Financial Performance - Hysan's overall revenue increased by 6.2% to HK$3409 million in 2024[39] - HK Retail revenue saw a significant increase of 9.5% year-over-year[41] - HK Office revenue experienced a slight decrease of 1.5% year-over-year[41] - The year-end occupancy for HK Retail was 92%[40], compared to 97% in 2023[40] - The year-end occupancy for HK Office was 90%[40], slightly up from 89% in 2023[40] - The year-end occupancy for Residential was 73%[40], up from 60% in 2023[40] Capital Management - The company has HK$18.9 billion in undrawn committed facilities and cash[61] - The net gearing ratio is 31.4%[61] - The effective interest rate is 4.3%[61] - Sustainable finance accounts for 40% of the company's finances[61]

Financial Data and Key Metrics Changes - The revenue for the first half of 2024 was HKD 2.4 billion, representing a 5% year-on-year growth [13] - Retail revenue increased by 10.8% due to the reopening of rejuvenated areas and positive rental reversion [14] - Office revenue decreased by 2.8% due to rental pressure, but occupancy remained stable at 89% [13][14] - Residential revenue and occupancy showed recovery, with Lee Gardens Shanghai starting to contribute [14] - Shareholders' funds remained stable, with NAV per share at HKD 65 [22] Business Line Data and Key Metrics Changes - Retail occupancy was at 95%, office at 89%, and residential at 68% [13] - The loyalty program saw a 38% increase in member spending compared to 2018, contributing 13% to total retail sales [16] - Over 50 new brands opened in the last year, with further key openings planned [15] Market Data and Key Metrics Changes - The company attracted over 100,000 daily visitors to the Lee Gardens area [5] - The retail sales performance aligned with Hong Kong's overall retail sales trends, facing pressure from changing consumption patterns [15] Company Strategy and Development Direction - The company is focused on the rejuvenation of Lee Gardens, which includes expanding luxury brand flagship stores and enhancing the shopping experience [4][6] - Strategic pillars have been established to complement core operations, including a joint venture with IWG for flexible office solutions [8][9] - The completion of Lee Gardens 8 and an integrated pedestrian walkway system is expected by 2026, reinforcing the company's position in the market [7][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the flexible workspace sector and the ongoing transformation of Lee Gardens [9][10] - The company is in a harvesting phase, with rejuvenation projects starting to contribute positively to revenue [24] - Management emphasized the importance of innovation and adapting to changing consumer preferences in the retail landscape [5][10] Other Important Information - The company has a strong liquidity position with around HKD 3 billion in cash and additional committed facilities [22] - A syndication loan with 20 banks was signed in July to strengthen the capital base [22] Q&A Session Summary Question: Dividend policy and stability - Management reiterated their commitment to a steady and progressive dividend policy while balancing operational performance and capital commitments [30][32] Question: Bank covenants and credit rating metrics - The gearing ratio is around one-third, with a comfortable buffer for refinancing debts [33][34] Question: Ideal tenant mix for Lee Garden 8 - The focus will be on a balanced portfolio including financial institutions, wealth management, and medical sectors [35] Question: Latest occupancy cost and rental reversion - The occupancy cost ratio is in the high teens percentage, with positive rental reversion expected for the rest of the year [46][47] Question: Construction costs and timing for Lee Garden 8 - Construction contracts are within budget, and completion is targeted for mid-2026 [59][60]