Founded in 1886, The Wharf (Holdings) Limited (Stock code: 4) is a premier company with HK$391.2 billion of consolidated assets and a strategic focus on property and infrastructure in Hong Kong and the Mainland. It is a subsidiary of Wheelock and Company Limited (Stock code: 20).
Backed by a long standing mission of ¡§Building for Tomorrow¡¨ and a distinguished track record, 2012 marked
a record year for Wharf. The Group¡¦s strong value creation ability and product leadership in new and existing
projects are evidenced by and culminated in a record financial performance in 2012 ¡X a return on Shareholder¡¦s
equity of 21% and an increase in core profit by 37% to HK$11 billion, nearly four times the value of the entire
Company in 1982. Following 2012¡¦s exceptional positive results, the Group continued delivering a solid financial performance recording a core profit of HK$5,683 million in the first half of 2013. Compared to the corresponding period in previous years, this represents a 5% increase from 2012 and a 56% from 2011 or 59% from the average for the past 5 years.
With prime real estate as the Group¡¦s primary strategic focus, site acquisition, financing, development planning,
design, construction and marketing are its core competencies. Mall development and retail management remain
its strategic differentiation.
Select investment properties form the backbone of Wharf¡¦s business model. The entire investment property
portfolio (including hotels) represented 56% of Wharf¡¦s core profit in the first half of 2013.
Landmark Harbour City and Times Square lead Wharf¡¦s prized portfolio of select investment properties. They
represented nearly 50% of Wharf¡¦s total business assets and accounted for nearly 10% of total Hong Kong retail sales
in the first half of 2013 with unique critical mass. They command a combined value of HK$178.8 billion, underpinned by a 20%
compound annual growth rate in retail sales in the past 10 years. Our leadership position in retail is further
maintained with the new lease for the Ocean Terminal lot.
Wharf¡¦s mission of Building for Tomorrow underlines the Group¡¦s asset expansion programme in recent years. The
new base includes a land bank of 11.9 million square metres across 15 cities, a fast emerging hotel business and
valuable port assets in China. The Mainland portfolio contributes to 25% of the Group¡¦s core profit in the first half of 2013.
Two International Finance Square (IFS) projects under development in Chengdu and Changsha lead Wharf¡¦s new
select investment properties and create substantial new value. Each is designed to be a prime property as large
as Harbour City and as dominant in their respective markets. Three other IFSs are also being built in Chongqing,
Wuxi and Suzhou. Rental revenue increased by 12% to HK$536 million in the first half of 2013 and it will
multiply upon the completion of the five IFSs by 2016.
China property is our second most important business with attributable property sales (excluding Greentown
China Holdings Limited (¡§Greentown¡¨)) in the first half of 2013 totaled RMB10.9 billion, which was 45% better than last year and represents 55% of the full year taget for 2013.
In mid-2012, the Group acquired 25% of equity stake in Greentown, a leading property developer in the Mainland,
for about HK$2.7 billion. This timely investment added synergy to Wharf¡¦s China development initiative and
increased our attributable development land bank in the Mainland by 50% to about 18 million square metres across more
than 40 cities.
The Group¡¦s Marco Polo Hotels operates 13 owned or managed hotels in Asia Pacific, principally in China. 10 new
hotels will come on stream over the next five years to significantly expand Marco Polo¡¦s network.
Also contributing to Wharf¡¦s presence in the Mainland are key port assets along the China coast, the most dynamic
coastline in the world for cargo movement in the coming decades.
¡§Building for Tomorrow¡¨ also extends to Wharf¡¦s corporate social responsibility (¡§CSR¡¨). An up to 1% of annual
core profit is earmarked to support the community backed by our enthusiastic staff volunteers through our
In 2012, besides ¡§Caring Company¡¨ logo, the Group¡¦s flagship Project WeCan was awarded the Outstanding
Partnership Project Award, a prestigious honour by the Hong Kong Council of Social Service to recognise the
partnership commitment and the collective efforts demonstrated in the Project to support the deserving students.
We are also named a constituent member of Hang Seng Sustainability Benchmark Index with an A-rating for the
Group¡¦s sound performance in CSR.