The three major development directions of the New World reduce dependence on real estate
The New World (00017) Group has been focusing on the China-Hong Kong real estate business for many years. Its subsidiary, NWS (00659), operates real estate-related businesses such as construction, facilities management, transportation and logistics, etc., and makes strategic investments from time to time. However, in recent years, the group seems to be interested in combing its industries. For example, in the early years of the New World, it reduced its Hong Kong hotel assets and privatized New World China. In the new creation, it reduced its holdings of certain logistics, parking lots, and shares of Beijing Capital Airport (00694). Great investment in aircraft leasing and medical care. Until this year, New World Executive Vice President and General Manager Zheng Zhigang announced at the September performance meeting that the group will seek new development in the future, with the goal of building a medical pension industry, investing in technological innovation, and promoting education.
With the maturity of China-Hong Kong property development, it will continue to grow in the long run and it will be difficult to rely on a single real estate business. In recent years, many Chinese and Hong Kong developers have actively expanded other businesses to diversify business risks.
Teng Tengxun Extensions create space
New World this year shows that the future will develop in three aspects, among which the medical pension business is slightly formed. The group has invested 400 million yuan to create the medical brand “Humansa Renshan Youshe”, and plans to invest another 1 billion yuan in the next five years. It includes four categories of middle-aged health care, medical rehabilitation, residential care and home care, and expands its medical service model to Dawan District.
As for technological innovation, K11 of New World has cooperated with Tencent (00700) to set up the first space and start-up incubator in Hong Kong. New World also took a stake in the well-known parent-child website in Hong Kong last year. In addition, Zheng’s private investment flagship Chow Tai Fook Enterprises acquired the prestigious Victoria Kindergarten last year. Zheng Zhigang and his wife Yu Yaying established the “Chow Tai Fook Education Group” to specialize in education business.
In terms of new creation, it already holds 20% of the shares of Hong Kong Yi Hospital and United Medical China, and holds Medical Asset Management Co., Ltd. together with Chow Tai Fook Enterprises and New World. Regarding whether the business will be reorganized in the future, Zheng Zhigang said earlier that there is no need for this. In the future, the Group will share resources and share synergies.