Henderson Land Development Co. Ltd. · HKEX:12
Henderson Land Development — FY2024 Earnings Presentation
52 slides from Henderson Land Development's earnings presentation, Mar 20, 2025
Slide 1: FY2024 Annual Results Presentation
(Stock Code: 12) FY2024 Annual Results Presentation March 2025 The Henderson Central, Hong Kong 8 Castle Road, Mid-Levels, HK Ballroom - Cloud 39, The Henderson, Central, HK Eight Southpark, Ma Tau Kok, HK Belgravia Place, Cheung Sha Wan, HK Artist’s Impression Artist’s Impression
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Henderson Land Development Company Limited (the “Company” or “HLD”) solely for information purposes and does not constitute an offer, recommendation or invitation to subscribe for or purchase any securities and nothing contained herein shall form the
Slide 3: Contents
Contents Pages FY2024 Annual Results Highlights 4–6 Sales of Property Interests 7 Property Development 8 – 16 Property Investment 17 – 21 Hong Kong and China Gas 22 – 23 Strong Financial Position 24 Prospects 25 Annexes 26 – 51 -3-
Slide 4: FY2024 Annual Results Highlights
FY2024 Annual Results Highlights FY2024 FY2023 Audited HK$ mn HK$ mn Change Profit attributable to Shareholders Underlying profit (excluding fair value change on investment properties) 9,774 9,706 +1% Reported profit 6,296* 9,261* -32% Major Segmental Performance: Property Development (attributable
Slide 5: FY2024 Annual Results Highlights (cont’d)
FY2024 Annual Results Highlights (cont’d) Audited Audited Change 31 Dec 2024 31 Dec 2023 HK$ mn Shareholders’ equity 322,147 326,542 -1% Cash and bank balances 17,919 21,623 -17% Net debt* 67,989 73,869 -8% -1.5 Net debt* to Shareholders’ equity (%) 21.1% 22.6% percentage point Net asset value per s
Slide 6: FY2024 Annual Results Highlights (cont’d)
FY2024 Annual Results Highlights (cont’d) Property Development & Property Leasing HKCG^ Sales of Property Interestsψ Property Development Revenue*: Gross Rental Income*: Dividend attributable to HLD: HK$ 20,548 mn -15% y-o-y HK$ 8,942 mn +1% y-o-y HK$ 2,712 mn Flat y-o-y Pre-tax Profit* Pre-tax Net
Slide 7: “Sales of Property Interests” Transaction Highlights
“Sales of Property InterestsΔ” Transaction Highlights Hong Kong Mainland China Golden Centre, Sheung Wan (Transaction Completed in Dec’16) Beijing Henderson Centre (Transaction Completed in Feb’17) ◼ Consideration (as adjusted): HK$4,348 mn ◼ Consideration: HK$3,261 mn ◼ Realized Gain: HK$3,832 mn a
Slide 8: Property Development
Property Development ◼ Sales results are shown below and 5 residential projects were completed in FY2024 with total attributable GFA of approx. 1.22mn sq.ft. (FY2023: 0.74mn sq.ft.) No. of No. of Project units pre-sold & sold No. of Unsold Residential Developments offered for Initial HLD’s Anticipat
Slide 9: Property Development (cont’d)
Property Development (cont’d) ◼ Sales pipeline of new projects in Hong Kong for 2025 are shown as follows No. of Attri. GFA HLD’s (sq. ft.) Completion Project Name and Location Usage* Project interest Timing Units C R 1 Belgravia Place (Ph. 2), Cheung Sha Wan (Presale Launched in Feb’25) C/R 248 100
Slide 10: Property Developments with Sales commencing in 2025
Property Development (cont’d) ◼ Property Developments with Sales and for Sale/Pre-Sale commencing in 2025 Parkwood 11 3 Mei Sun Lane, Tai Po Existing lines Lo Wu Residential, N.T. Border with Mainland China Lok Ma MTR Chau Airport Express Sheung East Rail Line Shui Tuen Ma Line Fanling Light Rail Ha
Slide 11: Property Development (cont’d)
Property Development (cont’d) ◼ Area of unsold units of major development projects offered for sale, as well as projects pending sale or pending/under development: Attributable Gross Floor Area (GFA)/ Saleable Area (mn sq. ft.) Investment Inventories + Projects Pending/ Total (Note *) Property 2025
Slide 12: Diversified Land-sourcing Strategy
Property Development (cont’d) ◼ Diversified Land-sourcing Strategy with Sustainable Saleable Resources Going Forward To Kwa Wan URA Project ii Market-acquired Urban Sites The Symphonie URA Project 0.36mn sq.ft. of attri. GFA Remaining portions shown 0.03mn sq.ft. of attri. GFA (Completed) Cheung Sha
Slide 13: Good Development Progress in Urban Site Assembly Developments
Property Development (cont’d) ◼ Good Development Progress in Urban Site Assembly Developments The Quinn‧ Aquila‧Square Mile Cetus‧Square Mile Eltanin‧Square Mile Gateway‧ Baker Circle One Baker Circle One The Haddon 2-16 Square Mile Completed in 2021 Completed in 2019 Completed in 2017 Square Mile (
Slide 14: New Territories Land Plot Holdings in Northern Metropolis
Property Development (cont’d) iii Group’s New Territories Land Plot Holdings, Majority Situated In “Northern Metropolis”, Representing Valuable Land Resources ◼ At 31 Dec 2024, land plot holdings in New Territories amounted to approx. 42.0 mn sq. ft. (end of 2023: approx. 45.8 mn sq. ft.) in land p
Slide 15: New Territories Land: Landbank Replenishment and Government Resumptions
Property Development (cont’d) iii Group’s New Territories Land Plot Holdings, including in “Northern Metropolis”, Provides Source For (i) Landbank Replenishment & (ii) Cashflows From Government Land Resumptions HLD owns largest stock Of “Agricultural Land” in Hong Kong which will generate substantia
Slide 16: Property Development in Mainland China
Property Development (cont’d) Property Development in Mainland China ◼ Properties Sales & Pre-sales contracted for in Mainland China HK$ mn <COVID-19 9,949 outbreak> In HK$ terms, -49% y-o-y 6,917 6,616 (In RMB terms, -48% y-o-y) 6,390 3,983 Represents sales and pre-sales contracted for in the first
Slide 17: Property Investment
Property Investment Rental Income from Hong Kong & Mainland China Investment Properties ◼ Expected Additions to Investment Property Portfolio: As at 2025 2026 2032 31 Dec 2024 (Estimated) (Estimated) (Estimated) Hong Kong 10.4mn sq.ft. • Site 3 of New Central • Site 3 of New Central Harbourfront Pha
Slide 18: Rental Income from Investment Properties in Hong Kong
Property Investment (cont’d) Rental Income from Investment Properties in Hong Kong • Average leasing rate for the Group’s major rental properties in Hong Kong as at 31 December 2024: 93% (end of 2023: 92%) • At 31 December 2024, the Group had an attributable no. of about 8,800 car parking spaces pro
Slide 19: Recently Completed Investment Properties in Hong Kong
Property Investment (cont’d) Recently Completed Investment Properties in Hong Kong The Henderson 2 Murray Road, Hong Kong (100% Owned) Site Area Approx. 31,000 sq.ft. Total GFA 465,000 sq.ft. (Plot Ratio @ 15x) GFA • 36-storey building with typical floors between breakdown 6/F to 38/F, for a total o
Slide 20: Rental Income from Investment Properties in Mainland China
Property Investment (cont’d) Rental Income from Investment Properties in Mainland China • Performance of key and recently completed investment properties on the Mainland Gross y-o-y Change Recent Rent Rate Occupancy / GFA^ Property Rental Income as at 31 Dec 2024 RMB HKD# (psm) For FY2024 World Fina
Slide 21: Growing Portfolio Reaching Rental Stabilization
Property Investment (cont’d) Total attri. GFA of completed investment properties in HK and Growing Portfolio Reaching Rental Stabilization mainland China (mn sq.ft.) Will Enhance Group’s Recurrent Income Base 31 Dec 2020 17.4 31 Dec 2021 17.8 31 Dec 2022 22.2 31 Dec 2023 22.9 31 Dec 2024 23.4 31 Dec
Slide 22: Hong Kong & China Gas (“HKCG”) 41.53% owned
Hong Kong & China Gas (“HKCG”) 41.53% owned ◼ HKCG’s core operating profit increased by 5% to HK$ 5,955 mn, with audited profit after taxation attributable to shareholders for FY2024 amounted to HK$ 5,712 mn ◼ Dividend declared for FY2024 attributable to HLD: HK$ 2,712 mn, Flat y-o-y ◼ Total volume
Slide 23: Hong Kong & China Gas (“HKCG”) (cont’d)
Hong Kong & China Gas (“HKCG”) (cont’d) 41.53% owned Dividends Declared by HKCG# HKCG Dividends Declared attri. to HLD# HK$ mn HK$ mn 6,220 6,531 6,531 6,531 6,531 2,460 2,583 2,712 2,712 2,712 2,712 5,924 2,236 5,385 4,896 1,848 2,033 4,451 1,680 4,047 1,527 3,680 2014 2015 2016 2017 2018 2019 2020
Slide 24: Strong Financial Position
Strong Financial Position ◼ Financial Gearing Ratio^ recorded at 21.1% as at 31 Dec 2024 (end of 2023: 22.6% ) with abundant banking facilities and fundingΨ in place ^ refers to the ratio of net debt (excl. the amount due to a fellow subsidiary which amounted to HK$66,215mn as of 31 Dec 2024 (2023:
Slide 25: Prospects
Prospects ◼ With the Group’s ample financial resources and astute management of the following three core businesses by its experienced professional team, HLD is well-placed to pursue sustainable growth, thereby providing accretive value for its stakeholders. Property Sales Following the launch of
Slide 26: Annexes
Annexes Pages Annex 1: Group Structure, Operating Margin and Other Highlights 27 – 31 Annex 2: Operations in Hong Kong 2.1: Property Development in Hong Kong 32 – 35 2.1.1 : Inventories from major launched projects for sale 2.1.2 : Newly-acquired Urban Redevelopment Projects with ownership fully con
Slide 27: Annex 1.1: Group Structure
Annex 1.1: Group Structure ◼ Dr. Lee Shau-kee and/ or his family trust owned an equity interest of about 72.82% in Henderson Land as of 31 December 2024 (31 December 2023: 72.82%) Dr. Lee Shau-kee and/or his family trust 72.82% Henderson Land Development Company Limited (“HLD”) (HK stock code: 12) 2
Slide 28: Annex 1.2: Operating Margin
Annex 1.2: Operating Margin Hong Kong Hong Kong Property Development Operating Margin* Property Leasing Operating Margin* 74% 73% 44% 71% 72% 39% 70% 22% 25%^ 15% 11%+ 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Mainland China Mainland China Property Development Operating Margin* Property Leas
Slide 29: Annex 1.3: Strategic Partnership Agreement Signed
Annex 1.3: Strategic Partnership Agreement Signed Henderson Land Signs a Strategic Partnership Agreement with CR Land to Seize Opportunities in the Northern Metropolis and Promote Integration of the Greater Bay Area Press Release (20th October 2022) Henderson Land Development Company Limited ("Hende
Slide 30: Annex 1.4: Land Sharing Pilot Scheme Proposal Highlights
Annex 1.4: Land Sharing Pilot Scheme Proposal Highlights Land Plots of the Group in New Territories proposed to become “Mixed Community” with Public & Private Housing ◼ Land Sharing Pilot Scheme (“LSPS”) proposal was submitted to the Government on 5th August 2021 ◼ In November 2022, the project was
Slide 31: Annex 1.5: Hong Kong Urban Land Bank Acquisition Highlights
Annex 1.5 Hong Kong Urban Land Bank from Public Tender / Market Acquisition Highlights Urban Residential Site Acquisitions in recent years Acquired Interest (%) Est. attri. GFA Bailey Street/Wing Kwong Street Project, To Kwa Wan Kowloon (URA) 2021 50% 358,732 sq.ft. The Symphonie, 280 Tung Chau Stre
Slide 32: Annex 2.1.1: Inventories from major launched projects for sale
Annex 2.1.1: Inventories from major launched projects for sale HLD No. of unsold units as Saleable area attri. Usage* interest at 31 Dec 2024 to HLD (sq. ft.) 1 The Henley (Phases 1-3), 7 Muk Tai Street, Kai Tak C/R 100% 566 293,754 2 Henley Park, 8 Muk Tai Street, Kai Tak R 100% 300 165,230 3 The H
Slide 33: Annex 2.1.2: Newly-acquired Urban Redevelopment Projects
Annex 2.1.2: Newly-acquired Urban Redevelopment Projects with ownership fully consolidated or reaching the applicable threshold for compulsory sale With less than 100% ownership interest With 100% ownership interest but the relevant compulsory sale acquired application threshold has been met* Expect
Slide 34: Annex 2.1.3: Summary of All Development Land Resources in Hong Kong
Annex 2.1.3: Summary of All Development Land Resources in Hong Kong (as of 31 Dec 2024) Attri. GFA/ saleable Summary of all the different categories of area (Note 1) Remarks Development Land Resources in Hong Kong (mn sq. ft.) (A) Area available for sale: 1 Unsold units from major launched projects
Slide 35: Annex 2.1.3: Development Land Resources (cont’d)
Annex 2.1.3: Summary of All Development Land Resources in Hong Kong (as of 31 Dec 2024) (cont’d) Attri. GFA/ saleable Summary of all the different categories of area (Note1) Remarks Development Land Resources in Hong Kong (Cont’d) (mn sq. ft.) (C) Major development projects in New Territories: • Fan
Slide 36: Annex 3.1: Development Landbank in Mainland China
Annex 3.1: Development Landbank in Mainland China Land bank under/held for development as of 31 December 2024 A “Two-pronged” strategy No. of Attributable GFA* Projects (mn sq. ft.) 1. Beijing 1 0.05 2. Shanghai 1 0.42 Prime cities: 3. Guangzhou 2 0.92 1.60 mn sq. ft. 4. Shenzhen 1 0.21 5. Changsha,
Slide 37: Annex 3.2: Residential Project Sales in Mainland China
Annex 3.2: Residential Project Sales in Mainland China ◼ Residential projects with debut launch or new phase launched for sale/ pre-sale and other projects with significant sales / pre-sales in FY2024 City Project name and location Interest (%) Chengdu Phase 1 & 2, Xindu Development (江與山府) 50% Cheng
Slide 38: Annex 3.3.1: Completion Schedule in Mainland China
Annex 3.3.1: Completion Schedule in Mainland China ◼ As of 31 December 2024, the Group had holding of about 2.56 mn sq. ft. in attributable GFA of completed inventories in Mainland China. ◼ Projects completed in FY2024: City Project name and location Project type GFA (sq. ft.)# GFA attributable to H
Slide 39: Annex 3.3.2: Completion Schedule in Mainland China (Cont’d)
Annex 3.3.2: Completion Schedule in Mainland China (Cont’d) ◼ Completion schedule for FY2025 Estimated GFA Estimated GFA City Project name and location Project type (sq. ft.)# attributable to HLD (sq. ft.)# Beijing Lakeside Mansion (祥雲賦), Shunyi District Commercial 224,000 55,000 Changsha Phase 1, 3
Slide 40: Annex 3.4: Rental Portfolio in Mainland China
Annex 3.4: Rental Portfolio in Mainland China Major completed investment properties in Mainland China as of 31 December 2024 Project Name World Grand Skycity Centro Greentech Henderson Henderson Lumina Hengbao Lumina Financial Gateway Tower Metropolitan 688 Shanghai Plaza Guangzhou Centre Office (Ph
Slide 41: Annex 4: Sustainability Strategy
Annex 4: ESG Highlights Henderson land’s Sustainability Strategy • Henderson Land is committed to embedding sustainability as an integral part of our business. The Group strongly believes that the consideration of ESG factors in our decision-making process helps to enhance the sustainability of our
Slide 42: Annex 4: ESG Highlights - New Project Achievement
Annex 4: New Project Achievement The Henderson: ESG Highlights (cont’d) • BEAM Plus Provisional Platinum covers the year ended 31 December 2023 • LEED Platinum Pre-certification (Core & Shell), achieved in 2019 Our cumulative achievements of local, regional and international green building • WELL Pl
Slide 43: Annex 4: ESG Highlights (cont’d)
Annex 4: ESG Highlights (cont’d) • Sustainability Working Group comprises dedicated team members who serve as sustainability champions and ambassadors to lead the planning, execution and evaluation of the sustainability initiatives. - 43 -
Slide 44: Annex 4: Environmental, Social, Governance Policies
Annex 4: ESG Highlights (cont’d) • To view these policies, please refer to our website: https://www.hld.com/en/corporate-governance/group- policies Environmental Social Governance • Biodiversity Policy • Anti-Corruption and Bribery Policy • Anti-Money Laundering and Counter- • Climate Change Policy
Slide 45: Annex 4: Climate risk assessment and scenario analysis
Annex 4: ESG Highlights (cont’d) Climate risk assessment and scenario analysis In our scenario analysis, the Group focused on six material physical and transition risks and opportunities, and referenced scenarios with climate and transition pathway projections published by reputable external researc
Slide 46: Annex 4: Climate risk assessment and scenario analysis
Annex 4: ESG Highlights (cont’d) Climate risk assessment and scenario analysis Recognising that climate-related risks play a role in our business success and continuity, the Group tested the resilience of our business operations under distinct and plausible climate change scenarios against key clima
Slide 47: Annex 4: Sustainability Advocacy
Annex 4: ESG Highlights (cont’d) Sustainability Advocacy Biodiversity and New Energies Mitsubishi UFJ Financial Symposium 2024 Group (“MUFG”) - From Ambition to Action – Net Zero in Corporate Roadmaps UNIVERSITY RIBA Net Zero Forum 2024 Belt and Road - Green and Smart City SHARING • The Henderson ES
Slide 48: Annex 4: 2024 Achievement & Award
Annex 4: ESG Highlights (cont’d) 2024 Achievement & Award MI x HSU ESG Award 2024 Sing Tao x The Hing Kong Polytechnic University Hong Kong Commercial Daily • Performance-based ESG Grand award Outstanding ESG Enterprises Recognition Scheme The Outstanding Award of ESG 2024 • ESG Commendation Awards
Slide 49: Annex 4: ESG Awards
Annex 4: ESG Highlights (cont’d) AM730 Outstanding ESG Green Development and Ming Pao ESG Award 2024 Hong Kong Economic Journal Carbon Neutrality Award • Excellent ESG Enterprise Award – Listed Company (Real Estate) HKEJ ESG Achievement Programme 2024 • ListCo Excellence Awards 2024 • Excellence in
Slide 50: Annex 4: ESG Awards
Annex 4: ESG Highlights (cont’d) CHKLC The Hong Kong Corporate Governance and ESG BCI Asia Award 2024 Global Most Innovative Knowledge Enterprise Hong Kong ESG Reporting Awards (“HERA”) 2024 Excellence Awards • Top 10 Developer (MIKE) Award 2024 •ESG Excellence Award - Category 1 Hong Kong Most Inno
Slide 51: Annex 4: Recognitions from sustainability indices and ratings 2024
Annex 4: ESG Highlights (cont’d) Recognitions from sustainability indices and ratings 2024 5-star Low Risk AA+ Previous rating: Previous rating: Previous rating: ‘5-star & 5-star’ (2024) ‘Low Risk’ (2024) ‘AA+’ (2024) ‘5-star & 5-star’ (2023) ‘Low Risk’ (2023) ‘AA+’ (2023) (Top 10) Pace-setter BBB 7
Slide 52: Hong Kong Head Office
Hong Kong Head Office Address: 72-76/F, Two International Finance Centre 8 Finance Street, Central Hong Kong Telephone: (852) 2908 8888 Fax: (852) 2908 8838 Website: www.hld.com Investor Contact: Mr. Patrick Kwok Mr. Kelvin Chi Executive Director Assistant General Manager Direct line: (852) 2908 837
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