Newer Heights, Bolder Strides

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Newer Heights, Bolder Strides WING TAI HOLDINGS LIMITED Newer Heights, annual report Bolder Strides 07 CONTENTS 02 Chairman’s Message Every Home 06 Has a Story TIMELESS. EXCLUSIVE. MODERN LIFESTYLE INVESTMENT. CONTEMPORARY CITY RHYTHM WITHOUT THE BLUES. Be Our Guest 14 SUPERB LOCATION. PREMIUM HOSPITALITY. EXPERIENCE THE COMFORTS OF HOME IN A DIFFERENT CITY. Tog Sense 18 STYLISH AND INSPIRATIONAL. REVEL IN THE FINEST THREADS. SERIOUSLY CLASSY AND VERSATILE. 24 Year In Year Out CORPORATE DATA.28 BOARD OF DIRECTORS.29 KEY MANAGEMENT STAFF.33 CORPORATE GOVERNANCE.34 FINANCIAL REPORTS.41 SINGAPORE MALAYSIA Wing Tai Holdings Limited DNP Holdings Berhad 3 Killiney Road Kuala Lumpur #10-01 Winsland House I 5 Jalan SS23/11 Singapore 239519 Taman SEA Tel: (65) 6280 9111 47400 Petaling Jaya Fax: (65) 6736 3486 Selangor Darul Ehsan Malaysia 107 Tampines Road Tel: (603) 7806 3211 Singapore 535129 Fax: (603) 7806 3380 Tel: (65) 6309 1200 Fax: (65) 6343 0021 25-3A Jalan SS23/11 www.wingtaiasia.com.sg Taman SEA 47400 Petaling Jaya CHINA Selangor Darul Ehsan Jiaxin (Suzhou) Property Malaysia Development Co., Ltd Tel: (603) 7880 9381/82 8/F Blk 1A Singa Plaza Fax: (603) 7880 9380 No 8 Jinji Hu Road Suzhou Industrial Park Penang PRC 215021 166-A Rifle Range Road Tel: (86) 512 6761 2128 11400 Penang Malaysia Fax: (86) 512 6761 9098 Tel: (604) 828 7291 www.wingtaiasia.com.cn Fax: (604) 828 3998 www.wingtaiasia.com.my HONG KONG USI Holdings Limited Suite 3103 9 Queen’s Road Central Hong Kong Tel: (852) 2525 9798 Fax: (852) 2801 4302 www.usi.com.hk Holding court in Draycott 8 is a 7,000 sq ft award-winning 2- storey colonial clubhouse. This beautifully conserved bungalow houses modern facilities such as an exclusive wine cellar, cigar terrace, Japanese onsen and top- notch concierge service. 2 chAIRMAN’S MEssAGE Chairman’s Message THE SINGAPORE ECONOMY GREW STRONGLY BY 7.6% IN THE FIRST HALF OF 2007 AND IS EXPECTED TO ACHIEVE A GROWTH OF 7.0% TO 8.0% FOR THE FULL YEAR. THE SINGAPORE PROPERTY MARKET SENTIMENT CONTINUES TO BE POSITIVE AND DEMAND FOR RESIDENTIAL PROJECTS HAS REMAINED STRONG. ASIA IS GROWING AT AN ACCELERATED PACE; WITH THE RAPID DEVELOPMENT OF EMERGING MARKETS LED BY THE GROWTH OF CHINA IN PARTICULAR, WE CONTINUE TO SEE GOOD OPPORTUNITIES IN THE REGION’S REAL ESTATE AND RETAIL SECTORS. Delivering Shareholder Value As a result of the improved performance, the Board of Directors The Group achieved a revenue of S$981.6 million for the have recommended a first and final cash dividend of 3 cents current financial year ended 30 June 2007. This represents per share less tax and a special cash dividend of 5 cents per an increase of 10% from the S$889.3 million in the previous share less tax. In addition, to utilise the Company’s section year. This increase is brought about by the higher contribution 44 balance, the Board has proposed a special rights dividend from the development properties as more property units of 25 cents per share less tax and a 1-for-10 Rights Issue of were sold in Draycott 8, Kovan Melody, The Light at Cairnhill up to 72.2 million new ordinary shares at an issue price of and Amaryllis Ville. S$2.05 for each rights share. The Group’s operating profit for the current year is S$421.9 million, an increase of S$311.7 million over the previous year. Sustainable Performance The current year’s operating profit includes the fair value gains Several new and strategically located residential developments of S$189.0 million on investment properties. The fair value in Singapore viz. The Riverine by the Park and Casa Merah, gains were taken into account in the income statement as a were fully subscribed within a month of their releases. We result of the early adoption of the new Financial Reporting shall be releasing more new residential developments located Standard (FRS) 40 Investment Property. Excluding these in the prime districts in the coming year, including Helios gains, the Group’s operating profit still rose by a healthy 112% Residences along Cairnhill Circle, L’Viv on Newton Road and to S$232.9 million in the current year, largely due to profits Belle Vue Residences on Oxley Walk. With the acquisition recognised from the sale of residential property units. of additional freehold, prime residential sites viz. the former Ardmore Point site and the former Anderson 18 site, the Group’s The Group’s net profit attributable to shareholders for the residential development portfolio in Singapore has reached current year is S$381.8 million. This represents an increase 1 million square feet in combined gross floor area. of 198% over the net profit of S$128.0 million recorded in the previous year. New projects in Malaysia also progressed well. The Meritz, launched in January 2007, was fully sold. A luxury condominium The Group’s net gearing ratio has been reduced to 0.4 times along Jalan Ceylon is also targeted for launch. DNP Holdings as at 30 June 2007 from 0.7 times as at 30 June 2006. This Berhad holds about 10.8 million square feet in gross floor has been brought about by the cash generated from the sale area of landbanks in Kuala Lumpur and Penang. of residential property units and the increase in the Group’s net asset value in the current year. VisionCrest Residence is an urban oasis nestled next to the picturesque Fort Caning Park and the beautifully restored House of Helios Residences allures with close proximity to Tan Yeok Nee. Singapore’s prime retail and entertainment hub, cosying up to the lush greens of the Cairnhill enclave. In May 2007, we created a development and investment Wing Tai Retail won several awards in the past year for its real estate platform to inject equity totaling US$450 million management and service excellence. We will continue to to invest in approximately US$1 billion worth of projects in increase synergies across our business lines to achieve China. We are leading the consortium in identifying business brand success, like the repositioning of G2000 in May 2007. opportunities and managing the venture and its assets; our We shall continue to expand our business to seize growth international partners are SEB Immobilien-Investment GmbH opportunities in the retail sector; several new brands are in from Germany, Forum Partners from the United States and the pipeline for the coming year. the Eilam Group Ltd from Israel. Our portfolio of investment properties through Lanson Place Restructuring serviced apartments in Singapore, Malaysia, Hong Kong During the year, through a restructuring exercise, USI Holdings and China, continued to perform strongly and to achieve Limited acquired the Group’s 27.7% interest in Winsor consistently high occupancies averaging above 90% Properties Holdings Limited in exchange for new shares through the year. Benefiting from rising demands for office issued by USI Holdings and Winsor Properties becomes space, healthy occupancies of over 90% were achieved in a subsidiary of USI Holdings. After the restructuring, the Singapore for Winsland House I, Winsland House II, and Group’s interest in USI Holdings increased from 21.0% to Burlington Square. 31.8% and USI Holdings has become the Group’s flagship company in Hong Kong. Our retail arm expanded to achieve S$208 million in revenue under management in the current year. This represents a Building Brand growth of 28% as compared to last year. As of August 2007, WingTai Asia continues to deliver premier developments, quality we have 18 brands in over 160 outlets throughout Singapore products and attention to detail services to customers. As and Malaysia. we expand across Asia, we shall continue to leverage on our brand and engage in corporate citizenry activities to enhance our corporate image and reputation in the communities where we do business. chAIRMAN’S MEssAGE Lanson Place Residences and Lanson Place Hotel extend their trademark premium G2000 is for living, working, flirting and succeeding.R eflecting the latest fashion trends inE urope, hospitality across Singapore, Kuala Lumpur, Hong Kong, Shanghai, and most recently, with quality fabrics at affordable prices. Beijing. Board Movement “The Group’s operating profit for the We welcome Mr Paul Tong Hon To who joined us as Non- Executive Director in August 2007. We bade farewell to Mr current year is S$421.9 million, an Christopher Patrick Langley, OBE and Mr Ne Chen Duen who increase of S$311.7 million over the retired in October 2006 and August 2007, respectively. On previous year.” behalf of the Board, I thank Christopher and Chen Duen for their contributions to the Board over the years. Recognising Contributions I thank my fellow Board members for their invaluable insights and guidance to the Group. I also commend our management and staff for their passion, dedication and integrity, without whom the strong results this past year could not be achieved. Finally, I thank our many stakeholders, including shareholders, customers, bankers, and business partners, for their continued support of the Group. Cheng Wai Keung Chairman 28 September 2007 EVERY HOME HAS A STORY PROPERTY TIMELESS. EXCLUSIVE. MODERN LIFESTYLE INVESTMENT. CONTEMPORARY CITY RHYTHM WITHOUT THE BLUES. 7 A major architectural icon in the Orchard Road area, the Helios Residences will be a beacon of style and luxury. 8 PRopERty Property The Riverine by the Park, sited in the greater Marina Bay area, overlooks a cityscape framed by palm trees, where a new vista unfolds with each sunset. Singapore Singapore residential property market achieved Kovan Melody, a residential development comprising 778 unprecedented benchmark prices, especially in the high- units was completed with Temporary Occupation Permit end luxury sector.
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