Sun Hung Kai
From Wikipedia, the free encyclopedia
| Sun Hung Kai Properties Ltd. 新鴻基地產 |
|
|---|---|
 |
|
| Type | Public |
| Founded | 1969 |
| Founder | Kwok Tak Seng, Fung King Hey, Lee Shau Kee |
| Headquarters | Sun Hung Kai Centre, 30 Harbour Road, Wanchai, Hong Kong, PRC |
| Key people | Kwong Siu Hing, Chairman Thomas Kwok, Raymond Kwok, Vice Chairman |
| Industry | Property |
| Products | Real estate, Investment, Hotels, Telecoms, Utilities |
| Revenue | HKD 25,598 million (2006) |
| Operating income | HKD 12,374 million (2006) |
| Employees | 27,000 |
| Parent | n/a |
| Subsidiaries | SmarTone-Vodafone (55.12%), SUNeVision Holdings (84.8%), Transport International (33.3%) |
| Website | www.shkp.com.hk |
Sun Hung Kai Properties Ltd. (Chinese: 新鴻基地產) (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. The family speaks for 43.4% of the equity as at June 30, 2006.[1]
Contents |
[edit] History
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.[citation needed] The company was founded in 1969 by the elder Kwok, together with Fung King-hei and Lee Shau Kee, and was listed on the Hong Kong Stock Exchange in 1972.[2]
[edit] Operations
[edit] Property
The company's main operation is in the investment of properties, through its flagship, Sun Hung Kai Properties (SEHK: 0016, listed in 1972).[3] Sun Hung Kai Properties ("SHKP") is now one of the largest property companies in Asia[2], and the largest real-estate developer in Hong Kong by market capitalisation. It specializes in residential and commercial projects for sale and investment. It employs 27,000 people.[4]
SHKP turned over HK$ 25.6 billion in 2006, with an operating profit of HK$ 12.3 billion. The majority (65%) of its revenues and operating profit (88%) was derived from property sales and rental.[5]
[edit] Projects
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 tallest building, the International Finance Centre. The MTR Corporation was a partner in the venture.[6] Sun Hung Kai, owns 47.5 per cent of the development, Henderson Land Development, whose chairman Lee Shau Kee sits on the SHKP board,[5] took a 32.5 per cent stake in the project. SHK is also building the International Commerce Centre, the tallest building in Hong Kong upon its completion.
[edit] Other operations
The company also has other operations through its many sub-companies.
- Financial Services - Sun Hung Kai Finance Co. Limited
- Property development and management - Wah Cheong Development Co. Limited and Central Associated Investments Limited, Tian An Development Company Limited
- Mortgage deals
- Insurance brokerage and consulting - Sun Hung Kai Insurance Co. Ltd, Lippo Capital Limited
- Securities - Sun Hung Kai Securities Limited, Hong Kong and Kowloon Commercial Limited, SHK China Fund
- Commodities Trading - Sun Hung Kai-ACLI Commodities Limited
- Greater China operations - Sun Hung Kai (China) Limited
- Shun Loong Holdings Limited
- Telecommunications - Smartone-Vodafone
[edit] Controversies
[edit] Lack of transparency of internal sales
In 2005, the developer was criticised for the lack of transparency in its public sale of residential properties to speculators and end-users.[7] The company was accused of the practice of "internal sales" of uncompleted units, the absence of sale price-lists, and also for hyping sales for flats in its The Arch development in West Kowloon by announcing inflated prices (per square metre) achieved. A buyer apparently paid HK$168 million, or HK$31,300 per square foot, for a 5,360 square foot penthouse. Sweeteners were allegedly given (discounts given to the same purchaser on other units bought), but were excluded from the calculation. This allowed SHK to raise prices of the next batch of 500 units by 5-10 percent. But SHKP has denied the allegations.[7]
[edit] Sibling fallout
[edit] "Temporary" leave of Walter Kwok
On 18 February 2008, SHK 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.[8]
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.[9]
SHK'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.[10][11]
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.
[edit] Escalation
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.[12] 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.[13][14]
[edit] Awards
[edit] 2006
- Grand Prix for "Best Overall Investor Relations at a Hong Kong Company - Large Cap" - IR Magazine[15]
- "Best Company for Corporate Governance - Asia and Hong Kong" - Asiamoney magazine
- "Best Property Company, Most Accessible Senior Management and Most Useful, Informative Web Site in Asia"; "Best Company, Most Convincing, Coherent Strategy and Most Transparent Accounts in Hong Kong" - Euromoney magazine
- Ranked "No.1 Property Developer" in both Asia and Hong Kong - Real Estate Awards, Euromoney magazine
- "Best Corporate Governance Award", 2006 - Corporate Governance Asia magazine.
- "Asia's Best Property Company" - FinanceAsia magazine
[edit] 2005
- "Best Company in Hong Kong" - Euromoney magazine.
- "No.1 Property Developer in both Asia and Hong Kong" - Euromoney magazine[16]
- Gold medal for "Best overall 2003/04 annual report" in the "Real Estate Development / Service" and "Printing & Publishing" categories, Properties International ARC Awards[17]
- "Asia's Best Property Company" - FinanceAsia magazine
[edit] 2004
- Dubbed "Hong Kong's Best Managed Company since 1991" - Asiamoney magazine.
- "Hong Kong's Best Managed Property Company" - Euromoney magazine.
- "Best Managed Company" in both Asia and Hong Kong, and "Hong Kong's No.1 for Corporate Governance" - Asiamoney magazine.
- "Best IR by a Hong Kong Company" - IR Magazine.
- "Asia's Best Property Company"; "Best Hong Kong Company for Corporate Governance in the FA100 index" - FinanceAsia.
- Gold medal for "Best overall 2002/03 Annual Report", residential properties category, International ARC Awards.[18]
[edit] 2003
- "Best Property Company in Asia" - Euromoney magazine[19]
- "Hong Kong's Best Property Developer for corporate governance" - Euromoney magazine.
- "Asia's Best Property Company" - FinanceAsia magazine.
- "Best among Hong Kong property companies (2001/02 annual report)" - CFO Asia magazine.
[edit] References
- ^ Annual Report 2006. Sun Hung Kai Properties (2007). Retrieved on 2007-04-10.
- ^ a b Corporate profile. Sun Hung Kai & Co. Limited. Retrieved on 2008-03-01.
- ^ Milestones 1972 - 1980. Sun Hung Kai Properties. Retrieved on 2007-04-10.
- ^ Corporate Profiles. Sun Hung Kai Properties (2007). Retrieved on 2007-07-09.
- ^ a b Annual Report 2006. Sun Hung Kai Properties (2007). Retrieved on 2007-04-10.
- ^ Bloomberg. "Tenanting tallest tower looks likely to be a tall order", Hong Kong Standard, June 18, 2003. Retrieved on 2007-03-23.
- ^ a b Lau, Eli. "Flats frenzy puts system in spotlight", Hong Kong Standard, May 19, 2005. Retrieved on 2007-04-10.
- ^ 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, February 19, 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, February 20, 2008
- ^ Benjamin Scent, Katherine Ng & Stephanie Tong, "Sensational accusations fly as SHKP chairman takes his fight to court", The Standard, May 16, 2008
- ^ Benjamin Scent, "Fallout over Chan appointment", The Standard, May 16, 2008
- ^ Katherine Ng, "ICC rents caught in Kwok feud", The Standard, May 21, 2008
- ^ http://irmagazinehongkong.com/site/2436/default.aspx
- ^ http://www.euromoney.com/article.asp?PositionID=search&ArticleID=1000474
- ^ http://www.mercommawards.com/ARC%20pages/Winner%20pages/2005/overall.htm
- ^ http://www.mercommawards.com/ARC%20pages/Winner%20pages/2004/overall.htm
- ^ http://www.euromoney.com/article.asp?PositionID=search&ArticleID=1002039
[edit] External links
- Sun Hung Kai Properties
- Sun Hung Kai & Company Limited (Sun Hung Kai & Company has nothing to do with SHK Properties nor the Kwok's family!!)
|
|||||
