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.