Annual Report 2015
MANAGEMENT DISCUSSION AND ANALYSIS
37
Property development
Analysis of segment results by region
FY2015
FY2014
HK$m
HK$m
Hong Kong
3,295.1
2,079.5
Mainland China
4,837.7
7,507.4
Total
8,132.8
9,586.9
In FY2015, the segment results from property development was HK$8,132.8 million, down 15.2%. In
Hong Kong, the segment results increased over 50% year-on-year. Several residential projects, namely
“The Austin” and “Grand Austin” in Southwest Kowloon, “Park Signature” and “The Reach” in Yuen
Long, together with “Double Cove” and “Double Cove Starview” in Ma On Shan, provided major
contribution to the segment results.
During the year under review, the Group has already surpassed the FY2015 attributable contracted
sales target in Hong Kong of HK$12.0 billion, attaining HK$17.2 billion.
The Group launched two new residential projects in Hong Kong, namely “THE PAVILIA HILL” and
“Double Cove Starview Prime” in FY2015. In particular, “THE PAVILIA HILL”, a trendy and premium
project on Tin Hau Temple Road in North Point, has attracted the attention of many home-buyers. Up
to 13 September 2015, over 93% residential units were sold.
In Mainland China, the overall recorded property sale volume of NWCL for the year under review
decreased by 39.5% to GFA of 855,414 sq m, with gross contracted sales registered at approximately
RMB13,068.3 million. The decrease in contribution from property sales was mainly resulted from
decrease in volume of completed projects by 30% to 1,089,163 sq m during the year under review.
Property investment
Analysis of segment results by region
FY2015
FY2014
HK$m
HK$m
Hong Kong
1,185.1
1,233.3
Mainland China
731.6
798.6
Total
1,916.7
2,031.9
Segment contribution from property investment recorded HK$1,916.7 million in FY2015, down 5.7%,
mainly due to the decrease in the rental income of NWDS.
In FY2015, due to resumption of the underground retail space at 12 Salisbury Road Tsim Sha Tsui
(previously named as “SOGO Tsim Sha Tsui”) on 14 February 2014 for alterations and the overhaul
of Discovery Park Shopping Centre, the contribution from the investment properties in Hong Kong
was affected. If stripping out the effect of the abovementioned two projects, the Group’s gross
rental income in Hong Kong was up 5.0%. New World Tower and Manning House, both being office
buildings located in Central, achieved satisfactory performance in terms of occupancy and rental rates.
For Tsim Sha Tsui K11, FY2015 marked the 5th anniversary of its opening. K11 has continued to
reinforce its differentiated museum retail concept with clear positioning for locals market which has
demonstrated strong performance with almost 100% occupancy rate during the year under review.
