恒隆地产(00101) - 2023 - 年度财报

Financial Performance - Total revenue for property leasing in 2023 was HKD 10,316 million, a 3% increase from HKD 10,031 million in 2022[8]. - Operating profit for property leasing was HKD 7,441 million, compared to HKD 7,166 million in 2022, reflecting an increase of 3.8%[8]. - Shareholders' attributable net profit for 2023 was HKD 4,010 million, a decrease of 40% from HKD 3,836 million in 2022[8]. - The net asset value per share as of December 31, 2023, was HKD 29.4, slightly down from HKD 29.6 in 2022[10]. - Basic rental net profit attributable to shareholders slightly increased by 1% to HKD 4.177 billion, while basic profit attributable to shareholders decreased by 1% to HKD 4.137 billion after excluding property revaluation impacts[24]. - Total revenue for the year ended December 31, 2023, remained flat at HKD 10.316 billion, with all revenue derived from rental income, which increased by 3% compared to the previous year[24]. - The company recorded a net loss on property revaluation of HKD 1.67 billion, compared to a loss of HKD 3.63 billion in the previous year[138]. - Basic earnings per share decreased by 1% to HKD 0.92, with net profit attributable to shareholders at HKD 4.137 billion[138]. - The company recorded low single-digit growth for the full year, with strong growth in the first four months followed by a slowdown starting mid-May[51]. - Overall rental income increased by 2% year-on-year, reflecting a stable rental rate despite a cautious market environment[104]. Dividend and Shareholder Returns - The company maintained a dividend payout ratio of 88% based on attributable net profit, slightly down from 91% in 2022[10]. - The board proposed a final dividend of HKD 0.60 per share, with a total dividend of HKD 0.78 per share for the year ended December 31, 2023, subject to shareholder approval[24]. - The board proposed a final dividend of HKD 0.60 per share, maintaining the same level as the previous year[136]. Sustainability and Corporate Responsibility - The company aims to achieve 25 sustainability targets by the end of 2025 as part of its commitment to sustainable development[6]. - The company received over 35 awards related to sustainability efforts in 2023, and its MSCI ESG rating was upgraded from "A" to "AA"[52]. - The company aims to achieve net-zero emissions in its value chain by 2050, aligning with its sustainability agenda focused on climate change, resource management, and well-being[171]. - The company has been recognized as the first real estate developer in Hong Kong and mainland China to receive approval for its net-zero carbon emissions targets by the Science Based Targets initiative (SBTi)[178]. - The company has initiated a scholarship program for visually impaired students, demonstrating its commitment to community support[52]. - The company has donated over RMB 33 million to Tsinghua University's education fund to support the development of real estate disciplines and academic research[177]. - The company launched a sustainable finance framework to promote long-term sustainable development goals[176]. - The company is actively seeking opportunities to expand its procurement of renewable energy in mainland China[181]. Market Position and Strategy - The company anticipates challenges in achieving further growth in 2024 due to a weak economic environment, despite a strong start in early 2023[26]. - The company emphasizes a strategy of balancing financial stability with necessary strategic needs, particularly in maintaining sufficient cash flow[26]. - The company is cautious about investing heavily in the current market but sees opportunities due to competitors lacking cash or courage[36]. - The company has a long-term strategy to benefit from the relatively stable environment in mainland China, which is expected to provide a favorable backdrop for its business growth[38]. - The company is focused on learning from experience while not being constrained by it, aiming to seize new opportunities as they arise[47]. Property Development and Projects - The newly completed office project at 228 Electric Road has 22 floors and is strategically located in a vibrant commercial area[14]. - The "Henglong Mansion" project in Wuxi has topped out, offering approximately 570 residential units and 1,000 parking spaces upon completion[16]. - The company has received government approval to increase retail space by 13% at Shanghai Hang Lung Plaza, which is expected to enhance rental income[36]. - The company is developing high-end commercial projects in mainland China, including the Kunming Junyue Hotel, which will feature 331 rooms and is expected to be completed in mid-2024[99]. - The Hangzhou project will include five Grade A office buildings and a luxury hotel, with a total floor area of 194,100 square meters, expected to be completed in phases starting in 2024[100]. Economic Outlook and Challenges - The company anticipates that the Chinese economy will grow at a rate of 3.5% to 5% annually over the next decade, with the company's performance expected to exceed that by an additional 2 to 3 percentage points[38]. - The company acknowledges the impact of geopolitical issues on operations, particularly the tensions between the US and China, which could affect global businesses[30]. - The company expresses concern over the rapid development of technology and its potential negative impacts on society, including rising mental health issues among students[30]. - The company maintains a cautious outlook for 2024 due to geopolitical risks in mainland China, economic slowdown, and a challenging rental market in Hong Kong[127]. Tenant and Retail Performance - The occupancy rate for retail properties in Shanghai Plaza 66 reached 100%, while office buildings maintained a high occupancy rate of 96%[76]. - The company successfully organized events like the "Game of Wonder" and "HOME TO LUXURY" parties, which significantly boosted foot traffic and sales[74]. - The company continues to strengthen its market position through the "恒隆会" membership program, enhancing customer loyalty and attracting new members[72]. - The overall tenant sales growth was recorded at 14% year-on-year, indicating a strong recovery in consumer spending[139]. - The company plans to enhance its tenant mix by introducing more diverse high-end designer brands in Shanghai Plaza 66 in 2024[74]. Governance and Management - The board is committed to maintaining high corporate governance standards and has established three committees to enhance governance functions[192]. - The company has complied with the Corporate Governance Code throughout the fiscal year ending December 31, 2023[194]. - 56% of the board members are independent non-executive directors, surpassing the minimum requirement of one-third[195]. - The company has established a sustainable finance working group, which has been operational since 2019[196]. - The chairman will retire from the board after the 2024 annual general meeting, and a new chairman will be appointed[198].