The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
The Hong Kong-based property group reported revenue of HK $10.32 billion ($1.34 billion) and operating profit of HK $7.37 billion ($958 million) last year, up 15 percent and 14 percent respectively. Its mainland China property rental income in 2021 outpaced that of Hong Kong, reaching HK $6.94 billion($902 million), up 31 percent year-on-year.
The the rental rates of Hang Lung’s two shopping malls in Shanghai reached 100 percent , with rental income of 1.78 billion yuan ($279.8 million) and 1.16 billion yuan ($182.34 million) respectively, up 25 percent and 18 percent year-on-year. Kunming’s mall saw the largest increase in rental income, up 47 percent to 269 million yuan ($42.28 million) Hang Lung’s new Heartland 66 mall in Wuhan, which opened in last March, saw sales reach 1 billion yuan ($157.19 million) by the end of the year.
In a post-earnings conference call with analysts, Ronnie Chan, Hang Lung group’s chairman, pointed out that Shanghai Plaza 66′s annual sales are already 2.7 times the sales of all the group’s retail properties in Hong Kong, and said Shanghai Gang Hui Plaza 66 is also likely to surpass the group’s total sales in Hong Kong in the next year or two.
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How 2021 Changed China’s Fashion Market
A year of crisis and disruption hasn’t slowed the world’s biggest fashion market, but it is reshaping it.
With consumers tightening their belts in China, the battle between global fast fashion brands and local high street giants has intensified.
Investors are bracing for a steep slowdown in luxury sales when luxury companies report their first quarter results, reflecting lacklustre Chinese demand.
The French beauty giant’s two latest deals are part of a wider M&A push by global players to capture a larger slice of the China market, targeting buzzy high-end brands that offer products with distinctive Chinese elements.
Post-Covid spend by US tourists in Europe has surged past 2019 levels. Chinese travellers, by contrast, have largely favoured domestic and regional destinations like Hong Kong, Singapore and Japan.