ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Finance

New World Development Co. Ltd.

Company Background

New World Development is a Hong Kong conglomerate mainly focused on property development, hotels, department stores, infrastructure and services. The company operates businesses in more than 50 cities in Asia with a total asset value of 300 billion Hong Kong dollars ($39.4 billion).

It owns three listed companies -- New World China Land, NWS Holdings and New World Department Store China. The company is expanding its businesses in mainland China, investing $16 billion in more than 20 provinces across the country.

New World Development plans to improve the efficiency of the group's hotel operations. In 2015, it sold interests in three upscale hotels to a joint venture with Abu Dhabi Investment Authority for HK$18.5 billion. The hotels are Grand Hyatt Hong Kong, Renaissance Harbour View, and Hyatt Regency TST.

Hong Kong billionaire Henry Cheng Kar-shun became chairman of New World Development in 2012. His family holds a 42% stake in the company as the largest shareholder. He also leads Chow Tai Fook Jewellery Group, Hong Kong's largest jewelry retailer.

Business Summary

New World Development Co. Ltd. operates as an holding company, which engages in the property development and investment businesses. It operates through the following business segments: Property Development, Property Investment, Service and Infrastructure, Hotel Operations, Department Stores and Others. The Property Development segment focuses on the residential usage of company properties in China and Hong Kong. The Property Investment segment handles lands and buildings that are for lease or rent. The Service segment comprises of facilities management, contracting and transport, and strategic investments. The Infrastructure segment includes development of roads and ports, and energy, water and logistics projects. The Hotel Operations segment manages major hotel projects in Hong Kong, namely, Grand Hyatt Hong Kong, Hyatt Regency Hong Kong, Tsim Sha Tsui, Hyatt Regency Hong Kong, Sha Tin and Renaissance Harbour View Hotel. The Department Store segment operates department store retail chain in China. The Others segment includes media and technology businesses. The company was founded on May 29, 1970 and is headquartered in Hong Kong.

Financial Highlights

Jun 2021 HKDUSD
Revenue68,171.40M8,789.31M
Gross Profit17,754M2,289.01M
Operating income8,663.90M1,117.03M
Income before tax7,780.90M1,003.18M
Net income1,171.60M151.05M
EBITDA12,513.90M1,613.41M
Diluted EPS0.460.05
Dividends Per Share2.060.26
Total Assets627,077.40M80,748.07M
Total liabilities371,823.20M47,879.26M
Total equity223,328.80M28,757.80M
Operating cash flow----
Currency in HKDCurrency in USD

Historical Data

 Jun 2017Jun 2018Jun 2019Jun 2020Jun 2021
Revenue 58,863.50M 62,301.20M 76,885M 59,251.60M 68,171.40M
Gross Profit 20,450.30M 22,175.90M 25,142.90M 18,888.20M 17,754M
Operating income 11,558.30M 12,820M 14,215.90M 9,478.60M 8,663.90M
Income before tax -- -- 24,445.80M 10,024.50M 7,780.90M
Net income 7,675.70M 23,338.10M 18,160.10M 1,096.20M 1,171.60M
EBITDA 13,446.40M 15,253M 16,626.90M 13,310M 12,513.90M
Diluted EPS 3.20 9.32 7.10 0.42 0.46
Dividends Per Share 1.84 1.92 2.04 2.04 2.06
Total Assets 437,056.30M 481,454.80M 503,284.90M 600,195.90M 627,077.40M
Total liabilities 225,563.60M 235,724.70M 249,425.90M 357,542.80M 371,823.20M
Total equity 186,091.20M 216,249.90M 223,864.50M 213,023.30M 223,328.80M
Operating cash flow 3,335.60M 7,170.40M 5,560.70M -13,150.50M --
 Jun 2017Jun 2018Jun 2019Jun 2020Jun 2021
Revenue 7,580.12M 7,962.17M 9,806.66M 7,601.56M 8,789.31M
Gross Profit 2,633.48M 2,834.10M 3,206.97M 2,423.22M 2,289.01M
Operating income 1,488.41M 1,638.41M 1,813.23M 1,216.03M 1,117.03M
Income before tax -- -- 3,118.05M 1,286.07M 1,003.18M
Net income 988.43M 2,982.63M 2,316.31M 140.63M 151.05M
EBITDA 1,731.55M 1,949.35M 2,120.75M 1,707.58M 1,613.41M
Diluted EPS 0.41 1.19 0.90 0.05 0.05
Dividends Per Share 0.23 0.24 0.26 0.26 0.26
Total Assets 55,986.56M 61,367.39M 64,420.47M 77,440.13M 80,748.07M
Total liabilities 28,894.51M 30,046.03M 31,926.51M 46,131.87M 47,879.26M
Total equity 23,838.13M 27,563.73M 28,654.65M 27,485.27M 28,757.80M
Operating cash flow 429.54M 916.38M 709.26M -1,687.11M --

Valuation Measures

Jun 2021
PER87.66
ROA0.19%
ROE0.53%
Operating margin12.70%
Profit margin1.71%

Key executives

  • Chairman & Managing Director: Kar-Shun Cheng
  • Executive Vice Chairman & Chief Executive Officer: Chi Kong Cheng
  • Legal Counsel: Yan Guan
  • Executive Director: Wai-Han Chiu
  • Secretary, Legal & Company Secretarial Department: Man-Hoi Wong

Shareholders

  • Cheng Yu Tung Family Ltd. (45.1%)
  • The Vanguard Group, Inc. (1.6%)
  • BlackRock Fund Advisors (1.3%)
  • Norges Bank Investment Management (0.8%)
  • APG Asset Management NV (0.6%)
  • Principal Real Estate Investors LLC (0.5%)
  • BlackRock Advisors (UK) Ltd. (0.5%)
  • Dimensional Fund Advisors LP (0.4%)
  • State Street Global Advisors Asia Ltd. (0.4%)
  • BlackRock Investment Management (UK) Ltd. (0.4%)

Contact Details

  • Website:http://www.nwd.com.hk
  • Address: 30/F, New World Tower, 18 Queen's Road Central, Hong Kong, Hong Kong
  • Phone: +852.2523.1056

Related Companies

  • K11 Shanghai Properties Co., Ltd.
  • Stockfield Ltd. (British Virgin Islands)
  • Steadfast International Ltd. (British Virgin Islands)
  • Ace Island Ltd. (Hong Kong)
  • Crown Success Ltd.
  • Roxy Ltd. (Hong kong)
  • Housing Finance Ltd.
  • Beijing Xintong Media & Advertising Co., Ltd.
  • Beijing NW Project Management Consultancy Services Ltd.
  • K11 Business Management (Wuhan) Co., Ltd.
  • K11 Concepts (Beijing) Ltd.
  • K11 Concepts (Shanghai) Ltd.
  • NW Project Management Ltd. (Hong Kong)
  • Shanghai New World Xinying Department Store Co., Ltd.
  • Shanghai Luxba Trading Ltd.
  • Shang Shun Properties (Shenzhen) Co., Ltd.
  • Shanghai New World Department Store Co., Ltd.
  • Shanghai New World Huiya Department Store Co., Ltd.
  • Shanghai New World Huizi Department Store Co., Ltd.
  • Shanghai New World Huiying Department Store Co., Ltd.
  • Shang Ji Properties (Shenzhen) Co., Ltd.
  • New World Anderson (Tianjin) Development Co., Ltd.
  • Nanjing New World Real Estate Co., Ltd.
  • Foshan International Country Club Co., Ltd.
  • Foshan Da Hao Hu Real Estate Development Co., Ltd.
  • Beijing Wanya Department Store Co., Ltd.
  • Shenyang Sheng Xin Yi Le Property Co., Ltd.
  • Allied Win Investments Ltd.
  • Login SCM (Shenzhen) Co., Ltd.
  • Tianjin Xin Guang Development Co., Ltd.

Competitors

  • New World Department Store China Limited
  • Lifestyle International Holdings Limited
  • DTXS Silk Road Investment Holdings Company Limited
  • New Century Healthcare Holding Co. Ltd.
Last Updated on 20 Oct, 2021

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more