Dear Shareholder,

Before reporting on KWIH’s 2024 results, I would like first to acknowledge the passing of our founder, Dr. Lui Che-woo, in November 2024. As KWIH’s founding Chairman, under his leadership of 38 years, the Group has adhered to a steadfast commitment to quality, innovation and pragmatism in property development and has since grown into an integrated property developer and investor with a foothold in Hong Kong, the Yangtze River Delta, and the Pearl River Delta regions. I would like to express my heartfelt gratitude to Dr. Lui for his continuous support and guidance. I will continue to work closely with the Board and all of our team members to carry forward his vision and contribute to the development of the country.

With its sound business strategy and flexible market response capabilities, KWIH maintained steady development and continued to lay a solid foundation for future growth. Adhering to the principles of “impeccable quality” and “K. Wah Plus”, the Group’s premium residential projects in Hong Kong and the Mainland continued to be well-received by the market, with sales launched in a steady manner. For the financial year ended 31 December 2024, the Group recorded attributable contracted sales of approximately HK$6.9 billion and attributable revenue of approximately HK$8.4 billion. Profit attributable to equity holders amounted to approximately HK$340 million, with underlying profit reaching approximately HK$360 million. The Board remains confident in the long-term development prospects of the Group and has recommended a final dividend of 5 HK cents per share for the year ended 31 December 2024. Together with the interim dividend of 4 HK cents per share, the dividend for the full year amounted to 9 HK cents per share, reflecting our commitment to rewarding shareholders for their continued support.

In 2024, the global economic environment was impacted by the geopolitical situation and market volatility. In response, the Central Government implemented a series of macroeconomic policies to stabilise the property market, while the Hong Kong Government introduced measures such as easing mortgage regulations and lowering interest rates, creating favourable conditions for market recovery. The Group proactively responded to relevant policy changes in the Mainland and Hong Kong, prudently adjusted its sales strategy, and launched premium residential projects at opportune times. 

In Hong Kong, the Group sold the remaining four special units of K. Summit in Kai Tak, and over 230 units of Grand Victoria, the joint-venture harbourfront project in South West Kowloon, during the year under review. Stable sales of Villa Garda III in Tseung Kwan O and KT Marina Phase I were recorded. In addition, several solely-owned and joint-venture projects will be launched in line with market conditions, including solely-owned projects on King’s Road in Tin Hau and Hospital Road in Mid-Levels West, as well as the joint-venture project on Po Shan Road. In the Mainland, all 440 units of Avenir in Shanghai were sold during the year under review, while over 95% of the launched units of Sierra in Nanjing were sold and delivered within the year, reflecting satisfactory progress. Besides, investment properties also recorded satisfactory occupancy rates. The Group will continue to focus on Hong Kong and Tier 1 and Tier 2 cities in the Mainland, targeting upgraders, while closely monitoring market changes as it makes plans to launch further premium projects.

During the year under review, KWIH continued to acquire quality land parcels under its prudent land-bidding strategy. The Group acquired a project on King’s Road in Tin Hau, Hong Kong Island, as a sole proprietorship, with plans to redevelop the site for residential use. The Group currently holds a landbank of approximately 1.4 million square metres of attributable gross floor area in Hong Kong and the Mainland, providing a solid foundation for the development of premium projects in the future.

KWIH has maintained a solid financial position. During the year under review, the Group proactively implemented various debt reduction measures and achieved significant results. With a healthy balance sheet and sufficient funds, the Group remains well-positioned to prudently respond to market changes and capture investment opportunities in a timely manner.

Outlook

Looking ahead to 2025, the global economic situation will continue to be affected by geopolitical risks and market volatility. The Group maintains a cautiously optimistic outlook on the medium- to long-term development of the property markets in Hong Kong and the Mainland. It will continue to maintain a stable cash flow and financial position while leveraging its extensive experience to develop unique, premium properties through flexible development strategies.

On behalf of the Board, I would like to take this opportunity to express my gratitude to all our staff for their tireless efforts and unwavering dedication. Despite challenges in the global and regional macro environment, they have remained committed to their roles, contributing significantly to the Group. I look forward to their continued collaboration with the Group to seize future development opportunities and realise our vision for long-term, sustainable business growth.

Francis Lui

Chairman

27 March 2025