(Yicai) Jan. 31 -- Hong Kong property developer Hang Lung Group recorded a 7 percent increase in rental income from commercial properties, which includes shopping malls and hotels, on the Chinese mainland last year from the year before as business improves.

Of this, income from malls advanced 8 percent year on year to CNY5 billion (USD699.1 million) while that of hotels surged 90 percent to CNY139 million (USD19.4 million), according to the firm’s latest financial report published yesterday.

Hang Lung's net profit dipped 2 percent in 2023 from the year before to HKD2.9 billion (USD371 million), while revenue dropped 1 percent to HKD10.9 billion, the report said.

Revenue from luxury malls advanced 9 percent over the period, while that from ordinary malls was the same as in 2022, the developer said. With the exception of Forum 66 in Shenyang, where there is intense competition, other luxury malls all logged an increase in earnings, ranging from 6 percent at Shanghai’s Grand Gateway 66 in Shanghai to 19 percent at Dalian’s Olympia 66.

And most of Hang Lung’s top-end malls are almost fully rented out. The occupancy rate at Shanghai’s Plaza 66 was 100 percent at the end of last year, and that for the city’s Grand Gateway 66 was 99 percent. The Plaza 66 mall logged a 10 percent growth in revenue and a 24 percent gain in tenant sales. Grand Gateway 66 recorded revenue growth of 6 percent while tenant sales jumped 30 percent.

Hang Lung’s revenue from office rent climbed 3 percent year on year to around CNY1.4 billion (USD196 million) and that from residential and serviced apartments dipped 1 percent to CNY148 million (USD20.8 million).

Hang Lung’s share price [HKG:0010] was trading down 2 percent at HKD9.40 (USD1.20) as of 3.15 p.m. today, giving it a market capitalization of HKD12.8 billion (USD1.6 billion).

Editor: Kim Taylor