Sun Hung Kai Properties Limited (SHKP) today announced its 2022/23 interim results. 

With the easing of the COVID situation in Hong Kong and on the mainland, we are glad to see the long-awaited reopening of the border and the economy on the road of recovery. Despite the pandemic, the Group continued to invest in Hong Kong, as well as mainland’s first-tier and key second-tier cities in a financially prudent manner. We are well-prepared to seize the opportunities arising from the economic recovery. 

Under the leadership of Chief Executive John Lee, a lot of work has been done to drive economic development and attract talent. With full border reopening in early February, the city saw a notable growth in visitor arrivals and a faster-than-expected rebound of the luxury hotel and retail markets. Footfall at the Group’s shopping malls has further picked up and there is a marked increase in the occupancy and room rates of our hotels recently. During the period, the performance of the Group’s retail portfolio remained resilient and occupancy of the office portfolio was stable. Since the end of 2022, we have seen a significant increase in leasing enquiries and we believe that leasing demand will continue to pick up as the economy recovers. 

As of 31 December 2022, the Group’s attributable residential land bank under development in Hong Kong exceeded 16 million square feet, adequate to meet our development needs for the next five to six years. This year the Group will offer a number of premium projects for sale. The second phase of NOVO LAND will be released very soon. In the next 10 months, we will put on sale University Hill near The Chinese University of Hong Kong, the first phase of the Tin Wing Stop Development, the second phase of The YOHO Hub, the first phases of two high-end projects in Kai Tak, and a joint-venture project on Prince Edward Road West. The attributable gross floor area of these projects totals 2.6 million square feet. 

On the mainland, in the next 10 months, the Group is planning to launch the first phase of the residential portion of Guangzhou South Station ICC, a new phase of Shanghai Arch and new batches of joint-venture developments such as the residential portion of Hangzhou IFC, The Woodland in Zhongshan and Oriental Bund in Foshan. 

The Group continued to expand its property investment portfolio. At the end of last year, the Group won the tender for the Artist Square Towers Project in the West Kowloon Cultural District. The Group will work closely with the West Kowloon Cultural District Authority to develop it into a landmark of arts, culture and tourism. The project will also create a strong synergy with the Group’s nearby landmarks, ICC and the High Speed Rail West Kowloon Terminus Development, forming a unique commercial cluster consisting of over 5.7 million square feet of premium grade-A offices and two luxury hotels. This commercial cluster will help boost the status of West Kowloon as a major business hub connecting Hong Kong with other Greater Bay Area cities. 

The Group’s large-scale development at 98 How Ming Street in Kwun Tong was completed recently. Handover of its grade-A offices has started and a large shopping mall underneath is scheduled to open in 2024. Including this integrated development, the Group’s attributable gross floor area of core commercial projects in Kowloon East exceeds three million square feet. The new development will have a strong synergy with the Group’s Millennium City office cluster and the APM mall in the vicinity. 

The Group’s mainland rental portfolio, especially retail premises, was affected by the pandemic during the period, but has seen a quick turnaround in footfall and tenant sales after the recent refinement of anti-pandemic policies and the government’s pro-growth initiatives. We will continue to develop integrated landmarks in first-tier and top second-tier cities, including Nanjing IFC, ITC in Shanghai, Hangzhou IFC and Guangzhou South Station ICC. 

The Group actively leverages smart technologies and digital solutions to enhance customer experience and service quality. Meanwhile, the Group continues to enhance the value of its existing commercial premises and improve their environmental performance to obtain green building certifications. Our iconic commercial buildings in Hong Kong, such as IFC, ICC and our headquarters, Sun Hung Kai Centre, have already obtained LEED Platinum certifications. Besides, all of our major commercial properties on the mainland have also attained LEED certifications. We will continue to obtain LEED Gold or Platinum certification for our core commercial projects under development. 

Irrespective of the challenging external environment, Hong Kong enjoys many distinct advantages under ‘One Country, Two Systems’ such as strong support from the motherland, close connection with the world, a capitalist system and a common law regime. The full resumption of normal travel has further strengthened the city’s global connectivity, giving fresh momentum to the city’s transition from stability to prosperity. Supported by our seasoned management team, strong financial position, well-trusted brand and time-tested business strategies, the Group has full confidence in the future and will continue to grasp all development opportunities with good potential, and contribute to the long-term prosperity of Hong Kong and the country.