Wikipedia

New World Development

New World Development Company Limited (NWD), is a Hong Kong–based company focused on property, hotels, infrastructure and services and department stores. It was established on 29 May 1970 by Cheng Yu-tung. The company is publicly listed on the Stock Exchange of Hong Kong Limited (SEHK: 17) since 23 November 1972 and is a constituent stock of Hong Kong Hang Seng Index.[1]

New World Development Company Limited
新世界發展有限公司
Company typePublic Company
Industryconglomerate
Founded29 May 1970 Edit this on Wikidata
FounderCheng Yu-tung
HeadquartersNew World Tower [zh]
Central, Hong Kong
Key people
Henry Cheng (Chairman)
Ma Siu Cheung（Chief Executive Officer）
ProductsReal property, Hotel, Infrastructure and Services, General merchandise
RevenueHK $59,6 billion (as of financial year 2016)
OwnerChow Tai Fook Enterprises Limited
Number of employees
About 50,000 people (as of financial year 2014)
Subsidiaries
Websitewww.nwd.com.hk
New World Development
Traditional Chinese新世界發展有限公司
Simplified Chinese新世界发展有限公司
Transcriptions
Standard Mandarin
Hanyu PinyinXīn Shìjiè Fā​zhǎn Yǒuxiàngōngsī​
Yue: Cantonese
Jyutpingsan1 sai3 gaai3 faat3 zin2 jau5 haan6 gung1 si1

Over the last four decades, the group has also actively participated in various businesses in Mainland China and established itself as one of the largest foreign direct investors in the country. The group's existing investments in Mainland China has exceeded US$16.5 billion, spreading across four municipalities and over 19 provinces.[1]

History

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New World Development was founded on May 29, 1970,[2] with Dr. Ho Sin Hang as chairman and Cheng Yu-tung as Director and General Manager. The group went public on the Stock Exchange of Hong Kong Limited (SEHK) (SEHK: 17) in 1972.[3]

Group Reorganization

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To bring together infrastructure projects in Hong Kong and Mainland China, New World Infrastructure Limited (NWI) was created and listed on SEHK (SEHK: 301) in October 1995.[4] New World Services Limited (NWS) was then formed in April 1997 to integrate the group's service-related businesses.[5] By July 1999, New World China Land Limited (NWCL) was launched to consolidate the group’s property projects in Mainland China and was listed on SEHK (SEHK: 917).[6]

In September 2001, NWS purchased all outstanding shares of Ngo Kee Construction Company Limited.[7] A year later, Pacific Ports Company Limited (PPC) acquired NWI and took ownership of NWS from NWD.[8]

Reorganization of New World Group was finalized in January 2003.[9] Following a name change from Pacific Ports Company Limited, NWS Holdings Limited emerged as the group's service flagship, overseeing operations in services, infrastructure, and ports across Hong Kong, Macau, and Mainland China.[10] All group shares were consolidated under NWS Holdings Limited, which then commenced trading on SEHK.[11]

Recent Developments

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New World Department Store China Limited (SEHK: 0825) went public on SEHK in July 2007.[12] The Guangzhou Dongxin Expressway—in which NWS Holdings owned a 40.8% ownership stake—officially inaugurated in December 2010.[13]

In April 2015, NWD formed a 50-50 joint venture with HIP Company Limited, a subsidiary of The Abu Dhabi Investment Authority,[14] to acquire the Grand Hyatt Hong Kong, Renaissance Harbour View, and Hyatt Regency TST with a deal valued at HK$18.5 billion, resulted in NWD receiving approximately HK$10 billion.[15] NWD then launched its new healthcare brand, Humansa, and acquired FTLife in November and December 2018, respectively.[16][17]

In October 2020, the group revealed plans to conserve Hong Kong’s 68-year-old State Theatre, a Grade I historic site,[18] partnering with local and international designers and artisans.[19] In that month, the group began selling THE PAVILIA FARM I, attracting 22,700 registrations in the first round,[20] the highest for any residential property in Hong Kong since 1997.[21] The group also committed over HKD 10 billion to create a large-scale cultural and retail complex in Prince Bay, Shenzhen.[22]

In November 2020, NWD named its mixed-use development project within the SKYCITY complex at the Hong Kong International Airport "11 SKIES".[23] NWD established Share for Good, Hong Kong's first large-scale crowd-donation platform in March 2022, to meet the immediate needs of the impoverished in the fifth wave of COVID-19.[24] In collaboration with Rafa Nadal Academy, Hong Kong Golf & Tennis Academy welcomed Asia's first Rafa Nadal Tennis Center in July 2022.[25]

NWD collaborated with 4 corporations in July 2023 to establish the first "Smart Community" in a transitional housing complex.[26] NWD signed Hong Kong's first "Project Cooperation Agreement regarding Northern Metropolis" in December 2023, to develop a commercial and residential project in the Northern Metropolis with CR Land.[27]

In 2024, NWD reported a HK$19.7 billion net loss for the year ended 30 June, the worst since the company was founded in 1970. Adrian Cheng Chi-Kong, the grandson of Cheng Yu-tung, was forced to step down as CEO in September. In December, NWD was kicked out of the Hang Seng Index (HSI). [28] In the same month of being kicked out of HSI, Debtwire reported that NWD have sent out a letter to its bank lenders, seeking a waiver on loan conditions. NWD was seeking forbearance, after its net debt-to-assets ratio breached the 100 per cent threshold that may allow its lenders to recall their loans. [29]

Organization

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The head office is in the New World Tower [zh] in Central, Hong Kong.[30]

New World Development owns listed companies NWS Holdings and New World Department Store China. New World China Land Limited is wholly owned by New World Development. The company also owned former listed company New World Hotels (Holdings). Rosewood Hotel Group, an hotel management company, is a former subsidiary of NWD group.

New World Development and sister listed company Chow Tai Fook Jewellery Group are both majority owned by privately owned Chow Tai Fook (Holding).

New World Development Company Limited is one of the Hong Kong companies who have a large landbank. As at 31 December 2014, the group had a landbank of around 9.25 million sq ft, of which around 5.3 million sq ft was residential property. The group had a total of approximately 18.3 million sq ft of attributable agricultural land reserve pending for conversion.

Cultural Values

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The Group's brand personality is defined by “The Artisanal Movement”, which is described as a journey that expands imagination beyond mere aesthetics, focusing on the creation of a modern living culture rooted in originality and bespoke craftsmanship. It encourages its staff to think creatively and develop unique ideas that enhance customer experiences.[31]

The five core elements are:

  • Imagination
  • Bespoke
  • Craftsmanship
  • Heritage
  • Contemporary[32]

These elements collectively aim to foster a culture that values human creativity, sustainability, and social responsibility.[31]

Core Business

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Properties[33]

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Major Properties for Sale in Hong Kong

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Major Properties for Lease in Hong Kong[39]

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Other Businesses

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Hotels and Residences

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Healthcare Services

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Education

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Senior Leadership

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  • Chairman: Henry Cheng (since March 2012)[49]
  • Chief Executive: Echo Huang (since November 2024)

Former chairmen

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  1. Ho Sin-hang (1970–1982)
  2. Cheng Yu-tung (1982–2012)

Former chief executives

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This position was formerly known as Managing Director (until 2012) and General Manager (until 2020)

  1. Cheng Yu-tung (1970–1989)
  2. Henry Cheng (1989–2012)
  3. Adrian Cheng and Chen Guanzhan (2012–2017); co-general managers
  4. Adrian Cheng (2017–2024)
  5. Eric Ma (2024)[49]

Membership and Loyalty Program

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New World CLUB[50]

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The New World CLUB is a loyalty program operated by the New World Group that offers members benefit such as exclusive discounts and events. There are currently 3 membership tiers.

Membership Tiers：[51]
Tiers CIRCLE VIVA DIAMOND
Threshold 18 years old or above Current owners or tenants of New World Residential Properties Current owners of New World Residential Properties with total purchase price of HK$20 million or more; or Current tenants of New World Residential Properties with monthly rental of HK$60,000.
Membership Tiers Exclusive Offers
Discount on Selected Property Units      
Previews for Selected Properties    
Shopping Offers      
Hotel Dining Offers    
Birthday Privilege    
24x7 Personalized Concierge Service  
Exclusive Events and Workshops      
Parking Offers    
New World CLUB eNews Subscription      

K Dollar Program

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The K Dollar Program is a loyalty initiative developed in collaboration between New World Development, K11, and Chow Tai Fook.[52] By becoming a KLUB 11 member and linking to the K Dollar Program account, members can earn K Dollars, which can be used as instant cash at a wide range of participating merchants. A minimum spending amount of 10 K Dollars is required for redemption. The K Dollar conversion rate varies by KLUB 11 tier:[53]

Tier Genearl Member Gold Card Member Black Card Member
K Dollar Conversion Rate Cumulative spending HK$250 = Up to 1 K Dollars Cumulative spending HK$250 = Up to 1.5 K Dollars Cumulative spending HK$250 = Up to 2 K Dollars

The program features over 1,000 merchants throughout Hong Kong, including locations within K11 Art Mall and Victoria Dockside.[54][55]

In March 2024, a feature was introduced allowing members to link their Visa cards to the K11 HK app, enabling automatic earning of K Dollars without the need to queue up at the concierge, upload receipts, or scan the QR codes. This integration is part of a multi-year partnership between New World Development (NWD) and Visa to deepen customer engagement and stimulate local spend.[56] Upon linking their Visa cards to the K11 HK app, customers who spend with Visa can earn K Dollars automatically.[57]

Controversies

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Hung Hom Peninsula

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The Hung Hom Peninsula was sold for a below-market land premium of HK$864 million to New World Development, who subsequently sold off half share to Sun Hung Kai Properties. In 2004, the consortium announced the demolition of these buildings to make way for luxury apartments, to be faced with huge popular outcry about the needless destruction of "perfectly good buildings" to satisfy "corporate greed". In an unprecedented about-turn, the developers withdrew the plan on 10 December 2004.[58]

Leung Chin-man

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Main article: Leung Chin-man appointment controversy

In 2008, New World was the subject of controversy when it announced it had hired former Permanent Secretary for Housing, Planning and Lands Leung Chin-man as deputy managing director and executive director of its China subsidiary, New World China Land Ltd. The Secretary for the Civil Service Denise Yue Chung-yee, signed off on the approval for him to take up the job within three years of leaving,[59] failing to take into account the appearance of conflict of interest resulting from the Hung Hom Peninsula affair.[60] New World argued that they hired Leung in good faith, after the government had given clearance. New World announced in the early hours of 16 August that the parties had agreed to rescind the contract.[61]

Avenue of Stars

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See also: Tsim Sha Tsui Waterfront Revitalisation Plan

The company has managed the Avenue of Stars for 11 years[when?], and its contract is due to expire. It was announced that the Leisure and Cultural Services Department of the Hong Kong government would redevelop and expand the avenue jointly with the company.[62] The Hong Kong government declared that the enhancement project would contain limited commercial appeal, and no luxury shops or high-end restaurants would be added.[63] The walkway, very popular with tourists, was closed off for three years while the expansion was undertaken.[64]

The decision to award the contract for the redevelopment to the company without putting it out to tender, on the justification that the project was non-profit, sparked controversy locally.[65] Residents' groups and other development companies owning properties adjacent to the walk expressed discontent, whilst the LCSD claimed that consultations with the local district council had been favourable.[66] In an apparent attempt to de-fuse the public furore at the apparent collusion between government and big business, the government promised a public consultation.[67]

Chubby Hearts

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HK$7.8 million was granted by the Hong Kong Mega Arts and Cultural Events Committee to host in February 2024 Chubby Hearts by British designer Anya Hindmarch, who has a shop in K11 Musea, a mall founded by New World Development.

See also

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References

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  1. ^ a b "Corporate | New World Development Company Limited Official Website". www.nwd.com.hk. Retrieved 8 October 2015.
  2. ^ "New World Development | Company Overview & News". Forbes. Retrieved 2 September 2024.
  3. ^ "New World Development Company". Legal500. Retrieved 2 September 2024.
  4. ^ "New World Infrastructure Limited 2002 Annual Report" (PDF). The Stock Exchange of Hong Kong. 31 October 2002. Retrieved 2 September 2024.
  5. ^ "NWS HOLDINGS Company Profile & Introduction - Moomoo". www.moomoo.com. Retrieved 2 September 2024.
  6. ^ "新世界中国地产有限公司简介". 深圳市前海深港现代服务业合作区管理局. 4 May 2016. Retrieved 6 September 2024.
  7. ^ "Shanghainese Builders in Hong Kong (Part Five) – Ngo Kee and Sung Foo Kee/Lidell – The Industrial History of Hong Kong Group". industrialhistoryhk.org. Retrieved 6 September 2024.
  8. ^ "Pacific Ports Company Limited Financial Review" (PDF). The Stock Exchange of Hong Kong Limited. Retrieved 6 September 2024.
  9. ^ "NWS Holdings Limited Annual Report 2003" (PDF). The Stock Exchange of Hong Kong Limited. Retrieved 6 September 2024.
  10. ^ "Circulars Relating to New World Group Reorganization" (PDF). NWS Holdings Limited. Retrieved 10 September 2024.
  11. ^ "Reorganization of New World Group" (PDF). The Stock Exchange of Hong Kong Limited. Retrieved 10 September 2024.
  12. ^ "New World Department Store China Limited Annual Report 2007" (PDF). The Stock Exchange of Hong Kong Limited. Retrieved 10 September 2024.
  13. ^ "新創建廣州東新高速開通 - 香港文匯報". paper.wenweipo.com. Retrieved 10 September 2024.
  14. ^ "New World Development sells Hong Kong hotel stakes to Abu Dhabi investor for HK$18.5 billion". South China Morning Post. 30 April 2015. Retrieved 13 September 2024.
  15. ^ Venna, Srivani (30 April 2015). "New World Development to sell three hotels to Abu Dhabi Investment Authority for $2.4bn". Hotel Management Network. Retrieved 13 September 2024.
  16. ^ "信健康-- 高科技專業團隊結合醫養概念 Humansa仁山優社為熟齡及銀髮人士提供全方位專業服務". 信健康. Retrieved 13 September 2024.
  17. ^ "Hong Kong's NWS Holdings to buy FTLife Insurance for $2.8 billion". Reuters. 28 December 2018. Retrieved 13 September 2024.
  18. ^ "Hong Kong's iconic State Theatre to be preserved under multibillion-dollar redevelopment plan". South China Morning Post. Retrieved 19 September 2024.
  19. ^ Soriano, Jianne. "Adrian Cheng's New Project Aims To Conserve Hong Kong's Last Surviving Movie Palace". Tatler Asia. Retrieved 19 September 2024.
  20. ^ "New World Development launches Hong Kong project at lower-than-expected prices". South China Morning Post. 9 October 2020. Retrieved 23 September 2024.
  21. ^ Standard, The. "Deja vu craze seen in Tai Wai home project". The Standard. Retrieved 23 September 2024.
  22. ^ Van, Tong (19 July 2022). "K11 unveils US$1.4 billion Shenzhen flagship project". Inside Retail Asia. Retrieved 23 September 2024.
  23. ^ Standard, The. "New World names airport project 11 Skies". The Standard. Retrieved 17 September 2024.
  24. ^ "New World's Share for Good platform fights Covid-19 with crowd donations". South China Morning Post. 17 March 2022. Retrieved 17 September 2024.
  25. ^ "Rafa Nadal Tennis Center Hong Kong". RNA International. Retrieved 17 September 2024.
  26. ^ Standard, The. "NWD joins hands with Microsoft and HKT to create "smart community" in transitional housing projects". The Standard. Retrieved 19 September 2024.
  27. ^ Standard, The. "NWD to construct 2,000 homes in Northern Metropolis with China Merchants Shekou". The Standard. Retrieved 19 September 2024.
  28. ^ "New World Development ejected from Hang Seng Index". South China Morning Post. 22 November 2024. Retrieved 23 December 2024.
  29. ^ "New World Development takes more beating in market as debt crisis lingers". South China Morning Post. 17 December 2024. Retrieved 23 December 2024.
  30. ^ "Contact Us". New World Development. Retrieved 15 September 2022. 30/F, New World Tower, 18 Queen's Road, Central, Hong Kong - Traditional Chinese address: "香港中環皇后大道中18號新世界大廈30樓", Simplified Chinese address: "香港中环皇后大道中18号新世界大厦30楼"
  31. ^ a b "NEW WORLD DEVELOPMENT COMPANY LIMITED | HR Asia Best Companies To Work For In Asia". 29 September 2021. Retrieved 7 October 2024.
  32. ^ Ho, David W.I. (2016). "A Cultural Brand's Journey Toward Building A Better New World" (PDF). Council on Tall Buildings and Urban Habitat. Archived (PDF) from the original on 22 October 2020. Retrieved 7 October 2024.
  33. ^ "Corporate | New World Development Company Limited Official Website". www.nwd.com.hk. Retrieved 13 August 2024.
  34. ^ "NWD breaks Hong Kong record with the highest number of registrations for The Pavilia Farm III". PR Newswire. Retrieved 13 August 2024.
  35. ^ "Mount Pavilia First-Ever Sculpture Park Living In Clear Water Bay". SCMP. 26 June 2017. Retrieved 13 August 2024.
  36. ^ "Hong Kong's New World, Far East primed for sell-out at Pavilia Forest I amid strong demand". SCMP. 13 July 2024. Retrieved 3 October 2024.
  37. ^ "Atrium House 瑧頤". Midland Realty. Retrieved 13 August 2024.
  38. ^ "Double Cove Phase 3 Double Cove Starview Prime 迎海 3期 迎海‧星灣御". Centaline Property. Retrieved 13 August 2024.
  39. ^ "Leadership | Group | Chow Tai Fook Jewellery Group". www.ctfjewellerygroup.com. Retrieved 5 August 2024.
  40. ^ a b "New World Development puts 18 units up for sale at its recently completed Cheung Sha Wan office tower". South China Morning Post. Retrieved 19 August 2024.
  41. ^ "NWD's Artisan Hub is sold out". The Standard. Retrieved 19 August 2024.
  42. ^ "New World names airport project 11 Skies". The Standard. Retrieved 19 August 2024.
  43. ^ "Mount Pavilia First-Ever Sculpture Park Living In Clear Water Bay". South China Morning Post. Retrieved 19 August 2024.
  44. ^ "Bakery moves into Artisan Lab". The Standard. Retrieved 19 August 2024.
  45. ^ "New World Development's Latest Residential Project from their Bohemian Collection". Pacific Rim Construction. Retrieved 19 August 2024.
  46. ^ "New World consortium launches HK$30b Kai Tak stadium project". The Standard. Retrieved 19 August 2024.
  47. ^ "Sonia Cheng, scion of Hong Kong's New World billionaire family, is steering the Rosewood hotel brand to new heights". Hospitalitynet. Retrieved 19 August 2024.
  48. ^ "Asia's First Rafa Nadal Tennis Center to launch at Hong Kong Golf & Tennis Academy in Sai Kung". South China Morning Post. Retrieved 30 August 2024.
  49. ^ a b HKEXnews (18 December 2023). "Appointment Of Chief Operating Officer" (PDF). HKEXnews. Retrieved 19 August 2024.
  50. ^ Club, New World. "New World CLUB serves as a window to explore the brand of New World "The Artisanal Movement"". www.newworldclub.com.hk (in Chinese (Hong Kong)). Retrieved 25 September 2024.
  51. ^ 小斯 (23 June 2021). "k11 New World Club優惠 申請即有$300 K11購物金額". 小斯 (in Chinese (Taiwan)). Retrieved 25 September 2024.
  52. ^ "Entering to the new era of spending ｜K Dollar Program". K-Dollar. Retrieved 10 October 2024.
  53. ^ "K Dollar | KLUB 11". klub-11.com. Retrieved 15 October 2024.
  54. ^ "K Dollar Program – Digital Transformation Support Pilot Programme". dtspp.cyberport.hk. Retrieved 10 October 2024.
  55. ^ "Our Affiliates". K-Dollar. Retrieved 10 October 2024.
  56. ^ "Home | New World Development Company Limited Official Website". www.nwd.com.hk. Retrieved 10 October 2024.
  57. ^ Staff Reporter (19 March 2024). "NWD taps Visa to enhance loyalty rewards under the K Dollar Program". Hong Kong Business. Retrieved 10 October 2024.
  58. ^ Ng, Michael & Teddy (11 December 2004). "Demolition of Hung Hom flats scrapped". The Standard. Archived from the original on 22 May 2011. Retrieved 29 January 2007.
  59. ^ Diana Lee (5 August 2008). "Former housing chief faces legal bid to demolish his job with developer". The Standard. Archived from the original on 11 December 2008. Retrieved 7 August 2008.
  60. ^ Secretary for the Civil Service (15 August 2008). "SCS submits report to Chief Executive on Leung Chin-man's case" (Press release). Civil Service Bureau, Hong Kong Government.
  61. ^ Cheung Chi-fai (16 August 2008). "Ex-housing chief shocked officials didn't consider Hung Hom deal". South China Morning Post. pp. A10.
  62. ^ http://www.thestandard.com.hk/news_detail.asp?we_cat=5&art_id=160695&sid=44880224&con_type=1&d_str=20150831&fc=1 [permanent dead link‍]
  63. ^ Fung, Fanny W. Y. (27 August 2015). "Hong Kong Avenue of Stars expansion won't feature luxury shops or posh restaurants, top officials says amid outcry". South China Morning Post.
  64. ^ Fung, Fanny W. Y. (21 August 2015). "Lights out for Avenue of Stars as iconic Hong Kong site set to shut down for three years despite public outcry". South China Morning Post.
  65. ^ Kammerer, Peter (31 August 2015). "Public outcry over Avenue of Stars plan is a message to the Hong Kong government: No bending of the rules will be tolerated". South China Morning Post.
  66. ^ "Tsim Sha Tsui harbourfront enhancement plan faces opposition". ejinsight.com. Archived from the original on 6 July 2017.
  67. ^ Fung, Fanny (1 September 2015). "Hong Kong government pledges consultation on controversial Avenue of Stars revamp". South China Morning Post.
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