2021/22 Annual Results Announcement
Sun Hung Kai Properties Limited (SHKP) today announced its 2021/22 annual results.
During the year under review, the Group’s business in Hong Kong and on the mainland continued to be affected by a fluctuating pandemic situation. Nevertheless, SHKP has dealt with the difficulties and challenges with proactive actions and effective strategies.
The global economy is full of uncertainties, affected by supply chain disruptions, growing geopolitical risks, high inflation, and rising interest rates. To tackle the challenges, the Group will speed up the sales of its projects to increase cash flow. Since July 2022, the Group has recorded contracted sales of over HK$12 billion. Launched two months ago, NOVO LAND was well received by the market. More than 1,500 units were sold with sales proceeds exceeding HK$9.4 billion. On the other hand, gross rental income of the Group’s property investment portfolio reached HK$24.8 billion in the year.
The Group has always adhered to a prudent financial policy, with low gearing and ample liquidity. Listed in Hong Kong five decades ago, the Group has gone through many ups and downs, and accumulated a wealth of knowledge and experience. In the face of growing headwinds, the management team will remain humble, work harder and stay alert to market fluctuations and changes. We are confident that we will overcome the challenges.
The Group will as always put its projects up for sale once they are ready. For the rest of the current financial year, major projects being planned for sale include the second phases of Silicon Hill in Tai Po, NOVO LAND in Tuen Mun and The YOHO Hub in Yuen Long. The last phases of PARK YOHO and Wetland Seasons Bay in Yuen Long are scheduled to be put on the market this month.
Overall footfall of the Group’s shopping malls in Hong Kong registered a rebound, which could be attributable to the government’s new batch of consumption vouchers this April and the malls’ promotional and marketing campaigns. During the year, active members of The Point increased by nearly 20%. New properties for investment purpose being developed include the office-cum-retail joint-venture development in How Ming Street, Kwun Tong; the YOHO Mall extension in Yuen Long; and the retail and office portions of ITC in Shanghai and Nanjing IFC Mall in Nanjing. These projects will further strengthen the Group’s cash flow over time.
To help build a better Hong Kong, the Group strives to develop its large-scale residential projects and integrated complexes into comfortable, green and sustainable communities for cross-generational living, work and enjoyment. For instance, NOVO LAND is the city’s first residential development to obtain both the WELL Building Standard™ pre-certification and a Fitwel rating, demonstrating its achievement in sustainability and design for wellness. NOVO LAND will feature a clubhouse, communal gardens and play areas spreading some 400,000 square feet with 88 amenities. Complemented by high-end smart technologies, it will provide residents with Nordic-style wellness living. Moreover, the Group will continue to invest capital and resources to obtain LEED Platinum or Gold rating for its new core commercial projects and those under development. For existing buildings, it will continue to enhance their performance under different green building certification systems. Recently both ICC and Two IFC attained LEED Platinum certifications.
The Group commenced the superstructure work of its landmark High Speed Rail West Kowloon Terminus Development during the year. The project will feature a 1.5-kilometre parkway to connect old districts, including Jordan and Yau Ma Tei, with the new waterfront in West Kowloon, bringing old and new communities together. This project, together with the adjacent ICC and the West Kowloon Cultural District, will form a major business, retail, cultural and transport hub for the Greater Bay Area. It will also synergize with the Group’s other projects along the high speed rail, including Guangzhou South Station ICC.
The Group is committed to serving the community. When Hong Kong was hit hard by the pandemic early this year, the Group lent for free 1.4 million square feet of land for building community isolation facilities. The Group’s subsidiary SmarTone also swiftly built out 5G network coverage for many such facilities. Spaces at the Group’s two commercial premises next to MTR stations were offered as venues for community vaccination. Staff were mobilized to support the government’s anti-pandemic efforts. Meanwhile, Hong Kong’s first large-scale transitional housing United Court came into operation in the middle of this year. The Group not only lent the site for United Court at a nominal rent, it also supported the planning and construction of the project, which took only 12 months to complete after ground-breaking. The United Court provides 1,800 units and comes with many specially designed features and services provided by the operator Hong Kong Sheng Kung Hui Welfare Council. It is no doubt a model for other transitional housing projects. The Group also promotes innovation and technology. SmarTone’s 5G Lab at Sky100 arranges frequent 5G STEM classes and guided tours, attracting more than 400,000 visitors plus students from over 200 schools since its opening.
This year marks the 25th anniversary of Hong Kong’s return to the motherland and the 50th anniversary of the Group’s public listing in Hong Kong. Over the years, the Group has actively participated in the development of Hong Kong and the mainland. On the back of its strong financial position, well-trusted brand, time-tested business strategy and seasoned management team, the Group will continue to develop premium projects in Hong Kong and on the mainland. Having the strong support of the motherland and seeing Hong Kong as its home, the Group will continue to adhere to its strong belief in Building Homes with Heart and contribute to the economic development of Hong Kong and the mainland. The Group is confident that Hong Kong, as the Pearl of the Orient, will shine even brighter in the future.
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