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KWIH Announces 2011 Annual Results Achieves Record High Revenue of HK$3.2 Billion Profit Attributable to Equity Holders Surges over 5.4 Times to HK$1.24 Billion

22 Mar 2012

(Hong Kong－22 March 2012)－K. Wah International Holdings Limited (“KWIH” or the “Group”) (stock code: 173) today announced its annual results for the year ended 31 December 2011.

Management from KWIH (From left to right) - Mr. Eymon Tsang, Director – Corporate Finance; Mr. Alexander Lui, Executive Director Dr. Lui Che-woo, Chairman; Ms. Paddy Lui, Executive Director

During the year under review, KWIH recorded revenue of HK$3,196 million reaching a historical high (2010: HK$896 million). Profit attributable to equity holders rocketed to HK$1,244 million (2010: HK$193 million), a jump of over 5.4 times over the same period last year, while total comprehensive income attributable to equity holders soaring by 85.8% to HK$2,573 million (2010: HK$1,385 million).

KWIH’s remarkable growth in revenue and profit attributable to equity holders was mainly derived from sales revenue of the remaining units of The Great Hill in Hong Kong. Two blocks of Shanghai Westwood III had been completed and handed over to buyers in late 2011, which also brought handsome contribution to the Group.

Basic earnings per share were 48.27 HK cents (2010: 7.58 HK cents), surging by 537% over the last year. The Board of Directors recommended payment of a final dividend of 8 HK cent per share. Together with the interim dividend of 2 HK cents paid earlier, the total dividends for the year are 10 HK cents per share (2010: 2 HK cents).

Dr. Lui Che-woo, Chairman

Dr Lui Che-woo, Chairman of KWIH, said, “2011 was truly a bountiful year for the Group where our business achieved new heights. With our accumulated experiences and specialities in the property market, KWIH managed to stand in an outstanding position in the market. KWIH realised the huge potential of luxurious residential property markets and timely launched several large scale projects at prime locations in both Hong Kong and the mainland China during the year, which have drawn keen market responses and have achieved remarkable sales results.”

Adopted prudent yet aggressive strategy and launched quality projects in Hong Kong and Mainland China to sustain long-term growth

The launch of the Group’s luxury residential projects in Hong Kong, Shanghai and Guangzhou enjoyed outstanding market response during 2011. While owning large plots in prime locations, the Group retains its prudent yet aggressive approach launching the prime projects at opportune time to sustain long-term growth.

Hong Kong: Marinella, Chantilly, Providence Bay and The Coronation debut during the year, successfully tapping the burgeoning demand for super-luxury residences

During the year under review, KWIH has launched several sizeable luxurious housing projects jointly developed with other renowned developers. The launch of these projects, namely Marinella, Chantilly, Providence Bay and The Coronation, have drawn keen market response and achieved remarkable results.

KWIH unveiled the eagerly-anticipated Marinella on Welfare Road, Sham Wan in September last year, with more than 70% of units being sold with average prices topping other residential projects in the same district. The Group also participated in the development of two other luxury residences, Providence Bay, located at Pak Shek Kok, Tai Po with a distinctively residential project offering panoramic seaview; and The Coronation at West Kowloon district. Both projects recorded excellent sales during the year. The three projects mentioned are scheduled for completion in 2012.

The Group will continue to market the uniquely luxurious units at Marinella, Providence Bay and The Coronation this year. The construction of Phase II of Pak Shek Kok project in Tai Po is also in good progress. Besides, the Group will launch other super-luxurious residential projects, such as the houses and special residential units at the Great Hill, and Chantilly at Stubbs Road, Hong Kong Island depending on the market conditions.

Shanghai: Encouraging results for The Legend, Shanghai Westwood III and The Palace; Grand Summit and Upstream Park are Set for Launch

Although China’s austerity measures are expected to dampen the overall market sentiment, primary demand for mid- and high-end residences remained robust. KWIH has focused on the sales of its residences targeting these segments – The Legend, Shanghai Westwood III, and has achieved outstanding results, with approximately 80% of units being sold within a short period. Construction of four buildings of the same project had been completed and delivered to buyers in late 2011 and early 2012. Construction of the remaining building will be completed by 2012.

Besides, the Group has also kicked off the pre-sale for The Palace, Xuhui District. Situated at prime location in the city centre, The Palace is expected to become a brand-new luxury residential landmark in Shanghai. It has already recorded sales of 40 units in the first phase at RMB 86,000 per sq m. The pre-sold units are expected to deliver to buyers between 2013 and 2014.

The Group will keep launching the remaining units of The Palace, Xuhui District and The Legend, Shanghai Westwood given the strong demand for quality luxury residences. Moreover, the Grand Summit in Jingan District and the Upstream Park at Minhang District will be put onto the market at an appropriate time depending on market conditions.

Guangzhou: Satisfactory sales at Le Palais; Phase I of Guangzhou Huadu Mega Integrated Project officially named “J METROPOLIS”set for pre-sale this year

Le Palais, a prime residential community located on Jianshebei Road, Huadu, was launched at the end of July 2011, winning an enthusiastic response with over half of the units being sold immediately. The Group is sustaining the momentum by aggressively marketing the remaining units. Le Palais is scheduled for completion and delivery in 2012. Also noteworthy, KWIH’s five-star hotel, Crowne Plaza Guangzhou Huadu, Phase 1 of Jiahua Guangchang, opened in July 2011, and the construction of office units there will be completed by mid-2012.

Moreover, Phase I of Huadu Mega Integrated Project has been officially named as “J METROPOLIS” and construction is on schedule. The Group expects to obtain the pre-sell permit within the year and launch the project at an opportune time depending on market sentiment.

Sufficient quality land bank and financial resources to sustain growth momentum

Upon the launch and completion of more quality projects this year and next both in Hong Kong and China, cash flow and capital position will be strengthened further for future development. As at 31 December 2011, the Group’s cash and bank deposits exceeded HK$4.5 billion. The Group has maintained a healthy gearing ratio of 17%.

The Group has a total GFA of approximately 1.8 million sq m. under development and planning, which is sufficient for its development over the next few years. Looking ahead, KWIH continues to proactively develop its business and exploring prime investment opportunities in Hong Kong, the Yangtze River Delta and the Pearl River Delta to replenish its land bank.

Dr Lui concluded that, “In this year and the next, KWIH will launch and complete several high quality projects in Hong Kong and Mainland China, which will further strengthen our financial position. The Group will ride on such competitive strength to expedite our development progress and to enhance our portfolio. We look forward to replenishing our land bank in order to sustain our growth and to generate promising returns to our shareholders.”

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