Hong Kong immigration focus on business in Hong Kong: On the evening of September 17, Li Ka-shing publicly stated through the CK Property Holdings 2015 interim report that he remains optimistic about the Chinese economy.
Interim report data shows that as of June 30, the group's turnover was HK$19.049 billion, an increase of 24% compared to the same period last year. Total revenue was HK$7.986 billion, profit after tax was HK$7.27 billion, and net current assets were HK$168.581 billion.
Regarding China's economic development, Li Ka-shing stated that economic issues in some countries have impacted the stability of global financial markets, and it is expected that global markets will continue to face certain uncertainties. Regarding the mainland, despite short-term fluctuations in financial markets, given the fundamental factors supporting steady economic development and the central government's various measures to stabilize the economy, it is expected that the mainland's economic performance will remain within a reasonable range. The mainland's "Belt and Road" initiative, as China's primary external economic strategy, will create unlimited business opportunities, and it is expected that Hong Kong will also benefit from this.
Regarding the business of CK Property, Li Ka-shing stated that if no unforeseen incidents occur, the group's overall business in the second half of the year is expected to be better than in the first half. Currently, CK Property's land bank is sufficient for the next four to five years of development. In the future, as more development projects are launched and sold, it is expected that there will be more revenue from property sales.
In the first half of 2015, the recognized property sales turnover for CK Property was HK$15.765 billion, of which property sales revenue in Hong Kong was HK$10.328 billion, property sales revenue in the mainland was HK$5.313 billion, and property sales revenue in Singapore was HK$124 million.
Announcement data shows that as of June 30, CK Property held a total investment property portfolio of approximately 1.5 million square meters, of which 1.3 million square meters are in Hong Kong, while only 200,000 square meters remain in the mainland. Currently, Century Link, a complex under construction by CK Property in Lujiazui, Pudong, Shanghai, is seeking a buyer, with the project quoted at nearly HK$20 billion. It is worth mentioning that Century Link Plaza is the last commercial property held by CK Property in Lujiazui.
Li Ka-shing stated in the announcement that the property market in Hong Kong remained steady in the first half of the year, and market sentiment and property investment in several major cities in mainland China were also stable. If there are no unforeseen major adverse developments, it is expected that the markets in Hong Kong and the mainland will remain stable in the second half of the year, and the long-term development direction of the real estate market will continue to be driven by policy.
The report shows that CK Property's business revenue is mainly composed of four parts: property sales, property leasing, hotel and serviced suite operations, and property and project management. The total turnover for these four items was HK$17.74 billion, of which property sales accounted for HK$14.926 billion, or approximately 84%.
CK Property stated in the announcement that the group will focus on its real estate business, continue to develop core markets in Hong Kong, mainland China, and overseas, continuously increase recurring income from investment properties, and optimize its land bank to balance stability and growth.
Currently, CK Property holds a development land bank of approximately 14.9 million square meters, of which approximately 700,000 square meters are in Hong Kong, approximately 13.8 million square meters in the mainland, and 400,000 square meters overseas.