Hang Lung Properties (101) announced 2018 annual results. In the financial year of 2018, total revenue decreased by 16% year-on-year to $9.408 billion; net profit dropped by 1% to $8.078 billion, and earnings per share was $1.8. The final dividends per share was $0.58; underlying net profit decreased by 26% to $4.093 billion, and the underlying earnings per share was $0.91.

Total revenue from leased properties increased by 5% to $8.181 billion, and revenue from leased properties in China and Hong Kong went up by 7% and 3% respectively. The total revenue from property sales decreased by 64% to $1.227 billion; of which the majority is attributable to the sale of three semi-detached houses at 23-29 Blue Pool Road, and nine units at The Long Beach.

The total revenue of Hang Lung Group (010) decreased by 15% to $10.015 billion last year; net profit dropped 1% to $5.285 billion year-on-year; underlying net profit went down by 21% to $2.631 billion; underlying earnings per share was $1.93; and final dividend per share was $0.61.

Hand Lung CEO Weber Lo said, after the sale of three houses at Blue Pool Road and nine units of The Long Beach apartments, there are only twelve houses at Blue Pool Road and one unit of The Long Beach apartment left. These properties are worth nearly $3.6 billion and the company will be sure to adjust market prices in light of the current market needs and company targets. Regarding the insufficient amount of properties for sale in Hong Kong, Lo said that the company had submitted an application to Lands Tribunal in 2017 for the reconstruction of the Amoycan Industrial Centre. The application has successfully entered into the final stage, and predicts that the result will be out in next few months.

Lo also commented that overall consumption in the mainland has slowed down. However, the consumption of luxury goods had strong figures this month. This is due to price reduction in luxury goods, and restriction in overseas daigou activities in the mainland as well as a strengthened approach in dealing with the taxation of inbound luxury goods. Thereby consumption of luxury goods in the mainland increased and the consumption-ability remains strong.

Hang Lung Chairman Ronnie C. Chan said that he is satisfied with their performance in 2018. Such that, sale performance in the mainland luxury market was not affected by the China-US Trade War. He also expects that there will be positive and steady growth in 2019 and property revenue will increase significantly in 2020, involving a total of 8 million feet comprised of shopping malls, offices and hotels, such as the Kunming and Wuhan shopping malls.