Annual Report 2010 3 Major Events and Accolades
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VISION To build a dynamic and premier group of infrastructure and service management companies driven by a shared passion for customer value and care CORE VALUES MISSION • Reputable customer care Synergize and develop business • Pride and teamwork units that: • Innovation • Nurture total integrity • Community • Attain total customer satisfaction contributions and • Foster learning culture and environmental employee pride awareness • Build a world-class service • Stakeholders’ interest provider brand • Maximize fi nancial returns CONTENTS 2 Corporate Profi le 4 Major Events and Accolades 6 Financial Highlights 8 Chairman's Statement 10 Board of Directors 14 Corporate Governance Report 26 Key Information for Shareholders 30 Human Capital 32 Community Care 34 Environmental Friendliness 36 Management Discussion and Analysis 48 Reports and Financial Statements 166 Five-Year Financial Summary 168 Project Key Facts and Figures 178 Glossary of Terms 180 Corporate Information Design Rationale “Scaling New Heights” With the tagline “Scaling New Heights”, NWS Holdings Limited is committed to fulfilling long-term growth and excelling itself at various aspects. On the basis of NWS Holding’s two core businesses, infrastructure and services, its investments spanning Hong Kong, Mainland China and Macau are symbolized by puzzles in their respective identity colours of the two businesses, red and orange, in the report. Also, the Group’s further expansion is denoted by adjoining right pieces of jigsaw puzzle strategically. By focusing on the vibrant growth areas, the Group has been maximizing its returns and reaching new heights ever since. CORPORATE PROFILE About NWS Holdings NWS Holdings (Hong Kong stock code: 659) is the infrastructure and service flagship of NWD (Hong Kong stock code: 17). Listed on the Hong Kong Stock Exchange, NWS Holdings embraces businesses in Hong Kong, Mainland China and Macau. Infrastructure Roads The road portfolio comprises 20 roads and related As a key infrastructure player in projects in Hong Kong and Mainland China’s strategic Mainland China, NWS Holdings has locations, for example, Guangdong and Tianjin, built up an extensive business network covering approximately 618 km in length. in managing and operating 63 projects in the four segments of Roads, Energy, Water as well as Ports & Logistics. Water Through its joint venture company, Sino-French Holdings (Hong Kong) Limited, NWS Holdings invests in the water markets of Mainland China and Macau where its 27 water treatment and waste treatment plants treat up to Energy a total of seven million cbms of water and waste water The Group operates four power plants in Guangdong, and 540 tonnes of sludge per day. Besides holding stake Sichuan and Macau with a total installed capacity of in a 61-hectare landfill in Hong Kong and a strategic approximately 2,892 MW and a coal distributor company investment in Chongqing, the Group also invests in a hazardous waste incineration plant in Shanghai with in Guangdong operating coal handling pier with annual annual capacity of 60,000 tonnes. capacity of seven million tonnes. Ports & Logistics NWS Holdings operates six port projects in strategic coastal locations of Mainland China such as Xiamen and Tianjin, with a container handling capacity of 7.1 million TEUs per year. By co-operating with its joint venture, China United International Rail Containers Co., Limited, the Group is developing 18 pivotal rail container terminals across Mainland China. ATL Logistics Centre in Kwai Chung provides a full range of warehousing and logistics services for local and overseas clients. 2 NWS HOLDINGS LIMITED CORPORATE PROFILE NWS Holdings’ Infrastructure portfolio comprises Roads, Energy, Water and Ports & Logistics projects. Its Services division covers Facilities Management, Contracting & Transport and Financial Services. With a 40,000-strong workforce, NWS Holdings is committed to achieving sustainable growth across its two core business areas. Facilities Management Services The portfolio of the NWS Holdings offers a range of excellent Group’s Facilities services in Hong Kong, Mainland China Management and Macau, well positioning itself as a segment includes pioneer in its respective business areas facilities rental beyond the regions. and duty free sales. Hong Kong Convention and Exhibition Centre, operated and managed by the Group, is a premier international convention and meeting location for Contracting & Transport exhibitors. Free Duty retails duty free liquor, tobacco, perfume, cosmetics and general merchandize at the immigration zones. With abundant experience in Financial Services contracting, the Group provides high quality construction services for its partners in Hong Kong, Mainland China and Macau. Jointly operating with Chow Tai Fook Enterprises Limited, NWS Holdings is The Group’s Financial Services segment consists of committed to offering corporate finance, asset management, brokerage reliable bus and ferry service, corporate administration and business support services across the for corporate clients, institutional and individual territory. investors. ANNUAL REPORT 2010 3 MAJOR EVENTS AND ACCOLADES 2009 November NWS Holdings became the only corporation to receive the August Third Hong Kong Volunteer Award (Corporate Award) from NWS Holdings’ Annual Report 2008 received Bronze the Agency for Volunteer Service. Award under the “Overall Annual Report – Conglomerate” NWS Holdings garnered the Best Practice Awards 2009 in category and Honours Award in “Overall Annual Report – the “Best Practices in Employee Involvement” category. Diversified Business” category in the 2009 International ARC Awards. The Macao Water Supply Company Limited renewed its water supply concession contract with the Macau Government to 2020, with further extension allowed to August 2030. October November November October NWS Holdings established a sponsored Level 1 American Depositary Receipt facility. NWS Holdings’ Annual Report 2008 won the Silver Award in the “Annual Reports: Diverse Business” category in the December th 20 Annual International Galaxy Awards. NWS Holdings reduced its shareholding interest in Taifook Securities Group Limited from approximately 61.86% to NWS Holdings was presented with the Award of 10,000 roughly 9% following a disposal of shares to Hai Tong (HK) hours for Volunteer Service by the Social Welfare Financial Holdings Limited. Department. Vibro (H.K.) Limited was awarded the Outstanding Hong Kong Convention and Exhibition Centre together with Contractors (Piling), Outstanding Piling Project – the adjacent Golden Bauhinia Square was voted as one of Contractor and Civil Site Safety Team – Contractor in the the 60 top landmarks in China. New Works Projects of Quality Public Housing Construction New World First Bus Services Limited launched the & Maintenance Awards 2009 organized by the Hong Kong Rickshaw Sightseeing Bus, providing two thematic Housing Authority. sightseeing routes. Guangzhou City Northern Ring Road was rated 2008-2009 Guangzhou City Corporate Harmonious in Labour Relation (AA Rating) by the Guangzhou Municipal Labour & Social Security Bureau. 4 NWS HOLDINGS LIMITED MAJOR EVENTS AND ACCOLADES Sino French Water Development Company Limited was 2010 awarded an operation and maintenance contract for two wastewater treatment plants in Dalian Changxing Island January Harbor Industrial Zone. Hong Kong Convention and Exhibition Centre was voted Asia’s Best Convention and Exhibition Centre in the CEI Chongqing Tangjiatuo Waste Water Plant was granted ISO/ Asia Industry Awards 2010. IEC17025: 2005 Laboratory Accreditation Certifi cate (General Requirements for the Competence of Testing and Calibration Laboratories) by China National Accreditation Service for Conformity Assessment. March June May May Hip Hing Construction Company Limited was awarded the contract as the main contractor for Interlink, the landmark Beijing-Zhuhai Expressway Guangzhou-Zhuhai Section warehouse and distribution development project in Company Limited was named the 2008-2009 Advanced Tsing Yi. Enterprise in Compliance with Highway Administration Management by Guangdong Provincial Highway Sino-French Holdings (Hong Kong) Limited was named Administration Bureau. one of the Top Ten Most Infl uential Enterprises in Mainland China’s Water Industry Annual Award for 2009. Through its equity joint venture company “Chongqing Sino French Water Investment Co. Ltd.”, Sino French Water Development Company Limited signed an agreement February to acquire interest in a 50-year concession contract for industrial water services in Chongqing Changshou NWS Hong Kong Geo Wonders Hike 2008 was honoured Chemical Industry Park. with a Silver Award in Promotion/Marketing: Environmental Protection Category at the 23rd International Mercury Awards. June NWS Holdings entered into an agreement with Fung Seng March Enterprises Limited to dispose of certain subsidiaries engaged in service businesses. Chongqing Water Group Company Limited, NWS Holdings and Suez Environnement jointly owned a 13.44% stake, NWS Holdings entered into the share transfer agreement was listed on Shanghai Stock Exchange. for acquiring 8% equity interest in China United International Rail Containers Co., Limited that will increase April the Group’s shareholding from 22% to 30%. The Atrium Link Extension of Hong Kong Convention and NWS Holdings became a diamond sponsor of Hong Kong’s Exhibition Centre won the Quality Building Award 2010 – participation in the Shanghai Expo. Grand Award in Hong Kong