Press Release

30/01/2018
Hang Lung Poised to Reach New Heights with Continuous Improvements in Core Leasing Business
(Hong Kong, January 30, 2018) Hang Lung Properties Limited (Stock Code: 00101) and Hang Lung Group Limited (Stock Code: 00010) today announced financial results for the year ended December 31, 2017.

2017 Annual Performance at a Glance:
Our core property leasing business across Hong Kong and the Mainland held their ground, mainly contributed by the completion of various asset enhancement initiatives in Shanghai and Hong Kong. Rental revenue from our leasing portfolio for Hang Lung Properties increased to HK$7,779 million and that of Hang Lung Group was stable at HK$8,354 million.

Mr. Ronnie C. Chan, Chairman of Hang Lung Group and Hang Lung Properties, said, “In 2017, we witnessed continuous signs of recovery in retail sales for both the Hong Kong and Mainland markets. This was especially obvious in the luxury sector in tier-one cities on the Mainland. The government’s continued stimulation of private consumption in general has given rise to diversification and expansion in ’new retail’ sectors. Our leasing properties were able to capture the upward trend through vigilant asset enhancement initiatives in optimizing tenant mix and upgrading facilities and services, aiding the further build-up of the solid ground of the leasing portfolio. I am confident that with management’s untiring efforts to achieve continuous improvements, our performance is destined to flourish and reach new heights for many years to come.”

On the Mainland, when excluding the leased areas under renovation, all our properties recorded growth in retail sales, which is especially evident at Plaza 66 in Shanghai. With the completion of its renovation program, Plaza 66 has strengthened its positioning as the Home to Luxury in China. Mr. Chan added, “More than 20 years ago, we chose to kick-start Hang Lung’s development in mainland China by investing in Shanghai. Since then we have been successful in establishing iconic landmarks in different Mainland cities. Plaza 66 today has successfully transformed itself into the true epitome of modern luxury and redefined the retail landscape in China, which was demonstrated by its strong growth in retail sales of 26% after the completion of its upgrading works.” Grand Gateway 66 in Shanghai commenced its three-year major upgrading program in early 2017. The work will be carried out in phases until mid-2019. The renovation will not only strengthen the mall’s long-term competitiveness but also reaffirm Hang Lung’s leading market position in operating high-end malls in mainland China.

In Hong Kong, revenue increased 2% year-on-year for both Hang Lung Properties and Hang Lung Group. The renovation program at 9 Kingston Street in Causeway Bay was completed in the second half of 2017. The 100,000 square feet of rejuvenated retail space provides a unique and inviting experience of stylish contemporary living for customers. It also completes the revitalization of Fashion Walk as an iconic shopping hub in the city. The carefully planned asset enhancement works continued in Hong Kong with phase one of The Peak Galleria’s renovation works commencing in March 2017. The area will be re-opened before the end of 2018, introducing new shopping and leisure concepts to Hong Kong’s most iconic tourist attraction.

Hang Lung will continue to adopt a prudent and sound financial management strategy to support its long-term growth, meet its capital commitments and continue its program of expansion.

The Boards of Directors of Hang Lung Properties and Hang Lung Group have proposed a final dividend of HK58 cents per share and HK61 cents per share, respectively, to be paid on May 16, 2018, to shareholders registered as at May 3, 2018.

Select and copy the link below:

Select and copy the link below:

Copied to clipboard