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NWD Interim Results Net Profit Rose to $11.27 billion, Up 159.9%

28 Feb 2018

New World Development Company Limited (“The Group”) today announced its interim result for the financial year ended 31st December 2017. Underlying profits soared HK$4,198.6 million. Profit attributable to shareholders of the Company came to HK$11,269.9 million, up 159.9%. The Group enjoys a robust financial position, with cash on hand and a bank balance totaling HK$65.5 billion. Net gearing of the Group was 32.7%, down 2.1 percentage points. The management recommends an interim dividend of HK$0.14 per share, up 7.7%.


In Hong Kong, the Group’s contracted sales were mainly attributable to MOUNT PAVILIA, ARTISAN HOUSE and THE PARKVILLE. As at mid-February 2018, attributable contracted sales amounted to HK$7.1 billion, having achieved 71% of the HK$10 billion target for the full year. The Group has over 2,500 units of diversified saleable resources, including pending for sale units of MOUNT PAVILIA, FLEUR PAVILIA, Tai Tong Road project, Waterloo Road project and Sheung Heung Road project. The majority of projects booked in FY2019 have achieved their sales targets, among which PAVILIA BAY nearly sold out, with total contracted sales proceeds exceeding HK$9 billion


For Hong Kong property investment, gross rental income amounted to HK$822.7 million, up 13.7%, mainly attributable to the newly commenced operations of K11 Atelier and THE FOREST. K11 recorded a 100% occupancy rate with an average monthly footfall of approximately 1.4 million. D•PARK recorded an occupancy rate of 93% with an average monthly footfall of approximately 3.4 million. Our integrated commercial development project Victoria Dockside, with a GFA of approximately 3 million sq ft, is set to fully open in 2019. The 273-metre-high tower was the first completed, of which K11 Atelier commenced operation in 4Q2017 and recorded over 70% occupancy rate, rental per sq ft set a record in that district


The Group actively manages our Hong Kong landbank via various methods. We are also the first mover to be well positioned to develop Cheung Sha Wan. In August 2017, the Group won the tender for the commercial site at Wing Hong Street, Cheung Sha Wan, Kowloon. Together with the winning bids for the King Lam Street and Cheung Shun Street projects, both located in Cheung Sha Wan, Kowloon, the Group currently has three grade A office projects in that district with a total GFA of 1.9 million sq ft. The Group is optimistic about the development of Kowloon West District and is committed to creating a "New World Ecosystem for Emerging Industries" in the area.


In China, the Group achieved satisfactory gross margin. Contracted sales reached 440,000 sq m in GFA and RMB8.64 billion in gross sales proceeds, achieved 54% of the RMB16 billion full year target. The southern region made the largest contribution which amounted to 28%. Property sales gross margin is over 40%. The expected project completion in FY2018 will be up 24% to GFA of 1.14 million sq m, of which, 80% is residential.


Riding on the development of Greater Bay Area, in January 2018 NWCL signed the “Strategic Cooperation Agreement for Economic Belt at Man Kam To Crossing” with Lo Wu Government for in-depth cooperation on the construction of the “Port Economic Belt” and the modification, operation consolidation and attraction of investment in relation to the commercial districts in “One River Six Circles”. In October 2017, the Group succeeded in acquiring the complex project located at the transportation hub in Zengcheng District, Guangzhou, covering a GFA of approximately 382,000 sq m, at a consideration of RMB2.085 billion. As at 31 December 2017, GFA of landbank excluding carpark: approximately 8 million sq m, of which approximately 4.7 million sq m is residential.


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