KLL Fa 16Mm(27Mar (Converted)-1
Total Page：16
File Type：pdf, Size：1020Kb
Contents Living Landmarks Corporate Profile 05 Significant Events 150 Awards and Accolades 152 Regional Network 156 CORPORATE STEWARDSHIP Chairman’s Statement 06 STATUTORY REPORTS AND ACCOUNTS Board of Directors 12 Building Sustainable Earnings Senior Management 20 Directors’ Report 162 Profile of Directors and Senior Management 24 Statement by the Directors 167 Interested Persons Transactions 27 Auditors’ Report 168 Group Financial Highlights 28 Consolidated Profit and Loss Account 169 Simplified Balance Sheet 29 Balance Sheets 170 Five-year Financial Profile 30 Consolidated Statement of Changes in Equity 171 Group Quarterly Results 31 Consolidated Cashflow Statement 173 Summary of Significant Accounting Policies 175 Driving Growth Notes to the Financial Statements 184 Corporate Governance 34 Significant Subsidiary and Investor Relations 44 Associated Companies 211 People Review 48 Corporate and Social Responsibility 55 CORPORATE INFORMATION Corporate Directory 217 Leveraging Strengths Key Personnel 218 Special Feature: Township Developments in Asia 66 Calendar of Financial Events 220 Corporate Structure 221 OPERATING AND FINANCIAL REVIEW Property Portfolio 223 Managing Risks Structure of Keppel Land Group 78 SHAREHOLDER INFORMATION Strategic Directions and Outlook 79 Statistics of Shareholdings 237 Financial Review 82 Notice of Annual General Meeting and Sensitivity Analysis 87 Closure of Books 238 Property Portfolio Analysis 88 Share Transaction Statistics 241 Value Added Statement 90 Proxy Form 243 Productivity Analysis 92 Economic Value Added 94 Corporate Liquidity and Capital Resources 95 Risk Management 97 Business Dynamics and Risk Factors 100 Critical Accounting Policies 101 Carving Competitive Edge Operations and Market Review 104 Contents Living Landmarks Corporate Profile 05 Significant Events 150 Awards and Accolades 152 Regional Network 156 CORPORATE STEWARDSHIP Chairman’s Statement 06 STATUTORY REPORTS AND ACCOUNTS Board of Directors 12 Building Sustainable Earnings Senior Management 20 Directors’ Report 162 Profile of Directors and Senior Management 24 Statement by the Directors 167 Interested Persons Transactions 27 Auditors’ Report 168 Group Financial Highlights 28 Consolidated Profit and Loss Account 169 Simplified Balance Sheet 29 Balance Sheets 170 Five-year Financial Profile 30 Consolidated Statement of Changes in Equity 171 Group Quarterly Results 31 Consolidated Cashflow Statement 173 Summary of Significant Accounting Policies 175 Driving Growth Notes to the Financial Statements 184 Corporate Governance 34 Significant Subsidiary and Investor Relations 44 Associated Companies 211 People Review 48 Corporate and Social Responsibility 55 CORPORATE INFORMATION Corporate Directory 217 Leveraging Strengths Key Personnel 218 Special Feature: Township Developments in Asia 66 Calendar of Financial Events 220 Corporate Structure 221 OPERATING AND FINANCIAL REVIEW Property Portfolio 223 Managing Risks Structure of Keppel Land Group 78 SHAREHOLDER INFORMATION Strategic Directions and Outlook 79 Statistics of Shareholdings 237 Financial Review 82 Notice of Annual General Meeting and Sensitivity Analysis 87 Closure of Books 238 Property Portfolio Analysis 88 Share Transaction Statistics 241 Value Added Statement 90 Proxy Form 243 Productivity Analysis 92 Economic Value Added 94 Corporate Liquidity and Capital Resources 95 Risk Management 97 Business Dynamics and Risk Factors 100 Critical Accounting Policies 101 Carving Competitive Edge Operations and Market Review 104 Signature work, conceived through wit and grit, marks every Keppel Land endeavour. Local wisdom quickens our minds and hands as we script the future, push limits and reap rewards. Living Landmarks Signature work, conceived through wit and grit, marks every Keppel Land endeavour. Local wisdom quickens our minds and hands as we script the future, push limits and reap rewards. Living Landmarks Corporate Profile Keppel Land is the property arm of the Keppel Group, one of Singapore’s largest multinational groups with key businesses in offshore and marine, infrastructure, and property. With beginnings that date back to 1890, Keppel Land is today a leading property development company in Asia recognised for its award-winning premier residential developments and investment-grade commercial properties, and its high standards of corporate transparency and disclosure. It is geographically diversified in Asia with a current focus in Singapore, China, India, Vietnam, Indonesia and Thailand. The Company is one of the largest listed property companies by total assets on the Singapore Exchange. It is part of the MSCI Singapore and FTSE EPRA/NAREIT indices. Keppel Land’s return on equity is among the highest in the property industry in Singapore. In 2005, the Company’s share of profits from overseas grew to 59% of net profit, exceeding the 50% target set for 2005. Keppel Land aims to be a leading developer of quality properties in the region and a premier manager of property funds. Riding on strong economic growth and homeownership aspirations, favourable demographics and urbanisation trends, the Company has continued its expansion drive in the housing sector into new countries, cities and segments. It has also embarked on developing large-scale residential townships in the region to tap on the demand for quality housing from the growing middle class population. The Group has a pipeline of more than 20,000 homes in residential townships across China, Indonesia and Vietnam. In another step to unlock value for shareholders, Keppel Land is setting up K-REIT Asia, a real estate investment trust with an initial portfolio of four prime office buildings valued at $630 million. Apart from redeploying capital tied up in its investment buildings into development projects which provide quicker returns, K-REIT Asia will enlarge Keppel Land’s platform to generate fee-based income, in addition to the funds which have been established under its property fund management vehicle Alpha Investment Partners. 04 05 Corporate Profile Keppel Land is the property arm of the Keppel Group, one of Singapore’s largest multinational groups with key businesses in offshore and marine, infrastructure, and property. With beginnings that date back to 1890, Keppel Land is today a leading property development company in Asia recognised for its award-winning premier residential developments and investment-grade commercial properties, and its high standards of corporate transparency and disclosure. It is geographically diversified in Asia with a current focus in Singapore, China, India, Vietnam, Indonesia and Thailand. The Company is one of the largest listed property companies by total assets on the Singapore Exchange. It is part of the MSCI Singapore and FTSE EPRA/NAREIT indices. Keppel Land’s return on equity is among the highest in the property industry in Singapore. In 2005, the Company’s share of profits from overseas grew to 59% of net profit, exceeding the 50% target set for 2005. Keppel Land aims to be a leading developer of quality properties in the region and a premier manager of property funds. Riding on strong economic growth and homeownership aspirations, favourable demographics and urbanisation trends, the Company has continued its expansion drive in the housing sector into new countries, cities and segments. It has also embarked on developing large-scale residential townships in the region to tap on the demand for quality housing from the growing middle class population. The Group has a pipeline of more than 20,000 homes in residential townships across China, Indonesia and Vietnam. In another step to unlock value for shareholders, Keppel Land is setting up K-REIT Asia, a real estate investment trust with an initial portfolio of four prime office buildings valued at $630 million. Apart from redeploying capital tied up in its investment buildings into development projects which provide quicker returns, K-REIT Asia will enlarge Keppel Land’s platform to generate fee-based income, in addition to the funds which have been established under its property fund management vehicle Alpha Investment Partners. 04 05 Chairman s Statement ’ On behalf of the Board, I present the Keppel Land Group report for the year ended 31 December 2005. Dear Shareholders, Financial Performance 2005 saw continued growth for Asia led by the two strong economies of China and India. Against this backdrop, Keppel Land continued to increase its development and investment activities in ASEAN, China and India during the year, recognizing that the incidence of home ownership in Asia is still relatively low compared with that of the developed economies. Group turnover grew 23% from $476 million in 2004 to $586 million due to increased contribution from trading projects in Singapore and overseas. Operating and pre-tax profits were both higher by about 30% at $146.6 million and $183.4 million respectively. Share of profits from overseas has exceeded 50% of the Group’s net profit, a target set for 2005 three years ago. Overseas contribution grew to 59% of net profit from 43% for last year due to strong residential sales, especially in China. During the year, Keppel Land swapped its interest in the retail mall Parco Bugis Junction to raise its stake in the office tower Bugis Junction Towers to 100%. The exceptional gain of $37.8 million from the transactions was offset by provisions made for the diminution in the value of the Group’s investment in associated companies ($14.9 million) and hotels in Myanmar ($21.7 million). Taking