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New World Development Company Limited (NWD), is a Hong Kong-based company focused on
property Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depending on the nature of the property, an owner of property may have the right to consume, alter, share, r ...
, hotels, infrastructure and services and
department store A department store is a retail establishment offering a wide range of consumer goods in different areas of the store, each area ("department") specializing in a product category. In modern major cities, the department store made a dramatic app ...
s. It was established on 29 May 1970 by
Cheng Yu-tung Cheng Yu-tung GBM (; 8 August 1925 – 29 September 2016) was a Hong Kong billionaire with extensive property investment, development and service businesses, hotels, infrastructure, jewellery retailing and transportation interests in Hong Kong, ...
. The company is publicly listed on the
Stock Exchange of Hong Kong The Stock Exchange of Hong Kong (SEHK, also known as Hong Kong Stock Exchange) is a stock exchange based in Hong Kong. As of the end of 2020, it has 2,538 listed companies with a combined market capitalization of HK$47 trillion. It is repo ...
Limited (SEHK: 17) since 23 November 1972 and is a constituent stock of Hong Kong
Hang Seng Index The Hang Seng Index (HSI) is a freefloat-adjusted market- capitalization-weighted stock-market index in Hong Kong. It is used to record and monitor daily changes of the largest companies of the Hong Kong stock market and is the main indicator ...
. Over the last four decades, the group has also actively participated in various businesses in
Mainland China "Mainland China" is a geopolitical term defined as the territory governed by the People's Republic of China (including islands like Hainan or Chongming), excluding dependent territories of the PRC, and other territories within Greater 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.


History


Launch and rapid growth

The New World Development (NWD) Company Limited was established on 29 May 1970 to venture into property development. Dr
Ho Sin Hang Ho Sin Hang (; 1900 – 4 December 1997), also known as S. H. Ho and He Shanheng, was a Hong Kong entrepreneur, philanthropist and financier. He co-founded Hang Seng Bank in 1933, and served as its chairman. Ho also cofounded the Hang Chong I ...
was elected Chairman of the company, while Dr.
Cheng Yu-tung Cheng Yu-tung GBM (; 8 August 1925 – 29 September 2016) was a Hong Kong billionaire with extensive property investment, development and service businesses, hotels, infrastructure, jewellery retailing and transportation interests in Hong Kong, ...
was appointed Director and
General Manager A general manager (GM) is an executive who has overall responsibility for managing both the revenue and cost elements of a company's income statement, known as profit & loss (P&L) responsibility. A general manager usually oversees most or all of ...
. Chow Tai Fook Enterprises Limited was the company's largest
shareholder A shareholder (in the United States often referred to as stockholder) of a corporation is an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the legal own ...
. Cheng Tu Yung had bought large properties during the 1960s, and consolidated his real estate assets in NWD. In October 1972, NWD (current ticker symbol: SEHK:17) was listed on the Hong Kong stock exchanges, raising over HK$193 million. On 21 October 1986, Queen
Elizabeth II Elizabeth II (Elizabeth Alexandra Mary; 21 April 1926 – 8 September 2022) was Queen of the United Kingdom and other Commonwealth realms from 6 February 1952 until her death in 2022. She was queen regnant of 32 sovereign states during ...
officiated at the foundation stone laying ceremony of the HKCEC.


Reorganization

In February 1992, New World Development (China) was set up. In October 1995, New World Infrastructure Limited (NWI) (Hong Kong stock code: 301) was formed to consolidate all of NWD's infrastructure projects in Hong Kong and Mainland China, and was listed on HKSE the same month. In April 1997, New World Services Limited (NWS) was established to consolidate all the services-related units within the group. In July 1999, New World China Land Limited (NWCL) (Hong Kong stock code: 917) was formed to consolidate all of NWD's property projects in Mainland China, and was listed on HKSE the same month. In September 2000, the group acquired New World Insurance Services Limited. In September 2001, NWS acquired the entire issued share capital of Ngo Kee Construction Company Limited. In October 2002, Pacific Ports Company Limited (PPC) acquired the traditional infrastructure assets from NWI, and acquired NWS from NWD. In January 2003, the reorganization of New World Group was completed. NWS Holdings Limited, after changing its name from Pacific Ports Company Limited, became the group's service flagship with diversified operations in service, infrastructure and ports in Hong Kong,
Macau Macau or Macao (; ; ; ), officially the Macao Special Administrative Region of the People's Republic of China (MSAR), is a city and special administrative region of China in the western Pearl River Delta by the South China Sea. With a pop ...
and Mainland China. All the group's shares were consolidated under the new name NWS Holdings Limited which began trading on The Stock Exchange of Hong Kong Limited. In May 2005, NWD and Shanghai Industrial jointly invested US$3million into Shinhint Acoustic Link Holdings Ltd., a Hong Kong-based integrated manufacturing services provider for ODM/OEM production of electro-acoustic consumer products. Then it sold Riverside South, a luxury condominium project in New York City on land acquired from
Donald Trump Donald John Trump (born June 14, 1946) is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021. Trump graduated from the Wharton School of the University of Pe ...
, for $1.8 billion – then the largest residential real estate transaction in the history of the city.


Recent developments

In July 2007, New World Department Store China Limited (Hong Kong stock code: 0825) was listed on HKSE. The
Guangzhou Guangzhou (, ; ; or ; ), also known as Canton () and alternatively romanized as Kwongchow or Kwangchow, is the capital and largest city of Guangdong province in southern China. Located on the Pearl River about north-northwest of Hong Kon ...
Dongxin Expressway, in which NWS Holdings held 40.8% equity interest, was officially opened on 31 December 2010. In August 2011, New World Group announced its full support to New World Harbour Race, a sporting event organised by the Hong Kong Amateur Swimming Association after a 33-year hiatus. In December 2013, NWS Holdings Limited acquired equity shares in
Beijing Capital International Airport Beijing Capital International Airport is one of two international airports serving Beijing, the other one being Beijing Daxing International Airport (PKX). It is located northeast of Beijing's city center, in an exclave of Chaoyang District ...
to become its second largest shareholder. In April 2015, New World Development Company Limited and HIP Company Limited (HIP), a wholly owned subsidiary of The
Abu Dhabi Investment Authority The Abu Dhabi Investment Authority ( ar, جهاز أبوظبي للاستثمار, ADIA) is a sovereign wealth fund owned by the Emirate of Abu Dhabi (in the United Arab Emirates) founded for the purpose of investing funds on behalf of the Gover ...
(ADIA), established a new joint venture company that own the
Grand Hyatt Hong Kong The Grand Hyatt Hong Kong is a luxury Hyatt hotel in Hong Kong, and the Asian flagship of Hyatt International. It has been described in a ''New York Times'' travel article as a "world-famous prestige" property. It opened on 21 November 1989 and ...
, the Renaissance Harbour View and
Hyatt Regency Hyatt Hotels Corporation, commonly known as Hyatt Hotels & Resorts, is an American multinational hospitality company headquartered in the Riverside Plaza area of Chicago that manages and franchises luxury and business hotels, resorts, and vacat ...
TST (the "Hotels"). The total consideration for the sale and transfer of the Hotels is HK$18,500 million, out of which approximately HK$10,082 million was received by NWD. In 2016, the company decided to shift its strategy towards the country's main cities and move away from second-tier agglomerations. In November 2018, NWD launched the new healthcare brand Humansa. In December 2018, NWS Holdings bought in cash the entire issued capital of the Hong Kong insurer FTLife. In September 2019, the group donated 3 million square feet of its farmland reserves towards building social housing.


Organization

The head office is in the in
Central, Hong Kong Central (also Central District) is the central business district of Hong Kong. It is located in Central and Western District, on the north shore of Hong Kong Island, across Victoria Harbour from Tsim Sha Tsui, the southernmost point of Kowloo ...
. New World Development owns listed companies
NWS Holdings NWS Holdings Limited () is the conglomerate flagship of New World Development. It was established in 2002 when its predecessor, Pacific Ports Company Limited, acquired New World Services Limited from New World Development and the infrastructure a ...
and
New World Department Store China New World Department Store China Limited is a Hong Kong-based holding company for department store chains in the Mainland China. New World Department Store China is a subsidiary of another listed company New World Development. It has self-owned st ...
. New World China Land Limited is wholly owned by New World Development. The company also owned former listed company
New World Hotels (Holdings) New World Hotels (Holdings) Limited, formerly known as Kai Tak Land Investment Limited, is a former Hong Kong-listed company and currently a wholly owned subsidiary of New World Development. History The company was incorporated as Victoria Park ...
.
Rosewood Hotel Group Rosewood Hotel Group, also known for its former trading names New World Hotel Group, New World Hospitality and legal names New World Hotel Management (BVI) Limited, New World Hotel Management Limited is a Hong Kong-based multi-national hotel ma ...
, an hotel management company, is a former subsidiary of NWD group. New World Development and sister listed company
Chow Tai Fook Jewellery Group Chow Tai Fook group is a Hong Kong–based, privately-owned conglomerate with holdings in the jewellery, property development, hotel, department store, transportation, energy, telecommunications, port, casino, and other businesses. Despite th ...
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 Land Bank of the Philippines (LBP; often referred to simply as LandBank), is a Government-owned and controlled corporation, government-owned bank in the Philippines with a special focus on serving the needs of farmers and fisherman, fishermen. ...
. 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 A residential area is a land used in which housing predominates, as opposed to industrial and commercial areas. Housing may vary significantly between, and through, residential areas. These include single-family housing, multi-family residen ...
. The group had a total of approximately 18.3 million sq ft of attributable
agricultural land Agricultural land is typically land ''devoted to'' agriculture, the systematic and controlled use of other organism, forms of lifeparticularly the rearing of livestock and production of cropsto produce food for humans. It is generally synonymous ...
reserve pending for conversion.


Governance

* ''Chairman:''
Henry Cheng Henry Cheng Kar-shun, GBM, GBS ( Chinese: 鄭家純; born 11 December 1946) is a Hong Kong billionaire property developer. Cheng is the elder son of Cheng Yu-tung who founded Hong Kong-listed New World Development of which Henry succeeded ...
(since 2012) * ''Chief Executive:''
Adrian Cheng Adrian Cheng Chi-kong (, born 1979) is a Hong Kong entrepreneur and business executive. He is the CEO and executive vice-chairman of the Hong Kong-listed New World Development, and executive director of jewelry company Chow Tai Fook. He is also t ...
(since 2017)


Former Chairmen

# Ho Sin-hang (1970–1982) #
Cheng Yu-tung Cheng Yu-tung GBM (; 8 August 1925 – 29 September 2016) was a Hong Kong billionaire with extensive property investment, development and service businesses, hotels, infrastructure, jewellery retailing and transportation interests in Hong Kong, ...
(1982–2012)


Former Chief Executives

''This position was formerly known as Managing Director (until 2012) and General Manager (until 2020)'' #
Cheng Yu-tung Cheng Yu-tung GBM (; 8 August 1925 – 29 September 2016) was a Hong Kong billionaire with extensive property investment, development and service businesses, hotels, infrastructure, jewellery retailing and transportation interests in Hong Kong, ...
(1970–1989) #
Henry Cheng Henry Cheng Kar-shun, GBM, GBS ( Chinese: 鄭家純; born 11 December 1946) is a Hong Kong billionaire property developer. Cheng is the elder son of Cheng Yu-tung who founded Hong Kong-listed New World Development of which Henry succeeded ...
(1989–2012) #
Adrian Cheng Adrian Cheng Chi-kong (, born 1979) is a Hong Kong entrepreneur and business executive. He is the CEO and executive vice-chairman of the Hong Kong-listed New World Development, and executive director of jewelry company Chow Tai Fook. He is also t ...
and Chen Guanzhan (2012–2017)


Controversies


Hung Hom Peninsula

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 Sun Hung Kai Properties Limited (SHKP; ) is a listed corporation and the largest property developer in Hong Kong as of 2019. The company is controlled by the Kwok family trust, largely the Kwok brothers. The Kwok family trust was set up by Kw ...
. 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.


Leung Chin-man

In 2008, New World was the subject of controversy when it announced it had hired former
Permanent Secretary for Housing, Planning and Lands Permanent may refer to: Art and entertainment * ''Permanent'' (film), a 2017 American film * ''Permanent'' (Joy Division album) * "Permanent" (song), by David Cook Other uses *Permanent (mathematics), a concept in linear algebra *Permanent (cycl ...
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 The Secretary for the Civil Service is the head of the Civil Service Bureau in Hong Kong. Unlike other secretaries for bureaux, the Secretary for the Civil Service is filled by an administrative officer from the civil service, who may choose to ...
Denise Yue Chung-yee Denise Yue Chung-yee () GBS JP (born 1952) was a Hong Kong politician and Secretary for the Civil Service. Yue graduated from the University of Hong Kong in 1974 and she attended Harvard University in 1988 obtaining an MPA during her civil se ...
, signed off on the approval for him to take up the job within three years of leaving, failing to take into account the appearance of conflict of interest resulting from the Hung Hom Peninsula affair. 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.


Avenue of Stars

The company has managed the Avenue of Stars for 11 years, 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. 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. The walkway, very popular with tourists, was closed off for three years while the expansion was undertaken. 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. 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. 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.


See also

*
New World Centre The New World Centre () was a retail-hotel-residential-office complex on Salisbury Road, Tsim Sha Tsui, Kowloon, Hong Kong. It housed two hotels (InterContinental Hong Kong, now closed for renovation in order to rebrand as Regent Hong Kong in 20 ...
*
New World First Bus New World First Bus Services Limited (NWFB) is the third-largest bus operator in Hong Kong. Established by NWS Holdings and FirstGroup in September 1998, it took over 88 China Motor Bus services in Hong Kong Island. Since 2020 it has been a s ...
*
New World First Ferry Sun Ferry Services Company Limited, formerly New World First Ferry Services (in short New World First Ferry, First Ferry or NWFF), is a ferry service company in Hong Kong. The company was established in November 1999, when it took over the eig ...
*
Citybus (Hong Kong) Citybus Limited () is a bus A bus (contracted from omnibus, with variants multibus, motorbus, autobus, etc.) is a road vehicle that carries significantly more passengers than an average car or van. It is most commonly used in public tr ...
*
New World Telecommunications New World Telecommunications Limited (abb. NWT) also known as New World Telecom, was a fixed line provider of Hong Kong S.A.R., China. It was a subsidiary of New World Development, via New World Telephone Holdings; New World Telecommunications w ...
*
K11 (Hong Kong) K11 Art Mall is a seven-storey shopping centre in Tsim Sha Tsui, Hong Kong located in The Masterpiece, developed by New World Development and completed in December 2009. It is near Tsim Sha Tsui and East Tsim Sha Tsui stations. Layout The K1 ...
*
List of companies in Hong Kong Hong Kong is an autonomous territory of the People's Republic of China on the Pearl River Delta of East Asia. Hong Kong is one of the world's most significant financial centres, with the highest Financial Development Index score and consisten ...


References


External links

* * {{Hang Seng Conglomerate companies of Hong Kong Land developers of Hong Kong Conglomerate companies established in 1970 1970 establishments in Hong Kong Companies listed on the Hong Kong Stock Exchange Companies in the Hang Seng Index Family-owned companies of Hong Kong