信和置业(00083) - 2021 - 中期财报

Financial Performance - The company's unaudited basic profit attributable to shareholders for the six months ended December 31, 2020, was HKD 2.1425 billion, compared to HKD 2.7229 billion in the same period in 2019[6] - The company's unaudited profit attributable to shareholders for the six months ended December 31, 2020, was HKD 1.2866 billion, compared to HKD 2.7808 billion in the same period in 2019[6] - Revenue for the six months ended December 31, 2020, was HKD 4,097,517,736, compared to HKD 3,168,550,076 in the same period in 2019[25] - Gross profit for the six months ended December 31, 2020, was HKD 2,205,767,497, compared to HKD 1,877,695,349 in the same period in 2019[25] - Net profit attributable to shareholders for the six months ended December 31, 2020, was HKD 1,286,638,929, compared to HKD 2,780,790,532 in the same period in 2019[25] - Basic earnings per share for the six months ended December 31, 2020, was HKD 0.18, compared to HKD 0.40 in the same period in 2019[25] - Total revenue for the six months ended December 31, 2020, was HK$4,097,517,736, compared to HK$3,168,550,076 for the same period in 2019[40] - Profit before tax for the six months ended December 31, 2020, was HK$1,858,256,361, compared to HK$3,100,376,377 in 2019[46] - Basic earnings per share decreased to HKD 1,286,638,929 for the six months ended December 31, 2020, from HKD 2,780,790,532 for the same period in 2019[58] - The company's basic profit attributable to shareholders decreased to HKD 2,142,555,952 for the six months ended December 31, 2020, from HKD 2,722,914,108 for the same period in 2019[62] Dividends and Shareholder Returns - The company announced an interim dividend of 14 HK cents per share, payable on April 20, 2021, to shareholders registered on March 16, 2021[6] - The company declared an interim dividend of HKD 1,025,742,971 for the six months ended December 31, 2020, compared to HKD 974,251,863 for the same period in 2019[57] - The company will suspend share registration from March 12, 2021, to March 16, 2021, for the interim dividend record date[88] Property Sales and Development - Property sales revenue for the mid-year period was HK$2.0118 billion, compared to HK$1.8865 billion in 2019[7] - The company expects to obtain pre-sale consents for five additional residential projects in 2021[7] - The company expects five residential projects to potentially obtain pre-sale consents in 2021[23] - Property sales revenue increased significantly to HK$1,949,855,362 from HK$412,238,609 in the previous year[40] - Segment profit for property sales was HK$807,873,625, compared to HK$797,788,185 in 2019[43] - Profit before tax included property sales costs of HKD 1,026,390,246 for the six months ended December 31, 2020, a significant increase from HKD 231,714,970 for the same period in 2019[52] Rental Income and Investment Properties - Total rental income for the mid-year period was HK$1.8429 billion, a 12.6$1.6298 billion compared to the previous year[12] - The overall occupancy rate of the company's investment property portfolio was approximately 90%, down from 96% in 2019[12] - The total value of investment properties (including joint ventures and associates) was HK$83.1539 billion, a 0.28$1,638,971,175, down from HK$1,838,178,905 in 2019[43] - Investment properties fair value loss of HKD 534,848,712 for the six months ended December 31, 2020, compared to a fair value gain of HKD 169,336,043 for the same period in 2019[63] Hotel Operations - Hotel operating income for the mid-year period was HK$163.5 million, a significant drop from HK$639.8 million in 2019[14] - Hotel operations revenue decreased to HK$128,844,437 from HK$484,398,475 in 2019[40] Land Reserve and Development - The company's land reserve as of December 31, 2020, was approximately 22 million square feet, with 40.3% commercial, 36.3% residential, 10.9% industrial, 7.1% parking, and 5.4% hotel[8] - The company has a land reserve of approximately 4.9 million square feet in Mainland China, with 3.8 million square feet under development[15] Financial Position and Cash Flow - The company holds a net cash position of HKD 37.18 billion as of December 31, 2020[16] - Total assets and total equity of the company are HKD 188.3 billion and HKD 147 billion respectively[16] - Total assets increased to HKD 154,782,376,769 as of December 31, 2020, compared to HKD 154,404,425,427 as of June 30, 2020[28] - Investment properties decreased slightly to HKD 62,428,594,167 from HKD 62,658,456,279 over the same period[28] - Equity attributable to the company's shareholders rose to HKD 147,015,257,417 from HKD 144,915,881,299[30] - Long-term bank borrowings decreased significantly to HKD 2,420,289,063 from HKD 4,418,199,715[30] - Retained earnings stood at HKD 94,559,864,789 as of December 31, 2020, down from HKD 96,112,971,493 as of June 30, 2020[31] - The company's total equity increased to HKD 147,854,848,515 from HKD 145,759,189,088[30] - Current assets increased to HKD 81,056,296,153 from HKD 80,391,448,913[28] - Current liabilities rose to HKD 33,580,542,044 from HKD 32,319,376,427[28] - Net current assets decreased to HKD 47,475,754,109 from HKD 48,072,072,486[28] - The company's total non-current assets increased to HKD 107,306,622,660 from HKD 106,332,352,941[28] - Operating cash flow from business activities was HKD 205.86 million, a significant decrease from HKD 5.48 billion in the previous year[33] - Cash and cash equivalents decreased by HKD 10.22 billion, compared to an increase of HKD 14.02 billion in the same period last year[34] - Loans to associates decreased to HKD 1.58 billion from HKD 2.81 billion in the previous year[33] - Loans to joint ventures decreased to HKD 419.04 million from HKD 3.26 billion in the previous year[33] - Non-controlling interest loans decreased to HKD 57.42 million from HKD 368.56 million in the previous year[33] - Investment properties additions decreased to HKD 43.29 million from HKD 133.36 million in the previous year[33] - Property, plant, and equipment additions decreased to HKD 23 million from HKD 20.6 million in the previous year[33] - Repayments from associates increased to HKD 98.88 million from HKD 3.27 billion in the previous year[33] - Repayments from joint ventures increased to HKD 475.56 million from HKD 120.66 million in the previous year[33] - Cash and cash equivalents at the end of the period were HKD 13.03 billion, down from HKD 30.42 billion in the previous year[34] Sustainability and Corporate Social Responsibility - The company has reduced carbon emissions by 17.73% as of June 2019, exceeding the target of 16% reduction by 2020[19] - The company has set a new target to reduce carbon emissions by 30% by 2030, based on 2012 levels[19] - The company donated 1,019 laptops to students in need through the "One Person, One Computer" initiative[19] - The company's 133 Portofino project in Sai Kung is the first residential project in Hong Kong to receive the WELL v2™ pre-certification[21] - The company launched the "CityWisdom" initiative in collaboration with Ping An Smart City to foster innovation in real estate technology[21] Market Outlook and Strategy - The company maintains a selective strategy for land acquisition to optimize revenue and improve efficiency[23] - The company’s recurring businesses, including property leasing, hotel and catering services, and property management, remain core pillars for stable income[23] - The company is integrating health and sustainability principles into project design, construction, and management to create clean, safe, and sustainable communities[23] - The company is optimistic about the Hong Kong residential property market due to low interest rates, stable housing demand, and favorable mortgage terms[23] - The company is closely monitoring technological developments to enhance business operations and efficiency[23] Corporate Governance - The company has established a Nomination Committee responsible for reviewing the board's structure, size, and composition, and making recommendations for changes to align with corporate strategy[107] - The Audit Committee assists the board in ensuring effective financial reporting, risk management, and internal controls, and meets at least four times a year[108] - The Compliance Committee reviews ongoing connected transactions, provides regulatory updates, and considers corporate governance matters, meeting every two months[109] - All directors confirmed compliance with the company's Securities Trading Code during the six months ended December 31, 2020[110] - The company complied with all code provisions in the Corporate Governance Code during the six months ended December 31, 2020, except for the combined role of Chairman and CEO[111] - Deloitte reviewed the company's condensed consolidated financial statements for the six months ended December 31, 2020, and found no material misstatements[113][114] Shareholder and Ownership Structure - Mr. Robert Ng holds 57.63% of the issued shares of the company, with 4,223,096,130 ordinary shares[90] - Mr. Robert Ng also holds 72.08% of the issued shares of the holding company, Tsim Sha Tsui Properties Limited, with 1,387,150,124 ordinary shares[92] - Mr. Robert Ng has 100% ownership in Brighton Land Investment Limited through controlled companies[94] - Mr. Robert Ng holds 50% ownership in several associated companies, including Rich Century Investment Limited and Sino Parking Management Limited[94] - Osborne controls 55% of Erleigh Investment Limited[95] - Mr. Wong Chi Shing controls 100% of Sun Wai Long Limited[95] - Mr. Wong Chi Tat holds 4,232,629,418 ordinary shares, representing 57.76% of the issued shares[96][97] - Tsim Sha Tsui Properties Group Limited holds 4,032,442,090 ordinary shares, representing 55.03% of the issued shares[97] - Spangle Investment Limited holds 499,201,269 ordinary shares, representing 6.81% of the issued shares[99] - Ka Fai Property Development Limited holds 421,996,094 ordinary shares, representing 6.19% of the issued shares[99] Financial Instruments and Risk Management - The fair value of listed equity securities as of December 31, 2020, was HKD 634,607,061, classified under Level 1 of the fair value hierarchy[82] - The fair value of non-listed equity securities as of December 31, 2020, was HKD 46,976,518, classified under Level 2 of the fair value hierarchy[82] - The fair value of listed debt securities as of December 31, 2020, was HKD 37,966,097, classified under Level 2 of the fair value hierarchy[82] - The fair value of interest rate swaps as of December 31, 2020, was HKD 32,209,188, classified under Level 2 of the fair value hierarchy[82] - The company entered into an interest rate swap with a total notional amount of HKD 1,000,000,000 to hedge against interest rate risk[83] - The group's utilized bank loan guarantees for joint ventures and associates amounted to HKD 7,722,283,901 as of December 31, 2020, an increase from HKD 6,863,909,096 as of June 30, 2020[86] - Unutilized bank loan guarantees for joint ventures and associates decreased to HKD 2,973,132,154 as of December 31, 2020, from HKD 3,892,216,604 as of June 30, 2020[86] - Guarantees for property buyers' bank mortgage repayments increased to HKD 563,425,442 as of December 31, 2020, compared to HKD 502,404,617 as of June 30, 2020[86] - The company's financial guarantees for property buyers will be revoked upon the completion of mortgage registration[87] Associates and Joint Ventures - The company's share of joint venture performance included a decrease in fair value of investment properties by HKD 46,668,930 for the six months ended December 31, 2020, compared to an increase of HKD 34,973,982 for the same period in 2019[51] - The company's share of associate performance included a decrease in fair value of investment properties by HKD 254,536,419 for the six months ended December 31, 2020, compared to an increase of HKD 34,992,531 for the same period in 2019[50] - Investment in associates' equity increased to HKD 20,842,744,654 as of December 31, 2020, from HKD 20,765,899,460 as of June 30, 2020[65] - Loans to associates (net of provisions) rose to HKD 4,367,374,479 as of December 31, 2020, compared to HKD 3,363,101,061 as of June 30, 2020[65] - Investment in joint ventures' equity increased to HKD 3,015,128,400 as of December 31, 2020, from HKD 2,969,843,643 as of June 30, 2020[68] - Loans to joint ventures (net of provisions) decreased to HKD 10,544,557,049 as of December 31, 2020, from HKD 10,628,066,644 as of June 30, 2020[68] - The group's total debt attributable to its associates was HKD 31,351,031,147 as of December 31, 2020[103] - The group's bank loans attributable to its associates were HKD 9,130,811,901 as of December 31, 2020[103] - The group's loans provided to associates were HKD 22,220,219,246 as of December 31, 2020[103] Other Financial Information - Financial costs decreased to HKD 23,358,189 for the six months ended December 31, 2020, compared to HKD 38,150,411 for the same period in 2019[49] - Current tax expenses included Hong Kong profits tax of HKD 189,612,809 for the six months ended December 31, 2020, up from HKD 170,387,663 for the same period in 2019[55] - Deferred tax expenses increased to HKD 575,334,123 for the six months ended December 31, 2020, compared to HKD 308,053,152 for the same period in 2019[55] - The weighted average number of ordinary shares used in calculating basic earnings per share increased to 7,083,416,624 for the six months ended December 31, 2020, from 6,839,363,734 for the same period in 2019[58] - Additions to property, plant, and equipment amounted to HKD 22,999,876 for the six months ended December 31, 2020, up from HKD 20,595,266 in the same period in 2019[64] - Trade receivables (net of credit loss provisions) stood at HKD 241,289,910 as of December 31, 2020, down from HKD 249,086,224 as of June 30, 2020[70] - Trade payables increased to HKD 95,455,443 as of December 31, 2020, from HKD 83,902,503 as of June 30, 2020[73] - Prepaid sales commissions amounted to HKD 463,000,000 as of December 31, 2020, up from HKD 458,000,000 as of June 30, 2020[71] - Prepayments related to property development projects increased to HKD 134,000,000 as of December 31, 2020, from HKD