Summary of 2021/22 Annual Results
- Despite the uncertainties surrounding the intermittent waves of COVID-19 resurgence, the Group’s underlying profit attributable to shareholders, excluding the effect of fair-value changes on investment properties for the year ended 30 June 2022 was HK$6.5 billion (2020/2021: HK$10.3 billion).
- Revenue from property sales, including property sales of associates and joint ventures, attributable to the Group was HK$10.8 billion (2020/2021: HK$18.5 billion), comprises mainly the sales of residential units and car parking spaces in the project completed during the Financial Year, namely Mayfair By The Sea 8 and sales of remaining stocks in projects completed in previous financial years.
- Final dividend of HK42 cents per share. Together with the interim dividend paid, the total amount of interim and final dividends for the Financial Year is HK57 cents per share, representing an increase of 3.6% year-on-year.
- The Group remains focused on long-term sustainable growth. With a strong financial position, the Group is well positioned to meet the challenging economic environment and to grasp opportunities.
Results and Business Highlights
HONG KONG, Aug. 25, 2022 /PRNewswire/ — Sino Land Company Limited (Stock Code: 83) today announced its annual results for the year ended 30 June 2022 ("Financial Year"). The Group’s underlying profit attributable to shareholders was HK$6,530.6 million for the Financial Year (2020/2021: HK$10,315.8 million). Underlying earnings per share for the Financial Year was HK$0.86, compared with HK$1.42 in the Financial Year of 2020/2021.
After taking into account the non-cash item of revaluation loss (net of deferred taxation) on investment properties of HK$770.8 million, the Group reported a net profit attributable to shareholders of HK$5,735.3 million for the Financial Year (2020/2021: HK$9,646.0 million). Earnings per share for the Financial Year was HK$0.76, compared with HK$1.33 in the Financial Year of 2020/2021.
The Board recommended a final dividend of HK42 cents per share (2020/2021: HK$41 cents). Together with the interim dividend paid of HK15 cents per share, total interim and final dividend for the full year is HK57 cents per share, representing a year-on-year growth of 3.6% excluding special dividend paid last year.
The Group’s balance sheet has remained strong and healthy. As of 30 June 2022, the Group had net cash of HK$41,534.3 million, an increase of HK$2,651.1 million compared to a year ago. With the strong financial position, the Group is well positioned to meet the challenging economic environment and to grasp opportunities.
Property sales fueled by attractive pipeline of projects
The Group’s total attributable revenue from property sales for the Financial Year, (including attributable share of associates and joint ventures) was HK$10,841.8 million (2020/2021: HK$18,596.4 million), comprising mainly the sales of residential units and carparking spaces in the project completed during the Financial Year, namely Mayfair By The Sea 8 in Pak Shek Kok, as well as the sales of remaining stocks of residential units and carparking spaces in projects completed in previous financial years, including Grand Central in Kwun Tong, 133 Portofino in Sai Kung, and The Dynasty in Zhangzhou. During the Financial Year, the Group launched three new residential projects in Hong Kong for sale, namely Villa Garda I and II in Tseung Kwan O, Grand Mayfair I (Phase 1A) and Grand Mayfair II (Phase 1B) in Yuen Long, and La Marina in Wong Chuk Hang.
Looking ahead, the Group has an exciting pipeline of new projects to be launched. In addition to Villa Garda III in Tseung Kwan O and ONE CENTRAL PLACE in Central, which have obtained pre-sale consents, the Group expects to obtain pre-sale consents for three other residential projects in the financial year 2022/2023, namely Grand Mayfair Phase 2 in Yuen Long, Wong Chuk Hang Station Package Four Property Development, and Yau Tong Ventilation Building Property Development. The timing for launching these projects for sale will depend on when the pre-sale consents are received and the prevailing market conditions.
During the Financial Year, the Group acquired stakes in two projects in Singapore, including a 20% interest in a commercial and residential site located in Jalan Anak Bukit with a total gross floor area of approximately 1,007,026 square feet. The development will comprise a mix of residential, serviced residences, retail, food and beverage outlets and offices. A new bus interchange and an underground pedestrian link to Beauty World MRT Station will also be integrated into the development. The Group also acquired 25% interest in Golden Mile Complex located on 5001 Beach Road, with an existing total gross floor area of approximately 609,791 square feet. The project involves the re-development of the property into a new mixed-use development, which may comprise residential, office, and retail. In Hong Kong, the Group acquired an additional 6.75% interest in Grand Victoria, an existing residential project located in Southwest Kowloon, from a joint venture partner, raising its interest in the project from 22.50% to 29.25%. As at 30 June 2022, the Group had a land bank of approximately 20.4 million square feet of attributable floor area in Mainland China, Hong Kong, Singapore and Sydney, which will be sufficient to meet the Group’s development needs over the next few years.
Good recurrent rental income with a growing investment properties portfolio
The Group’s investment properties will continue to be a core pillar of the Group’s sustainable business growth strategy. Some of the Group’s projects currently under development comprise commercial and office spaces, and will be added to the Group’s investment properties portfolio for recurrent rental income. These projects aggregate to over 1.7 million square feet in attributable space and provide approximately a 16% increase in terms of space to our existing investment properties portfolio.
For the Financial Year, the Group’s attributable gross rental revenue, including share from associates and joint ventures, was HK$3,546.1 million. The Group recorded a slight improvement in average occupancy rate to 90.8% for the Financial Year (2020/2021: 89.8%). The net rental income for the Financial Year was HK$3,101.6 million (2020/2021: HK$3,216.5 million), representing a decrease of 3.5% year-on-year.
For the Retail sector, to support our tenants during this challenging time, the Group has rolled out a series of initiatives to drive consumption in its retail properties during the Financial Year. In tandem with the Government’s Consumption Vouchers Schemes ("Consumption Vouchers"), apart from partnering with major payment gateways, business partners and tenants to incentivise consumers to use their Consumption Vouchers in our shopping malls, the Group organised a series of events in flagship shopping malls including Olympian City 2 and Tuen Mun Town Plaza to celebrate the 2021 Tokyo Olympic Games, which were well attended by celebrities and many of their supporters. Overall, footfall and tenant sales at our flagship malls have improved from the low of the pandemic. The Group’s retail portfolio recorded an improvement in average occupancy rate to approximately 92.9% (2020/2021: 90.4%)
Performance of the office sector remained challenging as uncertainties surrounding the pandemic have continued to impact the office market. The Group’s office portfolio recorded an average occupancy of 89.7% (2020/21: 91.0%) for the Financial Year. Meanwhile, the Group continued to enhance our portfolio to increase our competitiveness. Landmark South and One North are two of the Group’s new projects utilising best-in-class building specifications and accredited green features. The Group recently obtained the Occupation Permit for the Landmark South, and it should attract occupiers seeking high quality and sustainable office spaces.
For the Financial Year, the Group’s hotel revenue, including attributable share from associates and joint ventures, was HK$582.7 million compared to HK$350.8 million last year, and the segment operating profit was HK$92.9 million as compared to the operating loss of HK$69.1 million last year. While the pandemic may continue to impact us in the short term, we are optimistic about the growing demand for luxury hospitality in our core markets. The Group opened The Fullerton Ocean Park Hotel Hong Kong in July 2022, the first Fullerton hotel in Hong Kong. Positive responses and feedback were received from our discerning guests since the hotel’s early-stage soft opening.
Remains focused on long-term sustainable growth
The Group remains focused on long-term sustainable growth.
"As we step into the financial year 2022/2023, the Group will remain vigilant in monitoring the market development, whilst proactively facing the challenges and seizing opportunities ahead. While recent rounds of interest rate hikes may assert pressure on the property sector, the residential market in Hong Kong remains resilient and fundamentally sound. End-user demand remains buoyant in Hong Kong as reflected by successful launches in the market in recent months." said Mr. Robert Ng Chee Siong, Chairman of Sino Land.
"The Group’s strong commitment to Hong Kong and Mainland China remains intact, and we are committed to promoting positivity in the community as we grow with it. While there continues to be challenges ahead, with our strong financial position and sustainable business growth strategy, the Group is well positioned to meet the challenging economic environment and to grasp opportunities."