HKR International : Interim Report 2021/2022

Contents

02 Business and Financial Highlights

03 Management Discussion and Analysis

11 Other Information

1. Report on Review of Condensed Consolidated Financial Statements
2. Condensed Consolidated Statement of Profit or Loss
3. Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
4. Condensed Consolidated Statement of Financial Position
5. Condensed Consolidated Statement of Changes in Equity

1. Condensed Consolidated Statement of Cash Flows
2. Notes to the Condensed Consolidated Financial Statements

Inside Corporate Information and Investors' Calendar

Back

Cover

Business and Financial Highlights

BUSINESS HIGHLIGHTS

SIGNIFICANT EVENTS DURING AND AFTER THE PERIOD UNDER REVIEW

Apr - Acquired a residential redevelopment project on Hollywood Road and Upper Lascar Row

May - Selected as a constituent stock of the MSCI Hong Kong Micro Cap Index

- DB Ice Rink opened

Jun - Announced 2020/21 Annual Results

• Lantau Yacht Club became fully operational
• Completed renovation of West Gate Tower

Jul - Accepted the Government's offer of basic terms and a land premium for the Discovery Bay Master Plan 7.0E

• Poggibonsi set new highs on transaction price and saleable area price per square foot
• Creekside One in Jiaxing sold out on the day it launched

Aug - Held the 2021 Annual General Meeting

- Last La Cresta unit sold

Sep - Entered into an agreement to acquire office units and the right of use of parking lots at a retail cum office building in Hangzhou

- Lantau Yacht Club received the Marina Industries Association (MIA) Five Gold Anchors Award

Oct - Entered into agreements to dispose three properties in Japan, securing an attractive return

- Mansion One in Jiaxing was launched for sale with good sales record

FINANCIAL HIGHLIGHTS

		Six months ended		Year ended
		30 September		31 March
		2021		2020	2021
		HK$'M		HK$'M	HK$'M
Results
Revenue	1,966.5		2,480.9	3,942.3
Profit attributable to owners of the Company	508.0		593.6	897.3
Basic earnings per share (HK cents)	34.2		40.0	60.4
		30 September		31 March
		2021		2020	2021
		HK$'M		HK$'M	HK$'M
Financial Position
Total assets	44,400.2		36,700.1	38,145.0
Total liabilities	17,315.0		10,871.7	11,540.3
Equity attributable to owners of the Company	24,169.7		22,975.9	23,683.9
Net asset value per share (HK$)	16.3		15.5	15.9

02 HKR International Limited

Management Discussion and Analysis

The Board of Directors (the "Board") of HKR International Limited (the "Company") announces the results of the Company and its subsidiaries (the "Group") for the six months ended 30 September 2021 (the "Period").

INTERIM RESULTS

The Group's unaudited revenue for the Period amounted to HK$1,966.5 million, decreased by 20.7% from HK$2,480.9 million in the last corresponding period as the number of sold property units delivered and handed-over to the buyers during the Period was comparatively lower than that for the last corresponding period, thereby putting pressure on the property development segment. The Group's underlying profit excluding net unrealised gains on fair value change of investment properties of HK$374.8 million accordingly declined by 36.5% from HK$590.1 million in the last corresponding period. With the net unrealised gains on fair value change of investment properties included, the profit attributable to owners of the Company amounted to HK$508.0 million, decreased by 14.4% from HK$593.6 million in the last corresponding period.

Basic earnings per share were HK34.2 cents for the Period, compared to HK40.0 cents for the last corresponding period.

INTERIM DIVIDEND

The Board has declared the payment of an interim dividend of HK3 cents per share for the Period to shareholders of the Company whose names will appear on the Registers of Members of the Company on 6 December 2021. The interim dividend will be paid on 20 December 2021. An interim dividend of HK4 cents per share was paid by the Company to its shareholders for the last corresponding period.

CLOSURE OF REGISTERS OF MEMBERS

The main and branch Registers of Members of the Company will be closed from 2 to 6 December 2021 (both days inclusive) for the interim dividend. During this period, no transfer of shares will be registered. In order to qualify for the interim dividend, all properly completed transfer forms accompanied by the relevant share certificates must be lodged for registration with the Company's share registrar in Hong Kong, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong not later than 4:30 p.m. on 1 December 2021.

BUSINESS REVIEW

(Save as otherwise stated below, all projects and operations are 100% owned by the Group.)

PROPERTY DEVELOPMENT AND INVESTMENT

The Group's revenue from property development and investment for the Period, including proportionate shares of joint ventures and associates of HK$535.3 million, was HK$2,042.8 million. The contribution of property development and investment in the Period, including proportionate shares of joint ventures and associates of HK$149.8 million, was HK$586.1 million.

Hong Kong - Property Development

Despite the impact of the COVID-19 pandemic lingering and the ongoing threat of new variants emerging, Hong Kong is well on the road to recovery, with improvements in the economy and employment rate accompanying a greatly improved local epidemic situation. The property market has stabilised on pent-up demand, low interest rates and supportive government policy.

At Discovery Bay (of which the Group holds 50% interest), our two completed property projects, Poggibonsi and IL PICCO, maintained satisfactory sales momentum. During the Period, a total of 38 units of Poggibonsi and 1 unit of IL PICCO were contracted, taking accumulated sales to 182 units and 3 units as of 30 September 2021 respectively. Revenue of 45 units of Poggibonsi and 3 units of IL PICCO was recognised during the Period upon completion in handover and transfer of ownership.

With the Discovery Bay Master Plan 7.0E basic terms agreed and land premium settled, the Group is working on the planning and development of a plot of land in DB North, which increases Discovery Bay's residential land plot by more than 1.3 million square feet to provide over 1,400 units. This paves way for the Group to deliver its long-standing development commitment to the Discovery Bay community.

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