Hysan Development Company (14) investor relations material

Executive summary

• Turnover increased by 2.2% year-over-year to HK$1,730 million, with recurring underlying profit up 1.2% to HK$1,031 million, reflecting resilience in a challenging market.

• Retail, office, and residential segments all posted year-over-year growth, with residential turnover up 12.4% and occupancy at 70%.

• Lee Gardens precinct saw a 19% year-over-year increase in traffic and 4%–18% growth in tenant sales, outperforming the market.

• Strategic focus on reinforcing Lee Gardens as a premier commercial and cultural hub, with ongoing asset enhancement, connectivity projects, and diversification.

• A HK$8 billion capital recycling program was launched, including asset sales and redeployment toward strategic priorities.

Financial highlights

• Group turnover grew by 2.2% year-over-year; retail turnover up 0.8%–2.1%, office turnover down 2.4%, and residential turnover up 12.4%.

• Reported profit dropped to HK$75 million from HK$427 million, mainly due to a HK$964 million fair value loss on investment properties.

• Net asset value per share decreased by 1.2% to HK$63.5 as at 30 June 2025.

• Dividend per share maintained at HK$0.27 for the first half.

• Operating costs to turnover ratio increased to 25.8% from 25.0% last year.

Outlook and guidance

• Management remains optimistic but cautious due to global economic uncertainties and market headwinds.

• Continued investment in Lee Gardens and diversified growth strategy to capitalize on emerging opportunities.

• Lee Garden Eight project on track for 2026 completion, expected to expand leasable area by 30% and increase daily footfall by 20%.

• Confident in delivering robust business performance and sustainable long-term value.

• The company will maintain financial discipline and prudent risk management amid market volatility.