Hong Kong property conglomerate Hang Lung unveils change of guard at its helm, no major strategic changes seen

“We had been observing Adriel for four years till 2014 and both the board and I felt that he had the potential to take over,” Chan said, adding he was very healthy at the moment.

Adriel Chan, who is 41, joined the group in 2010. He was appointed executive director in 2016 and became the group’s vice chair in September 2020. He said there would be no major changes in the direction of the business and company’s strategy, “thanks to my father’s stewardship and guidance over the years”.

The announcement came shortly after the company reported a small increase in net profit for 2023 from a year ago.

Hong Kong’s ‘moneymaking genes’ help it trump charmless Singapore: Ronnie Chan

“Moving into 2024, we remain vigilant as uncertainties and challenges continue in the markets in which we operate,” the company said in a statement. “Geopolitical concerns persist in mainland China, resulting in sluggish economic growth and weak currency outlook, while Hong Kong works to re-engineer its international competitiveness and appeal.”

Shares of Hang Lung Properties slumped 8.4 per cent to HK$9.05, a 20-year low, after posting its biggest daily fall since April 2022, according to Bloomberg data.

It is now down 78 per cent from the peak struck in November 2010.

Hang Lung Properties is a part of Hang Lung Group, whose shares weakened 2.5 per cent to HK$9.60.

Hang Lung Properties reported a 3.5 per cent rise in profit attributable to shareholders for the year ended December 31, 2023.

Regarding the current business environment, Ronnie Chan said it was time to preserve capital and become more prudent about money, as it was difficult to see a big improvement in the overall economy over the next few years, and added that “fortunately the group has a better foundation and a lower gearing ratio”.

Hang Lung’s capital expenditure in 2024 is expected to hit a record HK$6 billion (US$767.7 million), with the area under construction also hitting a peak of about 4 million sq ft.

Both its mainland China and Hong Kong portfolios grew, with overall rental revenue increasing by 3 per cent to HK$10,316 million for the year ended December 31, 2023.

The group will pay a final dividend of HK$0.6 per share for 2023, bringing the full-year dividend to HK$0.78 per share.

Hang Lung was founded by Ronnie Chan’s father Chan Tseng-hsi in 1960. Ronnie Chan joined the group in 1972, and has been chairman since 1991. He will not take up a non-executive director role on the boards after his retirement, according to the statement.

Hang Lung Group, the parent company of Hang Lung Properties, reported a 3 per cent year-on-year increase in net profit to HK$2.8 billion, while revenue contracted 0.5 per cent to HK$10.8 billion.