The Hang Lung Department announced results yesterday, of which Hang Lung Group (0010) ‘s net profit increased by nearly 30% year-on-year, and Hang Lung Properties (0101) made an additional 9%
Group Chairman Chen Qizong is still optimistic about the overall property leasing business and said that it will provide support to its merchants, but believes that the retail industry in Hong Kong is difficult to return to its peak.
Hang Lung Group’s annual net profit was 6.816 billion yuan, an increase of 29% year-on-year, earnings per share of 5.01 yuan, a final dividend of 0.63 yuan, a total of 1.08 yuan for the year, up 35% year-on-year.
Last year, Hang Lung Properties ’basic net profit rose 9% year-on-year to 4.474 billion yuan, of which 97% came from property rental profits
After taking into account the impact of property revaluation gains and its related income tax and non-controlling interests, net profit attributable to shareholders fell by 24% to 6.172 billion yuan. Another final dividend was added, rising 2% to 0.59 yuan.
Chairman Chen Qizong said that the Sino-US trade war, Brexit, the devaluation of the renminbi and the social turmoil in Hong Kong caused uncertainty. He remained optimistic about the overall property leasing business and expected to benefit from the revenue brought by the mainland retail industry and new properties. Revenue will increase.
70% of tenants receive rent reduction
Chen also pointed out that Hong Kong is now facing internal and external problems, “other people are eating your cake, and they will drive away those who send the cake.” Therefore, it is difficult for Hong Kong’s retail industry to return to the period of high growth in the past few years.
Lu Weibo, the chief executive of Hang Lung Properties, said that in the second half of last year, he actively contacted tenants to reduce rents, involving 70% of the tenants. The extent of the rent reduction depends on the tenants’ operating environment and location.
Lu said that in the future, he will pay close attention to the retail market in Hong Kong and keep close contact with tenants. He will also provide more promotional activities to bring more business to tenants.
He emphasized that at this stage, it is not necessary to change the strategy for people’s livelihood, but to actively do better with more different methods.