EXECUTIVE VICEǫCHAIRMAN’S REPORT
Interim Report 2015/2016
EXECUTIVE VICE-CHAIRMAN’S REPORT
5
Business Review
For the first half of FY2016, the Group recorded revenues amounted to HK$33,778.2 million, up 25%. Profit attributable
to shareholders of the Company amounted to HK$3,300.0 million. The Group’s underlying profit amounted to
HK$3,281.4 million. If excluding exchange difference attributable to NWD, the Group’s underlying profit amounted to
HK$4,349.4 million, maintained stable year-on-year.
Hong Kong Property Development
Amidst the international economic sentiment, the development of interest rate hike in the United States, and the
Hong Kong SAR Government policies on the property market, Hong Kong’s residential property transaction volume
experienced volatile in 2015. According to the Hong Kong Rating and Valuation Department, the total transaction volume
of first-hand sales and purchases of private residential units in 2015 was 16,826, representing a slight decrease of 0.2%
from the previous year. Taking the macro economic environment into account, some potential home-buyers adjusted
their pace of purchases. In view of such trend, most developers were eager to provide various concessionary offers or
adopt a close-to-market pricing strategy to boost market sentiment. With the more prudent attitude taken by potential
home-buyers as well as the ongoing inadequacy of supply on the market, buyers’ resources tend to be steered towards
premium brands and products with superior quality at prime locations, enabling high-quality projects to stand out from
the crowd.
New World Development emphasises the need to create bespoke products and listen attentively to the voice of
customers, blending artisanal elements to exemplify the tastes and atmosphere which are uniquely embraced by the
Group’s brand, to provide the best choice to home-buyers. Together with the revenue from the joint-development
projects, the Group’s revenue and segment contributions from property development in Hong Kong during the period
under review amounted to HK$11,450.8 million and HK$2,767.2 million respectively, representing an increase of 146%
and 14% year-on-year. The contributions from property sales was mainly attributable to the sales of residential units
completed and recognised within this financial year, including “THE PAVILIA HILL” in North Point, “THE PARKHILL” in
Yuen Long and “Double Cove Starview Prime” in Ma On Shan, together with the sales of residential projects completed
in previous financial years.
During the period under review, the Group’s attributable contracted sales in Hong Kong amounted to HK$2.8 billion.
Taking into account the full year from January to December in 2015, the Group’s attributable contracted sales in Hong
Kong would have amounted to HK$6.6 billion. The four residential projects launched by the Group during the period
under review are as follows:
Initial sales
Name of project
Attributable
to the Group Location
Total number of
residential
units
July 2015
SKYPARK
100% Mong Kok
439
August 2015
Double Cove Grandview
32% Ma On Shan
474
October 2015
THE PARKHILL
100% Tong Yan San Tsuen
141
December 2015
55 Conduit Road
30% Mid Level West
35
The Group has actively reviewed the momentum of launching new residential projects by assessing market conditions
and the needs of home-buyers. “BOHEMIAN HOUSE” in Western District, which is the latest residential project of
the Group under the BOHEMIAN series on Hong Kong Island and located at close proximity to Sai Ying Pun MTR
station, provides 191 residential units which are mostly one-bedroom or two-bedroom units. The project will uphold the
uniqueness of spirit of artisanal architecture embodied by “EIGHT SOUTH LANE” in Western District and “EIGHT KWAI
FONG” in Happy Valley, to provide distinctive experience to the home-buyers.
