Sun Hung Kai Properties Limited (SHKP) today announced its 2022/23 annual results.
The previous year posed significant challenges for the global economy, as businesses grappled with geopolitical risks, trade frictions and high inflation in the West. The economies and property markets of the mainland and Hong Kong have been weak of late. In the face of an uncertain operating environment, SHKP firmly adheres to its long-standing principle of prudent financial management. The Group would selectively replenish its land bank, exercise strict control over capital expenditure, promptly launch new projects for sale upon completion, and speed up the sale of unsold completed units and non-core properties to generate a consistent cash flow. In addition, the government’s series of measures to attract foreign talents, import labour and attract key enterprises is expected to inject new impetus into the local economy, which should bode well for the property market.
On property sales, the Group’s developments have been popular due to the preference of buyers for new, large-scale housing estates that offer comprehensive clubhouse facilities and convenient transportation networks. SHKP’s reputable brand name, appealing products, and exceptional services have continued to win consumer trust in the market.
During the year, the Group’s contracted sales in Hong Kong in attributable terms increased 13% year-on-year to HK$33.4 billion. New projects to be put up for sale in Hong Kong in the current financial year include YOHO WEST, which is on top of Tin Wing Station in Yuen Long; The YOHO Hub II also in Yuen Long; and the third phase of NOVO LAND in Tuen Mun. The first phases of Cullinan Sky and Cullinan Harbour will also be on offer. Both Cullinan Sky and Cullinan Harbour boast prime locations in Kai Tak. Cullinan Sky offers convenient connectivity with direct access to the MTR Kai Tak Station, whilst Cullinan Harbour is situated on the waterfront, providing residents with panoramic views of Victoria Harbour, and offers ample car parking spaces.
On the mainland, the Group recorded attributable contracted sales of HK$4.5 billion during the year. Projects to be launched on the mainland include Shanghai Arch and new batches of joint-venture developments such as Hangzhou IFC and Oriental Bund in Foshan. For the current financial year, the Group’s sales targets in Hong Kong and the mainland are HK$33 billion and HK$5 billion, respectively.
On the property investment front, the Group’s shopping malls both in Hong Kong and on the mainland have seen an improvement in footfall and tenant sales after the pandemic. The overall occupancy of the office portfolio remained satisfactory. The Group’s property investment portfolio has been generating a substantial recurrent income which is expected to gain additional momentum upon the completion of its new developments.
Projects coming on stream include TOWNPLACE WEST KOWLOON, which will be launched soon. TOWNPLACE WEST KOWLOON offers a brand-new apartment living experience and is specifically designed to cater to the needs of local young professionals and incoming talents seeking premium serviced suites. It offers sweeping views of Victoria Harbour and is conveniently located. It is in close proximity to the Group’s V Walk shopping mall and MTR Nam Cheong Station, just two-MTR-stop away from Kowloon Station and the High-Speed Rail West Kowloon Terminus.
In the long run, the Group’s recurrent income base will be further strengthened with the completion of major integrated projects. One such project is the mega-commercial development in Mong Kok. The site was acquired during the year and the project is scheduled for completion in 2030. On top of property investments, the Group’s non-property businesses will also contribute to its stable and substantial recurring income.
The Group is committed to enhancing customer experience. The Point, which is an integrated loyalty programme for SHKP malls, introduced the city’s first rewards-redeemable super-fast electric vehicle (EV) charging service during the year. This service helps promote the adoption of EVs and contributes to the development of Hong Kong as a smart and green city. The service will be extended to all major SHKP malls over time. Separately, contactless parking service, another exclusive benefit for The Point members, will be extended to more than 50 Wilson Parking car parks, providing members with greater convenience.
To support the transformation of Hong Kong into a green and sustainable city, the Group continues to invest in and embrace the latest innovative technology to improve the environmental performance of its properties. It endeavours to obtain LEED Gold or Platinum ratings for its major new commercial projects and keeps upgrading the green-building standards of its major existing commercial buildings. The Group also incorporates health and wellness elements into its residential projects. NOVO LAND is the first residential development in Hong Kong to receive three internationally recognized certifications for healthy buildings.
Despite uncertainties in the external environment, Hong Kong retains its unique advantages of ‘One Country, Two Systems’, and benefits from the strong support of the motherland while maintaining close connections with the world. The city continues to offer abundant long-term development opportunities. True to its commitment to Building Homes with Heart, the Group remains dedicated to providing premium developments and services, and building long-term relationships with customers and tenants. Over the past 50 years, the Group has weathered various social and economic instabilities. Drawing upon its extensive experience in adapting to market and technological changes, supported by an exceptional management and operational teams, strong financial position, prudent financial discipline and a solid recurrent income base, the Group is confident in successfully navigating through uncertainties and overcoming challenges.
SHKP-Kwoks’ Foundation x PolyU
Building Homes with Heart Scholarship Programme award ceremony
The inaugural award ceremony of the Building Homes with Heart Scholarship Programme, a joint initiative by the SHKP-Kwoks' Foundation and The Hong Kong Polytechnic University (PolyU), was recently held, where the first batch of scholarships was presented to 10 outstanding PolyU students.
The scholarship programme aims to provide support to exceptional PolyU students, with a particular focus on those facing financial challenges, in their pursuit of studies in construction, real estate, or engineering-related disciplines.
Director of the Foundation Thomas Kwok said: “Over the years, the Foundation has been dedicated to supporting outstanding students from Hong Kong and the mainland in their pursuit of tertiary education. We are delighted to have helped more than 11,000 people complete their studies or training in the past 21 years. We hope the scholarship will become a driving force for the students to achieve greater success in their studies and careers, thereby contributing to the future development of the country and Hong Kong.”
PolyU Vice President (Student and Global Affairs) Professor Ben Young said: “PolyU is a cradle for cultivating talent for Hong Kong’s construction industry, and PolyU graduates have contributed a lot to the development of both the industry and the city. We are delighted to collaborate with Sun Hung Kai Properties (SHKP) to nurture a new generation of talent for the construction industry and promote the advancement of new green technologies, helping Hong Kong to become carbon neutral and creating a sustainable future. I hope PolyU graduates will continue to help advance the development of building technologies and transform scientific research into practical applications.”
Following the award ceremony, SHKP Executive Director Adam Kwok engaged in an exchange with the students who were deeply impressed by the SHKP projects in Hong Kong and on the mainland. Adam Kwok encouraged the students to maintain their lifelong pursuit of learning. He said: “The real estate and construction industries definitely need new blood. We envision the scholarship program as a catalyst for cultivating new talent, poised to support upcoming infrastructure and commercial projects. I strongly encourage the students to seize this opportunity, make the most of their scholarships, keep learning, and actively contribute to the industry’s growth in the years ahead.”
The 10 recipients are undergraduate and postgraduate students from the Department of Building Environment and Energy Engineering, the Department of Building and Real Estate, and the Department of Civil and Environmental Engineering. Each student was awarded a scholarship of up to HK$40,000. During the ceremony, Chung Wai-kit, Ho Sik-man and Law Sing expressed their gratitude for SHKP’s support. They conveyed their deep appreciation for the scholarships, which not only alleviated their financial burdens but also served as a source of encouragement. The students said they were well aware of the abundant opportunities awaiting them in the Greater Bay Area, where the government's supportive policies have created a high demand for skilled construction professionals. They expressed their aspirations to pursue successful careers and make meaningful contributions on the mainland in the future. SHKP Executive Director Robert Chan, himself a PolyU graduate, shared his valuable work experiences and insights during the ceremony, further inspiring the students.
The awardees also visited the International Commerce Centre (ICC) on the same day and were briefed on the project design and development plan of SHKP’s mega commercial project on top the High Speed Rail West Kowloon Station.
In addition to the scholarship programme, in November last year, SHKP and PolyU signed a memorandum on SHKP x PolyU Building Innovation & Technology Research Projects to foster collaboration between the industry, and the academic and research sectors. Three research projects were launched, focusing on green application (developing a smart, efficient and flexible energy management system), green building materials and green construction processes. The goal is to translate scientific research into applications to help Hong Kong evolve into a smart, carbon-neutral city.
SHKP demonstrates its commitment to nurturing young Hong Kong talent through various programmes. These initiatives include trainee programmes for young people in Hong Kong and on the mainland, which have successfully recruited nearly 70 graduates over the past five years. In addition, SHKP’s subsidiary Sanfield Construction organizes an annual summer internship programme that offers university students studying construction engineering with extensive hands-on experience to learn about the industry before they enter the workplace. This year, 72 students are participating in the programme, more than half of whom are PolyU students.
Read to Dream x Future Engineer Grand Challenge
Sponsoring underprivileged students to buy books at the Hong Kong Book Fair
The SHKP Reading Club of Sun Hung Kai Properties (SHKP) collaborated with the Hong Kong STEM Education Alliance for the second year in a row to organize the Read to Dream x Future Engineer Grand Challenge, encouraging primary and secondary school students to apply science and technology creatively in their daily lives through a series of activities. This year’s contest has been met with great enthusiasm, with nearly 300 entries submitted - a record-breaking number.
The award ceremony was held today (19 July), with Lander Lam, Chief Curriculum Development Officer (Gifted Education) of the Education Bureau, Chen Zhilu, Deputy Division Director of the Department of Educational, Scientific and Technological Affairs of the Liaison Office of the Central People's Government (LOCPG) in the HKSAR, Mike Wong, SHKP Executive Director and Deputy Managing Director, Clifford Choy, Hong Kong STEM Education Alliance Vice Chairman, Wu Siu-wai, Hong Kong Federation of Education Workers Vice President, and Jenny Koo, Assistant Executive Director of the Hong Kong Trade Development Council presenting the prizes.
The final was held on 15 July, attended by Christopher Kwok, SHKP Executive Director, Li Wenbin, Deputy Director General of the Kowloon Sub-office of the LOCPG in the HKSAR, Ng Wun-kit, Hong Kong STEM Education Alliance Vice Chairman and other guests of honour.
At the award ceremony, Hong Kong STEM Education Alliance Vice Chairman Clifford Choy said: “The students’ remarkable designs are a testament to their creativity, as well as their ability to explore and learn. I believe that behind every design lies a story of repeated attempts and perseverance, and a demonstration of their passion for the competition and the future. This challenge is more than just a competition. It offers a valuable opportunity for learning and growth, which are just as important as the results.” He encouraged the students to maintain their enthusiasm for innovation and technology, and to approach future challenges with courage and determination.
In his speech at the final, Christopher Kwok said: “The National 14th Five-Year Plan clearly supports Hong Kong’s development as an international innovation and technology (I&T) hub, and talent is essential for fostering I&T development. The Read to Dream x Future Engineer Grand Challenge aims to develop students’ interest and ability in I&T from an early age, with the ultimate goal of nurturing a pool of scientific researchers and I&T professionals in Hong Kong over time. The contest has drawn a lot of creative entries, and the participants have shown great imagination and a good grasp of I&T applications. I hope all the students will continue to work hard and contribute to the development of Hong Kong and serve the country when they grow up.”
This year marks the fifth Future Engineer Grand Challenge organized by the Hong Kong STEM Education Alliance, and the second year of collaboration with the SHKP Reading Club of SHKP. The contest was expanded with three new themes – “Smart Living”, “Green Innovation and Technology” and “Art Technology” – to encourage students to use innovative technology to enhance quality of everyday life. A total of 287 entries from more than 800 students from 122 schools were received, more than double the number of entries received last year.
Each contest theme is divided into primary, junior secondary and senior secondary categories. A total of 75 outstanding works were chosen by a panel of over 30 judges to compete in the final round of the competition. The judges then selected the winners of the first, second, third, and merit prizes in each category from among these works. The judges came from The Hong Kong Institution of Engineers, the Institute of Electrical and Electronics Engineers Hong Kong Section, The Institution of Engineering and Technology Hong Kong, and the Electrical and Mechanical Services Department. The winners’ list is available on the website of the Hong Kong STEM Education Alliance. The winning designs are displayed in the SHKP Reading Club’s booth at the Hong Kong Book Fair, which started today (19 July).
The designs this year were both creative and practical. Smart Fish Tank Monitoring System, by Ho Lap Primary School (sponsored by Sik Sik Yuen), the first-prize entry in the primary category under the theme “Smart Living”, automatically measures indoor and water temperatures. It is equipped with a regular automated feeding system and uploads the data to an Internet of Things (IOT) platform, enabling users to remotely monitor the fish tank data. Joyful Farming, by Fung Kai No.1 Secondary School, the first-prize entry in the junior secondary category under the theme “Green Innovation and Technology”, is an irrigation system that automatically adjusts the environment to allow the users to carry out hydroponic farming easily. FLAI (Follow to Learn An Instrument), by Diocesan Girls’ School, the first-prize entry in the senior secondary category under the theme “Art Technology”, uses AI and machine learning to monitor the users’ posture when playing piano and provide advice on how to improve.
SHKP’s dedication to promoting I&T education
Since its inception, the Read to Dream programme has benefitted over 30,000 primary and secondary school students, motivating them to cultivate a love of reading and pursue their aspirations. To support the Group’s innovative technology business development and the government’s efforts to promote STEM education, various STEM-focused activities are organized to develop the young generation’s I&T potential.
In addition to the STEM contest, the Read to Dream x Future Engineer Grand Challenge 2023 also organized other activities, including:
- Collaborating with long-term partner the Hong Kong Trade Development Council to sponsor 2,000 students to visit the Hong Kong Book Fair and provide them with an allowance to buy books;
- Providing each of 800 underprivileged students under the Hong Kong Federation of Education Workers, the North District Primary School Headmasters Conference and the Sham Shui Po Residents Association with a HK$250 book allowance to buy STEM and Chinese culture books at the book fair; and
- Holding school outreach activities this academic year, including seminars or workshops, to deepen students’ interest in, and knowledge of, STEM.