Sun Hung Kai Properties (SHKP) has reached an agreement with Airport Authority Hong Kong (AAHK) to extend the term of SHKP’s Airport Freight Forwarding Centre (AFFC) for 15 years. SHKP has also pledged to invest at least $400 million in a comprehensive upgrade of AFFC to provide smarter and more customer-centric warehousing and logistics facilities. This is set to further strengthen Hong Kong’s position as an international aviation and trade centre.

Today, under the witness of Secretary for Transport and Logistics Mable Chan, Deputy Director-General of the Economic Affairs Department of the Liaison Office of the Central People's Government in the HKSAR Lu Feng, AAHK Chairman Fred Lam, SHKP Chairman and Managing Director Raymond Kwok, AAHK Acting Chief Executive Officer Vivian Cheung, and SHKP Executive Director Christopher Kwok, SHKP Executive Director Allen Fung and AAHK Commercial Executive Director Cissy Chan signed the term extension agreement for their respective parties.

Secretary for Transport and Logistics Mable Chan said: “AFFC has been a cornerstone of Hong Kong International Airport’s (HKIA) cargo operations for 27 years.  Our airport has been ranked as the world’s busiest international cargo airport by the Airports Council International for 13 years since 2010. The airport’s Three Runway System is now fully operational, and its capacity will continue to increase. The investment in AFFC is both timely and well-placed. The HKSAR government and AAHK will continue to collaborate with AFFC and other partners to consolidate and enhance Hong Kong’s position as an international aviation hub and logistics hub.”

Fred Lam, Chairman of AAHK, said, “We are actively enhancing the logistics infrastructure of the airport, which include a new smart logistics hub, an expanded hub for international couriers, and a transit mail centre. The lease of the Airport Freight Forwarding Centre has been renewed until 2043, and the facility will undergo upgrade and reconfiguration, demonstrating the Centre’s strong confidence in the future development of the airport. We look forward to the continuous support from the Airport Freight Forwarding Centre for the development of Hong Kong's air cargo industry, and HKIA scaling new heights.”

Raymond Kwok, Chairman and Managing Director of SHKP, said: “Hong Kong enjoys the unique advantages of being ‘backed by the motherland and closely connected to the world’ With the vast mainland market right on its doorstep, Hong Kong benefits from zero tariffs on most imports and exports, along with very efficient customs clearance. This combination gives Hong Kong a very strong competitive edge as a transshipment hub. Air transport plays a pivotal role in Hong Kong’s economy and trade, accounting for over 45% of Hong Kong’s trade value. It is noteworthy that under AAHK’s leadership, HKIA has become the world’s busiest cargo airport. Despite earlier disruptions from the pandemic, cargo volumes have now surpassed pre-2019 levels, with AFFC playing a significant role by handling approximately 30% of the airport’s cargo throughput.”

He added that: “SHKP actively supports the directives from the Third Plenary Session of the 20th Central Committee of the Communist Party of China, which emphasize strengthening Hong Kong’s position as an international transportation and trade centre. With the backing of the Transport and Logistics Bureau and AAHK, SHKP not only renews the lease for AFFC but also makes significant investments in a comprehensive upgrade of AFFC. This initiative will enhance Hong Kong’s role as a major international aviation logistics hub, foster closer ties with other cities in the Greater Bay Area and help the city seize opportunities presented by the Belt and Road Initiative and markets in the Global South. The upgrade also reflects the confidence of AFFC’s customers in Hong Kong and is designed to meet their need for greater operational efficiency.”

Designed, built, and managed by SHKP, AFFC offers over 1.5 million square feet of air freight logistics and office space. Since its inception in 1998, AFFC has been known for its efficient, timely, and high-quality services. Its building design features a low-rise configuration that allows for easy access, complemented by high ceilings and numerous convenient loading and unloading bays. This makes it the preferred choice for many small and medium-sized freight forwarders.

The upgrade project is already underway, with phased completion expected to begin in early 2026. Upon completion, AFFC’s overall cargo throughput capacity is set to increase by up to 30%. In addition to refurbishing the building, AFFC will introduce several enhancement initiatives, including:

1. Flexible warehouses: Customers will have the flexibility to customize warehouse layout according to their needs, which is particularly appealing to small and medium-sized enterprises. 
2. Smart digital systems: Incorporation of a smart traffic management system to improve vehicle flow control, utilizing big data from the airport to enhance logistics efficiency. In addition, a smart building management system will be introduced to increase energy efficiency.
3. Green building features: In line with national and Hong Kong’s targets on carbon neutrality, as well as AAHK’s goal to become the world’s greenest airport, AFFC will introduce green energy facilities such as LED lighting, solar panels, and charging facilities for electric trucks and forklifts. Green elements will also be integrated into the building’s design.  
4. Wellness: A range of facilities will be added, including co-working spaces, rest areas, a gym and showers. There are also plans to add more dining and retail options. These facilities will help create a healthier working environment, boost productivity, and enhance employee well-being.
    

Sun Hung Kai Properties Limited (SHKP) today announced its 2024/25 interim results.

During the period under review, SHKP kept up its efforts in delivering premium quality development projects and services despite global economic uncertainties.  Riding on the Group’s solid financial position, sizeable recurrent income, strong leadership, experienced execution teams and time-tested strategies, the Group was able to navigate the ever-changing environment and deliver satisfactory business performance. 

In Hong Kong, the Group achieved contracted sales of about HK$24.8 billion in attributable terms during the period. Major contributors included Cullinan Sky Phase 1 in Kai Tak, Victoria Harbour Phase 2B in North Point, The YOHO Hub II in Yuen Long and NOVO LAND Phase 3B in Tuen Mun. The remaining units from various completed properties such as St Michel in Sha Tin and Dynasty Court in Mid-levels Central continued to receive positive market response. As at the end of last year, the Group’s contracted sales yet to be recognized in Hong Kong amounted to HK$30.4 billion, of which about HK$20.2 billion is expected to be recognized in the second half of this financial year. Over the next 10 months, the Group plans to launch YOHO WEST PARKSIDE in Tin Shui Wai, the second phases of Cullinan Harbour and Cullinan Sky in Kai Tak, the first phase of the Sai Sha development, namely SIERRA SEA, NOVO LAND Phase 3A in Tuen Mun and the first phase of the residential project next to MTR Kwu Tung Station, which is under construction.

Planned meticulously for over 30 years, the Group’s upcoming Sai Sha project is scheduled for completion in phases over a number of years. In addition to strengthening transport connectivity and infrastructure, the Group has incorporated innovative, family- and pet-friendly development concepts into the project to create a vibrant community. Surrounded by scenic mountains and the sea, the residential portion of the development is complemented by the GO PARK Sai Sha, a 1.3 million-square-foot sports-and-commercial complex that opened to the public in January this year. With facilities for popular and emerging sports as well as amenities for entertainment, dining and recreation, the complex can cater to the lifestyles of residents across different generations and is poised to become a ‘back garden’ for families to spend quality time together. 

The Group’s property investment portfolio in Hong Kong continued to provide a sizable and stable recurring income for the Group while overall occupancy of the portfolio remained satisfactory.  The shopping mall beneath The Millennity in Kwun Tong and Cullinan Sky Mall connected to MTR Kai Tak Station are scheduled to open in phases starting later this year. International Gateway Centre (IGC), the offices atop the High Speed Rail West Kowloon Terminus, will be handed over to tenants starting in 2026. These new investment properties will become new sources of recurrent income for the Group. The Group also carried out ongoing enhancements of assets and services to increase the competitiveness of its shopping malls. The Point, the integrated loyalty programme for SHKP malls, continued to enhance shoppers’ experiences to attract tourists and local customers. A VIP programme has recently been launched to reward premium members with exclusive privileges, including EV charging booking, extra parking hours and bonus points, and a soon-to-be-launched VIP lounge.

On the mainland, the Group’s contracted sales yet to be recognized as at the end of last year reached RMB12.5 billion, of which about RMB7.8 billion is expected to be recognized in the second half of this financial year. In January this year, the Group launched the first batch of the second phase of Lake Genève in Suzhou with an encouraging sales response. In the coming 10 months, the Group plans to launch new batches of joint-venture developments, such as Lake Genève in Suzhou, Hangzhou IFC, and Oriental Bund in Foshan. On the property investment front, the Group registered a mild decrease in rental income during the period, mainly due to a decline in turnover rent of its retail portfolio. In addition, the remaining portion of Three ITC in Shanghai, including an office skyscraper Tower B, a flagship mall ITC Maison and a hotel Andaz Shanghai ITC, will be completed in phases starting in the second half of 2025. 

The Group proactively upgrades its existing properties to meet higher green building standards. A strong advocate of renewable energy, the Group joined hands with other partners to develop Hong Kong’s first privately funded solar farm on a landfill. The project will be completed in 2025 with the capacity of generating 1.2 million kWh of green electricity annually. The Group’s commitment to sustainable development has garnered recognition locally and internationally. It was named a constituent of the Dow Jones Sustainability Asia Pacific Index for the second consecutive year. The Group also ranked among the top three companies in the Hang Seng Corporate Sustainability Index for the fifth year in a row, maintaining the highest AAA rating.

With the unwavering support of the Central Government, the Group believes Hong Kong will further leverage the unique advantages of ‘One Country Two Systems’ to seize opportunities and embrace changes. Supported by its low tax regime, sound common law system, free flow of capital, well-functioning exchange-rate system and high adaptability, Hong Kong will endeavour to build itself into an international hub for high-calibre talent. With full confidence in the long-term prospects of the mainland and Hong Kong, and upholding its belief in Building Homes with Heart, the Group will adhere to solid and prudent financial management practices, maintain a low gearing ratio, and leverage its diversified investment portfolio to maintain a stable and sizeable recurrent income. By exercising stringent control over construction and other costs, the Group will continue to develop iconic integrated projects and sustainable communities that enhance the quality of life for residents, contributing to the strengthening of Hong Kong’s status as an international financial, trade and transportation centre.
 

Sun Hung Kai Properties (SHKP) and the Hong Kong Tourism Board (HKTB) presented a cheque for HK$1.55 million to The Community Chest of Hong Kong today. The donation will support the Hong Kong Anti-Cancer Society and The New Voice Club of Hong Kong for cancer prevention and rehabilitation services, benefitting close to 7,000 patients. The funds were raised from donations during the Sun Hung Kai Properties Hong Kong Cyclothon last year, along with additional contributions from SHKP, underscoring the Group’s commitment to sports for charity.

SHKP Chairman and Managing Director Raymond Kwok said: “SHKP has collaborated with HKTB and The Community Chest of Hong Kong for years to raise funds through charitable events to help people in need. Cancer is the leading cause of death in Hong Kong, and early detection can substantially improve the chance of successful treatment. Some throat cancer patients are both physically and emotionally traumatized during and after treatment. We hope that this donation will help the underprivileged get cancer screenings for early prevention, while also helping survivors adapt to their new life as soon as possible.”

Organized by HKTB, Sun Hung Kai Properties Hong Kong Cyclothon 2024 took place on 13 October last year, attracting nearly 6,000 participants. Funds raised from the event, together with SHKP’s additional contributions, were donated to The Community Chest of Hong Kong. This donation, combined with SHKP’s sponsorship for The Community Chest Corporate Challenge 2025 in January this year, has resulted in a total of HK$5 million raised for the Community Chest. 

Since 2015, SHKP has been the title and charity sponsor of the Hong Kong Cyclothon. In recent years, SHKP has directed the proceeds towards initiatives that enhance the physical and mental wellness of the community. These include support for stroke and heart disease patients and their caregivers, as well as sponsoring screenings for dementia and cardiovascular disease for the underprivileged. 

The Hong Kong Anti-Cancer Society will use the donation for cancer prevention and early detection services, in particular medical screening, testing and personalized health counselling for people at high risk of cancer, such as housewives exposed to grease and smoke, catering workers and members of underprivileged families. The New Voice Club of Hong Kong provides various kinds of support for laryngectomy patients and laryngeal cancer survivors, such as rehabilitation training and counselling for those who have undergone vocal cord removal, as well as support for their family members. The club also provides auxiliary medical equipment at discounted prices and free maintenance services.