Hang Lung Sees Sustainable Growth in Core Property Leasing Business


(Hong Kong, July 30, 2015) Hang Lung Properties Limited (HKSE Stock Code: 101) and Hang Lung Group Limited (HKSE Stock Code: 10) today announced solid financial results for the six months ended June 30, 2015.

First Half of 2015 Performance at a Glance:

The core property leasing business across Hong Kong and on the Mainland continued to report steady growth in both rental turnover and operating profit against the backdrop of a challenging business environment. Rental turnover of Hang Lung Properties and Hang Lung Group rose by 9% and 8% to HK$3,862 million and HK$4,148 million, respectively, while rental operating profit was up 3% year-on-year for both companies.

Commenting on the performance, Mr. Ronnie C. Chan, Chairman of Hang Lung Group and Hang Lung Properties, said, "In the midst of persistent headwinds in retail sales in Hong Kong and on the Mainland, we continued to achieve a steady growth in our core business thanks to steadfast management efforts. The decisions we made at certain times, particularly amid tough macro conditions, in optimizing our tenant mix as well as enhancing our assets will enable Hang Lung to thrive in the future. These initiatives for our Hong Kong and mainland China investment properties will further boost our competiveness and revenue."

Anti-opulence measures continued to affect retail sales of luxury goods in mainland China. Despite this, rental turnover of our Mainland leasing portfolio for Hang Lung Properties and Hang Lung Group grew 10% and 8% to HK$2,118 million and HK$2,332million respectively in the first half of 2015, while operating profit was maintained at a similar level to last year.

Mr. Chan added, "We will see the grand opening of Olympia 66 in Dalian in the fourth quarter of this year. It will be our eighth operating project on the mainland and will join the other landmark projects of the Group in the northeast in creating exciting synergies, augmenting our array of world-class developments in the region and enabling us to fully capture market opportunities."

In Hong Kong, our diversified investment properties portfolio was resilient in the face of a sluggish economy. All business segments recorded advancement in terms of turnover and operating profit. A series of asset enhancement initiatives which commenced in 2012 at a number of prime locations have started to bear fruit.

In the first half of 2015, we sold a total of 26 apartments and some car parking spaces. The 18 semi-detached houses on 23-39 Blue Pool Road will be ready for sale when the market environment is in Hang Lung's favor. The Group will closely monitor market trends.

Sound and prudent financial management strategies remain in place to maintain a strong balance sheet with a high degree of liquidity appropriate for Hang Lung's future growth.

The Boards of Directors of Hang Lung Properties and Hang Lung Group have declared an interim dividend of HK17 cents per share and HK19 cents per share, respectively, to be paid on September 30, 2015, to shareholders registered as at September 16, 2015.

For any inquiries, please contact:
Betty Law
Senior Manager
Corporate Communications
BettyLaw@hanglung.com

Jennifer Tam
Manager
Corporate Communications
JenniferZYTam@hanglung.com



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