SWIREPROPERTIES(01972)2023-04-03 08:30Financial Performance - The company reported a basic profit attributable to shareholders of HKD 8.706 billion, a decrease of 9% from HKD 9.532 billion in 2021[24]. - Total revenue for the year was HKD 13.826 billion, down 15% from HKD 16.318 billion in the previous year[25]. - The company achieved a cash flow from operations of HKD 6.332 billion, a decline of 10% compared to HKD 7.028 billion in 2021[25]. - The profit attributable to shareholders for property investment in 2022 was HKD 8,025 million, down from HKD 8,654 million in 2021, reflecting a decrease of 7.3%[28]. - The earnings per share for 2022 was HKD 1.36, a decrease from HKD 1.63 in 2021, representing a decline of 16.6%[28]. - The company reported a profit attributable to shareholders of HKD 79.8 billion, compared to HKD 71.1 billion in 2021[35]. - The basic profit decreased from HKD 95.32 billion in 2021 to HKD 87.06 billion in 2022, primarily due to reduced profits from the sale of parking spaces in Hong Kong[45]. - The recurring basic profit for 2022 was HKD 71.76 billion, slightly up from HKD 71.43 billion in 2021[45]. - The company reported a total operating profit of HKD 9,024 million, an increase from HKD 7,834 million in 2021[59]. - Total profit decreased by HKD 994 million to HKD 9,523 million, reflecting declines in property investment, property sales, and hotel operations[189]. Investment and Development - The company completed the acquisition of the remaining 50% stake in Chengdu Ocean Taikoo Li, which was finalized in February 2023[13]. - The company plans to allocate HKD 30 billion to expand its property portfolio in Hong Kong and HKD 50 billion for development in mainland China[36]. - The company aims to double the total floor area of its property portfolio in mainland China within ten years[36]. - The company has invested HKD 150 billion in the Taikoo Place redevelopment project, which is nearing completion and aims to transform the area into an international business hub[39]. - The company is actively seeking investment opportunities in Shenzhen, aiming to introduce its Taikoo Li and Taikoo Hui brands in the area[36]. - The company plans to invest HKD 100 billion to expand its office portfolio, focusing on high-quality office spaces and sustainable development[47]. - The company is focusing on optimizing its commercial property portfolio, with about one-third of the investment plan allocated to strengthening its flagship properties in Hong Kong[38]. - The company has made significant progress in its investment plans, with three major property projects currently under development in Hong Kong[41]. - The company plans to maintain a strong balance sheet and a diversified debt portfolio, including revolving and term bank loans and medium-term notes[57]. - The company is actively seeking opportunities to acquire suitable land for high-end residential projects in both Hong Kong and mainland China[56]. Sustainability and Environmental Initiatives - The company aims to become a leader in sustainable development performance among global peers by 2030[15]. - The company has set a target for 25% of sustainable products and services procurement by 2025, with 17% achieved in 2022[22]. - The company aims for at least 50% of its bond and loan financing to come from green finance by 2025, with approximately 60% achieved in 2022[24]. - The company launched an "Environmental Performance Charter" pilot program with 52 tenants participating, representing 37.9% of all office tenants in Hong Kong[22]. - The company has achieved 100% of new development projects obtaining the highest environmental rating, with 93% of existing projects also achieving this rating[23]. - The company ranks first in Asia and fourth globally in the Dow Jones Sustainability World Index for real estate, highlighting its leadership in sustainable development[42]. - The company aims for 50% tenant participation in the "Environmental Performance Charter" program in Hong Kong and mainland China by 2025[50]. Market Conditions and Challenges - The outlook for the Hong Kong office market in 2023 is expected to be weak, with rising vacancy rates and increased supply of new office space[84]. - Retail sales in mainland China decreased by 20% due to pandemic-related restrictions, particularly affecting properties in Shanghai and Beijing[46]. - The rental income from Hong Kong office properties declined due to increased vacancy rates and new supply, with the office property portfolio maintaining a high occupancy rate[45]. - The rental income from mainland China's retail properties decreased by 5% to HKD 4.424 billion in 2022, while excluding rental support and RMB value changes, it increased by 4%[105]. - The rental occupancy rate for Beijing Sanlitun Taikooli was 94% as of December 31, 2022[110]. - The rental occupancy rate for Guangzhou Taikoo Hui was 99% as of December 31, 2022[113]. - The rental occupancy rate for Beijing Yintai Center was 100% as of December 31, 2022[114]. Hotel Management and Operations - The hotel management segment reported an operating loss before depreciation of HKD 118 million in 2022, compared to an operating profit of HKD 22 million in 2021[151]. - The average room revenue and occupancy rates for hotels in Hong Kong and mainland China were negatively impacted by pandemic-related travel restrictions, while the performance of hotels in the United States improved with rising average room revenue and occupancy rates[161]. - The group anticipates improved hotel performance in Hong Kong and mainland China in 2023 due to the resumption of cross-border travel and the lifting of pandemic measures, while the U.S. hotel performance is expected to remain strong[162]. - The group is expanding its hotel management business, focusing on extending its hotel brands beyond Hong Kong[162]. - The total number of hotel rooms managed by the group is 3,138, with significant stakes in various luxury hotels across Hong Kong, mainland China, and the United States[160]. Community Engagement and Corporate Social Responsibility - The company celebrated its 50th anniversary with various cultural and artistic initiatives, including collaborations with renowned artists and exhibitions[52]. - The "Book Sale for Charity" initiative raised over HKD 1 million for charity, marking its 10th anniversary and setting a record[53]. - Swire Properties continues to foster community engagement and support for the younger generation through various initiatives and programs[52].