Hysan Development Company Limited

To: Business/Property Editor	Date: 24 February 2022
	For immediate release

HIGHLIGHTS

• 2021 was a milestone year for Hysan. The successful tender for Caroline Hill Road Commercial Site significantly expands our core portfolio and creates new opportunities for continued transformation of Lee Gardens. Riding on our strong fundamentals, the Group continues to build strategic pillars to complement our core portfolio over the medium to long term
• The future of the pandemic remains uncertain for Hong Kong and the world. On a positive note, Hong Kong increasingly will be connected to other parts of the Greater Bay Area and has the potential to play an important role in its development
• Turnover and Recurring Underlying Profit decreased year-on-year by 2.7% and 2.8% respectively as COVID-19 continued to pressure the office sector while retail sector started to recover
• Occupancies for Office and Retail portfolios were 94% and 99% respectively
• Despite continued pressure from COVID-19, the Group maintained stable dividend with its resilient core earnings

RESULTS

Notes:

1. Turnover comprises gross rental income from leasing of investment properties located in Hong Kong and management fee income from the provision of property management services for the year.
2. Recurring Underlying Profit is a performance indicator of the Group's core property investment business and is arrived at by excluding from Underlying Profit items that are non-recurring in nature.
3. Underlying Profit is arrived at by excluding from Reported Profit unrealised fair value changes on investment properties and items not generated from the Group's core property investment business.
4. Reported Profit is the profit 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 is 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

Hysan Development Company Limited (Stock Code: 00014) today (24 February 2022) announced the Group's turnover for 2021 was HK$3,608 million, representing a year-on-year decrease of 2.7% from HK$3,710 million for 2020.

Both Recurring Underlying Profit (our key leasing business performance indicator) and Underlying Profit declined by 2.8% to HK$2,330 million in 2021 (2020: HK$2,398 million)

The Group recorded a Reported Profit of HK$1,383 million in 2021 as compared to a Reported Loss of HK$2,547 million in the same period last year, mainly due to fair value changes of investment properties of the Group and its associates between two periods.

Shareholders' Fund was HK$73,870 million as at 31 December 2021 (31 December 2020: HK$73,680 million)

As at 31 December 2021, the investment properties of the Group were valued at HK$95,107 million, an increase of 26.8% from HK$74,993 million as at 31 December 2020, mainly due to successful tender of a commercial site at Caroline Hill Road, Causeway Bay Hong Kong in May 2021 at land premium of HK$19,778 million.

Dividends

The Board of Directors has declared a second interim dividend of HK117 cents per share (2020: HK117cents) which will be payable in cash. Together with the first interim dividend of HK27 cents per share (2020: HK27 cents per share), there is an aggregate distribution of HK144 cents per share. (2020: HK144 cents per share). Please see the table for all the relevant dates:

Closure of register of members	Friday, 11 March 2022
Ex-dividend date	Wednesday, 9 March 2022
Latest time to lodge transfer documents	Not later than 4pm on Thursday, 10 March 2022
Record date for second interim	Friday, 11 March 2022
Second interim dividend payment date	On or about Friday, 25 March 2022

Hysan's core portfolio
Hysan has a renowned mixed-use portfolio in one of Hong Kong's most well-known, premier destinations. This has been our core for close to a century and will continue to be our centre of excellence. Lee Gardens is a tangible brand that people identify with. Our natural advantage includes high traffic flows concentrated in a dense land mass, which gives us the critical mass as a community lab to roll out and test digital solutions that bring convenience and added value to our patrons. Our smart community business model and our street shop curation connect people and promote 'wellness'. Lee Gardens is accessible and inclusive. We engage in responsible and sustainable development, which includes environmental and social considerations. Importantly, Hysan is well known for the quality of care and high standards of service throughout our malls and properties.

We will continue to enhance and rejuvenate our core business, especially with the planned extension to the Caroline Hill Road site. This will expand our core footprint while also adding a notable lifestyle element through the inclusion of a significant green community space. We will also provide major enhancements to our existing portfolio, including the creation of an exclusive destination for luxury retail flagship stores, an update of Hysan Place to maintain its leadership as a trend-setter, and the addition of rich textures to the neighbourhood streetscape.

The world is changing quickly, and there are plenty of threats and, equally, many opportunities. In addition to our core business, we have identified several strategic pillars which will deliver a more balanced, diversified, risk-adjusted and complementary portfolio over the medium to long term.

Our investment thesis for these growth pillars is predicated on a number of factors: that they complement our core, are asset-light, rely less on us being a pure capital provider but leverage our strength to partner with established and specialized operators, and, importantly, provide geographic diversification.

Summary of key achievements in 2021
2021 was a watershed year for Hysan. We executed a series of significant investments in our medium to long-term strategic plan, delivering strategic growth pillars which drive geographic diversification, invest in asset-light operating businesses, and target business opportunities that complement and reinforce our core business. In addition, we started a trading asset pillar with our first "develop and sale" project in Tai Po, which should produce periodic earnings 'pops'.

Our investments in 2021 included winning a tender for the Caroline Hill Road project in Hong Kong; acquiring a commercial complex development in Jing'an, Shanghai; partnering with IWG to promote flexible workspaces in the Greater Bay Area, and investing in New Frontier Group to expand its premium healthcare business throughout Mainland China.

For more information, please visit http://doc.irasia.com/listco/hk/hysan/annual/2021/respress.pdf.

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