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Sun Hung Kai Properties Limited (SHKP) today announced its 2023/24 annual results.

During the year under review, SHKP was able to achieve a resilient performance despite the challenging external economic and operating environment. This was underpinned by the Group’s prudent financial discipline, extensive experience gained over the years, strong execution ability of the management team, an established corporate brand, premium properties and services.

During the year, the Group continued to launch new projects for sale when ready. The Group’s contracted sales in Hong Kong and on the mainland amounted to about HK$37.5 billion. New Hong Kong projects put on the market included YOHO WEST Phase 1, The YOHO Hub II in Yuen Long and Cullinan Harbour Phase 1 in Kai Tak, as well as Mid-Levels’ Dynasty Court and other completed projects. All received a positive market response. As of 30 June 2024, the Group’s contracted sales in Hong Kong that have not yet been recognized stood at about HK$24.9 billion, of which about HK$19.6 billion is expected to be recognized in the financial year 2024/25. On the mainland, projects offered for sale during the year included Phase 3 of Shanghai Arch and the third batch of residences at Hangzhou IFC (River East). The sales of both projects received an encouraging response. As of 30 June 2024, the Group’s contracted sales on the mainland that have not yet been recognized totalled RMB12.6 billion. Of this, about RMB8 billion is expected to be recognized in the financial year 2024/25.

The Group recently put Victoria Harbour II in North Point up for sale by tender. Over the next 10 months, Hong Kong projects set to be launched include the first phase of Cullinan Sky in Kai Tak, a new block at The YOHO Hub II in Yuen Long, a joint-venture project on Prince Edward Road West in Ho Man Tin, the second phase of YOHO WEST, and the first phase of the Sai Sha project near Ma On Shan. On the mainland, the Group plans to launch new batches of its joint-venture developments, including villas at Lake Genève in Suzhou, and units at Hangzhou IFC and Foshan’s Oriental Bund.

For the Group’s property investment portfolio, continuous efforts were made to strengthen its competitive edge, and the overall occupancy rate was satisfactory. Office premises meet high green-building standards that align with tenants’ ESG goals, and offer premium building quality and professional property management services. They consistently attract both multinational and local corporations. The Group’s project atop the High Speed Rail West Kowloon Terminus is set to become one of the most sustainable and eco-friendly buildings in the world. Its office portion, called International Gateway Centre (IGC), has secured global financial institution UBS as a tenant for an entire block to house its regional headquarters. This mega project, together with other new developments coming on stream, will bring additional steady cash flows and rental income to the Group starting in the next one to two years.

To address the challenges brought by increasing outbound travel and changing spending patterns of customers, the Group has continually enhanced the competitiveness of its malls. On top of investing in the quality of its properties and services, the Group regularly refines the tenant mix of its malls and has added pet- and family-friendly facilities to outdoor areas. The Point, an integrated loyalty programme for SHKP malls, has continued to expand its customer base and introduced new initiatives, including a function allowing customers to earn bonus points instantly upon purchases. Despite the challenging environment, spending by The Point members has remained relatively stable. The EV super-charger service at its malls had received very positive response from The Point members. As such, SHKP plans to double the number of EV super-chargers in its malls in the coming months and a pre-booking service would be launched for select Point members. 

On the mainland, the Group has replicated the success of Shanghai IFC Mall in Nanjing with the recent opening of Nanjing IFC Mall.  As the third iteration of the Group’s signature IFC brand, Nanjing IFC Mall brings together prestigious high-end brands, including flagship stores from Asia and around the world. It is set to become a new landmark for business, artistic trends, and lifestyle culture in Nanjing. Separately, the remaining portions at Three ITC in Shanghai, including Tower B office tower, a mega mall ITC Maison, and the Andaz Shanghai ITC hotel, are scheduled for completion from 2025 onwards.

The Group adheres to prudent financial discipline in land bank replenishment. During the year, the Group added three residential sites to its land bank in Hong Kong through lease modifications, with a total gross floor area of about 1.5 million square feet. Moreover, the Group is expected to receive cash compensation of about HK$1.9 billion for the Government’s resumption of its land lots in Kwu Tung North/Fanling North New Development Area. Another batch of land lots in Hung Shui Kiu/Ha Tsuen New Development Area has also been resumed, with compensation of about HK$2.7 billion.  In addition, the Group is applying for land exchange for other lots in the area.

In keeping with its belief in Building Homes with Heart, the Group is dedicated to developing a harmonious and sustainable community for all. The large-scale project in Sai Sha will provide premium residences, GO PARK Sai Sha, which is a sports-and-commercial complex covering a site area of 1.3 million square feet, as well as enhanced infrastructure that benefit all residents in the neighbourhood. By blending green lifestyle with nature, the project is set to become a most enjoyable and dynamic community.

The resolution adopted at the Third Plenary Session of the 20th CPC Central Committee affirmed that Hong Kong should leverage the strengths of ‘One Country, Two Systems’ to enhance its status as an international financial, shipping and trade centre, and to develop into an international hub for high-calibre talent. Such efforts, along with the Government’s initiatives to attract businesses, investment and talent, are expected to strengthen Hong Kong’s competitive edge. In addition, a potential interest-rate cut should further benefit the housing market. The Group will uphold its prudent financial discipline, maintain substantial recurring income from its rental portfolio and non-property businesses. It will leverage its strong brand and focus on high asset turnover in its property development business while staying responsive to market conditions. Without compromising quality, the Group will continue to implement strict cost control measures to reduce overall construction capex.  With a solid foundation underpinned by its time-tested strategies and a strong execution team, the Group will continue to develop quality properties that meet the public’s aspirations for a healthy, eco-friendly community while achieving sustainable growth.
 

The SHKP Reading Club of Sun Hung Kai Properties (SHKP) teamed up with the Patriotic Education Centre to organize the 2024 Read to Dream programme for the first time. The programme has sponsored underprivileged students to buy books at the Hong Kong Book Fair, and would launch a series of aerospace-themed activities in the coming school term to promote reading and enhance young people’s understanding of the country’s achievements in aerospace technology and their sense of identity.  

Officiating the kick-off ceremony of Read to Dream 2024 yesterday were Frederick Yu, District Officer (Sha Tin) of the Home Affairs Department; Allie Yim, Assistant District Officer (Yau Tsim Mong) of the Home Affairs Department; Allen Fung, SHKP Executive Director; Amy Lam, Vice-Chairman of the Hong Kong Federation of Education Workers (HKFEW); Yetta Li, Patriotic Education Centre Director; and Jenny Koo, Assistant Executive Director of the Hong Kong Trade Development Council. 

In his speech, Mr Fung of SHKP said: “For the past 20 years, the Group has been promoting reading through a variety of programmes. We believe that by creating a supportive environment, we can help young people find their own path through reading. With the exciting advancements in the country’s aerospace technology and the selection of a Hong Kong candidate as a potential astronaut, the SHKP Reading Club is delighted to launch a series of activities tied in with this theme. We hope to inspire young aerospace enthusiasts to pursue their dreams.”

Amy Lam, Vice Chairman of the HKFEW, said: “In his reply to Pui Kiu College last year, President Xi called on students to ‘integrate the pursuit of knowledge with exploration of the world, gain a profound understanding of global developments, and become talented people capable of shouldering important responsibilities from an early age.’ We will continue to nurture students’ creative thinking through reading and look forward to seeing them leverage technology to create products that enhance the quality of life and build a better Hong Kong for the next generation.”

The event also included a seminar on aerospace technology featuring Yetta Li and Leung Wai-kit, Development Director (Training & Curriculum) of the Patriotic Education Centre, who introduced the country’s achievements in aerospace technology. More than 300 students attended and showed keen interest in the topic. 

Since its inception in 2008, the Read to Dream programme has benefitted over 30,000 primary and secondary students. This year, it provided each of the 1,000 underprivileged students from Sha Tin, Yau Tsim Mong and Kwun Tong districts with a $250 allowance to buy books on STEM or Chinese culture at the Hong Kong Book Fair. In the new academic year, the programme will sponsor students to visit the aerospace science education centre, which was set up by the Patriotic Education Centre in early July, to strengthen their sense of belonging to the nation, and their knowledge of the country’s progress in aerospace technology. 

In line with the “aerospace technology” theme, the SHKP Reading Club booth at this year’s book fair was transformed into a “Space Reading Station”.  This interactive space featured articles from the Club’s “Read For More” online platform and resources on aerospace technology, as well as engaging exhibits provided by the Patriotic Education Centre, all designed to ignite young people’s interest in innovation, aerospace, and reading.

Sun Hung Kai Properties’ (SHKP) online reading platform Read For More had the privilege of interviewing Regina Ip, Convenor of the Executive Council and Member of the Legislative Council, about her new book, Regina’s English Works for You 8, as well as her personal journey and insights on English learning skills.

Read For More creates multimedia content, including interviews with leading figures and authors, to promote the joy of reading among young people. 

Graduated with first-class honours from the University of Hong Kong's Department of English, Mrs Yip taught English in a local secondary school after graduation, and was beloved by her students. Encouraged by her party members, she began writing about learning English after entering politics. Using her columns in English newspapers on common grammatical mistakes and vocabulary usage, her debut book was released in 2010. Her latest work, Regina’s English Works for You 8, will be launched at this year’s Hong Kong Book Fair. 

Mrs Ip said the key to mastering English lies in diligence - read more, listen more, and write extensively. She emphasized that the priority should be on conveying messages accurately, rather than using ornate language. She expressed concern over the decline in English proficiency in the city, despite the abundance of learning resources and technological advancements. She also stressed the importance of not only developing strong communication skills, but also cultivating an understanding of diverse cultures.

Mrs Ip also urged young people to confront their weaknesses head-on. She recounted how she was once criticized for being “socially awkward” when she first joined the government as an administrative officer. Determined to improve her social skills, she took on the role of social secretary for the Administrative Service Association, organizing many social activities. 

Sharing words of wisdom from English poet Walter Savage Landor, Mrs Ip inspired young people saying “I strove with none, for none was worth my strife. Nature I loved, and next to Nature, Art”.  She said young people should remember that they do not have to compete with others. The enemy is yourself and it is oneself that one should strive to overcome. 

Mrs Ip’s interview video and article (in Chinese only) are available on the Read For More website.