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 was formerly a constituent stock of Hong Kong Hang Seng Index.[1]
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
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
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]
Organization
The head office is in the New World Tower (Hong Kong) 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
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:
These elements collectively aim to foster a culture that values human creativity, sustainability, and social responsibility.[31]
- Imagination
- Bespoke
- Craftsmanship
- Heritage
- Contemporary[32]
Core business
Senior leadership
- Chairman: Henry Cheng (since March 2012)[49]
- Chief Executive: Echo Huang (since November 2024)
Former chairmen
- 1) Ho Sin-hang (1970–1982)
- 2) Cheng Yu-tung (1982–2012)
Former chief executives
This position was formerly known as Managing Director (until 2012) and General Manager (until 2020)
- 1) Cheng Yu-tung (1970–1989)
Membership and loyalty program
New World CLUB
Source:[50]
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.
K Dollar Program
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] The program features over 1,000 merchants throughout Hong Kong, including locations within
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. 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
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]
See also
- New World Centre
- New World First Bus
- New World First Ferry
- Citybus (Hong Kong)
- New World Telecommunications
- K11 (Hong Kong)
- List of companies in Hong Kong
External links
References
- Corporate www.nwd.com.hk, retrieved 8 October 2015^
- New World Development Forbes, retrieved 2024-09-02^
- New World Development Company Legal500, retrieved 2024-09-02^