New World Development Company Limited
32
Execu t i ve V i ce - Cha i rman ’s Repo r t
demand. The fleet size grew from 40 aircraft as at 30 June
2015 to 68 aircraft as at 30 June 2016 and thereby reached
US$2.7 billion in total assets under management. All aircraft
are purchased with a lease that generates steady income to
NWSH.
In FY2016, NWSH established the second commercial aircraft
leasing platform through the formation of a joint venture
with CTFE and Aviation Capital Group Corp., one of the
world’s leading aircraft leasing companies based in the USA.
This new joint venture, namely Bauhinia Aviation Capital
Limited, which is expected to bring recurring cash flows and
stable income to NWSH in the coming years in the same way
as Goshawk, will further strengthen the Group’s market
position in the fast growing commercial aircraft leasing
industry.
Service: Facilities Management, Construction &
Transport and Strategic Investments
During FY2016, 1,149 events were held at Hong Kong
Convention and Exhibition Centre (“HKCEC”) with a total
patronage of approximately 5.5 million. HKCEC delivered
stable and solid results even though certain trade fairs and
luxury shows had reduced in scale in the face of sluggish
economic conditions.
The performance of Free Duty in FY2016 was impacted by a
s l o w d o w n i n i n b o u n d M a i n l a n d t o u r i s t s a n d t h e
corresponding decline in visitor spending. At the same time,
the change in sales mix alongside rising rental expenses
exerted constant pressure on profit margins. Despite the
retail headwinds, the operations at the Lok Ma Chau Station
sustained steady growth.
Construction business recorded substantial growth in
FY2016 due to the strong increase in business volume. As at
30 June 2016, the gross value of contracts on hand for the
construction business was approximately HK$69.7 billion
and the remaining works to be completed amounted to
approximately HK$38.6 billion. On the other hand, NWSH
transport business was able to take advantage of the rising
patronage from airport bus services and steady fuel costs
through a hedging programme to increase its contribution.
Corporate services businesses for Tricor Holdings Limited
(“Tricor”) performed steadily during FY2016 and captured
about 51% of the total share of new listings in Hong Kong.
NWSH, together with The Bank of East Asia, Limited, are
c u r r e n t l y u n d e r t a k i n g a s t r a t e g i c r e v i e w o n t h e i r
investments in Tricor whereby various options will be
c o n s i d e r e d , i n c l u d i n g p o t e n t i a l d i s p o s a l , t o r e a l i s e
shareholder value.
