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3. Client: Client:
Stamford Land Corporation Ltd SIng Holdings Pte Ltd
Work Done: Work Done:
Annual Report Annual Report
grandeur
defining
ANNUAL REPORT 2007/08
Defining
2 Stamford Land Corporation Ltd
ANNUAL REPORT 2007/08
ANNUAL REPORT 2007/08
elegance
Chairman’s Message
Stamford Plaza Adelaide
lifestyle
Stamford Plaza Melbourne
Stamford Grand North Ryde
Defining
Stamford Plaza Brisbane 200 Cantonment Road #09-01
Southpoint, Singapore 089763
Tel: (65) 6236-6888 Fax: (65) 6236-6250
www.stamfordland.com
Contents
Chairman’s Message 2
Company Registration No.: 197701615H
Board of Directors 8 Stamford Land Corporation achieved creditable results Our other major property developments are still under
Corporate Information 10 with net profits rising by 28.7% to $42.9 million from construction and revenue from pre-sold apartments are
Corporate Structure 11 $33.4 million in the previous financial year. This is not recognised under Australia’s accounting regulations.
Five-Year Group Financial Summary 12 due mainly to the enhanced performance of our hotel
Operations Review 14 segment that saw higher occupancy and room rates. In view of our good performance, the Board is
Hotel Portfolio 20 Revenue per available room for the Group’s eight hotels recommending a tax-exempt one-tier Final Dividend and
Shareholder Calendar 24 posted a healthy 6.7% increase. Special Dividend of 1.5 cents per share and 1.0 cent per
Corporate Governance Statement 25 share respectively, with total payout amounting to about
A strong Australian economy and the continued boom $21.6 million. This is on top of the Interim Dividend of
cover
Property Portfolio of the Stamford Land Group 36
in the resources sector boosted demand for hotel 1.5 cents per share that was paid out in March this year.
Financial Statements accommodation. Riding on this positive trend, our
Directors’ Report 40 hotel segment’s operating profits rose significantly THRIVING HOTEL BUSINESS
Directors’ Statement 43 by 41.5% to $46.8 million and revenue increased by
Auditors’ Report 44 StamfordCover_FA.indd 1
17% to $232.2 million. Our successful hotel business accounts for 93.4% of 7/2/08 6:08:58 PM
Consolidated Income Statement 46 Group operating profits. We are the largest independent
Balance Sheets 47 Group revenue, however, saw a 7.3% decrease from $298.0 owner and operator of luxury hotels in Australasia and
Statements of Changes in Equity 49 million to $276.1 million due to significantly reduced take great pride in the Stamford brand’s hallmark of
Consolidated Cash Flow Statement 51 contributions from our property segment whereby the excellence. All our eight hotels offer superior locations
Notes to Financial Statements 53 sale of a few remaining apartments in Stamford Marque in gateway cities, first-class facilities and outstanding
Shareholdings Statistics 101 were recognised as it was mostly sold out in FY2006/07. service.
Notice of Annual General Meeting and Books Closure 103
Defining
Defining
Proxy
The Stamford Residences,
The Stamford Residences,
Stamford Plaza Auckland
Stamford Plaza Auckland
Artist’s Impression Impression
Artist’s
StamfordExtent_FA copy.indd 1 7/2/08 6:10:20 PM StamfordExtent_FA copy.indd 2 7/2/08 6:11:05 PM
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elegance
elegance
20 Stamford Land Corporation Ltd
ANNUAL REPORT 2007/08
Stamford Land Corporation Ltd
ANNUAL REPORT 2007/08 21
Hotel Portfolio
Stamford Plaza Auckland
Stamford Plaza Auckland
Circular
SIR STAMFORD AT
Quay
Auckland Adelaide
STAMFORD PLAZA STAMFORD GRAND
93 Macquarie Street, Sydney,
New South Wales 2000
Brisbane
STAMFORD PLAZA Phone : (61 2) 9252 4600
Melbourne
STAMFORD PLAZA Facsimile : (61 2) 9252 4286
Lower Albert Street, Auckland, Email : reservations@sscq. 2 Jetty Road, Glenelg, South
stamford.com.au Australia 5045
Adelaide
New Zealand
STAMFORD PLAZA Phone : (61 8) 8376 1222
Phone : (64 9) 309 8888
Facsimile : (64 9) 379 6445 Facsimile : (61 8) 8376 1111
Corner Edward & Margaret
Email : reservations@spak. Email : reservations@sga.
Streets, Brisbane,
stamford.com.au 111 Little Collins Street, stamford.com.au
Queensland 4000
Melbourne Victoria 3000
Phone : (61 7) 3221 1999
Phone : (61 3) 9659 1000
150, North Terrace, Adelaide, Facsimile : (61 7) 3221 6895
Facsimile : (61 3) 9659 0999
South Australia 5000 Email : reservations@spb.
Email : reservations@spm.
Phone : (61 8) 8461 1111 stamford.com.au
stamford.com.au
Facsimile : (61 8) 8231 7572 Brisbane
Email : reservations@spa.
stamford.com.au
Perth
Adelaide Sydney
The Stamford MarqueMarque Sydney
The Stamford Sydney
Melbourne
Legend:
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7/2/08 6:09:17 PM
Hotel
Auckland
Property development
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cover
4. Client: Client:
Rotary Engineering Limited Asia Enterprises Holding Ltd
Work Scope: Work Done:
Annual Report Annual Report
inside spread
cover
cover
inside spread cover
6. Corporate Information as at 8 April 2008
The Bridge, Clerkenwell Road
BOARD OF DIRECTORS AUDIT AND RISK COMMITTEE AUDITORS
Hans Hugh Miller Ma Kah Woh, Paul Ernst & Young
Client:
Non-Executive Chairman Chairman Certified Public Accountants
Ong Choo Eng Goh Kian Hwee One Raffles Quay
Group Managing Director
Wee Sin Tho North Tower, Level 18
Ong Mui Eng (with effect from 27 April 2007)
Singapore 048583
Ong Hian Eng
Partner In-Charge: Mak Keat Meng
Guan Meng Kuan NOMINATING COMMITTEE (with effect from financial year ended
Hwa Hong Holdings Ltd
Goh Kian Hwee 31 December 2005)
Wee Sin Tho
Ma Kah Woh, Paul Chairman
Guan Meng Kuan MANAGEMENT
Wee Sin Tho
Hans Hugh Miller Ong Choo Eng
Ong Eng Loke Group Managing Director
Alternate Director to Ong Mui Eng (with effect from 27 April 2007)
Hwa Hong Corporation Limited
Goh Kian Hwee
(with effect from 27 April 2007)
Ong Mui Eng
PRINCIPAL SUBSIDIARIES Executive Director
Hwa Hong Corporation Limited
Singapore Warehouse Company
(Private) Ltd. REMUNERATION COMMITTEE Ong Hian Eng
Hans Hugh Miller Executive Director
400 Orchard Road
Chairman Hwa Hong Corporation Limited
#11-09/10 Orchard Towers
Goh Kian Hwee Chen Chee Kiew (Mrs)
Work Done:
Table of Contents Singapore 238875
Guan Meng Kuan
General Manager
tel: 6734 8355 Singapore Warehouse Company (Private) Ltd.
Wee Sin Tho
fax: 6733 4288 Tan Yian Hua, Stella
2 Corporate Information (with effect from 27 April 2007)
Principal Officer / Chief Executive Officer
email: property@hwahongcorp.com Tenet Insurance Company Ltd
3 Financial Calendar
4 Chairman’s Letter to Shareholders DIVESTMENT AND INVESTMENT Ong Eng Hock Simon
Tenet Insurance Company Ltd COMMITTEE Chief Financial Officer
8 Five Year Group Financial Profile
Annual Rerport
11 Collyer Quay (newly formed in 2007) Hwa Hong Corporation Limited
9 Board of Directors
#09-00 The Arcade Hans Hugh Miller Ong Eng Loke
11 Key Executives
Chairman Business Development Manager
13 Corporate Governance Report Singapore 049317
Ong Choo Eng Hwa Hong Edible Oil Industries Pte. Ltd.
22 Risk Management and tel: 6221 2211
Ma Kah Woh, Paul Guan Tut Chuan
Control Environment fax: 6221 3302 Business Development Manager
Wee Sin Tho (China Operations)
23 Directors’ Report email: mail@tenetinsurance.com
Hwa Hong Corporation Limited
26 Statement by Directors website: www.tenetinsurance.com
COMPANY SECRETARIES
27 Independent Auditors’ Report
Ong Bee Leem FINANCE AND ADMINISTRATION
29 Consolidated Profit and Paco Industries Pte. Ltd.
Hwa Hong Edible Oil Industries Lim Keng San Shirley 38 South Bridge Road #04-01
Loss Accounts
Pte. Ltd. (with effect from 21 February 2008) Singapore 058672
30 Balance Sheets
38 South Bridge Road #04-01 tel: 6538 5711
32 Consolidated Statement of
Singapore 058672 REGISTRAR/ fax: 6533 3028
Changes in Equity
SHARE REGISTRATION OFFICE
37 Consolidated Cash Flow Statement tel: 6538 5711 email: finance@hwahongcorp.com
Boardroom Corporate & Advisory
39 Notes to the Financial Statements fax: 6533 3028
Services Pte. Ltd.
100 Shareholding Statistics email: marketing@hwahongcorp.com CORPORATE AND LEGAL
3 Church Street
102 Notice of Annual General Meeting GROUP CORPORATE
#08-01 Samsung Hub SECRETARIAL SERVICES
Proxy Form REGISTERED OFFICE
Singapore 049483 38 South Bridge Road #01-01
38 South Bridge Road
tel: 6536 5355 Singapore 058672
Singapore 058672
fax: 6536 1360 tel: 6538 6818
website: www.hwahongcorp.com
fax: 6532 6816
email: secretariat@hwahongcorp.com
Annual Report
HWA HONG CORPORATION LIMITED ANNUAL REPORT 2007
1 2 HWA HONG CORPORATION LIMITED ANNUAL REPORT 2007
2007
Chairman’s Letter To Shareholders CHAIRMAN’S LETTER TO SHAREHOLDERS
Tenet performed well and reported strong underwriting In our manufacturing segment, a number of challenges
profits of approximately $2.8 million on the current emerged in 2007—particularly with respect to our
year’s business. At over 10% of premiums earned in 49.5% owned Norwest Holdings Pte Ltd (“Norwest”),
HWA HONG CORPORATION LIMITED
the year, this level of profitability is higher than average and its subsidiaries which are active in the Chinese
returns that we expect over the insurance cycle. In phosphate mining and processing business. A planned
addition to profits on 2007 insurance contracts, Tenet rights issue and placement of shares in Norwest to
reported earnings from prior years of $7.0 million as provide necessary working capital was not successful
loss payments in 2007 came in at lower values than and Norwest has been placed under liquidation.
the original actuarial estimates. Total insurance profits
– including both current and prior year impacts were Overall, financial performance of the Group was quite
down, however, as Tenet had reported over $10.8 positive. Including earnings from Rivergate, our return
million of income from favourable prior year loss reserve on equity was 26.7%, a record for Hwa Hong. Before
development in 2006 compared to $7.0 million in 2007. the profits from Rivergate and write-down in respect
We do not believe that favourable reserve development of our investment in Norwest, the ROE improved from
should be expected consistently year to year, and we 5.3% in 2006 to 6.5% to 2007.
focus our attention primarily on the profitability of our
current writings.
Model of 4 Storey office block at Scott Road West Midlands House
Dear Shareholders, completion basis and TOP is targeted for September
2008, further recognition of share of profits from
cover
2007 was an important year for your Company. In Rivergate is expected in 2008.
volatile economic times, each business continued
to execute its strategy and addressed a number of In addition to Rivergate, other real estate investments
challenges. of your company did well in 2007. Revenue from
rental income rose 35.6% from $4.5 million in 2006 to
Financial performance was strong. Significant capital $6.1 million in 2007. During 2007, the Group acquired
was returned to you via dividends. Your board several new investment properties in the United
focused on ongoing improvements in governance and Kingdom costing approximately $10.5 million, as well
risk management while moving to position the core as making an investment in Singapore at the Scotts
businesses for profitable growth. Spazio site in partnership with Dubai Investment
Group LLC and KOP Capital Pte Ltd. Hwa Hong
Profit after taxation rose by more than $82.8 million in continues to explore real estate investment on its
cover
2007, to $104.2 million, due primarily to earnings at the own as well as through established relationships with
Rivergate project. Construction at this site, which began business partners.
in 2005 in partnership with CapitaLand, is progressing
according to plan and was 54.4% complete at the Revenues at Tenet Insurance Company Ltd (“Tenet”) Tenet’s 50th Anniversary Celebration
end of 2007. As this venture is carried out through an grew well in the year, up over $5.4 million, or 21.3%,
associate, sales at Rivergate are not reflected in our to $30.8 million. Tenet’s strategy is to offer product
revenues, while income is reported directly as share innovation and high levels of service through a selected
of profits in associates in our Consolidated Profit and group of intermediaries and we believe this profitable
Loss Account. As profits are reported on a percentage growth is a demonstration of good execution of
the strategy.
4 5
cover
Annual Report 2007
HWA HONG CORPORATION LIMITED ANNUAL REPORT 2007 HWA HONG CORPORATION LIMITED ANNUAL REPORT 2007
CHAIRMAN’S LETTER TO SHAREHOLDERS Five Year Group Financial Profile
Share Price Performance
0.71
0.67
0.56 0.58
0.54
3,482.30
2,985.83
ONG CORPORATION LIMITED 1,764.52
2,066.14
2,347.34
uth Bridge Road Singapore 058672 31 / 12 / 2003 31 / 12 / 2004 30 / 12 / 2005 29 / 12 / 2006 31 / 12 / 2007
ebsite: www.hwahongcorp.com STI
Share price
Dividends per share
Financial Year Ended
pany Registration No. 195200130C From a governance perspective, your board focused 13.27¢
particularly on further refining risk management in 2007,
and took measures in any area that had been identified
inside spread
as having potentially significant impact on the financial
position of the Group.
The board established a new committee, the
Divestment and Investment Committee in mid 2007,
to focus on strategic matters and act in an advisory
capacity to management in terms of specific investment 1.60¢ 1.60¢ 2.22¢
1.58¢
opportunities.
31 / 12 / 2003 31 / 12 / 2004 31 / 12 / 2005 31 / 12 / 2006 31 / 12 / 2007
inside spread
Following the 2007 AGM, two long-standing directors,
Mr Chew Loy Kiat and Mr Boon Suan Lee, ceased
HWA HONG CORPORATION LIMITED to be directors. Both contributed considerable time
and effort to the Company for many years, and I Revenue ($’000)
would like to thank them for their contributions to
Financial Year Ended $88,865
top & bottom: 7 Water Street Liverpool Hwa Hong.
$75,910
Finally, the directors and I wish to thank our business $68,081
partners and our shareholders for their confidence,
and the staff of Hwa Hong for their dedication and $53,939
performance in 2007. $46,335
cover
Sincerely,
Hans Hugh Miller
Chairman
inside spread
31 / 12 / 2003 31 / 12 / 2004 31 / 12 / 2005 31 / 12 / 2006 31 / 12 / 2007
HWA HONG CORPORATION LIMITED ANNUAL REPORT 2007
7 8 HWA HONG CORPORATION LIMITED ANNUAL REPORT 2007
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