Press Releases

Launches Luxury Property Projects of 160,000 sqm
in Hong Kong, Shanghai and Guangzhou in 2010

Financial Highlights

(Hong Kong, 13 April 2010) – K. Wah International Holdings Limited (“KWIH” or the “Group”) (stock code: 173) today announced its annual results for the year ended 31 December 2009.

During the year under review, KWIH’s turnover increased by a notable 137% to HK$2,737,000,000 (2008: HK$1,153,000,000). Gross profit margin rose by 4 percentage points to 56% (2008: 52%). Profit attributable to shareholders amounted to HK$916,000,000 (2008: loss attributable to shareholders of HK$617,000,000) and net profit margin was 47%.

Basic earnings per share were 37.1 HK cents (2008: basic loss per share of 25.03 HK cents).The Board recommended the payment of a final dividend of 10 HK cents per share. Together with the interim dividend of 1.0 HK cent per share already paid, the total dividends for the year will be 11 HK cents (2008: 2.0 HK cents) per share.

Earnings growth driven by strong property sales

During the period under review, the Group recorded an income of about HK$2.4 billion from the sales of property and a rental income of about HK$300 million. These were mainly attributable to the sales proceeds generated from Shanghai Westwood II and The Great Hill as well as rental income from investment properties such as Shanghai K. Wah Centre.

Dr Che-woo Lui, Chairman of KWIH, said, “China’s property market picked up quickly last year following a series of economic stimulus measures launched by the Central Government. The Group launched Shanghai Westwood II at an opportune timing and achieved outstanding sales, which underscored the supreme product quality and brand value of K. Wah. Shanghai K. Wah Centre also delivered a stable rental income which has further strengthened the financial resources of the Group. Another contributor to the significant growth in both gross profit margin and net profit margin during the past year is enhanced operational efficiency, where we have made great achievements in project management, risk management and cost control.”

Acquired four premium land plots in Hong Kong and Shanghai and increased its stake in Shanghai K. Wah Centre

In late 2009 to early 2010, the Group spent more than HK$3 billion to expand its property portfolio. These included the replenishment of four premium land plots in Hong Kong and Shanghai through sole proprietorship or joint venture, and an acquisition of stake in Shanghai K. Wah Centre to increase the holding to approximately 70%. Located at Grampian Road in Kowloon Tong, Po Shan Road in Mid-levels, Hong Kong, Pak Shek Kok in Tai Po and Zhujiajiao in Qingpu District, Shanghai, the prime plots increased a total attributable GFA of the Group’s land reserve by approximately 85,000 sqm. At present, the Group has a property portfolio and land reserve of approximately 2,300,000 sqm.

Key projects totalling 160,000 sqm in GFA to be launched in Hong Kong and Mainland China in 2010

The construction of several large-scale luxurious residential and commercial properties in Hong Kong and China is in good progress. A total of approximately 160,000 sqm in GFA has been earmarked for launch during 2010. 

Shanghai: Xuhui District, Jingan District and Shanghai Westwood II Projects
Two luxury residential developments in Xuhui District and Jingan District, both located in the city core of Shanghai, are ready to be launched in phases in 2010. The Xuhui District project has adopted classic French design to capture the ambiance of old Shanghai, while the Jingan District project features a contemporary design to redefine modern living style. At present, the construction of these two projects is on track with topping-out of ten and four residential buildings respectively. Besides, the 27 remaining units in the large-scale residential project Shanghai Westwood II in Daning International Community, Zhabei will also be put to the market.

Guangzhou: KWIH’s first five-star hotel in Huadu
Huadu Airport CBD Project, with a total GFA of approximately 323,000 sqm, is well underway for its first phase construction. Phase I consists of Crowne Plaza Guangzhou Huadu, the first five-star hotel of KWIH, together with a premium office building, which are expected to be opened in the second half of 2010. In addition, the construction work of Jianshebei Road Project, a luxury residential development with a total GFA of 46,000 sqm in the heart of Huadu, has already commenced. It is expected to be ready for launch in the second half of 2010.

Hong Kong: 6 Shiu Fai Terrace at Mid-levels and The Great Hill
KWIH’s signature luxury residential project, 6 Shui Fai Terrace at Stubbs Road, will be launched during this year. This project, with a total GFA of 6,340 sqm, is one of the few new developments that provides low density luxury apartments of over 3,500 sqf. Another luxury property project, The Great Hill at the Mid-levels of South Shatin, will put to the market the existing 7 houses and 21 special units this year.

2011 and beyond: numerous projects to drive the growth momentum

The Group plans to launch Shanghai Westwood III in 2011, which has a total GFA of 100,000 sqm, comprising about 1,000 residential units and serviced apartments. In addition, the Shanghai Minhang District Project will be developed into a luxury residential-cum-commercial community. With a total GFA of around 168,000 sqm, its first phase is scheduled for launch in 2011. The Zhujiajiao, Qingpu District project, which was acquired early this year with a GFA of approximately 70,000 sqm will be developed into low density luxury residential property and is expected to be launched in 2011.

The construction of Guangzhou Huadu Mega Integrated Project, with a total GFA of more than 1,147,000 sqm, will commence this year. The mega project encompasses residential property, hotels, serviced apartments, shopping malls and convention facilities. Its first phase including residential and commercial facilities will be launched in 2011.

The luxury residential projects in Pak Shek Kok, Tai Po, Welfare Road, Aberdeen and Hoi Wang Road, West Kowloon, which the Group develops in partnership with key property developers in Hong Kong, are currently under construction.. All these projects are scheduled for launch in 2011.

A healthy financial position with sufficient capital for future development

The Group enjoys a healthy financial position with a gearing ratio of 21% and approximately HK$3 billion of available funds which suffices the Group to address its business development needs.

Dr Lui concluded, “The global economy has stabilized and we remain optimistic about the long term outlook of Mainland China’s and Hong Kong’s property markets. In line with the country’s policy of accelerating urbanization, we will continue to adopt a prudent and proactive strategy with a focus on the Greater China region, and explore business opportunities in the Yangtze River Delta and Pearl River Delta areas for achieving better returns for shareholders.”

 

 

 

Mr Eymon Tsang, Director – Corporate Finance, Ms Paddy Lui, Executive Director, Mr Alex Lui, Executive Director , Dr Che-woo Lui, Chairman, Mr David Ng, Director – Shanghai Operations (from left to right)

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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.
Company website: http://www.kwih.com

Appendix : Projects Earmarked for Launch