Di Yi Cai Jing·2025-07-30 14:15Core Viewpoint - Hang Lung Properties reported a 19% year-on-year decline in total revenue for the first half of 2025, amounting to HKD 4.968 billion, with core rental income also showing a downward trend [2] Group 1: Revenue Performance - The rental income from properties decreased by 3% year-on-year, totaling HKD 4.678 billion, with mainland property rental income down by 2% to HKD 3.19 billion [2] - The overall performance of the mainland shopping mall portfolio remained stable, generating RMB 2.412 billion in revenue, with a notable 8% decline in tenant sales attributed to cautious high-end consumer spending [2][3] - Shanghai Hang Lung Plaza led the revenue among malls with RMB 0.822 billion, maintaining a high occupancy rate of 98% [2] Group 2: Challenges and Strategies - The rental income from smaller projects in Tianjin, Wuhan, and Shenyang saw significant declines, with the largest drop exceeding 35% [3] - The office properties faced pressure, with overall income down 5% to RMB 0.528 billion, primarily due to decreased occupancy rates and rental adjustments [3] - The CEO expressed confidence in achieving slight rental income growth in the latter half of the year, despite the current downward trend [3] Group 3: Future Developments - The construction of Hangzhou Hang Lung Plaza, acquired for over RMB 10 billion in 2018, is nearing completion, with the mall expected to open in mid-2026 and a pre-leasing rate of 81% [4] - The company plans to expand by leasing additional properties in Hangzhou, which will increase the project size by 40% and enhance the shopping experience [5]