Financial Highlights

Five-Year Financial Summary

For the year ended 31 December
2018
HK$
million
(Note)
2017
HK$
million
2016
HK$
million
2015
HK$
million
2014
HK$
million
RESULTS
Turnover 3,890 3,548 3,535 3,430 3,224
Property expenses (523) (449) (428) (414) (404)
Gross profit 3,367 3,099 3,107 3,016 2,820
Other income - 261 - - -
Investment income 78 69 50 54 68
Other gains and losses (16) - - - (2)
Administrative expenses (227) (247) (219) (234) (214)
Finance costs (222) (158) (178) (204) (228)
Change in fair value of investment properties 3,532 853 (1,187) 695 2,940
Share of results of associates 288 220 237 246 252
Profit before taxation 6,800 4,097 1,810 3,573 5,636
Taxation (481) (484) (463) (438) (386)
Profit for the year 6,319 3,613 1,347 3,135 5,250
Non-controlling interests (286) 23 (129) (232) (348)
Profit attributable to owners of the Company 6,033 3,636 1,218 2,903 4,902
Underlying profit for the year 2,536 2,491 2,369 2,283 2,163
Recurring underlying profit for the year 2,536 2,349 2,369 2,283 2,163
Dividends
Dividends paid 1,444 1,411 1,394 1,330 1,255
Dividends proposed 1,224 1,161 1,139 1,122 1,064
Dividends per share (HK cents) 144.00 137.00 135.00 132.00 123.00
Earnings per share (HK$), based on:
Profit for the year
- basic 5.77 3.48 1.16 2.73 4.61
- diluted 5.76 3.48 1.16 2.73 4.61
Underlying profit for the year – basic 2.42 2.38 2.26 2.15 2.03
Recurring underlying profit for the year – basic 2.42 2.25 2.26 2.15 2.03
PERFORMANCE INDICATORS
Net debt to equity 4.7% 5.0% 5.4% 3.0% 4.2%
Net interest coverage (times) 18.1x 17.1x 23.5x 19.5x 17.1x
Net asset value per share (HK$) 71.12 66.89 64.56 64.48 63.02
Net debt per share (HK$) 3.35 3.37 3.50 1.94 2.64
Year end share price (HK$) 37.25 41.45 32.05 31.75 34.65
At 31 December
2018
HK$
million
(Note)
2017
HK$
million
2016
HK$
million
2015
HK$
million
2014
HK$
million
ASSETS AND LIABILITIES
Investment properties 77,442 72,470 69,633 69,810 68,735
Investment in associates 3,708 3,779 3,497 3,683 4,154
Loans to associates 11 10 - - -
Investment in a joint venture 145 147 145 - -
Loans to a joint venture 1,062 982 1,891 - -
Fund investment 294 21 - - -
Time deposits, cash and cash equivalents 2,817 2,662 2,630 2,804 3,640
Other assets 1,564 2,049 2,225 2,491 2,494
Total assets 87,043 82,120 80,021 78,788 79,023
Borrowings (6,322) (6,185) (6,293) (4,859) (6,447)
Taxation (962) (945) (863) (803) (732)
Other liabilities (2,122) (1,989) (2,180) (1,758) (1,715)
Total liabilities (9,406) (9,119) (9,336) (7,420) (8,894)
Net assets 77,637 73,001 70,685 71,368 70,129
Non-controlling interests (3,206) (3,048) (3,195) (3,196) (3,089)
Shareholders’ funds 74,431 69,953 67,490 68,172 67,040
Definitions :
  1. Underlying profit for the year: profit adjusted for group’s share of unrealised fair value changes on investment properties
  2. Recurring underlying profit for the year: underlying profit adjusted for items that are non-recurring in nature
  3. Net debt to equity: borrowings less time deposits, cash and cash equivalents divided by shareholders’ funds
  4. Net interest coverage: gross profit less administrative expenses before depreciation divided by net interest expenses
  5. Net asset value per share: shareholders’ funds divided by number of issued shares at year end
  6. Net debt per share: borrowings less time deposits, cash and cash equivalents divided by number of issued shares at year end

Note:

In the current year, the Group has applied the remaining sections of HKFRS 9. Accordingly, certain comparative information for the years ended 31 December 2014, 2015, 2016 and 2017 may not be comparable to the year ended 31 December 2018 as such comparative information was prepared under HKAS 39.