New World Development

New World Development Company Limited
新世界發展有限公司
Public Company (SEHK: 17)
Industry Real property
Founder Dr. Cheng Yu Tung
Headquarters Hong Kong
Key people
 Henry Cheng (Chairman & Executive Director)
Adrian Cheng（Executive Vice-chairman and General Manager）
Products Real property, Hotel, Infrastructure and Services, General merchandise
Revenue HK $59,6 billion (as of financial year 2016)
Owner Chow Tai Fook Enterprises Limited
Number of employees
 About 50,000 people (as of financial year 2014)
Website nwd.com.hk

New World Development Company Limited (NWD), is based in Hong Kong and focuses on property, infrastructure and services, department stores and hotels. It was established in 1970 by Cheng Yu-tung. The company is publicly listed on the Hong Kong Stock Exchange (SEHK: 17) since 23 November 1972 and is a constituent stock of Hong Kong Hang Seng Index.[1]

Over the last four decades, the group has also actively participated in various businesses in Mainland China and established itself as one of the largest foreign direct investors in the country. Its notable subsidiaries include the Rosewood Hotel Group, formerly New World Hospitality and renamed after its acquisition of Rosewood Hotels & Resorts. The group's existing investments in Mainland China has exceeded US$16.5 billion, spreading across four municipalities and over 19 provinces.[1]

Milestones

  • May 1970 New World Development Company Limited is established to venture into property development. Dr Ho Sin Hang is elected Chairman of the Company, while Dr. Cheng Yu Tung is appointed Director and General Manager. Chow Tai Fook Enterprises Limited is the Company's largest shareholder.
  • Oct 1972 NWD (Stock Code: 017.HK) is listed on the Hong Kong Stock Exchange, raising over HK$193 million.
  • Oct 1986 Her Majesty Queen Elizabeth II officiates at the foundation stone laying ceremony of the HKCEC on 21 October.
  • Feb 1992 New World Development (China) is set up.
  • Oct 1995 New World Infrastructure Limited ("NWI") (Hong Kong stock code: 301) is formed to consolidate all of NWD's infrastructure projects in Hong Kong and Mainland China. NWI is listed on HKSE in October.
  • Apr 1997 New World Services Limited ("NWS") is established to consolidate all the services-related businesses within the group.
  • Jul 1999 New World China Land Limited ("NWCL") (Hong Kong stock code: 917) is formed to consolidate all of NWD's property projects in Mainland China, and is listed on HKSE in July.
  • Sep 2000 Acquires New World Insurance Services Limited
  • Sep 2001 NWS acquires the entire issued share capital of Ngo Kee Construction Company Limited
  • Oct 2002 Pacific Ports Company Limited ("PPC") will acquire the traditional infrastructure assets from NWI and acquire NWS from NWD.
  • Jan 2003 The reorganisation of New World Group was completed. NWS Holdings Limited, after changing its name from Pacific Ports Company Limited, became the group's service flagship with diversified operations in service, infrastructure and ports in Hong Kong, Macau and Mainland China.
  • Feb 2003 Consolidated shares under newly named NWS Holdings Limited began trading on The Stock Exchange of Hong Kong Limited.
  • May 2005 NWD and Shanghai Industrial jointly invest US$3 million into Shinhint Acoustic Link Holdings Ltd., a Hong Kong-based integrated manufacturing services provider for ODM/OEM production of electro-acoustic consumer products.
  • The company sells Riverside South, a luxury condominium project in New York City on land acquired from Donald Trump, for $1.8 billion – then the largest residential real estate transaction in the history of the city.[2]
  • Jul 2007 New World Department Store China Limited (Hong Kong stock code: 0825) is listed on HKSE.
  • Dec 2010 The Guangzhou Dongxin Expressway, in which NWS Holdings holds 40.8% equity interest, is officially opened on 31 December 2010.
  • Aug 2011 New World Group announces its full support to New World Harbour Race, a sporting event organised by the Hong Kong Amateur Swimming Association after a 33-year hiatus.[3][4]
  • Dec 2011 NWDS sets up Mianyang New World Department Store, its first store in Mianyang City.
  • Dec 2013 NWS Holdings Limited acquires equity shares in Beijing Capital International Airport to become its second largest shareholder.
  • April 2015 New World Development Company Limited and HIP Company Limited ("HIP"), a wholly owned subsidiary of The Abu Dhabi Investment Authority ("ADIA"), established a new joint venture company to jointly own Grand Hyatt Hong Kong, Renaissance Harbour View and Hyatt Regency TST (the "Hotels") with effect from the closing of the transaction. The total consideration for the sale and transfer of the Hotels is HK$18,500 million, out of which approximately HK$10,082 million is received by NWD.[5][6]

Group structure and subsidiary

NWD group structure and subsidiary

New World Development Company Limited and Chow Tai Fook Jewellery Group Limited are both owned by Chow Tai Fook (Holding) Limited. The Group's two listed companies are NWS Holdings Limited and New World Department Store China Limited. New World China Land Limited is wholly owned by the Group.

Leadership

  • Dr. Cheng Kar-Shun, Henry GBS (Chairman and Executive Director)

Land banking

New World Development Company Limited is one of the Hong Kong companies who have a large landbank. As at 31 December 2014, the group had a landbank of around 9.25 million sq ft, of which around 5.3 million sq ft was residential property. The group had a total of approximately 18.3 million sq ft of attributable agricultural land reserve pending for conversion.

Controversies

Hung Hom Peninsula

One such project, the Hung Hom Peninsula, was sold for a below-market land premium of HK$864 million to New World Development, who subsequently sold off half share to Sun Hung Kai Properties. In 2004, the consortium announced the demolition of these buildings to make way for luxury apartments, to be faced with huge popular outcry about the needless destruction of "perfectly good buildings" to satisfy "corporate greed". In an unprecedented about-turn, the developers withdrew the plan on December 10, 2004.[7]

Leung Chin-man

In 2008, New World was the subject of controversy when it announced it had hired former Permanent Secretary for Housing, Planning and Lands Leung Chin-man as deputy managing director and executive director of its China subsidiary, New World China Land Ltd. The Secretary for the Civil Service Denise Yue Chung-yee, signed off on the approval for him to take up the job within three years of leaving,[8] failing to take into account the appearance of conflict of interest resulting from the Hung Hom Peninsula affair.[9] New World argued that they hired Leung in good faith, after the government had given clearance. New World announced in the early hours of 16 August that the parties had agreed to rescind the contract.[10]

Avenue of Stars

The company has managed the Avenue of Stars for 11 years, and its contract is due to expire. It was announced that the Leisure and Cultural Services Department of the Hong Kong government would redevelop and expand the avenue jointly with the company.[11] The Hong Kong government declared that the enhancement project would contain limited commercial appeal, and no luxury shops or high-end restaurants would be added.[12] The walkway, very popular with tourists, is to be closed off for three years while the expansion is undertaken.[13]

The decision to award the contract for the redevelopment to the company without putting it out to tender, on the justification that the project was non-profit, sparked controversy locally.[14] Residents' groups and other development companies owning properties adjacent to the walk expressed discontent, whilst the LCSD claimed that consultations with the local district council had been favourable.[15] In an apparent attempt to de-fuse the public furore at the apparent collusion between government and big business, the government promised a public consultation.[16]

See also

References

  1. 1 2 "Corporate | New World Development Company Limited Official Website". www.nwd.com.hk. Retrieved 8 October 2015.
  2. ↑ Timothy L. O'Brien (27 January 2016). "How Trump Bungled the Deal of a Lifetime". BloombergView.
  3. ↑ "Event History | New World Harbour Race 2015". www.hkharbourrace.com. Retrieved 8 October 2015.
  4. ↑ "經典重現！維港渡海泳！". sports.sina.com.hk. Archived from the original on 16 September 2015. Retrieved 8 October 2015.
  5. ↑ "New World Development sells Hong Kong hotel stakes to Abu Dhabi investor for HK$18.5 billion". South China Morning Post. Retrieved 8 October 2015.
  6. ↑ "New World seals HK$18.5b deal with Abu Dhabi group HK – China Daily Asia". China Daily Asia. Retrieved 8 October 2015.
  7. ↑ Ng, Michael & Teddy (11 December 2004). "Demolition of Hung Hom flats scrapped". The Standard. Archived from the original on 22 May 2011. Retrieved 29 January 2007.
  8. ↑ Diana Lee (5 August 2008). "Former housing chief faces legal bid to demolish his job with developer". The Standard. Archived from the original on 11 December 2008. Retrieved 7 August 2008.
  9. ↑ Secretary for the Civil Service (August 15, 2008). "SCS submits report to Chief Executive on Leung Chin-man's case" (Press release). Civil Service Bureau, Hong Kong Government.
  10. ↑ Cheung Chi-fai (August 16, 2008). "Ex-housing chief shocked officials didn't consider Hung Hom deal". South China Morning Post. pp. A10.
  11. ↑ http://www.thestandard.com.hk/news_detail.asp?we_cat=5&art_id=160695&sid=44880224&con_type=1&d_str=20150831&fc=1
  12. ↑ http://www.scmp.com/news/hong-kong/economy/article/1853029/hong-kong-avenue-stars-expansion-wont-feature-luxury-shops-or
  13. ↑ http://www.scmp.com/news/hong-kong/health-environment/article/1851404/lights-out-avenue-stars-iconic-hong-kong-site-set
  14. ↑ http://www.scmp.com/comment/insight-opinion/article/1854027/public-outcry-over-avenue-stars-plan-message-hong-kong
  15. ↑ http://www.ejinsight.com/20150811-tsim-sha-tsui-harbourfront-enhancement-plan-faces-opposition/
  16. ↑ http://www.scmp.com/news/hong-kong/economy/article/1854445/hong-kong-government-pledges-consultation-controversial
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