appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Mia Castagnone

Hong Kong developer Hang Lung Properties said it has a ‘fair chance’ of achieving a record year as it reported a 23 per cent profit increase for the six months to June 30, although it warned that international and domestic risks to its business persist.
Net profit rose to HK$2.39 billion (US$306 million) in the first half of the year, compared with HK$1.95 billion in the same period last year, while total revenue dropped 1 per cent to HK$5.23 billion, according to an exchange filing on Monday.
“We have a fair chance of achieving another record year in spite of the slow economy,” said Ronnie Chan Chi-chung, chairman of Hang Lung Properties, in the statement.
“There are plenty of uncertainties both domestically and internationally. Visibility beyond 2023 is unclear. Until the clouds lift, we will continue working to enhance operational efficiencies to make our assets everywhere even more productive.”

The developer added that it has a strong pipeline of projects yet to be completed, including Westlake 66 in Hangzhou, a retail office and hotel development, as well as “a few hotels and residential developments” in the works in mainland China.
Looking ahead, both international and domestic uncertainties will affect business operations, the developer said in a statement. Globally sluggish economic conditions coming out of Covid-19 pandemic, with relatively low GDPs and rising interest rates, will remain as headwinds in the short term.
Hang Lung’s luxury malls in mainland cities proved to be a strength after a few challenging years.
China’s housing authorities vow support as property crisis deepens
For example, Plaza 66 and Grand Gateway 66 in Shanghai recorded year-on-year revenue growth of 23 per cent and 11 per cent, respectively, in the first half of 2023. Rental revenue for luxury malls outside Shanghai also increased by 11 per cent year on year.
Overall business sentiment in mainland China rebounded quickly after the Covid-19 surge in December last year when the spread of cases subsided in early January and related pandemic containment measures were lifted, the developer said.
Meanwhile, the company’s Hong Kong portfolio achieved year-on-year rental growth for the first time since 2020, with Hang Lung citing the government’s “Hello Hong Kong” campaign, a new round of consumption vouchers and a mall rewards programme for boosting consumer sentiment.
As China signals property revival, can ‘risky’ real estate still drive growth?
Revenue from retail properties located in central business and tourist districts in Hong Kong grew by 8 per cent, while the developer’s shopping centre portfolio saw overall revenue increase by 4 per cent compared with the same period last year. Overall occupancy remained stable at 97 per cent.
The results are in line with expectations overall, with slightly stronger-than-expected Hong Kong rental performance, Citi said in a note on Monday. The bank has recommended a buy for the developer’s stock, adding that downside risks include worse-than-expected retail sales and rental growth in China, slower sales of noncore investment properties and worse-than-expected economic developments and policies in Hong Kong and mainland China.
Hang Lung expects to complete the construction of its second premium hotel, Grand Hyatt Kunming, in the first half of 2024. It also expects its office portfolio to maintain rental growth, saying demand still outweighs the limited supply of grade A office towers.
Hong Kong mortgage rise seen keeping property investors away
Preparations are also under way for the mainland China launch of the company’s premium serviced residences brand, Hang Lung Residences. The first batch of units, at Heartland Residences in Wuhan, is slated for handover to buyers in late 2023.
Hang Lung Group, the parent company of Hang Lung Properties, reported a 16.9 per cent year-on-year increase in net profit to HK$1.68 billion in the first six months of the year, while revenue contracted 1.4 per cent to HK$5.53 billion.
Hang Lung Properties’ Hong Kong shares gained 1 per cent to HK$12.10 on Monday, while Hang Lung Group fell 0.7 per cent to HK$12.16.


China’s worsening retail slowdown bolsters case for stimulus

China’s economy under further pressure in August, as analysts expect rebound next quarter

Why Shanghai offers hope for China’s ailing real estate market

Beijing can rewrite China’s property rules, but it can’t undo the damage

China property

Hong Kong developer Hang Lung Properties reports 23 per cent profit growth in first half but warns of ‘clouds’ in outlook

An illustration of Hang Lung Properties’ Westlake 66 project, which is in the works in Hangzhou. Image: Handout

Grand Gateway 66 in Shanghai, developed by Hang Lung Properties. Photo: Handout

Beijing, Shenzhen and Guangzhou officials vow support for China’s struggling property market, stocks surge

This photo taken on July 4, 2023 shows a general view of residential buildings in Hegang city in northeastern China’s Heilongjiang province. China’s real estate industry grew at lightning speed from the late 90s, and was a major component of the country’s turbocharged economic expansion. But with growth slowing and debts swelling, authorities cut off access to easy loans in 2020, pummelling the sector and causing a record-breaking slump last year. 
A wave of young Chinese are choosing to invest in dirt-cheap real estate in declining and remote industrial regions, ditching China’s modern, expensive metropolises. Photo: AFP

This photo taken on July 4, 2023 shows people relaxing by a lake near residential buildings in Hegang city in northeastern China’s Heilongjiang province. Photo: AFP

China property developer Country Garden expects to post loss due higher impairment provisions

The logo for Country Garden Holdings Co. at the company’s Fengming Haishang residential development in Shanghai, China. Photo: Bloomberg

This aerial photo taken on October 31, 2021 shows buildings of China’s developer Country Garden Holdings in Zhenjiang, in China’s eastern Jiangsu province. Photo: AFP

Hong Kong’s ‘moneymaking genes’ help it trump charmless Frankfurt, LA and Singapore, says tycoon Ronnie Chan

Cities such as Hong Kong, London, New York and Paris have charm, Chan says. Photo: Jonathan Wong

‘Hong Kong has always been a business-led community, meaning it’s always about making money,’ Chan says. Photo: Jonathan Wong

Business

China Business

Companies

Property

Hong Kong & China

International

Net profit rose to HK$2.39 billion (US$306 million) in the first half, while total revenue dropped 1 per cent to HK$5.23 billion
Mall revenue rebounds, but ‘plenty of uncertainties’ persist, both domestically and internationally, company says


Net profit rose to HK$2.39 billion (US$306 million) in the first half, while total revenue dropped 1 per cent even as mall revenue rebounded. Still, ‘plenty of uncertainties’ persist, both domestically and internationally, company says.


Asia housing and property

Hong Kong property

Hang Lung Properties