(Yicai Global) Sept. 22 -- Hong Kong’s property giant, New World Development Company Ltd. [HK:0017], will reserve HKD16 billion (USD2.05 billion) to HKD20 billion to increase land reserves in the Chinese mainland, the company said.
New World Development held its results announcement presentation for the 2017 fiscal year from July 1, 2016 to June 30, 2017 yesterday, thepaper.cn reported. Its revenue was down 4.94 percent year-on-year to HKD56.63 billion, and net profit dropped by 11.4 percent year-on-year to HKD7.68 billion.
As of June 30, 2017, it had a land reserve with a total gross floor area of approximately 8.2 million square meters in the Chinese mainland, of which approximately 5.1 million square meters is for residential use. The company will focus on south China and first-tier and second-tier cities in mainland China, said Adrian Cheng, general manager of the company.
Instead of securing land through the open market, it may continue to work with partners to secure land or obtain land through stake purchasing, revealed Cheng.
Founded in 1970 by Hong Kong businessman Cheng Yu-tung, New World Development focuses on property development, infrastructure, hotel and service apartments and is one of Hong Kong’s four largest property giants.