To integrate our business strategy into China’s national development plan by leveraging our deep roots in Hong Kong and Macau, we have long been developing integrated properties with large corporates in strategic cities in China, while ramping up business growth in the Guangdong-Hong Kong-Macao Greater Bay Area.
Dear Shareholders,
For three years now, COVID-19 pandemic has put the world in a predicament. The outbreaks of Omicron in 2022 triggered not only stringent anti-pandemic measures in Hong Kong and Macau, but also lockdowns in Mainland China, inevitably dragging down our business performance in the affected areas. However, we are pleased to see that the travel restrictions and quarantine policies in China are being relaxed in phases as the new year ushers in. Leveraging the synergy of the Group’s well-established businesses in integrated property developments, hospitality and cross-border transportation, we are poised to seize new opportunities amid an anticipated recovery in the tourism sector.
2022 was a year of challenges for many businesses, but we pulled it through with solidarity, perseverance and resilience to sustain our business growth. Overall, loss attributable to the Group’s shareholders for the year ended 31 December 2022 amounted to HK$558 million (2021: profit of HK$962 million). Basic loss per share was HK18.5 cents (2021: basic earnings per share HK31.9 cents). As the Group prudently prepares for new business endeavors, the Board does not recommend the payment of any final dividend (2021: Nil) in respect of the year ended 31 December 2022. No interim dividend was declared by the Board during the year.
To integrate our business strategy into China’s national development plan by leveraging our deep roots in Hong Kong and Macau, we have long been developing integrated properties with large corporates in strategic cities in China, while ramping up business growth in the Guangdong-Hong Kong-Macao Greater Bay Area. Despite the immense challenges under the pandemic, our property division recorded profit contributions from Nova Grand in Macau and our deluxe Singapore properties, including Park Nova and Les Maisons Nassim. In Mainland China, Shanghai Suhe Bay Area Mixed-use Development Project, our joint venture with China Resources Land Limited (“CR Land”), also recorded the sale of a commercial tower at RMB2.6 billion, while the project’s retail portion MixC World achieved 90% occupancy. In October 2022, we elevated our collaboration with CR Land by co-signing a strategic partnership agreement for potential real estate projects.
With the Group’s strong presence in Macau, we have also set our foot in the adjacent Hengqin area, which has been designated as a priority development area for driving greater cooperation between Guangdong and Macau. The Hengqin Integrated Development, our wholly-owned property, has sold and handed over 420 residential units to homebuyers as of 31 December 2022.
Looking ahead, there is much progress to be made by our property division. In Shanghai, NEW BUND 31 — our joint venture with Shanghai Lujiazui (Group) Company Limited — will be launched, while the Tongzhou Integrated Development in Beijing is expected to begin presales of its apartments in 2023. Meanwhile, the gradual lifting of anti-pandemic measures and China’s latest move to soften some real estate policies are expected to bring positive sentiments in the country’s property market. As much as we are confident in our projects, we are also cautious of various deterring factors, including Singapore’s cooling measures to its property market and the rising interest rates.
In 2022, the Group’s hospitality and transportation divisions stumbled under strict travel restrictions in China and prolonged suspension of sea borders between Hong Kong and Macau. Though some hotels in our portfolio managed to gain revenue as a medical observation or quarantine facility, many suffered from event and room booking cancellations as the tourism industry came to a virtual standstill during lockdowns in China. On the other hand, the transportation division spent great efforts in cutting operation costs, while it started a new business stream in vessel repair and maintenance, as well as successfully securing new service licenses to diversify its business in the long run.
In the year ahead, we are hopeful that these two divisions will revive from the pandemic as cross-border and international travel in China is expected to resume to normal conditions. Our Artyzen Hospitality Group is well positioned to embrace this recovery, as it plans to launch eight new hotels across Mainland China in 2023.
Through Shun Tak — China Travel Shipping Investments Limited, the transportation division will also reinforce its cross-border, multi-modal transportation platform connecting important travel nodes, such as Hong Kong International Airport, Hong Kong-Zhuhai-Macao Bridge and Hong Kong-Macau Ferry Terminal. In future, we expect to create greater synergy among our property, hospitality and transportation divisions along with our growth strategy of “Tourism Plus” — blending new elements like art and culture into our integrated properties.
On behalf of the Board, I would like to express my sincere gratitude to our staff for their resilience, unwavering determination and utmost professionalism during the difficult times. I am also humbled by the trust of our customers, and the staunch support of our shareholders and partners. As we look forward to the Post-COVID-19 era, I am confident that we have the assets, people and partners required in our pursuit of becoming the most trusted conglomerate in Hong Kong, Macau and Asia. We are also determined to generate optimal results for our shareholders and contribute to the growth of the communities where our businesses thrive.
Thank you.
By order of the Board
Pansy Ho
Group Executive Chairman and Managing Director
24 March 2023