Wing Tai : Annual Report 2021

Resolute & Resilient

Wing Tai Holdings Limited		Annual Report 2021

Resolute & Resilient

The front cover showcases the collective positive spirit of the people in Wing Tai, coming together to form our Tembusu logo

• a symbol of resilience. The inner front cover spread features our people in action, exemplifying resolve and resilience in their daily work to ensure business continuity and safety.

Contents

Strategic Review

02. Chairman's Message

04. Board of Directors

07. Key Management

08. Corporate Data

Operating and Financial Review

09. Property

1. Retail
2. Year in Brief
3. Corporate Social Responsibility

Corporate Governance

18. Corporate Governance Report

Financial

33. Financial Reports

ANNUAL REPORT 2021 RESOLUTE AND RESILIENT

01.

STRATEGIC REVIEW

Chairman's Message

Overview

Group Performance

previous year. This increase is primarily due to the higher contribution from The

In the wake of the COVID-19 pandemic, the Singapore economy contracted by 5.4% in 2020, compared to 0.7% growth in 2019. In the second quarter of 2021, the Ministry of Trade and Industry reported the Singapore economy expanded by 14.7% on a year-on-year basis, with a full-year growth forecast of 6% to 7% for 2021.

The Property Price Index (PPI) increased 0.8% in the 3rd Quarter of 2020 and trended upwards by 2.1% to 157.0 in the fourth quarter of 2020 despite the challenges posed by the pandemic. The upward momentum continued in the first quarter of 2021, with the PPI rising 3.3% to 162.2, and another 0.8% in the second quarter to 163.5. The total number of new residential units sold in Singapore in 2020 increased by 0.7% to 9,982 units compared to 9,912 units sold in 2019. In the first half of 2021, developers sold 6,459 new homes, 67% higher than the first half of 2020.

For the financial year ended

30 June 2021, the Group recorded

1. total revenue of S$461.4 million. This represents a 24% increase from the S$371.0 million revenue recorded in the previous year. This increase is mainly due to the higher contribution from development properties. The current year revenue from development properties was largely attributable to the additional units sold in Le Nouvel Ardmore and the progressive sales recognised from The M at Middle Road in Singapore.

The Group recorded higher operating profit of S$69.7 million in the current year as compared to S$45.0 million in the previous year. This increase is mainly due to the higher contribution from the development properties.

The Group's share of profits of associated and joint venture companies increased to S$36.3 million in the current year from S$12.1 million in the

Garden Residences in Singapore on the additional units sold.

In the current year, the Group's net profit attributable to shareholders was S$43.6 million as compared to S$16.0 million in the previous year. Excluding the fair value changes on investment properties, the underlying net profit for the Group is S$116.8 million in the current year, which is 68% higher than the S$69.6 million recorded in the previous year.

The Group's net asset value per share as at 30 June 2021 was S$4.14. It was S$4.18 as at 30 June 2020. The Group was in a net cash position as at 30 June 2021. This is a change from the previous year when it had a net gearing ratio of 0.05 times.

Dividend

The Board recommended a first and final dividend of 3 cents per share and a special dividend of 2 cents per share for the current year.

As a Group, we will pivot our strategies to respond to changes in the business climate. Our strong balance sheet positions us to take advantage of value-accretive opportunities in the region.

02. WING TAI HOLDINGS LIMITED

Resolute and Resilient

Unwavering Focus

As mass vaccination got underway and the economy gradually reopened in Singapore, 2021 brought some early signs of recovery. Globally, the pandemic situation continues to evolve, but our business has proven to be resilient. While we remained agile to external developments, we kept our focus on what's important. Our foremost priority continues to be the safety and well-being of our employees, customers and stakeholders; second, to keep our offices, retail stores, construction sites and sales galleries safely operating; and third, to be a source of strength for segments of our community which require extra support during these times.

The Group's residential projects in Singapore continued to generate interest among homebuyers. The Crest and The Garden Residences were fully sold, and more than 85% of The M at Middle Road was sold as at

30 June 2021. Our residential project in Shanghai, Malaren Gardens was also fully sold.

On the retail front, we have streamlined our portfolio to sharpen the performance of our retail operations. The Group will continue to roll out customer-centric programmes and use digital platforms to engage our customers actively. Uniqlo, our joint venture with Fast Retailing, continues to achieve robust sales.

Our investments in technology and data infrastructure allowed us to transition quickly to remote working to comply with the authorities' safe management measures. We launched a new Intranet where employees can connect, collaborate and share information, access helpful resources and receive real-time updates about the Group.

Our people are integral to how we will navigate the challenges and opportunities ahead. We will continue to invest in our employees, providing training and other learning experiences to advance their growth and development.

Standing With Our Communities

The Group continues to give back to the community through corporate social responsibility programmes under the Wing Tai Foundation. During the year, we supported the needy elderly and underprivileged young through financial aid programmes. Our employees also actively participated in food donation drives to support the more vulnerable segments of our community.

The Road Ahead

History has shown that periods of great transition bring challenges and opportunities. As a Group, we will pivot our strategies to adapt to changes in the business climate. Our strong balance sheet positions us to take advantage of value-accretive opportunities in the region. We will press on in our digitalisation journey

to sharpen performance and service delivery. As long as our people remain resolute and resilient, I am confident that we will emerge from this unprecedented crisis stronger and with a renewed sense of purpose.

Appreciation

On behalf of the Board, I would like to thank our staff and management for their dedication, commitment, and can-do spirit in the past year. I would also like to extend my appreciation to our Board, for their invaluable counsel towards the Group's growth strategy and corporate governance. To our shareholders, customers, tenants, bankers and business associates,

I thank you for your continued support and confidence in the Group.

Cheng Wai Keung

Chairman

Wing Tai Holdings Limited

23 September 2021

ANNUAL REPORT 2021 RESOLUTE AND RESILIENT

03.