CDI: 2021 Interim Results

Results announcement



Results for announcement to the market
Name of issuer CDL Investments New Zealand Limited
Reporting Period 6 months to 30 June 2021
Previous Reporting Period 6 months to 30 June 2020
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$61,271 49.61%
Total Revenue $61,271 49.61%
Net profit/(loss) from
continuing operations
$20,753 51.03%
Total net profit/(loss) $20,753 51.03%
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
$0.96 $0.86
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 5077
Contact email address takeshi.ito@cdli.co.nz
Date of release through MAP

2 August 2021

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 2021
Unaudited 6
Months to
Unaudited 6
Months to
In thousands of dollarsNote30/06/2130/06/20
Revenue61,181 40,883
Cost of sales(30,162) (20,004)
Gross profit31,019 20,879
Other income90 72
Administrative expenses(187) (146)
Property expenses(133) (177)
Selling expenses(1,517) (1,180)
Other expenses(770) (866)
Results from operating activities28,502 18,582
Finance income324 504
Finance costs(2) (1)
Net finance income322 503
Profit before income tax28,824 19,085
Income tax expense(8,071) (5,344)
Profit for the period20,753 13,741
Total comprehensive income for the period20,753 13,741
Profit Attributable to:
Equity holders of the Parent20,753 13,741
Total comprehensive income for the period20,753 13,741
Earnings per share37.28c4.91c
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 2021
GROUP
In thousands of dollars
Note
Unaudited Share
Capital
U
nau
di
te
d

Retained
Earnings
Unaudited Total
Equity
Balance at 1 January 2020
55,374

180,136

235,510

Total comprehensive income for the periodProfit for the period
-

13,741

13,741

Total comprehensive income 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

Balance at 1 January 2021
56,654

200,477

257,131

Total comprehensive income for the periodProfit for the period
-

20,753

20,753

Total comprehensive income for the period
-

20,753

20,753

Shares issued under dividend reinvestment plan
2
7,800

-

7,800

Dividend to shareholders
2
-

(9,815)

(9,815)

Supplementary dividend
-

(194)

(194)

Foreign investment tax credits
-

194

194

Balance at 30 June 2021
64,454

211,415

275,869

Page 2

CDL Investments New Zealand Limited and its Subsidiary
Condensed Interim Statement of Financial Position
As at 30 June 2021
Unaudited as at
Audited as
at
Unaudited as
at
In thousands of dollarsNote30/06/2131/12/2030/06/20
SHAREHOLDERS' EQUITY
Issued capital64,454 56,654 56,654
Retained earnings211,415 200,477 184,119
Total Equity275,869 257,131 240,773
Represented by:
NON CURRENT ASSETS
Plant, furniture and equipment51 23 32
Development property115,865 119,096 137,251
Investment property8,401 3,325 -
Investment in associate172 2 2
Total Non Current Assets124,319 122,446 137,285
CURRENT ASSETS
Cash and cash equivalents90,950 10,111 18,850
Short term deposits41,500 86,620 48,500
Trade and other receivables3,384 3,486 2,139
Development property24,550 42,342 37,265
Total Current Assets160,384 142,559 106,754
Total Assets284,703 265,005 244,039
NON CURRENT LIABILITIES
Deferred tax liabilities59 59 63
Lease Liability22 3 6
Total Non Current Liabilities81 62 69
CURRENT LIABILITIES
Trade and other payables4,933 3,932 1,692
Employee entitlements59 52 46
Income tax payable3,748 3,821 1,448
Lease Liability13 7 11
Total Current Liabilities8,753 7,812 3,197
Total Liabilities8,834 7,874 3,266

Net Assets
275,869 257,131 240,773
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 2021
Unaudited 6 Months to
In thousands of dollarsNote30/06/2130/06/20
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers61,207 42,895
Interest received490 357
Cash was applied to:
Payments to suppliers(10,399) (13,206)
Payments to employees(308) (282)
Income tax paid(7,950) (7,691)
Net Cash Inflow from Operating Activities43,040 22,073
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from:
Short Term Deposit Maturities86,620 19,620
Cash was applied to:
Purchase of plant and equipment(3) (6)
Purchase of investment property(5,101) -
Short term deposits(41,500) (48,500)
Net Cash Inflow/(Outflow) From Investing Activities40,016 (28,886)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was applied to:
Dividend paid(2,015) (8,478)
Principal repayment of lease liability(8) (8)
Supplementary dividend paid(194) (286)
Net Cash Outflow from Financing Activities(2,217) (8,772)
Net Increase/(Decrease) in Cash and Cash Equivalents80,839 (15,585)
Add Opening Cash and Cash Equivalents10,111 34,435
Closing Cash and Cash Equivalents90,950 18,850
Page 4

CDL Investments New Zealand Limited and its Subsidiary
Condensed Interim Statement of Cash Flows - continued
For the half year ended 30 June 2021
Unaudited 6 Months to
In thousands of dollarsNote30/06/2130/06/20
RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES
Net profit after taxation20,753 13,741
Adjusted for non cash items:
Depreciation of plant & equipment1 1
Depreciation of right-of-use assets7 6
Depreciation of investment property25 -
Income tax expense8,071 5,344
Adjustments for movements in working capital:
Decrease in receivables102 1,793
Decrease in development properties21,023 8,163
Increase in payables1,008 716
Cash generated from Operations50,990 29,764
Income tax paid(7,950) (7,691)
Cash Inflows from Operating Activities43,040 22,073
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 2021 (unaudited)
1.Significant 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.
T
he condensed interim financial statements of the Company as at and for the half year ended 30 June 2021
comprises the Company and its subsidiary (together referred to as the “Group”).
T
he principal activity of the Group is the development and sale of residential land properties.
(a)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
c
ondensed interim financial statements do not include all of the information required for full annual financial
statements.
T
he 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 2020.
T
he condensed interim financial statements were authorised for issuance on 2 August 2021.
2.Capital & Reserves
Share Capital
Under the Company’s Dividend Reinvestment Plan, an additional 7,077,888 shares were issued on 14 May 2021
(2020: 1,629,555) at a strike price of $1.1020 (2020: $0.7854).
At 30 June 2021, the authorised share capital consisted of 287,513,023 fully paid ordinary shares (2020:
280,435,135).
Dividends
The following dividends were declared and paid during the period ending 30 June:
In thousands of dollars 2021 2020
3.5 cents per qualifying ordinary share (2020: 3.5 cents) 9,815 9,758
9,815 9,758
3.Earnings Per Share
T
he calculation of basic and diluted earnings per share at 30 June 2021 of 7.28 cents (2020: 4.91 cents) was based
on the profit attributable to ordinary shareholders of $20,753,000 (2020: $13,741,000); and weighted average number
of shares of 285,153,727 (2020: 279,891,950) on issue in the period.
4.Segment Reporting
Operating segments
The major operating segment of the Group consists of property operations, comprising the development and sale of
residential land sections. The revenue from investment property for the current period is only $16,000 and therefor
e
i
s not significant enough to justify a separate segmental disclosure.
T
he 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.
S
egment assets are based on the geographical location of the development property. All segment assets ar
e
l
ocated 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 2021 (unaudited)
5.Material Events Subsequent to the end of the Interim Period
T
here were no material events subsequent to the end of the six month period ended 30 June 2021 (2020: Nil) that
would require disclosure.
6.Changes in Contingent Liabilities and Contingent Assets since last Annual Balance Sheet Date
T
here were no changes in contingent liabilities and contingent assets that would require disclosure for the six month
period ended 30 June 2021 (2020: Nil). There were no contingent liabilities or contingent assets as at 30 June 2021
(2020: Nil).
7.Related Party Transactions
C
DL Investments New Zealand Limited is a subsidiary of Millennium & Copthorne Hotels New Zealand Limited by
virtue of Millennium & Copthorne Hotels New Zealand Limited owning 66.29% (2020: 65.87%) of the Company and
having three out of six of the Directors on the Board. Millennium & Copthorne Hotels New Zealand Limited is 70.79
%
(20
20: 70.79%) owned by CDL Hotels Holdings New Zealand Limited (computed on voting shares), which is a wholly
owned subsidiary of Millennium & Copthorne Hotels Ltd 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 2021 CDL Investments New Zealand Limited has reimbursed its parent,
Millennium & Copthorne Hotels New Zealand Limited, $161,000 (2020: $161,000) for expenses incurred by the
parent on behalf of the Group.
Subsidiary Principal Activity % Holding by
CDL Investments New Zealand Limited
Balance Date
CDL Land New Zealand
Limited
Property Investment
and Development
100.00 31 December
Associate Principal Activity % Holding by
CDL Land New Zealand Limited
Balance Date
Prestons Road Limited Service Provider 33.33 31 March
8.Commitments
A
s at 30 June 2021, the Group had entered into contractual commitments for development expenditure, construction
of investment properties, 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 2021 in accordance with
the Group’s development programme.
In thousands of dollars 2021 2020
Development expenditure 12,888 19,160
Land purchases 56,258 1,272
Capital expenditure on investment properties 24,675 -
93,821 20,432
9.Subsequent Event
S
ubsequent to balance date, the Group settled the acquisition of 69.4 hectares of land at Havelock North.

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DIRECTORS’ REVIEW

Financial Performance:

CDL Investments New Zealand Limited (“CDI”) made an unaudited operating profit after tax of $20.75 million for the six month
period ending 30 June 2021 (2020: $13.74 million). Operating profit before tax was $28.82 million (2020: $19.08 million).

Property sales and other income for the period was $61.27 million (2020: $40.96 million). Net Asset Backing (at cost) for the
period under review was 95.95 cents per share (2020: 85.9 cents per share).

The results reflect ongoing positive strength in the New Zealand property markets generally. The Board is satisfied with the
current sales tempo and believes that the company should look to take advantage of the current positive market conditions and
meet current demand.

Portfolio update:

CDI settled sales of residential sections in Auckland , Hamilton and Canterbury from its Kewa Road, Dominion Road, Magellan
Heights and Prestons Park subdivisions within the last six months and is targeting further sales in Auckland and Canterbury in the
second half of the year. The company also sold industrial zoned land in Auckland and this is recognised in the results.

While CDI did not make any land acquisitions in the first half of 2021, it has been evaluating a number of potential acquisition
opportunities in various locations. As advised on 21 July, the company settled a transaction for 69.4 hectares of land located in
Havelock North which will secure its short to long term development requirements in that region. The company is also looking
at additional opportunities and announcements will be made in due course should any of these potential opportunities proceed
to contract.

In April, CDI announced that it has reached agreement with Fernbrook Property (No. 1) Limited for the sale of 3.8320 hectares of
land located at Wiri which is zoned Business-Heavy Industry. Settlement is to take place in January 2022 and the sale price and
terms remain confidential to the parties.

Construction of CDI’s Commercial Centre at Stonebrook is complete and the majority of units are tenanted with negotiations
ongoing for the remaining two units. The Centre is operational and has been well received by the local community. Block 1 of
the Prestons Park Commercial Centre is due to be completed by the end of July and Block 2 remains on schedule to be completed
by the end of the year.

Good progress has been made with the Design Build and Lease development in Wiri (Auckland) which commenced earlier this
year with the Warehouse 1 build scheduled for completion by Q1 2022 and Warehouse 2 completion during Q3 2022. Tenants
have been secured for both Warehouses.

The change in Alert Levels in Auckland and Wellington during the first half of 2021 did not impact on CDI’s activities.

Commentary and Outlook:

With economic activity remaining relatively strong in New Zealand at the present time, we expect that the demand for residential
sections across the country will remain high for the time being. That said, the medium to longer term outlooks are becoming
somewhat uncertain with predictions of higher interest rates and inflation.

While we remain positive that we should be able to better our 2020 results at this stage, we do not discount a sudden downward
shift in economic conditions globally or regionally before the end of the year and the impact that any such change may have on
our results.

CDI has always believed that having a geographically diverse portfolio is a key factor to ensuring that it can withstand economic
vagaries as it is not reliant on a single project or subdivision. Besides replenishing the area of our development land, another
factor is ensuring that we pace our developments appropriately to meet demand. The Board has asked Management to look
closely at positioning all of the company’s land holdings to ensure that we can continue to respond quickly to the prevailing
market conditions affecting each of CDI’s subdivisions and to make decisions in an agile way to ensure we optimise value at all
times.


Colin Sim
Chairman
2 August 2021

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2 August 2021

ANOTHER STRONG FIRST HALF RESULT FOR CDL INVESTMENTS

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 2021 and reported an operating profit of $20.75
million (2020: $13.74 million) on revenue of $61.27 million (2020: $40.96 million).

“The property markets in New Zealand remain strong and buoyant and our first half results reflect that”, said CDI’s
Managing Director Mr. BK Chiu. “We settled sales in Auckland, Hamilton and Canterbury and interest from
purchasers for future stages continues to be positive which is a good sign for the second half of the year”, he said.

CDI noted that it had been evaluating a number of potential acquisition opportunities in various locations.

“As we announced in July, we have secured 69.4 hectares of land in Havelock North and this will allow us to develop
in the region for some time to come. We are also in discussions on other potential acquisitions and while these
are confidential at the moment should any proceed to contract, we will make announcements to the market”, said
Mr. Chiu.

Speaking about the second half of 2021, Mr. Chiu said that CDI was optimistic about its sales for the rest of the
year but sounded a note of caution for the medium term.

“Demand for residential sections across New Zealand will remain strong for this year but looking further out, we
are starting to see signs that market conditions will change. We are therefore planning accordingly and ensuring
that we can respond quickly to any changes whether they be up or down and optimise value at all of our
developments”.

“For now, we remain on track to better our 2020 results at this stage assuming that there are no unexpected events
or sudden downward economic shifts”, 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