Annual Report 2017 Connecting Lives Building Futures
Total Page:16
File Type:pdf, Size:1020Kb
NWS HOLDINGS LIMITED NWS HOLDINGS LIMITED STOCK CODE: 659 ANNUAL REPO R T 2017 NWS Holdings Limited (incorporated in Bermuda with limited liability) 28/F New World Tower 18 Queen’s Road Central Central, Hong Kong Tel : (852) 2131 0600 Fax : (852) 2131 0611 E-mail : [email protected] www.nws.com.hk Annual Report 2017 Connecting Lives Building Futures NWS Holdings Limited takes every practicable measure to conserve resources and minimize waste. This annual report is printed on FSC™ certified paper using chemistry free plate system and soy ink. The FSC™ logo identifies product group from responsible forestry in accordance with the rules of the Forest Stewardship Council®. About NWS Holdings NWS Holdings Limited (Hong Kong stock code: 659) is the infrastructure and service flagship of New World Development Company Limited (Hong Kong stock code: 17). Listed on the Hong Kong Stock Exchange, NWS Holdings embraces a range of businesses predominately in Hong Kong and Mainland China. With a workforce of over 28,000 people, NWS Holdings is committed to achieving sustainable growth in its two core business areas of infrastructure and services. CORE VALUES • Reputable customer care VISION • Pride and teamwork • Innovation To build a dynamic • Community contributions and and premier group of environmental awareness infrastructure and service • Stakeholders’ interest management companies driven by a shared passion for customer MISSION value and care Synergize and develop business units that: • Nurture total integrity • Attain total customer satisfaction • Foster learning culture and employee pride • Build a world-class service provider brand • Maximize financial returns Connecting Lives • Building Futures NWS HOLDINGS LIMITED The vibrant colours and design of this year’s annual report represent STOCK CODE: 659 the stable growth of our enterprise, and the relationships that link our diverse business portfolio. Icons of the seven business segments lie at the heart of the circular image, symbolizing the focus of the Group’s prudent development strategy. These business segments are linked by interconnecting shapes, which represent the synergies among them and the dynamism driving expansion. The Group’s corporate tagline “Connecting Lives • Building Futures” underpins our commitment to delivering strong, sustainable shareholder and stakeholder value. Annual Report 2017 Connecting Lives Building Futures Download the NWS Holdings Annual Report 2017 CONTENTS 2 Corporate Profile 4 Major Events and Accolades 6 Financial Highlights 8 Chairman’s Statement 10 Q&A with CEO 12 Board of Directors and Senior Management 24 Corporate Governance Report 51 Risk Management 58 Sustainability 70 Management Discussion and Analysis 88 Reports and Financial Statements 216 Five-Year Financial Summary 218 Project Key Facts and Figures 230 Glossary of Terms 232 Corporate Information Corporate Profi le 1 XINJIANG As at 30 June 2017 (Please refer to Project Key Facts and Figures on page 218 to page 229 for project details) QINGHAI TIBET INFRASTRUCTURE As a leading infrastructure player in Mainland China, NWS Holdings possesses an extensive business network in managing and operating 94 projects in four major segments, namely Roads, Environment, Logistics and Aviation as at 30 June 2017. ROADS LOGISTICS The road portfolio comprises 16 roads and The Group invests in a large-scale pivotal related projects in strategic locations in rail container terminal network and three Hong Kong and Mainland China. ports in Mainland China, and a logistics centre in Hong Kong. Roads network approximately The logistics centre offers total 599 km in length leasable area of ENVIRONMENT 5.9 million sq ft This segment comprises water and Handling capacity of wastewater treatment, waste management, renewable resource recycling and utilization, environmental remediation, as well as design, 12 million TEUs per year for port projects engineering and procurement services and energy related projects. AVIATION Treat up to a total of The Group invests in Beijing Capital International Airport and develops 9.02 million cbms commercial aircraft leasing business of water and wastewater per day through two investment platforms. 24,000 tonnes A fleet of of waste per day 90 commercial Total installed capacity of power plants reaches aircraft on lease 1,820 MW 2 NWS HOLDINGS LIMITED JILIN Corporate Profi le 1 1 LIAONING INNER 1 1 • MONGOLIA Beijing 15 1 1, 4-5 • Tianjin HEBEI NINGXIA 11-14 1 SHANXI 1 1 SHANDONG GANSU 1 1 1 SHAANXI 1 1 JIANGSU HENAN 1 ANHUI • Shanghai HUBEI 1, 5 1 1 1 SICHUAN 1-3 1 9 1 • Chongqing ZHEJIANG 1 HUNAN JIANGXI FUJIAN GUIZHOU 3 1 1-8 1, 4, 6 TAIWAN GUANGDONG 1 10 YUNNAN GUANGXI Macau • • Hong Kong Commercial aircraft on lease to worldwide airline operators 2-3 16 1 2 1 HAINAN 1 SERVICES CONSTRUCTION & TRANSPORT As a pioneer in the services industry, NWS Holdings The Group is dedicated to providing provides excellent services in supporting the needs of professional construction services and Hong Kong people and driving the city’s growth. reliable public transport services in Hong Kong. FACILITIES MANAGEMENT This segment mainly comprises the The bus and ferry fleets carry management and operation of Hong approximately Kong Convention and Exhibition Centre, the businesses of Free Duty and 1.1 million Gleneagles Hong Kong Hospital. patronage per day Approximately 5.7 million visitors STRATEGIC INVESTMENTS attended events at Hong Kong The segment includes Haitong International Convention and Exhibition Centre Securities Group Limited, Newton Resources this year Ltd, Tharisa plc, Hyva Holding B.V. and other investments held by the Group for strategic investment purposes. ANNUAL REPORT 2017 3 Major Events and Accolades 2016 SEPTEMBER DECEMBER • NWS Holdings was selected as a constituent • NWS Holdings and Chow Tai Fook Enterprises stock of the Hang Seng Corporate Sustainability Limited (“CTF Enterprises”) formed a 50/50 joint Benchmark Index for the sixth consecutive year. venture, Healthcare Assets Management Limited, It was named the highest-scoring constituent to develop healthcare services in Mainland China company in Fair Operating Practices. and Hong Kong. NWS Holdings also acquired a 20% interest in UMP Healthcare China Limited to develop corporate healthcare solutions business OCTOBER in Mainland China. • The Group increased its stake in Goshawk • The Group acquired the remaining 50% interest in Aviation Limited to 50% as part of its effort to NWS Transport Services Limited, which indirectly expand its commercial aircraft leasing business. held the entire equity interest in New World First Bus Services Limited, Citybus Limited and New • The Group was named a Distinguished Family- World First Ferry Services Limited (“NWFF”), Friendly Employer 2015/16 with a Special Mention from CTF Enterprises at a total consideration of (Gold) Award by the Family Council. approximately HK$1.47 billion. • NWS Holdings and its member companies in Hong NOVEMBER Kong received 10 awards at the seventh Hong Kong Corporate Citizenship Programme. • The Group’s corporate volunteering team, the NWS Volunteer Alliance, celebrated its 15 years • Hong Kong Convention and Exhibition Centre of community work involving more than 165,000 was awarded Best Convention and Exhibition hours of social service to date. Centre in Greater China in the CEI Editors’ Choice industry excellence report, produced by CEI Asia magazine. • NWS Holdings and its French partner SUEZ restructured their joint venture SUEZ NWS Limited (“SUEZ NWS”). The enlarged platform, in which NWS Holdings owns 42% interest, provides a one-stop service for water, wastewater and waste treatment. • Free Duty renewed its five-year duty free concessions to continue its retail business at three land border crossing terminals in Hong Kong until 2022. 4 NWS HOLDINGS LIMITED Major Events and Accolades 2017 FEBRUARY • The concession right of Tangjin Expressway • The Shenyang New World EXPO, managed (Tianjin North Section) was approved to extend for by NWS Holdings’ subsidiary, Shenyang New a further 11 years to 2039. World Expo (Management) Limited, commenced operations, offering a total of around 28,000 sq m of space for exhibitions, conventions and meetings. MARCH • Gleneagles Hong Kong Hospital opened after three years of construction. The 500-bed, multi-specialty private hospital is a joint venture between Parkway Pantai Limited and NWS Holdings, with The University of Hong Kong being responsible for its clinical governance. • NWS Holdings and its 11 member companies were awarded the Caring Company Logo by The Hong Kong Council of Social Service. • NWFF received an extension of licences to operate five ferry routes in Hong Kong until 2020. • The third line of SUEZ NWS’ hazardous waste incineration plant in the Shanghai Chemical Industrial Park commenced operation, making it one of the world’s largest hazardous waste-to-energy plants with an annual capacity of 120,000 tonnes. ANNUAL REPORT 2017 5 Financial Highlights 2017 2016 HK$’m HK$’m Revenue 31,385.0 29,497.8 Profit attributable to shareholders of the Company 5,628.9 4,912.8 Net Debt 3,229.3 6,141.2 Total assets 75,725.9 75,685.0 Net Assets 49,275.0 45,858.4 Shareholders’ funds 49,057.1 45,618.9 2017 2016 HK$ HK$ Basic Earnings per Share 1.46 1.30 Dividend per share – interim and final 0.73 0.65 – special final 0.72 – Net Assets per Share 12.67 11.97 2017 2016 Net Gearing Ratio 7% 13% Return on Equity 11% 11% Return on Capital Employed 9% 9% Dividend Payout Ratio 100% 51% 6 NWS HOLDINGS LIMITED Financial