CDI: 2018 Interim Results Announcement

Reporting Period
6 months to 30 June 2018
Previous Reporting Period
6 months to 30 June 2017
60,227NZ$ Up18.00%
25,470NZ$ Up24.93%
25,470NZ$ Up24.93%
9.16c Up24.66%
9.16c Up24.66%
72.78c Up15.86%
Final Dividend
* No interim dividend was declared
Record Date
Dividend Payment Date
Comments:
Details of the reporting period and the previous corresponding reporting period:
This report is for the half year ended 30 June 2018 and should be read in conjunction with the most recent
annual financial report. Comparatives are in respect of the half year ended 30 June 2017.
Information prescribed by NZX:
Please refer to “Results for announcement to the market” and below.
--Statement of Financial Performance
Refer to the Condensed Interim Financial Statements.
--Statement of Financial Position
Refer to the Condensed Interim Financial Statements.
Profit (loss) from ordinary activities after tax
attributable to security holders
Not Applicable
Basic Earnings per share (cents)
Net Tangible Assets per share (cents)
CDL INVESTMENTS NEW ZEALAND LIMITED
Amount (000s)Percentage change
Revenue from ordinary activities
Diluted Earnings per share (cents)
Results for announcement to the market
Net profit (loss) attributable to security holders
Interim*/Final Dividend
Amount per security Imputed amount per security
Not Applicable Not Applicable
Not Applicable
Please refer to the attached Directors' Review.

--Statement of Cash Flows
Refer to the Condensed Interim Financial Statements.
--Details of individual and total dividends or distributions and dividend or distribution payments
Distributions declared
Not ApplicableNot Applicable
Last distribution paid
9.71NZ$ 3.50c
--Details of Dividend Reinvestment Plans in operation
--Net Tangible Assets per security (with comparatives for the previous corresponding period)
Ordinary shares72.78c62.82c
--Details of entities over which control has been gained or lost during the period
Nil.
--Details of associates and joint ventures
% Held
Current Full
Year
% Held
Previous
Corresponding
Full Year
Contributions
to Net Profit
Current Full
Year
Contributions
to Net Profit
Previous Full
Year
Prestons Road Limited33.33%33.33%-$ -$
Basis of preparation of financial statements:
Accounting Policies:
Refer to the Condensed Interim Financial Statements.
Changes in accounting policies:
There are no changes to accounting policies during the period.
Audit Report:
None, as Condensed Interim Financial Statements are unaudited.
Additional Information:
None.
DATE:2 August 2018
Not Applicable
NZ$ (million)NZ cents per share
None declared
The financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting
Practice (NZ GAAP). They comply with the New Zealand equivalents to International Financial Reporting Standards
(NZ IFRSs) as appropriate for Tier 1 profit-oriented entities. The financial statements also comply with International
Financial Reporting Standards (IFRSs).
Final dividend for the 2017 Financial Year (ordinary
shares)
On 8 February 2018, the Directors declared a final dividend of 3.50 cents per ordinary share. The dividend
reinvestment plan applied to this dividend. The total dividend of $9.71 million was paid on 18 May 2018. The dividend
was fully imputed and supplementary dividends were paid to non-resident shareholders. Refer to Note 2 in the
Condensed Interim Financial Statements.
NZ cents per shareCurrent full yearPrevious full year
Name

---

CHAIRMAN’S REVIEW


Financial Performance:

The Directors of CDL Investments New Zealand Limited (“CDI”) advise that the Company has made an
unaudited operating profit after tax of $25.47 million for the six month period ending 30 June 2018
(2017: $20.39 million). Operating profit before tax was $35.38 million (2017: $28.32 million).

Property sales and other income for the period was $60.23 million (2017: $51.04 million). Net Asset
Backing (at cost) for the period under review was 72.8 cents per share (2017: 62.8 cents per share).


Portfolio update:

As advised at the annual meeting of shareholders, CDI has settled agreements for over 100 hectares of
land in Hamilton and Christchurch to further its development projects in the medium term.

CDI recorded strong sales from Hamilton, Canterbury and Auckland notably at the Magellan Heights,
Prestons Park and Greville Road subdivisions respectively. Further stages will be progressively
developed to meet demand.

As part of the Prestons Park project, CDI is also looking at developing small scale commercial tenancies
for lease on its land to enhance the amenity value of its holdings as well as produce a new income
stream for CDI. Management is working with designers and agents to secure potential tenants with a
view to commencing leases in 2020.


Commentary and Outlook:

The Board is pleased with the level of sales activity to date and also pleased to secure land to ensure
its development future in the medium term. Diversification into commercial tenancies will also provide
the company with new possibilities for development in the future.

The Board has noted that forward demand for sections in certain areas is softening but will not affect
CDI’s 2018 performance or results.

With steady demand for high quality residential sections still apparent, we believe that we will better
our 2017 year end results at this stage.



Colin Sim
Chairman
2 August 2018

---

2 August 2018

CDL INVESTMENTS REPORTS STRONG HALF YEAR RESULT

Property development and investment company CDL Investments New Zealand Limited (NZX:CDI)
today released its (unaudited) results for the six months to 30 June 2018 and announced an operating
profit of $25.47 million (2017: $20.39 million) on revenue of $60.23 million (2017: $51.04 million).

“We are happy to report another half year where we have been able to grow our sales and profitability”,
said CDI’s Managing Director Mr. BK Chiu.

CDI had, he said, settled acquisitions for over 100 hectares of land.

“This secures our development future for the medium term. We continue to evaluate other
opportunities and are optimistic that we will be able to add to our portfolio later in the year” he said.

Mr. Chiu also noted that CDI’s sales for the period had come from its projects in Auckland, Hamilton,
and Christchurch. “CDI’s diversified portfolio across growth centres helps manage our business
performance in more challenging times” he added.

CDI also announced that it was looking at developing commercial premises for lease on its land.

“These will be small scale developments that are compatible with the residential areas and local
community”, said Mr. Chiu. “We have seen demand for child care centres and medical centres around
our subdivisions and we are looking at concept drawings now and talking to interested parties about
tenancies for 2020”.

Mr. Chiu was optimistic that CDI would better its 2017 results at this stage.

“Although we are seeing some softening in forward demand, sales continue to be steady. We are
therefore optimistic that we will better our 2017 results at this stage”, he said.


ENDS


Issued by CDL Investments New Zealand Limited

Any inquiries please contact:
B K Chiu
Managing Director
CDL Investments New Zealand Ltd
(09) 353 5077

---

CDL Investments New Zealand Limited and its Subsidiary
Condensed Interim Statement of Comprehensive Income
For the half year ended 30 June 2018
Unaudited 6
Months to
Unaudited 6
Months to
In thousands of dollarsNote30/06/1830/06/17
Revenue60,192 51,021
Cost of sales(23,090) (21,407)
Gross profit37,102 29,614
Other income35 18
Administrative expenses(140) (150)
Property expenses(185) (218)
Selling expenses(1,514) (1,390)
Other expenses(646) (559)
Results from operating activities34,652 27,315
Interest income726 1,000
Finance income726 1,000
Profit before income tax35,378 28,315
Income tax expense(9,908) (7,928)
Profit for the period25,470 20,387
Total comprehensive income for the period25,470 20,387
Profit attributable to:
Equity holders of the Parent25,470 20,387
Total comprehensive income for the period25,470 20,387
Earnings per share
Basic earnings per share (cents)39.16c7.35c
Diluted earnings per share (cents)39.16c7.35c
The accompanying notes form part of, and should be read in conjunction with these financial statements.
Page 1

CDL Investments New Zealand Limited and its Subsidiary
Condensed Interim Statement of Changes in Equity
For the half year ended 30 June 2018
In thousands of dollarsNote
Unaudited
Share Capital
Unaudited
Retained
Earnings
Unaudited
Total Equity
Balance at 1 January 201753,846 107,949 161,795
Total comprehensive income for the period
Profit for the period- 20,387 20,387
Total comprehensive income for the period- 20,387 20,387
Shares issued under dividend reinvestment plan2464 - 464
Dividend to shareholders- (8,308) (8,308)
Supplementary dividend- (253) (253)
Foreign investment tax credits- 253 253
Balance at 30 June 201754,310 120,028 174,338
Balance at 1 January 201854,310 131,802 186,112
Total comprehensive income for the period
Profit for the period- 25,470 25,470
Total comprehensive income for the period- 25,470 25,470
Shares issued under dividend reinvestment plan2554 - 554
Dividend to shareholders- (9,713) (9,713)
Supplementary dividend- (308) (308)
Foreign investment tax credits- 308 308
Balance at 30 June 201854,864 147,559 202,423
The accompanying notes form part of, and should be read in conjunction with these financial statements.
Page 2

CDL Investments New Zealand Limited and its Subsidiary
Condensed Interim Statement of Financial Position
As at 30 June 2018
Unaudited as atAudited as at Unaudited as at
In thousands of dollars30/06/1831/12/1730/06/17
SHAREHOLDERS' EQUITY
Issued capital54,864 54,310 54,310
Retained earnings147,559 131,802 120,028
Total Equity202,423 186,112 174,338
Represented by:
NON CURRENT ASSETS
Property, plant and equipment5 5 5
Development property121,302 90,595 79,848
Investment in associate2 2 2
Total Non Current Assets121,309 90,602 79,855
CURRENT ASSETS
Cash and cash equivalents25,814 18,774 19,584
Short term deposits31,000 46,500 52,000
Trade and other receivables3,276 1,726 1,888
Development property29,229 34,104 26,666
Total Current Assets89,319 101,104 100,138
Total Assets210,628 191,706 179,993
NON CURRENT LIABILITIES
Deferred tax liabilities2 2 2
Total Non Current Liabilities2 2 2
CURRENT LIABILITIES
Trade and other payables2,730 2,133 2,473
Employee entitlements36 27 28
Income tax payable5,437 3,432 3,152
Total Current Liabilities8,203 5,592 5,653
Total Liabilities8,205 5,594 5,655
Net Assets202,423 186,112 174,338
The accompanying notes form part of, and should be read in conjunction with these financial statements.
Page 3

CDL Investments New Zealand Limited and its Subsidiary
Condensed Interim Statement of Cash Flows
For the half year ended 30 June 2018
Unaudited 6
Months to
Unaudited 6
Months to
In thousands of dollars30/06/1830/06/17
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers58,510 52,587
Interest received893 582
Cash was applied to:
Payments to suppliers(14,164) (14,110)
Payments to employees(283) (197)
Purchase of development land(36,354) -
Income tax paid(7,595) (6,670)
Net Cash Inflow from Operating Activities1,007 32,192
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from:
Short term deposits46,500 45,500
Cash was applied to:
Short term deposits(31,000) (52,000)
Net Cash Inflow/(Outflow) from Investing Activities15,500 (6,500)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was applied to:
Dividend paid(9,159) (7,844)
Supplementary dividend paid(308) (253)
Net Cash Outflow from Financing Activities(9,467) (8,097)
Net Increase in Cash and Cash Equivalents7,040 17,595
Add Opening Cash and Cash Equivalents18,774 1,989
Closing Cash and Cash Equivalents25,814 19,584
Page 4

CDL Investments New Zealand Limited and its Subsidiary
Condensed Interim Statement of Cash Flows - continued
For the half year ended 30 June 2018
Unaudited 6
Months to
Unaudited 6
Months to
In thousands of dollars30/06/1830/06/17
Net profit after taxation25,470 20,387
Adjusted for non cash items:
Depreciation- 1
Income tax expense9,908 7,928
Adjustments for movements in working capital:
(Increase)/decrease in receivables(1,550) 1,130
(Increase)/decrease in development properties(25,832) 11,249
Increase/(decrease) in payables606 (1,833)
Cash generated from Operating Activities8,602 38,862
Income tax paid(7,595) (6,670)
Cash Inflow from Operating Activities1,007 32,192
The accompanying notes form part of, and should be read in conjunction with these financial statements.
RECONCILIATION OF PROFIT FOR THE PERIOD TO CASH FLOWS FROM
OPERATING ACTIVITIES
Page 5

Page 6
CDL Investments New Zealand Limited and its
CDL Investments New Zealand Limited and its CDL Investments New Zealand Limited and its
CDL Investments New Zealand Limited and its Subsidiary
SubsidiarySubsidiary
Subsidiary


Notes to the Condensed Interim Financial Statements
For the half year ended 30 June 2018 (unaudited)

1.
1.1.
1.

Significant Accounting Policies
Significant Accounting PoliciesSignificant Accounting Policies
Significant Accounting Policies





Reporting Entity
Reporting EntityReporting Entity
Reporting Entity


CDL Investments New Zealand Limited (the “Company”) is a company domiciled in New Zealand, registered under the
Companies Act 1993 and listed on the New Zealand Stock Exchange. The Company is a FMC Reporting Entity in terms of
the Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013.

The condensed interim financial statements of the Company as at and for the half year ended 30 June 2018 comprises the
Company and its subsidiary (together referred to as the “Group”).

The principal activity of the Group is the development and sale of residential land properties.



(a)
(a)(a)
(a) Statement of compliance
Statement of complianceStatement of compliance
Statement of compliance


The condensed interim financial statements have been prepared in accordance with New Zealand Generally Accepted
Accounting Practice (“NZ GAAP”). They comply with NZ IAS 34
Interim Financial Reporting. The condensed interim
financial statements do not include all of the information required for full annual financial statements.

The accounting policies applied by the Group in these condensed financial statements are the same as those applied
by the Group in its consolidated financial statements for the year ended 31 December 2017.

The condensed interim financial statements were authorised for issuance on 2 August 2018.



2.
2.2.
2.

Capital & Reserves
Capital & ReservesCapital & Reserves
Capital & Reserves



Share Capital
Share CapitalShare Capital
Share Capital


Under the Company’s Dividend Reinvestment Plan, an additional 604,516 shares were issued on 18 May 2018 (2017:
566,646) at a strike price of $0.9154 (2017: $0.8198).

At 30 June 2018, the authorised share capital consisted of 278,118,487 fully paid ordinary shares (2017: 277,513,971).



Dividends
DividendsDividends
Dividends
The following dividends were declared and paid during the period ending 30 June:
In thousands of dollars

2018
20182018
2018

2017
20172017
2017


3.5 cents per qualifying ordinary share (2017: 3.0 cents) 9,713 8,308
9,713
9,7139,713
9,713

8
88
8,
,,
,308
308308
308





3
33
3.
..
.

Earnings Per Share
Earnings Per ShareEarnings Per Share
Earnings Per Share



The calculation of basic and diluted earnings per share at 30 June 2018 of 9.16 cents (2017: 7.35 cents) was based on the
profit attributable to ordinary shareholders of $25,470,000 (2017: $20,387,000); and weighted average number of shares of
277,916,982 (2017: 277,325,089) on issue in the period.



4
44
4.
..
.

Segment
SegmentSegment
Segment

Reporting
ReportingReporting
Reporting





Operating segments
Operating segmentsOperating segments
Operating segments


The single operating segment of the Group consists of property operations, comprising the development and sale of
residential land sections.

The Group has determined that its chief operating decision maker is the Board of Directors on the basis that it is this group
which determines the allocation of resources to segments and assesses their performance.

Geographical segments
Geographical segmentsGeographical segments
Geographical segments


Segment revenue is based on the geographical location of the segment assets. All segment revenues are derived in New
Zealand.

Segment assets are based on the geographical location of the development property. All segment assets are located in
New Zealand. The Group has no major customer representing greater than 10% of the Group’s total revenues.

5
55
5.
..
.

Material Events Subsequent to the end of the Interim Period
Material Events Subsequent to the end of the Interim PeriodMaterial Events Subsequent to the end of the Interim Period
Material Events Subsequent to the end of the Interim Period



There were no material events subsequent to the end of the six month period ended 30 June 2018 (2017: Nil) that would
require disclosure.

6
66
6.
..
.

Changes in Contingent Liabilities a
Changes in Contingent Liabilities aChanges in Contingent Liabilities a
Changes in Contingent Liabilities and Contingent Assets since last Annual Balance Sheet Date
nd Contingent Assets since last Annual Balance Sheet Datend Contingent Assets since last Annual Balance Sheet Date
nd Contingent Assets since last Annual Balance Sheet Date



There were no changes in contingent liabilities and contingent assets that would require disclosure for the six month period
ended 30 June 2018 (2017: Nil). There were no contingent liabilities or contingent assets as at 30 June 2018 (2017: Nil).

Page 7
CDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its SubsidiaryCDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its Subsidiary


Notes to the Condensed Interim Financial Statements
For the half year ended 30 June 2018 (unaudited)



7
77
7.
..
.

Related Party Transactions
Related Party TransactionsRelated Party Transactions
Related Party Transactions



CDL Investments New Zealand Limited is a subsidiary of Millennium & Copthorne Hotels New Zealand Limited by virtue of
Millennium & Copthorne Hotels New Zealand Limited owning 66.42% (2017: 66.56%) of the Company and having three out
of six of the Directors on the Board. Millennium & Copthorne Hotels New Zealand Limited is 70.79% (computed on voting
shares) owned by CDL Hotels Holdings New Zealand Limited, which is a wholly owned subsidiary of Millennium &
Copthorne Hotels plc in the United Kingdom. The ultimate holding company is Hong Leong Investment Holdings Pte Ltd in
Singapore.

During the six month period ending 30 June 2018 CDL Investments New Zealand Limited has reimbursed its parent,
Millennium & Copthorne Hotels New Zealand Limited, $157,000 (2017: $157,000) for expenses incurred by the parent on
behalf of the Group.

Subsidiary
SubsidiarySubsidiary
Subsidiary

Principal Activity
Principal ActivityPrincipal Activity
Principal Activity

% Holding by
% Holding by% Holding by
% Holding by


CDL Investments New Zealand Limited
CDL Investments New Zealand LimitedCDL Investments New Zealand Limited
CDL Investments New Zealand Limited


Balance Date
Balance DateBalance Date
Balance Date


CDL Land New Zealand Limited Property Investment
and Development
100.00 31 December

Associate
AssociateAssociate
Associate

Principal
Principal Principal
Principal Activity
ActivityActivity
Activity

% Holding by
% Holding by% Holding by
% Holding by


CDL Land New Zealand Limited
CDL Land New Zealand LimitedCDL Land New Zealand Limited
CDL Land New Zealand Limited


Balance Date
Balance DateBalance Date
Balance Date


Prestons Road Limited Service Provider 33.33 31 March