Sun Hung Kai Properties Limited (SHKP) today announced its 2021/22 interim results.

During the period under review, the Group’s overall business in Hong Kong continued to be affected by the COVID-19 pandemic.  Yet its shopping mall and hotel businesses improved when the pandemic eased in the second half of last year.   The Group’s mainland business was stable and its rental portfolio, particularly the shopping mall business, recorded satisfactory performance.

The Group continued to put up for sale its residential projects once they were ready. However, the pandemic and social distancing measures inevitably brought uncertainties to the issuance of government approvals for pre-sales as well as the timing of the sales launches. The Group is pressing ahead with the development of a number of landmark projects both in Hong Kong and on the mainland.  The basement work of the large-scale development atop the High Speed Rail West Kowloon Terminus is under way.  Guangzhou International Commerce Centre, a project in the core area adjacent to the Guangzhou South Railway Station, held its groundbreaking ceremony during the period.  In Hangzhou, construction work of the Jianghehui integrated development, which has just been named as Hangzhou IFC, recorded good progress. The 220-metre-tall office tower at ITC in Shanghai is scheduled for completion in the first half of this year.  These projects are set to boost the Group’s recurrent income over the long term.

During the period, overall occupancy of the Group’s retail portfolio remained stable.  In view of the worsening pandemic situation, the management team further raised the hygiene standards of the Group’s properties, stepping up cleaning and disinfection to ensure a safe environment for its customers, tenants and employees. In response to changing market trends and operating environment, the Group’s leasing teams will keep in close contact with shopping mall tenants to provide them with timely and appropriate support.  The Group will also leverage on the new round of consumption vouchers announced yesterday and roll out programmes to boost spending to increase tenant sales.  A number of initiatives will also be introduced to increase the competitiveness of the Group’s shopping malls.  They include optimizing tenant mix, adding green features, making best use of indoor and outdoor open spaces and adopting flexible marketing strategies.

While developing its business, the Group proactively supports the national goal of achieving carbon neutrality and continuously enhances its Environmental, Social and Governance (ESG) performances.  On top of obtaining prestigious green certifications for some of its major completed developments, the Group aims to get LEED certifications with gold or above ratings for all its major new properties for investment purposes. 

With Hong Kong facing a worsening Omicron outbreak, President Xi Jinping has expressed concern over the situation and given important instructions.  The Group is grateful for the sincere care of the Central Government, and will go all out to support the HKSAR Government, hoping all sectors of society will join the fight against the pandemic.  Most importantly, SHKP has lent for free two pieces of land to the Government for building isolation and treatment facilities to help meet the acute shortage of such facilities for newly infected COVID patients. The combined area of the two sites comes to 1.4 million square feet. To help drive vaccination especially among the elderly and children, the Group has allocated three venues for community vaccination centres, all located at office and shopping mall premises easily accessible by MTR, including Millennium City V in Kwun Tong, Landmark North in Sheung Shui, and YOHO Mall in Yuen Long. Other measures include distributing 400,000 rapid COVID-test kits to frontline anti-pandemic workers, the underprivileged, and the Group’s employees. Twenty-five medical grade disinfection robots will also be provided to public hospitals and clinics.

This year marks the 25th anniversary of the establishment of the HKSAR and the Group’s 50th anniversary of its public listing in Hong Kong.  With full confidence in the future of the mainland and Hong Kong, the Group firmly believes that Hong Kong will continue to prosper under ‘One Country, Two Systems’.  Hong Kong has reached the historical turning point of transitioning from stability to prosperity.  Under the National 14th Five-Year Plan, Hong Kong will further integrate into the national development, and will be able to strengthen its status as an international hub of finance, asset management, transportation and trade. It is also set to be developed into an international centre for innovation and technology. 2022 will be challenging for a number of reasons, which include the drastic surge of coronavirus cases, more stringent social distancing measures, recent growing geopolitical tensions in certain regions and major central banks’ quantitative tapering amid rising inflation.  Yet the relief measures and economic stimulus initiatives introduced in the Budget announced yesterday will give added impetus to the city’s economic recovery.

In the past half-century, the Group has weathered good and bad times together with the people of Hong Kong.  The Group would continue to adhere to its commitment to Hong Kong, fulfil its corporate social responsibility and uphold its philosophy of Building Homes with Heart.  With a premium brand of quality buildings and services, a customer-centric culture, seasoned management team, strong financial position, and continuous pursuit of innovation and excellence, the Group is well-positioned to take advantage of the opportunities that will surely arise after the pandemic.  The Group will together with Hong Kong continue our journey of success and scale new heights.

Please click here for details of the SHKP’s 2021/22 interim results.