- Sun Hung Kai Properties
Infobox Company
company_name = Sun Hung Kai Properties Ltd.
新鴻基地產
company_
company_type = Public
foundation = 1969
founder =Kwok Tak Seng ,Fung King Hey ,Lee Shau Kee
location = 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 ,Hotel s,
Telecoms,Utilities
revenue =HKD 25,598 million (2006)
operating_income =HKD 12,374 mil"l"ion (2006)
net_income =
num_employees = 27,000
parent = n/a
subsid =SmarTone-Vodafone (55.12%), SUNeVision Holdings (84.8%), Transport International (33.3%)
homepage = [http://www.shkp.com.hk www.shkp.com.hk]Sun Hung Kai Properties Ltd. (SHKP; zh-c|新鴻基地產) (sehk|0016) is a listed
corporation based inHong 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. [cite web
title = Annual Report 2006 | date = 2007 | publisher = Sun Hung Kai Properties
url=http://www.shkp.com.hk/data/investors/reports_detail/7/7/7_167_en.pdf
accessdate = 2007-04-10 ]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 .Fact|date=April 2007 The company was founded in1969 by the elder Kwok, together with Fung King-hei and Lee Shau Kee, and was listed on theHong Kong Stock Exchange in 1972.cite web
title = Corporate profile | publisher = Sun Hung Kai & Co. Limited
url=http://www.shkp.com/en/scripts/about/about_profile.php
accessdate = 2008-03-01 ]Operations
Property
The company's main operation is in the investment of properties, through its flagship, Sun Hung Kai Properties (sehk|0016, listed in 1972). [cite web
title = Milestones 1972 - 1980 | publisher = Sun Hung Kai Properties
url=http://www.shkp.com.hk/en/scripts/about/about_milestones1.php
accessdate = 2007-04-10 ] Sun Hung Kai Properties ("SHKP") is now one of the largest property companies in Asiacite web
title = History | publisher = Sun Hung Kai & Co. Limited
url=http://www.shkco.com/en/corporate_profile/history.html
accessdate = 2007-07-08 ] , and the largest real-estate developer in Hong Kong by market capitalisation. It specializes in residential and commercial projects for sale andinvestment . It employs 27,000 people. [cite web
title = Corporate Profiles | date = 2007 | publisher = Sun Hung Kai Properties
url=http://www.shkp.com/en/scripts/about/about_profile.php
accessdate = 2007-07-09 ]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.cite web
title = Annual Report 2006 | date = 2007 | publisher = Sun Hung Kai Properties
url=http://www.shkp.com.hk/data/investors/reports_detail/7/7/7_167_en.pdf
accessdate = 2007-04-10 ]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 . TheMTR Corporation was a partner in the venture.cite news
last = Bloomberg
title = Tenanting tallest tower looks likely to be a tall order
date = June 18, 2003
publisher = Hong Kong Standard
url = http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=21885&sid=&con_type=1&d_str=20030618&sear_year=2003
accessdate = 2007-03-23 ] Sun Hung Kai, owns 47.5 per cent of the development,Henderson Land Development , whose chairmanLee Shau Kee sits on the SHKP board, took a 32.5 per cent stake in the project. SHK is also building theInternational Commerce Centre , the tallest building in Hong Kong upon its completion.Other operations
The company also has other operations through its many sub-companies.
* Property development and management - Central Associated Investments Limited
*Mortgage deals
*Insurance brokerage andconsulting
*Telecommunications - Smartone-VodafoneControversies
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.cite news
last = Lau | first = Eli
title = Flats frenzy puts system in spotlight
date = May 19, 2005 | publisher = Hong Kong Standard
url=http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=8143&sid=&con_type=1&d_str=20050519&sear_year=2005
accessdate = 2007-04-10 ] 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 inWest 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.cite news
last = Wang | first = Raymond
title = Speculators may blow new bubble
date = May 20, 2005 | publisher = Hong Kong Standard
url=http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=8252&sid=&con_type=1&d_str=20050520&sear_year=2005
accessdate = 2007-04-10 ]ibling fallout
"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. [ [http://www.shkp.com/en/scripts/news/news_press_archive.php# Press Release:Leave of absence of Chairman and Chief Executive] Sun Hung Kai Properties, 18 February 2008]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.Staff reporter, [http://www.thestandard.com.hk/news_detail.asp?pp_cat=12&art_id=61757&sid=17662506&con_type=3&d_str=20080219&sear_year=2008 "Lover feud splits Kwok brothers"] , "The Standard", February 19, 2008]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. [ [http://www.mingpaonews.com/20080220/gba1.htm "Walter will return, says SHK" (新地﹕郭炳湘將重返公司"] , Ming Pao, 20 February 2008] [Staff reporter, [http://www.thestandard.com.hk/news_detail.asp?pp_cat=12&art_id=61833&sid=17678425&con_type=1&d_str=20080220&sear_year=2008 "My ex-wife fell for a Kwok"] , "The Standard", February 20, 2008]
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.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.Benjamin Scent, Katherine Ng & Stephanie Tong, [http://www.thestandard.com.hk/news_detail.asp?pp_cat=30&art_id=65925&sid=18957338&con_type=3&d_str=20080516&sear_year=2008 "Sensational accusations fly as SHKP chairman takes his fight to court"] , "The Standard", May 16, 2008] 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.Benjamin Scent, [http://www.thestandard.com.hk/news_detail.asp?pp_cat=30&art_id=65926&sid=18957609&con_type=1&d_str=20080516&sear_year=2008 "Fallout over Chan appointment"] , "The Standard", May 16, 2008] Katherine Ng, [http://www.thestandard.com.hk/news_detail.asp?pp_cat=1&art_id=66135&sid=19013544&con_type=1&d_str=20080521&sear_year=2008 "ICC rents caught in Kwok feud"] , "The Standard", May 21, 2008]
Awards
2006
* "Grand Prix" for "Best Overall Investor Relations at a Hong Kong Company - Large Cap" - IR Magazine [ [http://irmagazinehongkong.com/site/2436/default.aspx http://irmagazinehongkong.com/site/2436/default.aspx] ]
* "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 magazine2005
* "Best Company in Hong Kong" - Euromoney magazine.
* "No.1 Property Developer in both Asia and Hong Kong" - Euromoney magazine [ [http://www.euromoney.com/article.asp?PositionID=search&ArticleID=1000474 http://www.euromoney.com/article.asp?PositionID=search&ArticleID=1000474] ]
* "Gold medal" for "Best overall 2003/04 annual report" in the "Real Estate Development / Service" and "Printing & Publishing" categories, Properties International ARC Awards [ [http://www.mercommawards.com/ARC%20pages/Winner%20pages/2005/overall.htm http://www.mercommawards.com/ARC%20pages/Winner%20pages/2005/overall.htm] ]
* "Asia's Best Property Company" - FinanceAsia magazine2004
* 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. [ [http://www.mercommawards.com/ARC%20pages/Winner%20pages/2004/overall.htm http://www.mercommawards.com/ARC%20pages/Winner%20pages/2004/overall.htm] ]2003
* "Best Property Company in Asia" - Euromoney magazine [ [http://www.euromoney.com/article.asp?PositionID=search&ArticleID=1002039 http://www.euromoney.com/article.asp?PositionID=search&ArticleID=1002039] ]
* "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.References
External links
* [http://www.shkco.com Sun Hung Kai & Company Limited] (Sun Hung Kai & Company has nothing to do with SHK Properties nor the Kwok's family!!)
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