恒隆集团(00010) - 2022 Q4 - 年度业绩

Financial Performance - Total revenue for 2022 remained flat at HKD 10,941 million compared to 2021, with a 2% decrease in operating profit to HKD 7,683 million[7]. - Net profit for the year was HKD 4,795 million, down from HKD 5,075 million in 2021, reflecting a decrease of 5.5%[54]. - Basic earnings per share for 2022 was HKD 2.00, compared to HKD 1.90 in 2021, indicating an increase of 5.3%[53]. - The net profit attributable to shareholders for 2022 was HKD 2,680 million, compared to HKD 2,627 million in 2021, reflecting a growth of 2%[60]. - The company reported a pre-tax profit of HKD 6,352 million, down from HKD 7,266 million in 2021, indicating a decline of approximately 12.5%[60]. Revenue Breakdown - Rental income decreased by 3% to HKD 10,625 million, primarily due to the depreciation of RMB against HKD and temporary closures of malls in Shanghai due to COVID-19[10]. - The overall rental income in mainland China showed a slight increase of 1% in RMB terms, but decreased by 2% in HKD terms due to currency fluctuations[10]. - Property rental income from Mainland China was HKD 7,218 million, a decrease from HKD 7,402 million in 2021, while Hong Kong rental income was HKD 3,407 million, down from HKD 3,517 million[60]. - The overall rental income for the shopping mall segment in 2022 was RMB 4,607 million, reflecting a 1% decrease from 2021[13]. Dividend and Shareholder Returns - Shareholders' basic profit remained at HKD 3,002 million, with basic earnings per share stable at HKD 2.20[7]. - The company proposed a final dividend of HKD 0.65 per share, maintaining the total annual dividend at HKD 0.86 per share[9]. - The company plans to distribute a final dividend of HKD 0.65 per share, maintaining the same level as in 2021[67]. Debt and Financial Position - The net debt-to-equity ratio increased to 25.9% from 22.3% in 2021, indicating a rise in leverage[6]. - The total debt amounted to HKD 45.953 billion as of December 31, 2022, an increase from HKD 45.883 billion in 2021, with 28% denominated in RMB for natural hedging against mainland investments[38]. - The net debt balance was HKD 40.168 billion, with a net debt-to-equity ratio of 25.9%, up from 22.3% in 2021, primarily due to capital expenditures in mainland China and Hong Kong[41]. - The average repayment period of the debt portfolio was 3.1 years, with approximately 71% of loans due for repayment after two years[42]. Property Valuation and Investment - The fair value of investment properties decreased by HKD 352 million in 2022, compared to an increase of HKD 458 million in 2021[53]. - Total value of investment properties and properties under development reached HKD 199.084 billion, with HKD 135.635 billion in mainland properties and HKD 63.449 billion in Hong Kong properties[30]. - The company acquired additional 6.67% interest in joint ventures for HKD 879 million, increasing its stake from 20% to 26.67%[74]. - The total amount for investment properties and development properties acquired was HKD 2,906 million in 2022, up from HKD 2,261 million in 2021, indicating a growth of approximately 29%[71]. Market and Operational Insights - The company reported a 3% decline in rental income in Hong Kong, attributed to the ongoing impact of the pandemic on consumer sentiment[10]. - The high-end shopping malls experienced a revenue decline of 10% and 24% in income and tenant sales at Shanghai Hang Lung Plaza, respectively[15]. - Wuhan Hang Lung Plaza's revenue surged by 52% to RMB 232 million, with tenant sales increasing by 158%[16]. - The overall performance of the shopping mall portfolio was impacted by COVID-19 restrictions, leading to a 1% revenue drop compared to the previous year[12]. Future Outlook and Strategic Initiatives - The company remains optimistic about the outlook for 2023, anticipating new milestones in property development as various projects are set to launch in response to market conditions[52]. - The company plans to leverage marketing activities and the "Hang Lung Club" membership program to drive foot traffic and stimulate consumer spending in its shopping malls[52]. - The company expects to launch its latest office project at 228 Electric Road in the second quarter of 2023, despite ongoing market challenges[52]. - The company aims to enhance its tenant mix and optimize asset positioning through strategic initiatives and capital recovery measures[52]. Employee and Community Engagement - The company reported a significant improvement in employee engagement, ranking in the top 25% of companies for employee engagement progress compared to others surveyed in the same period[50]. - The company established the "Hang Lung Anti-Epidemic Fund 2.0," allocating over HKD 13 million to support urgent anti-epidemic projects in Hong Kong and mainland cities, including assistance for Shanghai, Shenyang, and Dalian[49].