About KWIH
Chairman's Message 

Dear Shareholder,

Backed by both its prudent strategy and persistence in the delivery of exquisite quality projects, KWIH accurately assessed market sentiments during the year under review. The premium projects launched in Hong Kong and Mainland China reported satisfactory results with attributable contracted sales amounted to approximately HK$11.5 billion. For the financial year ended 31 December 2020, the Group's attributable revenue amounted to approximately HK$12.5 billion while profit attributable to equity holders amounted to about HK$3.3 billion. Underlying profit amounted to HK$3.5 billion.

The Board has recommended a final dividend of 14 HK cents per share for the year ended 31 December 2020. Together with the interim dividend of 7 HK cents per share, the dividend for the full year amounted to 21 HK cents per share, as we continue to provide shareholders with stable returns.

2020 was a year full of challenges. The COVID-19 adversely affected the global political and economic landscape. Many sectors suffered from the most severe blow ever seen, while the Hong Kong economy was also subject to serious disruption. At the same time, factors including deterioration in relationship between China and the United States ("US"), the US presidential election and Brexit negotiations between the United Kingdom and the European Union all contributed to the cautious sentiments in the Hong Kong property market.

Amid the pandemic and the consequential social distancing measures, there was a slowdown in new project launches in the Hong Kong property market during the year under review. Nevertheless, given the prolonged low-interest rate environment and considerable demand for residential properties from potential homebuyers, the transactions of the primary and secondary markets combined remained stable. In Mainland China, economic activity in the first quarter of 2020 was inhibited by lockdown measures. However, following the resumption of business and manufacturing operations upon the pandemic came under control, there was a clear recovery in property sales alongside the noticeable rebound in local economic activity. The Central Government was determined to maintain a stable property market and remained committed to the principle of "housing for living in, not for speculation". Benefitting from its sound and prudent development strategy, KWIH secured satisfactory sales results as it continued to timely launch its premium projects in the Yangtze River Delta and Greater Bay Area as well as Hong Kong.

Adhering to its prudent land-bidding strategy, KWIH participated in a number of land auctions during the year under review and successfully acquired new projects in Hong Kong and Mainland China. They were the MTR LOHAS Park Package 13 property development project in Hong Kong and the comprehensive development in Hexi New Town, Nanjing. The Group will continue to replenish its landbank in an orderly, disciplined manner in 2021 to provide a solid impetus for future development.

Outlook

Governments around the world have rolled out COVID-19 vaccination campaigns for their citizens, global economic recovery will be back on track. Any changes in the relationship between China and US following the new administration taking office, geo-political developments and signs of de-globalisation all cast uncertainties and volatilities over the global economy. The business environment remains tough for some business sectors and given that the Hong Kong economy is subject to external factors and high local unemployment rate, some property investors may prefer to stand sidelined amidst cautious sentiment. But the global interest rate remains low and the unyielding demand for residential properties remain. Thus, KWIH remains cautiously optimistic for the stable and healthy development of the local and Mainland property markets in the medium to long term. We believe that the pent-up purchasing powers of end-users will be released once the pandemic is under control. The Group will continuously develop our business by pursuing business opportunities in Hong Kong, the Yangtze River Delta and the Greater Bay Area.

During the year under review, Mr Au Man Chu retired as an Independent Non-executive Director. On behalf of the Group, I would like to express our sincere gratitude to Mr Au for the invaluable contributions he made to the Group during his tenure. I would also like to thank, on behalf of the Board, all our staff who performed their duties with dedication during this difficult time and continue to make contributions to the Group with unceasing effort. I look forward to their continued collaboration with the Group to cope with various challenges and realise the Group's vision for long-term and sustained business growth.

Dr Lui Che-woo

Chairman

23 March 2021

 
 
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