Wharf Real Estate Inv Co (WRFRF) Q4 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon, everyone. Welcome to WolfRig final results presentation. I am Angela Ng from IR team. You can download the presentation from the QR code displayed on the LED wall. Our management today, including Mr. Steven Ng, Chairman and Managing Director, and Mr. Horace Lee, Director, We will start with a PowerPoint presentation and then open the floor to the analysts for a Q&A section with the management. The theme for the presentation is Topline Challenges Remain Hard. Now let's take a look at the results highlights. Global economic and geopolitical uncertainties continue to pose challenges for the economy of Hong Kong and Mainland China. In such operating environment, group revenue decreased by 3% to 12.9 billion. Revenue from Hong Kong IP representing 81% of total declined slightly by 1% to 10.5 billion. in response to unfavorable interest rates. Our financial priority in the past few years has been the management of debt and borrowing costs. During the year, net debt decreased further by 2.1 billion to 34.2 billion. Gering ratio further improved to 17.8%. net borrowing cost has peaked, decreasing by 10% year on year. While Hong Kong's economy shows moderate growth, demand for commercial properties remain weak, leading to a 3% decline in the total value of our investment properties. In 2024, the strong local currency and gradual pace of interest rate cuts continue to dampen both business and consumer confidence. Notably, Hong Kong dollar against the RMB and Japanese yen hit decade high, together with the continued strength against other currency has weakened Hong Kong's competitiveness for both tourists and locals. As you can see from the chart, overall recovery of Hong Kong visitor arrivals remain incomplete and uneven comparing to the pre-COVID. Hong Kong re...