Core Viewpoint - The China Securities Index for Hong Kong Stock Connect Real Estate has shown positive performance, with a 2.32% increase over the past month, 5.66% over the past three months, and a 4.20% increase year-to-date [1]. Group 1: Index Performance - The China Securities Index for Hong Kong Stock Connect Real Estate reported a current value of 1491.62 points [1]. - The index was established on November 14, 2014, with a base value of 3000.0 points [1]. Group 2: Index Composition - The index includes a maximum of 50 eligible Hong Kong-listed companies that meet the real estate theme criteria [1]. - The top ten weighted companies in the index are: - Sun Hung Kai Properties (15.33%) - China Resources Land (11.68%) - Cheung Kong Property (8.89%) - China Overseas Land & Investment (7.48%) - Sino Land (4.72%) - Henderson Land Development (4.62%) - Wharf Real Estate Investment (4.57%) - Longfor Group (3.58%) - China Resources Mixc Lifestyle (3.32%) - Wharf Holdings (3.18%) [1]. Group 3: Market and Sector Allocation - The index's holdings are entirely composed of real estate companies, with a 100% allocation to the real estate sector [2]. - The index is exclusively composed of companies listed on the Hong Kong Stock Exchange, with a 100% allocation to this market [1].

Group 1 - The core index of the China Securities Index for Hong Kong Stock Connect Real Estate has shown a decline of 6.37% over the past month, an increase of 5.16% over the past three months, and a year-to-date increase of 1.84% [1] - The index is composed of no more than 50 eligible Hong Kong-listed companies that reflect the overall performance of the real estate sector, with a base date of November 14, 2014, and a base point of 3000.0 [1] - The top ten weighted companies in the index include New World Development (13.69%), China Resources Land (13.0%), and Cheung Kong Property (8.51%) among others [1] Group 2 - The market segment of the index's holdings is entirely composed of the Hong Kong Stock Exchange, with a 100.00% allocation [2] - The index's sample is exclusively focused on the real estate industry, with a 100.00% allocation to this sector [3] - The index samples are adjusted biannually, with adjustments occurring on the next trading day following the second Friday of June and December [3]

Land Reserves and Property Development - As of the end of 2024, the group's land reserves in Hong Kong amount to approximately 2.8 million square feet, with about 550,000 square feet located on The Peak[5] - The group's unsold land reserves for development properties in mainland China stand at 1.2 million square meters, primarily consisting of commercial properties due to market oversupply[5] - The total developed and undeveloped inventory amounts to 1.2 million square meters, down from 1.4 million square meters as of December 31, 2023[47] - The group has not directly acquired new land since 2019, leading to a reduction in both sales projects and unsold inventory[47] - The land bank consists of 2.8 million square feet in Hong Kong and 1.2 million square meters in mainland China[129] Financial Performance - The group's revenue decreased by 36% to HKD 12.11 billion, primarily due to a decline in recognized sales from unsold development properties[19] - The operating profit fell by 18% to HKD 5.64 billion, reflecting weak performance across most segments[26] - The basic net profit decreased by 22% to HKD 2.80 billion, with a significant increase in impairment provisions for development properties to HKD 21.25 billion[19] - Total revenue fell by 36% to HKD 12.115 billion (2023: HKD 18.95 billion), with operating profit decreasing by 18% to HKD 5.644 billion (2023: HKD 6.896 billion) mainly driven by property development[96] - Revenue from property development dropped 74% to HKD 2.255 billion (2023: HKD 8.562 billion), while operating profit fell 61% to HKD 466 million (2023: HKD 1.202 billion)[96] - The net impairment loss on investment properties was HKD 5.999 billion (2023: HKD 1.617 billion), impacting the overall financial performance significantly[99] - Shareholders' attributable loss was HKD 3.224 billion (2023: profit of HKD 0.945 billion), with basic loss per share of HKD 1.05 (2023: earnings of HKD 0.31)[104] - The group's underlying net profit decreased by 22% to HKD 2.798 billion (2023: HKD 3.566 billion) primarily due to a decline in recognized sales and increased impairment provisions for properties in mainland China[95] Hotel Operations - The group operates 16 hotels under the brands Niccolo, Marco Polo, and Moko, with four fully owned and one with a 50% stake; a new hotel under the Hyatt brand is set to open in June 2024[6] - The hotel division experienced a decline in room rates due to increased competition and changing customer preferences[18] - The hotel division's revenue increased by 1% to HKD 610 million, but operating profit decreased by 90% to HKD 11 million[58] - The group plans to introduce the first Hyatt hotel in Central China at Changsha International Finance Center in June 2024[18] Economic Environment and Market Conditions - The overall economic environment remains challenging, with geopolitical risks and trade tensions affecting international capital flows and market sentiment[16] - The central government in mainland China has implemented significant monetary stimulus measures to stabilize the real estate market and promote domestic consumption[17] - Future outlook indicates potential economic volatility due to geopolitical tensions and the effectiveness of fiscal support measures in the mainland real estate sector[23] - The optimized "New Capital Investor Entry Scheme" has sparked strong interest from high-net-worth buyers in luxury properties in Hong Kong[17] Sustainability and Corporate Responsibility - The group has committed to establishing science-based carbon reduction targets and has submitted recent goals for verification to the Science Based Targets initiative (SBTi)[6] - The group received recognition as the third highest fundraising organization for the 2023/24 Community Chest and maintained its position in the Hang Seng Sustainable Development Index with an AA+ ESG rating[7] - The group has been recognized in the Hang Seng Sustainable Development Index series since 2014, highlighting its commitment to sustainable business practices[78] - The group aims to achieve carbon reduction and other environmental goals by 2030, aligning with global carbon neutrality agendas[83] - The group has identified significant climate-related risks, including acute risks from extreme weather events and chronic risks from long-term changes, which could impact operations and increase costs[81] - The group has secured over HKD 20.3 billion in sustainable finance loans to enhance environmental sustainability across various projects[86] Governance and Board Structure - The board consists of 12 directors, with 5 executive directors and 7 independent non-executive directors, ensuring a balanced skill set and diverse perspectives[140] - Female representation on the board is 25%, with 3 women among the 12 directors, reflecting the company's commitment to gender diversity[141] - Independent non-executive directors make up 58% of the board, enhancing independent judgment and governance[149] - The company has adopted a Nomination Policy to ensure a sustainable and diverse board composition, aligning with business needs[152] - The board will review the performance of independent non-executive directors annually to maintain their independence and effectiveness[151] - The company emphasizes the importance of a diverse board for achieving strategic goals and sustainable development[140] Risk Management and Internal Controls - The risk management and internal control committee plays a crucial role in overseeing the effectiveness of the group's risk management and internal control systems[184] - The audit committee is responsible for continuously monitoring and evaluating the effectiveness of the risk management and internal control systems, reporting to the board[183] - The group has established internal monitoring functions at all levels to prevent significant errors and omissions[185] - The risk management and internal control system is dynamic and integrated into daily operations, with clear delineation of responsibilities[186] - The group has implemented a whistleblowing policy to allow employees and stakeholders to report concerns confidentially without fear of retaliation[187] Shareholder Communication and Engagement - The company values transparent communication with shareholders and investors, aiming to provide timely and fair disclosure of key information[194] - The company holds at least one annual general meeting to interact directly with shareholders, allowing board members and management to address shareholder inquiries[199] - The company regularly updates its website with investor relations information, including performance announcements and presentations following interim and annual results[198] - The company has established a shareholder communication policy to ensure shareholders have access to clear and understandable information[196] - The company emphasizes shareholder privacy, protected under the Shareholder Communication Policy, and will not disclose shareholder information without consent unless legally required[200]

Core Viewpoint - *ST Xulan's stock price has been under significant pressure, with a continuous decline leading to potential delisting risks due to prolonged low trading prices [1][3][5] Trading Information Summary - As of March 28, 2025, *ST Xulan's stock closed at 0.52 yuan, down 22.39% from the previous week, marking a near one-year low [1] - The stock has appeared on the trading alert list due to a cumulative decline of 12% over three consecutive trading days [2][5] - Large transactions occurred on March 24, 25, and 26, with amounts of 28.99 thousand yuan, 104.19 thousand yuan, and 59.46 thousand yuan respectively [2] Company Announcement Summary - *ST Xulan's stock price has been below 1 yuan for 18 consecutive trading days, facing delisting risks if it remains below this threshold for 20 days [3][5] - The company reported a projected net loss for 2024 between 30 million yuan and 50 million yuan, with potential bad debt provisions reaching up to 9.6 billion yuan [3][5] - Non-operational fund occupation amounts to 7.527 billion yuan, which has not been rectified [3] - The company and its major shareholders are under investigation by the China Securities Regulatory Commission for failing to disclose the 2023 annual report and other violations [3][5]

Group 1 - *ST Aonong (603363.SH) issued its fifth risk warning on March 28, 2025, regarding the potential termination of its stock listing if it fails to meet the criteria set by the Shanghai Stock Exchange for the 2024 fiscal year [1] - *ST Jiayu (300117.SZ) released its tenth risk warning on March 28, 2025, indicating that its stock has closed below 1 yuan for eighteen consecutive trading days, facing the risk of termination of listing [1] - *ST Gongzhi (000584.SZ) announced its fifth risk warning on March 28, 2025, stating that its stock may be terminated if it falls under the conditions specified in the Shenzhen Stock Exchange listing rules for the 2024 fiscal year [1] Group 2 - *ST Furun (600070.SH) issued a risk warning on March 28, 2025, about the potential termination of its stock listing due to its stock price being below 1 yuan and market capitalization below 500 million yuan, having closed below 1 yuan for eleven consecutive trading days [1] - *ST Xulan (000040.SZ) published its tenth risk warning on March 28, 2025, noting that its stock has also closed below 1 yuan for eighteen consecutive trading days, facing termination risk [2] - *ST Pengbo (600804.SH) released a risk warning on March 28, 2025, indicating that if its 2024 financial report receives a qualified opinion, disclaimer, or adverse opinion, the Shanghai Stock Exchange may decide to terminate its listing [2]

Financial Performance - The group's underlying net profit decreased to HKD 2.798 billion (2023: HKD 3.566 billion), equivalent to HKD 0.92 per share (2023: HKD 1.17 per share), primarily due to a reduction in recognized sales from property development in mainland China and an increase in impairment provisions to HKD 2.018 billion (2023: HKD 1.855 billion) [4] - The group recorded a loss attributable to shareholders of HKD 3.224 billion (2023: profit of HKD 0.945 billion), with a basic loss per share of HKD 1.05 (2023: basic earnings of HKD 0.31) [4] - Group revenue fell by 36% to HKD 12.115 billion (2023: HKD 18.95 billion), with operating profit decreasing by 18% to HKD 5.644 billion (2023: HKD 6.896 billion) [15] - The company reported a net loss of HKD 2,611 million for the year, compared to a profit of HKD 1,105 million in 2023 [47] - The group reported a total loss before tax of HKD 6,316 million for the fiscal year ending December 31, 2024, compared to a profit of HKD 2,195 million in the previous year [56] Revenue Breakdown - Revenue from property development in mainland China decreased to RMB 1.4 billion (2023: RMB 2.6 billion), with unrecognized sales at year-end dropping to RMB 0.6 billion (2023: RMB 2.3 billion) [7] - The overall revenue from investment properties fell by 4% to HKD 45.71 billion, with operating profit declining by 6% to HKD 29.83 billion [8] - Development property revenue plummeted by 74% to HKD 2.255 billion (2023: HKD 8.562 billion), with operating profit down 61% to HKD 466 million (2023: HKD 1.202 billion) [15] - The logistics infrastructure segment's overall revenue decreased by 7% to HKD 2.205 billion, with operating profit down 17% to HKD 315 million [10] - The investment property segment reported a revenue of HKD 4,644 million, down from HKD 4,843 million in the previous year, reflecting a decrease of about 4.1% [56] Impairment and Expenses - The net impairment loss on investment properties was HKD 59.9 billion (2023: HKD 16.17 billion) as of December 31, 2024 [17] - Other net expenses amounted to HKD 2.271 billion (2023: HKD 1.6 billion), primarily due to impairment provisions for mainland development properties [19] - The company recorded an impairment provision of HKD 16.04 billion for properties developed in mainland China, compared to HKD 4.89 billion in 2023 [71] - The group reported a net other expenses of HKD 22,731 million in 2024, compared to HKD 16,000 million in 2023, an increase of approximately 42.7% [70] Taxation and Equity - The group recorded a tax credit of HKD 3.705 billion (2023: tax expense of HKD 1.09 billion), mainly due to the reversal of deferred tax provisions related to past revaluation surpluses [22] - Shareholders' equity decreased by 4% to HKD 136.8 billion as of December 31, 2024, compared to HKD 143 billion in December 2023, equivalent to HKD 44.77 per share [26] - The group's total tax expense for the year was HKD 3.705 billion, compared to HKD 1.09 billion in 2023 [72] Assets and Liabilities - Total assets decreased to HKD 190,039 million in 2024 from HKD 204,877 million in 2023, reflecting a decline of 7.2% [49] - Total operating assets fell by 7% to HKD 179.6 billion, down from HKD 192.8 billion in December 2023, with real estate, logistics, and investment assets accounting for 69%, 8%, and 23% respectively [27] - Net debt decreased by 9% to HKD 7.1 billion, with a net debt to total equity ratio of 5.0% [34] Future Outlook and Strategy - The group expects significant economic fluctuations due to geopolitical tensions, trade wars, and changes in U.S. Federal Reserve interest rates [11] - The group will continue to focus on core competencies and prudent financial management to drive development amid complex market conditions [12] Dividends - The group declared a total dividend of HKD 0.40 per share for the fiscal year 2024, unchanged from 2023 [5] - The total declared and paid dividend per share for 2024 was HKD 0.40, totaling HKD 1.222 billion, consistent with the previous year [75] Employment and Compensation - The company employed approximately 6,400 staff as of December 31, 2024, with compensation based on market trends and performance [43] Meeting and Shareholder Information - The annual general meeting of Kowloon Warehouse Group Limited is scheduled for May 13, 2025, at 11:15 AM [82] - Share transfer documents must be submitted by May 7, 2025, at 4:30 PM to participate in the annual general meeting [83] - The record date for shareholders is set for May 8, 2025 [82]

Financial Performance - The group's underlying net profit increased by 9% to HKD 1.979 billion, compared to HKD 1.81 billion in the previous year, primarily due to a reduction in property impairment provisions to HKD 560 million from HKD 1.033 billion [2]. - The group reported a loss attributable to shareholders of HKD 26.373 billion, compared to a profit of HKD 6.969 billion in the previous year, after accounting for non-cash impairment losses on investment properties [2][11]. - Group revenue decreased by 14% to HKD 7.032 billion (2023: HKD 8.133 billion) and operating profit decreased by 2% to HKD 3.085 billion (2023: HKD 3.139 billion) [13]. - The net loss for the period was HKD 2,558 million, compared to a profit of HKD 735 million in the same period last year, indicating a significant downturn [38]. - The group reported a total comprehensive loss of HKD 7,631 million for the period, compared to a loss of HKD 5,420 million in 2023 [38]. Revenue Breakdown - Revenue from the development properties segment decreased by 2% to HKD 305 million, while operating profit surged by 113% to HKD 179 million [5]. - Overall revenue from the mainland investment properties segment fell by 4% to HKD 2.326 billion, with operating profit declining by 6% to HKD 1.551 billion [6]. - Investment property income decreased by 5% to HKD 2.364 billion (2023: HKD 2.488 billion) and operating profit decreased by 6% to HKD 1.573 billion (2023: HKD 1.679 billion) due to soft rental rates in mainland shopping malls and offices [12]. - Development property revenue fell by 25% to HKD 2.028 billion (2023: HKD 2.688 billion), but operating profit increased to HKD 387 million (2023: HKD 54 million) with an overall operating margin of 19% (2023: 2%) due to the completion of a project in Hangzhou [12]. - The hotel segment's revenue decreased by 2% to HKD 291 million, with operating profit plummeting by 73% to HKD 12 million [8]. Dividends and Shareholder Returns - The interim dividend remains unchanged at HKD 0.20 per share, with a total payout of HKD 610 million, consistent with the previous year [3]. - The company's interim dividend declared was HKD 0.20 per share, totaling HKD 611 million, consistent with the previous year [59]. Debt and Financial Position - The group maintains a low debt ratio of 6.2%, with most borrowings denominated in RMB to mitigate the impact of high U.S. interest rates [4]. - Net debt increased by 11% to HKD 8.7 billion, with a debt-to-equity ratio of 6.2% [27]. - The group recognized a tax expense of HKD 2,985 million for the period, compared to HKD 676 million in 2023, influenced by deferred tax adjustments [56]. - The average effective borrowing interest rate decreased to 3.9% for the period, compared to 4.9% in 2023 [54]. Market Conditions and Outlook - The business outlook remains uncertain due to economic instability, geopolitical risks, and challenges in the mainland real estate market, prompting the group to adopt a cautious financial strategy [10]. - The mainland China market contributed HKD 5,028 million in revenue, down from HKD 5,876 million in the previous year, indicating a decline of about 14.4% [51]. Assets and Investments - Total operating assets decreased by 7% to HKD 178.7 billion, with real estate, logistics, and investment assets accounting for 69%, 10%, and 21% respectively [22]. - Long-term investments valued at HKD 37.7 billion, with a fair value loss of HKD 4.9 billion during the period [25]. - The fair value change of equity investments resulted in a loss of HKD 4,920 million for the period, compared to a loss of HKD 4,224 million in the previous year [38]. Employee and Management Information - The group employed approximately 5,700 staff as of June 30, 2024, with around 1,000 in management roles [36]. - The annual remuneration for the chairman is set at HKD 350,000 for 2024, an increase from HKD 300,000 in 2023 [87]. - The annual remuneration for directors (excluding the chairman) is now HKD 300,000, up from HKD 250,000 in 2023 [87]. Corporate Governance - The company has complied with the corporate governance code, with the exception of the chairman and CEO roles being held by the same individual, deemed appropriate for strategic execution [76]. - All directors have adhered to the company's securities trading code during the reporting period [77].

Profit and Loss Performance - Group's underlying net profit increased by 9% to HKD 1.979 billion, primarily due to a reduction in development property provisions to HKD 564 million (2023: HKD 1.033 billion)[3] - The group reported a loss of HKD 2.637 billion due to investment property revaluation impairments and other unrealized accounting losses (2023: profit of HKD 696 million)[3] - Group's underlying net profit increased by 9% to HKD 1.979 billion (2023: HKD 1.811 billion), primarily due to reduced impairment provisions for development properties[13] - Group revenue decreased by 14% to HKD 7.032 billion (2023: HKD 8.13 billion), with operating profit down 2% to HKD 3.085 billion (2023: HKD 3.139 billion)[14] - Investment property revaluation impairment amounted to HKD 4.481 billion (2023: HKD 356 million), leading to a group loss attributable to shareholders of HKD 2.637 billion (2023: profit of HKD 696 million)[15][21] - Basic and diluted loss per share for the six months ended June 30, 2024, is HKD 0.86, compared to a profit of HKD 0.23 in the same period in 2023[35] - Revenue for the six months ended June 30, 2024, is HKD 7,032 million, down from HKD 8,130 million in the same period in 2023[36] - Net loss for the six months ended June 30, 2024, is HKD 2,558 million, compared to a net profit of HKD 735 million in the same period in 2023[36] - Total comprehensive loss for the six months ended June 30, 2024, is HKD 7,631 million, compared to HKD 5,420 million in the same period in 2023[38] - Group total revenue declined to HKD 7,032 million in H1 2024 from HKD 8,130 million in H1 2023, a decrease of 13.5%[43] - Group total operating profit fell to HKD 3,085 million in H1 2024 from HKD 3,139 million in H1 2023, a slight decrease of 1.7%[43] - Group total revenue decreased to HKD 7,032 million in 2024 from HKD 8,130 million in 2023, a decline of 13.5%[44] Property Development and Sales - Mainland China development property contracted sales dropped to RMB 700 million (2023: RMB 1.4 billion), with unsold inventory at 1.3 million square meters (2023: 1.4 million square meters)[8] - Development property revenue fell 25% to HKD 2.028 billion (2023: HKD 2.688 billion), but operating profit rose to HKD 387 million (2023: HKD 54 million), with a gross margin improvement to 19% (2023: 2%)[14] - Signed sales contracted by 41% to HKD 1.066 billion (2023: HKD 1.808 billion), with Hong Kong sales down 13% to HKD 300 million and mainland China sales down 48% to RMB 699 million[22] - Unrecognized sales decreased by 74% to RMB 575 million (December 2023: RMB 2.275 billion)[22] - Development properties segment revenue dropped to HKD 2,028 million in H1 2024 from HKD 2,688 million in H1 2023, a decrease of 24.6%[43] - Development properties segment operating profit increased to HKD 387 million in H1 2024 from HKD 54 million in H1 2023, a significant rise of 616.7%[43] - Revenue from property development sales dropped to HKD 2,028 million in 2024 from HKD 2,688 million in 2023, a decrease of 24.6%[44] Investment Properties - Mainland China investment property revenue decreased by 4% to HKD 2.326 billion, with operating profit down 6% to HKD 1.551 billion[7] - Investment property profit decreased by 5% to HKD 1.207 billion (2023: HKD 1.275 billion), while development property loss narrowed to HKD 462 million after deducting impairment provisions of HKD 564 million (2023: HKD 1.033 billion)[13] - Investment properties portfolio decreased to HKD 633 billion, representing 35% of total operating assets, with Hong Kong and Mainland China properties valued at HKD 180 billion and HKD 453 billion respectively[25][26] - Investment properties segment revenue decreased to HKD 2,364 million in H1 2024 from HKD 2,480 million in H1 2023, a decline of 4.7%[43] - Investment properties segment operating profit decreased to HKD 1,573 million in H1 2024 from HKD 1,679 million in H1 2023, a decline of 6.3%[43] Logistics and Infrastructure - Logistics infrastructure revenue fell by 12% to HKD 1.073 billion, with operating profit down 39% to HKD 123 million, impacted by reduced throughput in Hong Kong[11] - Logistics revenue decreased by 12% to HKD 1.073 billion (2023: HKD 1.221 billion), with operating profit down 39% to HKD 123 million (2023: HKD 203 million)[14] - Logistics segment revenue fell to HKD 1,073 million in H1 2024 from HKD 1,221 million in H1 2023, a reduction of 12.1%[43] - Logistics segment operating profit dropped to HKD 123 million in H1 2024 from HKD 203 million in H1 2023, a decrease of 39.4%[43] - Revenue from logistics decreased to HKD 1,073 million in 2024 from HKD 1,221 million in 2023, a decline of 12.1%[44] Financial Position and Debt - The group maintains a low debt ratio of 6.2%, with most borrowings denominated in RMB to mitigate the impact of high US interest rates[5] - Net debt increased by 11% to HKD 8.7 billion, with a net debt to total equity ratio of 6.2%, maintaining a low level[29] - Available credit facilities and issued debt securities totaled HKD 347 billion, with HKD 193 billion utilized, and HKD 116 billion of liabilities secured by properties and equipment with a total book value of HKD 393 billion[30] - The company's average effective borrowing rate decreased to 3.9% in 2024 from 4.9% in 2023[48] Dividends and Shareholder Returns - The first interim dividend remains unchanged at HKD 0.20 per share, with a total payout of HKD 611 million (2023: HKD 611 million)[4] - The company declared an interim dividend of HKD 0.20 per share, totaling HKD 611 million, unchanged from 2023[49] - The interim dividend ex-date is set for August 27, 2024, with the payment date on September 12, 2024[56] Operating Assets and Liabilities - Total operating assets (excluding bank deposits, cash, certain financial and deferred tax assets) decreased by 7% to HKD 1,787 billion, with Hong Kong, Mainland China, and overseas assets accounting for 51%, 44%, and 5% respectively[24] - Development properties assets decreased by 4% to HKD 358 billion, with Hong Kong and Mainland China properties valued at HKD 299 billion and HKD 59 billion respectively[27] - Long-term investments totaled HKD 377 billion, with listed equities accounting for HKD 300 billion, primarily held for long-term capital growth and/or reasonable dividend income[28] - Total assets as of June 30, 2024, are HKD 190,012 million, down from HKD 204,877 million as of December 31, 2023[39] - Total liabilities as of June 30, 2024, are HKD 50,147 million, down from HKD 56,674 million as of December 31, 2023[39] - Net assets as of June 30, 2024, are HKD 139,865 million, down from HKD 148,203 million as of December 31, 2023[39] Operating Cash Flow and Expenditure - Operating cash inflow before working capital changes was HKD 2.3 billion, with a net cash inflow from operating activities of HKD 500 million, and a net cash outflow from investing activities of HKD 700 million, mainly due to net purchases of long-term investments[31] - Total capital and development expenditure for 2024 is HKD 2,387 million, with HKD 1,099 million in Hong Kong and HKD 1,142 million in Mainland China[32] - Future fiscal year's major expenditure is estimated at HKD 21.425 billion, with HKD 7.432 billion already committed and HKD 13.993 billion not yet committed[33] Employee and Operational Costs - The company employs approximately 5,700 people, with about 1,000 in management roles[34] - Employee costs decreased to HKD 817 million in 2024 from HKD 825 million in 2023, a decline of 1.0%[46] - Total depreciation and amortization decreased to HKD 352 million in 2024 from HKD 356 million in 2023, a slight decline of 1.1%[46] - Net other expenses decreased to HKD 864 million in 2024 from HKD 997 million in 2023, a decline of 13.3%[47] Payables and Trade Liabilities - Trade payables decreased to HKD 748 million from HKD 883 million, with a notable reduction in the 0-30 days category from HKD 345 million to HKD 240 million[53] - Rent and customer deposits decreased to HKD 1,391 million from HKD 1,354 million[53] - Construction cost payables decreased to HKD 3,931 million from HKD 4,851 million[53] - Payables to associates increased to HKD 8,023 million from HKD 8,013 million[53] - Payables to joint ventures increased to HKD 2,005 million from HKD 1,823 million[53] - Other payables decreased to HKD 2,748 million from HKD 2,920 million[53] - Total group payables decreased to HKD 18,846 million from HKD 19,844 million[53] Audit and Compliance - The company's unaudited interim financial data for the six months ended June 30, 2024, was reviewed by the audit committee with no differing opinions[54] - The company did not purchase, sell, or redeem any of its listed securities during the financial period[56] Regional Performance - Hong Kong property sales saw a temporary boost post-stamp duty removal, with Mount Nicholson selling a unit for HKD 600 million at HKD 131,000 per square foot[6] - Operating profit in Hong Kong decreased to HKD 1,166 million in 2024 from HKD 1,301 million in 2023, a decline of 10.4%[45] - Operating profit in Mainland China increased to HKD 1,865 million in 2024 from HKD 1,736 million in 2023, a growth of 7.4%[45] Hotel Segment - Hotel segment revenue decreased by 2% to HKD 291 million, with operating profit down 73% to HKD 12 million[10] - The group opened a new hotel under the Park Hyatt brand in Changsha, marking the first non-self-operated hotel owned by the group since the 1980s[10]

Land Reserve and Development Projects - The company's attributable land reserve totals 2.8 million square feet, with approximately 600,000 square feet located on the Peak, including projects such as No. 1 Plantation Road, Kowloon Tong Residential Project, Kai Tak Residential Project (30% interest), and Kowloon Godown Redevelopment Project[3] - The company's unsold land reserve for development properties in mainland China decreased to approximately 1.4 million square meters by the end of 2023[3] - Total land reserve was 2,787,000 square feet, with the Kowloon Tong residential project accounting for 436,000 square feet and the Kowloon East property portfolio accounting for 1,802,000 square feet[23] - The group's land reserves include 2.8 million square feet in Hong Kong and 1.4 million square meters in mainland China, with flagship projects in both regions[71] Hotel Operations - The company manages 16 hotels in Hong Kong, mainland China, and the Philippines, offering over 5,000 rooms and suites, including five Niccolo hotels and ten Marco Polo hotels, with the new lifestyle hotel brand Mǎkè opening its first property in Changsha IFS in November 2023[3] - The company launched a new high-end lifestyle hotel brand, Marco, with the first hotel opening in Changsha IFS in November 2023, and currently operates or owns 16 hotels in Hong Kong, mainland China, and the Philippines[30] - The Hong Kong Murray Hotel was awarded a 5-star rating in the 2023 Forbes Travel Guide[39] - The Changsha Niccolo Hotel won the THAT'S Hotel Industry Award for Luxury Hotel of the Year[39] - The Chengdu Niccolo Hotel was recognized as one of the Top 100 Hotels in China in 2022[39] - The Chongqing Niccolo Hotel was awarded the City Life Award for Destination Cloud Luxury Hotel of the Year in 2023[39] - The Suzhou Niccolo Hotel was named the Luxury Art Landmark of the Year by Go Travelling[39] - The Marco Polo Hongkong Hotel's restaurant received a 4-star rating in the 2023 Forbes Travel Guide[39] - The Wuhan Marco Polo Hotel was listed as one of the top luxury hotels in Wuhan by Ctrip[39] - The Changsha Marco Polo Hotel won the THAT'S Hotel Industry Award for Best Newly Opened Hotel[39] - Hotel revenue rebounded by 66% to HKD 611 million, recording an operating profit of HKD 107 million[52] - The hotel segment manages 16 hotels across Asia, with five being wholly or partially owned by the group[183] Logistics and Infrastructure - The company's logistics infrastructure includes Modern Terminals, a major container terminal operator in Hong Kong and Shenzhen, and Hong Kong Air Cargo Terminals, both crucial to maintaining Hong Kong's status as an international trade and transportation hub[3] - Logistics and infrastructure segment revenue decreased by 20% to HKD 2.37 billion, and operating profit decreased by 50% to HKD 378 million[31] - Modern Terminals' throughput in Hong Kong decreased by 15% to 3.7 million TEUs, while throughput at Dachan Bay Terminal (65% owned) in Shenzhen decreased by 5% to 1.9 million TEUs, and Shekou Container Terminal (20% owned) increased by 2% to 6.1 million TEUs[32] - Hong Kong Air Cargo Terminals (21% owned) handled a total cargo volume of 1.6 million tons, a decrease of 2%[33] - Modern Terminals received the 2023 Outstanding Corporate Partner Excellence Award from Hong Kong Customs[40] - The logistics segment includes container terminal operations in Hong Kong and mainland China, as well as air cargo handling services[183] Sustainability and ESG - The company has set a 2030 target to minimize carbon emissions and explore energy efficiency and renewable energy in its operations[4] - The company was awarded the third-highest fundraising organization by the Community Chest for 2022/23 and maintains its position as a constituent of the Hang Seng Sustainability Index Series, with an ESG rating of AA+[4] - The company aims to minimize carbon emissions by 2030, with projects like solar panel installations increasing solar power generation to 431,000 kWh annually[13] - The company raised approximately HKD 14.8 billion through green loans and sustainability-linked loans by 2023[47] - The company conducts climate risk assessments and scenario analyses to identify significant physical and transitional risks and opportunities related to climate change[163] - The company has implemented a Climate Change Policy Statement and is enhancing climate resilience through energy optimization, renewable energy adoption, and green procurement[163] Financial Performance - The company declared a second interim dividend of HK$0.20 per share for 2023, with the record date set for April 10, 2024, and the payment date for April 25, 2024[8] - The company's total revenue increased by 5% to HKD 18.95 billion, driven by development properties and higher dividend income[12] - Basic net profit rose to HKD 3.566 billion, primarily due to a reduction in development property impairment provisions by HKD 3.804 billion[12] - Total assets reached HKD 204.9 billion, with a net debt of HKD 7.8 billion and a low debt-to-equity ratio of 5.3%[12] - The company declared a second interim dividend of HKD 0.20 per share, maintaining the total annual dividend at HKD 0.40 per share[12] - The company's total income for 2023 was HKD 18.95 billion, with operating profit at HKD 6.896 billion, marking a 4% increase[16] - Basic net profit per share was HKD 0.40, and shareholder profit/(loss) per share was HKD 46.79[19] - Group's underlying net profit increased to HKD 3.566 billion, primarily due to a decrease in provisions for development properties to HKD 1.933 billion[52] - Group revenue increased by 5% to HKD 18.95 billion, with operating profit up 4% to HKD 6.896 billion[52] - Investment properties revenue slightly decreased by 1% to HKD 4.843 billion, with operating profit also down 1% to HKD 3.207 billion[52] - Development properties revenue rose 15% to HKD 8.562 billion, with operating profit up 32% to HKD 1.232 billion[52] - Logistics revenue decreased by 20% to HKD 2.37 billion, with operating profit down 50% to HKD 378 million[52] - Investment operating profit increased by 34% to HKD 2.03 billion, driven by higher dividend income[52] - Unrealized revaluation loss on investment properties amounted to HKD 1.617 billion as of December 31, 2023[53] - Other net expenses totaled HKD 1.6 billion, including impairment provisions for development properties of HKD 489 million[54] - Financial expenses increased by 40% to HKD 905 million, with the actual borrowing rate rising to 4.7%[55] - Share of associates and joint ventures' performance: Profit from associates was HKD 249 million (2022: HKD 21 million), while loss from joint ventures was HKD 1,699 million (2022: HKD 121 million), mainly due to impairment provisions for development properties of HKD 1,449 million (2022: HKD 1,497 million) and net revaluation loss on investment properties of HKD 500 million (2022: surplus of HKD 17 million)[56] - Tax expenses decreased by 34% to HKD 1,090 million (2022: HKD 1,660 million), primarily due to reduced tax provisions from lower profits in mainland investment and development property transactions[57] - Group's underlying net profit rebounded to HKD 3,566 million (2022: HKD 303 million), with development property losses narrowing by 77%, including a profit of HKD 150 million in Hong Kong (after impairment provisions of HKD 78 million) and a loss of HKD 1,083 million in mainland China (after impairment provisions of HKD 1,855 million)[57] - Contracted sales dropped by 44% to HKD 3,189 million (2022: HKD 5,678 million), with Hong Kong sales falling by 67% to HKD 343 million (2022: HKD 1,025 million) and mainland sales decreasing by 38% to RMB 2,579 million (2022: RMB 4,156 million)[58] - Shareholders' equity decreased by 6% to HKD 143 billion (2022: HKD 151.6 billion), equivalent to HKD 46.79 per share (2022: HKD 49.60 per share), due to a HKD 9.8 billion revaluation loss on listed equity investments[59] - Total operating assets (excluding bank deposits, cash, certain financial and deferred tax assets) decreased by 6% to HKD 192.8 billion (2022: HKD 205.9 billion), with real estate, logistics, and investment assets accounting for 69%, 9%, and 22% of total operating assets, respectively[59] - Investment properties portfolio was reported at HKD 71.2 billion (2022: HKD 69.2 billion), accounting for 37% of total operating assets, including HKD 18 billion in Hong Kong (2022: HKD 14.6 billion) and HKD 53.2 billion in mainland China (2022: HKD 54.6 billion)[60] - Development property assets decreased by 13% to HKD 37.2 billion (2022: HKD 43 billion), including HKD 29.3 billion in Hong Kong (2022: HKD 28.5 billion) and HKD 7.9 billion in mainland China (2022: HKD 14.5 billion)[60] - Long-term investments totaled HKD 42.4 billion (2022: HKD 48.9 billion), with HKD 34.6 billion (2022: HKD 40.3 billion) in listed equities, primarily blue-chip stocks held for long-term capital growth and/or reasonable dividend income[61] - Sales deposits decreased by 79% to HKD 1.7 billion (December 2022: HKD 8.2 billion), to be recognized in the coming years[63] - Net debt increased by 47% to HKD 7.8 billion (December 2022: HKD 5.3 billion), with a net debt to total equity ratio of 5.3% (December 2022: 3.4%)[63] - Total available credit facilities and issued debt securities amounted to HKD 36.6 billion, with HKD 19.4 billion utilized as of December 31, 2023[64] - The group's debt portfolio includes USD, HKD, and RMB, primarily used to fund investment properties, development properties, and port investments[65] - Operating cash inflow before working capital changes was HKD 5.2 billion (2022: HKD 5.1 billion), with a net inflow of HKD 2.4 billion after tax and other changes[65] - Investment activities resulted in a net outflow of HKD 3.5 billion (2022: inflow of HKD 4.3 billion), mainly due to net purchases of long-term investments[66] - Total capital and development expenditures for 2023 were HKD 5.134 billion, with HKD 4.611 billion allocated to development properties[67] - Estimated major expenditures for the next fiscal year are HKD 14.181 billion, with HKD 5.772 billion already committed[68] - Revenue for 2023 increased to HKD 18,950 million from HKD 18,064 million in 2022, representing a growth of 4.9%[174] - Operating profit before depreciation, amortization, interest, and taxes rose to HKD 7,602 million in 2023, up from HKD 7,320 million in 2022[174] - Net profit attributable to shareholders improved significantly to HKD 945 million in 2023, compared to a loss of HKD 1,705 million in 2022[174] - Basic and diluted earnings per share for 2023 were HKD 0.31, a recovery from a loss of HKD 0.56 per share in 2022[174] - The fair value decrease of investment properties was HKD 746 million in 2023, up from HKD 264 million in 2022[174] - Other comprehensive loss for the year was HKD 7,285 million, slightly lower than the HKD 7,807 million loss in 2022[175] - Total comprehensive loss for the year was HKD 6,180 million, an improvement from HKD 9,241 million in 2022[175] - The company's share of other comprehensive income from associates and joint ventures was a loss of HKD 236 million in 2023, compared to a loss of HKD 1,252 million in 2022[175] - Total assets decreased from HKD 221,745 million in 2022 to HKD 204,877 million in 2023[176] - Net profit for the year was HKD 945 million, compared to a loss of HKD 1,705 million in 2022[178] - Cash and cash equivalents decreased from HKD 14,648 million in 2022 to HKD 11,593 million in 2023[179] - Total equity decreased from HKD 155,707 million in 2022 to HKD 148,203 million in 2023[176] - Operating cash inflow increased slightly from HKD 5,141 million in 2022 to HKD 5,244 million in 2023[179] - Investment properties decreased from HKD 69,222 million in 2022 to HKD 71,244 million in 2023[176] - Total liabilities decreased from HKD 66,038 million in 2022 to HKD 56,674 million in 2023[176] - Revenue from other long-term investments increased from HKD 1,337 million in 2022 to HKD 1,753 million in 2023[179] - Net cash used in financing activities decreased significantly from HKD 17,552 million in 2022 to HKD 1,745 million in 2023[179] - Total comprehensive income for the year was a loss of HKD 6,180 million, compared to a loss of HKD 9,241 million in 2022[178] - Operating profit increased to HKD 6,896 million in 2023 from HKD 6,603 million in 2022, reflecting a growth of 4.4%[180] - Cash and cash equivalents decreased to HKD 11,593 million in 2023 from HKD 14,648 million in 2022, a decline of 20.9%[181] - New bank and other borrowings amounted to HKD 10,997 million in 2023, compared to HKD 8,258 million in 2022, showing a 33.1% increase[182] - Repayment of bank and other borrowings was HKD 11,371 million in 2023, down from HKD 24,336 million in 2022, a significant reduction of 53.3%[182] - The total cash inflow from operating activities was HKD 3,246 million in 2023, a decrease from HKD 6,692 million in 2022, marking a 51.5% decline[180] - Total group revenue for 2023 reached HKD 18,950 million, compared to HKD 18,064 million in 2022[185] - Investment properties segment revenue for 2023 was HKD 4,843 million, with operating profit of HKD 3,207 million[184] - Development properties segment revenue for 2023 increased to HKD 8,562 million from HKD 7,462 million in 2022[185] - Logistics segment revenue for 2023 decreased to HKD 2,370 million from HKD 2,964 million in 2022[185] - Hotel segment revenue for 2023 increased to HKD 611 million from HKD 369 million in 2022[185] - Total group operating assets for 2023 were HKD 204,877 million, down from HKD 221,745 million in 2022[186] - Capital expenditures for 2023 totaled HKD 523 million, compared to HKD 1,359 million in 2022[188] - Depreciation and amortization expenses for 2023 were HKD 706 million, slightly down from HKD 717 million in 2022[188] - The group made provisions of HKD 1,938 million for certain development properties of subsidiaries, joint ventures, and associates in 2023[188] - Group total revenue increased to HKD 18,950 million in 2023 from HKD 18,064 million in 2022, representing a growth of 4.9%[189] - Mainland China contributed HKD 14,030 million to revenue in 2023, slightly up from HKD 13,977 million in 2022[189] - Operating profit for the group rose to HKD 6,896 million in 2023 from HKD 6,603 million in 2022, a 4.4% increase[189] - Total depreciation and amortization decreased to HKD 706 million in 2023 from HKD 717 million in 2022[192] - Employee costs decreased to HKD 1,580 million in 2023 from HKD 1,646 million in 2022[192] - Interest income from financial assets at amortized cost dropped to HKD 322 million in 2023 from HKD 662 million in 2022[193] - Total remuneration for the board of directors decreased to HKD 44,892 thousand in 2023 from HKD 52,238 thousand in 2022[195] - Total remuneration for the top five highest-paid employees decreased to HKD 14 million in 2023 from HKD 21 million in 2022[198] - Non-current assets designated for the group totaled HKD 111,851 million in 2023, slightly down from HKD 112,453 million in 2022[190] - Total operating assets for the group decreased to HKD 192,780 million in 2023 from HKD 205,869 million

Core Insights - The company reported a 5% increase in revenue to HKD 18.95 billion for the fiscal year 2023 [1] - Operating profit rose by 4% to HKD 6.896 billion [1] - The company's net profit attributable to shareholders rebounded to HKD 3.566 billion, compared to HKD 303 million in the same period last year, primarily due to a reduction in provisions for development properties to HKD 1.933 billion [1] Financial Performance - Development property losses narrowed by 77% [1] - Investment profit increased by 37% [1] - Investment property profit decreased by 6% [1] - Logistics profit decreased by 39% [1] Overall Profitability - After accounting for a revaluation loss of investment properties amounting to HKD 1.617 billion and other non-cash items, the company recorded a profit attributable to shareholders of HKD 0.945 billion, compared to a loss of HKD 1.705 billion in 2022 [1]