Chen Qizong, chairman of Hang Lung Group (00010) and Hang Lung Properties (00101), said at the 2023 results conference that the Group's development direction in mainland China is very clear and has a more stable foundation, and believes that currently buying existing properties is more stable than real estate.
The Zhitong Finance App learned that on January 30, Chen Qizong, chairman of Hang Lung Group (00010) and Hang Lung Properties (00101), said at the 2023 results conference that the Group's development direction in mainland China is very clear and has a more stable foundation, and believes that currently buying existing properties is more stable than real estate. Chen Wenbo, son of Hang Lung Properties's successor and vice chairman Chan Kai-chung, said that facing the current market conditions, it is not a good time to enter the market, but Hong Kong needs to stabilize before it can develop, so I'm not too pessimistic about the market situation.
Chen Qizong said that the overall trend in the retail industry this year is difficult to determine, and he hopes to host more events in shopping malls during the Spring Festival. In addition, Hang Lung's project in Hangzhou is progressing smoothly. It is expected to open next year, and Grand Hyatt Kunming is also expected to open next year.
In addition, some media have reported that the high vacancy rate of office buildings in Shanghai requires a reduction in supply. Chen Qizong said in this regard that the vacancy rate of all of the company's Shanghai office buildings is not very high, and the supply will still be high for the next 5-6 years.
According to Hang Lung Properties's performance report, as of the end of last year, Hang Lung Properties' net debt equity ratio was 31.9%, up 3.8 percentage points from 28.1% at the end of 2022. However, Chen Qizong said that Hang Lung Properties' debt ratio is still loose and healthy, and he is cautious about the complex and changing environment.
In terms of performance, the announcement shows that in 2023, Hang Lung Group's total revenue was HK$10.881 billion, a year-on-year decrease of 0.55%; for the year ended 31 December 2023, property rental revenue increased 2% to HK$10.889 billion, and property sales revenue was HK$2 million (2022: HK$316 million); overall operating profit increased 1% to HK$7.794 billion. Hang Lung Properties' total revenue was HK$10.316 billion, roughly the same as the same period last year; for the year ended 31 December 2023, property rental revenue increased 3% to HK$10.316 billion, benefiting from the company's unique positioning, customer-oriented firm policy and execution strategy; overall operating profit also increased 2% to HK$7.389 billion.
As of January 30, Hang Lung Group closed at HK$9.60, down 2.54%; Hang Lung Properties closed at HK$9.05, down 8.40%.