22 㞫ඊΔଐτࠉʔ̇ Hang Lung Properties Limited ଊɾদሃʥʗ㞫ඊΔଐτࠉʔ̇ 23ٲဳଉᄙྦྷඑ྆ ManagementHang DiscussionLung Properties and Analysis Limited of the Group’s Performance
ಲሃЄࣂЄΔc Ɉॖሔঢ়ࢋe Irrespective of location, we scale the heights of quality.
ลᙴ 24 OVERVIEW พೕࢄʥሻਕ 24 PROPERTY DEVELOPMENT AND SALESذ พै༉ 28 PROPERTY LEASINGذ ဳଉ 38 FINANCE AND TREASURY OPERATIONSټল৻ʥ༅ ࡗ 40 EMPLOYEES ผஐͨ 40 SOCIAL RESPONSIBILITYم
ϹȾ᎘ɾ7KH+DUERXU6LGHכࢋؿᄖౖ۪ᜨତશϽ Spacious living room of The Summit overlooking The HarbourSide on West Kowloon 24 㞫ඊΔଐτࠉʔ̇ Hang Lung Properties Limited
ଊɾদሃʥʗٲဳଉᄙྦྷඑ྆ MANAGEMENT DISCUSSION AND ANALYSIS OF THE GROUP’S PERFORMANCE
ȹΣࠗಋֺτΔଐʔ̇c̯එ྆ΕᏜ α۹ɾᏪพᔾɎࠌܧшྊɎᏪe̯ল ϛʗɾʄᒨʄϭಋྫྷɀɊɍყɄɝɍϛ αʑ٦්ၣɾϾΩכɀɊຒʏc˚߬ͅ ௰Ͻሻ൴ಕʭֺߎɀཌྷཌྷɀαiɀɊȼ ௰ϽhɀཌྷཌྷȹαiɍɊʒ௰Ͻe ΐϊcౝٖٖᎶЌक़Сಕʭϛʗɾ ɊɀᒨɄϭಋྫྷɊɀყཌྷȼϛຒʏe̯ ᘪݢೕ̱౨ٖࢠҰٖౝٖɀӯۺඑ྆ c̊Ͳα۹ౝٖޚȾ˦cၤ˾α۹ eޚࢠݯ̒ӯc͛ၤɐα۹ٖ
ಳంйc̒ඖ˚߬ณϾΩඖ͌එ̯྆ כϹȾ᎘ිࣵਂʥȹඖϽכɍඖϽܢ˳ Єʼ̈́ɾܪɮི߮cя̳Σ౨൬Ϸe
ԞϬࠗಋਆ⭕dᄘΥᅢdϾΩʥɮพþ αʑɎࠌcכνɃټพɾᐢैذᄘΥᅢ אνɃτХټЎԞϬɐࣵԭඖ͌ɾै ሻϊൡఝe
ྡྷؗeಳ̟ܮඑ྆ܰα۹ɾพᐜʦ̯ ȹȾȾȾαʥɀכඑ̯྆כϤcͫͅ ཌྷཌྷཌྷαࣂᄗᑪɃሔϾΩɠΔcΐ ൙ΔϽeכThe HarbourSide ϊ̯එ྆ଊ୮
พೕࢄʥሻਕذ ลᙴ ̯එ྆̒ඖሔϾΩඖ͌ଊ̳ܪɮc൬ גα۹c㞫ඊΔଐࠍྦྷʑ ۹я˿͌ᅟɾໃιˀ౨e̯එ྆ܧࡄ༦˾ɾলכ ʶc˞೩௰Ͻɾሔॖ˞ʥ̯එ྆ڌኝeඑ྆ɰ τܥʥᏪਆྊԞɾஈΛ cܪ૭ɣສพτࠉʔ̇ ݯҰඖֺ͌၀ʶ೪ིɾࡨஉܢ˳ѧιࠇୂcԯɻ Ίݯ㞫ඊΔଐτ ೩ඖ͌ࢄሻਕི߮ࣂcੀ˿ઘᆅמ˂ɀཌྷཌྷȹαɊɀכ ֺτΔଐඖ͌я͚ͅ ईɾ̟ʦᎶe܃ࠉʔ̇eඑ྆ʌ 㞫ඊΔଐ߲ஐc˥එ྆˞ഁ͂༅ʥ ዀᚁ༏Ⱦ᎘ॎכॶɈe 7KH+DUERXU6LGH Ͻجᘏړᆢ ଊɾদሃʥʗ 25ٲԜೕࢄɾɠΔௐ ဳଉᄙྦྷඑ྆˿ Development Land Bank Management Discussion and Analysis of the Group’s Performance ɀཌྷཌྷɀαʒ˂ɍɊˀat 30 June 2002כ
11%
89%
■ ϾΩ Residential ■ ਆ⭕ Commercial
OVERVIEW Hong Kong declined during the year. However income from our two projects in Hang Lung Properties has faced many Shanghai has helped offset this decline. challenges over the past financial year - both internally and within the marketplace in Our results this year reflect market reality. which it operates. As part of our corporate However, the Company is in a sound position, restructuring, Amoy Properties Limited in part due to the prudent acquisition of changed its name in December 2001 to quality residential sites in 1999 and 2000. Hang Lung Properties Limited. All future real estate projects will now be undertaken by PROPERTY Hang Lung Properties in a move which DEVELOPMENT rationalizes our Group-wide resources and AND SALES ensures our competitiveness. We have four prime residential developments Like all property companies in Hong Kong, under construction. All are on programme to we have been operating in a difficult economic meet their targeted completion dates and we ጙജഷϹ environment. Turnover for the financial year remain confident that the quality of units we Hing Wah Street West fell 5.5% to HK$2,383.2 million mainly due to are producing, together with the facilities that decreased sales of apartments at Garden have been carefully integrated within each Terrace (2002: 27 units; 2001: 36 units) during complex, will ensure strong market interest the year. As a result, net profit attributable to once we begin our sale campaigns for each ordinary shareholders decreased 12.8% to of these projects. HK$1,207.0 million and we have proposed a final dividend of 29 cents per ordinary share, The HarbourSide, Airport Railway Kowloon which is the same as last year. Total ordinary Station consists of three blocks of 70-storey dividend for the year is 40 cents per ordinary residential towers constructed above a 5- share, same as last year. storey car park podium. This development will offer 1,122 residential units with gross We are pleased to report that our construction floor areas ranging from 96 sq m to 272 sq m, programme, with four significant new and will be completed in the third quarter of residential developments (three on 2003. Our marketing and sales programme West Kowloon Reclamation and one in Ho will commence in the last quarter of 2002 Man Tin), is progressing on schedule. or first quarter of 2003.
Rental revenue in the commercial, office, The Hing Wah Street West development, residential and industrial / office sectors in situated on the West Kowloon Reclamation, 26 㞫ඊΔଐτࠉʔ̇ Hang Lung Properties Limited
༦㞫ඊΈඖ͌ଉؿະ೪ະɈc ϭഁכඑ྆ؿ7KH+DUERXU6LGHඖ͌ጘ Hang Lung’s project managers move the Group’s The HarbourSide development towards completion ଊɾদሃʥʗ 27ٲဳଉᄙྦྷඑ྆ Management Discussion and Analysis of the Group’s Performance
ɐၰc˳ܢɍᄝᅢঢ়ȼɊᄙɾϾΩɣ෨c is on schedule for completion in the fourth Ɏஉʄᄙӹeඖ͌˿ొԜȹɝȹϛ quarter of 2003. We have an 85% ɀɊɀϾΩ௰ϽcҰ௰Ͻɾࠍዶʍ˝ shareholding in this development which ɀ consists of five residential towers built overכȾɊʒ̡ʿϝϭɀϛȼɊɀ̡ʿϝc ɀཌྷཌྷ a 3-storey carparking / retail podium andכཌྷཌྷɍαɍտໃιe̯එ྆ੀ ɀα̒տֶɀཌྷཌྷɍαȹտࢄඖ one level basement and includes clubhouse ͌ɾ̟ઐᄤʥሻਕི߮e and recreational facilities. This development is one of the Government’s two pilot mixed- ϹȾ᎘ිࣵਂcଊ̳ housing schemes. The residential towersכጙജഷϹ ඖ͌Ͻ ɀཌྷཌྷɍα̒ contain 1,616 residential units with grossכɮc˿શΣ౨ܪ൬Ϸ տໃιe̯එ྆ܛτඖ͌ϛʗɾɄɊ floor area ranging from 46 sq m to 119 sq m. ʄᚬऩeඖ͌˳ܢೕࢄʄᄝϾΩɣ As part of the mixed housing scheme ෨cɎஉɍᄙӹþਆ⭕ʥȹᄙΔ requirement, about 30% of the residential eඖ͌Ƚ area will be returned to the Government forܪผֺʥᅥஉܢ˳cԎ βָ۰ི߮ࠖԭඖɾȹcԯϾ sale as subsidised housing. We will market֚ܧ Ωɣ෨˳ܢȹɝʒϛȹɊʒϾΩ௰ the remainder as private flats for sale at full ϽcҰ௰Ͻɾࠍዶʍ˝̒Ɋʒ̡ʿϝ market value during the first half of 2003. ϭȹϛȹɊȾ̡ʿϝeϛʗɾɍɊɾ ๑βָ۰ི߮ɾͫ Our other development on West KowloonܘϾΩࠍዶੀ Аݯ༅Хָ۰ˮਕe Reclamation is at Hoi Fai Road where eight֚ܧஃցc͚Α ძАݯӝɁ blocks of 43-storey residential towers are̟ܘɎɾ௰Ͻ̯ͅඑ྆ѧͲ ɀ being built on a prime sea view site. Theכ۰ˮਕcτᗐɾ̟ઐᄤི߮ੀָ ཌྷཌྷɍαɐ˸α۹൬Ϸe development includes a three-storey car park, office and retail podium and 4,000 sq m ϹȾ᎘ිࣵਂɾඖ͌ detached clubhouse with recreationalכඑ྆̊ȹඖϽ̯ พeඖ facilities. The 1,823 units, which range inذࣵሣ༞ɾሔࣵౡכȽໃ ͌ଊ̳ೕࢄɄᄝᅢঢ়̒ɊɍᄙɾϾΩɣ size from 62 sq m to 132 sq m, are expected ෨cԎ˳ܢೕࢄɍᄙᄘΥᅢdਆʥ to be completed in the second quarter of ӹc˞ʥࠍዶ༠̒ɝ̡ʿϝɾዟ͓ผ 2004. We have not yet set a launch date for .eϾΩ௰ϽੀݯȹɝɄϛ this projectܪֺᅥஉ ɀɊɍcҰ௰Ͻɾࠍዶʍ˝ʒɊɀ ̡ʿϝϭȹϛɍɊɀ̡ʿϝeད౨ඖ Foundations were laid for our development ɀཌྷཌྷ̒αɀտໃιe̯එ྆ at Hau Man Street in Ho Man Tin duringכ˿͌ ֆ̰ໃྡྷඖ͌ઐˮ̟ɾࣂංe the year and superstructure work is now in progress. This 24-storey residential tower will provide 188 units ranging in size from ̯כЄʼ̈́ѣ̵ഷ ɾඖ͌ɰכඑ྆Ͻ̯ 28 㞫ඊΔଐτࠉʔ̇ Hang Lung Properties Limited
α۹ʑc̯ܧࡄ༦˾ɾলכؗcرዾɮೡ͛ ౝ༧ۺα۹ʑѧιΔਥɮೡcϤɐၰ νɃɎൡϛʗɾټೕࢄȹᄝᅢঢ়ɀɊ̒ එ྆ԞϬࠗಋɾैܢ˳ɰࢄeඖ͌ ᄙɾϾΩɣ෨cੀొԜȹϛɄɊɄϾΩ ɀcݯಋྫྷɊȼყཌྷȹϛ̒Ɋຒʏe ɐࣵɾԭඖ͌㞫ඊᄤʥכ௰ϽcҰ௰Ͻɾࠍዶʍ˝ʄɊʄ̡ʿϝ ̯එ྆Ͻ ɀཌྷ ಋමᄤcʗПొԜಋྫྷɀყཌྷȹϛຒכ˿ϭȹϛȹɊ̡ʿϝeད౨ඖ͌ νɃcτټඖ͌ɾஃᅡ༖ ʏʥಋྫྷʒɝຒʏɾӪΡैכཌྷɍαʒ˂ໃιeͅ ሻ̯එ྆ඖพ৻ֺՇԷɾᄧᚊeאԯໃιࣂઐˮ̟e Хכɩc̯එ྆τ˿ॶ νɃ༖֡αᄈ˱ϛʗɾټΐϊኬै พୂɾኬذพै༉ Ʉe̯එ྆ɾࠗಋै༉ذ ϛʗɾȾɊȹɾଉˋ̡cכˮଅ୮ै νɃԞϬਆ⭕dᄘΥᅢd ԯɻᄘΥᅢʥႚΩˈਆ⭕Εैˮଅʿࠍټඑ྆ɾै̯ ༞ɾ ֻՇ༖ɣᎦɈe̟כพeਥذϾΩʥɮพþᄘΥᅢ ଊ Group Performanceٲඑ྆ 2002 2001 ᛰ৽ Change ϛຒʏ ϛຒʏ ϛຒʏ ϛʗଅ $Million $Million $Million %
Ꮺพᔾ Turnover พै༉ Property Leasingذ ࠗಋ Hong Kong 1,701.4 1,741.5 -40.1 -2 ɻਝɣ Mainland China* 201.0 19.3 +181.7 +941 พ Disposal of Investment Properties 480.8 762.4 -281.6 -37ذˮਕҙ༅ 2,383.2 2,523.2 -140.0 -6 С Profit before Taxationึکೢ พै༉ Property Leasingذ ࠗಋ Hong Kong 1,358.6 1,480.2 -121.6 -8 ɻਝɣ Mainland China 169.6 30.0 +139.6 +465 พ Disposal of Investment Properties 130.7 320.2 -189.5 -59ذˮਕҙ༅
1,658.9 1,830.4 -171.5 -9 СࢠνɃ Interest Income 93.0 225.2 -132.2 -59 Ϸܧ͂ Administrative Expenses (88.6) (86.3) +2.3 +3 ল৻͂ Finance Costs (256.9) (266.2) -9.3 -3 1,406.4 1,703.1 -296.7 -17 ౝٖٖᎶЌक़С Net Profit attributable to Ordinary Shareholders 1,207.0 1,383.7 -176.7 -13
ಋමᄤϛʗɾ̒Ɋȼɾᚬऩכඑ྆ܢ˳ɺ Excluding the Group’s attributable interest (47%) in The Grand Gateway ଊɾদሃʥʗ 29ٲС ဳଉᄙྦྷඑ྆ึکᏪพᔾʥೢ Turnover and profit before taxation Management Discussion and Analysis of the Group’s Performance ࿀ϭʒ˂ɍɊˀ˅α۹for the year ended 30 June
ϛຒʏ $Million) 4,000
3,000
2,000
1,000
С Pofit before taxationึکೢ ■ ■ Ꮺพᔾ Turnover 0 1998 1999 2000 2001 2002
55 sq m to 110 sq m and is expected to be and encouraged a greater commitment to completed by June 2003. We will probably marketing investments in brand extensions by put this project on the market upon its well established consumer labels. completion due to its smaller size. As a result, rents are stabilising in prime PROPERTY LEASING shopping locations where rental space remains tight. However further market Our rental revenue is generated from consolidation is expected at secondary commercial, office, residential and industrial/ locations where rents will continue to be office sectors. In line with general market driven down. As most of our shopping malls conditions, that revenue over the past are in primary locations, they have performed financial year in Hong Kong decreased by satisfactorily throughout the year. Ί֙ఢ Fashion Island 2% to HK$1,701.4 million. Our two Shanghai projects, Plaza 66 and The Grand At Fashion Island/Fashion Walk in Causeway Gateway, however, helped offset the Bay rental income recorded a decrease of downturn by generating for us sound levels 1% and the occupancy level stood at 99%. of income at HK$201 million and HK$60 We are gradually revamping the mix of retail million respectively. Total rental income outlets here and expect to achieve higher therefore increased by 8% over last year. rental rates on renewals. Occupancy rates in our Hong Kong portfolio stood at a satisfactory level of 91% with The Peak Galleria recorded a 5% decrease offices and high-end residential sectors in rental income but average occupancy suffering more than retail. reached 90% by the end of the financial year ɬᄤ after we adjusted the tenant mix to cater for The Peak Galleria HONG KONG a change in the countries of origin of tourists. The development continues to be a popular Commercial and Retail Sector destination for both overseas and local In our commercial and retail sector, weakened visitors and is attracting a number of new consumer confidence continues to affect retail and service operators. performance. Many of the structural economic changes Hong Kong is undergoing will take We have successfully concluded a new 10- time to filter through from the supply chain end year lease agreement with the government of the economy to the retail frontline. While this at Queensway Plaza. This, together with our has left traditional retail sales sectors such as renovation programme, has encouraged a apparel and restaurants in a weak position, it revamped tenant mix and an overall increase has stimulated a new niche of market operators in rental income. 30 㞫ඊΔଐτࠉʔ̇ Hang Lung Properties Limited
Ⴛᝅᜪzࠗಋؿכพ㞫ඊɻʶໃذඑ྆ԯɻȹඖሔ̯ ɾΔذc˥Ɂீᙺؿࠕᑪےɺէ Causeway Bay, the city never sleeps, is home to Hang Lung Centre, one of the Group’s premier developments. This retail core of Hong Kong boasts superb dining and exciting shopping
ࠗಋ Similarly, Kornhill Plaza in Quarry Bay has recorded 99% occupancy and a 2% ਆʥਆ⭕ increase in rental income. This follows the ʶठྦྷ̯එ྆ɾਆʥਆ⭕ɾ completion of major renovations and theڌࣱ ᙩ࿚ιᄧᚊeࠗಋଊ̳ዃ࿚ introduction of a large physical fitness centreܛଊٲ ɾᏜᔝᛰcஈΛᔝᛰяࣂᏜ as an anchor tenant. The trade mix has beenֲ ᇃɾཌྷਕพeϊ changed and the plaza’s cinema was beingکɾԜᎶᗆ̱ဲငɃϭ .֙ᎁᎂ೩ඨཌྷਕ revamped during the summer seasonר˥೩ᔝᛰᒖಳ බcЎԶውȹғณᏪਆّᇻכพ୮ ಶҡዶ In East Kowloon, the success of Amoy PlazaۂΔϽɾࣱ͓ۺcԎརɰ́ ಶɾ̟ઐᄤe has reflected the changing profile of theۂรҙ༅Εᒷࢄ neighbourhood with an increasing number of younger shoppers. Occupancy stood at כΔᒨɾਆ⭕ʋಳұ༦ټΐϊcໃඡ ਠᖇhЎΔᒨ༖Ⴋϳɾ 98% and rental income decreased 1%. WeܛړټԜcԯै ᙩՇᎦΉɎcད౨ have repositioned food and beverageܛੀټਆ⭕cԯै එ྆ɾ offerings and changed the mix of anchor̯כੀτ൬ȹүɾኬ՞e̟ͅ tenants. Over the coming months, new ܛړcΐϊΕαʑّکਆɣͫяᙔ ଊe themes will be introduced into various zonesٲଉɾ of the plaza. νټႻᝅᜪɾΊ֙ఢþΊ֙ы ɾैכϽ Ƀ፣ϛʗɾȹൡఝcैˮଅݯϛʗɾ Grand Tower Arcade in Mongkok has also ȾɊȾe̯එ̳྆үࠇኬΊ֙ఢþΊ undergone a change in tenant mix. A fitness ੀ centre has taken over 4,000 sq m of spaceټыɾैʸୂcԎད౨ᙩࣂै֙ ˿ሁʠe and a reputable food chain has moved into the entire basement food court. This has νɃ፣ϛʗɾʄൡ resulted in a refreshing new look to theټɬᄤɾै ఝeಳϤcࠇኬैʸୂ˞ಋ shopping centre. Occupancy for the year stood at 97%, and rental income ܧল̯כcɬᄤ܃ࣁ۪Ԟɾᔝᛰ α۹Ңࣂɾ̡яैˮଅɰ༠ϛʗɾȾ decreased by 13%, due to ongoing .Ɋeɬᄤʋݯࣵ̔༝۪ʥ̯ΔɁɡ renovation work ᙩмʵณؿཌྷਕਆܛᐽɾΔcԎͮכᅥ ৻ਆݡैe Office Sectorרʥ The demand for rental office space has ᘸఢ ͓߯ݯ౨Ɋα continued to slacken as corporate downsizingټగ֚ܧඑ྆ɰၤ̯ .พ༦ᓺณʥࠇณሁኬ and restructuring impact the marketplaceذɾณैe e Despite this, we are pleased in general withٽνɃ፣ᄈټcኬै܃ʸୂै ଊɾদሃʥʗ 31ٲဳଉᄙྦྷඑ྆ Management Discussion and Analysis of the Group’s Performance 32 㞫ඊΔଐτࠉʔ̇ Hang Lung Properties Limited
ɀཌྷཌྷכඑ̯྆כ㢺ேࣾɾֱᄤ͛፣༠ϛʗɾ ̡e೩ιᐜ˚߬ͅכϽ ЩʵɃɾ˚৽ֲ͓܃νɃɐʠϛʗɾ ཌྷαޫҌ؞ؑᕶवټȾɊȾɾैˮଅcै ɀeϊඖιᐜȽΐѧιࠇɣᓺณɮೡʥ ै༉೪Ϥ༠ϭe ᛪɻʶݯ࿏ᘜ۪ʸϤ༠ێʵɃȹֺɣ พcԯذᜪˠɾΪɻʶכϭeֱᄤɰҝᛰԯैʸୂcϤԯ ̯එ྆Ͻ ࡧտ൬Ϸᓺณe ᏪੱؗՇԷɺСɾ̟ྊֺᄧᚊcैכᎻɰ ˮଅΐϤɎሁe˚߬ݯޫ၉ʔ̇ɾΛං ᘗࠧஶc˱ɐॠ˜ณैʸֶᓿैޚሱ ͬพܮȾ᎘ɾ૭ɣਆcԯι˲ʦכϽ ɾᄈ ʸᒷɣै͂ࠍዶɾұcኒߎਂʑɾᄘّذᑪڇະᛰʝ˞ʥαمΔਂɾٶ ˱e૭ɣਆɾैˮଅ༠ϛʗɾȾɊ Υᅢ௰Ͻˮଊ༦ᑫeቱဳΣϊc̯එ྆ ၤܛνɃʋॶၐټพɾैذνɃ፣ϛʗɾȹൡఝe̯එ ɾΪɻʶټɄcै ߗɾˋ̡cैˮଅݯϛʗɾɄޚɰࠇณອ૭ɣਆɾࠕຳʥኬଉԯ ˾α۹྆ Ԟᅕ˂ݯ૭ Ɋʄḛכ࿏ᘜैʸɾୂcԎੀ ɣਆΈ֙⭕ਂʵɃณ˚ᕀe ᙩՇԷ୮ᄘܛႻᝅᜪɾ㞫ඊɻʶכϽ พɾГҶ̟༞ֺᄧᚊeಳϤcͅذӯɾඏᙬৈ֙ਆ͛ɰࠇኬैʸ ΥᅢלכϽ 㟞ਆพɻʶ जଊτैʸc㞫ඊɻʶʋॶၐړ˲ιכ Park-In Commercial Centre ୂeȹֺ৪Ӹɻʶɰै͂ਆ༩̒ ϛʗɾȾɊɄɾˋ̡cЎैכˮଅैܛ Ίᎁඝடᔧكɝ̡ʿϝɾࠍዶcϤȹං ɺᛰeܛړڬνɃټ ͛ɰै͂ΔͲᄙɾࠕᄤcݯ֙ ਆԞณࠍႜeඏᙬৈ֙ਆɾैˮ ӯᗫɣ෨d㟞ਆพɻלכνɃ፣ϛʗ ̯එ྆Ͻټଅ༠ϛʗɾȾɊȼcै ˚พɾذ൬Ϸᓺณɮೡֺ ʶʥ୩ңݠਆพɻʶɾᄘΥᅢכɾɊɍൡఝcȽͅ พɾै༉ੱذพe೩ͬێߎe ߬ैʸݯɩ ؗʋಳᖇցc፣ɾኬैˮଅݯϛʗ νɃᄈ˱ϛʗɾȾeټᄘΥᅢ ɾȾɊɍcै ՇԷͬพᐛಕஃᅡʥ൬Ϸࠇୂֺᄧᚊc αܧɐȹলכ ҳᜪɾϛԙɣ෨ٽכᇅeቱဳ ϽיᙩܛᄘΥᅢै༉̟ɾұ ݯᄘΥᅢɣ෨cࠖαۺࡄ༦ ۹ͅɮพɣ෨ҝכพذΣϊc̯එ྆ྦྷ࿏ɎᄘΥᅢ ɾैˮଅԷ ɾैˮଅݯϛʗɾʒɊeܛα۹ౝ༧ၐܧɾল˾ ௩e ɮพþᄘΥᅢ พᄈذᏜɺౡd˿Ԝै༉ɾᗘכͅ ᄘΥۺՇԷਂʑณټɻਂɾᄘΥᅢै ౝ༧Ɏሁcɮพþᄘټᅢ༦ԜᎶɾɺСᄧᚊeಳϤc̯එ྆ ˱˞ʥᄘΥᅢै αʑɾұˮଊɎࠌe̯එכพذɻɾ̒ᄝᄘΥᅢɣ෨ֺ፣ɾै ΥᅢכϽ τɍຒʄɝ̡ʿϝɾɮพþᄘΥᅢܛ྆ ϛʗɾɍcٽνɃcʋ༖˾αใᄈټ ܧলכพذࣾc೩כพc˚߬Ͻذ ˋϤैˮଅʋ༠ϛʗɾɄɊȾɾଉ ଊɾদሃʥʗ 33ٲဳଉᄙྦྷඑ྆ Management Discussion and Analysis of the Group’s Performance
the occupancy rates we have been able to occupancy rates were recorded at 93% while sustain throughout the last financial year. income increased by 9%.
Rental rates in Central have been adversely In Cheung Sha Wan, Park Building, which affected by the over-supply of newly built is an industrial building converted into offices office buildings. However, rental income for during the last financial year, the occupancy our four office buildings in Central recorded rate for the development’s first year of a modest 3% increase over the previous operation stood at 60%. year’s figures while occupancy rates remained at a satisfactory 89%. These results are due Industrial / Office Sector primarily to our proactive leasing policy which Demand for properties in this sector dropped was introduced in the immediate wake of the during the year due to the poor economy, the technology bubble burst in 2000. increasing amount of properties available and the general downward rental adjustment within At Shui On Centre in Wanchai, we have the office property sector. We have 35,000 been operating in an adverse marketing sq m of industrial/office property space, environment with deteriorating occupancy primarily in Kwai Chung. The overall occupancy rates. Accelerating failures of business, level at these properties during the financial primarily among dotcom companies, and year stood at 67%. Total rental revenue the lack of demand for new or expanded however dropped 10% to HK$24.3 million. space, has resulted in negative absorption. Despite this, rental income was maintained Residential Sector at the same level as last year and the The retail market for luxury residential occupancy rate stood at 85%. properties weakened noticeably during the year. With corporations continuing to Hang Lung Centre in Causeway Bay decrease their staff housing allowances, low continues to reflect the locations dismal to middle rental budgets dominated the market conditions for offices. However, by leasing market for luxury rental apartments. successfully retaining our existing tenants, we have maintained our occupancy rate at As a result, total revenue from the rental of
98% while rental income remained steady. residential properties fell by 22% to HK$70.6 ࢋ million. The Summit Leasing activity remained strong at Ritz Building, Park-In Commercial Centre and The Summit on Stubbs Road on Hong Kong Hollywood Plaza in Mongkok where offices Island received its Occupation Permit in are dominated by smaller businesses. Overall January 2002. This 70-storey residential tower 34 㞫ඊΔଐτࠉʔ̇ Hang Lung Properties Limited
ॶࠝᙴၐΛСԓಋౡϳؿ ؿȹԝܪʑ؈ϑcඩܰࢋሔஉ۩ The Summit’s indoor pool provides dramatic views over Victoria Harbour – just one of the state of the art facilities provided in a premier development ଊɾদሃʥʗ 35ٲဳଉᄙྦྷඑ྆ Management Discussion and Analysis of the Group’s Performance
ϛʗɾʒɊ with its 52 duplex (each of 302 sq m) and 2ܛα۹ʑɾኬैˮଅၐ ɎࠌϛʗɾɊϭ double duplex (each of 603 sq m) apartmentsڬνɃټȼeЎኬै ಋྫྷɀɝ̒ϛɍɊຒʏe is set to become a Hong Kong Island landmark. Built on a 3,045 sq m site, each apartment ϾΩ boasts its own lift lobby, double height ceilings ᇅe፭ടͬ in the living area and four-bedroom and isיαʑᛷടכႚΩཌྷਕ̟༞ ಕࡗɮɾָ۰ݛൎcГϭɻˋ equipped with state of the art appliances, homeڨᙩܛพ .༟ιݯႚΩै༉̟ɾ˚ݚe automation and telecommunication systemsټɾै̡ Units were offered for lease in June 2002 and ΐϊc̯එ྆ԞϬϾΩै༉ɾᐢνɃɎ initial response has been encouraging. The first ࠌϛʗɾɀɊɀϭಋྫྷȼɝཌྷʒɊຒ tenants will move into the building before the ʏe end of 2002.
Burnside Estate in Hong Kong South כพɰذಋࢌ̇׆༞ΊݯࢋɾכϽ ɀཌྷཌྷɀαȹ˂ᏵೕɃ͟फ़eᄝᅢঢ় maintained its average occupancy at 93% ȼɊᄙɾϾΩɣ෨˳ܢʄɊɀᇲβႚ although rental revenue dropped by 2% from ΩҰ௰Ͻݯɍϛཌྷɀ̡ʿϝʥԭ the previous year. The turnover of tenants ᔶᇲβႚΩҰ௰Ͻݯʒϛཌྷɍ̡ʿ in the HK$100,000 plus rental budget range .ϝcࢿੀιݯಋࢌਂɾΔᅟeඖ͌Ќ was high Δɍɝཌྷ̒Ɋʄ̡ʿϝcҰႚΩяஉ ዟ͓ɾཋસɣਦdʨ٦ࠛঢ়ɾ۪ඛᜨ࠹ We have continued our programme of -ဣָcԎສͱ൬ɾཋኂdϬ৽ࡼֈ selling units at Garden Terrace in Mid̒ ɀཌྷཌྷ Levels. By the end of the fiscal year, we hadכӡʥཋӡe೩௰Ͻɰ үʦᎶ˥Ɂ sold 63 of the 74 four-bedroom units in theٱɀαʒ˂ઐˮ̟ै༉c .development کɀཌྷཌྷɀαα֛כརၦeࠖғैʸੀ ሰɃe Car Parks Sector ɾᏛౡ්ɾ̡яैˮଅʋ Our car park operations are regarded asਂڲಋࢌכϽ among the best in Hong Kong. We have ڬνɃټϛʗɾȾɊɍɾˋ̡cैܛၐ ᔾ൚༦ಋ had a smooth year of operations as a resultټ༖ɐα۹Ɏࠌϛʗɾɀeै Ɋຒʏɾैʸɾݚ̖ଅ༖ঢ়e of our investment in effective in-houseྫྷ software and our adherence to the ɬਂɾ٦්ၣ௰ internationally recognised ISO 9002 quality˸כඑ྆ᘗᙩሻਕϽ̯ .α۹့ˀc̯එ྆ɰਕˮ systemܧলכϽe ٦්ၣȼɊ̒̒ဣָႚΩԯɻɾʒɊ ɍe Total parking revenue dropped 9% to พࠍዶذ㞫ඊΔଐτࠉʔ̇ ҙ༅ 36 Hang Lung Properties Limited Investment Property Size ʒ˂ɍɊˀat 30 Juneכ
ɝ̡ʿϝ (’000 sq.m.) 800
600
400
200 ϾΩ Residential ■ ᄘΥᅢɮพ Office / Industrial ■ ਆ⭕ Commercial ■ 0 1998 1999 2000 2001 2002
ᗘʗ Segmental Analysisܘ
νɃټै ᅢࠍࠍዶ Gross Floor Area# Rental Revenue# ̡ʿϝ sq.m. ϛຒʏ $Million 2002 2001 2002 2001 พ Investment Propertiesذҙ༅ ਆ⭕ Commercial 300,800 299,200 1,138.0 1,103.5 ᄘΥᅢ Office 249,800 259,400 600.2 482.0 ɮพᄘΥᅢ Industrial / Office 35,000 35,000 24.3 27.1 ϾΩ Residential 35,600 26,700 70.6 90.4
ೕࢄɻඖ͌ Projects under Development ਆ⭕ Commercial 44,700 44,700 – – ᄘΥᅢ Office 64,000 56,300 – – ϾΩ Residential 367,600 382,900 – –
1,097,500 1,104,200 1,833.1 1,703.0
ӹϽᅕ͌ No. of Carparking Spaces
ӹ Car Parks 6,272 6,261 124.2 135.9
ᐢ߮ Total 1,957.3 1,838.9
˳ܢ̯එ྆ɾᎶЌᚬऩ Including the Group’s attributable interest ଊɾদሃʥʗ 37ٲνɃ ဳଉᄙྦྷඑ྆ټै พᐢࠤذ Property Value Rental Revenue Management Discussion and Analysis of the Group’s Performance ʒ˂ɍɊˀat 30 June ࿀ϭʒ˂ɍɊˀ˅α۹for the year ended 30 Juneכ
ϛຒʏ $Million) ϛຒʏ $Million) 40,000 3,000
30,000 2,250
พᐢࠤProperty Valueذ พ Investment Propertiesذҙ༅ ■ 1,500 20,000 พ Properties under Developmentذೕࢄɻ ■
10,000 750 νɃRental Revenueټै ■ ӹCar Parks ■ ϾΩResidential ■ ᄘΥᅢþɮพOffice / Industrial ■ ਆพ Commercial 0 0 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002
พ Geographical Analysis of Investment PropertiesذΔਟֲʗɾҙ༅ܘ
ɀཌྷཌྷɀαʒ˂ɍɊˀ at 30 June 2002כ ӹϽᅕ͌ νɃϛຒʏټᅢࠍࠍዶɝ̡ʿϝ No. of ɀཌྷཌྷȹཌྷɀα۹ै Gross Floor Area (’000 sq.m.) Carparking 2001/02 Rental Revenue ($Million) ᐢ߮ Spaces ᐢ߮ C O/I R Total C O/I R CP Total ࠗಋ Hong Kong
ಋࢌ Hong Kong Island ᘸ Central & Admiralty 10.1 40.5 – 50.6 16 108.8 154.3 ––263.1ټɻʥ Ⴛᝅᜪʥᜪˠ Causeway Bay & Wanchai 40.8 38.8 8.0 87.6 418 218.3 127.2 11.6 11.0 368.1 ɬʥ㢺ேࣾ Kornhill & Quarry Bay 54.1 37.3 – 91.4 1,159 192.6 72.3 – 29.5 294.4 ɬʥ˸ɬਂ The Peak and Mid-Levels 12.5 – 18.3 30.8 587 41.3 – 13.4 9.8 64.5 Hong Kong South ––9.2 9.2 89 ––45.1 – 45.1 ਂڲಋࢌ
Ⱦ᎘ Kowloon ӯ Mongkok# 24.1 46.9 – 71.0 1,433 161.9 91.5 – 49.4 302.8ל άҳՍ Tsimshatsui 6.1 11.1 0.1 17.3 – 26.2 44.0 0.5 – 70.7 ˒ӯʥᜮ Nagu Tau Kok and Kwun Tong 60.6 6.5 – 67.1 785 266.1 1.3 – 21.9 289.3 ,ҳᜪd Cheung Sha Wanٽ ࣾʥԯˢ Kwai Chung & Others 4.5 42.1 – 46.6 199 2.5 35.4 – 2.6 40.5
ɐࣵ Shanghai
࢘මਂ Xuhui District# 46.9 –– 46.9 1,100 60.0 ––– 60.0 ፷Ϊਂ # Jing An District*# 41.1 125.6 – 166.7 486 60.3 98.5 ––158.8
ᐢ߮ Total 300.8 348.8 35.6 685.2 6,272 1,138.0 624.5 70.6 124.2 1,957.3
එ྆ɾᎶЌᚬऩ C: ਆ⭕ O/I: ᄘΥᅢɮพ R: ϾΩ CP: ӹ̯ٲˤ Representing the Group’s attributable interest Commercial Office/Industrial Residential Car Parks
พذೕࢄɻܢ˳ Including property under development 38 㞫ඊΔଐτࠉʔ̇ Hang Lung Properties Limited
ဳଉټӹ ল৻ʥ༅ එ྆ᙷݯࠗಋԙӹᏪّɾ̯ ɀཌྷཌྷɀαʒ˂ɍɊˀc̯එ྆ɾ၃כ ΕϬϷೕɾசͧӡАˮҙכȹeͅ ʥႺϷΦಁټਝሔ൴ᅟ ႺϷࠥ൘૱ᔾκଊ ༅˞ʥྵઔढ़,62 α ݯಋྫྷɍɊɀყɀɝʒϛຒʏc˾αכๅcΐϊ̯එ྆ɾӹဳଉพ৻ ݯಋྫྷʄɊɀყɀɝɄϛຒʏeႺڬʑᘗᙩ࿑༜Аe ౨ α۹Ɏܧলכඑ̯྆כϷࠥ൘ಕʭȽͅ ɁɟʗЗɾᛰʝኒߎ̟ਂӹɾ ˸αೕϷࠖඖಋʏ˿ٖඦԴֺߎeೕכᛆ ᐢᔾݯಋྫྷɍɊ̒ყʄټᇅc̯එ྆ ϷɾඦԴɾ̯יұಕʭc˱ɐᏜै˂ ಋමᄤfɐࣵ ԞϬӹพ৻ɾኬνɃɎࠌϛʗɾ ɝຒʏcϤඖೕϷɾ͌ؿȽݯ̯එ྆ The Grand Gateway, Shanghai e˿ټȾϭಋྫྷȹყɀɝ̒ϛɀɊຒʏeಳ ᘐඑݯ౨ʄαɾГι̯ցࢠ༅ Ϥc̯එ྆ɣͫϽສଉؿӹɾ ٖඦԴɾСଅݯɍᒨ̒cϤٖძݯ ଉɾˋ̡e ҰٖಋྫྷȾʏe࠱˿ٖඦԴᏵ੪ᅕܛࣂैพ৻ʋၐ cད౨̯එ྆ɾኬඦඖၤٖᚬˈଅٖ ɐࣵ ੀɎࠌe cኟτʄຒɀɝ̡ αʑc̯එ྆ΕႺ྆൘ಁ̟Ϊખȹඖಋٱα۹ɾαܧল̯כ ᔾټΈʄιɾܘਆʥᅢঢ়ʒɊʒᄙፒʔ۩ɣ ྫྷ̒ɊყʏႺ྆൘ಁcذʿϝᑪ ᅢɾ㞫ඊᄤ̳β㝠พcᅟႌ㠥̯එ྆ ʗݯʄα౨ʥȼα౨ɾ൘ಁeϊඖ ɀཌྷཌྷɀαʄ˂ѧιcԎᏵכ൘Ϊખɰڌ ȹȾȾȾαכΕɐࣵ̊ȹඖณೕࢄcϤ eඖ൘ಁᛷܛԯࢽऩe Ɋʄං˚߬ႺϷፉᙺʻע㝠พɾಋමᄤ͛ࣂᖬ ྦྷވ൘ᐰᙷʥႺϷڌടɾܭඑ྆ኟτ̯͐ ʶeڌଊ૯Ԯٲਆcଊɰ ̯එ྆ɾᄗဳଉʥল৻ذಋමᄤ Ƚɐࣵɣɾᑪ ɐࣵɣɾΔכพໃذͲैˮe ɀཌྷཌྷɀαʒ˂ɍɊˀc̯එ྆ֆ̰כ ܛᚁॎ࢘ࡼමΔᚁॎɾɐၰc㞫ඊΔଐ ൘ᔾடႺϷΦಁͳݯڌτಋමᄤϛʗɾ̒Ɋȼᒨɀʄᚬऩe ৽͂ɾႺϷ ಋྫྷɄɊʄყɍɝɄϛຒʏcԯɻಋྫྷ ɀཌྷཌྷȹ ɍɊȹყ̒ɝʒϛຒʏݯႺϷΦಁdಋכԕϹ༏ɾ㞫ඊᄤ ɰڲכϽ ൘ᔾcڌͲैˮe ྫྷ̒Ɋყ̒ɝɀϛຒʏݯֻጻٶαȼ˂̳β㝠พcଊɰઅ ൘e̯ڌพɾΔࠍਆ⭕ඔඑ˺Δԓdࠗժԫ ϤಋྫྷɊɍყʄɝຒʏݯݠ౨ذ cӷ˞ొԜ̯එ྆ɾټಶ֙cмʵɐ̯ࣵ එ྆ኟτ˨༅ۂ೩ਝۤמʥ༏ ʥ༅̯ʻֺeټ㞫 Ꮺ༜༅כɾɣ൴ᚋ۪Ɂݚeϭ̟ޘٶɠʥሱ ඊᄤᅢঢ়ʒɊʒᄙɾፒʔ۩ɣᅢ͛ɰ cϤ̯එ྆א༎ਝʔ ̯එ྆ɾႺϷ൘ಁݯಲێͲैˮcैʸɣͫݯɣ ౨ɾֻٽ೪ȽҐԷ౨ɾඦඖ˞ɻϭܧτ㞫ඊᄤϛʗɾȼɊ ɾܛe㞫ඊΔଐ̇ ˂ɀཌྷཌྷɀαʒכ൘൬Ϸʹጪ༅eڌȾᚬऩe ጻ ଊɾদሃʥʗ 39ٲဳଉᄙྦྷඑ྆ Management Discussion and Analysis of the Group’s Performance
HK$124.2 million. This is attributed to both FINANCE AND the decreasing monthly parking demand in TREASURY OPERATIONS urban areas as a result of demographic changes and the slow economy. Hourly As at 30 June 2002, the Group’s consolidated parking business however has remained net bank borrowings (after deducting cash and satisfactory in most of our well-located car bank deposits) totalled HK$3,226 million parks. compared to HK$5,228 million of last year. The level of bank borrowings decreased as SHANGHAI the Group issued the first Hong Kong Dollar Convertible Bond in the second half of the The financial year began with the opening financial year. The aggregate principal of the of a new key note development in Shanghai bonds issued amounted to HK$3,450 million -Plaza 66, a 52,000 sq m shopping mall with and the purpose of the issue was to raise low 66 storeys of offices - and verification of the cost, fixed rate funding for the Group for a success of The Grand Gateway complex period of five years. The Convertible Bonds which we opened in 1999. have a coupon of 3.4% and the conversion price is HK$9 per share. On full conversion of The Grand Gateway is Shanghai’s largest the Convertible Bonds, the Group’s overall shopping complex and is fully leased. Hang debt equity ratio is expected to be lower. Lung Properties holds a 47.25% interest in this shopping mall, which is located above In the syndicated loan market, the Group Shanghai’s largest subway station, Xujiahui arranged a HK$4 billion facility equally split Station. into five and seven year revolving and term
loan. The facility was completed in May 2002 㞫ඊᄤfɐࣵ Plaza 66, Shanghai Plaza 66 at Nan Jing Xi Lu had its grand and received very strong support from 15 opening in July 2001 and is practically fully- leading banks. The facility demonstrated the leased. Its ground level shopping facility strong credit rating of the Group and the features leading international brand names confidence of the banking community in the such as Cartier, Chanel and Louis Vuitton Group’s prudent management and financial and it is attracting high traffic flows of performance. customers, not only from Shanghai but also from nearby provinces. The 66-storey office The Group’s undrawn banking facilities tower above is fully leased and is occupied together with bank deposits as at 30 June primarily by multinational companies. Hang 2002 amounted to HK$8,538 million, which Lung Properties holds a 79% interest in comprised HK$3,146 million bank deposits, Plaza 66. HK$4,042 million committed facilities and 40 㞫ඊΔଐτࠉʔ̇ Hang Lung Properties Limited
ະ၀ुɾࠇمݯࡗɮ̙өע૯قɍɊˀc̯එ྆ɾႺϷ൘ಁᐢᔾϛʗɾ ̯එ྆ȹ ݯࡗܢ˳ֲ߬eαʑᐾፒΛඖ̔༝ݠ৽c כȹαʑᑹdϛʗɾʒɊ̒כʄ ɮʥԯࡼଟᐾፒ૯Γdଢ଼ʥᄤήԭˀڬȹϭ̒αʑᑹcϤϛʗɾɍɊȹ ϭȼαʑᑹe ༝cϤ̯එ྆ɾผ͛ᐾፒΛඖݠ৽c̒כ ᔢ́ވࣵݗʔ්ཽαജયผdၤಲਝܢ˳ ٴՇᚭޅႺ྆൘ಁd ͳᐾፒؿய̔ցΉᘏᑩd˞ʥܢ˳එ྆Ԛ͂ɾ൘ಁʿβ̯ ᙍଈˈᑩʥऋϳකऒeړ൘c˚߬ ɾௌੀڌց౨ࠥಁdࣺࢠኣʥ ಋྫྷݯ௰Ͻe೩൘ಁɣͫяઔ͂˞ α۹Ңࣂcࡗܧলכʶcڌτגඑ̯྆ זࣺࢠ့߮СࢠcԎ๑ࠗಋႺϷพ яҡڬࣂc̯එ྆ ɮඅ͢ྦྷʔ̇ʥԯძࠤᜮၤᅟๅๅ܌ࢠϤᔤցСࢠeੱؗ ઔ͂Сଅઌ౨ݯԯࣺࢠࠓ፮Аˮྦྷҿe ݯႏcϤྦྷ̯එ྆ɾพ৻ϭݯࠇ߬e ɀཌྷཌྷɀαʒ˂ɍɊˀc̯එ྆ϛʗכ 㞫ඊࡗɮ̔༝ݠ৽ ผஐͨم Hang Lung Staff Outing ɾɀɊࠥ൘Ƚ˞ցࢠྦྷҿe
ະֺ٘مݯࠇ഼ԯྦྷพ৻Δਂɾޅࡗ 㞫ඊ ሔʿβྡྷڈผஐͨcԎ˞ྡྷሔʥمɾֻ ྊdܢ˳ᆲܛc૪ၰɾʻܛඑ྆Ɋʗࠇ഼ֺτɮАϽɾࡗɮ ʀʻ̯ ʭαݠڇʥਿʶߎҁe㞫ඊΔଐ ઠөd৪ᙶଉd̢ԫᙶଉʥڰɾҌॶd෦ ਥ̯ɐ˞ʗᚫι̯ʿβԚ͂㞫ඊඑ྆ ৽೩e ༦˾ȹαcਿஐ㞫ඊכɾࡗɮ༅e ϊ೩ɮАcΐכᇃ㠥ଡٽඑ̯྆כͅ Δଐࠗಋพ৻ɾ㞫ඊඑ྆ࡗݯɄϛ α۹ിЅԯιࢽeಳϤc̯එܘ͂ɀϛȹ ϊಲؒڬȹɊɍɁcϤɐࣵඖ͌ Ԟั˂ᄈ̰כ˿ɊɍɁe ྆ଊ̳ೕࢄȹඖ೪c eܛʭαʥሱٞୂᓱɾʻڇඑ྆ྦྷ̯˱ ʭαొԜగพዀผcڇݯܢ˳ܛ༦˾ȹαc̯එ྆ɾɁɈ༅ࠇᒨȽ ϊඖʻכ າˀ׃αڇพۿ ʭαdሱٞʥӪΡʔ̵೩ࠤڇ৻ɾˋ ˞ʥྦྷၤרCareer Expo ˱ੜࡗɮɾɷॶʥొঢ়۪ʸ e̯එܛʻܧe̯එ྆ʵɃΛඖณফི߮c˞ႍ ᗐ؇ɾࠇᒨݠ৽ొԜল̡ Ɏα۹ɾαంʑc̯එכʶcڌτג྆ พʥӹဳଉɾذӰҌॶݯ˚e߲ஐ ࡗɮၤݯ֤೩ɮАֺϤஉɾྡྷ ྆˿ୀ߸ϊඖณ೪ֺՅɾྡྷሔʥྡྷ ߜႍᇾೡcϤ̯එ྆ҡݯ߲ஐӹ ऩιe͂ ဳଉɾࡗɮʵɃྡྷ͂ౝᇾೡeϊ כज़ౝᇾೡɾࡗɮٱc˾αၤ̔ αʑʠᚾɻज़ౝᇾೡeԯˢࡗɮ ΪͲԑඖcྵȿ㞫ඊכফᇾೡඑɻ พԚّ͂ɾΪͲֺАذΔଐྦྷԯࡗʥ ˮɾֻጻe ଊɾদሃʥʗ 41ٲဳଉᄙྦྷඑ྆ Management Discussion and Analysis of the Group’s Performance
HK$1,350 million demand facilities. The employees have worked on Hang Lung bowling competitions proved popular. So too ample financial resources available to the Properties business in Hong Kong. Another were special interest cookery classes. Group will provide adequate funding for the 213 people have been employed on our Group’s operational and capital expenditure Shanghai-based projects. We are confident that we have ended the requirements. financial year with a team of employees that Our human resources focus over the past are committed to the company and to the The Group’s bank borrowings are unsecured year has been to enhance competency values and standards that have become and it is the Group’s policy to lengthen its levels among staff and to improve levels of integral to our operations. debt maturity profile by refinancing its debts customer service. A number of new training with medium to long-term committed facility. programmes have been introduced, SOCIAL RESPONSIBILITY Of the total bank borrowings as at 30 June primarily focusing on language skills. 2002, 5% is repayable within one year, 64% Building management personnel and car At Hang Lung, we are serious about our is repayable between 1 to 4 years and 31% park attendants participated in practical social responsibility to the communities within is repayable between 4 to 7 years. English language courses that were created which we operate. This support is both to meet the demands of their respective tangible and visionary and covers a broad Borrowing methods used by the Group workplaces. A practical Putonghua course spectrum of fields from the environment and include syndicated loans, term loans, for car park attendants was also introduced. education through to health, child care and floating rate notes and revolving facilities Staff members who participated in a activities for young people. denominated mainly in Hong Kong dollars. beginners Putonghua course last year The interest rates for most of these advanced to an intermediate version of the Because we have adopted a long term borrowings are floating rate, fixed by course during the year. Other staff training outlook to our work in these areas, it is reference to the Hong Kong Interbank courses focused on safety issues, impossible to assess results on an annual Offered Rate. The Group employs interest reinforcing Hang Lung Properties’ basis. However, we are developing a rate swaps when appropriate to hedge its commitment to safety for both employees strategy that will increase our involvement in floating rate interest exposure. As at 30 June and the users of our properties. youth and neighbourhood groups over the 2002, 20% of the Group’s borrowings are coming years. This involvement will range hedged to fixed interest rates. We continue to recognise the importance of from developing career opportunities for nurturing a community spirit among staff young people through to financial support EMPLOYEES members. A number of “off-site” functions were of worthy causes that focus on youth, organised including a 2-day tour of Shenzhen, neighbourhoods and good citizenship We place a high level of value on the skills, Dongguan and Guangzhou for staff members issues. We are confident that in next year’s motivation and commitment of our staff and their families. Our Sports Association Annual Report we will be in a position to across all disciplines of work. Hang Lung prepared a wide ranging programme of events describe in detail concrete and tangible Properties primarily obtains its staff from including a night carnival at Ocean Park and results of this new strategy. Hang Lung Group on a cost reimbursement an orienteering competition, organised with basis. Over the past year, 813 Group Médecins Sans Frontières. Mahjong and