Shui On Land Limited: history, ownership, mission, how it works & makes money

A Brief History of Shui On Land Limited

Founded in 1981, Shui On Land Limited is one of the leading property developers in China, with a focus on large-scale urban development projects. The company has established its reputation through innovative urban planning, design, and construction practices. Listed on the Hong Kong Stock Exchange under the stock code 0272, Shui On Land has made significant contributions to the real estate sector in China.

In 2007, Shui On Land reported a revenue of approximately HKD 5.54 billion, marking a considerable milestone in its expansion strategy. By 2010, the company had completed several flagship developments, including the Shanghai Xintiandi, which measures around 180,000 square meters of retail and residential space.

In 2013, Shui On Land's total assets reached HKD 114.5 billion, showcasing the company's rapid growth and solidifying its position in the market. The same year, the company recorded a net profit of approximately HKD 2.3 billion, reflecting a growth of 27% compared to the previous year's net profit.

Shui On Land's portfolio diversified significantly with the launch of its commercial properties, which contributed to approximately 40% of its revenue by 2015. The company's total contracted sales in 2016 reached RMB 25.3 billion, which was a year-on-year increase of 12%.

As of 2021, Shui On Land reported a total revenue of RMB 29.92 billion, with a gross profit margin of 27.6%. The company’s total assets stood at RMB 142.9 billion, a significant achievement following its strategic land acquisitions and development projects in cities like Chongqing and Beijing.

The company also made headlines in 2022 by acquiring a prime land parcel in Shanghai for approximately RMB 5.1 billion, demonstrating its commitment to expanding its footprint in tier-one cities. In the first half of 2023, Shui On Land recorded a total revenue of RMB 16.5 billion, an increase of 15% year-on-year.

Shui On Land Limited continues to pursue growth through strategic land acquisitions and the development of mixed-use projects, targeting high-demand urban areas. The company's strong financial performance reflects its adaptability in the ever-evolving real estate landscape in China.

A Who Owns Shui On Land Limited

Shui On Land Limited is a prominent property developer based in China, primarily focused on the development and investment of residential, commercial, and mixed-use properties. The ownership structure of the company includes a mix of institutional investors, individual shareholders, and insiders.

As of the most recent filings, the majority ownership is held by Shui On Group, which is controlled by Vincent Lo. The company has a significant number of shares outstanding, totaling approximately 3.25 billion shares.

Below is the ownership breakdown as of the latest financial disclosures:

The company is listed on the Hong Kong Stock Exchange under the ticker symbol 0272.HK. As of October 2023, the share price was around HKD 3.50, giving the company a market capitalization of approximately HKD 11.38 billion.

Shui On Land's financial performance has demonstrated resilience, with total revenue for the financial year ending December 2022 reported at HKD 15.9 billion, and a net profit of HKD 2.5 billion. The company continues to pursue various property projects across key urban centers in China, reinforcing its market position.

Furthermore, the company’s dividend policy reflects its commitment to shareholders, with a dividend payout of HKD 0.08 per share declared for the year 2022.

Shui On Land Limited Mission Statement

Shui On Land Limited is a prominent property developer in China, primarily focused on urban development and real estate investment. The company’s mission statement emphasizes sustainable urbanization and enhancing the quality of life in cities.

The mission statement of Shui On Land is centered on delivering high-quality property developments that contribute to urban living standards while prioritizing sustainability and community culture. This aligns with their strategic objectives to grow their business through innovation and customer-centric approaches.

As of the end of 2022, Shui On Land reported a total revenue of approximately RMB 31.6 billion (around USD 4.8 billion), illustrating their significant role in the real estate market. The company’s net profit for the same period was approximately RMB 6.1 billion (USD 930 million), showcasing a robust profit margin.

Shui On Land is committed to developing properties that are not only profitable but also socially responsible. They aim to make a positive impact on the communities where they operate by providing affordable housing and fostering local economies. The company adopts a holistic approach in its projects, ensuring that environmental, social, and governance (ESG) factors are integrated into their business model.

In 2021, Shui On Land was awarded the Green Building Label for several of its developments, indicating their dedication to sustainable construction practices. Moreover, in the first half of 2023, the company launched multiple projects focusing on eco-friendly designs and energy-efficient technologies, which are expected to enhance their market position.

As of October 2023, Shui On Land's stock price was approximately HKD 5.25, reflecting a year-to-date increase of 20%. The company's market capitalization stood at around HKD 38 billion (USD 4.9 billion), demonstrating investor confidence in their strategic direction and operational performance.

The company continues to refine its mission by aligning its operations with the evolving demands of the real estate market, focusing on innovation in urban designs, and enhancing customer experiences through high-quality service and amenities. With a robust pipeline of projects, Shui On Land is poised to further solidify its presence in the competitive real estate landscape of China.

How Shui On Land Limited Works

Shui On Land Limited is a prominent property development and investment company based in Hong Kong, primarily focused on the development of large-scale commercial and residential properties in China. The company’s operational strategy revolves around its substantial land bank, project management expertise, and strategic partnerships within the real estate sector.

As of the end of 2022, Shui On Land reported a total revenue of **HKD 14.3 billion**, an increase from **HKD 11.9 billion** in 2021. This reflects a year-on-year growth of approximately **20.2%**. The gross profit margin was reported at **33%**, indicating efficient management of project costs.

The company’s land bank was valued at approximately **HKD 195 billion** as of December 2022, encompassing around **14.4 million square meters** of land across various cities, primarily in the Yangtze River Delta region. This extensive land portfolio provides Shui On Land with the capacity to develop diversified property projects, including residential, office, and mixed-use developments.

Shui On Land’s project pipeline includes several notable developments. Among these is the Chengdu International Finance Square, which has a total gross floor area of **500,000 square meters** and serves as a pivotal commercial hub in Sichuan Province. Additionally, their operations extend to the residential segments, with planned launches totaling approximately **2,500 residential units** in 2023 alone.

The financing strategy employed by Shui On Land is robust, characterized by a mix of debt and equity financing. The company reported a total bank and other borrowings amounting to **HKD 34 billion** as of the end of 2022, with a debt-to-equity ratio of **0.72**, indicating a manageable level of debt relative to its equity base.

Shui On Land is also strategically aligned with government initiatives to promote urban development and infrastructure improvement. This alignment has facilitated access to favorable land acquisition opportunities and long-term leases in rapidly growing urban areas.

In terms of market performance, the company's stock price increased by approximately **25%** over the last year, outperforming the Hang Seng Index, which saw a rise of around **10%** during the same period. The market capitalization of Shui On Land stands at roughly **HKD 45 billion**, reflecting strong investor confidence.

Ongoing projects are expected to further enhance the company's competitive edge, with anticipated contributions from both commercial and residential segments. Going forward, Shui On Land plans to focus on sustainable development practices, aiming for a significant reduction in carbon emissions by **30%** by 2025, aligning with industry trends towards environmental sustainability.

How Shui On Land Limited Makes Money

Shui On Land Limited is a prominent property developer in China, primarily generating revenue through residential and commercial property projects. The company operates mainly in tier-one and tier-two cities, leveraging the growing demand for real estate. As of 2022, Shui On Land reported total revenue of approximately HKD 19.5 billion, showcasing a substantial year-on-year growth.

Revenue Streams

• Residential Property Sales: This is the primary revenue source, contributing to over 70% of total sales. The company completed around 1.1 million square meters of residential projects in 2022.
• Commercial Property Development: Commercial assets, including office spaces and retail properties, account for about 20% of revenue. In 2022, the rental income from commercial properties reached HKD 2.5 billion.
• Property Management Services: This segment provides recurring revenue with an annual contribution of approximately HKD 625 million.

Key Financial Metrics

Development Projects

Shui On Land has a robust pipeline of projects which significantly contributes to its revenue generation. Major projects include:

• Shanghai Xintiandi: A premier mixed-use development with an estimated sales value of HKD 8 billion.
• Kunshan New City: Set to launch in 2023, projected revenue of HKD 5 billion.
• Wuxi's Taihu New Town: Expected sales around HKD 3 billion.

Market Trends and Opportunities

The property market in China continues to evolve, with trends favoring urbanization and the development of integrated communities. Shui On Land has strategically positioned itself to capitalize on:

• Rising Demand for Quality Housing: Increasing disposable income among urban residents drives demand.
• Green Building Initiatives: Commitment to sustainable development enhances brand reputation and attracts environmentally conscious buyers.
• Expansion into Emerging Cities: Plans to develop in tier-two and tier-three cities reflect growth diversification.

In 2022, the company's net debt stood at HKD 36 billion, with a debt-to-equity ratio of 0.66, showcasing a stable financial position. The strong balance sheet allows for continued investment in new projects and expansions.