(Hong Kong, January 30, 2019) Hang Lung Properties Limited (HKSE Stock Code: 00101) and Hang Lung Group Limited (HKSE Stock Code: 00010) today announced their financial results for the year ended December 31, 2018.
2018 Annual Performance at a Glance:
Our core property leasing business across Hong Kong and the Mainland continued to be resilient in face of uncertain market conditions. Leasing revenues of Hang Lung Properties and Hang Lung Group were both up 5%.
Mr. Ronnie C. Chan, Chairman of Hang Lung Group and Hang Lung Properties, said, “We have achieved an encouraging rental performance in 2018. Our leasing properties have held their positive course in the year even though some areas in the properties were closed for asset enhancement. These upgrades will add value to our assets and provide further impetus for revenue growth. In 2018, management has achieved not only top-line growth but also strengthened our bottom-line performance. Revenue growth of our mainland properties accelerated during the second half when compared with the first half of 2018 and a year ago. We remained cautiously optimistic about the leasing market as the luxury market bounced back from economic uncertainty on the Mainland. Against this backdrop, our portfolio can grow further as we enhance our customer-centric strategies. These will further boost our competitiveness and profitability in the long run.”
“Furthermore, our successful acquisition of a prime plot of land in Hangzhou has increased our ability to capitalize on the opportunities that arise across the country. The new projects will contribute to the growth momentum of the Company and bring in further revenue,” added Mr. Chan.
Revenue of our Mainland leasing portfolio for Hang Lung Properties and Hang Lung Group both climbed 4% to RMB3,577 million and RMB3,950 million, respectively. For our Hong Kong leasing portfolio, revenue of Hang Lung Properties and Hang Lung Group both achieved mild growth of 3% to HK$3,937 million and HK$4,098 million year-on-year, respectively.
As the residential market of Hong Kong remained active with rising prices in the first half of 2018, Hang Lung closely monitored the situation and captured several favorable windows of opportunity to sell down our remaining inventory, including three semi-detached houses at 23-39 Blue Pool Road and nine units at The Long Beach. We will continue to track the Hong Kong property market thoroughly when opportunities arise, we may continue to sell more of the residential units on hand and further build our land bank.
We continued to adopt prudent and comprehensive financial management strategies to maintain a strong financial position with a high degree of flexibility to meet Hang Lung’s capital commitments and long-term expansion.
The Boards of Directors of Hang Lung Properties and Hang Lung Group have proposed final dividends of HK58 cents per share and HK61 cents per share, respectively, to be paid on May 21, 2019, to shareholders registered as at May 7, 2019.
