恒隆地产(00101) - 2023 - 中期财报

Revenue and Profit Performance - Overall revenue for the first half of 2023 decreased by 1% to HKD 5.237 billion, with rental income increasing by 5% to HKD 5.237 billion[4] - Basic profit attributable to shareholders remained flat at HKD 2.225 billion, while profit including property revaluation increased by 23% to HKD 2.394 billion[4] - Shareholders' basic profit attributable increased by 6% to HKD 2.246 billion, and net profit attributable to shareholders rose by 31% to HKD 2.415 billion[9] - Net profit attributable to shareholders for the first half of 2023 was HK$2,394 million, compared to HK$1,948 million in 2022[89] - Basic earnings per share for the first half of 2023 were HK$0.53, up from HK$0.43 in 2022[89] - Net profit for the period was HKD 2,394 million, compared to HKD 1,948 million in the same period last year, an increase of 22.9%[92] - Profit before tax for property leasing and sales was HKD 3,530 million in 2023, compared to HKD 2,980 million in 2022[101] - Net profit attributable to shareholders was HKD 2,394 million in 2023, up from HKD 1,948 million in 2022[101] - Basic and diluted earnings per share remained stable at HKD 0.49 for both 2022 and 2023, with net profit attributable to shareholders increasing from HKD 1.948 billion to HKD 2.394 billion[110][112] Rental Income and Tenant Sales - Rental income from seven high-end shopping malls in mainland China all increased, with Shanghai Plaza 66 leading at 23% growth, followed by Dalian (19%), Wuxi (16%), Shanghai Grand Gateway (11%), Kunming (9%), and Shenyang (6%)[6] - Tenant sales in high-end shopping malls increased by an average of 42%, with Shanghai Grand Gateway and Shanghai Plaza 66 showing exceptional growth of 68% and 62% respectively[7] - Compared to pre-pandemic 2019, tenant sales in high-end shopping malls surged by an average of 217%, with Wuxi Plaza 66 exceeding four times the 2019 level[7] - Office leasing income in mainland China grew by 6% in RMB terms but decreased by 1% in HKD terms due to currency appreciation[7] - Shanghai Plaza 66 office buildings recorded strong rental income growth, while newer office buildings in Kunming and Wuhan also showed significant increases[7] - Hong Kong shopping mall tenant sales and rental income increased by 22% and 6% year-on-year, respectively, but still decreased by 7% and 16% compared to the same period in 2019 (pre-pandemic)[9] - Mainland rental income increased by 13% in RMB, with high-end shopping malls up 16% and sub-high-end shopping malls down 3%. Office rental income rose 6%, and hotel income surged 130%[9] - Total rental income grew by 5% in HKD, with mainland rental income contributing 68% and Hong Kong contributing 32%[9] - Property leasing revenue in mainland China increased to HKD 3,554 million in H1 2023, up from HKD 3,367 million in H1 2022[22] - Hong Kong property leasing revenue rose to HKD 1,683 million in H1 2023, compared to HKD 1,619 million in H1 2022[22] - Operating profit from mainland China property leasing reached HKD 2,483 million in H1 2023, up from HKD 2,269 million in H1 2022[22] - The company's shopping mall portfolio in Mainland China saw a 13% revenue increase, with high-end malls growing by 16% and sub-high-end malls declining by 3%[29] - Shanghai's high-end malls, which experienced temporary closures in April and May 2022, recorded an 18% revenue growth[29] - The overall tenant sales and leasing revenue in Mainland China increased by 42% and 13% year-over-year, respectively, in the first six months of 2023[27] - Shanghai Plaza 66's revenue and tenant sales increased by 23% and 62% respectively compared to the same period last year[31] - Wuhan Plaza 66's tenant sales increased by 25% despite a drop in occupancy rate to 81%[32] - Office leasing portfolio in mainland China contributed 18% of total rental income, with a 6% increase in total revenue to RMB 580 million[33] - Shanghai Plaza 66's office leasing revenue increased by 6% with a 98% occupancy rate[34] - Kunming Plaza 66's office leasing revenue increased by 19% with an 87% occupancy rate[35] - Hotel revenue surged by 130% due to the relaxation of travel restrictions[36] - Hong Kong retail property portfolio revenue increased by 6% to HKD 1.009 billion with a 97% occupancy rate[38] - Shenyang Huangcheng Plaza's tenant sales increased by 40% despite a 5% drop in revenue[32] - Jinan Plaza 66's tenant sales increased by 31% after the first phase of asset optimization[32] - Dalian Plaza 66's revenue and tenant sales increased by 19% and 26% respectively after its transformation into a high-end mall[31] - Retail revenue increased by 6% to HKD 1,009 million, driven by a 22% rise in tenant sales and a 40% increase in sales rent, primarily in dining, beauty, and jewelry sectors[39][40] - Office revenue grew by 1% to HKD 552 million, with occupancy rates maintained at 88%, despite challenging market conditions[39][41] - Residential and serviced apartments revenue decreased by 1% to HKD 122 million, with occupancy rates dropping due to renovation preparations at The Masterpiece[39][42] Financial Position and Debt - The net debt-to-equity ratio slightly increased to 30.4%[9] - Net debt-to-equity ratio increased to 30.4% as of June 30, 2023, compared to 28.1% at the end of 2022[23] - Total cash and bank deposits amounted to HKD 4,712 million as of June 30, 2023, with RMB deposits making up 64% of the total[50] - Total borrowings increased to HKD 47.16 billion as of June 30, 2023, with 28% denominated in RMB as a natural hedge for net investments in Mainland China[51] - Fixed-rate debt accounted for 38% of total debt as of June 30, 2023, and 52% of offshore debt excluding onshore floating-rate debt[51] - The average repayment period of the debt portfolio was 3.2 years as of June 30, 2023, with 72% of loans maturing after two years[55] - Financial expenses increased by 20% to HKD 881 million in the first half of 2023 due to higher average borrowing costs and increased borrowings for capital expenditures[57] - The company recorded a foreign exchange translation loss of HKD 3.394 billion as of June 30, 2023, due to a 3.1% depreciation of RMB against HKD[58] - The company has no significant contingent liabilities or assets pledged to third parties as of June 30, 2023[59] - Total assets decreased from HKD 197,865 million in 2022 to HKD 196,396 million in 2023, a decline of 0.7%[91] - Cash and bank deposits decreased by 9.9% from HKD 5,229 million in 2022 to HKD 4,712 million in 2023[91] - Total equity decreased from HKD 143,146 million in 2022 to HKD 139,848 million in 2023, a decline of 2.3%[91] - Investment properties decreased slightly from HKD 167,861 million in 2022 to HKD 166,826 million in 2023, a decline of 0.6%[91] - Non-current liabilities increased by 3.3% from HKD 54,719 million in 2022 to HKD 56,548 million in 2023[91] - The company's retained earnings decreased from HKD 96,739 million in 2022 to HKD 96,618 million in 2023, a slight decline of 0.1%[92] - The exchange differences on translation to presentation currency resulted in a loss of HKD 3,070 million, impacting other reserves[92] - Total comprehensive income for the period was a loss of HKD 639 million, compared to a loss of HKD 2,684 million in the same period last year[92][93] - Operating cash flow from business activities increased to HKD 2,802 million in 2023, up from HKD 2,500 million in 2022[96] - Net cash used in investing activities was HKD 1,347 million in 2023, compared to HKD 1,317 million in 2022[96] - New bank loans and borrowings amounted to HKD 23,387 million in 2023, a significant increase from HKD 16,323 million in 2022[96] - Cash and cash equivalents decreased to HKD 4,446 million as of June 30, 2023, from HKD 5,148 million at the beginning of the year[96] - Total assets decreased from HKD 212.688 billion in 2022 to HKD 210.608 billion in 2023, with a notable decrease in cash and bank deposits from HKD 5.229 billion to HKD 4.712 billion[102] - Net interest expense was HKD 260 million in 2023, with total borrowing costs of HKD 881 million, partially offset by capitalized borrowing costs of HKD 582 million[104] - Total tax expense increased from HKD 723 million in 2022 to HKD 798 million in 2023, with deferred tax expenses rising significantly from HKD 121 million to HKD 192 million[107] - Investment properties and properties under development saw additions of HKD 1.569 billion in 2023, up from HKD 1.100 billion in 2022[113] - Accounts receivable decreased from HKD 147 million in 2022 to HKD 132 million in 2023, with a reduction in overdue receivables[115] - Accounts payable decreased slightly from HKD 4.044 billion in 2022 to HKD 3.897 billion in 2023, with a notable decrease in payables due after three months[116] - Capital commitments increased significantly from 1,830 to 6,142 HKD million for signed contracts, a 235.6% increase[130] - Authorized but unsigned capital commitments decreased from 14,135 to 9,066 HKD million[130] - Total capital commitments slightly decreased from 15,965 to 15,208 HKD million[130] Development Projects and Future Plans - The company plans to complete major projects, including the Hangzhou Plaza, with shopping malls and office buildings set to be completed by the end of 2024, and additional office buildings and hotels by 2025[17] - The company is planning to open several new hotels, including the Kunming Hyatt Hotel and the Wuxi Hilton Curio Collection Hotel in 2024, and the Hangzhou Mandarin Oriental Hotel in 2025[17] - The company has four residential projects under development, with most expected to be completed by 2025, including Wuhan "Hang Lung Residence," Wuxi "Hang Lung Residence," and Kunming Hyatt Residence[17] - The company is preparing for the public sale of its high-end serviced residence brand "Henglong Mansion" in mainland China, including properties in Wuhan, Kunming, and Wuxi[63] - The company plans to open its second luxury hotel, the Kunming Hyatt, in the first half of 2024[63] - The Wuhan "Henglong Mansion" is expected to deliver its first batch of units by the end of 2023[63] - The company's office portfolio is expected to maintain rental income growth despite challenging market conditions[63] - The company's "hello Henglong Mall Rewards Program" aims to enhance the shopping experience for loyal customers in Hong Kong[63] - Development projects for rental and sale totaled HKD 214.94 billion and HKD 112.22 billion, respectively, with capital commitments of HKD 15 billion[45] - Wuhan "Hang Lung Residences" is set to be completed in phases starting late 2023, offering 492 units[46] - Kunming Junyue Residences and Kunming Junyue Hotel are expected to be completed in phases from 2024, with 254 residences and 332 hotel rooms[46] - Hangzhou West Lake 66 project, including a luxury Mandarin Oriental Hotel, is on track for phased completion starting 2024[46] - The Aperture in Hong Kong is expected to complete construction in Q1 2024, with 126 units sold for HKD 1.108 billion[47] Corporate Governance and Shareholder Information - The company emphasizes high levels of corporate governance and transparency, with ongoing efforts to improve diversity, particularly at the board level[18] - The company's board consists of 9 members, including 4 executive directors and 5 independent non-executive directors[65] - The company's audit committee meets at least four times a year and reviews internal audit work and risk management[67] - The company has fully complied with the Corporate Governance Code of the Hong Kong Stock Exchange during the six months ended June 30, 2023[68] - The company has adopted a code of conduct for securities transactions by directors, ensuring compliance with the "Standard Code" and confirming adherence during the six months ended June 30, 2023[69] - As of June 30, 2023, Mr. Chan Wai Bor holds 2,733,898,340 shares of the company, representing 60.76% of the total issued shares[71] - Mr. Chan Kai Chong holds 17,155,000 shares of the company, representing 0.38% of the total issued shares[71] - The company's 2022 Share Option Plan allows for the issuance of up to 337,444,550 shares, with 54,569,000 options granted during the six months ended June 30, 2023[75] - As of June 30, 2023, the total number of shares available for issuance under the 2022 Share Option Plan is 282,875,550, representing approximately 6.29% of the company's total issued shares[75] - The 2012 Share Option Plan was terminated on April 27, 2022, and no further options can be granted under this plan[75] - The 2022 Share Option Plan aims to incentivize and retain talent by offering opportunities to acquire equity in the company[74] - The company's directors hold no other interests or short positions in the company or its associated corporations as of June 30, 2023[73] - The company has not made any arrangements benefiting directors through the acquisition of shares or debentures during the six months ended June 30, 2023[73] - The 2022 Share Option Plan includes performance targets that may be specified by the board for individual or collective participants[74] - 4,500,000 stock options granted to Chairman Chan Hoi Chung on June 4, 2013 were forfeited[76] - 13,060,000 stock options granted to employees on June 4, 2013 were forfeited[76] - 2,750,000 stock options granted to Director Chan Man Pok on December 5, 2014 remain unexercised as of June 30, 2023[76] - 13,440,000 stock options granted to employees on December 5, 2014 remain unexercised as of June 30, 2023[76] - 1,925,000 stock options granted to Chairman Chan Hoi Chung on August 10, 2017 remain unexercised as of June 30, 2023[76] - 21,520,000 stock options granted to employees on August 10, 2017 remain unexercised as of June 30, 2023[76] - 10,000,000 stock options granted to Director Lo Wai Pak on May 16, 2018 remain unexercised as of June 30, 2023[76] - 32,262,100 stock options granted to employees on June 28, 2019 remain unexercised as of June 30, 2023[76] - 3,300,000 stock options granted to Chairman Chan Hoi Chung on May 12, 2021 remain unexercised as of June 30, 2023[76] - 46,967,000 stock options granted to employees on May 12, 2021 remain unexercised as of June 30, 2023[76] - Total number of stock options granted as of June 30, 2023, is 216,739,100, with 29,957,600 options forfeited or lapsed during the period[77] - Employee stock options granted as of June 30, 2023, amount to 164,389,100, with 20,757,600 options forfeited or lapsed[77] - Major shareholders collectively hold 60.76% of the company's issued shares, with Chen Tan Ching Fun, Cole Enterprises Holdings (PTC) Limited, Merssion Limited, and Chen Wenbo each holding 2,733,898,340 shares[80] - Hang Lung Group holds 60.13% of the company's issued shares, totaling 2,705,565,240 shares[80] - Employee headcount as of June 30, 2023, is 4,115, with 988 employees in Hong Kong and 3,127 in mainland China[83] - Total employee expenses for the six months ending June 30, 2023, amounted to HKD 942 million[83] - Stock options granted to current directors as of June 30, 2023, total 52,350,000, with 9,200,000 options forfeited or lapsed[77] - The company's issued share capital as of June 30, 2023, is 4,499,260,670 shares[81]