Wharf (holdings) Ltd. · HKEX:4
Wharf (holdings) — The Wharf (Holdings) — FY2024 Earnings Presentation
26 slides from Wharf (holdings)'s earnings presentation, Mar 13, 2025
Slide 1: The Wharf (Holdings) Limited 2024 Final Results
The Wharf (Holdings) Limited 2024 Final Results 13 Mar 2025 The Wharf (Holdings) Limited – 2024 Final Results 1
Slide 2: Over-capacity Dents Asset Values
Over-capacity Dents Asset Values HKD Million 2024 2023 %Chg. Group Revenue 12,115 18,950 -36% Operating Profit 5,644 6,896 -18% ▪ Revenue -36% & OP -18%, Led by MLDP Underlying Net Profit* 2,798 3,566 -22% ▪ UNP -22% on Further De-risking of DP Stock Attributable IP Revaluation (Deficit) After Taxat
Slide 3: Strong Balance Sheet
Strong Balance Sheet ▪ Lower Debt to Mitigate Borrowing Cost ▪ $33.9B Listed Investments Provide Liquidity – Total Equity $142.5B; Net Debt $7.1B – $1.9B Div. Income Booked to P&L in 2024 ▪ All Gross Debt Converted to RMB (35% Fixed Rate) ▪ Healthy Cashflow & Interest Cover at 9.6x – Reduced Avg. In
Slide 4: Property-focused
Property-focused Total Assets Breakdown Total: $190.0B (As at 31 Dec 24) ▪ Properties Accounted for Over 60% of Total Assets 31% HK Properties Majority Under Development ▪ Strategically Reallocated Capital to HK Properties 10% MLDP Both Developed & Undeveloped ▪ HK: Full Project Pipeline; All Remain
Slide 5: Hong Kong Properties
Hong Kong Properties Contracted Sales (2024) ▪ Invigorated Demand from HNW Buyers – New Capital Investment Entrant Scheme & Improved Sentiment Mount Nicholson (50%-owned) ▪ Att. DP Revenue $322M, OP $173M; 1 Apt Booked 1 Apt Total Price: $600M ▪ Att. HK Residential Landbank: 2.8M s.f. ($131,000 psf)
Slide 6: Mainland Development Properties
Mainland Development Properties Operating Matrix & Contracted Sales (2024) Revenue $3,210M (-65%) Operating Profit $930M (-9%) ▪ No Land Replenishment in Persistently Weak Market Contracted Sales RMB 1.4B (-44%) – Diminishing Resi Inventory & Lower Contracted Sales ASP RMB 14,600 psm (-10%) – $2B Im
Slide 7: Mainland Investment Properties
Mainland Investment Properties ▪ Slowdown in Retail Sales – Shoppers Prioritising Value Purchases Mainland IP Revenue (RMB Billion) – Spending Leakage to Overseas 1H 2H FY – Intensifying Market Competition 4.5 4.3 4.1 4.2 ▪ Office: Gross Supply & Demand Imbalance 3.5 3.7 ▪ MLIP Revenue -4%, OP -6% Y
Slide 8: Hotels
Hotels Wharf Hotels ▪ Outbound International Travel Progressively Recovered Since 2015 ▪ More Destination Choices; Room Rates Declined 5 Award-winning Hotels (3 Owned) in HK, Chengdu, Changsha, ▪ Both Business & Leisure Travellers Reduced Spending Chongqing & Suzhou ▪ Segment Revenue +1%; OP -90% Yo
Slide 9: Logistics Infrastructure
Logistics Infrastructure Modern Terminals (2024) Revenue Operating Profit $2,183M (-7%) $292M (-18%) Throughput* (million TEUs) 2024 YoY Chg ▪ HK Port: Greater Challenges Than Ever HK 3.5 -6% – Increasing Competition from Neighbouring Ports DaChan Bay (DCB)# 2.2 +15% – Restructuring of Supply Chains
Slide 10: Project Pipeline
Project Pipeline Completed / To be Launched Under Development ▪ 1 Plantation Road HK Prop ▪ Mansfield Road Sites HK Prop ▪ Kai Tak Site (30%-JV) ▪ Kowloon Bay Redevelopment ▪ Kowloon Tong Site Mainland DP ▪ CSIFS Tower 2 Prestigious High-rise Apt Logistics Infrastructure ▪ MTL New Logistics Centre a
Slide 11: Outlook
Outlook ▪ Looming Trade War Top of People’s Mind ▪ Geopolitical Tensions, U.S. Fed Rate Trajectory & New Tariff Policies Introducing Volatility to Global Economy ▪ Mainland Policy Effect to be Gradually Released; Rebuilding Consumer Confidence Remains a Challenge ▪ Unfavourable External Environment
Slide 12: Sustainability
Sustainability The Wharf (Holdings) Limited – 2024 Final Results Sustainability | 12
Slide 13: Recognised Sustainability Achievements
Recognised Sustainability Achievements Recognitions Certifications LEED Platinum ▪ Chengdu IFS ▪ Member of Hang Seng Corporate Sustainability ▪ Changsha IFS Index Series; “AA+” Sustainability Rating ▪ Shanghai Wheelock Square ▪ “A” at MSCI ESG Rating LEED Gold ▪ Wuxi IFS Gold Certified ▪ Niccolo Che
Slide 14: Environment: Building a Sustainable Future
Environment: Building a Sustainable Future 2024 Progress: 2030 Targets* On Track Sustainable Finance Renewable Energy GHG Emission (Scope 1 & 2) Intensity Chengdu IFS ↓25% Green or Sustainability-linked Loans 50-80% of Electricity from Hydroelectric Power Committed to Setting Near-term Targets Accor
Slide 15: Social: Business-in-Community
Social: Business-in-Community Project WeCan Wharf Group Rendered Full Support for Xue Long 2 Visit ▪ Empowering Students for Pursuing Future Studies or Careers ▪ Wharf is Honoured to be a Diamond Sponsor for Xue Long 2’s (China’s ▪ Benefit ~Nearly 100,000 Students of 82 Secondary Schools First Domes
Slide 16: Social: Community Care & Wellbeing
Social: Community Care & Wellbeing Donations Sponsorships Events Supported in 2024 ▪ The Wharf Group* Named 3rd Top Donor Environmental Arts & Health & 2023/24 by The Community Chest (“The Chest”) Social Welfare Education Protection Culture Sports Others 32% 6% 39% 7% 6% 10% *The Wharf Group incl. W
Slide 17: Corporate Governance
Corporate Governance Anti-Corruption Total No. of Hours of Anti-corruption Training in 2024 Nearly 3,000 Hours For Board Members, Directors & Employees Board Engagement & Diversity Sustainability Risks and Opportunities are Discussed Strive for Full Compliance on Board Diversity as a Listed Issuer a
Slide 18: Appendix
Appendix The Wharf (Holdings) Limited – 2024 Final Results Appendix | 18
Slide 19: Summary of HK Properties
Summary of HK Properties Portfolio Usage Status Locations Attributable GFA (s.f.) 1. Peak Portfolio Residential Development No. 2-8 Mansfield Road 259,300 No. 9,11 Mansfield Road (50%-JV) 72,500 Sales Mount Nicholson (50%-JV) 17,000 77/79 Peak Road 4,700 Lease Chelsea Court 43,000 Strawberry Hill 13
Slide 20: Mainland Contracted Sales Breakdown by City
Mainland Contracted Sales Breakdown by City Region City Contracted Sales (%) GFA Sold (%) Eastern China Suzhou 71.0% 63.5% Hangzhou 3.3% 1.5% Wuxi 0.4% 2.3% Eastern China Sub-Total 74.7% 67.3% Southern China Foshan 13.9% 23.8% Guangzhou 7.2% 2.9% Southern China Sub-Total 21.1% 26.7% Western China Ch
Slide 21: Mainland Key Projects on Sales in 2024
Mainland Key Projects on Sales in 2024 Attributable Attributable Average Proceeds GFA Sold Price Projects City (RMB M) (s.m) (RMB psm) Ownership Villa One (Huayuan Road Lot 78) 蘇州天灝逅灣雅苑 Suzhou 472 23,215 20,200 100% Poetic Palace 蘇州荷岸曉風 Suzhou 320 18,655 17,200 33% Rosy Mansion 佛山悅府 Foshan 120 12,64
Slide 22: Mainland DP Stock Breakdown by City
Mainland DP Stock Breakdown by City Region City GFA million (s.m) % Total Western China Chengdu 0.57 47% Chongqing 0.09 8% Western China Sub-Total 0.66 55% Eastern China Suzhou 0.15 12% Hangzhou 0.01 1% Eastern China Sub-Total 0.16 13% Central China Changsha 0.35 29% Northern China Beijing 0.04 3% T
Slide 23: Mainland Key Projects Completion
Mainland Key Projects Completion Projects Attributable GFA (s.m) Key Completion in 2024 Hangzhou Luxurious Mountain View 杭州雍景山 76,800 Projected Key Completion in 2025 Suzhou Villa One (Huayuan Road Lot 78) 蘇州天灝逅灣雅苑 22,400 The Wharf (Holdings) Limited – 2024 Final Results Appendix | 23
Slide 24: Mainland IP – Different Series
Mainland IP – Different Series Times Square IFS & Times Outlets Project Total GFA * Year of Project Total GFA * Year of Property Nature (s.m.) Completion Property Nature (s.m.) Completion Times Square Mixed-use IFS Complexes Chongqing ** O/R 55,000 2004 Chengdu R/O/S.A/ H 603,000 2013-2016 Chongqing
Slide 25: Overview of Application of Funds
Overview of Application of Funds Major Capital & Development Expenditure To be Incurred in Coming Years HK$M Incurred in 2024 Committed Uncommitted Total Hong Kong Properties 2,108 4,066 11,885 15,951 Mainland China IP 59 3 111 114 Mainland China DP 1,462 847 132 979 Others 187 1,618 14 1,632 Total
Slide 26: End of Presentation
End of Presentation The Wharf (Holdings) Limited [HKEx Stock Code: 0004.HK] Disclaimer All information and data are provided for information purposes only. All opinions included herein constitute our judgment as of the date hereof and are subject to change without notice. The Group, its subsidiaries