Press Release

27/07/2017
Hang Lung Results Remain Resilient Amid Tough Business Environment
(Hong Kong, July 27, 2017) Hang Lung Properties Limited (HKSE Stock Code: 00101) and Hang Lung Group Limited (HKSE Stock Code: 00010) today announced solid financial results for the six months ended June 30, 2017.
 
Benefitting from higher property sales, Hang Lung Properties recorded an increase in total revenue of 1%, while total revenue of Hang Lung Group was stable. If excluding the effects of the 5% period-on-period Renminbi (RMB) depreciation against the Hong Kong Dollar, revenue of the core property leasing business of Hang Lung Properties and Hang Lung Group both increased by 1%. The asset enhancement initiatives in Shanghai and Hong Kong caused a short-term disruption of rental income as expected. Total operating profit both increased by 5% to HK$4,541 million and HK$4,743 million for Hang Lung Properties and Hang Lung Group, respectively.

Commenting on the performance, Mr. Ronnie C. Chan, Chairman of Hang Lung Group and Hang Lung Properties, said, “We have achieved solid performance with our core leasing business in the first half of 2017 against a backdrop of challenging business conditions and the 5% RMB depreciation. Committed management efforts in maximizing our returns, improving our tenant mix and enhancing facilities and services will allow our properties to thrive as mainland China’s economy continues to pick up steam.”

On the Mainland, the substantially completed renovation program at the Plaza 66 mall in Shanghai has started to produce very favorable results in both revenue and retail sales during the first half of 2017. Following in Plaza 66’s footsteps, Grand Gateway 66 in Shanghai also commenced its major asset enhancement program earlier this year. These initiatives are important to strengthen the Group’s long-term competitive edge and profitability.

On the back of satisfactory leasing progress of the first office tower that attracted a number of multinational and renowned national corporations, the Group has begun the construction work for the second office tower at Center 66 in Wuxi. This new tower will have a gross floor area of 56,000 square meters.

In Hong Kong, the renovation programs at 9 Kingston Street in Causeway Bay and Phase 1 of The Peak Galleria have commenced. Optimization of tenant mix and asset enhancement initiatives which Hang Lung has applied to a number of key projects are expected to add further momentum to the Group’s core property leasing business in the long run.

Hang Lung will continue to adopt a prudent and sound financial management strategy to support its long-term growth. A strong balance sheet and cash generation capability allow the Group to be well placed to best capture the market opportunities lying ahead.

The Boards of Directors of Hang Lung Properties and Hang Lung Group have proposed interim dividend of HK17 cents per share and HK19 cents per share, respectively, to be paid on September 28, 2017, to shareholders registered as at September 14, 2017.