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Cheung Kong (Hldgs) 00001
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| Chairman |
LI Ka-shing |
| Issued Capital (Shares) |
2,316M |
| Par Value (HKD) |
0.500 |
| Market Capitalization (HKD) |
258,021M |
| Corporate Profile |
The Group is the leading Hong Kong based multi-national conglomerate. It is one of the largest developers in Hong Kong for residential commercial and industrial properties. The Group also has substantial interests and operations in life sciences and the IT and Internet business arena.
Business Review - For the year ended December 31 2007
Property Sales
Turnover of property sales for the year including share of property sales of jointly controlled entities was HK$13406 million (2006 ¡V HK$13796 million) a decrease of HK$390 million when compared with last year and comprised mainly the sale of residential units of three property projects completed in previous years The Legend at Jardine¡¦s Lookout and Crystal Cove of Caribbean Coast in Hong Kong and Costa del Sol in Singapore and the sale of residential units of property projects completed during the year including Central Park Towers Phase 1 The Apex Le Point and Sausalito in Hong Kong and Regency Park Phase VI in the Mainland of which approximately 57% of these completed units have been sold and recognised as of the year end date.
Contribution from property sales including share of results of jointly controlled entities was HK$5630 million (2006 ¡V HK$5583 million) an increase of HK$47 million when compared with last year. Contribution margin for property sales during the year remained steady while the economies in Hong Kong and the Mainland grew with solid fundamentals and the residential property market continued to be active with prices in all sectors rising generally.
Contribution from property sales for 2008 will mainly be derived from the sale of residential units of CASA 880 and The Capitol in Hong Kong Maison des Artistes in Shanghai The Riverside in Guangzhou and several other property projects which are scheduled for completion and from the sale of the remaining residential units of the property projects completed during the year.
As of mid-March 2008 most of the remaining completed residential units of Central Park Towers Phase 1 The Apex Le Point Sausalito and those of CASA 880 and The Capitol scheduled for completion have been sold or presold.
Property Rental
Turnover of the Group¡¦s property rental for the year was HK$792 million (2006 ¡V HK$624 million) an increase of HK$168 million when compared with last year mainly attributable to the Group¡¦s acquisition of the commercial portion of Metro Town in Hong Kong last year and increases in rental rates generally in Hong Kong during the year. The Group¡¦s existing investment properties comprise mainly retail shopping malls and commercial office properties in Hong Kong which accounted for approximately 30% and 44% respectively of the turnover of the Group¡¦s property rental for the year.
Contribution from property rental including share of results of jointly controlled entities was HK$1231 million (2006 ¡V HK$936 million) an increase of HK$295 million when compared with last year. During the year the upward trend in rental rates was sustained both in Hong Kong and in the Mainland due to continuing demand for commercial office and retail properties and the Group¡¦s investment properties in Hong Kong and those held by jointly controlled entities in the Mainland all reported good rental income growth.
At the balance sheet date the Group accounted for an increase in the fair value of investment properties of HK$1815 million (2006 ¡V HK$1936 million) based on a professional valuation and shared an increase in the fair value of investment properties of HK$598 million (2006 ¡V HK$564 million) of jointly controlled entities.
Hotels and Serviced Suites
Turnover of the Group¡¦s hotels and serviced suites for the year was HK$1063 million (2006 ¡V HK$729 million) an increase of HK$334 million when compared with last year. The increase in turnover was mainly attributable to the grand opening of Harbourview Horizon All-Suite Hotel late last year and Harbourfront Horizon All-Suite Hotel in June this year.
Contribution from hotels and serviced suites including share of results of jointly controlled entities was HK$545 million (2006 ¡V HK$367 million) an increase of HK$178 million when compared with last year. During the year the economic conditions in Hong Kong and the Mainland were good and the Group¡¦s hotels and serviced suites achieved satisfactory occupancy and good room rates including the Harbourview Horizon All-Suite Hotel and the Harbourfront Horizon All-Suite Hotel which have just commenced operations in Hong Kong. Contribution from jointly controlled entities increased further from last year as Harbour Plaza Metropolis The Kowloon Hotel in Hong Kong and Grand Hyatt Beijing in the Mainland all reported good operating results.
The Apex Horizon of which the Group has a 100% interest was completed in the second half year and will soon commence operation. Furthermore The Harbour Grand of which the Group has a joint development interest is scheduled for completion next year. Both hotels are located in Hong Kong and will make contribution to profit in the coming years.
Property and Project Management
Turnover of property and project management for the year was HK$181 million (2006 ¡V HK$197 million) of which income from property management was HK$150 million (2006 ¡V HK$144 million) an increase of HK$6 million when compared with last year and income from project related services was HK$31 million (2006 ¡V HK$53 million) a decrease of HK$22 million when compared with last year.
Contribution from property management was HK$93 million (2006 ¡V HK$83 million) an increase of HK$10 million when compared with last year while project related services made a small contribution to Group profit. The Group is committed to providing high quality services to properties under our management.
At the year end date the total floor area under the Group¡¦s property management was approximately 82 million square feet and this is expected to grow steadily following the gradual completion of the Group¡¦s property projects in the years ahead.
Major Associates
The Hutchison Whampoa Group a listed associate reported profit attributable to shareholders for the year ended 31st December 2007 of HK$30600 million (2006 ¡V HK$20030 million).
The CK Life Sciences Group another listed associate reported profit attributable to shareholders for the year ended 31st December 2007 of HK$117001000 (2006 ¡V HK$102022000).
Source: Cheung Kong (Hldgs) (00001) Annual Results Announcement |
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Copyright 1999-2001 SHK Financial Data Limited
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Last Updated: 24 Jul 2008
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