Hong Kong

Chairman’s Statement
Dear Shareholders
On behalf of your Board, I am pleased to present my report on the operations of the Group
for the financial year ended 31 December 2012.
Profit and Net Asset Value
Attributable to Shareholders
The Group’s underlying profit attributable to equity shareholders
(before the fair value change of investment properties) for the
year ended 31 December 2012 amounted to HK$7,098 million,
representing an increase of HK$1,538 million or 28% over
HK$5,560 million for the corresponding year ended 31 December
2011. Underlying earnings per share were HK$2.97 (2011:
HK$2.41).
Including the fair value change (net of non-controlling interests
and deferred tax) of investment properties, the Group reported
profit attributable to equity shareholders for the year ended 31
December 2012 was HK$20,208 million, representing an increase
of HK$3,024 million or 18% over HK$17,184 million for the
corresponding year ended 31 December 2011. Reported earnings
per share were HK$8.47 (2011: HK$7.44).
At 31 December 2012, the net asset value attributable to equity
shareholders amounted to HK$205,212 million (or HK$84.97 per
share), 11% higher than the amount of HK$185,336 million (or
HK$78.23 per share) at 31 December 2011. Net debt (including
the amount of HK$6,125 million (2011: HK$8,583 million) due
to a wholly owned subsidiary of Henderson Development Limited
which is controlled by the private family trusts of Dr Lee Shau
Kee) amounted to HK$35,205 million (2011: HK$36,890 million)
giving rise to a gearing ratio of 17.2% (2011: 19.9%).
Dividends
Your Board recommends the payment of a final dividend of
HK$0.74 per share to shareholders whose names appear on the
Register of Members of the Company on Tuesday, 11 June 2013,
and such final dividend will not be subject to any withholding tax in
Hong Kong. Including the interim dividend of HK$0.32 per share
already paid, the total dividend for the year ended 31 December
2012 will amount to HK$1.06 per share (2011: HK$1.00 per share).
The proposed final dividend will be payable in cash, with an option
granted to shareholders to receive new and fully paid shares in
lieu of cash under the scrip dividend scheme (“Scrip Dividend
Scheme”). The new shares will, on issue, not be entitled to the
proposed final dividend and bonus shares, but will rank pari
passu in all other respects with the existing shares. The circular
containing details of the Scrip Dividend Scheme and the relevant
election form will be sent to shareholders.
The Scrip Dividend Scheme is conditional upon the passing of
the resolution relating to the payment of the final dividend at the
forthcoming annual general meeting of the Company and the
Listing Committee of The Stock Exchange of Hong Kong Limited
granting the listing of and permission to deal in the new shares to
be issued under the Scrip Dividend Scheme.
The final dividend will be distributed, and the share certificates
to be issued under the Scrip Dividend Scheme will be sent to
shareholders on Monday, 15 July 2013.
Issue of Bonus Shares
The Board proposes to make a bonus issue of one new share credited
as fully paid for every ten shares held to shareholders whose names
appear on the Register of Members on Tuesday, 11 June 2013. The
relevant resolution will be proposed at the forthcoming annual
general meeting, and if passed and upon the Listing Committee of
The Stock Exchange of Hong Kong Limited granting the listing of
and permission to deal in such new shares, share certificates of the
bonus shares will be posted on Monday, 15 July 2013.
Business Review - Hong Kong
In 2012, low interest rates, rising inflation as well as the low supply
of housing units during the year led to the sustaining of high property
prices. In response, the Government has launched a number of
suppressive measures to cool down property prices. To illustrate
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Henderson Land Development Company Limited
Annual Report 2012