新世界-新世界发展有限公司财报2019（英文）-2020.5-289页_10mb

2019 Annual Report Summary

Core Content

The 2019 Annual Report of New World Group outlines the company's strategic direction, business performance, and future development plans across its core and strategic business segments. The report emphasizes the company's commitment to the Artisanal Movement, a cultural vision that celebrates human craftsmanship and creativity in the age of machines. This philosophy underpins the Group's approach to property development, investment, and other strategic initiatives.

Main Business Segments

Property Development

New World Group focuses on property development as a core business, complemented by property investment, roads, aviation, and construction. The Group also engages in strategic business such as HUMANSA, environment, facilities management, and strategic investments.

Financial Highlights

• Revenues: HK$76,763.6 million
• Segment results: HK$19,977.8 million
• Profit attributable to shareholders: HK$18,160.1 million
• Total assets: HK$503,284.9 million
• Net debt: HK$88,288.0 million
• Gearing ratio: 32.1%

Dividend Per Share

• Interim: HK$0.14
• Final: HK$0.37
• Full-year: HK$0.51

Key Projects and Performance

Hong Kong Property Development

• Performance Drivers: THE PAVILIA BAY, FLEUR PAVILIA, MOUNT PAVILIA, ARTISAN HOUSE, PARK HILLCREST, The Masterpiece, THE PAVILIA HILL, THE PARKVILLE, the Double Cove series, and PARK VILLA.
• Sales Performance: Attributable contracted sales amounted to HK$10.5 billion, exceeding the HK$10 billion target.
• Residential Projects: Launched three new residential projects (ARTISAN GARDEN, TIMBER HOUSE, ATRIUM HOUSE) with 847 units. ARTISAN GARDEN and TIMBER HOUSE were sold out quickly, while ATRIUM HOUSE had 70% sales.
• Landbank: Total attributable GFA in Hong Kong was approximately 9,076,000 sq ft, with 4.2 million sq ft for property development and 16.9 million sq ft of agricultural land in the New Territories pending conversion.

Hong Kong Property Investment and Others

• Key Projects: K11 ATELIER, K11 ARTUS, K11 MUSEA, and Rosewood Hong Kong.
• Occupancy and Performance: K11 ATELIER reported an 80% occupancy rate, K11 ARTUS achieved a record monthly rent, and K11 MUSEA had over 95% occupancy.
• Gross Rental Income: Increased by 12% to HK$1,942.3 million, driven by K11 ATELIER.
• K11 ATELIER King's Road: Total GFA of 488,000 sq ft, 57% committed, expected delivery from early 2020.
• Other Projects: New World Tower and Manning House in Central reported stable performance, with New World Tower's gross rental income increasing by mid-single digit.

Mainland China Property Development

• Performance: Overall contracted sales area reached 670,000 sq m and gross sales proceeds RMB19.8 billion, surpassing the RMB16 billion target.
• Key Projects: Guangzhou Covent Garden, Shenyang New World Garden, Guangzhou Park Paradise, Wuhan New World • Times, Guangzhou Foshan Canton First Estate, Beijing New World • Li Zun, Langfang New World Garden, Shenzhen New World Signature Hill, and Guangzhou Dong Yi Garden.
• Geographical Distribution:
  • Southern region (GBA): 60% of sales proceeds
  • North-eastern region: 18%
  • Eastern region: 10%
• Project Completion (FY2019):
  • Total GFA (excluding carpark): 660,168 sq m
  • Residential: 85% of total GFA
  • Commercial: 48,550 sq m
  • Office: 50,971 sq m
• FY2020 Estimated Project Completion:
  • Total GFA (excluding carpark): 910,585 sq m
  • Total GFA (including carpark): 1,180,161 sq m

Strategic Initiatives and Future Outlook

• The Group continues to replenish its landbank through diversified channels and focuses on synergistic development and sustainability.
• Kai Tak Sports Park: Awarded to a subsidiary in December 2018 for 25 years, expected completion in 2023.
• The Group is optimizing its assets and business portfolio by disposing of non-core assets.
• Disposal of Changsha La Ville New World: Agreed to sell for RMB2,185 million, unlocking value at fair market price.
• The Group is committed to the Artisanal Movement, emphasizing human-centric innovation, artistry, and cultural value.

Conclusion

The report highlights the Group's resilience and strategic focus in navigating a challenging market environment, driven by the Artisanal Movement philosophy. With a strong landbank, successful project completions, and a clear vision for future growth, New World Group remains well-positioned to create value for stakeholders and contribute to the development of society.