Don't bite hand that feeds you, Ronnie Chan slams protesters

Hang Lung Properties (0101) chairman Ronnie Chan Chi-chung said yesterday at the earnings report event that Hong Kong's retail and tourism industries are struggling to pick up in the short term and poured scorn on the protesters.

"Two weeks ago, a group of mainland high-tech investors came to Hong Kong to hold a seminar. When two female secretaries walked from one hotel to another - a 200-meter path - they were heard talking in Mandarin. They ran into black-clad protesters and were threatened," he said. "They were so scared that they immediately went back to the hotel."

"Hong Kong people should be good at doing business. It can't be helped if others put money in your pocket and you beat them back," Chan said.

Hang Lung Properties' full-year underlying net profit, which excludes fair value changes of properties, rose 9 percent to HK$4.47 billion, while net profits shrank by 24 percent year-on-year to HK$6.17 billion in 2019. Earnings per share last year were HK$1.37, and a final dividend of 59 HK cents was declared.

Revenue from leasing business grew by 5 percent year-on-year to HK$8.56 billion, with 53 percent coming from mainland projects. Leasing revenue from the Hong Kong market increased by 2 percent.

Chief executive Weber Lo Wai-pak said the company has helped more than 70 percent of tenants through various measures including rent reduction - depending on their operational environment, location and their business categories. Revenue from its commercial projects in Causeway Bay slid 1 percent to HK$628 million year-on-year. Retail sales also fell 10 percent with the occupancy rate falling two points to 97 percent.

As for the luxury goods market in the mainland, Chan noted that the mainland government has narrowed the difference of luxury goods prices in the mainland and overseas. "The products of some brands are even cheaper in the mainland than in Hong Kong," he said.

Hang Lung Properties said Amoycan Industrial Centre in Ngau Tau Kok will be redeveloped into residential units for sale with commercial areas on the lower floors. The total gross floor area is about 155,000 square feet, with the project aiming to be completed in 2023.

Meanwhile, parent Hang Lung Group (0010) said full-year underlying profit surged by 44 percent to HK$3.8 billion last year, and net profit rose by 29 percent to HK$6.82 billion last year. Earnings per share were HK$5.01, while a final dividend of 63 HK cents was declared.