Financial Performance - For the six months ending December 31, 2023, the group's unaudited profit attributable to shareholders was HKD 1.6525 billion, an increase from HKD 1.5592 billion in 2022, representing a growth of 5.99%[1] - The group's net profit for the interim period, after accounting for a revaluation loss of investment properties, was HKD 1.4684 billion, compared to HKD 1.3688 billion in 2022, reflecting an increase of 7.29%[1] - The interim earnings per share was HKD 0.71, up from HKD 0.68 in 2022, indicating a growth of 4.41%[1] - The group reported a net cash position of HKD 43.36 billion as of December 31, 2023, after deducting total borrowings of HKD 16.736 billion[17] - The total comprehensive income for the period was HKD 2,838,297,492, compared to HKD 2,245,806,130 in the previous year, marking a significant increase[28] - The group reported revenue of HKD 4,948,752,323 for the six months ended December 31, 2023, a decrease of 22.7% compared to HKD 6,406,167,141 in the same period of 2022[26] - The gross profit for the same period was HKD 1,920,886,385, reflecting a decrease of 30.9% from HKD 2,783,321,404 year-on-year[26] - The net profit for the period was HKD 2,633,659,694, an increase of 6.9% compared to HKD 2,463,702,889 in the previous year[27] Property Sales and Revenue - The total property sales revenue attributable to the group was HKD 6.6349 billion, significantly higher than HKD 3.8994 billion in 2022, marking an increase of 70.5%[4] - The rental income attributable to the group was HKD 1.7767 billion, a year-on-year increase of 2.8% from HKD 1.7283 billion in 2022[10] - The net rental income decreased by 0.7% to HKD 1.4699 billion from HKD 1.4806 billion in 2022, primarily due to increased leasing-related expenses and maintenance costs[10] - The company's hotel revenue for the interim period was HKD 810.9 million, up from HKD 692.8 million in the same period last year, with an operating profit of HKD 253.5 million compared to HKD 229.2 million in 2022[14] Land and Development - The land bank held by the company amounts to approximately 19.5 million square feet, with a balanced property type distribution: 47.3% commercial, 28.6% residential, 10.1% industrial, 8% parking, and 6% hotel[5] - The company plans to launch multiple new residential projects, including ONE CENTRAL PLACE in Central and 柏瓏 III in Yuen Long, which have received pre-sale consent[4] - The company acquired two plots of land from the Hong Kong government and received development rights for another plot, totaling an attributable floor area of 806,145 square feet[6] - The group acquired three plots of land during the interim period, totaling over 806,000 square feet, demonstrating commitment and confidence in the Hong Kong property market[24] Market and Economic Outlook - The office market continues to face challenges, with demand slowing despite some companies gradually phasing out hybrid work models[12] - The company is optimistic about the medium to long-term prospects of the mainland real estate market due to supportive government policies[16] - The unemployment rate in Hong Kong decreased to 2.9%, and the population rebounded to 7.5 million by the end of 2023, reflecting economic recovery[23] - The group aims to maintain vigilance and agility in 2024, focusing on sustainable development and cost control strategies[24] Sustainability and Corporate Governance - The company was selected for the Dow Jones Sustainability Asia Pacific Index for the second consecutive year, ranking in the top 20% in the region for sustainability performance[19] - The company achieved an "AA" rating in the MSCI Environmental, Social, and Governance (ESG) Index in 2023, and received a five-star rating in the Global Real Estate Sustainability Benchmark[19] - The company has been recognized with multiple awards for its sustainability efforts, including the "Green Building Leadership Award" and three awards at the 2023 United Nations Sustainable Development Goals Hong Kong Achievement Awards[19] - The company is committed to reducing carbon emissions and has received certification for its science-based short-term reduction targets from the Science Based Targets initiative (SBTi)[20] - The company has adopted its own corporate governance code based on the principles and provisions of the Corporate Governance Code under the Listing Rules[56] - All three independent non-executive directors have served on the board for over nine years and a new independent non-executive director will be appointed as per the Listing Rules[57] Community Engagement and Initiatives - The company is actively involved in community support, distributing over 2,000 festive gift packs to underprivileged families during the Mid-Autumn Festival[21] - The company is collaborating with various organizations to promote arts and culture, enhancing community life through diverse initiatives[20] - The company has established a coral conservation facility to support biodiversity and engage the public in educational activities[20] Financial Position and Assets - As of December 31, 2023, total non-current assets amounted to HKD 113.18 billion, an increase from HKD 112.40 billion as of June 30, 2023, reflecting a growth of approximately 0.69%[29] - The company's equity attributable to shareholders increased to HKD 93.71 billion from HKD 91.59 billion, representing a growth of about 2.31%[30] - Current liabilities decreased to HKD 8.57 billion from HKD 10.98 billion, a reduction of approximately 21.96%[30] - The net current assets stood at HKD 59.14 billion, up from HKD 57.67 billion, indicating an increase of about 2.56%[30] - The total assets less current liabilities reached HKD 172.33 billion, compared to HKD 170.07 billion, marking a growth of approximately 1.33%[30] - The company's cash and cash equivalents, including restricted bank deposits, totaled HKD 67.72 billion, down from HKD 68.65 billion, a decrease of about 1.36%[29] Tax and Financial Management - The income tax expense for the six months ended December 31, 2023, was HKD 330,058,349, compared to HKD 454,235,299 in the same period last year, indicating a decrease of approximately 27.3%[41] - The group has made provisions for land appreciation tax based on progressive tax rates, with an estimated average tax rate of 17% in Singapore and 25% in mainland China[42] - The deferred tax liabilities related to fair value changes of investment properties were accounted for, reflecting the group's adherence to tax regulations[42] Shareholder Information - The company will distribute an interim dividend of HKD 0.15 per share, consistent with the previous year[1] - The weighted average number of ordinary shares for calculating basic earnings per share increased to 2,064,828,625 for the six months ended December 31, 2023, from 2,011,279,087 in the previous year[43] - The interim report for 2023/2024 will be sent to all shareholders around March 12, 2024, and will be available on the company's website[59]
TST PROPERTIES(00247) - 2024 - 中期业绩