Hang Lung (0100) and Hang Lung Properties (0101) recorded underlying net profit declines for the first half of 2026, mainly due to non-cash impairment provisions on properties, as well as an increase in finance costs resulting from reduced capitalized interest, which offset the growth in property leasing performance.
Hang Lung Properties’s underlying net profit for the first half of 2026 fell 10 percent year on year to HK$1.44 billion, while Hang Lung’s underlying net profit decreased by 6 percent to HK$1.12 billion.
The interim dividend was maintained flat at HK$0.012 per share.
“We remain cautiously optimistic about retail market in the second half of the year, expecting steady, single-digit profit growth,” said Adriel Chan Wenbwo, chair of Hang Lung and Hang Lung Properties.
The total revenue of Hang Lung and Hang Lung Properties increased by 22 percent and 23 percent, respectively.
In Hong Kong, the retail tenant sales increased by 3 percent, and occupancy stayed high at 95 percent, the office rental revenue edged up 1 percent, and occupancy rose three percentage points, which the company said shows signs of bottoming out.
Weber Lo Wai-pak, chief executive of Hang Lung and Hang Lung Properties, said mainland mall rental revenue reached a record high, rising 6 percent to 2.57 billion yuan (HK$2.98 billion).
Besides, the Hang Lung V.3 projects in Hangzhou, Wuxi and Shanghai continued to advance as planned, with further updates to be announced in H2 2026.
Lo noted that residential sales in the mainland are facing industry-wide pressure, with hopes that policy measures from the Central Government in October will help stimulate a market recovery. Mainland retail is expected to maintain high-single-digit growth in the third and fourth quarters, with room for fixed rent increases in the long run.
Additionally, the developer plans to launch three hotel projects in Hangzhou, Wuxi and Shanghai within the next 18 months, Lo said. While hotels' individual profitability may not be the most outstanding, Lo added that it could help boost customers in shopping malls.
