Annual Report 2016
27
Execu t i v e V i ce - Cha i rman ’s Repo r t
During the year under review, NWD’s proposal to privatise
NWCL was supported by shareholders of both companies,
enabling the proposal to proceed. In January 2016, NWD
proposed to acquire, by way of a general offer, all the issued
shares of NWCL and to cancel all the outstanding options of
NWCL. As at 5 April 2016, NWD had received acceptances of
the privatisation proposal in respect of more than 2,688
million shares or 98.65% and 100% of the share options
holders also tendered their acceptance, thereupon the share
offer had become unconditional and NWD exercised its
rights to compulsorily acquire the remaining NWCL shares.
On 3 Au g u s t 2 0 1 6 , t h e c omp u l s o r y a c q u i s i t i o n wa s
completed and NWCL has become an indirect wholly owned
subsidiary of NWD. NWCL continues to manage all the
Group’s property projects in Mainland China. The listing of
the NWCL shares was withdrawn from the Hong Kong Stock
Exchange on 4 August 2016.
In FY2016, the revenue and segment results from property
development in Mainland China, including the revenue from
the joint-development projects, amounted to HK$15,586.0
million and HK$4,393.2 million respectively. The contribution
from property development in Mainland China was mainly
attributable to the sales of the projects located in Shenzhen,
G u a n g z h o u , S h e n y a n g , Wu h a n a n d T i a n j i n . O v e r a l l
contracted property sales in Mainland China in FY2016
reached a total GFA of 1.3 million sq m and the gross sales
proceeds amounted to RMB22.9 billion.
During the year under review, the completed property
development projects for sale and investment property
projects in Mainland China amounted to a total GFA of
668,183 sq m and 167,604 sq m respectively, of which
residential GFA amounted to 480,037 sq m. In FY2017, it is
anticipated to complete property development projects for
sale in Mainland China amounted to a GFA of 1,694,380
sq m, of which residential GFA will amount to 1,379,531 sq m.
For property leasing in Mainland China, the opening of
Shanghai K11 has enhanced rental performance of the
Group’s trophy asset Shanghai Hong Kong New World Tower.
The outperformance of Wuhan New World International Trade
Tower, the key super grade A office in Central China, provided
satisfactory rental contributions and achieved positive rental
reversion upon tenancy renewal. Furthermore, the high-end
residential cluster of the luxurious serviced apartment Canton
Re s i denc e i n Pea r l R i v e r New Town , Guang z hou ha s
generated strong rental income.
In December 2015, NWCL successively disposed of interests
in five property projects, namely Wuhan Changqing Garden,
Haikou New World • Meilisha, Huiyang Palm Island Resort,
Guiyang Jinyang Sunny Town and Chengdu New World
Riverside, involving a total amount of RMB20.8 billion. The
aforesaid transactions are in line with the Group’s continuing
strategy and have evidenced the Group’s achievements in
effective allocation of resources and asset enhancement. It
will also drive further the Group’s strategy of optimising its
project development and investment portfolio by putting
more resources in key cities and premium projects with good
development potential.
