45th anniversary with the theme "Together We Fortify," reinforcing the company's commitment to community and collaboration[21] - Achieved multiple awards in the Financial Year 2022/2023, including Best ESG Report (Small Cap) Grand Award, highlighting the Group's excellence in sustainability practices[22] - HKRI Taikoo Hui received the Top Shopping Mall of the Year 2022 award from Dianping.com[30] - Discovery Bay Services Management Limited was recognized with the Gold Seal for Business Resilience & Community Contribution in 2022 by Hong Kong Quality Assurance Agency[27] - Auberge Discovery Bay Hong Kong was awarded the Best Outdoor Wedding Ceremony Venue in 2022 by Weddinghk.hk[31] - The company achieved the Excellent Quality Award at the Golden Light Awards 2023[30] - The Asia Pacific Property Awards recognized HKRI Taikoo Hui for its Residential Development in Hong Kong[25] - Discovery Bay Transportation Services Limited received the Best Security Personnel Awards 2021-22 for outstanding performance[25] - The company was ranked 34th for Economic Contribution in 2022 by Shanghai Jing'an District Government[30] - The "HKRI Love & Design" CSR Project won the Gold Award at the Asia-Pacific Stevie Awards[24] - The company was awarded the Community Partner Commendation Award 2022 by OIWA[27] - The Sukhothai Shanghai was recognized as one of the Top 10 Hotels in China by Condé Nast Traveler in 2022[31] Future Outlook - The Group remains cautiously optimistic about future economic growth despite structural damage from the pandemic and rising interest rates[86] - The property market in Hong Kong has only rebounded after the reopening of borders in February 2023, with a full recovery expected to take longer[105] - The Group's strategy includes maintaining a disciplined approach to development and risk management while navigating market volatility[87] - The Group's long-term business strategy focuses on creating a unique lifestyle that is both aspirational and sustainable[86] - The Group continues to explore investment opportunities in mainland China, focusing on the Yangtze River Delta region[131] - The Group plans to explore further high-quality property investment opportunities in the Yangtze River Delta and other growth regions to generate stable income growth[152] Transportation and Hospitality - Demand for transportation services is recovering steadily, but challenges such as driver shortages and high fuel costs persist[153] - Three newly ordered Euro VI-compliant double-deck buses were delivered to Hong Kong, set to improve carrying capacity in the first half of 2023[154] - The hotel operations recorded an average occupancy rate of 70% during the current year, benefiting from the easing of pandemic restrictions[166] - The Group's hotel businesses in Mainland China are expected to benefit from the revival of market sentiment and easing travel restrictions[168] - The average occupancy rate of Hong Kong's Auberge Discovery Bay Hotel reached 70% in the current year, driven by successful themed staycation packages and promotional activities[169] - The Sukhothai Bangkok is expected to benefit from the ongoing rebound in Thailand's tourism industry, with occupancy rates beginning to recover after a weak first half of the year[172] - The construction of the new luxury spa complex, The Sukhothai Spa, is underway and scheduled to open in Q3 2023[172] Leisure and Community Engagement - DB Ice Rink (DBIR) has established itself as an elite ice-skating academy and will host various regional and international competitions in 2023, including the Greater Bay Championships II[181] - The Lantau Yacht Club (LYC) generated additional revenue through its yachtcation package, which offers exclusive yacht lifestyle experiences[182] - The number of golf rounds at Discovery Bay Golf Club expanded year-on-year, with plans to enhance the clubhouse in 2023[183] - The group holds a 50% interest in all leisure businesses, including the hotels and recreational facilities mentioned[184] - The Group remains dedicated to serving low-income groups and the socially disadvantaged through volunteer initiatives[200]