Sun Hung Kai Properties
|Traded as||SEHK: 0016|
|Founded||1963 (listed in 1972)|
|Founder||Kwok Tak Seng, Fung King Hey, Lee Shau Kee|
|Headquarters||Sun Hung Kai Centre,
30 Harbour Road, Wanchai,
Hong Kong, SAR
|Raymond Kwok, Chairman and Managing Director
Adam Kwok, Executive Director
|Products||Real estate, investment, hotels,
|Revenue||HKD 66.8 billion (2014/15 FY)|
|Total equity||HKD 456,818 million|
|Owner||Raymond Kwok and Thomas Kwok 45%|
Number of employees
|About 37,000 (as at December 2015)|
|Subsidiaries||SmarTone Telecommunications Holdings Limited (66.7%)|
Sun Hung Kai Properties Ltd. (SHKP; Chinese: 新鴻基地產發展有限公司) (SEHK: 0016) is a listed corporation based in Hong Kong. The company is controlled by the family trust set up by Kwok Tak Seng, who founded the company.
It is among the most valuable real estate companies in Hong Kong and in Asia, and reputes (as per BBC News) to be the second most valuable real estate company in the world. It is controlled in large by the Kwok brothers.
- 1 History
- 2 Company profile
- 3 Corruption probe
- 4 References
- 5 External links
The company was one of many non-British owned companies that overtook the British trading companies or 'hongs' that dominated the financial order in Hong Kong prior to 1997. The company was founded in 1963 by the elder Kwok, together with Fung King-hei and Lee Shau Kee, and was listed on the Hong Kong Stock Exchange in 1972.
1972 – 1980
On 14 July 1972, Sun Hung Kai Properties is incorporated in Hong Kong.
On 23 August 1972, SHKP goes public and is listed on the Hong Kong Stock Exchange (SEHK: 0016)
In 1973, SHKP acquires Hong Yip Service Company Limited.
In 1978, SHKP establishes Kai Shing Management Services Limited.
In 1978, SHKP puts on sale the first multi-block residential estate, Tsuen Wan Centre (First Phase).
In 1978, SHKP becomes one of the 33 constituent stocks listed of the Hang Seng Index.
In 1979, SHKP establishes Sun Hung Kai Properties Insurance Limited
1981 – 1990
In 1981, SHKP acquires interest in Kowloon Motor Bus Company (1933) Limited.
In 1982, SHKP moves its headquarters to Sun Hung Kai Centre, Wan Chai.
In 1986, SHKP becomes the first developer to provide air conditioners in new residential developments, starting with Tsuen King Gardens in Tsuen Wan.
1991 – 2000
In 1991, SHKP acquires Wilson Parking (Hong Kong Limited).
In 1992, SHKP finishes construction of Central Plaza, Wan Chai, the tallest building in Asia at the time of completion.
In 1992, SHKP establishes SmarTone Telecommunications Holdings Limited.
In 1993, SHKP acquires World Trade Centre, Causeway Bay.
In 1994, SHKP receives an "A" international credit rating of A from Standard & Poor's.
In 1995, SHKP receives an "A3" international credit ration from Moody's.
In 1996, SmarTone Telecommunications Holdings Limited, a subsidiary of SHKP, is listed in Hong Kong.
In 1996, SHKP sets up the SHKP Club, the first customer loyalty programme for property buyers in Hong Kong.
In 1996, SHKP is selected as one of the developers for the MTR Airport Express Hong Kong Station, the biggest private commercial property project in Hong Kong at the time.
In 1996, SHKP sets up Property Liaison Team to check units before handover and SHKP becomes the first property developer in Hong Kong to provide one-year guarantee on new residential units.
In 1998, Route 3 (Country Park Section) opens.
In 1999, Completion of Shanghai Central Plaza commercial building.
In 2000, SHKP wins tender for Kowloon Station Development Packages 5, 6 & 7 – now the International Commerce Centre (ICC) complex.
In 2000, SUNeVision Holdings Limited, a subsidiary of SHKP, is listed on the Growth Enterprise Market of the Stock Exchange of Hong Kong.
2001 - 2010
In 2001, SHKP establishes luxury residential leasing division Signature Homes.
In 2003, SHKP signs land-use transfer agreement with Shanghai Lujiazui Finance and Trade Zone Development Company for Shanghai IFC project.
In 2005, SHKP opens APM, Hong Kong’s first late-night retail centre.
In 2005, SHKP acquires Seiyu (Sha Tin) Company Limited.
In 2007, SHKP becomes the first Hong Kong developer to offer two-year quality guarantee on new flats.
In 2009, Ma Wan Park Noah's Ark opens, the first Christian theme park in Hong Kong.
In 2010, SHKP finishes construction of ICC at Kowloon Station, the tallest building in Hong Kong at the time of completion.
SHKP was publicly listed in 1972 and is one of the largest property companies in Hong Kong. It specialises in premium-quality residential and commercial projects for sale and investment. It employs about 37,000 people and has in-house expertise in land acquisition, architecture, construction, engineering and property management.
SHKP's core business is the development of property for sale and investment. It achieved a revenue of HK$66,783 million in financial year 2014/15, with profit attributable to shareholders of HK$31,082 million. The majority of its revenues and operating profit was derived from property sales and rental.
As of 31 December 2015, the Group has a land bank in Hong Kong of 52.2 million square feet in terms of attributable gross floor area, consisting of 28.8 million square feet of completed investment properties and 23.4 million square feet of properties under development. The Group also owns over 30 million square feet (site area) of agricultural land in the New Territories, primarily along rail lines. The majority of this is in various stages of land use conversion.
As of 31 December 2015, the Group holds a land bank of 70.4 million square feet in terms of attributable gross floor area on the mainland, including 58.7 million square feet of properties for development and 11.7 million square feet of completed properties for rent. The Group has a selective and focused investment strategy, concentrating on prime cities.
The Group has always attained the highest credit ratings amongst Hong Kong developers. Moody's gave the Group an A1 rating and Standard & Poor's gave the Group an A+ rating.
The company also has complementary operations in the following property related fields:
- Property management
- Information technology
- Infrastructure and other businesses
It was once reported in a local newspaper that the company and Cheung Kong (Holdings) are together increasingly dominant in the development of new private homes, accounting for 70% of the market in 2010, up from around half of that in 2003. This concentration, with much of the rest of the market occupied by other very large firms, is attributed to the government's policy of auctioning land in expensively large blocks, squeezing out small and mid-sized firms, according to the Consumer Council.
Nevertheless, clarification was later made in the letters to editors column in the same newspaper that Sun Hung Kai Properties’ overall share of primary residential sales in terms of attributable value from January to July 2010 has been approximately 20% – a figure that has been largely stable over the last few years.
It has been, and continues to be involved in a number of high-profile projects in Hong Kong. In 1996, SHKP was the lead developer which had bid the sum of HK$5.5 billion to acquire the rights to develop Hong Kong's second-tallest building, the International Finance Centre. The MTR Corporation was a partner in the venture. Sun Hung Kai Properties, owns 47.5 per cent of the development, Henderson Land Development, whose chairman Lee Shau Kee sits on the SHKP board, took a 32.5 per cent stake in the project. SHKP also built the International Commerce Centre, the tallest building in Hong Kong.
"Temporary" leave of Walter Kwok
On 18 February 2008, SHKP announced that Walter Kwok, Chairman and Chief Executive, would take a "temporary leave of absence for personal reasons with immediate effect". Walter Kwok announced that he would take a "personal holiday", handing over his duties to his two younger brothers.
The suddenness of his departure caused a huge stir in Hong Kong. The Standard reported that the elder Kwok was removed from his position by his mother, who is the controlling shareholder of the company, to protect the family interests. The journal revealed that Walter's mistress of 4 years has been wielding increasing power in the business, and causing friction with his brothers.
SHKP's announcement left the financial markets hungry for more disclosure, causing its stock price to decline against the general market the following day. Corporate communications issued a second statement insisting that the business would not be affected, and that Walter would resume his functions after his leave of 2 to 3 months. Walter's mistress, named by the press as Ida Tong Kam-hing (唐錦馨), had apparently introduced property transactions valued at HK$4 billion to the Group or to the Kwoks' private investment vehicles. Company spokesmen stated that no person named Ida Tong was employed by the Group.
On 29 February, tycoon and fellow board member Lee Shau Kee confirmed that Mrs. Kwok forced the leave of absence upon Walter over Ida Tong during the last board meeting.
On 16 May 2008, Walter filed a writ with the High Court which claimed that Walter reached an agreement with his mother and two brothers in February that he would return to his duties if certain conditions were met. Walter alleged that his two brothers violated the agreement by attempting to remove him despite having fulfilled the pre-defined criteria, including procuring at least two medical opinions showing he is fit to return. Walter secured a last-minute injunction to delay the vote, to allow more time for discussions. On the sidelines of the dispute to remove Walter as Chairman and CEO, Walter and his brothers claim the other(s) made major management decisions unwisely and without consultation.
The Hong Kong business community was shaken by the arrest of SHK Executive Director Thomas Chan by the Independent Commission Against Corruption (ICAC) on 19 March. There were further shock waves when eight people linked to the company in the afternoon on 29 March 2012. Co-chairmen Thomas and Raymond Kwok and five others were arrested by the ICAC as part of an extensive corruption probe. Rafael Hui, former chief secretary, was also taken in for questioning. They were later released on bail. The probe caused a 15 percent fall in the company's share price, and a downgrading of the company's outlook.
In December 2014, the jury convicted Thomas Kwok and Rafael Hui of the HK$8,500,000 bribery, and Hui was convicted of four more charges relating to misconduct in public office. The jury acquitted Raymond Kwok from all changes.
- "Who are the Kwok brothers?". BBC News. 18 April 2012. Retrieved 29 August 2015.
- "About SHKP". Sun Hung Kai Properties. Retrieved 1 November 2011.
- "Sun Hung Kai Properties - History and Milestones".
- "Sun Hung Kai Properties - History and Milestones".
- "HKEXnews - THE SHKP CHRONOLOGY" (PDF).
- "Sun Hung kai Propreties Insurance Ltd - Company Profile".
- "Hong Kong mobile network operator SmarTone looks to 'next stage of growth' with new CEO".
- "World Trade Centre gets huge facelift".
- "Milestones - Our Company - Smartone".
- "About us - SHKP Club".
- "THE SHKP CHRONOLOGY – 30 YEARS AT A GLANCE" (PDF).
- "Highway project reaches end of road".
- "Property players vie for Shanghai 'Wall St' last gem".
- "THE SHKP CHRONOLOGY – 30 YEARS AT A GLANCE" (PDF).
- "Grand YOHO劈價新地洗底 「放監」郭炳江炮製黃金雞地".
- "YoHo Town sales spur property counters".
- "Lujiazui project".
- "Millennium City Phase V – APM".
- "The Kwok Brothers Who Re-Created Noah's Ark".
- "Credit Ratings". Sun Hung Kai Properties. Retrieved 5 August 2011.
- Kwok, Vivian (12 Aug 2010). "Two developers tower over market". SCMP. Retrieved 12 Aug 2010.
- Letters to editors (1 Sep 2010). "Sun Hung Kai offers small flats". SCMP. Retrieved 1 Sep 2010.
- Bloomberg (18 June 2003). "Tenanting tallest tower looks likely to be a tall order". The Standard. Hong Kong. Retrieved 23 March 2007.
- "Annual Report 2006" (PDF). Sun Hung Kai Properties. 2007. Retrieved 10 April 2007.
- Press Release:Leave of absence of Chairman and Chief Executive Sun Hung Kai Properties, 18 February 2008
- Staff reporter, "Lover feud splits Kwok brothers", The Standard, 19 February 2008
- "Walter will return, says SHK" (新地﹕郭炳湘將重返公司", Ming Pao, 20 February 2008
- Staff reporter, "My ex-wife fell for a Kwok", The Standard, 20 February 2008
- Benjamin Scent, Katherine Ng & Stephanie Tong, "Sensational accusations fly as SHKP chairman takes his fight to court", The Standard, 16 May 2008
- Benjamin Scent, "Fallout over Chan appointment", The Standard, 16 May 2008
- Katherine Ng, "ICC rents caught in Kwok feud", The Standard, 21 May 2008
- Wong, Kelvin – Bloomberg News (30 March 2012). Sun Hung Kai Loses $5.8 Billion on Billionaire Kwoks' Arrest. San Francisco Chronicle.
- "Former chief secretary Rafael Hui found guilty." RTHK English News. 19 December 2014. Retrieved 19 December 2014.
- Lee Yimou; Ko, Lizzie (19 December 2014). "Hong Kong former official, property tycoon guilty in graft case." Reuters. Retrieved 19 December 2014.
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