Annual Report
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Hongkong Land Holdings Limited
We inspire all to dream and to aspire to a better tomorrow
Front cover : Hongkong Land’s purpose is to inspire,
support, and empower the communities of today, so that
together we can aspire to a better tomorrow. Across the
markets we serve, we are committed to creating vibrant
environments through sustainable place-making. We also
actively contribute to fostering a more inclusive society,
supporting charitable initiatives across Asia through the
Hongkong Land HOME FUND.
Contents
Corporate Overview
2
Corporate Information
2
Highlights
3
Chairman’s Statement
4
Chief Executive’s Review 6
Financial Review
1
3
Sustainability
1
9
Directors’ Profiles
2
2
Financial Statements
2
4
Independent Auditor’s Report
7
6
Five Year Summary 8
2
Responsibility Statements 8
3
Corporate Governance 8
4
Shareholder Information
1
1
0
Offices
1
1
1
Report of the Valuers
1
1
3
Major Property Portfolio
1
1
4
Corporate Information
Hongkong Land Limited
is a major
listed property investment,
management and development group.
Founded in 1889, Hongkong Land’s
business is built on excellence,
integrity and partnership.
The Group owns and manages more
than 850,000 sq. m. of prime office
and luxury retail assets in key
Asian cities, principally Hong Kong,
Singapore, Beijing and Jakarta.
Its properties hold industry leading
green building certifications and
attract the world’s foremost
companies and luxury brands.
The Group’s Central Hong Kong
portfolio represents some
450,000 sq. m. of prime property.
It has a further 165,000 sq. m. of
prestigious office space in Singapore
mainly held through joint ventures,
five retail centres on the Chinese
mainland, including a luxury retail
centre at Wangfujing in Beijing,
and a 50% interest in a leading
office complex in Central Jakarta.
The Group also has a number of
high-quality residential, commercial
and mixed-use projects under
development in cities across China
and South East Asia, including a
43% interest in a 1.1 million sq. m.
mixed-use project in West Bund,
Shanghai. Its subsidiary, MCL Land,
is a well-established residential
developer in Singapore.
Hongkong Land Holdings Limited is
incorporated in Bermuda and has
a primary listing in the standard
segment of the London Stock
Exchange, with secondary listings in
Bermuda and Singapore. The Group’s
assets and investments are managed
from Hong Kong by Hongkong Land
Limited. Hongkong Land is a member
of the Jardine Matheson Group.
Directors
Ben Keswick Chairman
John Witt Managing Director
Robert Wong Chief Executive
(stepped down on 31st March 2024)
Michael Smith Chief Executive (Designate)
(joined the Board on 1st April 2024)
Craig Beattie Chief Financial Officer
Stuart Grant
(joined the Board on 3rd March 2023)
Lily Jencks
Adam Keswick
Lincoln K.K. Leong
Anthony Nightingale
(stepped down on 31st January 2024)
Christina Ong
Y.K. Pang
(stepped down on 31st March 2024)
Prijono Sugiarto
(stepped down on 18th May 2023)
Company Secretary
Jonathan Lloyd
Directors
John Witt Chairman
Robert Wong Chief Executive
(stepped down on 31st March 2024)
Michael Smith Chief Executive (Designate)
(joined the board on 1st April 2024)
Craig Beattie Chief Financial Officer
Graham Baker
Matthew Bland
Kenneth Foo
Robert L. Garman
Kong Kei Yeuk
Ling Chang Feng
Anne O’Riordan
Y.K. Pang
(stepped down on 31st March 2024)
John Simpkins
Yanjun Sun (Steve)
Raymond Wong
Yolice Wu
(joined the board on 1st April 2023)
Corporate Secretary
Jonathan Lloyd
2
• Underlying profit down 5% to US$734 million
• Improved results from Investment Properties
• Lower development profits on the Chinese mainland
• Group financial position remains strong
• Dividend maintained, final dividend at US¢16.00 per share
Results
2023 2022 Change
US$m US$m %
Underlying profit attributable to shareholders
*
734 776 (5)
(Loss)/profit attributable to shareholders (582) 203 N/A
Shareholders’ funds 31,965 33,303 (4)
Net debt 5,371 5,817 (8)
US¢ US¢
%
Underlying earnings per share
*
33.15 34.44 (4)
(Loss)/earnings per share (26.29) 8.99 N/A
Dividends per share 22.00 22.00 –
US$ US$ %
Net asset value per share 14.49 14.95 (3)
*
The Group uses ‘underlying profit attributable to shareholders’ in its internal financial reporting to distinguish between ongoing business
performance and non-trading items, as more fully described in Note 27 to the financial statements. Management considers this to be
a key measure which provides additional information to enhance understanding of the Group’s underlying business performance.
Highlights
3
Chairman’s Statement
Overview
The Group’s performance during the year was impacted
by lower profits from Development Properties, despite
improved results from Investment Properties compared
to 2022, as trading conditions in its key markets continue
to be impacted by economic uncertainties and subdued
capital market activity.
The Group remains focussed on addressing changes in
customer preferences and behaviours, as well as market
conditions, and is continuing to add to its suite of
digital services, introduce innovative concepts, deepen
collaborations with tenants, and reinvest in its core assets.
Performance
Underlying profit attributable to shareholders fell by 5%
to US$734 million.
Profits from the Group’s Investment Properties business
increased, mainly due to improved performance from its
luxury retail and Singapore office portfolios, offsetting
reduced contributions from the Hong Kong office portfolio.
Total contributions from Development Properties were
impacted by challenging market conditions on the Chinese
mainland, which led to lower sales and reduced profit
margins. In addition, the decision was taken to impair
a small number of residential projects, although this
was broadly offset by net gains from the acquisition of
two equity stakes in existing joint-venture projects for
considerations below development cost.
The loss attributable to shareholders was US$582 million,
after including net non-cash losses of US$1,317 million
arising primarily from the revaluation of the Group’s
Investment Properties portfolio. This compares to
a profit of US$203 million in 2022, which included net
non-cash losses of US$573 million from lower property
revaluations. In both years, the net negative revaluation
movements principally arose in Hong Kong, where there
was a gradual decrease in valuations of the Group’s prime
office portfolio.
The net asset value per share at 31st December 2023 was
US$14.49, compared with US$14.95 at the end of 2022.
The Directors recommend a final dividend of US¢16 per
share, resulting in a total dividend for the year of US¢22
per share, unchanged from last year.
Business Development
The Group has 5.2 million sq. m. of assets under
development, which include West Bund and nine luxury
and premium retail for lease assets on the Chinese
mainland. These retail assets are scheduled to complete
in stages, mainly between 2024 and 2028.
The Group continues to be disciplined in evaluating
and selecting strategic investment opportunities that
are expected to improve capital performance, while
maintaining a strong balance sheet position. In 2023,
US$1.3 billion was invested in new land and property
acquisitions across the Group.
During the year, two new acquisitions were made on the
Chinese mainland, in Chongqing and Beijing.
• The Chongqing site is adjacent to existing residential
and luxury retail projects that the Group has under
development in the Guanyinqiao area. The total
developable area of the site is approximately
301,000 sq. m. and will primarily consist of residential
for sale.
• In September, the Group secured a 20% interest in
the development of a mixed-use site in the western side
of Beijing, consisting of commercial and residential
components. The total developable area
of the site is approximately 199,000 sq. m.
In addition, the Group completed the acquisition of
equity stakes in two existing mixed-used projects in
Nanjing and Wuhan from joint-venture partners at
attractive valuations.
In Singapore, the Group acquired two residential sites
in the Outside Central Region of Singapore. These sites
will be developed in joint ventures with other developers.
The Group’s effective interest in these projects equates
to a developable area of 584,000 sq. ft.
In Jakarta, two acquisitions were made, increasing the
land bank of the Group’s 50% held joint-venture
residential development business.
Financing
The Group’s financial position remains strong, with net
debt of US$5.4 billion at 31st December 2023, down from
US$5.8 billion at the end of 2022. Net gearing at the end
of the year was 17%, unchanged from the end of 2022.
As at 31st December 2023, the Group had committed
liquidity of US$4.0 billion, with an average tenor of debt
of 6.3 years, compared to 5.8 years at the end of 2022.
4
Sustainability
The Group’s growth and progress on sustainability
initiatives continues to be underpinned by its Sustainability
Framework 2030, which addresses material topics that
are linked to measurable targets.
As part of the Group’s commitment to decarbonise its
operations in line with its 2030 near-term targets, which
were validated by the Science Based Targets initiative in
2022, several initiatives were delivered during the year.
These included:
• To reduce Scope 1 and 2 greenhouse gas emissions,
the Group continues to reinvest in and upgrade
its existing portfolios across the region, including
prioritising the deployment or enhancement of artificial
intelligence solutions to drive energy efficiency.
This includes the piloting of Integrated Facilities
Management Control Tower technology at the Hong
Kong Central Portfolio, which uses machine learning to
optimise thermal comfort and energy efficiency, as well
as to enable predictive operations and maintenance.
• To address Scope 3 emissions from tenants, the
Group launched the Tenant Sustainability Partnership
Programme for its Central Portfolio, to foster closer
collaboration with tenants on sustainability, focussing
in particular on providing support to tenants in
achieving green fit-outs and operations.
• The Group also took a significant step forward in
tackling its embodied carbon footprint from development
activities, by being one of the first property companies
in the region to build measurement tools bespoke
to its major construction supply chains. The Group
expects the integration of these tools across the design
and planning, procurement, and construction stages of
its development projects to drive emissions reductions
in the coming years.
The Group’s continued commitment and strong
performance on sustainability initiatives has been
recognised in a number of ESG ratings, especially
those involving in-depth assessments requiring active
participation. The Group was pleased to receive the
highest 5-star ratings from the Global Real Estate
Sustainability Benchmark (GRESB) under both the
Standing Investments and Development benchmarks
for 2023. In addition, the Group was named Global
Sector Leader (Diversified Sector) for the first time under
GRESB’s Development benchmark. Hongkong Land
also qualified, for the second consecutive year, as a
constituent of the Dow Jones Sustainability Asia Pacific
Index, as a result of its strong performance in the 2023
S&P Global Corporate Sustainability Assessment, and was
included in the S&P Global Sustainability Yearbook 2024
which recognises the top 15% of sector participants globally.
People
On behalf of the Board, I would like to express my gratitude
to our people, who continue to demonstrate unwavering
commitment despite challenging market conditions.
Robert Wong, who has been the Chief Executive of
Hongkong Land since 2016, will step down as Chief
Executive and as a Director of the Board on 31st March
2024. He will be succeeded by Michael Smith, previously
the Regional Chief Executive Officer of Europe and the US
at Mapletree Investments. We are grateful to Robert for
his leadership and significant contributions to the Group
over his close to four decades of service.
Prijono Sugiarto and Anthony Nightingale stepped
down from the Board in May 2023 and January 2024,
respectively. As previously announced, Yiu Kai Pang
will be stepping down from the Board, the Audit
Committee and Remuneration Committee in March 2024.
We would like to record our gratitude to all of them for
the contributions they have made over many years to the
Group. We were pleased to welcome Stuart Grant to the
Board as an Independent Non-Executive Director in March
2023. Stuart has also become a member of the Audit
Committee since June 2023 and, as a result, the Audit
Committee now comprises a majority of Independent
Non-Executive Directors.
Outlook
Market conditions in the Group’s core markets of Hong Kong
and Chinese mainland are expected to remain challenging
in 2024. While the resilience of our Investment Properties
business provides the Group with a solid base of recurring
earnings, trading performance of Hong Kong Central
portfolio is expected to be lower, due to negative office
rental reversions. An improvement in Development
Properties earnings is anticipated, however, based on
planned project completions on the Chinese mainland
and in South Asia. The Group remains in a strong
financial position, with a development pipeline of income
producing assets.
Ben Keswick
Chairman
7th March 2024
5
Hongkong Land delivered a respectable performance for
the year, despite economic uncertainties in a majority
of key markets, with underlying profits marginally lower
than those achieved in 2022. Contributions from the
Group’s Investment Properties were higher due to its
luxury retail portfolio benefitting from a steady recovery
of tenant sales and positive rental reversions for the
Singapore office portfolio. The contribution from
Development Properties decreased as expected due to
less favourable market conditions and the impairment of
residential inventory in some projects.
Strategy
Hongkong Land is a landlord and a developer operating
in China and South East Asia. The Group’s primary focus
is to develop, grow and hold for long-term investment,
a portfolio of prime commercial investment properties
across the region, while also developing premium
residential and commercial properties for sale on an
opportunistic basis to enhance shareholder returns.
The Group’s Investment Properties are predominantly
commercial and located in core business districts
of key Asian gateway cities, with a concentration in
Hong Kong and Singapore. Returns principally arise
from rental income and long-term capital appreciation.
The Investment Properties segment is the largest
contributor to the Group’s earnings, given its relative size
and maturity. It accounted for 82% of the Group’s gross
assets at the end of 2023 (2022: 83%) and contributed
78% of the Group’s underlying operating profit before
corporate expenses in 2023 (2022: 70%).
The Group’s Development Properties are predominantly
premium residential and mixed-use developments located
primarily in China, Singapore and Indonesia. Returns
principally arise from trading profits from the immediate
sale of the residential and office components; and rental
and trading profits for certain commercial elements
of mixed-use sites that are disposed of, or reclassified
as Investment Properties, after rents have stabilised.
Development Properties accounted for 18% of the Group’s
gross assets at the end of 2023 (2022: 17%) and 22% of
the Group’s underlying operating profit before corporate
expenses in 2023 (2022: 30%).
Geographically, China generates the bulk of the Group’s
earnings. Hong Kong, which predominantly comprises
Investment Properties, accounted for 61% of the Group’s
underlying operating profit before corporate expenses
in 2023 (2022: 57%), while the Chinese mainland,
which predominantly comprises Development Properties,
accounted for 16% (2022: 23%).
The Investment Properties portfolios in Hong Kong
and Singapore provide a stable stream of recurring
earnings and balance sheet strength that enables the
Group to selectively pursue new long-term investment
opportunities in key gateway cities across the region.
Earnings from the Development Properties business are
largely reinvested to replenish the Group’s land bank
where opportunities arise. The Group’s share of capital
allocated to new investments totalled US$1.3 billion in
2023 (2022: US$1.0 billion).
This strategy has resulted in a significant development
portfolio (summarised below) which will provide the
Group with enhanced earnings as construction works
complete in the coming few years.
Chief Executive’s Review
Central Portfolio office tenant profile
by area occupied
43% Banks and other financial services
32% Legal
2% Trading
8% Accounting
5% Property
10% Others
41% Banks and other financial services
31% Legal
6% Property
7% Accounting
1% Governments
2% Trading
12% Others
2
01
9
2
023
6
Other Investment Properties
Outside Hong Kong, the Group has similarly established
itself as a leading provider of prime office and retail
space. In Singapore, Hongkong Land’s attributable
interests totalling 165,000 sq. m. – principally
concentrated in the Marina Bay Area – include some of
the finest Grade A office space in the market. In China,
the Group’s 43,000 sq. m. WF CENTRAL complex in
Beijing is positioned as a premium retail and lifestyle
destination, which includes a Mandarin Oriental hotel that
has established itself as one of the most exclusive hotels
in the city. In Indonesia, the Group has attributable
interests of over 100,000 sq. m. of Grade A office space
through its 50%-owned joint venture, Jakarta Land.
The Group’s performance in these markets depends on
the levels of demand for, and supply of, prime office and
luxury retail space, both of which are influenced by global
and regional macroeconomic conditions. The Group is
committed to maintaining excellence in product quality
and service to retain and attract tenants and customers,
and it will continue to seek new opportunities to develop
prime investment properties in key Asian gateway cities.
HKL’s market leading occupancy levels within its
Investment Properties portfolios is testament to the
quality and attractiveness of its asset base.
Hong Kong Investment Properties
In Hong Kong, the Group’s Central Portfolio consists of
12 interconnected prime commercial buildings forming
the heart of the financial district in Central, providing over
450,000 sq. m. of Grade A office and luxury retail space.
This integrated mixed-use development is positioned as
the pre-eminent office, luxury retail, restaurant, and hotel
accommodation in Hong Kong. It continues to attract both
prime office tenants and luxury retailers, in addition to
housing the acclaimed Landmark Mandarin Oriental hotel.
Hong Kong’s position as one of Asia’s leading financial and
business hubs, combined with the scarcity of supply of
high-quality, well-managed space in Central and the
unique qualities of the Group’s portfolio, continue to
support relatively low vacancy and strong rents. Despite
ongoing challenging conditions, Hong Kong continues to
possess unique advantages as a financial centre that are
not easily replicated. The Group remains confident that
Hong Kong will continue to thrive as the primary gateway
for capital flows in and out of the Chinese mainland and
will remain an important finance and commercial hub for
decades to come.
The Group’s 56,000 sq. m. retail portfolio is integrated
with its office buildings to create part of its distinctive and
successful mixed-use business model. Tenants include
numerous global luxury brand flagship stores, as well as
a number of leading restaurants. LANDMARK is firmly
established as the iconic luxury shopping and fine dining
destination in Hong Kong. The Group works continuously
to ensure that LANDMARK remains the clear market-
leading location in the city in which global luxury brands
are represented.
Central Portfolio top five retail tenants
(in alphabetical order)
in 2023
Dickson Concepts
Hermes
Kering
LVMH Group
Sotheby’s
Central Portfolio top five office tenants
(in alphabetical order)
in 2023
JP Morgan
KPMG
Mayer Brown
PricewaterhouseCoopers
Stock Exchange of Hong Kong
7
Chief Executive’s Review
Development Properties
The Group has established a strong and profitable
Development Properties business focussed primarily
on the premium residential market segment in China,
Singapore and Indonesia. In China, the Group has
a presence in seven key markets: Beijing, Chengdu,
Chongqing, Hangzhou, Nanjing, Shanghai and Wuhan.
These markets are expected to continue to benefit from
the growth of the middle class and long-term urbanisation
trends on the Chinese mainland. While the capital
invested in the Development Properties business is
significantly lower than that invested in Investment
Properties, the earnings derived from this business
enhance the Group’s diversification, overall profits and
return on capital. The Group’s attributable interest in
the developable area of its projects at the end of 2023
totalled 11.2 million sq. m., compared to 10.7 million sq. m.
at the end of 2022. Of this, construction of approximately
59% had been completed at the end of 2023, compared
to 54% at the end of 2022.
Annual returns from Development Properties fluctuate
due to the nature of projects and the Group’s accounting
policy of recognising profits for sold properties on
completion in a number of markets, including China.
Demand is also dependent on overall economic
conditions, which can be significantly affected by
government policies and the availability of credit.
Review of Investment Properties
Profits from Investment Properties in 2023 were 3%
higher than the prior year, primarily due to higher
contributions from the Group’s luxury retail and
Singapore office portfolios, which more than offset
lower contributions from the Hong Kong office portfolio.
The value of the Group’s Investment Properties portfolio
at 31st December 2023 declined by 5%, mainly from
the Hong Kong office portfolio.
Hong Kong
Overall demand in the office market remained weak in
2023 as a result of subdued capital market activity, with
a modest level of new leasing enquiries. However, the
Group’s Central office portfolio continued to outperform
the broader market driven largely by flight to quality
demand. Physical vacancy was 7.4% at year-end. On a
committed basis, vacancy was 6.8%, compared to 4.7%
at the end of 2022. This compares to 9.9% in the wider
Central Grade A office market. The Group’s average
office rent in 2023 was HK$106 per sq. ft., down from last
year’s average of HK$111 per sq. ft., as rental reversions
remained negative during the year. Financial institutions
and legal and accounting firms occupy 83% of the Group’s
total leased office space. The weighted average lease
expiry of the office portfolio at the end of 2023 stood
at 3.8 years, compared to 4.0 years at the end of 2022.
Central Portfolio
at 31st December 2023
Office Retail*
Capital value (US$m) 20,911 3,847
Gross revenue (US$m) 708 249
Equivalent yield (%)
– One and Two Exchange Square 3.15
– The Landmark Atrium 4.50
Average unexpired term
of leases (years) 3.8 1.6
Area subject to renewal/review
in 2024 (%) 31 60
* Includes hotel
8
The Group’s luxury retail portfolio in Hong Kong benefitted
from a steady recovery in market sentiment following the
lifting of travel restrictions in late 2022. Average retail
rent in 2023 increased to HK$203 per sq. ft. from
HK$177 per sq. ft. due to mildly positive rental reversions
and temporary rent relief provided to support tenants
in the prior year. Vacancy, on both a physical and
committed basis, remained low at 1.5%.
In April 2023, the Group successfully debuted Forty-Five,
occupying the 44th floor and rooftop of Gloucester Tower.
Spanning 20,000 sq. ft., Forty-Five houses five restaurants
and bars. Forty-Five demonstrates the Group’s commitment
to deliver exceptional experiences to customers and to
cement Central’s status as an attractive destination for
affluent visitors.
In 2023, we were proud to celebrate the 50th anniversary
of Jardine House, the first skyscraper in Hong Kong and
an iconic part of the city’s skyline. Completed in 1973,
Jardine House quickly became the hub that attracted
influential business leaders and decision-makers as
tenants. Today, Jardine House exemplifies the Group’s
dedication to innovate and reinvest in existing assets,
as it remains one of the more sought after premium
Grade A office buildings in Hong Kong. In terms of
sustainability, Jardine House is amongst the best-in-class
in Hong Kong, retaining the highest possible green
building ratings: BEAM Plus Certification for Existing
Buildings – Platinum and ‘Super Low’ status
in energy performance certification issued via the
Zero-Carbon-Ready Building Certification Scheme
by the Hong Kong Green Building Council.
The value of the Group’s Investment Properties
portfolio in Hong Kong at 31st December 2023,
based on independent valuations, declined by 5% to
US$24.8 billion, primarily as a result of a decline in
market rent for Hong Kong office and a mild expansion
of capitalisation rates.
Singapore
Sentiment in the office leasing market in Singapore
moderated in 2023, due to global economic uncertainties
that have affected overall demand. Overall vacancy
across the entire Grade A central business district was
5.5% at the end of 2023, unchanged from the end of
2022. Physical vacancy at the Group’s office portfolio
was 1.9% at the year end, whilst on a committed basis
vacancy was 0.9% at the end of 2023, compared to 2.2%
at the end of 2022. Average rent increased to S$10.9 per
sq. ft. in 2023, up from S$10.6 per sq. ft. in the previous
year, driven by positive rental reversions. Financial
institutions and legal and accounting firms occupy 72%
of the Group’s total leased office space. The weighted
average lease expiry of the office portfolio at 2023
year-end stood at 3.1 years (2022: 3.4 years).
The valuation of the Investment Properties portfolio
in Singapore was stable year over year.
13.54
15.06
15.46
2023202220212020201920182017201620152014
13.14
13.03
13.26
13.82
14.39
15.04
14.18
Central Portfolio average office effective rent (US$/sq. ft. per month)
9
Chief Executive’s Review
Chinese Mainland
In Beijing, contributions from the Group’s luxury retail
mall at WF CENTRAL increased in 2023, driven by
a good recovery in footfall and tenant sales since
anti-pandemic restrictions were lifted.
Good progress has been made on the development of the
West Bund Financial Hub, the Group’s prime mixed-use
development in Shanghai. The first component of this
1.1 million sq. m. landmark development to be offered
will be the luxury residential component of the project,
which is expected to launch in 2024. Completion of other
components is expected to occur in phases from 2024
to 2027.
Other Investment Properties
Contributions from ONE CENTRAL Macau increased by
62% in the year, driven by strong leasing and positive
rental reversions. Physical occupancy was 95%,
compared to 84% at the end of the prior year.
In Jakarta, occupancy across the office portfolio was 67%
at the end of 2023, a solid performance amidst a backdrop
of surplus city-wide office supply. On a committed basis,
occupancy was 69% compared to 72% at the end of
2022. The average net rent was US$14.5 per sq. m. in
2023, compared to US$15.0 per sq. m. in the prior year.
In Bangkok, planning of the Group’s 49%-owned prime
commercial joint-venture development in the central
business district, secured in late 2017, is under review
in response to the changing market conditions, with a
greater amount of retail space to be created in response
to increased demand from luxury retail tenants. This
development has a gross floor area of approximately
312,000 sq. m.
Performance at the Group’s other investment properties
was within expectations.
Review of Development Properties
Earnings from the Group’s Development Properties
business were lower in 2023 than in 2022, due to
challenging market conditions on the Chinese mainland.
Following a review of development cost and market
sales prices, the decision was taken to recognise an
impairment of US$90 million on a small number of
residential projects, notably in two projects in Wuhan.
Chinese Mainland
The Group’s development properties on the Chinese
mainland comprise 37 projects in seven cities, of which
15 are in Chongqing. As at 31st December 2023, the
Group’s net investment in development properties on
the Chinese mainland was US$6.6 billion, compared to
US$6.5 billion at the end of 2022.
While the Development Properties business is
predominantly focussed on selling residential properties,
the Group is also developing luxury and premium lifestyle
retail properties on the Chinese mainland. It currently
has four such properties in operation, with a total
attributable net leasable area of 175,000 sq. m.
In addition, a further ten projects, with an estimated
attributable net leasable area of 358,000 sq. m. are
expected to be launched from 2024 to 2028. The Group’s
share of net investment in its luxury retail pipeline
amounts to US$1.4 billion, and its share of net investment
in its lifestyle retail pipeline amounts to US$1.0 billion.
The majority of these commitments had already been
funded at the point of land acquisition.
Set out below is a summary of the Group’s luxury and
premium lifestyle retail properties pipeline on the Chinese
mainland, by geographical location.
Luxury retail properties pipeline
Project City
Attributable net
leasable area
(sq. m.)
JL CENTRAL Nanjing 23,300
Eternal Land Chongqing 44,400
West Bund* Shanghai 56,600
Suzhou CENTRAL* Suzhou 38,100
* The West Bund luxury retail segment and Suzhou CENTRAL are
recognised under Investment Properties.
Premium lifestyle retail properties pipeline
Project City
Attributable net
leasable area
(sq. m.)
Galaxy Midtown Shanghai 8,800
WE City Chengdu 50,600
Yue City Nanjing 23,600
Central Avenue Chongqing 38,700
Hangzhou Bay Hangzhou 22,800
Dream Land Wuhan 53,400
10
The Group maintained its disciplined approach to
evaluating new development opportunities during 2023,
amidst uncertain market conditions. During the year,
the Group secured two new joint venture projects on the
Chinese mainland, one in Chongqing and the other in
Beijing. Both sites are mixed-used developments.
During the year, the Group acquired additional equity
stakes in two existing projects, in Nanjing (Yue City)
and Wuhan (Dream Land), at considerations below net
asset value. The projects are mixed-used in nature,
with residential and commercial components.
Despite uncertainties across the broader China property
market, pre-sales performance at the Group’s new
residential developments remained solid. The Group’s share
of total contracted sales in 2023 was US$1,530 million,
18% higher than the US$1,300 million achieved in the
prior year, due to the resilient demand for high-quality,
well-located residential space. The Group’s attributable
interest in revenue recognised in 2023, including its
share of revenue in joint ventures and associates, was
US$1,621 million, compared to US$1,873 million in 2022.
At 31st December 2023, the Group’s attributable interest
in sold but not yet recognised contracted sales amounted
to US$2,031 million, compared to US$2,087 million at the
end of 2022.
Set out below is a summary of the Group’s Development
Properties pipeline on the Chinese mainland, by
geographical location.
Development Properties pipeline
(Chinese mainland)
City
Number of
projects
Developable
area
*
(‘000 sq. m.)
Revenue from
property sales
*
(US$m)
% of
construction
completed
% of
Development
Properties
exposure
#
on the
Chinese
Mainland
2023 2022
Chongqing 15 5,045 510 1,113 80% 32%
Shanghai 5 396 144 59 45% 20%
Nanjing 4 472 291 100 53% 18%
Wuhan 4 888 122 56 57% 14%
Chengdu 5 1,211 550 27 85% 8%
Beijing 2 78 – – – 7%
Hangzhou 2 309 4 518 53% 1%
Total 37 8,399 1,621 1,873 74% 100
* Includes HKL’s share in joint ventures and associates
#
Exposure represents residual land cost plus committed
construction cost, less secured pre-sales proceeds
Singapore
Residential market sentiment remained healthy in 2023,
with solid sales performance at the Group’s existing
projects, including the 638-unit Leedon Green and
407-unit Piccadilly Grand and Galleria development, which
are both effectively sold out. During the year, the Group
launched sales for one project – 638-unit Tembusu Grand
– in which 59% was sold or reserved as at the end of
the year.
The Group’s attributable interest in contracted sales was
US$587 million in 2023, compared to US$615 million
in the prior year. The Group’s attributable interest
in revenue recognised in 2023 was US$443 million,
compared to US$379 million in the prior year.
At 31st December 2023, the Group’s attributable interest
in sold but not yet recognised contracted sales amounted
to US$736 million, compared to US$589 million at the end
of 2022.
During the year, the Group secured two residential
sites in Singapore, including a 51% interest in a site
on Clementi Avenue and a 50% interest in Pine Grove
Parcel B, both located in the Outside Central Region
of southwestern Singapore. Total developable area of
the two sites is approximately 1.1 million sq. ft. and is
expected to yield over 1,000 units.
Set out below is a summary of the Group’s Development
Properties pipeline in Singapore.
Development Properties pipeline (Singapore)
Project
Developable
area
*
(‘000 sq. m.)
Revenue from
property sales
*
(US$m)
Expected
completion
% of
Development
Properties
exposure
#
in South
East Asia
2023 2022
Leedon Green 27 273 190 Completed –
Piccadilly Grand
and Galleria
20 97 25 2025 –
Copen Grand 34 – – 2025 –
Tembusu Grand 29 73 – 2025 9%
Clementi Avenue 1
26 – – 2027 18%
Pine Grove
Parcel B
29 – – 2027 20%
* Includes HKL’s share in joint ventures and associates
#
Exposure represents residual land cost plus committed
construction cost, less secured pre-sales proceeds
11
Chief Executive’s Review
Indonesia and other Development Properties
In Indonesia, construction of the Group’s residential
projects is progressing well. Nava Park is the Group’s
49% joint venture comprising a mix of landed houses,
villas, mid-rise apartments and low-rise commercial
components. Of the 949 units which have been launched
for sale, 92% had been pre-sold as at the end of 2023.
In the rest of South East Asia, construction activities
continue to progress well, with pre-sales performance
in line with expectations.
Set out below is a summary of the Group’s Development
Properties pipeline in South East Asia, other than Singapore.
Development Properties pipeline
(South East Asia ex. Singapore)
Country
Number of
projects
Developable
area
*
(‘000 sq. m.)
Revenue from
property sales
*
(US$m)
% of
construction
completed
% of
Development
Properties
exposure
#
in South
East Asia
2023 2022
Indonesia 8 951 84 67 25% 33%
Thailand 3 215 29 22 16% 13%
Philippines 3 713 55 20 12% 6%
Vietnam 1 40 12 90 Completed 1%
* Includes HKL’s share in joint ventures and associates
#
Exposure represents residual land cost plus committed
construction cost, less secured pre-sales proceeds
The Year Ahead
Operating conditions across the Group’s key markets
are likely to remain uncertain in 2024, due to geopolitical
and macroeconomic headwinds. The Group’s Investment
Properties portfolio is expected to continue generating
stable returns, although contributions from Hong Kong
Central portfolio are expected to be lower due to negative
office rental reversions. In the Development Properties
business, higher contributions are expected, due to more
planned sales completions in the coming year.
We pride ourselves on delivering world-class services
and offerings to our tenants and customers, as well as
on maintaining a disciplined approach to evaluating
new opportunities. These values are fundamental to
our long-term success, as they enable us to withstand
the test of challenging market conditions and competition,
thus maintaining and strengthening our market positions.
I will retire from the position of Chief Executive on
31st March 2024 and I would like to thank colleagues,
partners, and investors for their support during my close
to 40 years’ service to Hongkong Land. While current
market conditions are challenging, the quality of the
Hongkong Land brand, its prime asset base and dedicated
people will ensure that the Group will continue to grow
and prosper.
Robert Wong
Chief Executive
7th March 2024
12
Financial Review
Results
Underlying business performance
2023 2022
US$m US$m
Investment Properties 984 951
Development Properties 273 404
Corporate costs (94) (89)
Underlying operating profit 1,163 1,266
Net financing charges (269) (228)
Tax (157) (261)
Non-controlling interests (3) (1)
Underlying profit attributable
to shareholders 734 776
Non-trading items (1,316) (573)
(Loss)/profit attributable
to shareholders (582) 203
US¢ US¢
Underlying earnings per share 33.15 34.44
Underlying business performance is summarised in the
above table, including the Group’s operating profit from
its associates and joint ventures. Given the significance
of the contribution from the Group’s joint ventures, this
provides a clearer summary of the Group’s performance
during the year.
The Group’s operating profit from Investment Properties
was US$984 million, 3% higher than the previous year,
primarily due to higher contributions from the Greater
China luxury retail portfolio and Singapore office, partially
offset by a decline in rental income in Hong Kong office.
The two largest operating profit contributors within
Investment Properties are the Hong Kong Central portfolio
(78%) and Singapore (13%).
In Hong Kong, Investment Properties operating profit was
US$770 million, 2% lower than 2022. Office average net
rent was down 5% compared to 2022 due to negative
rental reversions, at HK$106 psf per month. The impact
of this was partially offset by higher contributions from
the luxury retail portfolio at the LANDMARK where there
was a strong recovery in tenant sales following the
removal of government mandated Covid restrictions
that had impacted 2022 results.
In Singapore, there was a 11% increase in Investment
Properties operating profit in 2023, primarily due to an
increase in average rent. The portfolio also benefitted
from very low vacancy levels.
On the Chinese mainland and Macau, Investment Properties
operating profit more than doubled to US$61 million,
benefitting from a good recovery in tenant sales in 2023
and ongoing efforts to improve tenant quality.
Operating profits from Development Properties decreased
by 32% from the previous year to US$273 million, due
to a combination of fewer number of project completions
and lower profit margins. An impairment of US$90 million
(net of tax) was recognised on some residential assets
on the Chinese mainland, although this was broadly offset
by net gains on the acquisition of equity stakes in two
existing joint-venture projects for considerations below
development cost. The split of operating profits between
countries was 63% from the Chinese mainland, 17% from
Singapore, 12% from Indonesia and 8% from Others.
In respect of revenue recognised on the Chinese mainland,
there was a 6% reduction in the number of units handed
over to buyers in 2023 compared to the prior year. The
split by city was as follows:
City Number of units handed over
2023 2022
Chengdu 1,542 26% 118 2%
Chongqing 2,920 49% 4,240 67%
Hangzhou 16 0% 1,599 25%
Nanjing 433 7% 65 1%
Shanghai 223 4% 136 2%
Wuhan 827 14% 207 3%
Total 5,961 100% 6,365 100%
In Singapore, the Group’s attributable interest in
revenue recognised was US$443 million, compared to
US$379 million in 2022, with the increase reflecting the
different construction progress of projects year-on-year.
In other parts of South East Asia, operating profits from
Development Properties was relatively unchanged.
Net financing charges of US$269 million were
US$41 million higher than the prior year primarily due
to higher interest rates. Weighted average borrowing
costs were 3.9%, compared to 3.3% in the prior year
with the impact of rising interest rates mitigated by
having 62% of gross debt at fixed rates.
13
Financial Review
The Group’s tax charge decreased to US$157 million,
with an effective tax rate of 18%, lower than the prior
year 25% effective tax rate due to a smaller share of
profits coming from the Chinese mainland where tax
rates are higher than in Hong Kong.
Non-Trading Items
In 2023, the Group had net non-cash, non-trading losses
of US$1,316 million compared to US$573 million of losses
in 2022. These arose principally on revaluations of the
Group’s investment properties by independent valuers
(including its share of joint ventures) at 31st December
each year. The decrease in valuations in 2023 came
primarily from the Group’s Central portfolio in Hong Kong
due to a modest increase in capitalisation rates and lower
open market rents for office buildings. The Central portfolio
decreased in value by 5% in 2023. At 31st December 2023,
the value of the Central portfolio was US$24.8 billion.
Cash Flows
The Group’s consolidated cash flows are summarised as follows:
2023 2022
US$m US$m
Operating activities
Operating profit, excluding non-trading items 794 846
Net interest (205) (183)
Tax paid (287) (125)
Payments for Development Properties sites (1) (364)
Expenditure on Development Properties projects (465) (401)
Sales proceeds from Development Properties 990 1,071
Dividends received from joint ventures 135 222
Others (259) (208)
702 858
Investing activities
Major renovations capex (85) (95)
Repayments from associates and joint ventures 1,183 435
Investments in and advances to associates and joint ventures (836) (1,053)
Disposal/(acquisition) of subsidiaries and joint ventures 7 (14)
269 (727)
Financing activities
Dividends paid by the Company (486) (504)
Net (repayment)/drawdown of borrowings (448) 445
Shares repurchase (83) (352)
Others (4) (4)
(1,021) (415)
Net decrease in cash and cash equivalents (50) (284)
Cash and cash equivalents at 1st January 1,172 1,476
Effect of exchange rate changes (10) (20)
Cash and cash equivalents at 31st December 1,112 1,172
14
The Group’s Development Properties business comprises
a mixture of subsidiary projects (recorded within
operating activities) and joint-venture projects (recorded
within investing activities).
The net cash inflows from operating activities for the year
were US$702 million, compared with net cash inflows
of US$858 million in the prior year. The decrease of
US$156 million was principally due to less sales proceeds
from subsidiary-owned projects due to a lower number
of planned sales launches, less dividends received from
joint-ventures, as well as higher taxes paid, partially
offset by no land payments for new subsidiary-owned
Development Properties sites during 2023. Net outflows
in others relates primarily to net working capital changes.
Net cash inflows from investing activities were
US$269 million in 2023, compared to net cash outflows
of US$727 million in the prior year. Repayments in the
Group’s joint venture projects totalled US$1,183 million,
compared to US$435 million in the prior year. This
increase was primarily due to repayment of shareholder
loans from the Group’s joint-venture Investment
Properties assets in Singapore and Development
Properties in Chinese mainland. In 2023, the Group
invested US$836 million in land acquisitions with joint
venture partners, compared to US$1,053 million in the
prior year. Capital expenditure of US$85 million for major
renovations principally relates to the Group’s Central
portfolio in Hong Kong.
Under financing activities, the Company paid dividends
of US$486 million, being the 2022 final dividend of
US¢16.00 per share and the 2023 interim dividend of
US¢6.00 per share, unchanged compared to the prior
year. The Group also spent US$83 million in the purchase
of its own shares in 2023 and had a net repayment of
borrowings of US$448 million during the year.
Cash and cash equivalents were US$50 million lower
at the end of 2023. Taken together with a decrease in
borrowings, the Group’s net debt at 31st December 2023
decreased to US$5,371 million, from US$5,817 million
at the beginning of the year.
Year-end debt summary
*
2023 2022
US$m US$m
US$ notes 2,493 2,091
HK$ notes 1,371 1,515
HK$ bank loans 685 1,427
S$ notes 225 220
S$ bank loans – 391
CNY notes
#
187 –
RMB bank loans 1,271 1,009
THB bank loans 335 337
Gross debt 6,567 6,990
Cash 1,196 1,173
Net debt 5,371 5,817
* Before currency swaps
#
Chinese Yuan (Offshore)
15
Financial Review
Capital Management
The Group actively reviews and manages its capital
structure to ensure optimal shareholder returns through
a combination of profitability, cash flows, investing
activities and balance sheet strength. The Group’s
capital management policies are set out on page 72.
New Investments
During 2023, the Group committed to invest, based on
its equity contribution, and share of project level debt,
US$1.3 billion in new projects (2022: US$1.0 billion).
The Group continues to assess new investment
opportunities on a disciplined basis, which are expected
to be funded by a combination of internal resources
and external financing from banks and the debt
capital markets.
Capital Commitments
Outstanding capital commitments as of 31st December
2023 was US$814 million (2022: US$1,017 million),
including the Group’s contributions to associates and
joint venture companies of US$745 million (2022:
US$942 million). The largest commitments relate to
the Group’s 49% share of a joint-venture mixed use
project in Bangkok and various renovations and planned
upgrade works relating to the Group’s Central portfolio in
Hong Kong. During 2023, final land payments were made
for several residential projects on the Chinese mainland
committed in 2021 and 2022, resulting in lower capital
commitments at the end of 2023.
Share Buy-back
The Group concluded its share buyback program at the
end of 2023. The total amount invested in the buyback
program since it was first announced in September 2021
is US$627 million, reducing the number of total shares
outstanding by approximately 5.5%.
Dividends
The Board is recommending a final dividend of US¢16.00
per share for 2023, providing a total annual dividend of
US¢22.00 per share, the same as last year. The final
dividend will be payable on 15th May 2024, subject to
approval at the Annual General Meeting to be held on
8th May 2024, to shareholders on the register of members
at the close of business on 22nd March 2024. No scrip
alternative is being offered in respect of the dividend.
Treasury Policy
The Group manages its treasury activities within
established risk management objectives and policies
using a variety of techniques and instruments. The main
objectives are to manage exchange, interest rate and
liquidity risks and to provide a degree of certainty in
respect of costs. The investment of the Group’s cash
balances is managed so as to minimise risk while seeking
to enhance yield. Appropriate credit guidelines are in
place to manage counterparty credit risk.
When economically sensible to do so, borrowings are
taken in local currencies to hedge foreign currency
exposures on investments. A portion of borrowings is
denominated in fixed rates. Adequate committed facilities
headroom is maintained to facilitate the Group’s capacity
to pursue new investment opportunities and to provide
some protection against market uncertainties. Overall,
the Group’s funding arrangements are designed to strike
an appropriate balance between equity and debt from
banks and capital markets, both short and long term,
to give flexibility to develop the business.
The Group’s Treasury operations are managed as cost
centres and are not permitted to undertake speculative
transactions unrelated to underlying financial exposures.
16
Funding
The Group is well financed with strong liquidity. Net debt
at the end of the year decreased to US$5.4 billion from
US$5.8 billion in 2022. Net gearing was 17%, unchanged
from the end of 2022. Interest cover, calculated as the
underlying operating profits, including the Group’s share
of associates and joint ventures’ operating profits, divided
by net financing charges including the Group’s share of
associates and joint ventures’ net financing charges, was
4.3 times, compared to 5.5 times in 2022. The decrease
was mainly due to an increase in net financing costs due
to higher interest rate and a slight reduction in underlying
operating profit.
Net debt as a percentage of equity
2019 2020 2021 2022 2023
Net debt Equity
17%
17%
15%
9%
13%
Both Moody’s and Standard & Poor’s have maintained
their credit ratings of Hongkong Land Holdings Limited
at A3 and A respectively.
At 31 December 2023, the average tenor of the Group’s
debt was 6.3 years, up from 5.8 years at the end
of 2022. On average, approximately 62% of the Group’s
borrowings were either fixed rate borrowings or covered
by interest rate hedges with major credit worthy financial
institutions and the remaining 38% were at floating
rates. The majority of the Group’s debt is denominated
in Hong Kong dollars, of which 81% was at fixed rate.
The majority of the Group’s facilities due to mature in
the next 12 months have been refinanced in 2023 and
early 2024.
Debt profile at 31st December 2023
* After currency swaps
Interest
rate
Currency* Maturity
50% >5 years
15% 2-5 years
23% 1-2 years
12% <1 year
62% Fixed
38% Floating
70% HK$
22%
RMB & CNY
3% S$
5% THB
At 31st December 2023, the Group had total committed
lines of approximately US$9.4 billion with a diversified
range of maturity dates. Of these lines, 54% were
sourced from banks with the remaining 46% from the
capital markets. At the end of 2023, the Group had
drawn US$6.6 billion of these lines leaving US$2.8 billion
of committed, but unused, facilities. Adding the Group’s
year end cash balances, the Group had overall liquidity
at 31st December 2023 of US$4.0 billion, up from
US$3.1 billion at the end of 2022.
Committed facility maturity
at 31st December 2023 (US$m)
2028
& beyond
2027
2024 2025 2026
3,699
272
1,757
2,325
1,334
17
Financial Review
Gross Assets
The Group’s gross assets, including its share of joint
ventures, (excluding cash balances) is analysed below,
by activity and by location.
Principal Risks and Uncertainties
A review of the principal risks and uncertainties facing
the Group is set out on pages 105 to 109.
Accounting Policies
The Directors continue to review the appropriateness of
accounting policies adopted by the Group, including the
latest developments in International Financial Reporting
Standards (‘IFRS Accounting Standards’). In 2023, the
Group applied several amendments of IFRS Accounting
Standards. There are no material impacts to the financial
statements upon adoption.
Craig Beattie
Chief Financial Officer
7th March 2024
82% Investment Properties
18% Development Properties
66% Hong Kong
22% Chinese mainland and Macau
12% South East Asia
82% Investment Properties
18% Development Properties
66% Hong Kong
22% Chinese mainland and Macau
12% South East Asia
Gross assets by location
Gross assets by activity
18
Sustainability
Overview
Since its founding in 1889, Hongkong Land’s business has
been built on the principles of excellence, integrity and
partnership. As the global calls for climate action and
improvement of environmental, social and governance
(‘ESG’) performance become increasingly urgent,
Hongkong Land recognises that the real estate and
construction sectors have significant roles to play in
a global transition to a low carbon economy and is
committed to continue engaging and collaborating with
our stakeholders to advance sustainability agendas in
the communities it serves.
The Group’s continued growth and progress on delivering
positive outcomes for our business and stakeholders is
underpinned by its Sustainability Framework 2030 which
highlight key focus areas that are linked to measurable
targets. Putting this framework into practice requires the
Group to strive for continuous improvement and further
integration of ESG considerations into our operations
across the region.
ESG Disclosure
In line with the Task Force on Climate-related Financial
Disclosures (‘TCFD’) reporting requirements for standard
listed companies in the United Kingdom, the Group’s
climate-related disclosures in its Sustainability Report –
Framework 2030 & Climate Action are made available on
the same date as its Annual Report 2023.
To facilitate the holistic evaluation of its climate-related
activities, the Group publishes its TCFD disclosures
separately from its Annual Report but alongside
other information relevant to climate action including
sustainability governance, decarbonisation targets and
pathway, as well as results of climate risk assessments
and mitigation measures.
The climate-related disclosures are consistent with the
TCFD recommendations:
• governance – all recommended disclosures;
• strategy – all recommended disclosures;
• risk management – all recommended disclosures; and
• metrics and targets – disclosure (c).
Requirements under metrics and targets – disclosures (a)
and (b) will be addressed in the Sustainability Performance
Report 2023, which will be published on the Group’s
website in the second quarter of 2024. The report
will present relevant environmental and social-related
performance data covering the financial year ended
31st December 2023.
Further details on the Group’s approach to sustainability
and related policies can also be found on the Group’s
website at www.hkland.com/en/sustainability.
Highlights in 2023
Decarbonisation
As part of Hongkong Land’s commitment to accelerate its
contributions on climate action, the Group announced in
February 2022 its pledge to setting Science-Based Targets
that are aligned with the 1.5°C pathway. We are leading
the net zero transition by setting ambitious emission
reduction targets. The targets, which were validated
by the Science-Based Target initiative in June 2022, has
resulted in the Group committing to a 46.2% reduction
of Scope 1 and 2 greenhouse gas (‘GHG’) emissions by
2030 from 2019 levels and a 22% reduction in carbon
intensity for Scope 3 emissions over the same period.
19
Sustainability
To reduce Scope 1 and 2 GHG emissions, the Group
continues to reinvest in and upgrade its operating
portfolios across the region by prioritising fixed asset
replacements, as well as the deployment or enhancement
of artificial intelligence solutions to drive energy
efficiency. This includes the piloting of Integrated
Facilities Management Control Tower technology at the
Hong Kong Central Portfolio which uses machine learning
to optimise thermal comfort and energy efficiency, as well
as to enable predictive operations and maintenance.
To address Scope 3 emissions from tenants, the Group
launched the Tenant Sustainability Partnership Programme
at its Central Portfolio to foster closer collaboration with
tenants, focussing in particular on providing support to
our tenants in achieving green fit-outs and operations.
In addition to recognising efforts made by participating
tenants, those who meet all relevant requirements across
environmental and social initiatives would also receive
modest contributions from the Group towards their
sustainability journeys – obtaining BEAM Plus Interiors
or equivalent certifications for their green fit-outs and
a matching gift programme for charitable causes.
During the year, Hongkong Land also took a significant
step forward in tackling its embodied carbon footprint
(emissions arising from building materials and construction)
from development activities. The Group built and began
trialling embodied carbon measurement tools bespoke
to its key construction supply chains across the region.
These tools adopt a supplier-based approach in estimating
emissions based on the types of building materials and
relevant amounts procured for a specific project. In
addition to providing more granular estimates compared
to the commonly adopted spend-based approach to Scope
3 emissions, this approach also holds significant potential
in helping the Group identify opportunities in the coming
years to decarbonise the key stages of its development
value chain, such as design and planning, procurement,
and construction.
Green Buildings
Hongkong Land has a long history of reinvesting in existing
assets and undertaking a robust green building certification
programme. At the end of 2023, 94% of our leasing
portfolio by floor area, including those held in joint ventures,
achieved green building certification, up from 88% at the
end of the prior year. All of our buildings in Hong Kong and
Singapore, comprising over half of our leasing portfolio,
retained the highest possible ratings of BEAM Plus Platinum
and Green Mark Platinum certifications respectively.
During the year, the Group became one of the pilot
participants to the Zero-Carbon Ready Building Certification
Scheme, which assesses a building’s energy use intensity,
launched by the Hong Kong Green Building Council. All
12 buildings of the Hong Kong Central Portfolio achieved
energy performance certification, with half of these
buildings achieving the coveted ‘Super Low Energy’
as the second highest rating.
In recognition of our efforts to adhere to the highest
standards for property management, the Group received
the Environmental Stewardship Award at the International
Facility Management Association Asia Pacific Awards of
Excellence. The Group’s Exchange Square complex in
Hong Kong also received a number of accodlates from
The Hong Kong Institution of Engineers, including the
Excellence Building Award (Existing Building), the
Excellent Leadership Award, the Artificial Intelligence
Application Award (Existing Building), and the Innovation
Award (Existing Building).
Corporate Social Responsibility
The Hongkong Land HOME FUND, which was established to
focus on creating initiatives benefitting younger generations
and our aspiration to foster a more inclusive society,
celebrated its third anniversary in November 2023. Since
its inception, the fund has committed close to US$14 million
which benefitted over 319,000 people across the region.
20
Key milestones achieved during the past year include
committing US$2.2 million in new projects focussed on
youth; increasing the number of NGO partnerships by
over 100 across the region; the continued growth of the
HERE2HELP volunteering team which contributed over
17,000 hours to serve more than 73,000 people; 107
tenants supported HOME FUND’s initiatives in 2023;
and collaborating with Hongkong Land Central Portfolio
tenants and business partners to launch the first
Christmas Trees of Hope initiative which raised over
US$180,000 for charities in Hong Kong.
During the year, the Group also received a number of
prestigious awards in recognition of its efforts in making
positive impact on the community. For its collaboration
with social enterprises, the Group received a number of
accolades including the Inclusive Enterprise Gold Award
from the Dreams Come True Foundation and the Social
Enterprise Supporter Award from the Fullness Social
Enterprises Society Limited. The Group was also proud
to receive the Top 10 Highest Volunteer Hours Award
(employee size 101-999) and Corporate Bronze Award
at the Hong Kong Volunteer Award 2023.
Green Finance
In July 2023, the Group published its latest green finance
report to provide stakeholders updates on its green
financing transactions in accordance with its Green
Financing Framework. The report outlined the use of
proceeds for the Group’s green bonds, as well as green
elements of the relevant projects financed.
The Group had sustainability-linked loans with an
aggregate facility amount of US$2.2 billion at the end of
2023, unchanged from the prior year. The facilities index
against ESG targets for continuous improvements in
energy efficiency, reducing food waste, and renewable
energy generation, while maintaining green building
certifications for the Group’s Central Portfolio.
ESG Ratings
Over the past year, the Group continued delivering
improvements on ESG ratings, especially on in-depth
assessments which require active participation
by companies.
The Group’s latest ESG ratings as at 31st December 2023
are listed below.
• Global Real Estate Sustainability Benchmarks (‘GRESB’) –
the highest 5-star ratings for Standing Investments and
Development which recognises entities placed in the top
20% of the two benchmarks; the Group was also proud
to be named Global Sector Leader (Diversified Sector)
for the first time under the Development benchmark.
• Dow Jones Sustainability Indices (‘DJSI’) – a score of
71/100 and qualified, for the second consecutive year,
as a constituent of the Dow Jones Sustainability Asia
Pacific Index and was included in the S&P Global
Sustainability Yearbook which recognises the top 15%
of sector participants globally.
• Sustainalytics – a Company ESG Rating of 17.6, Low
Risk (on a scale of severity 0-40+), improving from
20.4, Medium Risk in the prior year.
• Climate Disclosure Project (‘CDP’) – a Climate Change
score of ‘B’.
21
Ben Keswick Chairman
Ben Keswick joined the Board as Managing Director
in April 2012 and held the position until June 2020.
He has been Chairman since 2013. He was also
managing director of Jardine Matheson from 2012 to
2020. He has held a number of executive positions since
joining the Jardine Matheson group in 1998, including
finance director and then chief executive officer of Jardine
Pacific between 2003 and 2007, and group managing
director of Jardine Cycle & Carriage until March 2012.
He is executive chairman of Jardine Matheson and
chairman of DFI Retail Group and Mandarin Oriental.
He is also chairman of Jardine Cycle & Carriage and
a commissioner of Astra. He has an MBA from INSEAD.
John Witt
*
Managing Director
John Witt rejoined the Board as Managing Director
in June 2020, having previously served as the Chief
Financial Officer between 2010 and 2016. He has been
with the Jardine Matheson group since 1993 and has held
a number of senior positions, including group finance
director of Jardine Matheson from 2016 to 2020 and the
chief financial officer of Mandarin Oriental Hotel Group.
John is chairman of Jardine Matheson Limited, group
managing director of Jardine Matheson and managing
director of DFI Retail Group and Mandarin Oriental.
He is also a director of Jardine Pacific, as well as a
commissioner and chairman of the executive committee
of Astra. John is a Chartered Accountant and has an
MBA from INSEAD.
Robert Wong
*
Chief Executive
Robert Wong joined the Board as Chief Executive
in 2016. He joined the Group in 1985 and has extensive
experience in property management and development.
As a director of Hongkong Land Limited since 1996,
he had prime responsibility for the Group’s residential
property business. He is a member of both The Royal
Institution of Chartered Surveyors and The Hong Kong
Institute of Surveyors. Robert will be retiring from the
Board on 31st March 2024.
Craig Beattie
*
Chief Financial Officer
Craig Beattie joined the Board as Chief Financial Officer
in 2021. He has previously held a number of senior
finance positions in the Jardine Matheson group since
joining from EY in the UK in 2006, including the chief
financial officer of Mandarin Oriental from 2018 to 2021
and group treasurer of Jardine Matheson from 2016 to
2018. He is a Chartered Accountant.
Stuart Grant
Stuart Grant joined the Board in March 2023. He is a
member of the Audit Committee of the Company. He is
the CEO of ARC Group, a co-founder of CoreLife Investors
and an adviser to Brookfield’s Real Estate Group, and
has more than 25 years of real estate experience. Stuart
started his real estate investment career at Blackstone
in London in 2000 and held a variety of senior executive
positions, including as a senior managing director and a
member of the global investment committee. He played
a key role in building Blackstone’s real estate business
in the Asia-Pacific region. Stuart returned to the United
Kingdom in 2018 as a managing director of Stanhope Plc,
one of London’s leading property developers. Stuart holds
a Master of Real Estate Finance and Investment from the
New York University and a Bachelor of Science Degree
from the University of St Andrews.
* Executive Director
Directors’ Profiles
22
Lily Jencks
Lily Jencks joined the Board in July 2022. She is an
architectural and landscape designer, with a master’s
degree from the University of Pennsylvania. She ran
the design company JencksSquared and architectural
and landscape practice Lily Jencks Studio. She is currently
the founder and director of the Jencks Foundation.
Adam Keswick
Adam Keswick joined the Board in 2012. Having joined
Jardine Matheson in 2001, he was appointed to the
Jardine Matheson board in 2007 and was deputy managing
director from 2012 to 2016. Adam is a director of DFI
Retail Group and Mandarin Oriental. He is also a director
of Ferrari NV, Schindler and Yabuli China Entrepreneurs
Forum and vice chairman of the supervisory board of
Rothschild & Co.
Lincoln K.K. Leong
Lincoln K.K. Leong joined the Board in March 2022.
He is the Chairman of the Audit Committee of the
Company. Lincoln is an independent non-executive
director of SUNeVision Holdings Ltd., Standard Chartered
Bank (Hong Kong) Limited and China Resources Land
Limited. He was previously the chief executive officer
of MTR Corporation Limited, a non-executive director of
Jardine Strategic Holdings Limited and Mandarin Oriental
International Limited, and an independent non-executive
director of Link Asset Management Limited, as Manager
of Link Real Estate Investment Trust. Lincoln is a
Chartered Accountant and has extensive experience
in the accountancy and investment banking industries.
Christina Ong
Christina Ong joined the Board in 2018. She is chairman
and senior partner of Allen & Gledhill as well as co-head
of its financial services department. She is a director
of Oversea-Chinese Banking Corporation and Singapore
Telecommunications. She is also an independent
non-executive director of Philanthropy Asia Alliance,
a member of the Catalist Advisory Panel, Civil Aviation
Authority of Singapore and the corporate governance
advisory committee of the Monetary Authority of
Singapore, and a trustee of The Stephen A. Schwarzman
Scholars Trust.
Y.K. Pang
Y.K. Pang has been a Director of the Company since
2007. He is a member of the Audit Committee of the
Company. He was Chief Executive of the Group from
2007 to 2016. He is deputy managing director and
chairman of Hong Kong of Jardine Matheson, and
chairman of Jardine Pacific. He has held a number of
senior executive positions in the Jardine Matheson group,
which he joined in 1984. Y.K. is also deputy chairman
of Jardine Matheson Limited, and a director of Gammon,
Jardine Matheson (China) and Mandarin Oriental.
He is chairman of the Hong Kong Tourism Board and
the Hong Kong Management Association, and a member
of the Council and General Committee of the Hong Kong
General Chamber of Commerce and the Employers’
Federation of Hong Kong. Y.K. will be retiring from
the Board and Audit Committee of the Company on
31st March 2024.
23
| Consolidated Profit and Loss Account | |||||||
| for the year ended 31st December 2023 | |||||||
2023 | 2022 | ||||||
| Underlying | Non- | Underlying | Non- | ||||
| business | trading | business | trading | ||||
| performance | items | Total | performance | items | Total | ||
Note | US$m | US$m | US$m | US$m | US$m | US$m | |
Revenue | 3 | ||||||
Net operating costs | 4 | ( ) | ( ) | ( | ( | ||
Change in fair value of investment properties | 9 | ( ) | ( ) | ( | ( | ||
Operating (loss)/profit | ( | ( | ( | ||||
Net financing charges | 5 | ||||||
– financing charges | ( | ( | ( | ( | |||
– financing income | |||||||
( | ( | ( | ( | ||||
Share of results of associates and joint ventures | 6 | ||||||
– before change in fair value of investment properties | |||||||
– change in fair value of investment properties | 9 | ( | ( | ||||
( | |||||||
(Loss)/profit before tax | ( ) | ( | ( | ||||
Tax | 7 | ( | ( | ( | ( | ( | |
(Loss)/profit after tax | ( ) | ( | ( | ||||
| Attributable to: | |||||||
Shareholders of the Company | ( ) | ( | ( | ||||
Non-controlling interests | ( | ( | ( | ||||
( ) | ( | ( | |||||
US¢ | US¢ | US¢ | US¢ | ||||
(Loss)/earnings per share (basic and diluted) | 8 | ( |
24
| Consolidated Statement of Comprehensive Income | |||
| for the year ended 31st December 2023 | |||
2023 | 2022 | ||
Note | US$m | US$m | |
(Loss)/profit for the year | ( | ||
| Other comprehensive income/(expense) | |||
| Items that will not be reclassified to profit or loss: | |||
Remeasurements of defined benefit plans | ( | ||
Tax on items that will not be reclassified | 7 | ( | |
( | |||
| Items that may be reclassified subsequently to profit or loss: | |||
| Net exchange translation differences | |||
– net loss arising during the year | ( | ( | |
– transfer to profit and loss | |||
( | ( | ||
| Cash flow hedges | |||
– net (loss)/gain arising during the year | ( | ||
– transfer to profit and loss | ( | ( | |
( | |||
Tax relating to items that may be reclassified | 7 | ||
| Share of other comprehensive expense of associates | |||
and joint ventures | 11 | ( | ( |
( | ( | ||
Other comprehensive expense for the year, net of tax | ( | ( | |
Total comprehensive expense for the year | ( | ( | |
| Attributable to: | |||
Shareholders of the Company | ( | ( | |
Non-controlling interests | ( | ||
( | ( |
25
| Consolidated Balance Sheet | |||
| at 31st December 2023 | |||
2023 | 2022 | ||
Note | US$m | US$m | |
| Net operating assets | |||
Fixed assets | |||
Right-of-use assets | |||
Investment properties | 10 | ||
Associates and joint ventures | 11 | ||
Non-current debtors | 12 | ||
Deferred tax assets | 13 | ||
Pension assets | |||
Non-current assets | |||
Properties for sale | 14 | ||
Current debtors | 12 | ||
Current tax assets | |||
Bank balances | 15 | ||
Current assets | |||
Current creditors | 16 | ( | ( |
Current borrowings | 17 | ( | ( |
Current tax liabilities | ( | ( | |
Current liabilities | ( | ( | |
Net current assets | |||
Long-term borrowings | 17 | ( | ( |
Deferred tax liabilities | 13 | ( | ( |
Pension liabilities | ( | ( | |
Non-current creditors | 16 | ( | ( |
| Total equity | |||
Share capital | 18 | ||
Revenue and other reserves | |||
Shareholders’ funds | |||
Non-controlling interests | |||
Approved by the Board of Directors
Robert Wong
Craig Beattie
Directors
7th March 2024
26
| Consolidated Statement of Changes in Equity | |||||||||
| for the year ended 31st December 2023 | |||||||||
| Attributable to | Attributable | ||||||||
| shareholders | to non- | ||||||||
| Share | Share | Revenue | Hedging | Exchange | of the | controlling | Total | ||
| capital | premium | reserves | reserves | reserves | Company | interests | equity | ||
Note | US$m | US$m | US$m | US$m | US$m | US$m | US$m | US$m | |
| 2023 | |||||||||
At 1st January | ( | ( | |||||||
| Total comprehensive | |||||||||
expense | ( | ( | ( | ( | ( | ||||
Dividends paid by the Company | 19 | ( | ( | ( | |||||
Dividends paid to non-controlling | |||||||||
shareholders | ( | ( | |||||||
Unclaimed dividends forfeited | |||||||||
Repurchase of shares | ( | ( | ( | ( | |||||
Disposal of subsidiaries | ( | ( | |||||||
At 31st December | ( | ( | |||||||
| 2022 | |||||||||
At 1st January | ( | ||||||||
| Total comprehensive | |||||||||
expense | ( | ( | ( | ( | |||||
Dividends paid by the Company | 19 | ( | ( | ( | |||||
Dividends paid to non-controlling | |||||||||
shareholders | ( | ( | |||||||
Unclaimed dividends forfeited | |||||||||
Repurchase of shares | ( | ( | ( | ( | ( | ||||
At 31st December | ( | ( |
27
| Consolidated Cash Flow Statement | |||
| for the year ended 31st December 2023 | |||
2023 | 2022 | ||
Note | US$m | US$m | |
| Operating activities | |||
Operating (loss)/profit | ( | ||
Depreciation | 4 | ||
Change in fair value of investment properties | 10 | ||
Loss on disposal of fixed assets | 4 | ||
Gain on acquisition of subsidiaries | 4 | ( | ( |
Net gain on disposal of subsidiaries and joint ventures | 4 | ( | |
Decrease in properties for sale | |||
Decrease in debtors | |||
Increase/(decrease) in creditors | ( | ||
Interest received | |||
Interest and other financing charges paid | ( | ( | |
Tax paid | ( | ( | |
Dividends from associates and joint ventures | |||
Cash flows from operating activities | |||
| Investing activities | |||
Major renovations expenditure | ( | ( | |
Repayments from associates and joint ventures | 20 (a) | ||
Investments in associates and joint ventures | 20 (a) | ( | ( |
Advances to associates and joint ventures | 20 (a) | ( | ( |
Disposal of subsidiaries | |||
Disposal of joint ventures | |||
Acquisition of subsidiaries | ( | ( | |
Cash flows from investing activities | ( | ||
| Financing activities | |||
Drawdown of borrowings | 17 | ||
Repayment of borrowings | 17 | ( | ( |
Principal elements of lease payments | ( | ( | |
Repurchase of shares | ( | ( | |
Dividends paid by the Company | ( | ( | |
Dividends paid to non-controlling shareholders | ( | ( | |
Cash flows from financing activities | ( | ( | |
Net cash outflow | ( | ( | |
Cash and cash equivalents at 1st January | |||
Effect of exchange rate changes | ( | ( | |
Cash and cash equivalents at 31st December | 20 (b) |
28
Notes to the Financial Statements
29
Notes to the Financial Statements
30
31
Notes to the Financial Statements
32
33
Notes to the Financial Statements
34
6 Share of Results of Associates and Joint Ventures
2023 2022
US$m US$m
By business
Investment Properties 82.5 72.3
Development Properties 152.2 157.0
Underlying business performance 234.7 229.3
Non-trading items:
Change in fair value of investment properties 18.0 (24.5)
252.7 204.8
Results are shown after tax and non-controlling interests in the associates and joint ventures.
The Group’s share of revenue of associates and joint ventures was US$1,747.7 million (2022: US$1,502.9 million).
35
Notes to the Financial Statements
36
37
Notes to the Financial Statements
38
39
Notes to the Financial Statements
40
41
Notes to the Financial Statements
42
43
Notes to the Financial Statements
44
45
Notes to the Financial Statements
46
47
Notes to the Financial Statements
48
49
Notes to the Financial Statements
50
51
Notes to the Financial Statements
52
53
Notes to the Financial Statements
54
25 Summarised Balance Sheet of the Company
Included below is certain summarised balance sheet information of the Company disclosed in accordance with Bermuda law.
2023 2022
US$m US$m
Net operating assets
Investments at cost
Unlisted shares in subsidiaries 4,481.7 4,481.7
Amounts due from subsidiaries 2,615.6 2,462.2
7,097.3 6,943.9
Creditors and other accruals (32.5) (31.1)
7,064.8 6,912.8
Total equity
Share capital (see Note 18) 220.7 222.7
Revenue and other reserves
Contributed surplus 1,892.1 1,973.3
Revenue reserves 4,952.0 4,716.8
6,844.1 6,690.1
Shareholders’ funds 7,064.8 6,912.8
Subsidiaries are shown at cost less amounts provided.
The contributed surplus was set up on the formation of the Company in 1989 and, under the Bye-laws of the Company, is distributable.
55
Notes to the Financial Statements
56
26 Principal Subsidiaries, Associates and Joint Ventures continued
57
Notes to the Financial Statements
26 Principal Subsidiaries, Associates and Joint Ventures continued
58
Attributable
interest
Issued share capital Main activities
Place of
incorporation
2023 2022
% %
26 Principal Subsidiaries, Associates and Joint Ventures continued
59
Notes to the Financial Statements
Attributable
interest
Issued share capital Main activities
Place of
incorporation
2023 2022
% %
26 Principal Subsidiaries, Associates and Joint Ventures continued
60
61
Notes to the Financial Statements
62
27 Material Accounting Policies continued
63
Notes to the Financial Statements
27 Material Accounting Policies continued
64
27 Material Accounting Policies continued
65
Notes to the Financial Statements
27 Material Accounting Policies continued
66
67
Notes to the Financial Statements
68
69
Notes to the Financial Statements
70
71
Notes to the Financial Statements
72
73
Notes to the Financial Statements
74
75
To the Members of Hongkong Land Holdings Limited
(incorporated in Bermuda with limited liability)
Report on the Audit of the Consolidated Financial Statements
Opinion
What we have audited
The consolidated financial statements of Hongkong Land Holdings Limited (the ‘Company’) and its subsidiaries (the ‘Group’), included
within the Annual Report, which comprise:
• the Consolidated Balance Sheet at 31st December 2023;
• the Consolidated Profit and Loss Account for the year then ended;
• the Consolidated Statement of Comprehensive Income for the year then ended;
• the Consolidated Statement of Changes in Equity for the year then ended;
• the Consolidated Cash Flow Statement for the year then ended; and
• the Notes to the Financial Statements, comprising material accounting policy information and other explanatory information.
Certain required disclosures have been presented elsewhere in the Annual Report, rather than in the notes to the consolidated financial
statements. These disclosures are cross-referenced from the consolidated financial statements and are identified as audited.
Our opinion
In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position of the Group as at
31st December 2023, and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance
with IFRS Accounting Standards as issued by the International Accounting Standards Board (‘IASB’).
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (‘ISAs’). Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with the International Code of Ethics for Professional Accountants (including International
Independence Standards) issued by the International Ethics Standards Board for Accountants (‘IESBA Code’), and we have fulfilled our
other ethical responsibilities in accordance with the IESBA Code.
Our Audit Approach
Overview
Materiality
• Overall Group materiality: US$319 million, based on 1% of the net assets.
• Specific Group materiality, applied to balances and transactions not related to investment properties: US$42 million, based on 5% of
consolidated underlying profit before tax of the Group.
Audit scope
• Full scope audits were performed on fifteen subsidiaries. These subsidiaries, together with procedures performed on centralised
functions and at the Group level, accounted for 83% of the Group’s revenue, 77% of the Group’s loss before tax, 73% of the Group’s
underlying profit before tax and 80% of the Group’s net assets.
• Full scope audits of nine joint ventures were also performed, which accounted for a further 7% of the Group’s loss before tax,
9% of the Group’s underlying profit before tax and 10% of the Group’s net assets.
Independent Auditor’s Report
76
Our Audit Approach continued
Overview continued
Key audit matter identified in our audit is summarised as follows:
• Valuation of investment properties
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the consolidated financial
statements. In particular, we considered where the Directors made subjective judgements; for example, in respect of significant
accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of
our audits, we also addressed the risk of management override of internal controls, including among other matters, consideration
of whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether
the consolidated financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are
considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of the consolidated financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group
materiality for the consolidated financial statements as a whole as set out in the table below. These, together with qualitative
considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to
evaluate the effect of misstatements, both individually and in aggregate on the consolidated financial statements as a whole.
Overall group materiality US$319 million
How we determined it 1% of net assets of the Group
Rationale for the materiality
benchmark applied
Net assets is a primary measure used by the shareholders in assessing the performance of
the Group, together with consolidated underlying profit before tax, which we have used as
the basis for our specific materiality as detailed below.
We set a specific materiality level of US$42 million, which was applied to balances and transactions not related to investment properties.
This was based upon 5% of the Group’s consolidated underlying profit before tax for the year ended 31st December 2023. In arriving
at this judgement, we had regard to the fact that underlying profit is one of the primary financial indicators of the Group.
For each component in the scope of our Group audit, we allocated a materiality that is less than our overall Group materiality.
We agreed with the Audit Committee that we would report to them misstatements identified during our audit in respect of the
investment property related items above US$12 million as well as misstatements below this amount that in our view, warranted
reporting for qualitative reasons. For all other account balances and transaction, we agreed with the Audit Committee that we would
report to them misstatements identified during our audit above US$2.1 million as well as misstatements below this amount that in
our view, warranted reporting for qualitative reasons.
77
Independent Auditor’s Report
Key Audit Matter
Valuation of investment properties
Refer to Note 30 (Critical Accounting Estimates and Judgements)
and Note 10 (Investment Properties) to the consolidated
financial statements.
The fair value of the Group’s investment properties amounted to
US$26,687.2 million at 31st December 2023, with a revaluation
loss of US$1,323.5 million recognised as a non-trading item in the
Consolidated Profit and Loss Account for the year. The Group’s
property portfolio principally consists of commercial properties.
The valuation of the Group’s investment property portfolio is
inherently subjective due to, among other factors, the individual
nature of each property, its location, prevailing market rents and
the expected future rentals for that particular property.
The valuations were carried out by third party valuers
(the ‘valuers’). Valuations of the commercial properties were
principally derived using the income capitalisation method.
There is inherent estimation uncertainty in determining
a property’s valuation as, the valuers make assumptions in
key areas, in particular in respect of capitalisation rates and
prevailing market rents.
We focussed on the valuation of investment properties due
to the significant judgements and estimates involved in
determining the valuations.
How our audit addressed the Key Audit Matter
We understood management’s controls and processes for
determining the valuation of investment properties and assessed
the inherent risk of material misstatement by considering the
degree of estimation uncertainty and the judgement involved
in determining assumptions to be applied.
We assessed the valuers’ qualifications and their expertise,
considering whether there were any matters that might have
affected their objectivity or may have imposed scope limitations
upon their work. We found no evidence to suggest that the
objectivity of the valuers in their performance of the valuations
was compromised.
Our work focussed on the highest value properties in the portfolio,
in particular the commercial properties located in Hong Kong.
We read a sample of the valuation reports covering the majority
of the Group’s investment property portfolio to consider whether
the valuation methodology used was appropriate in determining
the fair value. We performed testing, on a sample basis, of the
input data used in the valuations to satisfy ourselves of the
accuracy of the property information supplied to the valuers
by management, for example agreeing lease data to tenancy
agreements and other supporting documents.
We evaluated the key controls over the valuation of the investment
property portfolio, including the data used in the valuations.
The audit team, including our valuation experts, attended
meetings with the valuers at which the valuations, methodology
and key assumptions used, and climate change risk considerations
were discussed. We compared the capitalisation rates used
by the valuers with an estimated range of expected rates,
determined via reference to published benchmarks and market
information. We evaluated the year-on-year movements in fair
value with reference to publicly available information and rentals
with reference to prevailing market conditions. We evaluated
whether the capitalisation rates and prevailing market rents used
were appropriate in light of the evidence provided by relevant
recent transactions.
With the support of our valuation experts, we also questioned
the external valuers as to the extent to which recent market
transactions and expected rental values, which they made use
of in deriving their valuations took into account the impact of
climate change and related ESG considerations.
Based on the procedures performed, we found the key
assumptions used in the valuations were appropriate.
We also assessed the adequacy of the disclosures related to
investment properties and related fair value measurements in
the context of IFRS Accounting Standards. We are satisfied that
appropriate disclosure has been made.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated
financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
78
How We Tailored Our Group Audit Scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consolidated financial
statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industries in
which the Group operates.
The Group’s accounting processes are structured around finance functions which are responsible for their own accounting records and
controls, which in turn report financial information to the Group’s finance function to enable it to prepare consolidated financial statements.
In establishing the overall approach to the Group audit, we determined the type of work that needed to be performed by members of
the Group engagement team or by component auditors from member firms within the PwC Network and other auditors operating under
our instruction. Where the work was performed by component auditors, we determined the level of involvement necessary for us to
have in the audit work at those components to be able to conclude whether sufficient, appropriate audit evidence had been obtained as
a basis for our opinion on the financial statements as a whole. The Group engagement team was involved in the significant reporting
entities in scope for Group reporting during the audit cycle through a combination of meetings, visits and conference calls. The
engagement partner and other senior team members undertook a number of visits to Shanghai and Chongqing during the year to direct
and oversee the audit, along with regular communication through conference calls and on site review of the work of component teams in
those locations.
Full scope audits of the complete financial information was performed for fifteen subsidiaries. These subsidiaries, together with
procedures performed on centralised functions and at the Group level (on the consolidation and other areas of significant judgement),
accounted for 83% of the Group’s revenue, 77% of the Group’s loss before tax, 73% of the Group’s underlying profit before tax and
80% of the Group’s net assets. Full scope audits of the complete financial information were also performed for nine joint ventures,
which accounted for a further 7% of the Group’s loss before tax, 9% of the Group’s underlying profit before tax and 10% of the Group’s
net assets.
This gave us the evidence we needed for our opinion on the consolidated financial statements as a whole.
Other Information
The directors of the Company are responsible for the other information. The other information comprises all of the information included
in the annual report other than the consolidated financial statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in
the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
Responsibilities of Directors and the Audit Committee for the Consolidated Financial Statements
As explained more fully in the Responsibility Statements and the Corporate Governance section in the Annual Report, the directors of
the Company are responsible for the preparation of the consolidated financial statements that give a true and fair view in accordance
with IFRS Accounting Standards as issued by the IASB, and for such internal control as the directors determine is necessary to enable
the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors are responsible for assessing the Group’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors
either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
The Audit Committee assists the directors in discharging their responsibilities for overseeing the Group’s financial reporting process.
79
Independent Auditor’s Report
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the
audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether
the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group
to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of
the group audit. We remain solely responsible for our audit opinion.
We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on
our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the Audit Committee, we determine those matters that were of most significance in the audit
of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in
our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
80
Use of this Report
This report, including the opinion, has been prepared for and only for the Company’s members as a body in accordance with Section 90
of the Companies Act 1981 (Bermuda) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility
for any other purpose or to any other person to whom this report is shown or into whose hands it may come, including without limitation
under any contractual obligations of the Company, save where expressly agreed by our prior consent in writing.
The engagement partner on the audit resulting in this independent auditor’s report is Ng Ka Ho.
Other Matter
In due course, as required by the United Kingdom Financial Conduct Authority Disclosure Guidance and Transparency Rule 4.1.14R,
these consolidated financial statements will form part of the ESEF-prepared annual financial report filed on the National Storage
Mechanism of the Financial Conduct Authority in accordance with the ESEF Regulatory Technical Standard (‘ESEF RTS’). This auditor’s
report provides no assurance over whether the annual financial report will be prepared using the single electronic format specified in
the ESEF RTS.
PricewaterhouseCoopers
Certified Public Accountants
Hong Kong
7th March 2024
81
Five Year Summary
2019 2020 2021 2022 2023
US$m US$m US$m US$m US$m
Profit/(loss) attributable to shareholders 198 (2,647) (349) 203 (582 )
Underlying profit attributable to shareholders 1,076 963 966 776 734
Investment properties 33,191 30,083 28,600 28,054 26,687
Net debt 3,591 4,568 5,104 5,817 5,371
Shareholders’ funds 38,247 35,709 34,584 33,303 31,965
US$ US$ US$ US$ US$
Net asset value per share 16.39 15.30 15.05 14.95 14.49
Underlying earnings/dividends
per share (US¢)
Net asset value per share (US$)
DividendsUnderlying earnings
2023
33.15
22.00
34.44
22.00
2019 2020 2021 2022
41.49
22.00
41.27
22.00
46.12
22.00
2023
14.49
14.95
15.05
2019 2020 2021 2022
15.30
16.39
82
Responsibility Statements
The Directors of the Company confirm to the best of their knowledge that:
a. the consolidated financial statements prepared in accordance with International Financial Reporting Standards, including International
Accounting Standards and Interpretations as issued by the International Accounting Standards Board, give a true and fair view of
the assets, liabilities, financial position and profit or loss of the Group; and
b. the Chairman’s Statement, Chief Executive’s Review, Financial Review and the description of Principal Risks and Uncertainties facing
the Group as set out in this Annual Report, which constitute the management report required by the Disclosure Guidance and
Transparency Rule 4.1.8, include a fair review of all information required to be disclosed under Rules 4.1.8 to 4.1.11 of the Disclosure
Guidance and Transparency Rules issued by the Financial Conduct Authority in the United Kingdom.
For and on behalf of the Board
Robert Wong
Craig Beattie
Directors
7th March 2024
83
Corporate Governance
Overview of the Group’s Governance Approach
The Hongkong Land Group (Hongkong Land Holdings Limited (the ‘Company’) and its subsidiaries together known as the ‘Group’)
understands the value of good corporate governance in driving the long-term sustainable success of business. It attaches importance
to the corporate stability that strong governance brings, and the opportunities that result from it being part of the Jardine Matheson
The Group is committed to high standards of governance. The system of governance it has adopted has been developed, over many
years, by the members of the Jardine Matheson group, and both the Group and its stakeholders regard it as appropriate to the nature
of its business and the long-term strategy it pursues in its markets, primarily China and South East Asia. The Group’s governance
framework is tailored to its size, ownership structure, complexity and breadth of business. It enables the Group to benefit from
Jardine Matheson’s strategic guidance and professional expertise while at the same time ensuring that the independence of the Board
is respected and clear operational accountability rests with the Company’s executive management teams.
The Company also ensures that the Group retains and promotes those characteristics and values of a family-owned business that have
enabled the Group to prosper over the long-term:
• A long-term perspective – the Group takes a long-term view in its decision-making and investments and draws on the many
years’ experience of our Directors, as opposed to focussing on short-term profitability. This leads to long-term, sustainable growth
generations for our shareholders and benefits the communities where we operate.
• Credibility, stability and trust – the credibility, stability and trust that family ownership brings to the business are highly valued by
our partners and other stakeholders, especially in developing markets.
• Deep knowledge of the business and our markets – the involvement of many generations of the family in the running of the
Group has led to a deep understanding of how to drive successful growth by the business across its markets, giving the Group
a competitive advantage.
The Group believes that its stakeholders gain significant value from the long-standing governance approach the Group has taken as
a family-owned business and that it is therefore important to retain the key elements of this approach. It is also important, without
losing these benefits, to adapt to changing circumstances in our markets and, where appropriate, to the developing expectations of
stakeholders and changes in best practice.
Accordingly, the Company continues to focus on enhancing the Group’s approach to corporate governance more generally, focussing on
changes that benefit the Group.
Independent Non-Executive Directors with a broad and diverse range of backgrounds are a valuable source of external perspectives
and are a key element of good governance and decision-making. The Company has taken steps to increase the independence and
diversity of its Board and the Company and the Group can benefit from the expertise and experience they bring.
During the year the Company underwent several changes in its governance. Michael Smith was appointed as the new Chief Executive,
succeeding Robert Wong, effective from 1st April 2024. Prijono Sugiarto and Anthony Nightingale retired from the Board on 18th May 2023
and 31st January 2024, respectively. Y.K. Pang retired from the Board and the Audit Committee on 31st March 2024. Accordingly,
from 1st April 2024, the Board comprised nine Directors of whom 33% are considered Independent Non-Executive Directors, taking into
account the independence considerations under the UK Corporate Governance Code (the ‘Code’), and 22% are female. Following the
appointment of Stuart Grant to the Audit Committee on 1st June 2023 and the retirement of Y.K. Pang from the Audit Committee on
31st March 2024, the Company’s Audit Committee comprised a majority of independent members.
Having an effective corporate governance framework supports the Board in delivering the Group’s strategy and supports long-term
sustainable growth, and ensuring it operates transparently and in accordance with the best practice.
Group Structure
Jardine Matheson is the ultimate holding company of the Group. The structural relationship between the Jardine Matheson group and
the Group is considered a key element of the Group’s success. By coordinating objectives, establishing common values and standards,
and sharing experience, contacts and business relationships, the Jardine Matheson group companies, including the Group, aim to
optimise their opportunities across the Asian countries in which they operate.
84
Governance and Legal Framework
The Company is incorporated in Bermuda . The Company’s property interests are held almost entirely in Asia. The primary listing of
the Company’s equity shares is a standard listing on the Main Market of the London Stock Exchange (the ‘LSE’). The Company also
has secondary listings in Singapore and Bermuda . As the Company has only secondary listings on these exchanges, many of the listing
rules of such exchanges are not applicable. Instead, the Company must release the same information in Singapore and Bermuda as it is
required to release under the rules which apply to it as a standard-listed company on the LSE.
As a company incorporated in Bermuda , the Company is governed by:
• The Bermuda Companies Act 1981 (the ‘Bermuda Companies Act’);
• The Bermuda Hongkong Land Holdings Limited Consolidation and Amendment Act 1988 (as amended), pursuant to which the Company
was incorporated and the Bermuda Hongkong Land Holding s Limited Regulations 1993 (as amended) were implemented; and
• The Company’s Memorandum of Association and Bye-laws.
The shareholders can amend the Company’s Bye-laws by way of a special resolution at a general meeting of the Company.
The Company’s standard listing on the LSE means that it is bound by many, but not all, of the same rules as premium-listed companies
under the UK Listing Rules, the Disclosure Guidance and Transparency Rules (the ‘DTRs’) issued by the Financial Conduct Authority in
the United Kingdom (the ‘FCA’), the UK Market Abuse Regulation (the ‘MAR’) and the Prospectus Regulation Rules, including in relation
to continuous disclosure, periodic financial reporting, disclosure of interests in shares, market abuse and the publication and content
of prospectuses in connection with admission to trading or the offering of securities to the public. The Company is also subject to
regulatory oversight from the FCA, as the Company’s principal securities regulator, and is required to comply with the Admission
and Disclosure Standards of the Main Market of the LSE. In addition, the Company and its Directors are subject to legislation and
regulations in Singapore relating, among other things, to insider dealing.
Although some of the rules applicable to premium-listed companies do not apply to the Company, when the shareholders approved
the Company’s move to a standard listing from a premium listing in 2014, the Company stated that it intended to maintain certain
governance principles which were then-applicable to the Company’s premium listing. As a result, the Company adopted several
governance principles (the ‘Governance Principles’) based on the then-applicable requirements for a premium listing, which go
further than the standard listing requirements.
The key elements of the Governance Principles are as follows:
• When assessing a significant transaction (a larger transaction which would be classified as a class 1 transaction under the provisions
of the UK Listing Rules), the Company will engage an independent financial adviser to provide a fairness opinion on the terms of
the transaction.
• If the Company carries out a related party transaction which would require a sponsor to provide a fair and reasonable opinion under
the provisions of the UK Listing Rules, it will engage an independent financial adviser to confirm that the terms of the transaction are
fair and reasonable as far as the shareholders of the Company are concerned. In addition, the Company shall observe the mandatory
related party transaction rules under the DTRs, including assessment, approval and disclosure requirements for material related party
transactions, that apply to UK standard-listed companies.
• Further, as soon as the terms of a significant transaction or a related party transaction are agreed, the Company will issue an
announcement, providing such details of the transaction as are necessary for investors to evaluate the effect of the transaction on
the Company.
• At each annual general meeting (‘AGM’), the Company will seek shareholders’ approval to issue new shares on a non-pre-emptive
basis for up to 33% of the Company’s issued share capital, of which up to 5% can be issued for cash consideration.
• The Company adheres to a set of Securities Dealing Rules which follow the provisions of MAR with respect to market abuse and
disclosure of interests in shares.
The Company is not required to comply with the Code, which applies to all premium-listed companies and sets out the governance
principles and provisions expected to be followed by companies subject to the Code. However, the Company does have regard to the
Code in developing and implementing its approach to corporate governance and disclosure.
85
Corporate Governance
The Management of the Group
The Board
The Board is responsible for ensuring that the Group is appropriately managed and achieves its strategic objectives, in a way that is
supported by the right culture, values and behaviours throughout the Group. The Group’s culture operates provides the foundation for
the delivery of our strategy and our long-term sustainable success while generating value for shareholders. Our workforce policies and
practices are consistent with our values and support the long-term, sustainable success of the Group.
The Board is also responsible for ensuring that appropriate systems and controls are in place throughout the Group to enable efficient
management and well-grounded decision-making. Our business processes incorporate efficient internal reporting, robust internal
controls, and supervision of current and emerging risk themes, all of which form a vital part of our governance framework. As a key
part of this, the Company Secretary has set up processes and systems to ensure that all Directors receive information in a timely,
accurate and clear manner. The Group uses a board paper distribution portal to disseminate Board and Committee papers instantly
and securely.
The Chairman facilitates discussions at Board meetings by ensuring all Directors have an opportunity to make comments and ask
questions. In addition, the Chairman, from time to time, discusses Group matters with Directors individually and collectively outside
of Board meetings. The Chairman also uses other gatherings of the Directors, such as Board dinners, to facilitate discussions
in a less formal environment.
The Board has full power to manage the Company’s business affairs, other than matters reserved to be exercised by the Company in the
general meeting under Bermuda legislation or the Company’s Bye-laws. Key matters for which the Board is responsible include:
• The overall strategic aims and objectives of the Group;
• Establishing the Company’s purpose and values;
• Approval of the Group’s strategy and risk appetite to align with the Group’s purpose and values;
• Approval and oversight of the Group policy framework and approval of appropriate Group policies;
• Approval of the Annual Budget and monitoring of performance against it;
• Oversight of the Group’s operations;
• Approval of major changes to Group’s corporate or capital structure;
• Approval of major capital expenditure and significant transactions, in terms of size or reputational impact;
• Approval of interim and annual financial statements, upon recommendation from the Audit Committee, as well as interim
management statements;
• Approval of the Annual Report and Accounts;
• Approval of dividend policy and the amount and form of interim and final dividend payments for approval by shareholders as required;
• Ensuring relevant sustainability and ESG matters are incorporated into purpose, governance, strategy and decision-making and
risk management;
• Overseeing the management of risk within the Group;
• Any significant changes to the Company’s accounting policies or practices upon recommendation from the Audit Committee;
• Appointment, re-appointment or removal of the external auditor, subject to shareholders’ approval, upon recommendation from
the Audit Committee;
• Approval of matters relating to AGM resolutions and shareholder documentation;
• Approval of all shareholder circulars, prospectuses and listing particulars issued by the Company; and
• Approval of material public announcements concerning matters decided by the Board.
Responsibility for certain matters, including the approval of borrowing facilities and of capital expenditure (other than major capital
expenditure which is required to be approved by the Board), has been delegated to the finance committee established within the
Hong Kong-based Group management company, Hongkong Land Limited (‘HKLL’), with specific written terms of reference outlining
its role and authorities.
The Company sees the value of regularly reviewing the effectiveness of its processes and making improvements where appropriate.
86
The Board continued
Board activities
1. Strategy
We have always focussed on evolving our businesses to reflect changes in the environment in which we operate and the needs
of our customers, and we have invested in our digital capabilities, divested non-core businesses and exited regions, whenever it has
been appropriate.
Our application of these principles over many years has led to the portfolio of businesses that we have today, which has delivered steady
growth in returns, through economic cycles.
To facilitate oversight and provide opportunities for the Board to challenge and measure progress against the Group’s strategic priorities,
at each Board meeting, the Chief Executive and Chief Financial Officer provide updates on the operational and financial performance of
the Group.
In 2023, the Board meetings discussed strategy agenda items on various topics relevant to the Group. The Board meetings provide
Directors with the opportunity to review progress against strategic priorities, inform Directors about the latest trends relevant to our
businesses, assist the Directors in identifying opportunities and risks and give the Directors the opportunity to contribute views and ask
questions of management and share experiences for the benefit of the Group.
2. Operational performance
We operate in highly dynamic markets and need to constantly innovate and pivot our businesses to remain relevant and achieve
long-term, sustainable success. In the past years, Asia has seen a large influx of new capital, the rapid rise of digital companies and an
increasing desire among consumers for convenient digital services. In response, we aim to put innovation, operational excellence
and an entrepreneurial spirit at the heart of everything we do.
At each Board meeting, an update is provided on each business segment which offers important insights into the opportunities and
challenges faced by these areas. In addition, a deeper understanding of how our varied markets function and perform and the
implications for stakeholder-related issues equip the Board with the necessary perspective to enhance strategic decision-making.
The Group attaches great importance to attracting, developing and retaining leadership talent. We strive to develop leaders with an
owner mindset and who are entrepreneurial in how they develop their businesses. This has helped the Group to capitalise on new
business opportunities to achieve long-term, sustainable growth. We continue to enhance our performance management structures
to recognise, reward and retain such talents. As the Group increasingly embraces digital ways of working and invests in new economy
businesses, we are focused on recruiting and developing digital talent across our Group. To provide the Board with oversight of
talent attraction, development and retention, progress of Inclusion, Equity and Diversity (‘IE&D’), and colleague engagement and
movements, information on the Group’s employees is provided at every Board meeting.
Building leadership capability to develop and grow diverse talent and strengthen future pipelines through tailored development
programmes is a key focus for the Board. The Board is committed to creating an inclusive workplace and reflecting the diversity of
the communities we serve. The Group has a clear IE&D strategy in place to ensure that colleagues treat each other in a way they would
expect others to treat them.
3. Financial performance and risk
We take a disciplined, long-term approach to capital allocation, to maximise financial performance, maintain our financial strength
and manage risks. Over time, and in addition to be being part of the Jardine Matheson group of businesses, we have developed deep
relationships with a diverse portfolio of well-capitalised, leading banks and corporate partners, which have supported and continue to
support our financial strength.
The Chief Financial Officer presents a detailed overview of the financial performance of the business at each meeting to ensure the Board
is provided with sufficient information to enable it to exercise the appropriate financial oversight and has the opportunity to challenge
the management as appropriate. This includes details of the performance of each business unit and an overview of the sales, profit,
cash flow, debt levels and capital expenditure.
The Board also reviews the Group’s capital allocation, dividend policy and shareholder returns as well as the management of the Group
debt levels, interest cover and capital markets activities.
87
Corporate Governance
The Board continued
Board activities continued
3. Financial performance and risk continued
The Board has overall responsibility for risk management and is actively engaged in risk discussions. The Audit Committee, on behalf
of the Board, undertakes an annual assessment of the effectiveness of the management of the principal risks facing the Group and
actions taken to mitigate them, validating the key risks and approving any necessary actions arising from the risk assessments.
Maintaining and enhancing the risk and internal control environment is fundamental to the Group’s governance framework and
stewardship of the Company.
4. Governance and stakeholder engagement
The Chief Financial Officer provides Directors with regular updates on stakeholder engagements, including engagement with
shareholders, governments and other relevant third parties, and relevant regulatory developments. Increasing the Directors’
understanding of our stakeholders’ views supports the Board’s decision-making.
Updates from the Chief Financial Officer provide the Board with feedback on investor views and expectations, visibility of market
conditions, share price performance, shareholder returns and the future outlook.
Governance matters are discussed at Board meetings, including directors’ and officers’ insurance, litigation, regulatory changes, review
and approval of statutory reporting and shareholder documentation and governance-related matters.
The Chief Financial Officer provides the Board with Sustainability updates twice a year, which include the progress of the Group’s Net
Zero project, updates on the progress on sustainability initiatives continues to be underpinned by the Group’s Sustainability Framework
2030 and an overview of the progress on promoting social inclusion.
In addition, the Audit Committee Chair provides an update on the activities of the Audit Committee to the Board after each Audit
Committee meeting.
Board Composition and Operational Management
The Board’s composition and the way it operates provide stability, allowing the Company to take a long-term view as it seeks to grow
its business and pursue investment opportunities.
The Chairman has been appointed in accordance with the provisions of the Bye-laws of the Company, which provide that the chairman
of Jardine Matheson, or any Director nominated by him, shall be the Chairman of the Company.
The Company has a dedicated executive management team led by the Chief Executive. However, the Memorandum of Association of
the Company provides for the chairman of Jardine Matheson to be, or to appoint, the Managing Director of the Company. Reflecting this,
and the Jardine Matheson group’s 53% interest in the Company’s share capital, the Chief Executive and the Managing Director meet
regularly. Similarly, the board of HKLL and its finance committee are chaired by the Managing Director. They include Hongkong Land
Group executives and Jardine Matheson’s deputy managing director, group finance director and group general counsel.
The presence of Jardine Matheson representatives on the Board and Audit Committee of the Company, as well as on the board and
finance committee of HKLL, provides an added element of stability to the Company’s financial planning and supervision, enhancing
its ability to raise finance and take a long-term view of business development. In addition, the presence of Jardine Matheson
representatives on the Company’s Board, Audit, Nominations and Remuneration Committees, as well as HKLL’s finance committee,
also strengthens the ability of management to work effectively together in exploiting the full range of the Jardine Matheson group’s
commercial strengths.
As at 7th March 2024, the Company comprises 10 Directors, three of whom (30%) – Stuart Grant, Lincoln K.K. Leong and Christina Ong –
are considered Independent Non-Executive Directors, taking into account the independence considerations under the Code. Y.K. Pang
retired from the Board, the Audit Committee and Remuneration Committee on 31st March 2024. Robert Wong stepped down as Chief
Executive on 31st March 2024. From 1st April 2024, the Board comprised nine Directors of whom 33% are considered Independent
Non-Executive Directors, taking
into account the independence considerations under the Code. There are detailed succession plans in place to ensure that plans are
in place for orderly succession to the Board. The names of all the Directors and brief biographies appear on pages 22 and 23 of this
Annual Report.
88
Board Composition and Operational Management continued
Ben Keswick has been Chairman of the Board since 16th May 2013. John Witt has held the role of Managing Director from 15th June 2020.
Robert Wong had been Chief Executive since 1st August 2016 and stepped down on 31st March 2024. Michael Smith has been appointed
as Chief Executive since 1st April 2024, to succeed Robert Wong.
The Board considers that there is a clear division of responsibilities among the Chairman, the Managing Director and the Chief Executive
to ensure an appropriate balance of power and authority is maintained at all times.
Board composition details as at 7th March 2024 are shown below.
International business
Executive leadership
Strategy & business acumen
Financial acumen
Corporate governance, risk management and/or sustainability
Property development
Property investment
Property management
50-59 Executive Directors
Non-Executive Directors60-59
70-75
Age of Directors Capacity of Directors
Directors’ experience
40-49
Independent Non-Executive Directors
3
2
1
4
Chinese Over 10 years
Canadian 6-10 years
Nationality of Directors Tenure of Directors
British
Singaporean
5 years or below
6 1 32 25 1
0 62 841 73 5 9 10
0 62 841 73 5 9 10 0 62 841 73 5 9 10
0 2
1
3 4
89
Corporate Governance
Board Composition and Operational Management continued
The Board also considered the diversity of the Group’s Board and senior executives diversity in the context of the new Listing Rules’
requirements that listed companies should publish information on the gender and ethnic representation of the Board and executive
management. As at 31st December 2023, being the reference date for the purposes of 14.3.33R(1)(a) of the UK Listing Rules, which
requires the disclosure of certain diversity statistics, and as shown below:
• The Board met its target of having one Director from a minority ethnic background;
• The Company does not currently meet the target of the Board comprising at least 40% female directors but will continue to take IE&D
considerations into account for future Board appointments; and
• The Board does not currently meet the target to have a female director occupying one of the senior Board positions (chair, chief
executive or chief financial officer). The Directors who hold these roles were appointed following formal, rigorous and transparent
nomination procedures and are the most suitable and experienced individuals for their roles and the Group’s needs. The Board will
continue to take IE&D considerations into account for future appointments for these roles.
The Company did not meet the targets of the Board comprising at least 40% female directors and having one of the senior Board
positions occupied by a female director due to the significant change to the composition of the Board’s and senior management which
would be required to meet these requirements.
The Company has taken substantive steps in the past few years to increase the diversity of the Board with two female Non-Executive
Directors appointed in May 2018 and July 2022, bringing the proportion of female directors on the Board to 18%. The Company will
continue to take IE&D considerations into account with respect to future appointments of directors and senior Board positions.
The table below illustrates the ethnic background and gender diversity of the Group’s Board and executive management – which
includes the Company Secretary, but excludes administrative or support staff – pursuant to 14.3.33R(2) of UK Listing Rules, as at
31st December 2023 which is our chosen reference date in accordance with the UK Listing Rules.
As at 31st December 2023
2
Number of
Board members
Percentage of
the Board
Number of senior
positions on
the Board (Chief
Executive, Chief
Financial Officer,
Senior Independent
Director and
Chairman)
Number in
executive
management
(HKLL Board
and Company
Secretary)
Percentage of
executive
management
(HKLL Board
and Company
Secretary)
Gender diversity
Men 9 82% 3 12 86%
Women 2 18% – 2 14%
Not specified/prefer not to say – – – – –
Ethnic diversity
White British or other White
(including minority-white groups) 7 64% 2 6 43%
Mixed/multiple ethnic groups – – – – –
Asian/Asian British 4 36% 1 8 57%
Black/African/Caribbean/Black British – – – – –
Other ethnic group, including Arab – – – – –
Not specified/prefer not to say – – – – –
1 Data disclosed as at the chosen reference date. The data is collected from individuals when joining the Board of the Company or HKLL Board.
2 The numbers had been changed after the chosen reference date owing to the retirements of Anthony Nightingale from the Company on
31st January 2024, Robert Wong and Y.K. Pang from the Company and HKLL, both on 31st March 2024, and the appointment of Michael Smith
on 1st April 2024.
Data relating to the gender and ethnic diversity of the Board and executive management was gathered by the Company Secretary via
the collection of each individual’s identification documents, which are held within the Company’s secure filing system. Apart from the
retirements of Anthony Nightingale on 31st January 2024, Y.K. Pang and Robert Wong both on 31st March 2024, and the appointment of
Michael Smith on 1st April 2024, there is no change in Board composition since the reference date.
The Company has a Board Diversity Policy but does not have a separate Diversity Policy for the Audit Committee in place. IE&D issues
are and will be taken into account where relevant to Board and Audit Committee decisions.
90
Chairman
The Chairman’s role is to lead the Board, ensuring its effectiveness while taking account of the interests of the Group’s various
stakeholders and promoting high standards of corporate governance. The Chairman’s principal responsibilities are in the areas of
strategy, external relationships, governance and people. In addition, he leads the Board in overseeing the long-term strategic direction
of the Group and approving its key business priorities. His key responsibilities also include:
• Leading, with the Managing Director and the Chief Executive, the development of the culture and values of the Group;
• Supporting the development and maintenance of relationships with existing and new key business partners, governments
and shareholders;
• Ensuring, together with the Managing Director and the Chief Executive, an appropriate focus on attracting and retaining the right
people and carrying out succession planning for senior management positions;
• Creating a culture of openness and transparency at Board meetings;
• Building an effective Board supported by a strong governance framework;
• Leading, with the Managing Director, the succession planning for the Chief Executive;
• Ensuring all Directors effectively contribute to discussions and feel comfortable in engaging in healthy debate and constructive challenge;
• Ensuring all Directors receive accurate, timely and clear information; and
• Promoting effective communication between Executive and Non-Executive Directors (including the Independent Non-Executive Directors).
Managing Director
The Managing Director acts as chairman of HKLL and of its finance committee, as well as being a member of the Company’s
Nominations Committee and the Remuneration Committee. In addition, he has responsibility for representing Jardine Matheson,
as the major shareholder of the Company, including:
• Providing oversight of the day-to-day management by the Chief Executive and his leadership team of the business;
• Carrying out ongoing reviews of the business, financial and operational performance of each business against agreed objectives;
• Providing regular feedback to the Chief Executive on his/her performance and conducting an annual performance review;
• Leading the Chief Executive succession planning;
• Ensuring that there is appropriate discussion of future competencies required of the management team to execute the strategy;
• Ensuring that the information submitted to the Board is of high quality and provided on a timely basis;
• Ensuring the Board conducts reviews on past significant capex decisions; and
• Communicating with shareholders as appropriate.
Chief Executive
The responsibility for running the Group’s business and all the executive matters affecting the Group rests with the Chief Executive.
The implementation of the Group’s strategy is delegated to the Company’s executive management, with decision-making authority
within designated financial parameters delegated to the HKLL finance committee. In addition, the Chief Executive has day-to-day
operational responsibility for:
• Effective management of the Group’s business;
• Leading the development of the Company’s strategic direction and implementing the agreed strategy;
• Identifying and executing new business opportunities;
• Managing the Group’s risk profile and implementing and maintaining an effective framework of internal controls;
• Developing targets and goals for his executive team;
• Ensuring effective communication with shareholders and key stakeholders and regularly updating institutional investors on the
business strategy and performance;
• Providing regular operational updates to the Board on all matters of significance relating to the Group’s business or reputation;
• Overseeing the Group’s capital allocation, business planning and performance;
• Overseeing sustainability strategy and execution;
• Ensuring, together with the Chairman and the Managing Director, an appropriate focus on attracting and retaining the right people
and carrying out succession planning for senior management positions; and
• Fostering innovation and entrepreneurialism to drive the Group’s business forward.
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Corporate Governance
Non-Executive Directors
The Non-Executive Directors bring insight and relevant experience to the Board. They have responsibility for constructively challenging
the strategies proposed by the Executive Directors, and scrutinising the performance of management in achieving agreed goals and
objectives. In addition, Non-Executive Directors work on individual initiatives as appropriate.
Board Meetings
The Board usually holds four scheduled meetings each year, and ad hoc procedures are adopted to deal with urgent matters between
scheduled meetings. Board meetings are usually held in different locations around the Group’s markets.
In March 2023, an in-person Board meeting was held in Singapore. The May 2023 Board meeting was held virtually. In-person Board
meetings were held in Shenzhen, China in July 2023 and in Shanghai, China in December 2023. The Board receives high quality, up
to date information for each of its meetings, which is provided to Directors via a secure online board information portal. The Company
reviews the information provided to the Board regularly, to ensure that it remains relevant to the needs of the Board in carrying out
its duties.
The Directors of the Company who do not serve on the board of HKLL and who are based outside Asia will usually visit the region to
discuss the Group’s business and inspect the Group’s investment and development assets.
Board Attendance
Directors are expected to attend all Board meetings. The table below shows the attendance at the scheduled 2023 Board meetings:
Meetings
eligible to
attend Attendance
Directors of the Company
Non-Executive Directors
Ben Keswick 4/4 100%
Stuart Grant
1
3/3 100%
Lily Jencks 2/2 100%
Adam Keswick 4/4 100%
Lincoln K.K. Leong 3/3 100%
Christina Ong 3/4 75%
Y.K. Pang
2
4/4 100%
Executive Directors
John Witt 4/4 100%
Robert Wong
3
4/4 100%
Craig Beattie 4/4 100%
Former Directors of the Company
Anthony Nightingale
4
4/4 100%
Prijono Sugiarto
5
2/2 100%
1 Stuart Grant joined the Board on 3rd March 2023. In 2023, three Board meetings were held after 3rd March 2023.
2 Y.K. Pang retired from the Board as Director on 31st March 2024.
3 Robert Wong retired from the Board as Director and Chief Executive on 31st March 2024.
4 Anthony Nightingale retired from the Board as Director on 31st January 2024.
5 Prijono Sugiarto retired from the Board as Director on 18th May 2023. In 2023, two Board meetings were held on or before 18th May 2023.
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Appointment and Retirement of Directors
There are detailed succession plans in place to ensure that plans are in place for orderly succession to the Board. The Board is focused
on development and succession plans at both Board and executive level to strengthen the diverse management pipeline. The Chairman,
in conjunction with other Directors, reviews the size, composition, tenure and skills of the Board. The Chairman leads the process for
new appointments, monitors Board succession planning, and considers independence, diversity, inclusion and Group governance matters
when recommending appointments to the Board. Non-Executive Directors are appointed on merit, against objective criteria and are
initially appointed for a three-year term.
Upon appointment, all new Directors receive a comprehensive induction programme over several months. This is designed to facilitate
their understanding of the business and is tailored to their individual needs. The Chief Financial Officer and the Company Secretary are
responsible for delivering the programme covering the Company’s core purpose and values, strategy, key areas of the business and
corporate governance.
The Chairman regularly assesses the time commitments of Directors to ensure that they each continue to have sufficient time for
their role. He also considers the potential additional time required in the event of corporate stress. Prior to appointment, the Chairman
assesses the commitments of a proposed candidate, including other directorships, to ensure they have sufficient time to devote to the
role. Any Director’s external appointments, which may affect existing time commitments relevant to the Board, must be agreed with
the Chairman in advance.
The Board appoints each new Director, and the Nominations Committee has been established to assist the Board in such matters.
In accordance with the Company’s Bye-laws, each new Director is subject to retirement and re-election at the first AGM after
appointment. After that, Directors are subject to retirement by rotation requirements under the Bye-laws, whereby one-third of the
Directors retire at the AGM each year. These provisions apply to both Executive and Non-Executive Directors, but the requirement
to retire by rotation does not extend to the Chairman or Managing Director of the Company. The Company has determined that it is
appropriate for the Chairman and the Managing Director to be exempted from the retirement by rotation requirements because an
important part of the Group’s strong governance is corporate stability, and this is provided by the long-term stewardship of the business
by family as well as related and like-minded shareholders, who hold a significant proportion of the shares of the Company. John Witt,
being the Managing Director, has a service contract with the Company that has a notice period of six months.
Stuart Grant joined the Board on 3rd March 2023. Prijono Sugiarto and Anthony Nightingale stepped down from the Board on
18th May 2023 and 31st January 2024, respectively. Y.K. Pang stepped down from the Board, the Audit Committee and Remuneration
Committee on 31st March 2024. Robert Wong stepped down as a Director and Chief Executive on 31st March 2024, and Michael Smith
has been appointed in his place with effect from 1st April 2024.
In accordance with Bye-law 85, Craig Beattie and Adam Keswick will retire by rotation at this year’s AGM and, being eligible, offer
themselves for re-election. In accordance with Bye-law 92, Michael Smith will also retire and, being eligible, offer himself for re-election.
Both Michael Smith and Craig Beattie have service contracts with a subsidiary of the Company that has a notice period of six months.
None of the other Director proposed for re-election has a service contract with the Company or its subsidiaries.
Directors need to obtain the Chairman’s approval before accepting additional appointments that might affect their time to devote to the
role as a Director of the Company.
Board and Audit Committee Training
During the year, the Board and the Audit Committee received training in Gen AI and Cybersecurity, respectively.
Company Secretary
All Directors have access to the advice of the Company Secretary, who is responsible for advising the Board on all governance matters.
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Corporate Governance
Committees
The Board is supported by the activities of its Committees (the Nominations, Remuneration and Audit Committees), which ensure the
right level of attention and consideration are given to specific matters. Matters considered by each of the Committees are set out in
its respective terms of reference. Copies of these documents can be obtained from the Company’s website at www.hkland.com.
Nominations Committee
The Board established a Nominations Committee (the ‘Nominations Committee’) in March 2021. The key responsibilities of the
Nominations Committee are to:
• Review the structure, size and composition of the Board and its committees and make recommendations to the Board on any
appointments to maintain a right balance of skills, knowledge and experience and independence, as well as a diversity of perspectives;
• Support the Chairman to lead the process for Board appointments and nominate suitable candidates to the Board;
• Assess suitable candidates based on merit and objective criteria (giving consideration to the promotion of the diversity of social and
ethnic backgrounds, knowledge, experience and skills), taking into account their ability to meet the required time commitments;
• Oversee the development of succession pipelines for both the Board and senior management positions to ensure talent is identified
and nurtured to meet the challenges and opportunities facing the Group; and
• Satisfy itself that any skill gaps are addressed in the reviews of Board composition and that appropriate development opportunities
are in place for Directors to keep abreast of market knowledge and industry trends to perform their role effectively.
The Nominations Committee consists of a minimum of three members, selected by the Chairman of the Board. The Chairman of
the Board is the chairman of the Nominations Committee. The current members of the Nominations Committee are Ben Keswick,
Adam Keswick and John Witt. The Nominations Committee meets as circumstances require, or by the circulation of Committee circulars
and recommendations to the Board for approval as it deems appropriate. It plays a key role in the process of recruiting senior executives.
Candidates for appointment as Executive Directors of the Company or other senior management positions may be sourced internally
or externally, including by using the services of specialist executive search or recruitment firms. The aim is to appoint individuals
who combine international business knowledge and experience, industry knowledge and experience, if possible, and familiarity with,
or adaptability to, Asian markets. When appointing Non-Executive Directors, the Nominations Committee pays particular attention to
the Asian business experience and relationships that they can bring.
Insurance and Indemnification
The Company purchases insurance to cover its Directors against their costs in defending themselves in civil proceedings taken against
them in that capacity and in respect of damages resulting from the unsuccessful defence of any proceedings. To the extent permitted
by applicable law, every Director shall be indemnified and secured harmless out of the assets of the Company against all liability and
loss suffered and expenses reasonably incurred. However, neither insurance nor indemnity arrangements provide cover where the
Director has acted fraudulently or dishonestly.
Delegations of Authority
The Group has in place an organisational structure with defined lines of responsibility and delegation of authority. There are established
policies and procedures for financial planning and budgeting, information and reporting systems, assessment of risk, and monitoring
of the Group’s operations and performance. The information systems in place are designed to ensure that the financial information
reported is reliable and up to date.
The Group’s delegation of authority establishes a clear pathway for decision-making. This ensures that judgments are made at
the correct business level by the team members most equipped to do so. Every decision made aligns with our culture and values,
taking into account the advantages, risks, financial consequences, and effects on all stakeholders. The Board, bolstered by the Audit
Committee, places significant emphasis on maintaining high governance standards throughout the Group. This reinforcement assists
the Board in accomplishing its strategic goals and fulfilling key performance objectives.
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Directors’ Responsibilities in respect of the Financial Statements
Under the Bermuda Companies Act, the Directors are required to prepare financial statements for each financial year and present them
annually to the Company’s shareholders at the AGM. The financial statements are required to present fairly, in accordance with the
International Financial Reporting Standards (‘IFRS’), the financial position of the Group at the end of the year, and the results of its
operations and its cash flows for the year then ended. The Directors consider that applicable accounting policies under IFRS, applied
consistently and supported by prudent and reasonable judgements and estimates, have been followed in preparing the financial
statements. The financial statements have been prepared on a going concern basis.
Substantial Shareholders
As classified as a non-UK issuer, the Company is subject to the provisions of the DTRs, which require that a person must, in certain
circumstances, notify the Company of the percentage of voting rights attaching to the share capital of the Company that person holds.
The obligation to notify arises if that person acquires or disposes of shares in the Company and that results in the percentage of voting
rights which the person holds reaching, exceeding, or falling below, 5%, 10%, 15%, 20%, 25%, 30%, 50% and 75%.
The Company has been informed of the holding of voting rights of 5% or more attaching to the Company’s issued ordinary share capital
by Jardine Strategic Limited (‘Jardine Strategic’), which is directly interested in 1,176,616,636 ordinary shares carrying 53.32% of the
voting rights. By virtue of its interest in Jardine Strategic, Jardine Matheson is also interested in the same ordinary shares. Apart from
this shareholding, the Company is not aware of any holders of voting rights of 5% or more attaching to the Company’s issued ordinary
share capital as of 7th March 2024.
There were no contracts of significance with substantial corporate shareholders during the year under review.
Related Party Transactions
Details of transactions with related parties entered into by the Company during the course of the year are included in Note 24 to
the financial statements on page 54.
Engagement with Shareholders, Other Stakeholders and Colleagues
Engaging with our stakeholders, including our people, investors, creditors, partners and government, enables us to understand their
perspectives and ensure we address their expectations and improve accordingly.
Shareholders and Investors
The Board and senior management team recognise communications with shareholders and investors to be an important component of
Hongkong Land’s commitment to strong corporate governance. The Group proactively engages with the investment community through
a number of channels to articulate its business and sustainability strategies, provide updates on its progress towards key objectives, and
to collect the community’s views and feedback, as follows:
• The Chief Executive and Chief Financial Officer are made available to address queries at the Group’s interim and annual results
presentations, followed by interactions during roadshows or post results discussions with major shareholders and investors;
• The Chief Financial Officer provides business updates to the analyst community prior to the start of black-out periods ahead of interim
and annual results announcements;
• The Chief Executive, Chief Financial Officer, and/or the Investor Relations team regularly attend one-on-one meetings with major
shareholders, bondholders and potential investors – over 60 meetings were conducted during the year;
• The publication of annual reports, results announcements and presentations, interim management statements and press releases;
• The publication of the Group’s Sustainability Framework 2030 & Climate Action report, as well as its annual Sustainability
Performance report;
• The publication of business, sustainability and other general updates via social media platforms; and
• The Group’s AGMs.
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Corporate Governance
Engagement with Shareholders, Other Stakeholders and Colleagues continued
Other Stakeholders
The Group frequently engages with stakeholder groups outside of the investment community, focussing primarily collaborations on
sustainability-related issues and initiatives. Hongkong Land’s engagement with stakeholders is guided by the Group’s Sustainability
Framework 2030 (hklandblob.blob.core.windows.net/assets/sustainability/sustainability-governance/hll_sustainabilityframework_
2030_en.pdf), which was developed via consultations with stakeholders to help the Group prioritise material topics.
These engagements, which are attended or sponsored by senior management, primarily include:
• Ongoing dialogue with environmental Non-Governmental Organisations (‘NGOs’), financial institutions, other landlords, and
government agencies on risks from rising sea levels;
• Collaborating with other landlords via an Alliance on the sourcing and trialling of PropTech solutions to drive energy efficiency for
commercial buildings;
• Engaging and collaborating with tenants via the Group’s Tenant Sustainability Partnership Programme to share best practices on
green tenant fit-outs and operations, as well as corporate social responsibility initiatives;
• Regular communications with contractors and other developers to learn and share best practices on refining building designs and
optimising the use of carbon intensive building materials;
• Engaging with tenants to raise awareness and best practices on IE&D initiatives;
• Collaborating with NGOs to deliver charitable initiatives via economic contributions, community investments, and volunteering;
• Attending real estate sector and sustainability conferences, seminars, workshops, and events, including contributing to discussions on
emerging sustainability issues; and
• Engaging our colleagues via employee engagement surveys and sustainability materiality assessments.
Shareholders and other stakeholders may send their enquiries and concerns by e-mail at gpobox@hkland.com.
Securities Purchase Arrangements
The Directors have the power under the Bermuda Companies Act and the Company’s Memorandum of Association to purchase the
Company’s shares. Any shares so purchased shall be treated as cancelled and, therefore, reduce the Company’s issued share capital.
When the Board regularly considers the possibility of share repurchases, it will consider the potential for enhancing earnings or asset
values per share. When purchasing such shares, the Company is subject to the provisions of MAR.
During the year ended 31st December 2023, the Company repurchased and cancelled a total of 20,402,100 of its ordinary shares
for an aggregate cost of US$83.2 million. The ordinary shares, which were repurchased in the market, represented approximately
0.92% of the Company’s issued ordinary share capital as at 1st January 2023 before repurchase.
Workforce Engagement
The Group is working hard to support the growth of the next generation of leaders within our businesses, ensuring our colleagues can
develop the skills they need.
We also aim to create an owner mindset among our staff and support this by enhancing our incentive structures to focus less on current
profits and more on value creation over a longer time horizon. This longer-term view also incentivises experimentation and innovation.
The 2023 Staff Engagement Survey was also conducted, resulting in best-in-class rating.
Annual General Meeting
The 2024 AGM will be held on 8th May 2024. The full text of the resolutions and explanatory notes in respect of
the meeting are contained in the Notice of AGM, despatched at the same time with this Annual Report and can be found
at www.hkland.com/en/investors/announcements.
Corporate Website
A corporate website is maintained containing a wide range of information of interest to investors at www.hkland.com.
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Group Policies
Code of Conduct
The Group conducts business in a professional, ethical and even-handed manner. Its ethical standards are set out in its Code of Conduct,
a set of guidelines to which every employee must adhere. It is reinforced and monitored by an annual compliance certification process
and modelled on the Jardine Matheson group’s code of conduct. The Code of Conduct requires that all Group companies comply with all
laws of general application, all rules and regulations that are industry-specific and proper standards of business conduct. In addition,
the Code of Conduct prohibits the giving or receiving of illicit payments. It requires that all Directors and employees must be fully aware
of their obligations under the Code of Conduct and establish procedures to ensure compliance at all levels within their businesses.
The Company’s policy on commercial conduct underpins the Group’s internal control process, particularly in the area of compliance.
The policy is also set out in the Group’s Code of Conduct.
Data Privacy
The Group is committed to being a responsible custodian of the data entrusted to it by customers, employees, business partners and other
stakeholders keeping the data secure and processing it in accordance with legal requirements and stakeholder expectations as they
continue to evolve. Appropriate protections are in place to prevent misuse and unauthorised disclosure of personal data. In addition,
the Group’s Code of Conduct and Data Breach Notification Policy underlines the Group’s commitment to being a responsible data custodian.
Whistleblowing Policy
The Group has a whistleblowing policy covering how employees can report matters of serious concern. The Audit Committee is
responsible for overseeing the effectiveness of the formal procedures for colleagues to raise such matters and is required to review
any reports made under those procedures referred to it by the internal audit function.
In addition, the Group has a whistleblowing service managed by an independent third-party service provider to supplement existing
whistleblowing channels to assist employees and third parties in reporting suspected illegal or unethical behaviour or other matters
of serious concern and is intended to help foster an inclusive, safe and respectful workplace. The service, which is available 24 hours
in multiple local languages, and is accessible through phone hotline or online, and as anonymous submissions, may be used by
colleagues to report a matter of concern to a manager supervisor, People and Culture (formerly Human Resources), Executive Directors,
Legal representative or the Chief Financial Officer. Reports may be lodged by one of three channels: email, website and telephone
hotline. Each report is allocated a unique case number which enables follow-up with the reporter where applicable. Once a report is
lodged, it is sent to certain authorised persons at the Group level. These include senior representatives from legal, compliance and
finance teams who have experience in dealing with such matters. The authorised persons will follow up on the report and investigate
where necessary. The reporter, if they choose to, will be notified of the outcome. All reports are treated confidentially and any
retaliation against a person reporting a potential breach of the Code of Conduct in good faith will not be tolerated.
Inclusion, Equity and Diversity
The Group will continue to foster a culture of inclusivity and empowerment, where colleagues with different backgrounds feel
comfortable in being themselves, in voicing their ideas and have equal opportunities to thrive.
The Group applies the principle that colleagues should always treat others in a way they would expect others to treat them. Bullying,
intimidation, discrimination, and harassment of others have no place in the Group and will not be tolerated.
As a multinational Group with a broad range of businesses operating across Asia, the Group believes in promoting equal opportunities
in recruiting and developing all employees, regardless of ethnicity, gender, age, sexual orientation, disability, background or religion,
should be treated fairly and with dignity, and be valued for the contributions they make in their role. The scale and breadth of the
Group’s business necessitate that they seek the best people from the communities in which they operate most suited to their needs.
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Corporate Governance
Inclusion, Equity and Diversity continued
All staff are encouraged and supported to develop their full potential and contribute to the sustainable growth of the Group. Employees
views and ideas are essential, and they are encouraged to express them respectfully with colleagues at all levels within the organisation.
To build an inclusive workplace, we incorporate IE&D principles by modelling the Jardine Matheson group’s IE&D Policy. This includes:
• Ongoing collaboration with Jardine Matheson group to ensure a set of inclusive working arrangements and policies to support IE&D;
• Keeping our recruitment, promotion and retention systems fair and based on aptitude, merit and ability, including ongoing reviews of
remuneration to ensure appropriateness of pay levels;
• Active talent management and career support for our talent pools to provide equitable opportunities that will enable a diverse future
pipeline of leaders; and
• Cultivating the right set of leadership behaviours through learning campaigns to ensure our people behave in a way consistent with
the principles we have put in place.
The Company keeps the composition of its Board and senior management positions under review to ensure that it adapts to the
changing business landscape. The Company is actively focussed on increasing gender diversity at all levels of the organisation.
The Group has a Diversity and Equal Opportunity Policy.
Remuneration Report
Message from the Board/Remuneration Committee
The Board is pleased to present shareholders with the 2023 Remuneration Report. This report sets out the Group’s approach to
remuneration for its executives and Directors, particularly the link between the Group’s values, strategy and its remuneration
framework, and the link between performance and reward, in determining remuneration outcomes for senior executives.
The Group’s Remuneration Philosophy and Framework for Rewarding Staff
The remuneration outcomes in 2023 reflect the intended operation of the remuneration framework.
At the heart of the Group’s remuneration framework is our commitment to deliver competitive remuneration for excellent performance
to attract the best and motivate and retain talented individuals, while aligning the interests of executives and shareholders. The Company
aims to ensure that its remuneration system is designed in a manner that is aligned with the values and strategic priorities of the Company.
It does this through:
• Incentives based on financial measures and strategic objectives that reflect key goals critical to long-term sustainable
organisational success;
• Consideration of business and operational risk, as well as sustainability development goals through the design of performance objectives;
• Incentives and policies which align the interests of executives to those of shareholders;
• Best-practice governance and ensuring remuneration outcomes are reasonable, taking into account community and stakeholder
expectations; and
• Remuneration levels and outcomes appropriately reflect the challenge and complexity of being a multinational Asian-based property
group with diverse property business.
The Company’s policy is to offer competitive remuneration packages to its senior executives. The Company relies on a reward
framework that provides varying levels of remuneration and benefits depending on employee level. The remuneration packages
are designed to reflect the nature of the Group and its diverse geographic base.
Accordingly, the remuneration mix for employees varies depending on level. At senior executive levels, more remuneration is ‘at risk’
depending on performance levels against goals. At more junior levels, more remuneration is directed toward fixed remuneration.
The Company strives to provide an appropriate amount of remuneration ‘at risk’ for the achievement of goals – whether those are
short- or long-term in nature.
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Directors’ Remuneration
Shareholders decide in general meetings the Directors’ fees which are payable to all Directors other than the Chief Executive and the
Chief Financial Officer, as provided for by the Company’s Bye-laws.
The remuneration of the Company’s Non-Executive Directors is not linked to performance. This is consistent with Non-Executive
Directors being responsible for objective and independent oversight of the Group. The total amount provided to all Directors (including
the Managing Director but exclusive of salaried Executive Directors of the Company who are not entitled to such fees) must not exceed
the sum agreed by shareholders at a general meeting. The maximum aggregate remuneration of US$1.5 million per annum was
approved by shareholders at the 2022 AGM and would be subject to review at the 2025 AGM. Executive Directors (excluding the
Managing Director, who is also the Jardine Matheson Managing Director) are paid a basic fixed salary as well as discretionary annual
incentive bonuses by and receive certain employee benefits from the Group. Non-Executive Directors do not receive bonuses or any
other incentive payments or retirement benefits.
The Non-Executive Directors are reimbursed for expenses properly incurred in performing their duties as a Director of the Company.
The schedule of fees paid to Directors in respect of the financial year 2023 is set out in the table below. Fees are annual fees, unless
otherwise stated:
USD (per annum)
Chairman/Managing Director fee: 110,000
Base Director fee: 100,000
Audit Committee fee (Chairman): 45,000
Audit Committee fee (member): 35,000
Nominations Committee fee: 15,000
Director
Director Fee
US$
Audit
Committee
Fee
US$
Nominations
Committee
Fee
US$
Total Fees
US$
1 Ben Keswick (Chairman) 110,000 – 15,000 125,000*
2 John Witt (Managing Director) 110,000 – 15,000 125,000*
3 Robert Wong
1
– – – –
4 Craig Beattie – – – –
5 Stuart Grant
2
100,000 26,250 – 126,250
6 Lily Jencks 100,000 – – 100,000
7 Adam Keswick 100,000 – 15,000 115,000*
8 Lincoln K.K. Leong 100,000 45,000 – 145,000
9 Anthony Nightingale
3
100,000 – – 100,000
10 Christina Ong 100,000 – – 100,000
11 Y.K. Pang
4
100,000 35,000 – 135,000*
12 Prijono Sugiarto
5
37,808 – – 37,808
Total 957,808 106,250 45,000 1,109,058
* Fees surrendered to Jardine Matheson
1 Robert Wong retired from the Board on 31st March 2024.
2 Stuart Grant joined the Board on 3rd March 2023.
3 Anthony Nightingale retired from the Board on 31st January 2024.
4 Y.K. Pang retired from the Board and the Audit Committee on 31st March 2024.
5 Prijono Sugiarto retired from the Board on 18th May 2023.
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Corporate Governance
Remuneration Committee
The Board has overall responsibility for setting remuneration across the Group, ensuring it is appropriate and supports the Group’s strategy,
creating value for stakeholders. The Remuneration Committee has been established to assist the Board in these remuneration matters.
The Board has established a Remuneration Committee (the ‘Remuneration Committee’) at the Company level in March 2022. The role
of the Remuneration Committee is governed by its terms of reference. The key responsibilities of the Remuneration Committee are to:
• Oversee the formulation of a Group-wide reward strategy and ensure the business implements the reward strategy in alignment with
its industry-specific needs;
• Review and approve the compensation of the leadership team of the business;
• Review the terms of and design of performance-related incentives (both short- and long-term), including the review and approval of
any changes to plan design, targets and metrics;
• Review and approve the overall compensation costs, including salary and bonus budgets, of the business; and
• Remain abreast of trends and developments in executive compensation and corporate governance as they relate to the Group’s
industry and countries of operation.
The Remuneration Committee consists of a minimum of three members, selected by the Chairman of the Board. The Chairman of
the Board is the chairman of the Remuneration Committee. The current members of the Remuneration Committee are Ben Keswick,
John Witt and Graham Baker. The Chief Executive and the Executive Director, People & Culture will generally attend meetings of the
Remuneration Committee. The Remuneration Committee meets as circumstances require, or by circulation of Committee circular
reviews and recommends to the Board for approval as it deems appropriate.
Executive Directors Shareholding Policy
The Company believes that it is essential to align the interests of shareholders and Executive Directors. This means creating an
environment where the Executive Directors are incentivised to create long-term shareholder value. The Company has sought to do
this in part by requiring all Executive Directors to accumulate and hold shares in the Company for the long-term.
In this regard, the Company has adopted an Executive Directors’ Shareholding Policy (the ‘Shareholding Policy’). The Shareholding
Policy requires that each of the Executive Directors should build a meaningful and increasing shareholding in the Company over time.
The Shareholding Policy sets a minimum shareholding requirement. For the Chief Executive the value is four times his annual basic salary.
For Executive Directors and executive directors of HKLL with profit and loss responsibility and the Chief Financial Officer (other than the
Chief Executive), the minimum requirement is to hold shares in the Company with a value of two times their annual basic salary, while
other executive directors of HKLL who are functional heads, the value is one time their annual basic salary. New Executive Directors and
executive directors of HKLL are permitted five years from the commencement of their employment to accumulate the required level of
shareholding.
All shares, once acquired, should be retained by the relevant Executive Director for so long as they are engaged by the Group and for
at least three years thereafter.
How Remuneration Framework is Linked to the Business Strategy
The Group’s remuneration strategy is designed to support and reinforce its business and sustainability strategies, both short- and
long-term. The ‘at risk’ components of remuneration are tied to measures that reflect the successful execution of these strategies in
both the short- and long-term. So, the Group’s actual performance directly affects what executives are paid.
Remuneration Outcomes in 2023
For the year ended 31st December 2023, the Directors received from the Group US$7.6 million (2022: US$8.6 million) in Directors’ fees
and employee benefits, being:
• US$1.1 million (2022: US$1.2 million) in Directors’ fees;
• US$6.1 million (2022: US$7.3 million) in short-term employee benefits, including salary, bonuses, accommodation and deemed
benefits in kind; and
• US$0.4 million (2022: US$0.1 million) in post-employment benefits.
The information set out in the section above headed ‘Remuneration Outcomes in 2023’ forms part of the audited financial statements.
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Share Schemes
The Company has in place a notional share option plan under which cash bonuses are paid based on the performance of the Company’s
share price over a period. The notional plan was established to provide longer-term incentives for Executive Directors and senior
managers. Notional share options are granted after consultation between the Chairman and the Chief Executive as well as other
Directors as they consider appropriate. Notional share options are not granted to Non-Executive Directors.
Directors’ Share Interests
The Directors of the Company in office on 7th March 2024 had interests* as set out below in the ordinary share capital of the Company.
These interests include those notified to the Company regarding the Directors’ closely associated persons*.
Robert Wong
1
630,000
Craig Beattie 75,900
Lincoln K.K. Leong 456,818
Y.K. Pang
1
738,000
* Within the meaning of MAR
1 Robert Wong and Y.K. Pang retired from the Board on 31st March 2024.
In addition, Robert Wong and Craig Beattie held share options regarding 2,450,000 and 120,000 ordinary shares, respectively, issued
pursuant to the Company’s notional share option plan.
Audit Committee Report
Audit Committee
The Board has established an Audit Committee (the ‘Audit Committee’) at the Company level in March 2022. The Audit Committee
consists of a minimum of three members, the current members of which are Graham Baker (Financial Expert), Lincoln K.K. Leong
(Chairman of the Audit Committee and Independent Non-Executive Director) and Stuart Grant (Independent Non-Executive Director).
None of them is directly involved in operational management of the Company.
A majority members of the Audit Committee are independent members with recent financial experience and expertise. In addition,
Graham Baker and Stuart Grant also have a deep understanding of risk management.
The Chief Executive and Chief Financial Officer, together with representatives of the internal and external auditors, also attend the Audit
Committee meetings by invitation. In addition, other individuals may attend part of a meeting for specific agenda items as appropriate.
The Audit Committee meets twice a year and reports to the Board after each meeting.
The role of the Audit Committee is governed by its terms of reference. The Audit Committee’s remit includes:
• Independent oversight and assessment of financial reporting processes including related internal controls;
• Independent oversight of risk management and compliance;
• Independent oversight and responsibility for cybersecurity;
• Monitoring and reviewing the effectiveness of the internal and external audit functions;
• Considering the independence and objectivity of the external auditors; and
• Reviewing and approving the level and nature of non-audit work performed by the external auditors.
Before completion and announcement of the half-year and year-end results, a review of the Company’s financial information and any
issues raised in connection with the preparation of the results, including the adoption of new accounting policies, is undertaken by the
Audit Committee with the executive management and a report is received from the external auditors. The external auditors also have
access to the entire Board when necessary, in addition to the Chief Executive, the Chief Financial Officer and other senior executives.
The matters considered by the Audit Committee during 2023 included:
• Reviewing the 2022 annual financial statements and 2023 half-year financial statements, with particular focus on the provisioning and
impairment assessments, assumptions that underpinned key valuation models and effectiveness of financial controls;
• Reviewing the actions and judgements of management in relation to changes in accounting policies and practices to ensure clarity of
disclosures and compliance with new accounting standards;
• Receiving reports from internal audit function on the status of the control and compliance environment of the Group and its business
divisions, and progress made in resolving matters identified in the reports;
• Reviewing the principal risks, evolving trends and emerging risks that affect the Group, and monitoring changes to the risk profile,
as well as the effectiveness of risk management measures and crisis management arrangements;
101
Corporate Governance
Audit Committee continued
• Receiving updates on the cybersecurity threat landscape and the Group’s cybersecurity environment, risk management approach,
training, priorities and control effectiveness;
• Receiving reports from risk management and legal functions on key legal matters and compliance and code of conduct issues,
and the actions taken in addressing those issues and strengthening controls;
• Reviewing the annual internal audit plan and status updates;
• Reviewing the biennial assessment of the effectiveness of PwC;
• Reviewing the Group’s governance approach to cybersecurity management, data security and privacy management across
its businesses;
• Reviewing the independence, audit scope and fees of PwC, and recommending their re-appointment as the external auditor at
general meeting;
• Conducting a review of the terms of reference of the Audit Committee;
• Recommending the change of auditor from PwC LLP to PwC Hong Kong to the Board for approval; and
• Approving the adoption of Non-Assurance Services Concurrence Policy, which establishes procedures and delegations by which the
Audit Committee intends to fulfil its responsibilities for the engagement of the independent auditor to perform non-assurance services
to comply with the revised Code of Ethics issued by the International Ethics Standards Board for Accountants.
Audit Committees Attendance
The table below shows the attendance at the scheduled 2023 Audit Committee meetings:
Members of the Audit Committee
Meeting
eligible to
attend Attendance
Directors of the Company
Lincoln K.K. Leong (Chairman) 2/2 100%
Stuart Grant
1
1/1 100%
Y.K. Pang
2
1/2 50%
Director of HKLL
Graham Baker 2/2 100%
1 Stuart Grant joined the Audit Committee on 1st June 2023. In 2023, one Audit Committee meeting was held after 1st June 2023.
2 Y.K. Pang stepped down as a member on 31st March 2024.
Auditor Independence and Effectiveness
The Group auditor’s independence and objectivity are safeguarded by control measures including:
• Reviewing the nature of non-audit services (including the adoption by the Company of a non-audit services policy);
• The external auditor’s own internal processes to approve requests for non-audit work to the external audit work;
• Monitoring changes in legislation related to auditor independence and objectivity;
• The rotation of the lead auditor partner after five years;
• Independent reporting lines from the external auditor to the Audit Committee and providing an opportunity for the external auditor to
have in-camera sessions with the Audit Committee;
• Restrictions on the employment by the group of certain employees of the external auditor;
• Providing a confidential helpline that employees can use to report any concerns; and
• An annual review by the Audit Committee of the policy to ensure the objectivity and independence of the external auditor.
The Board’s annual review in 2023 of the Auditor’s independence and effectiveness found that PwC performed their duties effectively.
The Board found the level of professional scepticism, the number and regularity of meetings with the Audit Committee, feedback from
Audit Committee members and internal stakeholders and the levels of technical skills and experience to be effective.
At each AGM of the Company, the Company is required to appoint an Auditor to hold office until the conclusion of the next AGM. The
Company’s previous Auditor was PricewaterhouseCoopers LLP (‘PwC LLP’). In March 2023, the Audit Committee recommended that the
Company appoint PwC Hong Kong, also a PricewaterhouseCoopers network firm and which had conducted much of the audit work on
behalf of PwC LLP for many years, as its Auditor in place of PwC LLP for future audit processes, to streamline audit procedures and align
the location of the firm acting as Auditor more closely with the location of the Company’s businesses. The Company’s shareholders
approved the appointment of PwC Hong Kong as the Company’s Auditor at the AGM on 4th May 2023.
102
Risk Management and Internal Control
The Board has overall responsibility for the Group’s risk management systems and internal control. The Board has delegated to the
Audit Committee responsibility for providing oversight in respect of risk management activities. The Audit Committee considers the Group’s
principal risks and uncertainties and potential changes to the risk profile. It reviews the operation and effectiveness of the Group’s
internal control systems (financial, operational and compliance) and the procedures by which these risks are monitored and mitigated.
The Audit Committee considers the systems and procedures regularly and reports to the Board semi-annually. The Jardine Matheson
Group Audit and Risk Management (‘JM GARM’) is appointed to assist the Audit Committee in fulfilling its assurance and reporting roles.
JM GARM adheres to international standards for the professional practice of internal audit. To safeguard its independence and objectivity,
JM GARM reports functionally to the Audit Committee of the Company and has full and unrestricted access to all business functions,
records, properties and personnel.
The internal control systems are designed to manage, rather than eliminate, business risk; to help safeguard the Group’s assets against
fraud and other irregularities; and give reasonable, but not absolute, assurance against material financial misstatement or loss.
Executive management is responsible for implementing the systems of internal control throughout the Group.
The Group has an established risk management process that is reviewed regularly and covers all business units within the Group.
This includes the maintenance of risk registers that detail the emerging and existing risks to the future success of the business and
the relevant key controls and mitigating factors that address those risks. The Group’s risk management process and risk registers are
reviewed regularly.
The internal audit function also monitors the approach taken by HKLH Management to risk. The internal audit function is independent
of the operating business and reports its findings and recommendations for any corrective action required to the Audit Committee.
The Company’s principal risks and uncertainties are set out on pages 105 to 109.
Risk Governance Structure
HKL Board of Directors
HKL Management
HKL Audit Committee
HKL Compliance
Internal Audit
(‘JM GARM’)
Report Monitor/
Review
Delegate/
Oversee
External Audit (‘PwC’)
The Group’s Management is responsible for:
• Identifying and assessing principal risks and uncertainties to which it is exposed;
• Implementing the most appropriate actions to mitigate and control those risks to an acceptable level;
• Providing adequate resources to minimise, offset or transfer the effects of any loss that may occur while managing acceptable risk/
benefit relationships;
• Monitoring the effectiveness of the systems of risk management and internal control;
• Reporting periodically to the Group’s Board of Directors via Audit Committee and JM GARM on the principal risks and uncertainties; and
• Working with external and internal auditors to monitor and improve its control environment.
103
Corporate Governance
Risk Management Framework
Risk management is integrated into each business unit’s strategic planning, budgeting, decision-making and operations.
Central to this is the continuous and systematic application of:
Risk
Identification
Risk
Treatment
Risk Reporting
& Monitoring
Risk
Assessment
A Risk Management Framework based on ISO 31000 and COSO principles is embedded in the Group to identify, assess and define the
strategies to monitor risks. The risk registers prepared by each business unit provide the basis for the aggregation process, which
summarises the principal risks and uncertainties facing the Group as a whole.
Risk Identification • Identify and document the Group’s exposure to uncertainty with existing strategic objectives
• Adopt structured and methodical techniques to identify critical risks
Risk Assessment • Evaluate risks by estimating likelihood, financial and reputational damage, and the speed at which the risk
materialises, based on its inherent and residual level
• Determine risk rating using the risk heatmap, with four levels of residual risk status
Risk Treatment • Tolerate – accept if within the Group’s risk appetite
• Terminate – dispose or avoid risks were no appetite
• Risks may be accepted if mitigated to an appropriate level via:
• Transfer – take out insurance or share risk through contractual arrangements with business partners; and
• Treat – redesign or monitor existing controls or introduce new controls
Risk Reporting &
Monitoring
• Periodic review of principal risks and uncertainties
• Setting key risk indicators to enhance monitoring and mitigation of risks
• Regular reporting of principal risks and uncertainties from business units to the Group’s Board of Directors
via Audit Committee and JM GARM
104
Principal Risks and Uncertainties
The following are the principal risks and uncertainties facing the Company as required to be disclosed pursuant to the DTRs issued
by the FCA and are in addition to the matters referred to in the Chairman’s Statement, Chief Executive’s Review and other parts of
this Annual Report.
Economic Risk
The Group is exposed to the risk of negative developments in global and regional economies and financial and property markets, either
directly or through the impact such developments might have on the Group’s joint venture partners, associates, bankers, suppliers,
customers or tenants. These developments could include recession, inflation, deflation and currency fluctuations, restrictions in the
availability of credit, increases in financing and construction costs and business failures, and reductions in office and retail rents, office
and retail occupancy, and sales prices of, and demand for, residential and mixed-use developments.
Such developments might increase costs of sales and operating costs, reduce revenues, increase net financing charges, or result in
reduced valuations of the Group’s investment properties or in the Group being unable to meet its strategic objectives.
Mitigation Measures
• Monitor the volatile macroeconomic environment and consider economic factors in strategic and financial planning processes.
• Make agile adjustments to existing business plans and explore new business streams and new markets.
• Review pricing strategies.
Commercial Risk
Risks are an integral part of normal commercial activities and where practicable steps are taken to mitigate them. Risks can be more
pronounced when businesses are operating in volatile markets.
The Group makes significant investment decisions regarding commercial and residential development projects, and these are subject to
market risks. This is especially the case where projects are longer-term in nature and take more time to deliver returns.
The Group operates in regions that are highly competitive, and failure to compete effectively, whether in terms of price, tender terms,
product specification or levels of service, and failure to manage change in a timely manner, can have an adverse effect on earnings
or market share, as can construction risks in relation to new developments. Significant competitive pressure may also lead to
reduced margins.
It is essential for the products and services provided by the Group’s businesses to meet the appropriate quality, safety and sustainability
standards, and there is an associated risk if they do not, including the risk of damage to brand equity or reputation, which might
adversely impact the ability to achieve acceptable revenues and profit margins.
The potential impact of disruption to IT systems or infrastructure, whether due to cyber-crime or other factors, could be significant.
There is also an increasing risk to our businesses from adverse social media commentary, which could influence customer and other
stakeholder behaviours and impact operations or profitability or lead to reputational damage.
Mitigation Measures
• Utilise market intelligence and deploy digital strategies for business-to-consumer businesses.
• Establish customer relationship management programme and digital commerce capabilities.
• Engage in longer-term contracts and proactively approach suppliers for contract renewals.
• Re-engineer existing business processes.
• Adopt best practices with respect to sustainability and transition to net zero, including executing on green building initiatives and
collaborating with our tenants to jointly achieve sustainability goals.
105
Corporate Governance
Principal Risks and Uncertainties continued
Financial and Treasury Risk
The Group’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk.
The market risk the Group faces include i) foreign exchange risk from future commercial transactions, net investments in foreign
operations and net monetary assets and liabilities that are denominated in a currency that is not the entity’s functional currency;
ii) interest rate risk through the impact of rate changes on interest-bearing liabilities and assets; and iii) securities price risks as a result
of its equity investments and limited partnership investment funds which are measured at fair value through profit and loss, and debt
investments which are measured at fair value through other comprehensive income.
The Group’s credit risk is primarily attributable to deposits with banks, contractual cash flows of debt investments carried at amortised
cost and those measured at fair value through other comprehensive income, credit exposure to customers and derivative financial
instruments with a positive fair value.
The Group may face liquidity risk if its credit rating deteriorates or if it is unable to meet its financing commitments.
Mitigation Measures
• Limiting foreign exchange and interest rate risks to provide a degree of certainty about costs.
• Management of the investment of the Group’s cash resources so as to minimise risk, while seeking to enhance yield.
• Adopting appropriate credit guidelines to manage counterparty risk.
• When economically sensible to do so, taking borrowings in local currency to hedge foreign exchange exposures on investments.
• A portion of borrowings is denominated in fixed rates. Adequate headroom in committed facilities is maintained to facilitate the
Group’s capacity to pursue new investment opportunities and to provide some protection against market uncertainties.
• The Group’s funding arrangements are designed to keep an appropriate balance between equity and debt from banks and capital
markets, both short- and long-term in tenor, to give flexibility to develop the business. The Company also maintains sufficient cash
and marketable securities, and ensures the availability of funding from an adequate amount of committed credit facilities and the
ability to close out market positions.
• The Group’s treasury operations are managed as cost centres and are not permitted to undertake speculative transactions unrelated
to underlying financial exposure.
The detailed steps taken by the Group to manage its exposure to financial risk are set out in the Financial Review on page 16 and
Note 29 to the financial statements on pages 68 to 73.
Regulatory and Political Risk
The Group is subject to a number of regulatory regimes in the territories it operates. Changes in such regimes, in relation to matters
such as foreign ownership of assets and businesses, exchange controls, planning controls, tax rules, climate-related regulation and
employment legislation, could have the potential to impact the operations and profitability of the Group.
Changes in the political environment, including political or social unrest, in the territories where the Group operates, could adversely
affect the Group.
Mitigation Measures
• Stay connected and informed of relevant new and draft regulations.
• Engage external consultants and legal experts where necessary.
• Raise awareness via principal’s brand conference with an annual update on new regulations that may have been implemented in
other markets.
106
Principal Risks and Uncertainties continued
Pandemic, War, Terrorism and Natural Disasters Risk
A global or regional pandemic would impact the Group’s business, affecting travel patterns, demand for the Group’s products and
services, and possibly the Group’s ability to operate effectively. The Group’s properties and/or project sites are also vulnerable to the
effects of war and terrorism, either directly through the impact of an act of war and terrorism or indirectly through generally reduced
economic activity in response to the threat of or an actual act of war and terrorism. In addition, a number of the territories in which the
Group operates can experience from time-to-time natural disasters such as typhoons, floods, earthquakes and tsunamis.
Mitigation Measures
• Flexible work arrangements and compliance with hygiene protocols.
• Supply chain stabilisation includes sourcing backup suppliers and better coordination with logistics partners.
• Insurance programmes that provide robust cover for natural disasters including property damage and business interruption.
Key Contracts Risk
Many of the Group’s businesses and projects rely on concessions, management, outsourcing or other vital contracts. Accordingly,
cancellation, expiry or termination, or the renegotiation of any such concession, management, outsourcing or other third-party key
contracts could adversely affect the financial condition and results of operations of certain subsidiaries, associates and joint ventures
of the Group.
Mitigation Measures
• Monitor materials and services providers’ performance and compliance with standards set out in contracts to ensure quality.
• Engage experts to manage the key contracts.
• Diversify suppliers/contractors portfolio to avoid over-reliance on specific suppliers/contractors for key operations.
Cybersecurity Risk
The Group’s businesses are ever more reliant on technology in their operations and face increasing numbers of cyberattacks from groups
targeting both individuals and businesses. As a result, the privacy and security of customer, tenant and corporate information are at
risk of being compromised through a breach of our or our suppliers’ IT systems or the unauthorised or accidental release of information,
resulting in brand damage, impaired competitiveness or regulatory action. Cyberattacks may also adversely affect our ability to manage
our business operations or operate information technology and business systems, resulting in business interruption, lost revenues, repair
or other costs.
Mitigation Measures
• Engage external consultants to perform assessments on the business units with industry benchmarks.
• Define cybersecurity programme and centralised function to provide oversight, manage cybersecurity matters, and strengthen cyber
defences and security measures.
• Perform regular vulnerability assessment and/or penetration testing to identify weaknesses.
• Maintain disaster recovery plans and backup for data restoration.
• Arrange regular security awareness training at least annually and phishing testing to raise users’ cybersecurity awareness.
107
Corporate Governance
Principal Risks and Uncertainties continued
Governance and Misconduct Risk
Effective management of the Group’s risks depends on the existence of an appropriate governance structure, tone from top leadership,
and functioning system of internal controls. Ethical breaches, management override of controls, employee fraud and misconduct, or
other deficiencies in governance and three lines of internal controls may result in financial loss and reputational damage for the Group.
Inadequate capability and diversity in management or the board may also lead to sub-optimal deliberations and decisions.
The Group holds minority stakes in various companies. Lack of control or significant influence over these companies may lead to losses
on the Group’s investment if the companies are mismanaged.
Mitigation Measures
• Established Groupwide mandatory code of conduct that applies to all Group businesses and new joiners.
• Maintain a robust Corporate Governance Framework which includes a whistleblowing channel.
• Compliance department reviews internal controls.
• Maintain functionally independent internal audit function that reports to the Group Audit Committee on risk management, the control
environment and significant non-compliance matters.
• Maintain Crime and General Liability insurance policies with adequate coverage.
Health and Safety Risk
The Group’s businesses engage in construction, renovation or other physical activities that may lead to serious injury or fatal incidents if
work conditions are unsafe or workers do not take due care to observe safety procedures.
Mitigation Measures
• Establish safe working environments and regular safety training for all employees and subcontractors.
• Establish contractual requirements for contractors to comply with high expected levels of safety standards.
• Incorporate site safety plans in tenders and contracts.
• Conduct occupational health and safety awareness campaigns.
• Purchase sufficient insurance coverage including employee compensation and construction of all risks.
• Establish proper contractor selection process.
• Ensure contractors follow the Group’s guidelines, requirements and local regulations.
• Conduct regular audits on operating buildings and construction sites.
• Conduct periodic drills and crisis management procedures for safety incidents.
People Risk
The competitiveness of the Group’s businesses depends on the quality of the people that it attracts and retains. Unavailability of needed
human resources may impact the ability of the Group’s businesses to operate at capacity, implement initiatives and pursue opportunities.
The pandemic has accelerated corporate investments in digital projects and stimulated global consumer demand for e-commerce. This
has created heightened demand and competition across industries for various skillsets, particularly in IT and logistics. Pandemic-related
travel restrictions and a more stringent approach to issuing work visas to non-locals in some of the key markets have also disrupted the
availability of labour across borders, exacerbating labour shortages as economies rebound.
Mitigation Measures
• Ensure proactive manpower planning and succession planning are in place.
• Enhance modern employer branding, training for staff members, compensation and benefits, and talent development plan.
• Implement strategy to promote IE&D across the Group.
• Provide employee retention programmes.
• Establish employee assistance programmes.
108
Principal Risks and Uncertainties continued
Investment, Strategic Transactions and Partnerships Risk
Competition for attractive investment opportunities has increased with the rise of global investment funds and deep pools of low-cost
capital, supporting a greater appetite by investors across sectors for strategic transactions and partnerships to optimise the business
portfolio and enhance growth. As the Group’s businesses pursue projects and investments against keen competitors, they face pressure
on the terms they are willing to secure and accept prized assets and relationships.
In addition, conflicts with strategic partners may arise due to various reasons such as different corporate cultures and management styles.
Mitigation Measures
• Conduct sufficient research, due diligence and evaluation of investment opportunities and potential business partners.
• Develop clear frameworks and levels of authority for investment or partnership decisions.
• Regular performance monitoring and strategic reviews of new businesses and projects.
Environmental and Climate Risk
Global climate change has led to a trend of increased frequency and intensity of potentially damaging natural events for the Group’s
assets and operations. With interest in sustainability surging in recent years from investors, governments and other interested parties,
expectations by regulators and other stakeholders for accurate corporate sustainability reporting and commitments towards carbon
neutrality and other sustainability-related goals are also growing. This brings increasing challenges to the Group and its businesses to
meet key stakeholders’ expectations.
Mitigation Measures
In addition to being addressed under the Group’s Risk Management Framework and processes, mitigation measures are reviewed
and approved by the Group’s Sustainability Committee as part of a broader sustainability framework already in place to execute on
initiatives over the long-term.
Mitigation measures in respect of environmental and climate risks:
• A commitment to the Science Based Targets initiative’s campaign to set decarbonisation targets in line with climate science, to meet
the goals of the Paris Agreement, aimed at limiting global warming to 1.5°C.
• Perform and update climate risk assessments and adaptation action plans based on the recommendations of the Task Force on
Climate-related Financial Disclosures, including implementing measures to address physical risks posed by climate change and
identifying opportunities in the global transition to a low-carbon economy.
• Consistent retrofitting of existing assets, as well as identification and deployment of emerging PropTech solutions to drive
energy efficiency.
• Increase the procurement of renewable energy, including expanding onsite renewable energy generation capacity, to reduce emissions.
• Continue implementing the Group’s robust and long-standing green building certification programme to minimise environmental
impact of existing assets.
• Establish performance-based targets on embodied carbon emissions targeting concrete, rebar and structural steel used for
new developments.
• Support the financial sector’s green transition via increased participation in the sustainable financing markets.
• Test and audit periodically the Group’s Business Continuity Plans.
• Assess emerging ESG reporting standards and requirements, and align the Group’s disclosures to best market practice.
Effectiveness Review of Risk Management and Internal Control Systems
The effectiveness of the Company’s risk management and internal control systems is monitored by the internal audit function, which
reports functionally to the Audit Committee. The findings of the internal audit function and recommendations for any corrective action
required are reported to the Audit Committee and, if appropriate, to the Jardine Matheson’s audit committee.
109
Shareholder Information
Financial Calendar
2023 full-year results announced 7th March 2024
Shares quoted ex-dividend 21st March 2024
Share registers closed 25th to 29th March 2024
Annual General Meeting to be held 8th May 2024
2023 final dividend payable 15th May 2024
2024 half-year results to be announced 1st August 2024*
Shares quoted ex-dividend 22nd August 2024*
Share registers to be closed 26th to 30th August 2024*
2024 interim dividend payable 16th October 2024*
* Subject to change
Dividends
Shareholders will receive cash dividends in United States Dollars, except when elections are made for alternate currencies in the
following circumstances.
Shareholders on the Jersey Branch Register
Shareholders registered on the Jersey branch register can elect for their dividends to be paid in Sterling. These shareholders may
make new currency elections for the 2023 final dividend by notifying the United Kingdom transfer agent in writing by 26th April 2024.
The Sterling equivalent of dividends declared in United States Dollars will be calculated by reference to a rate prevailing on 2nd May 2024.
Shareholders holding their shares through CREST in the United Kingdom will receive cash dividends in Sterling only, as calculated above.
Shareholders on the Singapore Branch Register who hold their shares through The Central Depository (Pte) Limited (‘CDP’)
Shareholders who are on CDP’s Direct Crediting Service (‘DCS’)
Those shareholders on CDP’s DCS will receive their cash dividends in Singapore Dollars unless they opt out of CDP Currency Conversion
Service, through CDP, to receive United States Dollars.
Shareholders who are not on CDP’s DCS
Those shareholders not on CDP’s DCS will receive their cash dividends in United States Dollars unless they elect, through CDP, to receive
Singapore Dollars.
Registrars and Transfer Agent
Shareholders should address all correspondence with regard to their shareholdings or dividends to the appropriate registrar or
transfer agent.
Principal Registrar
Jardine Matheson International Services Limited, P.O. Box HM 1068, Hamilton HM EX, Bermuda
Jersey Branch Registrar
Link Market Services (Jersey) Limited, IFC 5, St Helier, Jersey JE1 1ST, Channel Islands
Singapore Branch Registrar (with effect from 1st March 2024)
Boardroom Corporate & Advisory Services Pte. Ltd., 1 Harbourfront Avenue, Keppel Bay Tower #14-07, Singapore 098632
United Kingdom Transfer Agent
Link Group, Central Square, 29 Wellington Street, Leeds LS1 4DL, United Kingdom
Press releases and other financial information can be accessed through the internet at www.hkland.com.
110
Hongkong Land Holdings Limited
Jardine House
33-35 Reid Street
Hamilton HM 12
Bermuda
Tel +1441 292 0515
E-mail: gpobox@hkland.com
Philip A. Barnes
Hongkong Land Limited
8th Floor, One Exchange Square
Hong Kong
Tel +852 2842 8428
E-mail: gpobox@hkland.com
Michael Smith
Hongkong Land (Beijing)
Management Company Limited
11/F, Office Tower Three
Beijing APM
No. 138 Wangfujing Street
Dongcheng District
Beijing 100006
China
Tel +86 10 6520 4800
E-mail: gpobox.bj@hkland.com
Zhou Peng
Hongkong Land (Chengdu)
Investment and Development
Company Limited
16F, Block A, Weland Centre
No. 246 Dongda Road
Jinjiang District
Chengdu 610065
Sichuan Province
China
Tel +86 28 61556008
E-mail: gpobox.cd@hkland.com
Zheng Hai Chuan
Hongkong Land (Chongqing)
Investment and Holding Co. Ltd.
16/F, Building B, The Ring Centre
No. 118 Hucai Road
Liangjiang New Area District
Chongqing 401122
China
Tel +86 23 6136 7777
E-mail: gpobox.cq@hkland.com
Ling Chang Feng
Offices
Hongkong Land (Hangzhou)
Shengyue Management Co. Ltd.
Unit 603, Building Two
Transfar Science & Technology Building
Jiangnan Innovation Polis
Xiaoshan District
Hangzhou 311231
Zhejiang Province
China
Tel +86 571 87013930
E-mail: gpobox.hz@hkland.com
Hu Pan
Hongkong Land (Nanjing)
Puzhi Management Co., Ltd.
Unit B, 55/F, Nanjing Center
No. 1 Zhongshan South Road
Qinhuai District
Nanjing 210001
Jiangsu Province
China
Tel +86 25 8333 8388
E-mail: gpobox.nj@hkland.com
Huang Lei
Hongkong Land (Philippines)
Consultancy, Inc.
1803 The Taipan Place
F. Ortigas Jr. Road
Ortigas Center
Pasig City 1605
Philippines
Tel +63 2 737 6348
E-mail: gpobox.ph@hkland.com
Jeffrey Lun
Hongkong Land
(Premium Investments) Limited
Unit 702, 7th Floor, EXCHANGE SQUARE
No. 19 & 20
Street 106, Village 2
Sangkat Wat Phnom
Khan Daun Penh, Phnom Penh
Cambodia
Tel +855 2399 2063
E-mail: gpobox.cambodia@hkland.com
Darren O’Shaughnessy
111
Hongkong Land (Shanghai)
Management Company Limited
No. 2599 Longteng Avenue
Xuhui District
Shanghai 200232
China
Tel +86 21 2020 0086
E-mail: gpobox.sh@hkland.com
Shi Guangyu
Hongkong Land (Singapore) Pte. Ltd.
One Raffles Quay
#19-10 South Tower
Singapore 048583
Tel +65 6238 1121
E-mail: gpobox.sg@hkland.com
John Simpkins
Hongkong Land (Wuhan) Investment and
Development Company Limited
4/F, Building No. 5
Wuhan Dream Land
Jinyintan Avenue, Dong Xi Hu District
Wuhan 430048
Hubei Province
China
Tel +86 27 8289 6866
E-mail: gpobox.wh@hkland.com
Wang Yi Bin
HKL (Thai Developments) Limited
Unit B, 20th Floor, Gaysorn Tower
No. 127 Rajdamri Road
Lumpini Sub-District
Pathumwan District
Bangkok 10330
Thailand
Tel +66 2 033 0160 ext. 30168
E-mail: gpobox.thailand@hkland.com
William Bright
Beijing Yee Zhi Real Estate
Consultancy Co., Ltd.
Room 1123A, 11/F
Office Tower 3 Beijing APM
No. 138 Wangfujing Street
Dongcheng District
Beijing 100006
China
Tel +86 10 6520 4800
E-mail: gpobox.bj@hkland.com
Teresa Yang
MCL Land Limited
One Raffles Quay
#19-10 South Tower
Singapore 048583
Tel +65 6238 1121
E-mail: gpobox.mcl@hkland.com
John Simpkins
PT Hongkong Land Consultancy
and Management
Menara Astra, 39th Floor, Suite B2
Jl. Jend. Sudirman Kav. 5-6
Jakarta 10220
Indonesia
Tel +62 21 5088 9822
E-mail: gpobox.indonesia@hkland.com
Syahzan Kudus
Offices
112
Report of the Valuers
To Hongkong Land Holdings Limited
Dear Sirs
Revaluation of Investment Properties Held under Freehold and Leasehold
Further to your instructions, we have valued in our capacity as external valuers the investment properties held under freehold and
leasehold as described in the consolidated financial statements of Hongkong Land Holdings Limited. We are of the opinion that the
market value of the investment properties held under freehold in Cambodia and leasehold in China, Hong Kong and Singapore as
at 31st December 2023, totalled US$26,675,300,000 (United States Dollars Twenty Six Billion Six Hundred Seventy Five Million and
Three Hundred Thousand).
Our valuations were prepared in accordance with the International Valuation Standards by the International Valuation Standards Council
and The HKIS Valuation Standards by The Hong Kong Institute of Surveyors.
We have inspected the properties without either making structural surveys or testing the services. We have been supplied with details
of tenure, tenancies and other relevant information.
In arriving at our opinion, each property was valued individually, on market value basis, calculated on the net income allowing for
reversionary potential, however no allowance has been made for expenses of realisation or for taxation which might arise in the event
of disposal.
Yours faithfully
Jones Lang LaSalle Limited
Hong Kong, 2nd February 2024
113
Major Property Portfolio
at 31st December 2023
Operational
Investment Properties
Attributable
interest Location
Lettable area of the property
Total Office Retail
% (in thousands of square metres)
Alexandra House 100 Hong Kong 35 30 5
Chater House 100 Hong Kong 43 39 4
Exchange Square 100 139
One Exchange Square Hong Kong 53 –
Two Exchange Square Hong Kong 47 –
Three Exchange Square Hong Kong 30 –
Podium Hong Kong – 5
The Forum Hong Kong 4 –
Jardine House 100 Hong Kong 63 59 4
Gloucester Tower 100 Hong Kong 43 42 1
Landmark Atrium 100 Hong Kong 25 – 25
Edinburgh Tower 100 Hong Kong 44 31 13
York House 100 Hong Kong 10 10 –
Prince’s Building 100 Hong Kong 52 38 14
WF CENTRAL 84 Beijing 42 – 42
ONE CENTRAL 49 Macau 18 – 18
One Raffles Link 100 Singapore 29 23 6
One Raffles Quay 33 123
North Tower Singapore 71 –
South Tower Singapore 52 –
Marina Bay Financial Centre 33 284
Tower 1 Singapore 57 3
Tower 2 Singapore 94 6
Tower 3 Singapore 116 8
World Trade Centre 1 50 Jakarta 40 36 4
World Trade Centre 2 50 Jakarta 60 56 4
World Trade Centre 3 50 Jakarta 72 69 3
World Trade Centre 5 50 Jakarta 15 14 1
World Trade Centre 6 50 Jakarta 19 17 2
EXCHANGE SQUARE 100 Phnom Penh 26 17 9
Gaysorn 49 Bangkok 17 5 12
114
Developable area of the property
Development Properties
Attributable
interest Location Total
Construction
completed
Under
construction/
to be
developed
% (in thousands of square metres)
Shougang Project 20 Beijing 199 – 199
Artistic Bay 100 Chengdu 99 99 –
Creative Land 100 Chengdu 84 84 –
Natural Jewel 50 Chengdu 107 107 –
WE City 100 Chengdu 923 740 183
Central Avenue 50 Chongqing 1,118 865 253
Century Land 100 Chongqing 206 46 160
Eternal Land 50 Chongqing 276 – 276
Harbour Tale 50 Chongqing 114 114 –
Landmark Riverside 50 Chongqing 1,326 1,003 323
New Guanyinqiao Project 40 Chongqing 301 – 301
Re City 50 Chongqing 748 219 529
Scholar’s Mansion 50 Chongqing 318 286 32
Yorkville North 100 Chongqing 1,116 1,116 –
Hangzhou Bay 30 Hangzhou 788 304 484
Grand Mansion 100 Nanjing 93 59 34
JL Central 50 Nanjing 254 75 179
Yue City 48 Nanjing 261 54 207
Century Origin 34 Shanghai 55 – 55
Galaxy Midtown 26.7 Shanghai 384 100 284
West Bund 43 Shanghai 285 – 285
Dream Land 100 Wuhan 493 295 198
Lakeward Mansion 66 Wuhan 226 206 20
Origin Land 100 Wuhan 212 72 140
Peak View 50 Wuhan 67 – 67
Clementi Avenue 1 51 Singapore 51 – 51
Copen Grand 50 Singapore 68 – 68
Piccadilly Grand 50 Singapore 39 – 39
Pine Grove Parcel B 50 Singapore 57 – 57
Tembusu Grand 49 Singapore 60 – 60
Ammaia 50 Jakarta 301 – 301
Arumaya 40 Jakarta 24 19 5
Asya 50 Jakarta 492 101 391
Avania 50 Jakarta 124 – 124
Nava Park 49 Jakarta 473 286 187
Project Ruby 37.5 Jakarta 395 – 395
King Kaew 49 Bangkok 179 30 149
Nonthaburi 49 Bangkok 163 41 122
115
Major Property Portfolio
9
7
12
11
9
a
1
0
8
6
1
2
3
4
5
C H ATER ROAD
D E S V O E U X R O A D C E N T R A L
I C E H O U S E S T R E E T
Q U E E N ’ S R O A D C E N T R A L
I C E H O U S E S T R E E T
P E D D E R S T R E E T
M A N Y I U S T R E E T
L U N G W O R O A D
M A N C H E U N G S T R E E T
H A R B O U R V I E W S T R E E T
J A C K S O N R O A D
C O N N A U G H T R O A D C E N T R A L
C O N N A U G H T R O A D C E N T R A L
Q
U
E
E
N
’
S
R
O
A
D
C
E
N
T
R
A
L
DES VO EUX RO AD CEN TRA L
Stock
Exchange
10
11
9
9a
7
6
1 2
4
3
5
12
8
Statue
Square
Mandarin
Oriental
Statue
Square
General
Post Office
HSBC
Standard
Chartered
Bank
Bank of
China
Airport Express Station
1
One Exchange Square
2
Two Exchange Square
3
Three Exchange Square
Mass Transit Railway access
Public car park
Hongkong Land properties
Pedestrian bridges
Hong Kong, China – Central District
ONE CENTRAL | Mandarin Oriental, Macau
Macau, China
4
The Forum
5
Jardine House
6
Chater House
7
Alexandra House
8
Gloucester Tower
9
Edinburgh Tower
9
a The Landmark Mandarin Oriental
10
York House
1 1
Landmark Atrium
12
Prince’s Building
Development Properties
Residential Office Retail Hotel
Investment Properties
Property TypeBusiness Segment
116
*
This rendering is for illustration and reference only, subject to change and government approval.
The Riverside
Hangzhou Bay | The Ring, Hangzhou*
Hangzhou, China
River and City
JL CENTRAL*
Yue City | Mandarin Oriental, Nanjing | The Ring, Nanjing*
Grand Mansion*
Parkville | LCM
Century Origin* Galaxy Midtown | The Ring Live* Irvine Bay
West Bund Financial Hub*
Nanjing, China
Shanghai, China
SZ CENTRAL Project*
Suzhou, China
Development Properties
Residential Office Retail Hotel
Investment Properties
Property TypeBusiness Segment
117
Major Property Portfolio
Chongqing, China
Scholar’s Mansion*
Re City* Harbour Tale
Beryl Grove*
Landmark Riverside Yorkville North | The Ring, Chongqing
Central Avenue | The Ring, Central Avenue Project
River One
The Pinnacle
Hillview
New Guanyinqiao Project*
Eternal Land | CENTRAL MixC Project* Century Land*
*
This rendering is for illustration and reference only, subject to change and government approval.
Development Properties
Residential Office Retail Hotel
Investment Properties
Property TypeBusiness Segment
118
WF CENTRAL | Mandarin Oriental Wangfujing, Beijing
CBD Z
3
Project*
Shougang Project*
Beijing, China
Artistic Bay
WE City | The Ring, Chengdu*
Artisan Bay* Natural Jewel
Creative Land
Chengdu, China
Wuhan Dream Land | The Ring, Wuhan* Lakeward Mansion* Peak View* Origin Land
Wuhan, China
*
This rendering is for illustration and reference only, subject to change and government approval.
Development Properties
Residential Office Retail Hotel
Investment Properties
Property TypeBusiness Segment
119
Major Property Portfolio
Anandamaya Residences Avania*
World Trade Centre
Arumaya*
Ammaia* Nava Park Asya*
Indonesia
One Raffles Quay
Leedon Green Copen Grand*
Tembusu Grand*
Marina Bay Financial Centre
Singapore
One Raffles Link | CityLink Mall
Clementi Avenue 1 Project Pine Grove Parcel B Project Piccadilly Grand*
*
This rendering is for illustration and reference only, subject to change and government approval.
Development Properties
Residential Office Retail Hotel
Investment Properties
Property TypeBusiness Segment
120
*
This rendering is for illustration and reference only, subject to change and government approval.
Development Properties
Residential Office Retail Hotel
Investment Properties
Property TypeBusiness Segment
SFERA* QUINN*
Wangsa Walk Mall
Malaysia
Central Mansions
EXCHANGE SQUARE
3
1
3
QUAYSIDE
Cambodia
British Embassy Site
Gaysorn
Lake Legend Chaengwattana
Lake Legend Bangna-Suvarnabhumi*
The Embassy, Wireless*
Thailand
Mandani Bay* The Velaris Residences*
Philippines
Hongkong Land Holdings Limited
Jardine House Hamilton Bermuda
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