希慎兴业(00014) - 2023 - 中期业绩

Financial Performance - For the six months ended June 30, 2023, the company's revenue was HKD 1,611 million, a decrease of 9.3% compared to HKD 1,777 million in 2022[4] - The company's recurring core profit for the same period was HKD 1,026 million, down 12.2% from HKD 1,169 million in the previous year[4] - The group's revenue for the first half of 2023 decreased by 9.3% to HKD 1,611 million compared to HKD 1,777 million in 2022[13] - The recurring basic profit fell by 12.2% to HKD 1,026 million from HKD 1,169 million year-on-year[13] - The group's profit for the period was HKD 333 million, slightly down from HKD 335 million in the previous year, representing a decrease of 0.6%[42] - Basic earnings per share increased to HKD 0.19 from HKD 0.07, reflecting a significant growth of 171.4%[42] - Investment income rose to HKD 138 million, up from HKD 135 million, indicating a growth of 2.2%[42] - The group reported a pre-tax profit of HKD 486 million for the six months ended June 30, 2023, compared to HKD 517 million in the same period of 2022[62] Dividend and Shareholder Returns - The company maintained an interim dividend of HKD 0.27 per share, unchanged from the previous year[4] - The group announced an interim dividend of HKD 0.27 per share, consistent with the previous year[14] - The company declared an interim dividend of HKD 0.27 per share for the first half of 2023, totaling HKD 277 million, consistent with the previous year's interim dividend of HKD 0.27 per share[64] - The first interim dividend will be distributed on September 5, 2023, to shareholders registered as of August 25, 2023[69] Market and Economic Conditions - The unemployment rate in Hong Kong decreased to 2.9%, indicating an improvement in the local labor market[7] - The number of visitors to Hong Kong reached 13 million in the first half of 2023, recovering to 37% of pre-pandemic levels[7] - The company anticipates that the economic recovery in Hong Kong will continue to be influenced by the global economic environment, but visitor numbers and economic activities are expected to improve[12] Property and Rental Performance - The overall occupancy rates for the office and retail segments were 89% and 98%, respectively, as of June 30, 2023[4] - The retail segment's revenue declined by 9.9% to HKD 762 million, while the residential segment saw a 17.5% drop to HKD 104 million[13] - Approximately 11% of retail space was closed due to significant optimization works in the Lee Garden area, impacting retail revenue[13] - The occupancy rate for the office portfolio remained stable at 89% as of June 30, 2023, compared to 90% at the end of 2022[15] - The occupancy rate of the retail portfolio remained stable at 98% as of June 30, 2023 (December 31, 2022: 99%) [16] - The high-end residential leasing revenue fell by 17.5% to HKD 104 million (2022: HKD 126 million) due to global economic uncertainty and decreased demand from expatriates [18] - The occupancy rate for the residential portfolio was maintained at 61% as of June 30, 2023 (December 31, 2022: 61%) [18] Strategic Developments - The company is undertaking strategic upgrades to its retail property portfolio to accommodate the expansion of international high-end brands[9] - The group plans to open the Galleria project in the Lee Garden area by the end of 2026, which is a key part of its long-term development strategy[12] - The commercial property development project at Caroline Hill Road is progressing on schedule, with foundation work ongoing and superstructure work expected to commence in Q3 2023, aiming for completion by the end of 2026 [19] - The luxury residential project Linhai Shancheng in Tai Po has achieved record transaction prices and unit prices, reflecting strong buyer interest despite market uncertainties [20] Financial Position and Assets - The company's total equity as of June 30, 2023, was HKD 68,729 million, a decrease of 2.1% from HKD 70,200 million at the end of 2022[5] - Total cash capital expenditure decreased significantly to HKD 624 million from HKD 2,621 million in 2022, mainly due to construction projects at the Kadoorie Hill and Lee Garden[31] - Total debt decreased to HKD 25,730 million as of June 30, 2023, from HKD 27,487 million at the end of 2022, with less than 5% of total debt maturing in the next 18 months[32] - The debt-to-equity ratio increased to 25.9% from 23.4% at the end of 2022, while the net interest coverage ratio fell to 10.3 times from 13.1 times[37] - Cash and bank deposits totaled approximately HKD 4,361 million, down from HKD 7,771 million at the end of 2022, with investments in investment-grade debt securities amounting to HKD 997 million[38] - The valuation of the investment property portfolio as of June 30, 2023, was HKD 96,732 million, a slight decrease of 0.1% from HKD 96,787 million at the end of 2022, with a fair value loss of HKD 754 million recognized during the period[27] - The net asset value decreased to HKD 81,807 million from HKD 83,411 million, reflecting a decline of 1.9%[47] Operational Efficiency - Operating expenses as a percentage of revenue increased to 25.4% from 22.1% in 2022, primarily due to rising electricity costs and the impact of the Lee Garden optimization project[25] - Financial expenses rose to HKD 231 million, up from HKD 172 million in the first half of 2022, attributed to the rising interest rate environment with an effective interest rate of 3.9% compared to 2.4% in the same period last year[26] - The group’s administrative expenses for the period were HKD 145 million, compared to HKD 145 million in the previous year, indicating no change[55] Investments and Joint Ventures - The company holds a 26% stake in the resilient investment property Hong Kong Plaza, which has shown strong performance despite pandemic-related challenges in Shanghai [22] - The joint venture with IWG plc operates 36 shared workspace locations in the Greater Bay Area, with plans for further expansion in the growing market [23] - The investment in New Wind Tianyu Group, a leading private healthcare provider in mainland China, continues to grow rapidly, capitalizing on the demand for quality healthcare services [24] Other Financial Metrics - The fair value change of investment properties resulted in a loss of HKD 754 million, compared to a loss of HKD 985 million in the previous year, showing an improvement of 23.4%[42] - Share of profits from associates was HKD 146 million, slightly down from HKD 147 million in 2022, while losses from joint ventures increased to HKD 17 million from HKD 8 million due to the launch of the Tai Po residential project[28] - The total segment revenue for the group was HKD 745 million, down from HKD 762 million, reflecting a decrease of 2.2%[55] - The total segment profit attributable to the group was HKD 630 million, compared to HKD 641 million in the prior year, indicating a decline of 1.7%[55]