2024-05-03 28Hse Editor
Hong Kong citizens have always been under pressure to live in expensive and small homes. Li Zeju, chairman of Cheung Kong Group (1113), said yesterday when hosting the online press conference of Changhe (0001) and Cheung Kong’s results, Hong Kong actually has a lot of land, as long as the business community Working with the government, it should be possible to increase the supply of land. Hong Kong is one of the cities with the smallest per capita living area in the world. It is believed that through diversified policies and measures, the government will increase the supply of land and housing in the short and medium term, so that citizens can live better. He also pointed out that Hong Kong's user demand continues to be stable, and the local property market will continue to develop steadily. ◆reporter Liang Yueqin
CKH Holdings and Cheung Kong announced yesterday that they both increased their final dividends for their 2021 annual results. For the year ended 2021, based on the IFRS 16 benchmark, CKH Holdings recorded a profit of RMB 33.484 billion, an increase of 15% year-on-year, and earnings per share of RMB 8.7. The dividend of 1.86 yuan, an increase of 9% year-on-year; and the profit attributable to shareholders of the Cheung Kong Group in 2021 was 21.241 billion yuan, an increase of 30.5% year-on-year, the profit per share was 5.77 yuan, an increase of 30.5%, and the final dividend increased by 22.6% to 1.79 yuan per share.
The market is concerned about the recent news that the UK Power Network, a British power asset of the Changhe Department, has received an invitation to purchase. Li Zeju said yesterday, "The United States (consortium) has an offer (invitation), and it does not have to be sold. It is received every day." He It is reiterated that the group's investment knows no borders. For example, Ericsson will not only stay in Sweden, and Toyota is not only in Japan, but the container of the mainland COSCO Group can be seen all over the world.
Criticism of divestment is "old-fashioned"
Changhe also pointed out that after the gradual completion of the sale of the launch tower, the group will use part of the proceeds from the sale of the launch tower in 2021 to repurchase shares in the market.
When asked about the focus of Changshi Group’s investment locations, he emphasized that the Cheung Kong Group is a multinational company, “wherever there is a good return, investment will be made.” factors, but also the most important to shareholders.
Li Zeju also criticized the "old-fashioned" statement of divestment. The company's core business is real estate. "How can it be called divestment if you have to sell buildings every day? Does a clothing company only manufacture but not sell?" He described that mainland China and Hong Kong are hometowns and will have feelings points, but both asset quality and returns are considered.
Cheung Kong and Cheung Kong have recently announced the sale of the 5 Broadgate commercial building in London and approved the sale of the British Telecom Tower asset. Li Zeju said that there are both buying and selling in business. King also added branches last year.
"The most hated in the land is to win"
Cheung Kong spent 11.4 billion yuan to buy 3 plots of land in Hong Kong last year. Li Zeju pointed out that the group is looking for high-quality land reserves around the world. Earlier this month, it won the bid for the URA’s To Kwa Wan redevelopment project. No place will have the mentality of "willing to win", onlyMeasure asset quality and returns. As the group has ample cash and a debt ratio of only 7.9%, funds will be recovered after the sale of the 5 Broadgate commercial building in London, which will help the group to invest in new projects.
Changshi's confirmed sales for this year and beyond are expected to be 29.54 billion yuan, accounting for 25.17 billion yuan this year. As of the end of last year, the Group has developed a land bank of about 75 million square feet, of which 4 million square feet are located in Hong Kong.
Never thought to sell Greene King
The epidemic has an impact on the hotel industry. Li Zeju pointed out that 2020 is the most severe year for the hotel industry, but the cash flow was still positive. Last year, the hotel business revenue increased by 53%, because the group converted a large number of rooms into long-term rentals. There are more tourists coming to Hong Kong.
The British pub business, Greene King, recorded less loss for the year than in 2020 due to its better operating performance in the second half of last year than in the first half. Even though the goodwill impairment of RMB 2.05 billion was confirmed according to the year-end assessment, it is expected that the British pub business will recover steadily after all epidemic prevention restrictions are lifted. He emphasized that he had never thought about selling Greene King, because the related assets are stable and conservative rent-collecting assets, and the goodwill impairment for them during the epidemic is just in line with traditional practices.
Li Zeju said that the Hong Kong SAR government launched the consumer voucher program to help stimulate the retail atmosphere, but the rapid spread of the new virus in the local area has added variables and challenges to the Hong Kong economy. With the support of national policies, Hong Kong's position as an international financial and innovation center remains unchanged, and the long-term prospects are expected to be optimistic. Hong Kong and the Mainland are the key markets for the Group's real estate business. We will continue to look for suitable property development opportunities, and we are full of confidence in the prospects of the two places.
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