CDI: 2020 Interim Results

DIRECTORS’ REVIEW

Financial Performance:

CDL Investments New Zealand Limited (“CDI”) can report that the Company has made an unaudited operating
profit after tax of $13.74 million for the six month period ending 30 June 2020 (2019: $15.10 million). Operating
profit before tax was $19.09 million (2019: $20.98 million).

The result is particularly creditable given the fact that New Zealand as a whole was in a lockdown for six weeks
from 26 March through to 14 May. Despite the restrictions on physical movement, online sales and promotional
activity was able to continue which demonstrated that in the first six months of this year, interest in CDI’s
subdivisions and sections has not waned.

Property sales and other income for the period was $40.96 million which exceeded last year’s figure of $40.29
million. Net Asset Backing (at cost) for the period under review was 85.9 cents per share (2019: 77.6 cents per
share).

Portfolio update:

All 91 sections in the Dominion Road, Papakura subdivision have been sold after the initial launch in December
2019.

While COVID-19 has meant delays with its commercial developments at Stonebrook (Rolleston) and Prestons Park
(Christchurch), we are still targeting completion and occupancy by the end of this year for the Stonebrook Local
Centre development and Q2 2021 for the Prestons Park Urban Village development..

Commentary and Outlook:

While we are happy with our sales performance to date, the second half of this year may be weaker than the first.

The fact that the sales we have settled to date have mainly come from our Kewa Road and Prestons Park
developments in Auckland and Christchurch, respectively, is encouraging and vindicates our strategy to progress
developments which are more likely to sell quickly. New stages are therefore being developed to meet demand
and we believe that these will also sell well during this year. The same approach is being adopted across our other
developments where we will only develop and complete as many sections as we believe to meet the demand.

CDI did not seek government assistance such as the Wage Subsidy and we are in the fortunate position in that we
have not had to make any redundancies or reduce our employees’ hours. We are very aware that several of the
businesses we are dealing with have had to take steps to deal with the crisis and we are looking to support them
where practicable.

Our target is to deliver another positive result and a dividend to shareholders once again but the economic effects
of COVID-19 are expected to be significant and long-lasting. While the New Zealand property market has passed
its peak, we remain quietly confident about our prospective sales for the rest of the year.

The Board and Management are monitoring the sales and development programmes very carefully and will not
hesitate to make decisions where necessary to ensure that CDI is able to perform to its maximum potential during
extremely challenging times while remaining mindful of CDI’s long term investment strategy.



Colin Sim
Chairman
29 July 2020

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29 July 2020

CDL INVESTMENTS SHOWS CREDITABLE FIRST HALF
SALES PERFORMANCE IN SPITE OF COVID-19

NZX-listed property development and investment company CDL Investments New Zealand Limited (NZX:CDI) today
released its (unaudited) results for the six months to 30 June 2020 and reported an operating profit after tax of
$13.74 million (2019: $15.10 million) on revenue of $40.96 million which exceeded last year’s figure of $40.29
million.

“It’s testament to the quality and location of our product”, said CDI’s Managing Director Mr. BK Chiu. “Despite six
weeks of lockdown, we were still able to make and record sales and we are pleased with our first-half
performance”, he said.

CDI said that the majority of its sales in the period came from its Auckland subdivision at Kewa Road (North Shore)
and Prestons Park (Marshlands/ Burwood) in Christchurch. This was a vindication of its strategy to focus on the
areas where there was sales demand and develop as much as required to meet the market.

“It sounds simple but given the softening market last year and the extreme events caused by COVID-19, predicting
demand and which areas will perform well has not been an easy matter”, said Mr. Chiu. “Having a well-spread
portfolio also helps”, he said.

The company was nevertheless cautious about the second half of 2020 and was not giving any revenue guidance
saying that consumer confidence would greatly influence the number of sales it was targeting for the year as well
as 2021.

“The full economic effects of COVID-19 are yet to be felt and while we are optimistic about how we will perform
this year, the same cannot be said for everyone else and we need to be sensitive to this”, Mr. Chiu said.

“We want to give shareholders confidence that we are targeting a positive result and a dividend but what both of
those will look like remains to be seen and very much subject to market forces outside of our control. What we
can control and manage, we will do so carefully while remaining mindful of CDI’s long term investment strategy”,
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

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Results announcement



Results for announcement to the market
Name of issuer CDL Investments New Zealand Limited
Reporting Period 6 months to 30 June 2020
Previous Reporting Period 6 months to 30 June 2019
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$40,955 1.65%
Total Revenue $40,955 1.65%
Net profit/(loss) from
continuing operations
$13,741 (9.01)%
Total net profit/(loss) $13,741 (9.01)%
Interim Dividend
Amount per Quoted Equity
Security
No interim dividend declared
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.86 $0.78
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to Shareholder Update
Authority for this announcement
Name of person

authorised
to make this announcement
Takeshi Ito
Contact person for this
announcement
Takeshi Ito
Contact phone number 09 353 5005
Contact email address takeshi.ito@cdli.co.nz
Date of release through MAP

29 July 2020

Unaudited financial statements accompany this announcement.

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CDL Investments New Zealand Limited and its Subsidiary
Condensed Interim Statement of Comprehensive Income
For the half year ended 30 June 2020
Unaudited 6
Months to
Unaudited 6
Months to
In thousands of dollarsNote30/06/2030/06/19
Revenue40,883 40,181
Cost of sales(20,004) (17,725)
Gross profit20,879 22,456
Other income72 110
Administrative expenses(146) (134)
Property expenses(177) (171)
Selling expenses(1,180) (1,099)
Other expenses(866) (709)
Results from operating activities18,582 20,453
Finance income504 524
Finance costs(1) (2)
Net finance income503 522
Profit before income tax19,085 20,975
Income tax expense(5,344) (5,873)
Profit/(loss) for the period13,741 15,102
Total comprehensive income/(expense) for the period13,741 15,102
Profit/(loss) Attributable to:
Equity holders of the Parent13,741 15,102
Total comprehensive income/(expense) for the period13,741 15,102
Earnings per share34.91c5.42c
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 SubsidiaryCondensed Interim Statement of Changes in Equity
For the half year ended 30 June 2020
GROUP
In thousands of dollars
Note
Unaudited Share
Capital
Unaudited
Retained
Earnings
Unaudited Total
Equity
Balance at 1 January 2019
54,864
155,730
210,594
Total comprehensive income/(expense) for the periodProfit/(loss) for the period
-
15,102
15,102
Total comprehensive income/(expense) for the period
-
15,102
15,102
Shares issued under dividend reinvestment plan
2
510
-
510
Dividend to shareholders
2
-
(9,734)
(9,734)
Supplementary dividend
-
(309)
(309)
Foreign investment tax credits
-
309
309
Balance at 30 June 2019
55,374
161,098
216,472
Balance at 1 January 2020
55,374
180,136
235,510
Total comprehensive income/(expense) for the periodProfit/(loss) for the period
-
13,741
13,741
Total comprehensive income/(expense) for the period
-
13,741
13,741
Shares issued under dividend reinvestment plan
2
1,280
-
1,280
Dividend to shareholders
2
-
(9,758)
(9,758)
Supplementary dividend
-
(286)
(286)
Foreign investment tax credits
-
286
286
Balance at 30 June 2020
56,654
184,119
240,773
Page
2

CDL Investments New Zealand Limited and its Subsidiary
Condensed Interim Statement of Financial Position
As at 30 June 2019
Unaudited as at
Audited as
at
Unaudited as
at
In thousands of dollarsNote30/06/2031/12/1930/06/19
SHAREHOLDERS' EQUITY
Issued capital56,654 55,374 55,374
Retained earnings184,119 180,136 161,098
Total Equity240,773 235,510 216,472
Represented by:
NON CURRENT ASSETS
Plant, furniture and equipment32 32 36
Development property137,251 145,138 138,119
Investment in associate2 2 2
Total Non Current Assets137,285 145,172 138,157
CURRENT ASSETS
Cash and cash equivalents18,850 34,435 16,594
Short term deposits48,500 19,620 21,120
Trade and other receivables2,139 3,932 3,314
Development property37,265 37,541 41,377
Total Current Assets106,754 95,528 82,405
Total Assets244,039 240,700 220,562
NON CURRENT LIABILITIES
Deferred tax liabilities63 63 71
Lease liability6 10 17
Total Non Current Liabilities69 73 88
CURRENT LIABILITIES
Trade and other payables1,692 984 2,888
Employee entitlements46 38 37
Income tax payable1,448 4,081 1,064
Lease liability11 14 13
Total Current Liabilities3,197 5,117 4,002
Total Liabilities3,266 5,190 4,090
Net Assets240,773 235,510 216,472
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 2020
Unaudited 6 Months to
In thousands of dollarsNote30/06/2030/06/19
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers42,895 38,731
Interest received357 754
Cash was applied to:
Payments to suppliers(13,206) (20,990)
Payments to employees(282) (272)
Purchase of development land- (7,624)
Income tax paid(7,691) (9,242)
Net Cash Inflow from Operating Activities22,073 1,357
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from:
Short Term Deposit Maturities19,620 38,620
Cash was applied to:
Purchase of plant and equipment(6) (2)
Short term deposits(48,500) (21,120)
Net Cash Inflow/(Outflow) From Investing Activities(28,886) 17,498
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was provided from:
Reinvestment of Dividends into Shares Issued
Cash was applied to:
Dividend paid(8,478) (9,224)
Principal repayment of lease liability(8) (8)
Supplementary dividend paid(286) (309)
Net Cash Outflow from Financing Activities(8,772) (9,541)
Net Increase/(Decrease) in Cash and Cash Equivalents(15,585) 9,314
Add Opening Cash and Cash Equivalents34,435 7,280
Closing Cash and Cash Equivalents18,850 16,594
Page 4

CDL Investments New Zealand Limited and its Subsidiary
Condensed Interim Statement of Cash Flows - continued
For the half year ended 30 June 2020
Unaudited 6 Months to
In thousands of dollarsNote30/06/2030/06/19
RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES
Net profit after taxation13,741 15,102
Adjusted for non cash items:
Depreciation of plant & equipment1 2
Depreciation of right-of-use assets6 6
Income tax expense5,344 5,873
Adjustments for movements in working capital:
(Increase)/Decrease in receivables1,793 (1,330)
(Increase)/Decrease in development properties8,163 (9,772)
Increase in payables716 718
Cash generated from Operations29,764 10,599
Income tax paid(7,691) (9,242)
Cash Inflows from Operating Activities22,073 1,357
The accompanying notes form part of, and should be read in conjunction with these financial
statements.
Page 5

Page 6
CDL Investments New Zealand Limited and its Subsidiary
Notes to the Condensed Interim Financial Statements
For the half year ended 30 June 2020 (unaudited)
1.S ignificant Accounting Policies
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 2020
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) S t atement 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 2019.
The condensed interim financial statements were authorised for issuance on 29 July 2020.
2.Capital & Reserves
S hare Capital
Under the Company’s Dividend Reinvestment Plan, an additional 1,629,555 shares were issued on 15 May 2020
(2019: 687,093) at a strike price of $0.7854 (2019: $0.7422).
At 30 June 2020, the authorised share capital consisted of 280,435,135 fully paid ordinary shares (2019:
278,805,580).
Dividends
The following dividends were declared and paid during the period ending 30 June:
In thousands of dollars 2020 2019
3.5 cents per qualifying ordinary share (2019: 3.5 cents) 9,758 9,734
9, 758 9, 734
3.E arnings Per Share
The calculation of basic and diluted earnings per share at 30 June 2020 of 4.91 cents (2019: 5.42 cents) was based
on the profit attributable to ordinary shareholders of $13,741,000 (2019: $15,102,000); and weighted average number
of shares of 279,891,950 (2019: 278,576,549) on issue in the period.
4.S egment Reporting
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
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.

Page 7
CDL Investments New Zealand Limited and its Subsidiary
Notes to the Condensed Interim Financial Statements
For the half year ended 30 June 2020 (unaudited)
5.M aterial 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 2020 (2019: Nil) that
would require disclosure.
6.Changes in Contingent Liabilities and 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 2020 (2019: Nil). There were no contingent liabilities or contingent assets as at 30 June 2020
(2019: Nil).
7.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 65.87% (2019: 66.26%) of the Company and
having three out of six of the Directors on the Board. Millennium & Copthorne Hotels New Zealand Limited is 70.79%
(2019: 70.79%) owned by CDL Hotels Holdings New Zealand Limited (computed on voting shares), 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 2020 CDL Investments New Zealand Limited has reimbursed its parent,
Millennium & Copthorne Hotels New Zealand Limited, $161,000 (2019: $159,000) for expenses incurred by the
parent on behalf of the Group.
S ubsidiary P rincipal Activity % Holding by
CDL Investments New Zealand Limited
B alance Date
CDL Land New Zealand
Limited
Property Investment
and Development
100.00 31 December
A ssociate P rincipal Activity % Holding by
CDL Land New Zealand Limited
B alance Date
Prestons Road Limited Service Provider 33.33 31 March
8.Commitments
As at 30 June 2020, the Group had entered into contractual commitments for development expenditure and
purchases of land. Contractual agreements for the purchase of land are subject to a satisfactory outcome of the
Group's due diligence process, board approval, and OIO approval. Development expenditure represents amounts
contracted and forecast to be incurred in the remainder of 2020 in accordance with the Group’s development
programme.
In thousands of dollars 2020 2019
Development expenditure 19,160 21,252
Land purchases 1,272 33,717
20, 432 54, 969