Sun Hung Kai Properties Limited (SHKP) today announced its 2019/20 Annual Results.
During the year under review, Hong Kong faced unprecedented challenges brought by local social incidents and the COVID-19 pandemic and SHKP was inevitably affected. Yet, history shows that pandemics would eventually end. The Group firmly believes that Sun Hung Kai Properties as well as Hong Kong have a solid foundation and good long-term prospects. Our economy and society will prosper as in the past, on the back of the enduring success and unique strength of ‘One Country, Two Systems’, favourable international competitiveness, and above all, the Central Government’s support for Hong Kong as an international financial and business centre, riding on the mainland’s promising long-term prospects, especially the vast development opportunities in the Greater Bay Area.
Over the years, SHKP has weathered many ups and downs together with the rest of Hong Kong. With the experience accumulated over some 50 years and a strong financial position, SHKP is confident that, in working with the people of Hong Kong, we will overcome the challenges of COVID-19, and emerge as a better and more caring enterprise.
During the year, the Group’s different businesses were affected by the social incidents and the pandemic to varying degrees. The hotel business recorded the most serious impact. Property sales were affected. While the rental portfolio faced challenges in general, shopping malls were hit the most with intense downward pressure on new leases and renewals.
In the face of the pandemic, the Group stands with the community and does its best to protect employment. Not only has SKHP not laid off anyone, it has hired additional staff to implement extra hygiene and cleansing measures. It offered rent concessions to affected mall tenants to ease their operating pressure, and launched a variety of marketing campaigns, including online and offline promotional activities, through its loyalty programme, The Point by SHKP, to increase footfall and to boost sales. Substantial resources had also been devoted to implementing a range of anti-pandemic initiatives, including many contactless facilities, to provide a safe and clean shopping environment, putting customers, tenants and employees at ease. SHKP had also offered support, including anti-pandemic products, to the needy in society.
In the short- to medium-term, SHKP’s operating conditions and the market at large will critically hinge on how the pandemic evolves, especially how quickly the economy recovers. This in turn depends to a large extent on the relaxation of social distancing measures, in particular with full resumption of dine-in services at restaurants and eateries, as well as cross-border travel with the mainland and nearby countries and regions. These are crucial for social and economic activities to return to normal.
Notwithstanding the pandemic, SHKP will continue to invest and acquire new sites for development. We are committed to building quality properties, including residential, office and malls, and providing excellent customer services. The Group will continue to do our best to contribute to Hong Kong’s society and economy. And we are confident that as soon as the operating environment returns to normal, our businesses will be back on track in no time.
Please click here for details of the SHKP’s 2019/20 Annual Results.
SUNeVision Holdings Ltd. (“SUNeVision”, “the Group”; SEHK: 1686), the technology arm of Sun Hung Kai Properties (SEHK: 0016) and the largest data centre provider in Hong Kong, today announced its final results for the year ended 30 June 2020.
During the year under review, EBITDA from continuing operations increased 18% year on year to HK$1,186 million, mainly driven by EBITDA from data centre business. Underlying profit from continuing operations increased 11% year on year to HK$694 million. Underlying profit attributable to owners of the Company (excluding the increase in fair value on investment properties) rose 6% year on year to HK$709 million.
Revenue from continuing operations increased 10% year on year to HK$1,714 million, mainly driven by growth in business with existing customers and signing up new customers for the core business of data centre. Operating expenditure increased 16% year on year to HK$141 million. Operating profit from continuing operations rose 11% year on year to HK$863 million.
The directors have recommended the payment of a final dividend of HK17.50 cents per share for the year ended 30 June 2020. The dividend will be paid on 26 November 2020 following approval at the 2020 Annual General Meeting.
Raymond Tong, Chief Executive Officer of SUNeVision, said: “As the COVID-19 pandemic took hold, most economic activities worldwide have moved from in-person to virtual online communications, which resulted in a significant surge in data traffic and demand for a higher network performance requirement worldwide. The Group expects all these changes in commercial and consumer behaviour will be reflected positively in the Group’s operating performance in the coming few years.”
The Group is well positioned to capture the opportunities from the growth in technology trends, given the timely supply of the two new data centres and revitalisation of the existing data centres. The new site TWTL 428 in Tsuen Wan with approximately 200,000 square feet of gross floor area (“GFA”), and the greenfield site TKOTL 131 in Tseung Kwan O with approximately 1.2 million square feet of GFA, are targeted to complete construction by phases starting in 2022. Upon full completion, total GFA of the Group’s data centres in Hong Kong will double to approximately 2.8 million square feet.
As for the existing data centres, the increase of power capacity in MEGA-i by as much as 40% is on track to be completed before the end of 2020. This upgrade will be a big boost to the Group’s connectivity business growth in coming years. In addition, MEGA Two has undergone revitalisation work on multiple floors to serve the increasing high power-density needs of the Group’s hyperscale and cloud customers.
As TKOTL 131 is located next to our current data center MEGA Plus, we will achieve substantial synergies in operations and infrastructure investment. Upon completion, the purpose-built data center in TKOTL 131 will support an ultra-high power of at least 120MW IT load, which will more than triple our Group’s total data center IT load. It will ensure that our customers have room for fast expansion as they grow.
Details of the Group’s business developments can be found at its website: www.sunevision.com
(in HK$ million, unless otherwise stated)
|For the year ended 30 June||2019||2020||% Change|
|- Underlying profit2||628||694||+11%|
|Underlying profit attributable to owners of the Company3||670||709||+6%|
|EPS (Underlying profit from continuing operations) (HK cents)||15.52||17.15||+11%|
|EPS (Underlying profit attributable to owners of the Company) (HK cents)||16.57||17.51||+6%|
|Final DPS (HK cents)||16.50||17.50||+6%|
1 EBITDA of FY2020 was impacted by the adoption of HKFRS 16 “Leases” which resulted in reclassification of rental expenses to depreciation and interest expenses. Excluding such impact, the year on year growth would be 15%
2 Year on year growth of underlying profit from continuing operations of 11% compared with EBITDA of 15% (excluding HKFRS 16 “Leases” impact) was mainly impacted by higher depreciation expenses as a result of more data centre facilities in use from customers move-in
3 Excluding the increase in fair value on investment properties
TOWNPLACE SOHO, a new leasing brand under SHKP, launches communal space Duo Social Space
TOWNPLACE SOHO, the second residential leasing project under the TOWNPLACE brand of Sun Hung Kai Properties (SHKP) (0016), is designed to serve millennials. It officially launched a three-floor communal space, called Duo Social Space. With a total area about 16,000 square feet, the communal space offers oasis scenery co-created with renowned designers from Richards Basmajian and two art creators, Kristopher Ho and Parents Parents. The quality and scale of the facilities are rare in the district. In addition to the comprehensive amenities, residents can customize a space with flexible partition walls. Bounded by greenery with stunning city views, the rooftop Sky Garden is the perfect place for relaxation and gathering well above the hustle and bustle of the city. Residents are also entitled to enjoy the communal space of TOWNPLACE KENNEDY TOWN, another project under the brand, to double the topping living experience.
Comprehensive indoor and outdoor amenities with a stunning city view from the Sky Garden
The three-floor Duo Social Space spans the ground floor, first floor and rooftop. Characterized by an open floor plan with a modern minimalistic design concept and dynamic details, Duo Social Space offers a striking greenscape and comprehensive amenities, which are much sought-after by millennials. The garden and water features at the entrance lobby provide a natural ambience to the space. Duo Social Space is well-equipped. The first floor offers an urban oasis, with a swimming pool and sundeck, as well as facilities like a barbeque terrace, sauna and steam rooms, a yoga space, and a well-equipped gym with state-of-the-art workout equipment, like VR bikes that can sync with smartphones, a Power Plate platform, and Connexus Home by Matrix. A multi-purpose event space is also provided on the floor for residents to organize activities.
Sky Garden offers splendid views of Victoria Harbour, the Hong Kong Zoological and Botanical Gardens, Admiralty, Central and Sheung Wan. Its spacious sundeck and wellness terrace allow room for stretching and other exercise. Along with the superb daytime and nighttime views, there is a selection of movable outdoor furnishings, such as mushroom- and oval-shaped seats and tables to create a pleasurable space for residents. The seats and tables can be freely combined, allowing residents to gather with friends in the open area and relax while enjoying the beautiful scenery.
Flexible zoning and thoughtful details for millennials’ diversified social needs
Duo Social Space has an open design and provides exquisite furnishings and leisure facilities both indoors and outdoors to foster communication and networking among residents. Residents can customize the zoning of a space with specially designed partition walls for conferences, workshops, parties, seminars and so forth.
To offer a smart living space for fast-moving millennial professionals, Duo Social Space has commercial grade Wi-Fi and USB ports inside and out, as well as accessories like printers and photocopiers. A soundproof phone booth is available to provide privacy and flexibility. A plentiful array of work desks and sofas are provided to accommodate the new ‘work from home’ trend and to cater for reading. TOWNPLACE SOHO’s thoughtfully designed indoor and outdoor environment enables residents to choose the ideal way to work, relax and live.
TOWNPLACE is dedicated to creating a convenient living space with attention to detail. The mail box sensor in the lobby alerts residents to check for new mail when they enter the estate. A number of vending machines and a launderette are available to satisfy residents’ needs 24/7.
Double the enjoyment and convenience with 30,000 sq. ft. Duo Social Space in two properties
Belinda Kuan, General Manager of Signature Homes, SHKP, said, “As new rental projects are relatively rare on Caine Road, there is soaring demand for apartments with comprehensive facilities and quality service. TOWNPLACE SOHO offers recreational facilities and the spacious Sky Garden, which has amenities rarely seen in the neighbourhood. With the synergy created with TOWNPLACE KENNEDY TOWN, residents of either property are entitled to enjoy Duo Social Space and the diversified amenities of both, amounting to nearly 30,000 square feet in total, doubling the living experience. Hence, we are optimistic about the project’s prospects.”
Duo Social Space aims to achieve the brand’s mission of ‘Two Spaces, One Community’. TOWNPLACE KENNEDY TOWN has five floors of leisure amenities with the highest Sky Garden by the sea in Hong Kong Island, situated 166-176 metres above the sea. There is also a garden boulevard . The duo privilege system allows residents to chill and work easily within Hong Kong Island.
TOWNPLACE SOHO has launched two batches for lease, with a total of 150 studio to three-bedroom apartments, with saleable area ranging from 286 to 661 square feet and monthly rentals from $23,000. TOWNPLACE SOHO offers 'Serviced Apartments', 'Furnished Apartments' and 'Unfurnished Apartments' to cater for different needs. It offers flexible leasing terms, ranging from one month to years and two furnishing styles for a personalized living space.
Belinda added that the leasing progress is going well. “TOWNPLACE SOHO caters for millennials needs in terms of leasing terms, Duo Social Space and design, which attract young professionals and some young families. The units were leased out at $75-$106 per square foot. Local residents, professionals from the mainland, and residents from Europe, the Americas and South East Asia account for one third of all residents.”
Collaboration with landscape artists and art creators for a cultured city oasis
To meet the lifestyle preferences of young connoisseurs, TOWNPLACE SOHO collaborated with young art creators Kristopher Ho and Parents Parents to create a city oasis by bringing unique art pieces to the indoor living space. Inspired by the city view and the natural characteristics of the Central and Sheung Wan districts, their creations add a cultured touch to Duo Social Space. A QR virtual tour introduces the artworks and brings out the charm of the SoHo neighbourhood.
Kristopher Ho is famous for his bold style and detailed sketching. Using a Bornean orangutan and an American flamingo from the Hong Kong Zoological and Botanical Gardens as inspiration, he created magnificent wall paintings for Duo Social Space. Street art collective Parents Parents created abstract 3D paintings with inspiration from Duddell Street Steps, gas lamps and other features in the Central and Sheung Wan districts.
In addition to cultural pursuits, millennials are green-living advocates. TOWNPLACE SOHO collaborated with a landscape artist to curate a city oasis in Duo Social Space. The space includes organic elements, like water features, statues and a garden, and arranged practical seats, cushions and tables in harmonious tones to create the perfect space for residents to enjoy the expansive natural greenscape.
“Adhering to the Group’s beliefs and understanding the young generation’s pursuit of a quality lifestyle, we invited art creators and a landscape artist to collaborate to create a cultured space. While they enjoy the features of Hong Kong, the nature-inspired paintings and greeneries allow residents to relieve their stress and stay indulged. To enhance the homey feel, we converted some sections into green areas to better shape a relaxing oasis life for the new generation,” said Elee Lee, Assistant General Manager of Signature Homes, SHKP.
Mobile app unlocks a hassle-free life, with dedicated social activities curated by the young Community Team
To offer a tech-savvy and hassle-free living experience for millennials, SHKP invested over $10 million on the TOWNPLACE mobile app, which integrates multiple functions, including a home automation system, electronic door locks, and a reservation system for the Duo Social Space facilities.The “MY TOWN” interface on the app allows TOWNPLACE residents of the two properties to communicate, thus helping to build an extensive network.
TOWNPLACE set up a young Community Team to organize social and networking events to enhance the social life of residents while creating a close-knit living space. The Community Manager is an innovative role to enhance communication with residents. The manager also reaches out to shops in the neighbourhood to seek special deals for the residents, helping to build an exclusive TOWNPLACE community.