Hysan Development Company Limited

To: Business/Property Editor	Date: 18 February 2025
	For immediate release

SUMMARY

• Turnover increased by 6.2% to HK$3,409 million, and Recurring Underlying Profit increased 6.8% to HK$1,956 million, driven by improved rental income despite challenging market conditions.
• Core Portfolio: Retail turnover grew 9.5%, supported by luxury flagship expansion and positive rental reversion, with year-end occupancy at 92% (reflecting temporary vacancies from tenant mix revamp). Office turnover declined by 1.5%, with narrowing negative rental reversion and stable occupancy at 90%.
• Growth pillars: Lee Gardens Shanghai contributed HK$73 million to turnover, with 70% of office space and 61% of retail space committed to date.
• Lee Garden Eight, together with an integrated walkway system linking Lee Gardens to the MTR, is set for completion in the second half of 2026.
• A second interim dividend of HK81 cents per share was declared.

RESULTS

Notes:

1. Turnover comprises gross rental income from leasing of investment properties located in Hong Kong and Mainland and management fee income from the provision of property management services for the year.
2. Recurring Underlying Profit, a non-HKFRS measure, is a performance indicator of the core property investment business of Hysan Development Company Limited (the "Company" or "Hysan") and its subsidiaries (the "Group") and is arrived at by excluding from Underlying Profit items that are non-recurring in nature.
3. Underlying Profit, a non-HKFRS measure, is arrived at by adding (i) Reported Profit (Loss) excluding unrealized fair value change of investment properties and items not generated from the Group's core property investment business; and (ii) Profit attributable to holders of perpetual capital securities.
4. Reported Profit (Loss) is the profit (loss) attributable to owners of the Company. It is prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants and the Hong Kong Companies Ordinance.
5. Shareholders' Funds are the equity attributable to owners of the Company.
6. Net Asset Value per Share represents Shareholders' Funds divided by the number of issued shares at year-end.

Results

(Hong Kong, 18 February 2025) Hysan Development Company Limited ("Hysan" or the "Group", Hong Kong stock code: 00014) today announced its financial results for the year ended 31 December 2024.

Turnover and Recurring Underlying Profit improved year-on-year by 6.2% and 6.8% respectively. The ramp-up of Lee Gardens Shanghai contributed to the improvement on financial results, while the structural changes continued to put pressure on the office sector.

Shareholders' fund was HK$65,993 million as at 31 December 2024 (2023: HK$67,182 million).

As at 31 December 2024, the Group's investment properties were valued at HK$96,547 million, an increase of 0.6% from HK$96,005 million as at 31 December 2023.

Dividends

The Board of Directors has declared a second interim dividend of HK81 cents per share (2023: HK81 cents per share) which will be payable in cash. Please see the table for all the relevant dates:

Closure of register of members	Wednesday, 5 March 2025
Ex-dividend date	Monday, 3 March 2025
Latest time to lodge transfer documents	Not later than 4pm on Tuesday, 4 March 2025
Record date for second interim	Wednesday, 5 March 2025
Second interim dividend payment date	On or about Wednesday, 19 March 2025

The year 2024 marked a major historical milestone for Hysan as we embarked on a second century of contributing to Hong Kong's development and shaping the city's growth. As an integral special region of China's long-term economic development, Hong Kong's economic future is secure and strong, underpinning our confidence in the future of Hong Kong.

At this significant moment in our history, we are more committed than ever to the future. We recognise that our legacy is more than just the history of our company. It must continue to evolve, based on a strong foundation of trust, shared values, culture and unity, underpinned by our long-term vision. Guided by Hysan's Community Business Model and its focus on inclusion and liveability, we will remain dedicated to adapting, expanding and transforming Lee Gardens for the people who visit, work and live in the area.

The 2024 Market in Review
In 2024, the Hong Kong economy continued to recover gradually from the impact of the pandemic. Private consumption expenditure was still under pressure, amid changes in consumption patterns and competition from our northern neighbours and Japan with its weak yen. Office rental market remained weak due to increased supply and subdued demand. Hysan remains nimble as we continue to address and transform our retail and office offerings so that we shape and capture trends. We provide seamless physical and digital immersive, communal, cultural, trendsetting and authentic experiences that attract high quality and repeat visitors and shoppers. We aim to connect to and interact with different generations and demographics, from locals to tourists.

Entering the Harvest Phase on our Journey of Transformation
The achievement of our evolving business strategy was reflected in the financial contributions that began to materialise during the year.

We started to rejuvenate Lee Gardens two years ago, marking a key milestone in our journey of transformation. In 2024, we began to unveil our new Lee Gardens, welcoming more than 10 newly renovated and expanded maison flagships, including the recent reopening of Hermès, Dior and Cartier in Lee Garden One, Two, Three and Five. We look forward to showcasing more flagships and new concepts throughout the portfolio during 2025.

By 2026, Lee Gardens will be fully connected by an integrated pedestrian walkway system. Upon completion, it will create seamless working, shopping, dining and leisure experience with a pleasant journey for office occupants and shoppers.

The Caroline Hill Road development, a strategic move reinforcing our leading position in the Lee Gardens area, was officially named Lee Garden Eight during the year. Serving as a pivotal piece in our master plan, the project will expand our portfolio area by almost 30%.

For more information, please visit https://doc.irasia.com/listco/hk/hysan/annual/2024/respress.pdf.

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