Page 23 - Hang Lung Properties 2012 Annual Report

್ϾdҢࡁଉ׼ණྠʥϞҷഛʘஈfᎇഹ
၍ଣᅼό͟ഄଫ׌ၳೊཀನЇ੗ණόᐄ
༶dܿ኷ˢˢޫ݊fतй݊࿁ʮ̡ਿᄴϾ
ԊdίlzήʈЪ௘ԥࠠࠠdҢࡁცࠅ੶ʷ
ӻ୕dίʮ̡הϞᄴࠦ ܔͭɓ ࡈһ੶ɽٙ
༸ᅃ˖ʷfҢࡁʊ຾ක֐வධʈЪdԨਗ਼
ᘱᚃрɢʔ኶dΝࣛ٢ܵ၍ଣᄴ̘ϋڋમ
ॶٙ˴ᕚ {˜̥፯λٙ ̥ਂ࿁ٙ™dவɰ
͉݊ɛʬࡈ˜ۃΣٰ؇ිజٙଣׂfҢ ࡁ
Ⴉމவ݊ɓධࠠࠅٙഄଫ׌ᘩ نᎴැd̀
඲ආɓӉ੶ʷf
࢝ૐ
ʕ਷֜˙ᅰኽᜑͪdɚཧɓɚϋ਷lzऊ൬
ۜཧਯᕘϋѩᄣڗଟ׳ᇠЇϵʱʘɤ̬ᓃ
ɧdɚཧɓɓϋމۆ ϵʱʘɤɖᓃɓiઋ
رԨ׵̘ϋɨ̒ϋආɓӉెʷf್Ͼdၾ
Ңࡁ࿩ɨਠఙุਕһࢹࢹ޴ᗫ٫ɗ੅Լۜ
ᐑືf࣬ኽɓ࢕਷ყഹΤٙᚥਪʮ̡׵ɚ
ཧɓɚϋɤɚ˜೯ڌٙజѓП ࠇd༈ᐑື
ٙᄣ ڗଟ͟ɚཧɓɓϋٙϵʱʘɧɤൻЇ
ɚཧɓɚϋٙϵʱʘɖfᜑϾ׸Ԉd዆᜗
׳ᇠᒈැ֠͊৕ᔷf
್Ͼd੽Շࡈ຾᏶ତ൥Ը޶d௰ᕸٙઋ ر
̙ঐʊ຾ཀ̘f࠯΋dЪމჯ΋ٙ຾᏶ܸ
ᅺdٰୃ̹ఙί̘ϋɽ௅ʱࣛගɓٜӐ
੕dཀ̘ᅰ˜ۆܵᚃɪʺfՉϣd ڐɓϋ
Ը˶ഛ̙௓ٙИσᄆࣸձϓʹඎd׵ɚཧ
ɓɚϋ௰ܝɓ֙㌷ʺf̴ ࡁ௴ிٙৌబࣖ
Ꮠd̙ঐϞпҩᔷཧਯุٙ׳ᇠቖઋfϤ
̮dҢ ࡁʔᏐҙাdʕ਷਷ઋᐛࢹຬᜊd
ɓ͇ઋၫᔷΣdՉ஺ܓ̙˿ɛɽชจ̮f
ᎇഹ׺׼ٙ㛬ඤᄿఙ׵ɤɓ˜ֵᑘБකʈ
਒ၨᄃόdҢࡁІɚཧཧʞϋ˸Ըᒅໄٙ
הϞɖషή෯ѩʊਗʈאໝϓfᐼϓ͉П
މߒࠇ ಥ࿆ɖϵᄂʩdՉʕʊҳ׳ٙږᕘ
މಥ࿆ɧϵᄂʩdቱᕘಥ࿆̬ϵᄂʩᏐ༈
ึ׵͊Ըߒɤϋlzਗ͜f ࠰ಥ˙ࠦd ࡊҢ
ࡁࢁତ˓ɪགྷಥ࿆ɚϵʞɤᄂʩତ࠽ٙʊ
ໝϓИσఊЗdΎࠇʿʊ̈ਯٙ ڢࣨː༟
ପd ੭הԸٙତ ږਗ਼̙Ꮠ˹޴຅௅ʱٙ༟
Yet we are deeply aware of our need to improve further. As
management transits from strategy-focused to operationally-intensive,
challenges abound. Working on the Mainland, especially for the lower
echelon of the Company, is fraught with pitfalls. We need to strengthen
our systems and build an even stronger culture of ethics at all levels
of the organization. That we have begun and will continue. We will
always strive to live up to the tagline adopted by management early
last year and which I communicated to shareholders six months ago,
namely “We Do It Right!”. We consider this as a strategically significant
competitive advantage which must be further enhanced.
PROSPECTS
Chinese government statistics show that annual growth in retail sales
of consumer goods has slowed to 14.3% in 2012. The year before, it
was 17.1%. The second half of last year saw further deterioration. A
better approximation to our mall business however is the luxury sector.
According to a December 2012 report by a reputable international
consulting firm, growth has decelerated from 30% a year ago to an
estimated 7% for 2012. The picture seems clear: reversal of the slow
down has yet to happen.
Nevertheless, there are two economic phenomena which cause one
to wonder if the worst might be behind us. First, the stock market,
a leading indicator for the economy, has been rising in the past few
months, after languishing for quite a long time. Secondly, residential
prices and transaction volume which went nowhere for almost a year
have exploded during the last quarter of 2012. The wealth effect
created therefrom may help reverse the slowing retail sales. Moreover,
one should be reminded that things can move very fast in China. Once
sentiment changes, the speed may surprise many.
With the late November ground breaking of Kunming Spring City
66, all seven projects with land acquired since 2005 are now under
construction or are already completed. Total cost is estimated to be
approximately HK$70 billion, of which HK$30 billion have already
been spent. The outstanding amount of HK$40 billion will likely be
expensed over the next decade or so. In Hong Kong, as we sell off the
remaining completed apartments valued today at over HK$25 billion,
and having already parted with certain non-core assets, cash inflow will
cover a good portion of the expected capital expenditures, leaving the
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