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Press Releases

KWIH Announces 2010 Annual Results Profit Attributable to Equity Holders Reaches HK$193,000,000

29 Mar 2011

The Legend, Shanghai Records Strong Sales
Residential and Commercial Projects in Hong Kong, Shanghai and Guangzhou to be Launched at the Right Market Time

Financial Highlights

  • Revenue: HK$896,000,000 (2009: HK$2,627,000,000)
  • Profit for the year: HK$241,000,000 (2009: HK$1,282,000,000)
  • Profit attributable to equity holders of the company: HK$193,000,000 (2009: HK$919,000,000)
  • Basic earnings per share: 7.6 HK cents (2009: 37.2 HK cents)
  • Proposed final dividend of 1 HK cent per share. Total dividends for the year are 2 HK cents per share
  • Total comprehensive income attributable to equity holders: HK$1,385,000,000 (2009: HK$1,244,000,000)
  • NAV per share: HK$4.0 (2009: HK$3.6)

(Hong Kong, 29 March 2011) – K. Wah International Holdings Limited (“KWIH” or the “Group”) (stock code: 173) today announced its annual results for the year ended 31 December 2010.

During the year under review, KWIH recorded revenue of HK$896,000,000 (2009: HK$2,627,000,000). Profit attributable to equity holders of the Company amounted to HK$193,000,000 (2009: HK$919,000,000).

Basic earnings per share were 7.6 HK cents (2009: 37.2 HK cents). The Board recommended the payment of a final dividend of 1 HK cent per share. Together with the interim dividend of 1 HK cent per share already paid, the total dividends for the year are 2 HK cents (2009: 11 HK cents) per share. 

During the year under review, the Group’s revenue was mainly derived from sales revenue of two completed projects, The Great Hill in Hong Kong and Shanghai Westwood II; on the other hand, the Group’s increase in its stake in Shanghai K. Wah Centre to approximately 70% in early 2010 has resulted in a stronger contribution to rental income and broadened the recurrent income base of the Group. The Legend, Shanghai Westwood III recorded a contracted sales of RMB1.6 billion right after its debut at the end of last year and is expected to bring a handsome contribution to the Group upon completion.

Dr Lui Che-woo, Chairman of KWIH, said, “During the year under review, core business of the Group remained stable. Adhering to our branding strategy of “premium quality and value”, the Group launched Shanghai Westwood III at the end of last year and sold nearly half of the offered units on the first day of sales. Moreover, during the new round of the sales launch in March 2011, about 75% of the offered units were sold in a single day, registering a contract sum of RMB2.4 billion altogether. This underscores the recognition of our brand name and quality of the project, while offering the perfect answer to the robust primary demand for mid-range to high-end residences.”
Launch prime development projects in Mainland China and Hong Kong at an opportune time to ensure stable growth in sales revenue and profit

The Group’s projects in Hong Kong, Shanghai and Guangzhou have been progressing well. The Group plans to launch various luxury residential and commercial projects at the right time according to market conditions to ensure stable growth in sales revenue and profit.

Hong Kong: The Great Hill, Chantilly and the luxury residential project in Sham Wan, Aberdeen tobe put to market

Against a backdrop of low interest rates, sustained economic growth and rising inflation in Hong Kong as well as the growing demand of Mainland investors for luxury residences in Hong Kong, KWIH will launch Chantilly, The Great Hill in Shatin and a luxury residential project in Sham Wan, Aberdeen, with the timing subject to market conditions.

As quality luxury residences in Hong Kong Island are extremely rare, the Group will launch Chantilly, Stubbs Road on an as-is basis at an opportune time to maximize value. The low-density project provides 24 large luxury residential units each exceeding 3,600 sq ft. The luxury project in Sham Wan, Aberdeen, has a GFA of approximately 60,000 sqm, providing more than 400 luxury sea-view residential units, each ranging from 1,000 to 5,000 sq ft. Superstructure works are underway with completion expected by 2012. As for Providence Bay at Pak Shek Kok, Tai Po, a rare large-scale waterfront residential project in the New Territories, superstructure works for Phase I (Lot No. 186, Tai Po Town) are underway and is expected to be completed by 2012.

Besides, construction of the Hoi Wang Road project in West Kowloon is underway, while the two sites at 30 Po Shan Road, Hong Kong and 2 Grampian Road in Kowloon are also under planning.

Shanghai: To launch more units of The Legend riding on robust demand; remaining quality projects progressing on schedule

Although China’s new austerity measures and property tax policies are expected to have certain impact on the market, primary demand for mid-range to high-end residences remained robust. The launch of four residential buildings of The Legend, Shanghai Westwood III since November 2010, has drawn keen market response with over 77% of units being sold. The Group plans to launch the remaining units of the Legend, which are expected to be completed by the end of this year, subject to market conditions. Moreover, the Group is also to put the remaining few suites and three-bedroom residential units in Shanghai Westwood II on the market.  

Construction of the Group’s other projects in Shanghai is on schedule. The Group strives to build The Palace in Xuhui District and Grand Summit in Jingan District, both situated at prime locations in the city centre, into a new generation of luxury landmarks in Shanghai. The Palace in Xuhui District, a French-style high-end residential and commercial complex, has a GFA of approximately 140,000 sqm. Grand Summit in Jingan District, adopting a glamorous façade and avant-garde design with a GFA of 100,000 sqm, has had its residential buildings topped out currently. Besides, the Group intends to build Upstream Park in Minhang District into an integrated residential and commercial complex. The Project boasts comprehensive amenities in surrounding regions and close proximity to a technology park, metro lines and the expressway network. The above three projects are to be put onto the market at an opportune time in either 2011 or 2012. On the other hand, the project in Zhujiajiao, Qingpu District, with a GFA of around 70,000 sqm, is still under planning which will be developed into low density residences and commercial facilities.

Guangzhou: Phase I of Yingbin Road Project and Le Palais on Jianshebei Road, Huaduto be completed by 2011

Phase I of the Yingbin Road Project in Huadu, Guangzhou occupies a total GFA of approximately 42,000 sqm. It includes Crowne Plaza Guangzhou Huadu Hotel, the first 5-star hotel of KWIH and a high-end office building, both to be completed by 2011. Besides, Le Palais on Jianshebei Road, Guangzhou, a high-end residential development occupying a total GFA of 46,000 sqm, is also expected to be completed this year.

Phase I of the Guangzhou Huadu Mega Integrated Project is currently under development. The Asian Games have spurred improvements in transportation infrastructure and amenities in Guangzhou while embellishing the image of the city, which in turn has benefitted the property market in Huadu.

Solid financial position with large land bank for future development

The Group acquired a land parcel in Zhujiajiao, Shanghai early last year, together with other premium land bank under planning, are sufficient for the Group’s development over the coming five years and sustaining the Group’s long-term growth momentum. The Group also enjoys a solid financial position, with more quality projects pending completion and launch, the Group will be equipped with abundant capital to finance future business development.

Dr Lui concluded, “KWIH remains cautiously optimistic about the prospects of Hong Kong and China property markets in the medium- to long-term. To meet with rising market demand for high quality residences, the Group will adhere to its prudent financial and risk management strategies while continuing to focus on the development of niche projects in Hong Kong, the Yangtze River Delta and the Pearl River Delta, as well as exploring prime investment opportunities in these regions, with an aim to deliver stronger returns to shareholders.”

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About K. Wah International Holdings Limited (stock code: 173)

K. Wah International Holdings Limited, listed in Hong Kong in 1987, is the property flagship of K. Wah Group. KWIH aims at establishing a position of large-scale integrated property developer and investor in the Greater China region. With a property portfolio encompassing premium residential developments, Grade-A office towers, retail spaces, hotels and serviced apartments, KWIH has a presence in Hong Kong, Shanghai, Guangzhou and Southeast Asia. Driven by a keen market sense and a versatile strategy, and backed by strong financial capability, KWIH has built up a sizeable and prime land reserve in major cities of China, and thus a strong foothold for future growth. KWIH has received several international accolades for its outstanding quality and service. Awarded Business Superbrands in the property development sector in 2006, KWIH was also the only winner in the Hong Kong Property Developer category of the High-Flyer Outstanding Enterprises consecutively in 2006 and 2007.
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