Hang Lung Properties Limited

Hang Lung Properties Limited is a premium retail and commercial property investment company focused mainly on leasing. According to the letter to shareholders in its 2025 annual report, the company’s founder Chan Tseng-hsi established a business model centred on developing residential properties for sale in Hong Kong; the company’s honorary chair Ronnie C. Chan later expanded the business into mainland China, shifting the focus to premium retail and commercial properties held mainly for leasing. Current chair Adriel Chan recalled in the letter that this mainland investment property model was known as “Hang Lung V.2”, and that building on it, the company launched “Hang Lung V.3” in 2025, adding specific strategic asset-light projects in the cities where it already operates, in order to consolidate its existing assets and leverage them to operate new leased assets. As these projects are operated mainly under long-term leases, capital expenditure is significantly lower and project cycles are much shorter, but most of the new assets are non-premium properties and their average rent levels are likely to be lower than those of existing assets; the letter pointed out that this was a deliberate choice.

According to the letter to shareholders in the 2020 annual report, when Ronnie C. Chan took over as chairman in January 1991, the company had not yet invested in the mainland; the letter reviewed a series of events including Hong Kong’s handover, the Asian financial crisis, the 2003 SARS outbreak (the worst-hit area, Amoy Gardens, was a development of the company, and its shopping mall remains a company property to this day) and the 2008 global financial crisis, and pointed out that the social unrest in Hong Kong in the second half of 2019 had dealt a heavy blow to the economy, while Hong Kong rental income at that time still accounted for more than 40% of the company’s total rental income; although the COVID-19 pandemic was harmful to the Hong Kong leasing business, it was beneficial to the mainland business, and over the previous six months sales of a previously underperforming top luxury brand in the company’s shopping malls had doubled, while better-performing brands had even tripled. According to the letter to shareholders in the 2018 annual report, the company’s first rental property in the mainland, Grand Gateway 66 in Shanghai, opened in 1999, followed the next year by Plaza 66 in Shanghai; according to the letter to shareholders in the 2023 annual report, in the 23 years from the opening of its first mainland commercial property in December 1999 to 2022, its mainland leasing portfolio grew year on year in renminbi terms without interruption. According to chief executive officer Weber Wai Pak Lo in a later interview, after Ronnie C. Chan took over as chairman he foresaw that the mainland economy was about to enter a golden opportunity and launched a mainland expansion plan; in 1992 the company was among the first to enter Shanghai, participating in a mixed-use property project that later became Grand Gateway 66 in Shanghai, raising the curtain on the development of the “Hang Lung Plaza” brand.

According to Caixin, Ronnie C. Chan once pointed out that commercial property projects usually struggle to generate positive cash flow in their first few years after completion and need patient cultivation; if a company is too highly leveraged, early rental income is insufficient to cover interest, and it can easily fall into financial difficulty. He added that Hang Lung Properties invested entirely with its own funds and had zero leverage. In the same report, Ronnie C. Chan argued that low professionalism and poor execution were the main reasons for the low returns of commercial property in mainland China; professionalism shows in every detail, from land acquisition strategy and staffing to project design, construction and development experience, and using the shortcut of “winning by volume” would be “very foolish”. He also said the company’s return was about 30% without borrowing and could reach 45% with modest borrowing. He was also sceptical of real estate investment trusts, saying that “anyone who wants to do REITs is unsure of themselves and has not thought things through”, and advocated cashing out only once the market had matured, growth had slowed and income had stabilised, then investing in new projects with higher returns. On residential developers also doing commercial property, he described the risk as “a person standing with one leg in each of two boats, which is very dangerous”, and warned against treating the entry of big-name companies as a reason to follow suit, saying that in the high-end commercial property business the returns of the first-placed and second-placed players typically differ by a factor of one to two. According to an April 2011 Caixin report, industry insiders said that the Hang Lung Plaza projects that Hang Lung Properties built in mainland China were almost all loss-making for their first eight years, but from the eighth year onward returned 50% a year; Ronnie C. Chan once explained that Hang Lung Plaza was financed entirely with the company’s own funds and without borrowing because returns in the early years were too low even to cover loan interest, which shows how hard commercial operations are. According to Caixin, Ronnie C. Chan told a Caixin reporter that Hong Kong commercial property developers were “winners that have passed the test of the 1998 financial crisis”; the report also noted that Hang Lung Properties chose the best locations and operated them to the utmost, and that after more than twenty years in mainland China it had never entered the Beijing market because it had not found a satisfactory site; even amid the industry’s overall downturn, its first-half gross margin was still close to 81%.

According to the letter to shareholders in the 2014 annual report, for the year ended December 31, 2014, the company’s turnover soared 86% to HK$17.03 billion, net profit attributable to shareholders jumped 62% to HK$11.704 billion, and earnings per share rose correspondingly to HK$2.61; excluding revaluation gains, the related deferred tax and minority interests, underlying net profit after tax nearly doubled to HK$10.022 billion, and underlying earnings per share rose correspondingly to HK$2.24. The board recommended a final dividend of HK$0.59 per share, an increase of 1.7% over the previous year; if approved by shareholders, total dividends for the year would be HK$0.76 per share, an increase of 1.3% over the previous year. The letter recalled that during the year the company sold 261 units at The HarbourSide, 151 units at The Long Beach and 93 car parking spaces, for total revenue of about HK$9.8 billion and a profit of more than HK$7.4 billion, a combined profit margin of 76%, with the profit margin at The HarbourSide reaching 78% and at The Long Beach 62%; at that time only ten units and 153 car parking spaces remained at The HarbourSide. The letter also noted that the company had been acquiring land outside Shanghai since 2005, with completed projects coming to market from 2010; total turnover from investment properties that year exceeded HK$7.2 billion, of which 46% came from Hong Kong and 54% from the mainland, and overall rental income rose 9%, by 6% in Hong Kong and 11% in the mainland. The letter further stated that the 79-day Occupy Central protest had hurt tenant sales in Mong Kok and Causeway Bay, with the group’s tenants recording an 18% drop in business; apart from Parc 66 in Jinan, rental income at all of the group’s mainland properties grew, with tenant retail sales at Palace 66 in Shenyang rising 12%, while those at Plaza 66 in Shanghai and Parc 66 in Jinan fell 4% and 2% respectively. In the letter, Ronnie C. Chan said that the mainland investment property business was facing its biggest challenge in fifteen years, and expected the leasing outlook for the coming year to be similar to that of 2014; at that time the company still held 708 unsold units at The Long Beach.

According to the 2015 annual report’s letter to shareholders, for the year ended 31 December 2015, because far fewer residential units were sold than in the previous year, the company’s turnover fell 47% to HK$8.948 billion; net profit attributable to shareholders fell 56% to HK$5.092 billion, and earnings per share fell correspondingly to HK$1.13; excluding revaluation gains, related deferred tax and non-controlling interests, underlying net profit attributable to shareholders fell 56% to HK$4.387 billion, and underlying earnings per share fell correspondingly to HK$0.98. The board recommended a final dividend of HK$0.58 per share, payable on 18 May 2016 to shareholders on the register on 5 May 2016; if approved by shareholders, total dividends for the year would be HK$0.75 per share. In the letter, Ronnie C. Chan recalled that he had first said in July 2012 that the Chinese economy had entered a long, harsh winter, and that by the time of writing the situation had worsened; he believed the economy would certainly recover, but given the structural causes of the downturn and its persistence, the recovery would be halting. He also noted that Beijing would continue to stimulate the economy with public investment, but after many years of rapid growth the economic base was much larger, so the same investment would produce much less growth; with government debt also higher than before, large amounts of new investment were increasingly difficult, and public-private partnerships might be one way forward. According to a Caixin report of 5 June 2015, Ronnie C. Chan had earlier told a Caixin reporter in an interview that the more chaotic the market, the more developers with strong financial resources and mature operating models and experience would win over tenants and consumers and emerge as the ultimate winners.

According to the letter to shareholders in the 2016 annual report, for the year ended December 31, 2016, the company’s revenue jumped 46% over the previous financial year to HK$13.059 billion; net profit attributable to shareholders grew 22% to HK$6.195 billion, and earnings per share rose correspondingly to HK$1.38; excluding property revaluation losses and related effects, underlying net profit attributable to shareholders jumped 45% to HK$6.341 billion, and underlying earnings per share surged to HK$1.41. The board recommended a final dividend of HK$0.58 per share, payable on May 18, 2017, to shareholders on the register of members on May 5, 2017; if approved by shareholders, total dividends per share for the year would be HK$0.75. The letter recalled that, excluding the effect of the depreciation of the renminbi against the Hong Kong dollar, rental income in Hong Kong and the mainland grew 5% and 1% respectively; the basement of Plaza 66 in Shanghai, accounting for about 13% of the mall’s total leasable area, was closed for an enhancement programme, and some tenants at Grand Gateway 66 in Shanghai also needed to close because an enhancement programme was to begin in the first quarter of 2017; of the six properties outside Shanghai, four recorded higher occupancy rates while Forum 66 in Shenyang and Riverside 66 in Tianjin declined, and the newly completed Olympia 66 in Dalian lifted total revenue slightly by 1%. The letter also noted that office buildings then accounted for 23% of mainland rental income and 27% of operating profit, while shopping malls accounted for 77% and 73% respectively; mainland properties accounted for 52% of total rental income and Hong Kong for 48%, while their shares of operating profit were 44% and 56% respectively. That year the company sold a total of 441 residential units at satisfactory prices, with an average profit margin of over 60%, total revenue of HK$5.3 billion and operating profit of HK$3.2 billion, and also sold the first two semi-detached house units at Blue Pool Road; at the time of writing, 87 units at The Long Beach and one luxury apartment at The HarbourSide remained for sale. The letter further mentioned that the company had signed a contract with Conrad Hotels to convert the top 19 floors of the office tower at Forum 66 in Shenyang into a five-star hotel with 315 guest rooms, expected to open in 2019; tenant retail sales at Palace 66 in Shenyang rose 12% that year, rental income rose 4%, the occupancy rate rose 3 basis points to 93%, and renewal rents were raised by 4%.

According to the letter to shareholders in the 2017 annual report, for the year ended December 31, 2017, because fewer residential units were sold, the company’s revenue decreased 14% to HK$11.199 billion; net profit attributable to shareholders grew 31% to HK$8.124 billion, and earnings per share rose correspondingly to HK$1.81; excluding all effects of property revaluation gains, underlying net profit attributable to shareholders was down 13% to HK$5.53 billion. The board recommended a final dividend of HK$0.58 per share, payable on May 16, 2018, to shareholders on the register of members on May 3, 2018; if approved by shareholders, total dividends per share for the year would be HK$0.75, the same as the previous year. The letter recalled that retail sales in the mainland and Hong Kong continued to recover, with the recovery in mainland luxury sales particularly strong; sales at all shopping malls improved over the same period of the previous year, with increases ranging from 1% at Forum 66 in Shenyang to 99% at Olympia 66 in Dalian, Plaza 66 in Shanghai climbing 26%, and most malls rising by 10% to 12%; at Grand Gateway 66 in Shanghai, an average of 20% of retail space was affected by the enhancement programme, at one point reaching 30%, yet like-for-like rental income was 7% higher than in the same period of the previous year; rental income from Shanghai offices fell 8%, mainly because it took time to replace major tenants at Plaza 66 in Shanghai. The letter also noted that the company sold 226 units at The Long Beach that year, leaving only ten units for sale at year-end, and that the last of the 1,122 luxury units at The HarbourSide was also sold in the first half of the year.

According to the letter to shareholders in the 2018 annual report, for the year ended December 31, 2018, because residential unit sales fell sharply, the company’s revenue decreased 16% to HK$9.408 billion; net profit attributable to shareholders fell by less than 1% to HK$8.078 billion, and earnings per share fell back correspondingly to HK$1.80; excluding property revaluation gains and all related effects, underlying net profit attributable to shareholders decreased 26% to HK$4.093 billion. The board recommended a final dividend of HK$0.58 per share; if approved by shareholders, total dividends per share for the year would be HK$0.75, with the final dividend payable on May 21, 2019, to shareholders on the register of members on May 7, 2019. The letter recalled that after Plaza 66 in Shanghai completed a large-scale renovation, its rental income grew by more than 20% in 2017 and rose a further 12% in 2018, with tenant sales also up 13%; the large-scale asset enhancement programme at Grand Gateway 66 in Shanghai was still under way, with 19% of its prime floor space temporarily closed, and the works were expected to be completed by the end of that year. Outside Shanghai, excluding Forum 66 in Shenyang, whose rental income declined, and Riverside 66 in Tianjin, whose performance was stable, the other four properties recorded average rental growth of 13%, with the largest increase of 20% at Olympia 66 in Dalian and an increase of 19% at Center 66 in Wuxi. The letter also mentioned that at the end of May 2018 the company successfully bid for land in Hangzhou and appointed the architectural firm KPF as design architect for the Hangzhou project, which was expected to be completed in phases from 2024; the company then expected the second office tower at Center 66 in Wuxi to open in the second half of 2019, and was applying to the government to build two luxury serviced apartment towers and a small boutique hotel in the second phase; the hotel above the office tower at Forum 66 in Shenyang, to be operated by Conrad, would also open before the end of 2019; the shopping mall and office tower at Spring City 66 in Kunming would both open in the closing months of 2019, with mall and office areas of 160,000 square metres and 180,000 square metres respectively, and nearly 80% of the retail floor space had already been leased; the shopping mall and office tower at Heartland 66 in Wuhan had topped out in 2018 and would open in 2020.

According to the 2019 annual report’s letter to shareholders, for the year ended 31 December 2019, because the company sold almost no Hong Kong residential units, revenue fell 6% to HK$8.852 billion; net profit attributable to shareholders fell 24% to HK$6.172 billion, and earnings per share fell correspondingly to HK$1.37; excluding the effect of property revaluation gains, underlying net profit attributable to shareholders rose 9% to HK$4.474 billion, and underlying earnings per share increased to HK$0.99. The board recommended a final dividend of HK$0.59 per share, payable on 20 May 2020 to shareholders on the register on 7 May 2020; if approved by shareholders, total dividends for the year would be HK$0.76 per share. The letter explained that the board’s cut of one cent in the dividend at the end of 2015 was meant to signal to the market that conditions were very weak and likely to persist, and had no material effect on cash flow; with the mainland business now growing, the board considered the time right to raise the dividend. The letter also noted that the company’s rental revenue rose 2% year on year in 2019; in renminbi terms the mainland business collected 12% more rent, 8% in Shanghai and 19% in other cities, and excluding newly opened properties, rental revenue of the mainland portfolio grew 10%. Rental revenue at Plaza 66 in Shanghai rose 14%, and Grand Gateway 66 in Shanghai still recorded a 6% increase despite its asset enhancement programme; four of the six shopping malls outside Shanghai recorded double-digit revenue growth, with Palace 66 in Shenyang, Center 66 in Wuxi and Olympia 66 in Dalian up 20%, 22% and 28% respectively, Parc 66 in Jinan up 10%, and Forum 66 in Shenyang and Riverside 66 in Tianjin up 3% and 4% respectively. The letter further stated that over the seven years from 2019 to 2025 the company would complete nearly 380,000 square metres of mainly commercial space each year. According to a February 2019 Caixin report, Ronnie C. Chan told a Caixin reporter on 30 January 2019 that in August 2017 everyone believed mainland developers were about to take over the Hong Kong property market and he alone disagreed; about a year later, mainland developers had all but stopped buying land in Hong Kong, and in his view they had not lasted even a year. The report also mentioned that Ronnie C. Chan had repeatedly said in public that he could not understand mainland developers bidding high prices for land in Hong Kong; in July 2017 he wrote a 15-page letter to shareholders in Hang Lung Group’s interim report, stating bluntly that mainland developers newly arrived in Hong Kong had not been tested by a local property bear market and would find it hard to put down roots. The report further noted that in the preceding few years Hang Lung had not won any land in Hong Kong’s public land auctions and had launched no new residential projects; its property sales in 2018 plunged 66%, and its development focus shifted to mainland cities such as Shanghai, Hangzhou and Dalian.

According to the letter to shareholders in the 2021 annual report, despite the impact of the COVID-19 pandemic and the absence of property sales revenue during the period, the company’s revenue for the year ended December 31, 2021, still increased 15% to HK$10.321 billion; net profit attributable to shareholders was HK$3.868 billion, with earnings per share of HK$0.86; excluding all effects of property revaluation, underlying net profit attributable to shareholders rose 4% to HK$4.365 billion, and underlying earnings per share increased to HK$0.97. The board recommended a final dividend of HK$0.60 per share, payable on May 19, 2022, to shareholders on the register of members on May 4, 2022; if approved by shareholders, total dividends per share for the year would be HK$0.78. The letter recalled that leasing revenue that year exceeded HK$10 billion, a record high, with the mainland market accounting for 67% of the company’s total leasing revenue; in renminbi terms, leasing revenue from the ten shopping malls grew 25%, or 21% excluding Heartland 66 in Wuhan, which opened in March 2021; leasing revenue at the six premium malls grew by between 12% and 47%, an average increase of 25%, while the three sub-premium malls grew 2%. The letter also noted that Olympia 66 in Dalian had been successfully upgraded from sub-premium to the premium category, the third mall to be successfully upgraded after Center 66 in Wuxi and Grand Gateway 66 in Shanghai; Spring City 66 in Kunming and Heartland 66 in Wuhan opened in August 2019 and March 2021 respectively. According to Weber Wai Pak Lo in a later interview, Heartland 66 in Wuhan has 177,000 square metres of commercial space and follows the premium family-oriented shopping centre positioning that had succeeded in the company’s earlier Shanghai projects; by the end of 2021 the mall’s occupancy rate had reached 84%, and in less than ten months of operation leasing revenue reached 153 million yuan and tenant sales nearly 1 billion yuan, with more than 250 brands brought in, 110 of which entered as Wuhan exclusives, first stores or flagship stores; with the opening of Heartland 66 in Wuhan, the company also launched its premium serviced residence brand “Hang Lung Residences” in the mainland, the first project being Wuhan Hang Lung Residences. Weber Wai Pak Lo also mentioned in the interview that the company had developed 11 projects in nine mainland cities, that in 2021 leasing revenue of the mainland property portfolio jumped 23% in renminbi terms to 5.757 billion yuan, that leasing revenue at all of its mainland premium malls recorded double-digit growth, with tenant sales rising by between 33% and 89% year on year, and that after Olympia 66 in Dalian was transformed into a mall filled with luxury brands, its revenue in the second half of 2021 was 45% higher than in the first half; he also said that presales of Wuhan Hang Lung Residences would begin in 2022, and that the company expected to unveil the Wuxi Hang Lung Residences project.

According to the letter to shareholders in the 2022 annual report, for the year ended December 31, 2022, the company’s overall revenue remained stable at HK$10.347 billion; mainly because the renminbi depreciated from the second quarter of 2022, leasing revenue edged down 3% to HK$10.031 billion. Excluding all effects of property revaluation, underlying net profit attributable to shareholders fell 4% to HK$4.199 billion, and underlying earnings per share fell correspondingly to HK$0.93; including all effects of property revaluation, net profit attributable to shareholders fell by less than 1% to HK$3.836 billion, with earnings per share of HK$0.85. The board recommended a final dividend of HK$0.60 per share, payable on May 19, 2023, to shareholders on the register of members on May 5, 2023; if approved by shareholders, total dividends per share for the year ended December 31, 2022, would be HK$0.78. The letter recalled that in the first half of 2022, six of the company’s ten mainland shopping malls were completely closed at various times, the two Shanghai malls were closed for two months, and foot traffic and sales in the second quarter both fell by more than 70% compared with the same period of 2021; for the full year, total visitors to the ten malls fell 21%, but total tenant sales fell only 9%. Despite the poor business environment, mainland leasing revenue for the full year still grew 1% in renminbi terms; because the renminbi depreciated 3.1% against the Hong Kong dollar, overall mainland leasing revenue fell by about 3% in Hong Kong dollar terms. Total leasing revenue from office buildings increased 11% compared with 2021. The Hong Kong commercial property leasing market remained weak, with retail and office leasing revenue falling 3% and 5% respectively, but both improved in the second half, rising 3% and 1% respectively. The letter also mentioned that Heartland 66 in Wuhan opened at the end of March 2021, and that its foot traffic for the whole of 2022 was 2% lower than in 2021, but tenant sales still grew significantly, by 158%.

According to the letter to shareholders in the 2023 annual report, for the year ended December 31, 2023, the company’s overall revenue was flat with 2022 at HK$10.316 billion, coming entirely from leasing revenue, which grew 3% over the previous year; underlying leasing net profit attributable to shareholders edged up 1% to HK$4.177 billion, and including all effects of property revaluation, net profit attributable to shareholders increased 3% to HK$3.97 billion. The board recommended a final dividend of HK$0.60 per share, payable on or around June 14, 2024, to shareholders on the register of members on May 10, 2024; if approved by shareholders, total dividends per share for the year would be HK$0.78. The letter recalled that in 2023, with no additional floor area, mainland commercial leasing revenue still reached a record high. The letter also mentioned that the company had acquired a site in Hangzhou in 2018 and quickly begun construction, and that Westlake 66 in Hangzhou was regarded as a strategic project with the potential to become the city’s leading shopping mall; as of the end of that year, the net debt to equity ratio was 31.9%, the net debt balance was about HK$45 billion, and the net debt level was expected to peak within one or two years.

According to the letter to shareholders in the 2024 annual report, 2024 was full of challenges, and in renminbi terms it was the first time in 24 years that the company recorded a decrease in mainland leasing revenue. During the year, the company’s total revenue rose 9% to HK$11.242 billion, partly because there was no residential property sales revenue in 2023; core leasing revenue fell 6% to HK$9.515 billion, with mainland leasing revenue down 5% and Hong Kong down 9%. Owing to lower turnover rents and higher interest costs, underlying leasing net profit attributable to shareholders decreased 18% to HK$3.422 billion; the company made provisions for some properties held for sale, resulting in a net loss on property sales, and including the revaluation of the property portfolio, net profit after tax attributable to shareholders decreased 46% to HK$2.153 billion. The board recommended a final dividend of HK$0.40 per share, payable on June 16, 2025, to shareholders on the register of members on May 9, 2025; if approved by shareholders, total dividends per share for the year ended December 31, 2024, would be HK$0.52. The letter noted that tenant retail sales at Plaza 66 in Shanghai and Grand Gateway 66 in Shanghai fell significantly, by about 20%, while the decline in sales across the premium malls as a whole was a more moderate 15%; compared with 2019, luxury sales in 2024 were still up nearly 100%. The letter further stated that foot traffic rose at most malls in 2024, by as much as 12% in some cases, and that mall occupancy rates also mostly showed positive growth; the company set its target for leasing revenue growth in 2025 at single digits. The letter was signed by chair Adriel Chan, dated January 24, 2025, in Hong Kong.

According to the letter to shareholders in the 2025 annual report, the company’s mainland property portfolio continued to improve in the second half of 2025, with the non-premium market driving strong growth in retail sales; this trend began in the first half, during which the year-on-year decline in sales gradually narrowed, turning to positive growth in the second half, with retail sales improving for five consecutive quarters. The letter explained that over the past few years the company had worked to raise base rents to strengthen resilience, deliberately giving up some of the less stable turnover rents, so that the rise in retail sales would not fully translate into a corresponding increase in leasing revenue in the short term; management held a cautious view of the short to medium term and was inclined to maintain a defensive strategy for longer. The letter also noted that foot traffic at its malls remained high, but given that this performance was inconsistent with the economic slowdown widely feared in the market, as well as risks relating to geopolitics, the macroeconomy, technology (especially artificial intelligence) and regulation, the company’s priorities remained increasing sustainable recurring income, reducing leverage, controlling costs, and building a resilient and efficient enterprise. On sustainability, the letter pointed out that the company had achieved its “25 x 25 sustainability targets” and received its best-ever sustainability ratings from external rating agencies, and had also published a white paper exploring the feasibility of and practical approaches to a net-zero greenhouse gas emissions target; with these targets completed, the company would turn its focus to its 2030 targets. The letter listed a number of projects under construction and in preparation: Westlake 66 in Hangzhou was expected to open in the second quarter of 2026, with the shopping mall and some of the connected office towers opening first, followed by Mandarin Oriental Hangzhou in 2027; the urban park concept project at Forum 66 in Shenyang was expected to open in the second half of 2026, located on the ground level of the future serviced apartments and combining sports, entertainment and event facilities with pop-up retail; the extension project at Plaza 66 in Shanghai would open in the second half of 2026, the second major upgrade of the plaza in the past ten years, the previous one being the comprehensive renovation of the shopping mall unveiled in September 2017, and the company would also launch an upgraded VIP lounge and an enhanced rooftop space. In Wuxi, the company had begun presales of “Hang Lung Residences” to the south of Center 66 in Wuxi, and as of December 31, 2025, 53 of its 573 units had been subscribed; the second phase also includes “Wuxi Xizhe Residences, Tapestry Collection by Hilton”, with 105 guest rooms, operated under Hilton’s Tapestry Collection brand and expected to open in the second quarter of 2026. In addition, a “Hang Lung V.3” project adjacent to Center 66 in Wuxi, formerly a department store most of which had stood idle for more than ten years, was expected to be handed over in 2028, after which renovation works would proceed, with the hope of opening within one or two years. On personnel, the letter mentioned that in mid-December 2025 the company announced that chief executive officer Weber Wai Pak Lo would soon retire; the board had been aware of his intention as early as January 2025 and had begun preparations, the related work was proceeding in an orderly manner, and updates would be reported in due course; in October 2025, the company announced the appointment of Andrew Weir to the board; he had previously worked at KPMG, ultimately leading the firm’s global real estate practice and its Hong Kong office. The letter to shareholders was signed by chair Adriel Chan, dated January 30, 2026, in Hong Kong.

Regarding the company’s management, Nelson W.L. Yuen joined Hang Lung in 1978, became an executive director of Hang Lung Properties in 1986, and was appointed managing director of Hang Lung Properties and its holding company Hang Lung Group Limited in 1992, retiring in July 2010; he became a non-executive director of Hang Lung Properties in March 2011 and was redesignated as an independent non-executive director in November 2014. Nelson W.L. Yuen graduated from a university in the United Kingdom and is a fellow of the Institute of Chartered Accountants in England and Wales.