MCK 2021 Annual Report
ANNUAL REPORT
2021
MILLENNIUM & COPTHORNE HOTELS
NEW ZEALAND LTD
Photograph by Stuart Nimmo
“Coast Road” (West Coast)
Print featured at Copthorne Hotel Greymouth
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | 2
Annual Report Issued 25 March 2022
Annual Shareholder Meeting 24 May 2022
Half Year End 30 June 2022
Financial Year End 31 December 2022
03 - 04 Chairman’s Review
05 Doing Our Bit
06 Painting The Town Grey
07 - 08 Birds of New Zealand
09 Directors’ Profiles
10 Hotel Ownership
11 Hotel Directory
FIN1 – FIN27 Financial Statements
FIN28 – FIN31 Auditor’s Report
CG1 – CG4 Corporate Governance
REG1 - REG5 Regulatory Disclosures
and Statutory Information
2017201820192020*2021*
Revenue
$187.3m $218.8m $229.7m $172.0m $164.8m
Profit Before Tax
$74.9m$85.1m$85.4m$54.4m$64.6m
Profit After
Tax & NCI
$43.1m $49.4m $49.7m $48.5m $40.0m
Total Assets
$828.2m $898.2m $1,008.2m $664.1m $680.8m
Group Equity
$588.9m $640.3m $715.3m $474.7m $514.2m
Net Asset Backing /
Per Share
$3.72 $4.04 $4.52 $3.00 $3.25
Market Value of NZ
Development Properties
$276.3m $337.8m $315.6m $286.4m $334.1m
Market Value of
Australian Development
Properties
$94.0m $91.0m $88.4m $68.5m $61.7m
Market Value of NZ
Investment Properties
$ - $ - $ - $6.4m $25.5m
Market Value of NZ Hotel
Properties
$540.2m $542.3m $585.5m $561.9m $567.6m
FIVE YEAR TREND STATEMENT
CONTENTSCALENDAR
Colin Sim
Chairman
B K Chiu
Managing Director
* During 2021, the Group changed its accounting policy relating to the measurement of land and buildings from revaluation to historical cost.
The comparative figures for 2020 are restated accordingly. Refer to Note 25 of the Financial Statements for further information.
3 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
CHAIRMAN’S REVIEW
This time last year, we were hopeful that the prospects for 2021 would
be better than those in 2020. There was good cause for optimism as we
learned of vaccines that would be made available and the prospect of
restrictions potentially easing as New Zealand pursued its elimination
strategy and looked to get on top of the spread of the virus. That
optimism turned out to be short-lived with the arrival of the Delta
variant and the re-imposition of lockdowns initially across the whole
of New Zealand but latterly in Auckland.
In 2021, the efforts of our staff were no less extraordinary than in
2020. They continued to adapt to an environment without international
visitors for a second straight year.
Once more, MCK’s Board thanks all of its team members at each of
its hotels and corporate offices for their contributions in 2021. You
have done us proud and we are grateful for the work you do each day.
Towards the end of 2021, there were two significant positive matters
– in November, we welcomed the unanimous decision of the Court
of Appeal to declare Auckland Council’s Accommodation Provider
Targeted Rate as illegal. We are disappointed that Council has decided
to appeal the decision. We are optimistic that the Supreme Court will
affirm the Court of Appeal’s decision.
In December 2021, after a consultation process, MCK announced its
vaccination policy which required all employees and guests to be fully
immunized against Covid-19. This has been very well received by
our guests and stakeholders alike, and reflects the general sentiment
across the majority of New Zealanders who want and expect a safe
environment when they travel away from home.
Financial Performance & Financial Position
For the year ended 31 December 2021, MCK recorded a profit
attributable to owners of the parent of $40.0 million (2020*: $48.5
million).
Our 2021 results were bolstered by the continued strong performance
of our property development operations through our majority-owned
subsidiary, CDL Investments New Zealand Limited and from a one-
off gain of $15.9 million on disposal from the sale of land (described
as other income). Overall, MCK’s New Zealand hotel operations
recorded a profit before tax of $13.8 million (2020*: $5.5 million).
Without the one-off gain from the sale of land, MCK would have
recorded a pre-tax loss of $2.1 million. This was reflected in our
earnings per share which decreased to 25.31 cents per share (2020*:
30.64 cents per share).
Our 2021 revenue totaled $164.8 million (2020: $172.0 million)
largely contributed by CDL Investments. There were no tax credits
in 2021 offered by the Government as pandemic support, although
MCK’s subsidiary claimed $4.2 million of wage subsidy particularly
during the Level 4 and Level 3 lockdowns in 2021. A total of $202,078
of other Government support such as the Resurgence Support Payment
was claimed during the year.
At 31 December 2021, MCK’s shareholders’ funds excluding non-
controlling interests was $514.2 million (2020*: $474.7 million). Total
assets increased to $680.8 million (2020*: $664.1 million) with net
asset backing (with land and building at cost and before distributions)
also increasing to 324.8 cents per share (2020*: 299.8 cents per share).
New Zealand Hotel Operations
In 2021, we achieved an average occupancy of 36.1% (2020: 39.2%),
reflecting the closed New Zealand borders that, accordingly, the sole
reliance on New Zealand residents. The lockdowns affecting Auckland
had a severe effect on travel and accommodation throughout New
Zealand and the loss of revenue in the third and fourth quarters of the
year were not able to be recovered.
Despite that, and owing to careful targeted marketing, the average
RevPAR (Revenue Per Available Room) achieved across all of MCK’s
hotels was $57.91 (2020: $66.17).
Both Grand Millennium Auckland and M Social Auckland remained
in the Managed Isolation programme during 2021 and are contracted
to remain as MIQ properties for at least part of 2022.
Kingsgate Hotel Greymouth underwent major refurbishment
works for several months in 2021 and is scheduled to be rebranded
to the Copthorne Hotel Greymouth in the first half of 2022. The
refurbishment of two levels of guest rooms at Millennium Hotel
Queenstown is ongoing. Additional refurbishments are scheduled
to take place at other hotels in 2022 in anticipation of the return of
international visitors.
*The 2020 comparative figures are restated due to the fact that during 2021, MCK changed its accounting policy relating to the measurement of land and buildings from
revaluation to historical cost . Refer to Note 25 of the Financial Statements for further information.
3 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
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CDL Investments New Zealand Limited (“CDLI”)
CDLI continued to meet strong demand for its residential sections in
2021 and recorded an operating profit after tax for the year ended 31
December 2021 of $31.3 million (2020: $30.1 million).
CDLI has maintained its dividend at 3.5 cents per share and MCK’s
Board has resolved to take its CDLI dividend in cash when it is paid in
May. Given that CDLI’s profitability and dividend will assist MCK’s
overall results in 2022, MCK is assured that CDI is sufficiently
resourced to allow it to continue its sales and development activities
in 2022 and that the decision by MCK to take its dividend in cash will
not affect CDI’s position.
Australia Update
In 2021, a total of ten apartments were sold at the Zenith Residences in
Sydney. This was slightly below expectations given market conditions
in Australia. MCK will continue to market its Zenith Residences for
sale but will adjust its selling strategy given continued strong interest
in residential property in Australia.
Dividend Announcement
MCK’s Board has resolved to declare and pay all shareholders a
fully imputed dividend of 3.5 cents per share for 2021. The dividend,
payable to all shareholders, will be paid on 13 May 2022 with a
record date of 6 May 2022. The dividend is modest and reflects the
overall profit made in 2021 but also allows MCK to retain and deploy
additional funds for its ongoing refurbishment and upgrade capital
works in 2022 in preparation for 2023 and beyond.
Outlook
The current state of business will continue as long as the pandemic
continues to stifle international travel. Those issues are completely
outside MCK’s control and it is already clear that 2022 will be another
difficult year. If we have some cause to be optimistic for the second
half of the year, it is that vaccination rates in key markets remain high
and vaccination mandates for travel have become the norm. This
should, we hope, allow some level of international travel to New
Zealand to resume in 2022.
The announcements made by the New Zealand Government on
3 February confirming the step plan to reopen the international
borders starting from late February 2022 are good news for Kiwis
looking to return home this year. However, because all of the steps
currently require a period of self-isolation for everyone entering New
Zealand regardless of origin, we believe that international visitors
will choose destinations other than New Zealand which do not have
such requirements. As the plan also assumes that the international
border will reopen to all non-New Zealand or Australian visitors from
October, we do not expect to see a material boost in visitor numbers
or to our revenue this year even if the timeline is brought forward.
The current low occupancy and domestic orientated environment will
continue for most, if not all, of this year. We are looking at a half year
of break-even results for H1 2022 for the hotel operations, but expect
our property development activities to continue with their positive
momentum throughout 2022. We will continue to take the opportunity
to progressively upgrade and refurbish our hotels across out network
in anticipation of better times in 2023 and 2024.
The advantage we have now is that we know the effect of the last two
years on our operations and our business. We are able to scale back
quickly if we need to should the current trading situation continue
longer than anticipated. But we are also looking to scale up our
operations where demand warrants it and will compete for talent and
resources purposefully to ensure that we remain a leader in the New
Zealand accommodation markets.
2022 will also see the conclusion of our Managing Director BK Chiu’s
time with the group. On behalf of the Board, I would like to take
this opportunity to thank BK for his tireless efforts over the course
of over sixteen-plus years with MCK and CDI which has seen the
group through many difficult challenges including this pandemic. His
significant contribution and leadership has ensured that MCK remains
strong. His successor will have big shoes to fill as MCK continues on
its path to recovery over the next few years.
Colin Sim
Chairman
18 February 2022
Beast & Butterflies Bar,
M Social Auckland
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CDL Investments New Zealand Limited (“CDLI”)
CDLI continued to meet strong demand for its residential sections in
2021 and recorded an operating profit after tax for the year ended 31
December 2021 of $31.3 million (2020: $30.1 million).
CDLI has maintained its dividend at 3.5 cents per share and MCK’s
Board has resolved to take its CDLI dividend in cash when it is paid in
May. Given that CDLI’s profitability and dividend will assist MCK’s
overall results in 2022, MCK is assured that CDI is sufficiently
resourced to allow it to continue its sales and development activities
in 2022 and that the decision by MCK to take its dividend in cash will
not affect CDI’s position.
Australia Update
In 2021, a total of ten apartments were sold at the Zenith Residences in
Sydney. This was slightly below expectations given market conditions
in Australia. MCK will continue to market its Zenith Residences for
sale but will adjust its selling strategy given continued strong interest
in residential property in Australia.
Dividend Announcement
MCK’s Board has resolved to declare and pay all shareholders a
fully imputed dividend of 3.5 cents per share for 2021. The dividend,
payable to all shareholders, will be paid on 13 May 2022 with a
record date of 6 May 2022. The dividend is modest and reflects the
overall profit made in 2021 but also allows MCK to retain and deploy
additional funds for its ongoing refurbishment and upgrade capital
works in 2022 in preparation for 2023 and beyond.
Outlook
The current state of business will continue as long as the pandemic
continues to stifle international travel. Those issues are completely
outside MCK’s control and it is already clear that 2022 will be another
difficult year. If we have some cause to be optimistic for the second
half of the year, it is that vaccination rates in key markets remain high
and vaccination mandates for travel have become the norm. This
should, we hope, allow some level of international travel to New
Zealand to resume in 2022.
The announcements made by the New Zealand Government on
3 February confirming the step plan to reopen the international
borders starting from late February 2022 are good news for Kiwis
looking to return home this year. However, because all of the steps
currently require a period of self-isolation for everyone entering New
Zealand regardless of origin, we believe that international visitors
will choose destinations other than New Zealand which do not have
such requirements. As the plan also assumes that the international
border will reopen to all non-New Zealand or Australian visitors from
October, we do not expect to see a material boost in visitor numbers
or to our revenue this year even if the timeline is brought forward.
The current low occupancy and domestic orientated environment will
continue for most, if not all, of this year. We are looking at a half year
of break-even results for H1 2022 for the hotel operations, but expect
our property development activities to continue with their positive
momentum throughout 2022. We will continue to take the opportunity
to progressively upgrade and refurbish our hotels across out network
in anticipation of better times in 2023 and 2024.
The advantage we have now is that we know the effect of the last two
years on our operations and our business. We are able to scale back
quickly if we need to should the current trading situation continue
longer than anticipated. But we are also looking to scale up our
operations where demand warrants it and will compete for talent and
resources purposefully to ensure that we remain a leader in the New
Zealand accommodation markets.
2022 will also see the conclusion of our Managing Director BK Chiu’s
time with the group. On behalf of the Board, I would like to take
this opportunity to thank BK for his tireless efforts over the course
of over sixteen-plus years with MCK and CDI which has seen the
group through many difficult challenges including this pandemic. His
significant contribution and leadership has ensured that MCK remains
strong. His successor will have big shoes to fill as MCK continues on
its path to recovery over the next few years.
Colin Sim
Chairman
18 February 2022
Beast & Butterflies Bar,
M Social Auckland
5 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
DOING OUR BIT
Bringing kiwis home since the startBringing kiwis home since the start
of the Pandemicof the Pandemic
Over the last two years, Grand Millennium Auckland and
M Social Auckland have been acting as two of New Zealand’s
managed isolation facilities since the start of the pandemic. As the
requirement for managed isolation facilities starts to wind down, we
thought that we should take a moment to recognise the work done by
the teams at both of these hotels:
“Whatever your views on managed isolation over the past two
years, there is no question that our teams at both Grand Millennium
Auckland and M Social Auckland have done some remarkable
work dealing with thousands of returnees over the last two years.
Implementing rapidly changing regulations and requirement as well
as managing behaviour of difficult guests have added pressure and
hardship to our employees and their families. They have responded
well and should be very proud of their work”, said MCK’s
Managing Director Mr. BK Chiu.
At Grand Millennium Auckland, the teams there have used their
imagination to ensure that returnees were able to get some exercise
while respecting social distancing. Vice President Ken Orr who was
the General Manager of Grand Millennium Auckland at the start of
the pandemic noted that the hotel’s outside pool area had garnered
a lot of action on social media. “The size and facilities of the hotel
like the unused carpark, pool and conference spaces were handy and
became the best known parts of the hotel,” he said.
At M Social Auckland, the kitchen team at Beast and Butterflies
challenged themselves to keep the food offerings interesting for
everyone who came through the hotel. General Manager Nigel
Edwards noted that when managed isolation started, it was clear that
one of the biggest complaints that returnees had was about the food
they were getting.
“We were monitoring social media posts and other sources and it
was pretty obvious that if people were not getting something tasty
and satisfying every day, that they would complain about it. So
the challenge our Beasts & Butterflies food & beverage teams we
set ourselves was to keep things that people were happy to eat
and would be something to look forward to and I believe that we
succeeded, if not exceeded expectations”, he said.
The work of all of New Zealand’s managed isolation and quarantine
facilities has been recognised by the Government as being
“phenomenal” and by hundreds of Kiwis who have stayed at the two
hotels over the past two years and who have left wonderfully kind
and positive comments for our staff. We would like to offer our
sincerest thanks to all of our employees at both hotels over the past
two years who have worked so hard to keep Kiwis safe during some
of the most difficult days.
Left and Middle
Preparing M Social’s Labour weekend’s in-room picnic hamper
Right
Easter treat boxes given to guests at Grand Millennium Auckland
kitchen boxes msocial hampers
5 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | 6
PAINTING THE TOWN GREY
Fifth conversion Fifth conversion
of a Kingsgateof a Kingsgate
Jimmy Cook’s Kiwi Kitchen Restaurant
A new start. A new brand.
Copthorne Hotel Greymouth is now open.
The West Coast has certainly had its challenges over the years and
the pandemic has left its mark, so it is great to have a reason to
celebrate. After extensive refurbishment, on Tuesday 1st March the
Kingsgate Hotel Greymouth reopens its doors and has been upgraded
to Copthorne Hotel Greymouth.
The West Coasters are a strong, hardy and loyal community and
Millennium Hotel and Resorts are proud to have reinvested back into
the region and its people, as this unique stand up hotel has strong
links and history with the township and its locals. The refurbished
53 room hotel includes 1 suite and 5 disabled rooms, with all the
well-appointed accommodation rooms featuring fresh, crisp décor,
high speed internet and views from every room. The ground floor
has been completely redone and showcases the first of Millennium
Hotels and Resorts rebranded signature restaurants: Jimmy Cook’s
Kiwi Kitchen. Here the local produce is the hero, combined
with the indigenous flavours of Aotearoa New Zealand; to bring
you a delicious seasonal dining experience in a friendly, relaxed
environment.
Accessible Queen Room
The new look Jimmy Cook’s has a unique feel, lush velvets,
oversized lounging chairs and warm wood. With hues and textures
inspired by the West Coast, pendants in pounamu green, tactile
woven wallpaper, and accents of gold in a nod to the gold rush era,
creating a sophisticated, understated elegance. You feel like you have
finally been allowed into your flash Aunties ‘front room’ – the one
with the fancy chairs, reserved for special occasions and guests. A
little bit classy, but not too flash, you can relax and enjoy a gin and
tonic served from the gin trolley, order a beer at the leaner or pull
up a stool by the bar for a chat with Graham Collings, the General
Manager, who has seen the refurbishment from start to finish. Even
the new menu has the locals sitting up to take notice. The creative
and clever use of local product, simple and flavorsome dishes that
the local West Coast suppliers are so proud to be part of. From a
satisfying three course, dinner to tasty light meals or snacks bursting
with flavour, served for solo guests or groups, travellers or locals.
5 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | 6
PAINTING THE TOWN GREY
Fifth conversion Fifth conversion
of a Kingsgateof a Kingsgate
Jimmy Cook’s Kiwi Kitchen Restaurant
A new start. A new brand.
Copthorne Hotel Greymouth is now open.
The West Coast has certainly had its challenges over the years and
the pandemic has left its mark, so it is great to have a reason to
celebrate. After extensive refurbishment, on Tuesday 1st March the
Kingsgate Hotel Greymouth reopens its doors and has been upgraded
to Copthorne Hotel Greymouth.
The West Coasters are a strong, hardy and loyal community and
Millennium Hotel and Resorts are proud to have reinvested back into
the region and its people, as this unique stand up hotel has strong
links and history with the township and its locals. The refurbished
53 room hotel includes 1 suite and 5 disabled rooms, with all the
well-appointed accommodation rooms featuring fresh, crisp décor,
high speed internet and views from every room. The ground floor
has been completely redone and showcases the first of Millennium
Hotels and Resorts rebranded signature restaurants: Jimmy Cook’s
Kiwi Kitchen. Here the local produce is the hero, combined
with the indigenous flavours of Aotearoa New Zealand; to bring
you a delicious seasonal dining experience in a friendly, relaxed
environment.
Accessible Queen Room
The new look Jimmy Cook’s has a unique feel, lush velvets,
oversized lounging chairs and warm wood. With hues and textures
inspired by the West Coast, pendants in pounamu green, tactile
woven wallpaper, and accents of gold in a nod to the gold rush era,
creating a sophisticated, understated elegance. You feel like you have
finally been allowed into your flash Aunties ‘front room’ – the one
with the fancy chairs, reserved for special occasions and guests. A
little bit classy, but not too flash, you can relax and enjoy a gin and
tonic served from the gin trolley, order a beer at the leaner or pull
up a stool by the bar for a chat with Graham Collings, the General
Manager, who has seen the refurbishment from start to finish. Even
the new menu has the locals sitting up to take notice. The creative
and clever use of local product, simple and flavorsome dishes that
the local West Coast suppliers are so proud to be part of. From a
satisfying three course, dinner to tasty light meals or snacks bursting
with flavour, served for solo guests or groups, travellers or locals.
PROJECT ISLAND SONGBIRD
BAY OF ISLANDS
Project SongbirdProject Songbird
Copthorne Hotel and Resort Bay of Islands is
a proud sponsor of Project Island Songbird,
that is reintroducting native species of birds,
helping the islands sing again.
7 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
Right
New Zealand Tui
Top Right
New Zealand Bellbird
Below
From left: Ingrid Edmonds, HR Advisor; Aroha Matthews,
Operations Manager, Copthorne Hotel Bay of Islands at
the hotel’s gallery of birds by Darren Markin.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | 8
Project WingspanProject Wingspan
Above
Wingspan Centre trainer Ms Heidi Stook (right),
Ms Jolene Gray (left) Executive Assistant
Millennium Hotel Rotorua
Right
Millennium’s adopted Karearea (New Zealand Falcon),
Hiwi, named after a star in the Matariki cluster.
Millennium Hotel Rotorua has been a keen supporter of Wingspan
Birds of Prey Trust since 2009, when the hotel first took on
sponsorship of Millie the New Zealand falcon (named after
‘Millennium Falcon’ for the Star Wars fans!).
Over the years, our staff have been very attached to Millie, visiting
her at Wingspan’s headquarters and watching her flying display.
We were all saddened to hear that the Wingspan team had to make a
hard decision regarding Millie, who was born in October 2006, due
to deteriorating eyesight and old age.
However, the fantastic news is that the we were given the
opportunity to take a new Falcon chick under our wing. She is a five-
month old New Zealand falcon (or Karearea in the Maori language),
which is the country’s most threatened bird of prey.
We held a naming competition on our Facebook, which saw over 200
beautiful, inspirational, and some really funny name suggestions.
The inspiration for Hiwa’s name came from a suggestion from a
Facebook user who suggested the name ‘Starr’. We thought naming
her after a star was a great idea, especially as New Zealand enters the
season of Matariki.
Matariki is the Maori name for a star cluster known as the Pleiades,
and the first rising of the cluster (typically in late May or early June)
symbolises the start of a new year in Maori culture. Hiwa-i-te-rangi
is the Maori name for the star Celaeno, and Maoris would send their
dreams and desires for the year to this star in hopes that they would
be realised.
We’re happy to have Hiwa in our Millennium Hotel Rotorua family!
7 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | 8
Project WingspanProject Wingspan
Above
Wingspan Centre trainer Ms Heidi Stook (right),
Ms Jolene Gray (left) Executive Assistant
Millennium Hotel Rotorua
Right
Millennium’s adopted Karearea (New Zealand Falcon),
Hiwi, named after a star in the Matariki cluster.
Millennium Hotel Rotorua has been a keen supporter of Wingspan
Birds of Prey Trust since 2009, when the hotel first took on
sponsorship of Millie the New Zealand falcon (named after
‘Millennium Falcon’ for the Star Wars fans!).
Over the years, our staff have been very attached to Millie, visiting
her at Wingspan’s headquarters and watching her flying display.
We were all saddened to hear that the Wingspan team had to make a
hard decision regarding Millie, who was born in October 2006, due
to deteriorating eyesight and old age.
However, the fantastic news is that the we were given the
opportunity to take a new Falcon chick under our wing. She is a five-
month old New Zealand falcon (or Karearea in the Maori language),
which is the country’s most threatened bird of prey.
We held a naming competition on our Facebook, which saw over 200
beautiful, inspirational, and some really funny name suggestions.
The inspiration for Hiwa’s name came from a suggestion from a
Facebook user who suggested the name ‘Starr’. We thought naming
her after a star was a great idea, especially as New Zealand enters the
season of Matariki.
Matariki is the Maori name for a star cluster known as the Pleiades,
and the first rising of the cluster (typically in late May or early June)
symbolises the start of a new year in Maori culture. Hiwa-i-te-rangi
is the Maori name for the star Celaeno, and Maoris would send their
dreams and desires for the year to this star in hopes that they would
be realised.
We’re happy to have Hiwa in our Millennium Hotel Rotorua family!
7 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
9 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
DIRECTOR PROFILES
COLIN SIM Chairman & Independent Director
Mr. Sim is the executive chairman of the East Quarter Group
of companies (East Quarter Hurstville, EQ Projects and EQ
Constructions) (EQ) in Australia. EQ is involved in the development
and construction of residential, commercial and industrial projects
across New South Wales. Mr. Sim is also an executive director of
Waterbrook Lifestyle Resorts (Waterbrook); an award-winning
creator, developer and operator or luxury resort lifestyles for retirees.
Mr Sim has strong analytical skills and extensive experience in
construction and property development/investment in Australia. He
studied Mechanical Engineering in London and has lived in Sydney,
Australia for the last 40 years.
Mr. Sim was appointed to the Board in July 2017 and was elected to
the Board at the 2021 Annual Meeting of shareholders.
B K CHIU Managing Director
Mr. Chiu is also the Managing Director of CDL Investments New
Zealand Limited. Prior to joining the company, Mr. Chiu was
Regional Vice - President and Managing Director, Asia of Merisant
Company. He holds a Masters degree in agricultural economics and
marketing from Massey University, Palmerston North.
Mr. Chiu was appointed as Managing Director in 2005 and was last
re-elected to the Board at the 2020 annual meeting of shareholders.
MCK announced in November 2021 that he would be leaving the
company in July 2022.
EIK SHENG KWEK Non-Executive Director
Mr. Kwek is currently the Group Chief Operating Officer of City
Developments Limited (“CDL”) having previously been CDL’s
Group Chief Strategy Officer. Mr. Kwek joined CDL in 2009,
covering Business Development for overseas projects before being
appointed as Head of Corporate Development. He was appointed as
Chief Strategy Officer in 2014 and was additionally appointed Head,
Asset Management in April 2016. Prior to joining CDL, he was with
the Hong Leong Group of companies in Singapore specialising in
corporate finance roles since 2006.
He is also Executive Director of Millennium & Copthorne Hotels
Limited, previously listed on the London Stock Exchange as
Millennium & Copthorne Hotels plc. He holds a Bachelor of
Engineering in Electrical and Electronics Engineering from Imperial
College of Science, Technology and Medicine and a Master of
Philosophy in Finance from Judge Business School, Cambridge
University.
Mr. Kwek was appointed to the Board on 1 January 2020 and was
elected by shareholders at the 2020 annual meeting of shareholders.
KEVIN HANGCHI Non-Executive Director
Mr. Hangchi is currently Senior Vice President, Hong Leong
Management Services Pte. Limited. He has global transactional
experience across many of the Hong Leong Group’s entities including
listings and public offerings, mergers and acquisitions as well as
capital markets issuances and banking facilities. Mr. Hangchi has
been called to the English and Singaporean bars and holds an honours
degree in Accountancy and Law from the University of Southampton.
Mr. Hangchi was appointed to the Board in 2016 and was last
re-elected to the Board at the 2021 annual meeting of shareholders.
GRAHAM MCKENZIE Independent Director,
Member of the Audit Committee
Mr. McKenzie is a Barrister and Solicitor with over thirty years
experience in corporate and commercial law and is a former Partner
and Consultant to Bell Gully, a leading New Zealand law firm. He
is currently a member of the New Zealand Law Society Disciplinary
Tribunal. Mr. McKenzie is a member of the New Zealand Law
Society and the Queensland Law Society, Australia and holds a
Bachelor of Laws degree from Victoria University, Wellington and
a Master of Laws degree from Warwick University, England. Mr.
McKenzie was a Director of CDL Investments New Zealand Limited
from 2005 to 2006.
Mr. McKenzie was appointed to the Board in 2006 and was last
re-elected to the Board at the 2019 annual meeting of shareholders.
LESLIE PRESTON Independent Director,
Chair of the Audit Committee
Leslie Preston was appointed to the Board in February 2021. Ms.
Preston founded Bachcare Holiday Homes (“Bachcare”) in 2003
and was CEO and a director until 2020. Under her leadership
Bachcare grew to become the leading full-service holiday home rental
management company in New Zealand and was named one of The
World’s Top 20 Vacation Rental Companies in 2019.
Ms. Preston hails from New York and has worked for KPMG Peat
Marwick and Bankers Trust in the United States and for Boston
Consulting Group and BellSouth / Vodafone in New Zealand. Her
senior management experience has included roles in marketing,
customer and corporate operations as well as business strategy.
She holds an MBA from Stanford University Graduate School of
Business and a BA (Cum Laude) from Franklin and Marshall College,
Pennsylvania.
Ms. Preston was appointed in 2021 and was elected to the Board at the
2021 annual meeting of shareholders.
9 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
HOTEL OWNERSHIP
MILLENNIUM &
COPTHORNE HOTELS
NEW ZEALAND LIMITED
OWNED
Millennium Hotel New Plymouth
Waterfront
Millennium Hotel Rotorua
M Social Auckland
Copthorne Hotel & Resort Bay of
Islands (49%)
Copthorne Hotel & Resort Queenstown
Lakefront
Copthorne Hotel Greymouth
Kingsgate Hotel Te Anau
QUANTUM LIMITED
OWNED
Millennium Hotel Queenstown
Copthorne Hotel Auckland City
Copthorne Hotel Rotorua
Copthorne Hotel Palmerston North
Copthorne Hotel Wellington Oriental Bay
Copthorne Hotel & Apartments
Queenstown Lakeview
Kingsgate Hotel Dunedin
FRANCHISED
Millennium Hotel & Resort
Manuels Taupo
Copthorne Hotel & Resort Solway
Park Wairarapa
Kingsgate Hotel The Avenue
Wanganui
MANAGED
Grand Millennium Auckland
Kingsgate Hotel Autolodge Paihia
HOSPITALITY
SERVICES LIMITED
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | 10
Greymouth Clock Tower at Dusk
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | 9
9 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
HOTEL OWNERSHIP
MILLENNIUM &
COPTHORNE HOTELS
NEW ZEALAND LIMITED
OWNED
Millennium Hotel New Plymouth
Waterfront
Millennium Hotel Rotorua
M Social Auckland
Copthorne Hotel & Resort Bay of
Islands (49%)
Copthorne Hotel & Resort Queenstown
Lakefront
Copthorne Hotel Greymouth
Kingsgate Hotel Te Anau
QUANTUM LIMITED
OWNED
Millennium Hotel Queenstown
Copthorne Hotel Auckland City
Copthorne Hotel Rotorua
Copthorne Hotel Palmerston North
Copthorne Hotel Wellington Oriental Bay
Copthorne Hotel & Apartments
Queenstown Lakeview
Kingsgate Hotel Dunedin
FRANCHISED
Millennium Hotel & Resort
Manuels Taupo
Copthorne Hotel & Resort Solway
Park Wairarapa
Kingsgate Hotel The Avenue
Wanganui
MANAGED
Grand Millennium Auckland
Kingsgate Hotel Autolodge Paihia
HOSPITALITY
SERVICES LIMITED
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | 10
Greymouth Clock Tower at Dusk
11 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
MILLENNIUM HOTELS & RESORTS
IN NEW ZEALAND
M COLLECTION
M Social Auckland
196 - 200 Quay Street, Auckland
Phone +64 9 377 0349
msocial.auckland@millenniumhotels.com
Copthorne Hotel & Resort Bay of Islands
Tau Henare Drive, Paihia
P +64 9 402 7411 F +64 9 402 8200
copthorne.bayofislands@millenniumhotels.co.nz
Copthorne Hotel Auckland City
150 Anzac Avenue, Auckland
P +64 9 379 8509 F +64 9 379 8582
copthorne.aucklandcity@millenniumhotels.co.nz
Copthorne Hotel Rotorua
Fenton Street, Rotorua
P +64 7 348 0199 F +64 7 346 1973
copthorne.rotorua@millenniumhotels.co.nz
Copthorne Hotel Palmerston North
110 Fitzherbert Avenue, Palmerston North
P +64 6 356 8059 F +64 6 356 8604
copthorne.palmerston@millenniumhotels.co.nz
Copthorne Hotel & Resort
Solway Park Wairarapa
High Street, South Masterton
P +64 6 370 0500 F +64 6 370 0501
reservations@solway.co.nz
Copthorne Hotel Wellington Oriental Bay
100 Oriental Parade, Wellington
P +64 4 385 0279 F +64 4 384 5324
copthorne.orientalbay@millenniumhotels.co.nz
Copthorne Hotel & Resort
Queenstown Lakefront
Cnr Adelaide Street and Frankton Road, Queenstown
P +64 3 450 0260 F +64 3 442 7472
copthorne.lakefront@millenniumhotels.co.nz
Copthorne Hotel & Apartments Queenstown
Lakeview
88 Frankton Road, Queenstown
P +64 3 442 7950 F +64 3 442 8066
copthorne.lakeview@millenniumhotels.co.nz
Copthorne Hotel Greymouth
32 Mawhera Quay, Greymouth
P +64 3 768 5085 F +64 3 768 5844
copthorne.greymouth@millenniumhotels.co.nz
Kingsgate Hotel Autolodge Paihia
Marsden Road, Paihia
P +64 9 402 7416 F +64 9 402 8348
kingsgate.paihia@millenniumhotels.co.nz
Kingsgate Hotel The Avenue Wanganui
379 Victoria Avenue, Wanganui
P +64 6 349 0044 F +64 6 345 3250
kingsgate.wanganui@millenniumhotelsco.nz
Kingsgate Hotel Te Anau
20 Lakefront Drive, Te Anau
P +64 3 249 7421 F +64 3 249 8037
kingsgate.teanau@millenniumhotels.co.nz
Kingsgate Hotel Dunedin
10 Smith Street, Dunedin
P +64 3 477 6784 F +64 3 474 0115
kingsgate.dunedin@millenniumhotels.co.nz
Grand Millennium Auckland
71 Mayoral Drive, Auckland
P +64 9 366 3000
grandmillennium.auckland@millenniumhotels.co.nz
Millennium Hotel Rotorua
Cnr Eruera & Hinemaru Streets, Rotorua
P +64 7 347 1234 F +64 7 348 1234
millennium.rotorua@millenniumhotels.co.nz
Millennium Hotel & Resort Manuels Taupo
243 Lake Terrace, Taupo
P +64 7 378 5110 F +64 7 378 5341
millennium.taupo@millenniumhotels.co.nz
Millennium Hotel Queenstown
Cnr Frankton Road & Stanley Street, Queenstown
P +64 3 450 0150 F +64 3 441 8889
millennium.queenstown@millenniumhotels.co.nz
Millennium Hotel New Plymouth Waterfront
1 Egmont St, New Plymouth
P +64 6 769 5301 F +64 6 769 5302
millennium.newplymouth@millenniumhotels.co.nz
Image Below
Copthorne Hotel Wellington Oriental Bay
Tripadvisor Award
2021 Travelers Choice:
Copthorne Hotel Wellington, Oriental Bay
Millennium Hotel New Plymouth, Waterfront
Millennium Hotel & Resort Manuels Taupo
M Social Auckland
Grand Millennium Auckland
AUTUMN / WINTER 2021
11 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
Are you Are you
being served?being served?
2 NIGHTS S TAY
INCLUDING BREAKFAST
AND ONE $20 F&B CREDIT
2
NIGHTS
BED & BREAKFAST
FOOD & BEVERAGE
Credit IncludedCredit Included
$
30
AA
Kids
STAY FREE
*
AUTUMN / WINTER 2021
SPRING / SUMMER 2021
STARTING FROM
$
219
STARTING FROM
$
279
Popular Popular
packagespackages
Gifting made easy on
Awaytogo.co.nz
ADD A 3
RD
NIGHT INCLU. BREAKFAST FOR $99
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | 11
11 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
Are you Are you
being served?being served?
2 NIGHTS S TAY
INCLUDING BREAKFAST
AND ONE $20 F&B CREDIT
2
NIGHTS
BED & BREAKFAST
FOOD & BEVERAGE
Credit IncludedCredit Included
$
30
AA
Kids
STAY FREE
*
AUTUMN / WINTER 2021
SPRING / SUMMER 2021
STARTING FROM
$
219
STARTING FROM
$
279
Popular Popular
packagespackages
Gifting made easy on
Awaytogo.co.nz
ADD A 3
RD
NIGHT INCLU. BREAKFAST FOR $99
13 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
Financial Statements – Contents
Consolidated Income Statement FIN 1
Consolidated Statement of Comprehensive Income FIN 1
Consolidated Statement of Changes in Equity FIN 2 - 3
Consolidated Statement of Financial Position FIN 4
Consolidated Statement of Cash Flows FIN 5 - 6
Notes to the Financial Statements FIN 7 - 27
Audit Report FIN 28 - 31
Corporate Governance
Corporate Governance Statement CG 1 - 4
Regulatory Disclosures and Statutory Information – Contents
Regulatory Disclosures and Statutory Information REG 1 - 5
Left
Grand Millennium Auckland prepares
new dishes for hotel reopening in 2022.
Middle and Right
Copthorne Hotel Wellington’s One80 Restaurant,
Indian Banquet and New Zealand King Salmon dishes.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | FIN 1
FIN 1
The accompanying notes form part of, and should be read in conjunction with, these financial statements
FIN 2 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
F
IN 2
The accompanying notes form part of, and should be read in conjunction with, these financial statements
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | FIN 3
F
IN 3
The accompanying notes form part of, and should be read in conjunction with, these financial statements
FIN 4 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
FIN 4
The accompanying notes form part of, and should be read in conjunction with, these financial statements
FIN 4
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | FIN 5
FIN 5
:9
:99
:9
The accompanying notes form part of, and should be read in conjunction with, these financial statements
FIN 6 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
FIN 6
The accompanying notes form part of, and should be read in conjunction with, these financial statements
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | FIN 7
FIN 7
Notes to the Consolidated Financial Statements for the year ended 31 December 2021
•
•
•
FIN 8 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
FIN 8
Notes to the Consolidated Financial Statements for the year ended 31 December 2021
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | FIN 9
FIN 9
Notes to the Consolidated Financial Statements for the year ended 31 December 2021
•
•
•
•
(a)Operating Segments
Dollars in thousands
External revenue
48 -
Other Income – Note 1(c) 15,870 - - - - - - - 15,870 -
Earnings before interest,
depreciation
& amortisation
34 -
Finance income
- -
Finance expense
- -
Depreciation and amortisation
(70)-
Depreciation of Right-of-use
assets
- -
Profit before income tax
(36)-
Income tax expense
10 -
Income tax credit arising from
change in building
depreciation
- - - - -20,058
Profit after income tax
(26)-
Cash & cash equivalents and
short term bank deposits
- -
Other segment assets
23,332 3,325
Investment in associates
- -
Total assets
23,332 3,325
Segment liabilities
- -
Tax liabilities
- -
Total liabilities
- -
Property, plant and equipment
expenditure
- -
Investment property
expenditure
15,593 3,325
Residential land development
expenditure
- -
Purchase of land for
residential land development
FIN 9
Notes to the Consolidated Financial Statements for the year ended 31 December 2021
•
•
•
•
(a)Operating Segments
Dollars in thousands
External revenue
48 -
Other Income – Note 1(c) 15,870 - - - - - - - 15,870 -
Earnings before interest,
depreciation
& amortisation
34 -
Finance income
- -
Finance expense
- -
Depreciation and amortisation
(70)-
Depreciation of Right-of-use
assets
- -
Profit before income tax
(36)-
Income tax expense
10 -
Income tax credit arising from
change in building
depreciation
- - - - -20,058
Profit after income tax
(26)-
Cash & cash equivalents and
short term bank deposits
- -
Other segment assets
23,332 3,325
Investment in associates
- -
Total assets
23,332 3,325
Segment liabilities
- -
Tax liabilities
- -
Total liabilities
- -
Property, plant and equipment
expenditure
- -
Investment property
expenditure
15,593 3,325
Residential land development
expenditure
- -
Purchase of land for
residential land development
FIN 10 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
FIN 10
Notes to the Consolidated Financial Statements for the year ended 31 December 2021
•
•
Other Income – Note 1(c)
Income tax credit arising from change in
building depreciation
Cash & cash equivalents and short term
bank deposits
Investment property expenditure
•
•
•
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | FIN 11
FIN 11
Notes to the Consolidated Financial Statements for the year ended 31 December 2021
FIN 12 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
FIN 12
Notes to the Consolidated Financial Statements for the year ended 31 December 2021
M
M
M
8
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | FIN 13
FIN 13
Notes to the Consolidated Financial Statements for the year ended 31 December 2021
FIN 14 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
FIN 14
Notes to the Consolidated Financial Statements for the year ended 31 December 2021
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | FIN 15
FIN 15
Notes to the Consolidated Financial Statements for the year ended 31 December 2021
FIN 16 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
FIN 16
Notes to the Consolidated Financial Statements for the year ended 31 December 2021
•
•
•
•
•
•
•
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | FIN 17
FIN 17
Notes to the Consolidated Financial Statements for the year ended 31 December 2021
FIN 18 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
FIN 18
Notes to the Consolidated Financial Statements for the year ended 31 December 2021
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | FIN 19
FIN 19
Notes to the Consolidated Financial Statements for the year ended 31 December 2021
FIN 20 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
FIN 20
Notes to the Consolidated Financial Statements for the year ended 31 December 2021
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | FIN 21
FIN 21
Notes to the Consolidated Financial Statements for the year ended 31 December 2021
FIN 22 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
FIN 22
Notes to the Consolidated Financial Statements for the year ended 31 December 2021
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | FIN 23
FIN 23
Notes to the Consolidated Financial Statements for the year ended 31 December 2021
FIN 24 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
FIN 24
Notes to the Consolidated Financial Statements for the year ended 31 December 2021
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | FIN 25
FIN 25
Notes to the Consolidated Financial Statements for the year ended 31 December 2021
•
•
•
•
•
•
•
•
•
•
FIN 26 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
FIN 26
Notes to the Consolidated Financial Statements for the year ended 31 December 2021
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | FIN 27
FIN 27
Notes to the Consolidated Financial Statements for the year ended 31 December 2021
FIN 28 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
© 2022 KPMG, a New Zealand Partnership and a member firm of the KPMG global organisation of
independent member firms affiliated with KPMG International Limited, a private English company
limited by guarantee. All rights reserved.
Independent Auditor’s Report
To the shareholders of Millennium & Copthorne Hotels New Zealand Limited
Report on the audit of the consolidated financial statements
Opinion
In our opinion, the accompanying consolidated
financial statements of Millennium & Copthorne
Hotels New Zealand Limited (the ’company’) and its
subsidiaries (the 'group') on pages 1 to 27:
i. present fairly in all material respects the
Group’s financial position as at 31 December
2021 and its financial performance and cash
flows for the year ended on that date; and
ii. comply with New Zealand Equivalents to
International Financial Reporting Standards and
International Financial Reporting Standards.
We have audited the accompanying consolidated
financial statements which comprise:
— the consolidated statement of financial position
as at 31 December 2021;
— the consolidated income statement,
statements of comprehensive income, changes
in equity and cash flows for the year then
ended; and
— notes, including a summary of significant
accounting policies and other explanatory
information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the group in accordance with Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (Including International Independence Standards) (New Zealand) issued by the
New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International Independence
Standards) (‘IESBA Code’), and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the IESBA Code.
Our responsibilities under ISAs (NZ) are further described in the auditor’s responsibilities for the audit of the
consolidated financial statements section of our report.
Our firm has also provided other services to the group in relation to taxation compliance and taxation advisory.
Subject to certain restrictions, partners and employees of our firm may also deal with the group on normal terms
within the ordinary course of trading activities of the business of the group. These matters have not impaired our
independence as auditor of the group. The firm has no other relationship with, or interest in, the group.
Materiality
The scope of our audit was influenced by our application of materiality. Materiality helped us to determine the
nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually
and on the consolidated financial statements as a whole. The materiality for the consolidated financial
statements as a whole was set at $4 million determined with reference to a benchmark of group’s total assets.
We chose the benchmark because, in our view, this is a key measure of the group’s performance.
© 2022 KPMG, a New Zealand Partnership and a member firm of the KPMG global organisation of
independent member firms affiliated with KPMG International Limited, a private English company
limited by guarantee. All rights reserved.
Independent Auditor’s Report
To the shareholders of Millennium & Copthorne Hotels New Zealand Limited
Report on the audit of the consolidated financial statements
Opinion
In our opinion, the accompanying consolidated
financial statements of Millennium & Copthorne
Hotels New Zealand Limited (the ’company’) and its
subsidiaries (the 'group') on pages 1 to 27:
i. present fairly in all material respects the
Group’s financial position as at 31 December
2021 and its financial performance and cash
flows for the year ended on that date; and
ii. comply with New Zealand Equivalents to
International Financial Reporting Standards and
International Financial Reporting Standards.
We have audited the accompanying consolidated
financial statements which comprise:
— the consolidated statement of financial position
as at 31 December 2021;
— the consolidated income statement,
statements of comprehensive income, changes
in equity and cash flows for the year then
ended; and
— notes, including a summary of significant
accounting policies and other explanatory
information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the group in accordance with Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (Including International Independence Standards) (New Zealand) issued by the
New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International Independence
Standards) (‘IESBA Code’), and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the IESBA Code.
Our responsibilities under ISAs (NZ) are further described in the auditor’s responsibilities for the audit of the
consolidated financial statements section of our report.
Our firm has also provided other services to the group in relation to taxation compliance and taxation advisory.
Subject to certain restrictions, partners and employees of our firm may also deal with the group on normal terms
within the ordinary course of trading activities of the business of the group. These matters have not impaired our
independence as auditor of the group. The firm has no other relationship with, or interest in, the group.
Materiality
The scope of our audit was influenced by our application of materiality. Materiality helped us to determine the
nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually
and on the consolidated financial statements as a whole. The materiality for the consolidated financial
statements as a whole was set at $4 million determined with reference to a benchmark of group’s total assets.
We chose the benchmark because, in our view, this is a key measure of the group’s performance.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | FIN 29
2
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the consolidated financial statements in the current period. We summarise below those matters and our key
audit procedures to address those matters in order that the shareholders as a body may better understand the
process by which we arrived at our audit opinion. Our procedures were undertaken in the context of and solely
for the purpose of our statutory audit opinion on the consolidated financial statements as a whole and we do not
express discrete opinions on separate elements of the consolidated financial statements
The key audit matter How the matter was addressed in our audit
Change in accounting policy – Measurement of Hotel Land and Buildings
Refer to note 25 of the consolidated financial
statements.
The Group has changed its accounting policy
to recognise hotel land and buildings assets
at their original cost less depreciation and
impairment as it is a reliable and more
relevant measure of the underlying financial
position and financial performance of the
Group. This presentation also aligns to the
accounting policy of the groups ultimate
parent. These assets have previously been
recognised at their fair value since the Group
adopted NZ IFRS in 2004.
The change in accounting policy required
restatement of the carrying values of hotel
land and building assets, reversal of
revaluation adjustments and related deferred
taxation to present the assets as if they had
always been recognised under the cost
approach in accordance with NZ IAS 36.
These adjustments required the creation of
new fixed asset registers by management
from 2004 through to 2020, and materially
impacted the financial position and financial
performance of the Group in each of these
financial years. The net assets of the Group
reduced from $807 million to $524 million as
at 1 January 2020.
We focused on the restatement of the hotel
land and building assets due to the magnitude
of the impact of the restatement on the
consolidated financial statements, the large
number of material adjustments required and
complexity of recreating accounting registers
and records from 2004.
We performed the following procedures over the restatement
of hotel land and buildings:
− Evaluated the overall approach and sources of
information used for the creation of the fixed asset
registers applying the cost approach.
− Reconciled the fixed asset registers to the closing cost
and accumulated depreciation recorded in the audited
statutory financial statements of the Group as at 31
December 2004.
− Reconciled the cost of additions recorded in the fixed
asset registers from 1 January 2005 to 31 December
2020 to the audited statutory financial statements issued
in each of these years.
− Recalculated accumulated depreciation recognised in the
fixed asset registers based on the cost of each asset and
its date put into use for the period from 31 December
2004 to 31 December 2020.
−
Recalculated the carrying value of hotel land and buildings
recognised in the fixed asset registers.
− Recalculated the carrying value of material asset
disposals between 1 January 2005 and 31 December
2020 applying the cost approach and assessed whether
the correct amount of cost and accumulated depreciation
was removed from the fixed asset registers.
− Assessed the reasonableness of depreciation expense
for the 2020 financial year.
− Reconciled the fixed asset registers to the proper
ty, plant
equipment and restatement note disclosures in the
consolidated financial statements and assessed whether
restatement adjustments were appropriate.
− Reviewed the restatement disclosure in the consolidated
financial statements and assessed whether it was in
accordance with the requirements of NZ IAS 8.
Our testing concluded the restatement of the consolidated
financial statements to recognise the hotel land and buildings
at cost to be appropriate.
FIN 30 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
3
Other information
The Directors, on behalf of the group, are responsible for the other information included in the entity’s Annual
Report. Other information includes the Chairman’s Review, Managing Director’s Review, disclosures relating to
corporate governance, the financial summary and the other information included in the Annual Report. Our
opinion on the consolidated financial statements does not cover any other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
consolidated financial statements or our knowledge obtained in the audit or otherwise appears materially
misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have received the Chairman’s review and have nothing
to report in regards to it. The Annual Report is expected to be made available to us after the date of this
Independent Auditor’s Report and we will report the matters identified, if any, to those charged with governance.
Use of this independent auditor’s report
This independent auditor’s report is made solely to the shareholders as a body. Our audit work has been
undertaken so that we might state to the shareholders those matters we are required to state to them in the
independent auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the shareholders as a body for our audit work, this independent
auditor’s report, or any of the opinions we have formed.
Responsibilities of the Directors for the consolidated financial
statements
The Directors, on behalf of the company, are responsible for:
— the preparation and fair presentation of the consolidated financial statements in accordance with generally
accepted accounting practice in New Zealand (being New Zealand Equivalents to International Financial
Reporting Standards) and International Financial Reporting Standards;
— implementing necessary internal control to enable the preparation of a consolidated set of financial
statements that is fairly presented and free from material misstatement, whether due to fraud or error; and
— assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless they either intend to liquidate or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial
statements
Our objective is:
— to obtain reasonable assurance about whether the consolidated financial statements as a whole are free
from material misstatement, whether due to fraud or error; and
— to issue an independent auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with ISAs NZ will always detect a material misstatement when it exists.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | FIN 31
4
Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
A further description of our responsibilities for the audit of these consolidated financial statements is located at
the External Reporting Board (XRB) website at:
http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-1/
This description forms part of our independent auditor’s report.
The engagement partner on the audit resulting in this independent auditor's report is Aaron Woolsey
For and on behalf of
KPMG
Auckland
18 February 2022
CG 1 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
13 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | CG1
Millennium & Copthorne Hotels New Zealand Limited (“MCK”) is committed to maintaining strong corporate
governance in line with best practice at all times. Our corporate governance framework and objectives complies
materially with the NZX Corporate Governance Code (the “NZX Code”) as well as the Financial Markets Authority
Corporate Governance Principles and Guidelines (the FMA Principles):
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED
CORPORATE GOVERNANCE STATEMENT
PRINCIPLE 1 – ETHICAL BEHAVIOUR
Directors should set high standards of ethical
behaviour, model this behaviour and hold
Management accountable for these standards
being followed throughout the organisation.
All of MCK’s directors are bound by the
Board’s Code of Ethics which states:
• Directors shall undertake their duties
with due care and diligence at all times
and will conduct themselves honestly
and with integrity. Directors shall not do
anything, or cause anything to be done,
which may or does bring MCK or the
Board into disrepute.
• All Directors must act in the best
interests of the company and exercise
unfettered and independent judgement.
All Directors must carry out their
duties with integrity and honesty and
participate in open and constructive
discussions.
• To the best of their ability, Directors will
use reasonable endeavours to ensure
that MCK’s records and documents
(including its financial reports) are
true and complete and comply with
the requisite reporting standards and
controls.
• So that the Board may determine a
Director’s independence and to ensure
that there are no conflicts of interest,
all Directors shall promptly disclose
all relevant business and / or personal
interests they may have to the Board
forthwith as well as any relationships
they may have with MCK.
• All Directors shall ensure that they do
not support any organisation other than
in a personal capacity without the prior
written approval of the Chairman.
• Directors shall not accept any gifts or
personal benefits from external parties
if it could be perceived that this could
compromise or influence any decision by
the Board or by MCK.
• All Directors shall maintain and protect
the confidentiality of all information
about MCK at all times except where
disclosure is permitted or required by
law.
• All Directors shall ensure that they do
not use company information and /
or property for personal gain or profit.
All Directors shall use and / or retain
company information and property only
for business purposes in their capacity
as Directors of MCK or to meet legal
obligations.
• All Directors shall comply with the laws
and regulations that apply to MCK.
• All Directors shall immediately report
any illegal or unethical behaviour
of which they become aware to the
Chairman of the Board and to the
Chairman of the Audit Committee.
All of MCK’s employees are expected to act
in the best interests of MCK and to enhance
the reputation of the company. MCK also has
a number of operational policies which must
be followed by employees and the MCK Code
of Conduct forms part of each employee’s
employment agreement
.
MCK also believes in fair dealing with its
customers and suppliers, shareholders,
employees and other stakeholders and
external third parties.
MCK revised its Share Trading Policy in 2022
which applies to Directors and Officers. It
also has a global Whistleblowing Policy which
extends to all management and employees.
The Whistleblowing Policy facilitates the
disclosure and impartial investigation of any
serious wrongdoing. This policy advises
employees of their right to disclose serious
wrongdoing, and sets out the Company’s
internal procedures for receiving and
dealing with such disclosures. The policy is
consistent with, and facilitates, the Protected
Disclosures Act 2000 and is supported by
the Board.
PRINCIPLE 2 – BOARD COMPOSITION AND
PERFORMANCE
To ensure an effective Board, there should be
a balance of independence, skills, knowledge,
experience and perspectives.
MCK’s Board has responsibility, control and
oversight of the business activities, strategic
direction and the governance of MCK and
its subsidiary companies. It looks at how
the company is operating, how risk and
compliance are managed, approving financial
and other reports and capital expenditure
and reporting to MCK’s shareholders. The
Board approves MCK’s budgets and business
plans as well as significant projects and has
statutory obligations for other matters such
as the payments of dividends and the issue of
shares. The Board is accountable to MCK’s
shareholders for the company’s performance.
Certain powers are delegated to Board
Committees and Subcommittees. The role of
the Committees is detailed under Principle 3.
Day-to-day management is delegated to the
Managing Director and senior management.
The levels of authority are approved by way
of a Delegated Authorities Manual which
is reviewed by the Audit Committee and
ultimately approved by the Board.
Appointments to the Board are considered by
the Board and the Board takes into account
the skills required to allow it to carry out its
functions and governance role. The Board
does not impose a restriction on the tenure
of any Director as it considers that such a
restriction may lead to the loss of experience
and expertise from the Board.
MCK’s Constitution specifies a minimum
number of three directors and a maximum
number of nine directors at any one time.
Two directors must ordinarily be living in New
Zealand. In line with the NZX Main Board
Listing Rules, MCK is required to have at
least two Independent Directors. Currently,
MCK has determined that its Chair Colin Sim,
Graham McKenzie and Leslie Preston are
Independent Directors as none of them have
a Disqualifying Relationship (as that term is
defined in the NZX Main Board Listing Rules)
or Substantial Product Holders. Messrs Chiu,
Hangchi and Kwek are not considered by the
Board to be Independent Directors.
Board meetings are generally held quarterly
with additional meetings convened when
required. The table below details directors’
attendances during 2021.
DirectorMeetings attended in 2021
Colin Sim (Chair)3/3
B K Chiu
(Managing
Director)
3/3
Richard Bobb*2/2
Kevin Hangchi3/3
Eik Sheng Kwek3/3
Graham McKenzie3/3
Leslie Preston**2/2
CG2 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
*Mr. Bobb retired as a director at the
conclusion of the annual meeting of
shareholders in May 2021.
**Ms. Preston was appointed as a director on
1 March 2021.
In 2021, the Board updated its Skills Matrix
to demonstrate the skills, experience and
diversity of its Board.
Skill / AttributeRelevant Director
Retail, marketing, brand
and sales experience
Chiu, Preston
Governance experience
Chiu, Hangchi, Kwek,
McKenzie, Preston,
Sim
Large enterprise /
Multinational business
or leadership experience
Chiu, Hangchi, Kwek,
Preston, Sim
Accounting / Finance /
Tax experience
Hangchi, Kwek,
Preston
Legal or Regulatory
knowledge and
experience
Hangchi, McKenzie
Business strategy
experience
Chiu, Kwek, Preston,
Sim
Property development /
management experience
Chiu, Kwek, Sim
The Board encourages all directors to
undertake their own continuous education so
that they can perform their duties as directors
and provide maximum benefit to the Board
and to shareholders.
In 2018, MCK also adopted its own Diversity
and Inclusion Policy which is a separate
stand-alone document.
PRINCIPLE 3 – BOARD COMMITTEES
The Board should use committees where this
will enhance its effectiveness in key areas
while still retaining board responsibility.
Committees help the Board in carrying out
its responsibilities and MCK currently has
one standing committee being its Audit
Committee which is comprised solely of
Independent Directors. The current members
of the Audit Committee are Leslie Preston
(Chair), Graham McKenzie and BK Chiu.
The table below reports attendance of the
Audit Committee members during 2021:
DirectorMeetings attended in 2021
Leslie Preston*1/1
Richard Bobb**1/1
Graham McKenzie2/2
BK Chiu2/2
*Ms. Preston was appointed on 1 March 2021
and took over as Audit Committee Chair in
May 2021.
**Mr. Bobb retired as a director and as Chair
of the Audit Committee at the conclusion of
the annual meeting of shareholders in May
2021.
The Board also forms subcommittees as and
when required.
In 2020, MCK formed a Nominations
Committee (NC) comprising Messrs.
McKenzie and Chiu. The NC did not meet in
2021.
MCK formed a Remuneration Committee
(RC) in 2021 and terms of reference have
been approved by the Board. The current
members of the RC are Messrs. McKenzie
and Kwek.
The objectives of the RC are to help the Board
establish coherent remuneration policies and
practices which:
• enable the Company to attract,
retain and motivate key management
personnel and Directors (executive and
non-executive) who will create value for
shareholders;
• fairly and reasonably reward senior
management of the Company (including
executive Directors) having regard to
the performance of the Company, the
performance of senior management and
the general pay environment; and
• comply with the provisions of any
relevant legislation, the NZX Listing
Rules and any other statutory or
regulatory requirements.
The RC met formally once during the year but
also met via telephone conference several
times during the year.
The Board has not established a protocol
which sets out procedures to be followed in
the event of a takeover offer being received
by the Company. This is because the Board
considers that receipt of a takeover offer to
be a very unlikely event in light of CDL Hotels
Holdings New Zealand Limited’s long-term
majority shareholding in the Company.
MCK is also the owner of property assets
including “sensitive land” (as defined under
the Overseas Investment Act 2015) which,
if the subject of an overseas takeover offer,
would require regulatory and / or government
approvals for their acquisition.
MCK’s Board believes that the Company
would have sufficient time to adopt protocols
and procedures necessary to respond to any
such offer when received and to communicate
those to shareholders. MCK’s Board
therefore believes that it is reasonable and
appropriate for the Company not to follow
Recommendation 3.6 of the new Code at this
time but agrees with the principles behind
Recommendation 3.6.
PRINCIPLE 4 – REPORTING & DISCLOSURE
The Board should demand integrity in
financial and non-financial reporting and
in the timeliness and balance of corporate
disclosures.
As an NZX-listed entity, MCK recognises
the need to ensure that it is fully compliant
in terms of reporting and disclosure and
has in place a Continuous Disclosure Policy
(CDP) which applies to MCK, its subsidiaries
(“Group”), and all their respective directors
and employees. The Board has appointed
the Chairman, the Chairman of the Audit
Committee, the Managing Director, the
Company Secretary and the Vice President
Finance to act as MCK’s Continuous
Disclosure Committee (the Disclosure
Committee). A quorum of the Disclosure
Committee shall consist of no less than three
(3) of these persons.
The Disclosure Committee is responsible for:
• Determining what information amounts
to material information and must be
disclosed;
• Determining the timing of disclosure of
any information in accordance with the
CDP;
• Approving the content of any disclosure
to NZX (including matters not directly
covered by the CDP);
• Ensuring that all employees and
directors within the Group whom the
Committee considers appropriate
receive a copy of the CDP and
appropriate training with respect to it;
• Developing mechanisms designed to
identify potential material information
(e.g. agenda item on management
meetings); and
• Liaising with legal advisers in respect of
MCK’s compliance with its continuous
disclosure obligations.
The key points from the CDP are:
¾No person may release material
information concerning MCK to any
person who is not authorised to receive
it without the approval of the Disclosure
Committee.
¾ The Board will consider at each
Board meeting whether there is any
information that may require disclosure
in accordance with the CDP, and will
note any disclosures made subsequent
to the prior meeting. Any employee or
director of MCK must inform a member
of the Disclosure Committee as soon as
practicable after that perso n becomes
aware of any material information.
¾ The CDP includes a list of incidents
which should be disclosed to a
member of the Disclosure Committee.
The Disclosure Committee must
confer, decide whether disclosure is
required, and coordinate disclosure
of any material information in a form
specified by the Listing Rules as soon as
practicable after it becomes aware of the
existence of material information, unless
it determines:
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | CG 2
13 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | CG1
Millennium & Copthorne Hotels New Zealand Limited (“MCK”) is committed to maintaining strong corporate
governance in line with best practice at all times. Our corporate governance framework and objectives complies
materially with the NZX Corporate Governance Code (the “NZX Code”) as well as the Financial Markets Authority
Corporate Governance Principles and Guidelines (the FMA Principles):
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED
CORPORATE GOVERNANCE STATEMENT
PRINCIPLE 1 – ETHICAL BEHAVIOUR
Directors should set high standards of ethical
behaviour, model this behaviour and hold
Management accountable for these standards
being followed throughout the organisation.
All of MCK’s directors are bound by the
Board’s Code of Ethics which states:
• Directors shall undertake their duties
with due care and diligence at all times
and will conduct themselves honestly
and with integrity. Directors shall not do
anything, or cause anything to be done,
which may or does bring MCK or the
Board into disrepute.
• All Directors must act in the best
interests of the company and exercise
unfettered and independent judgement.
All Directors must carry out their
duties with integrity and honesty and
participate in open and constructive
discussions.
• To the best of their ability, Directors will
use reasonable endeavours to ensure
that MCK’s records and documents
(including its financial reports) are
true and complete and comply with
the requisite reporting standards and
controls.
• So that the Board may determine a
Director’s independence and to ensure
that there are no conflicts of interest,
all Directors shall promptly disclose
all relevant business and / or personal
interests they may have to the Board
forthwith as well as any relationships
they may have with MCK.
• All Directors shall ensure that they do
not support any organisation other than
in a personal capacity without the prior
written approval of the Chairman.
• Directors shall not accept any gifts or
personal benefits from external parties
if it could be perceived that this could
compromise or influence any decision by
the Board or by MCK.
• All Directors shall maintain and protect
the confidentiality of all information
about MCK at all times except where
disclosure is permitted or required by
law.
• All Directors shall ensure that they do
not use company information and /
or property for personal gain or profit.
All Directors shall use and / or retain
company information and property only
for business purposes in their capacity
as Directors of MCK or to meet legal
obligations.
• All Directors shall comply with the laws
and regulations that apply to MCK.
• All Directors shall immediately report
any illegal or unethical behaviour
of which they become aware to the
Chairman of the Board and to the
Chairman of the Audit Committee.
All of MCK’s employees are expected to act
in the best interests of MCK and to enhance
the reputation of the company. MCK also has
a number of operational policies which must
be followed by employees and the MCK Code
of Conduct forms part of each employee’s
employment agreement
.
MCK also believes in fair dealing with its
customers and suppliers, shareholders,
employees and other stakeholders and
external third parties.
MCK revised its Share Trading Policy in 2022
which applies to Directors and Officers. It
also has a global Whistleblowing Policy which
extends to all management and employees.
The Whistleblowing Policy facilitates the
disclosure and impartial investigation of any
serious wrongdoing. This policy advises
employees of their right to disclose serious
wrongdoing, and sets out the Company’s
internal procedures for receiving and
dealing with such disclosures. The policy is
consistent with, and facilitates, the Protected
Disclosures Act 2000 and is supported by
the Board.
PRINCIPLE 2 – BOARD COMPOSITION AND
PERFORMANCE
To ensure an effective Board, there should be
a balance of independence, skills, knowledge,
experience and perspectives.
MCK’s Board has responsibility, control and
oversight of the business activities, strategic
direction and the governance of MCK and
its subsidiary companies. It looks at how
the company is operating, how risk and
compliance are managed, approving financial
and other reports and capital expenditure
and reporting to MCK’s shareholders. The
Board approves MCK’s budgets and business
plans as well as significant projects and has
statutory obligations for other matters such
as the payments of dividends and the issue of
shares. The Board is accountable to MCK’s
shareholders for the company’s performance.
Certain powers are delegated to Board
Committees and Subcommittees. The role of
the Committees is detailed under Principle 3.
Day-to-day management is delegated to the
Managing Director and senior management.
The levels of authority are approved by way
of a Delegated Authorities Manual which
is reviewed by the Audit Committee and
ultimately approved by the Board.
Appointments to the Board are considered by
the Board and the Board takes into account
the skills required to allow it to carry out its
functions and governance role. The Board
does not impose a restriction on the tenure
of any Director as it considers that such a
restriction may lead to the loss of experience
and expertise from the Board.
MCK’s Constitution specifies a minimum
number of three directors and a maximum
number of nine directors at any one time.
Two directors must ordinarily be living in New
Zealand. In line with the NZX Main Board
Listing Rules, MCK is required to have at
least two Independent Directors. Currently,
MCK has determined that its Chair Colin Sim,
Graham McKenzie and Leslie Preston are
Independent Directors as none of them have
a Disqualifying Relationship (as that term is
defined in the NZX Main Board Listing Rules)
or Substantial Product Holders. Messrs Chiu,
Hangchi and Kwek are not considered by the
Board to be Independent Directors.
Board meetings are generally held quarterly
with additional meetings convened when
required. The table below details directors’
attendances during 2021.
DirectorMeetings attended in 2021
Colin Sim (Chair)3/3
B K Chiu
(Managing
Director)
3/3
Richard Bobb*2/2
Kevin Hangchi3/3
Eik Sheng Kwek3/3
Graham McKenzie3/3
Leslie Preston**2/2
CG2 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
*Mr. Bobb retired as a director at the
conclusion of the annual meeting of
shareholders in May 2021.
**Ms. Preston was appointed as a director on
1 March 2021.
In 2021, the Board updated its Skills Matrix
to demonstrate the skills, experience and
diversity of its Board.
Skill / AttributeRelevant Director
Retail, marketing, brand
and sales experience
Chiu, Preston
Governance experience
Chiu, Hangchi, Kwek,
McKenzie, Preston,
Sim
Large enterprise /
Multinational business
or leadership experience
Chiu, Hangchi, Kwek,
Preston, Sim
Accounting / Finance /
Tax experience
Hangchi, Kwek,
Preston
Legal or Regulatory
knowledge and
experience
Hangchi, McKenzie
Business strategy
experience
Chiu, Kwek, Preston,
Sim
Property development /
management experience
Chiu, Kwek, Sim
The Board encourages all directors to
undertake their own continuous education so
that they can perform their duties as directors
and provide maximum benefit to the Board
and to shareholders.
In 2018, MCK also adopted its own Diversity
and Inclusion Policy which is a separate
stand-alone document.
PRINCIPLE 3 – BOARD COMMITTEES
The Board should use committees where this
will enhance its effectiveness in key areas
while still retaining board responsibility.
Committees help the Board in carrying out
its responsibilities and MCK currently has
one standing committee being its Audit
Committee which is comprised solely of
Independent Directors. The current members
of the Audit Committee are Leslie Preston
(Chair), Graham McKenzie and BK Chiu.
The table below reports attendance of the
Audit Committee members during 2021:
DirectorMeetings attended in 2021
Leslie Preston*1/1
Richard Bobb**1/1
Graham McKenzie2/2
BK Chiu2/2
*Ms. Preston was appointed on 1 March 2021
and took over as Audit Committee Chair in
May 2021.
**Mr. Bobb retired as a director and as Chair
of the Audit Committee at the conclusion of
the annual meeting of shareholders in May
2021.
The Board also forms subcommittees as and
when required.
In 2020, MCK formed a Nominations
Committee (NC) comprising Messrs.
McKenzie and Chiu. The NC did not meet in
2021.
MCK formed a Remuneration Committee
(RC) in 2021 and terms of reference have
been approved by the Board. The current
members of the RC are Messrs. McKenzie
and Kwek.
The objectives of the RC are to help the Board
establish coherent remuneration policies and
practices which:
• enable the Company to attract,
retain and motivate key management
personnel and Directors (executive and
non-executive) who will create value for
shareholders;
• fairly and reasonably reward senior
management of the Company (including
executive Directors) having regard to
the performance of the Company, the
performance of senior management and
the general pay environment; and
• comply with the provisions of any
relevant legislation, the NZX Listing
Rules and any other statutory or
regulatory requirements.
The RC met formally once during the year but
also met via telephone conference several
times during the year.
The Board has not established a protocol
which sets out procedures to be followed in
the event of a takeover offer being received
by the Company. This is because the Board
considers that receipt of a takeover offer to
be a very unlikely event in light of CDL Hotels
Holdings New Zealand Limited’s long-term
majority shareholding in the Company.
MCK is also the owner of property assets
including “sensitive land” (as defined under
the Overseas Investment Act 2015) which,
if the subject of an overseas takeover offer,
would require regulatory and / or government
approvals for their acquisition.
MCK’s Board believes that the Company
would have sufficient time to adopt protocols
and procedures necessary to respond to any
such offer when received and to communicate
those to shareholders. MCK’s Board
therefore believes that it is reasonable and
appropriate for the Company not to follow
Recommendation 3.6 of the new Code at this
time but agrees with the principles behind
Recommendation 3.6.
PRINCIPLE 4 – REPORTING & DISCLOSURE
The Board should demand integrity in
financial and non-financial reporting and
in the timeliness and balance of corporate
disclosures.
As an NZX-listed entity, MCK recognises
the need to ensure that it is fully compliant
in terms of reporting and disclosure and
has in place a Continuous Disclosure Policy
(CDP) which applies to MCK, its subsidiaries
(“Group”), and all their respective directors
and employees. The Board has appointed
the Chairman, the Chairman of the Audit
Committee, the Managing Director, the
Company Secretary and the Vice President
Finance to act as MCK’s Continuous
Disclosure Committee (the Disclosure
Committee). A quorum of the Disclosure
Committee shall consist of no less than three
(3) of these persons.
The Disclosure Committee is responsible for:
• Determining what information amounts
to material information and must be
disclosed;
• Determining the timing of disclosure of
any information in accordance with the
CDP;
• Approving the content of any disclosure
to NZX (including matters not directly
covered by the CDP);
• Ensuring that all employees and
directors within the Group whom the
Committee considers appropriate
receive a copy of the CDP and
appropriate training with respect to it;
• Developing mechanisms designed to
identify potential material information
(e.g. agenda item on management
meetings); and
• Liaising with legal advisers in respect of
MCK’s compliance with its continuous
disclosure obligations.
The key points from the CDP are:
¾No person may release material
information concerning MCK to any
person who is not authorised to receive
it without the approval of the Disclosure
Committee.
¾ The Board will consider at each
Board meeting whether there is any
information that may require disclosure
in accordance with the CDP, and will
note any disclosures made subsequent
to the prior meeting. Any employee or
director of MCK must inform a member
of the Disclosure Committee as soon as
practicable after that perso n becomes
aware of any material information.
¾ The CDP includes a list of incidents
which should be disclosed to a
member of the Disclosure Committee.
The Disclosure Committee must
confer, decide whether disclosure is
required, and coordinate disclosure
of any material information in a form
specified by the Listing Rules as soon as
practicable after it becomes aware of the
existence of material information, unless
it determines:
CG 3 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | CG3
CG2 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
a. a reasonable person would not expect
the information to be disclosed; and
b. the information is confidential and its
confidentiality is maintained; and
c. one or more of the following applies:
i. it would breach the law to disclose
the information; or
ii. the information concerns
an incomplete proposal or
negotiation; or
iii. the information comprises
matters of supposition or is
insufficiently definite to warrant
disclosure; or
iv. the information is generated for
internal management purposes
of MCK or its subsidiaries; or
v. the information is a trade secret.
The Disclosure Committee will ensure that
all Board members, not already aware of the
information, are promptly provided with it.
• The Disclosure Committee is
responsible for MCK’s obligations under
the Listing Rules to release material
information to NZX to the extent
necessary to prevent development or
subsistence of a market for its listed
securities which is materially influenced
by false or misleading information
emanating from the issuer or any
associated person of the issuer; or other
persons in circumstances in each case
which would give such information
substantial credibility.
• All employees of MCK, as soon as
practicable after becoming aware
of a rumour or speculation that is
“generally available to the market”, must
disclose the existence of that rumour
or speculation to a member of the
Disclosure Committee.
• The Disclosure Committee is also
responsible for co-ordinating MCK’s
responses to leaks and inadvertent
disclosures. Even in the event that
leaked or inadvertently disclosed
information is not price sensitive, the
Disclosure Committee should consider
whether the information should
be released to NZX via its market
announcement platform in order to
provide investors with equal access.
• All external communications by MCK
must comply with the CDP, any media
policy and the Company’s rules with
respect to confidential information. No
material information is to be disclosed
to such persons before it is released to
NZX.
• Slides and presentations used in
briefings should be released to NZX for
immediate release to the market.
Prior to approval and release of MCK’s half
year and full year results, the Vice President
Finance and Company Secretary are required
to provide a letter of representation to the
Board (or its nominated subcommittee) that
the financial statements have been prepared
in accordance with generally accepted
accounting practice and are correct in all
material respects.
The Continuous Disclosure Policy was
reviewed in 2019.
PRINCIPLE 5 – REMUNERATION
The remuneration of directors and executives
should be transparent, fair and reasonable.
The total pool for Directors’ Fees is capped
at $200,000 and was last approved by
shareholders in 1996. The level of fees was
last reviewed by the Board as a whole in 2019.
Non-executive directors are entitled to receive
a base fee of NZ$38,000 per annum. The
Board Chair is entitled to receive an annual
fee of NZ $42,000 per annum. The Chair
of the Audit Committee receives a further
NZ$9,000 per annum and member(s) of
the Audit Committee receive NZ$7,000 per
annum. Executive Directors do not receive
Directors’ or Committee fees.
Employee (including the Managing Director
and senior management) remuneration
is made up of two primary components
being a fixed component and a short term
incentive. Remuneration is determined with
reference to market information as well as the
responsibilities of the position, experience and
overall performance. Short term incentives
are designed to reward high performing
employees with appropriate incentives which
are measured on key performance indicators
which are reviewed and monitored regularly
and company performance. The Company
reserves the right to suspend or adjust
incentives if targets are not met. MCK does
not currently have an employee share plan or
a long term incentive scheme.
Employees are eligible for a range of benefits
including discounted accommodation at
MCK’s hotels in New Zealand and Millennium
& Copthorne Hotels around the world
(subject to availability).
PRINCIPLE 6 – RISK MANAGEMENT
Directors should have a sound understanding
of the material risks faced by the issuer and
how to manage them. The Board should
regularly verify that the issuer has appropriate
processes that identify and manage potential
and material risks.
While risks are a part of doing business, it
does need to be monitored and addressed.
MCK’s Board, Audit Committee and
Management Team all have a role in
identifying areas of risk and understanding
their impact on the Company as well as how
these areas are to be managed and mitigated.
MCK’s Management Team is responsible for
the day-to-day identification, assessment
and management of risks applicable to the
Company as well as the implementation of
appropriate controls, processes and policies
to manage such risks. Management also
ensures that there are training programmes
in place to identify, manage, mitigate or
eliminate hazards and risks in the workplace.
The Audit Committee’s role is to review
and report to the Board on the adequacy of
Management’s oversight and implementation
of risks with particular regard to financial and
operational risks.
The Board is ultimately responsible for
the oversight and implementation of the
Company’s responses to risk management.
MCK’s Board has identified three main risks
areas being Reputational, Operational and
Financial Risks. Reputational Risks may
arise through errors or omissions by staff or
Management, failed procedures, an incident
that affects guests or staff or external events.
Operational Risks may arise from change in
the competitive or regulatory environment,
customer demand changes or even failing to
keep properties competitive. Financial risks
may arise where earnings or cashflow change
or are affected in some way due to market
conditions or events within or outside MCK’s
control.
MCK’s Board has also identified the risk of
climate change on its business. With the
passing of the Financial Sector (Climate-
related Disclosures and Other Matters)
Amendment Act 2021, MCK will need to
undertake annual reporting of climate related
disclosures such as the climate statements
required under the statutory framework.
MCK has begun the process of assessing how
it will report against the new framework and
will publish future updates on any changes
to its risk management framework which are
associated with climate change.
MCK has a series of internal controls in place
covering such areas as financial monitoring
and reporting, human resources and risk
management. The primary responsibility for
monitoring and reporting against internal
controls and remedying any deficiencies lies
with Management.
MCK also keeps current insurances
appropriate to its business with reputable
global insurers.
CG4 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
PRINCIPLE 7 – AUDITORS
The Board should ensure the quality and
independence of the external audit process.
External Audit plays a critical role in ensuring
the integrity of financial reporting. The role
of the external auditor is to plan and carry out
an audit of MCK’s annual financial reports
and review the half-yearly reports. The Audit
Committee reviews the performance and
independence of the external auditors.
MCK has in place an External Auditor
Independence Policy which deals with
the provision of services by the MCK’s
external auditors, auditor rotation and the
relationships between the external auditor
and the Company. The policy states that:
The Audit Committee shall only recommend
to the Board a firm to be external auditor if
that firm:
• would be regarded by a reasonable
investor, with full knowledge of all
relevant facts and circumstances,
as capable of exercising objective
and impartial judgment on all issues
encompassed within the auditor’s
engagement;
• audit partners are members of
Chartered Accountants Australia New
Zealand (CAANZ);
• has not, within two years prior to the
commencement of the audit, had as
a member of its audit engagement
team MCK’s Managing Director, Vice
President Finance, Group Accounting
Manager, or any member of the
Company’s Management who acts in a
financial oversight role.
• does not allow the direct compensation
of its audit partners for selling non-audit
services to MCK.
The general principles to be applied in
assessing non-audit services are as follows:
a) the external auditor should not have
any involvement in the production of
financial information or preparation
of financial statements such that they
might be perceived as auditing their
own work. This includes the provision
of bookkeeping and payroll services
as well as valuation services where
such valuation forms an input into
audited financial information;
b) the external auditor should not
perform any function of management,
or be responsible for making
management decisions;
c) the external auditor should not
be responsible for the design
or implementation of financial
information systems; and
d) the separation between internal
audit and external audit should be
maintained.
MCK’s Audit Committee shall pre-approve
all audit and related services that are to be
provided by the auditor. Aside from core
external audit services, it is appropriate for
the MCK’s auditors to provide the following
services:
• due diligence (except valuations) on
proposed transactions;
• review of financial information where
third party verification is required or
deemed necessary (outside the normal
audit process);
• completion audits / reviews;
• financial model preparation or review;
• accounting policy advice;
• listing advice;
• accounting/technical training; and
• taxation services of an assurance nature.
It is not considered appropriate for MCK’s
external auditors to provide:
• book keeping services related to
accounting records or financial
statements;
• tax planning and strategy services
unless specifically approved by the
Audit Committee;
• appraisal / valuation services including
opinions as to fairness;
• provision of payroll services;
• the design or implementation of
financial information systems;
• outsourced internal audit and risk
management services;
• legal services;
• management functions;
• broker / dealer / investment adviser /
investment banking services;
• advocacy for the Company;
• actuarial services; and
• assistance in the recruitment of senior
management.
These prohibitions apply to all offices of the
audit firm, including overseas offices and
affiliates.
The billing arrangements for services provided
by MCK’s external auditors should not include
any contingent fees.
MCK’s expects that its external auditors
will rigorously comply with their own
internal policies on independence and all
relevant professional guidance, including
independence rules and guidance issued by
CAANZ.
The nature of services provided by MCK’s
auditors and the level of fees incurred should
be reported to the Audit Committee Chairman
semi-annually (or sooner where requested) to
enable the Committee to perform its oversight
role and report back to the Board. This policy
does not prescribe any particular ratio of
non-audit service fees to audit fees but the
Committee shall monitored the fees and ratio.
The continued appointment of MCK’s external
auditors is confirmed annually by the Board on
recommendation from the Audit Committee.
Rotation of the lead audit partner or firm
will be required every five years. Lead audit
partners who are rotated will be subject
to a 2 year cooling off period (i.e. 2 years
must expire between the rotation of an audit
partner and that partner’s next engagement
with the Company).
The hiring by MCK of any former lead
audit partner or audit manager must first
be approved by the Chairman of the Audit
Committee. There are no other restrictions on
the hiring of other staff from the audit firm.
KPMG are currently MCK’s external auditor
and the lead external audit engagement
partner was rotated in 2018.
The Audit Committee monitors local and
overseas practice on auditor independence
regularly to ensure that this policy remains
consistent with best practice and meets
MCK’s requirements.
MCK’s external auditors also attend the
Company’s Annual Meeting to answer any
questions from shareholders as to the audit
and the content of the Annual Report.
PRINCIPLE 8 – SHAREHOLDER RIGHTS &
COMMUNICATION
The Board should respect the rights of
shareholders and foster constructive
relationships with shareholders that
encourage them to engage with the issuer.
MCK is committed to providing shareholders
and stakeholders with timely information on
its activities and performance. MCK does this
through a number of channels including:
• announcements in accordance with
continuous disclosure as required under
the Listing Rules;
• publication of the company’s annual
and interim reports which are sent to all
shareholders; and
• encouraging shareholders to attend the
Annual Meeting in May of each year to
hear the Chairman and the Managing
Director provide updates on the
company’s performance, ask questions
of the Board and vote on the resolutions
to be determined at the meeting.
Resolutions at shareholder meetings are
usually determined by poll where each
ordinary shareholder has one vote per
share.
Relevant communications, copies of annual
reports and key corporate governance
documents and policies are now available on
a dedicated webpage http://mckhotels.co.nz/
investors/
Shareholders also receive a discount card
for use at MCK’s hotels within New Zealand
which provides them with a discount off the
Best Available Rate (subject to availability).
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | CG 4
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | CG3
CG2 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
a. a reasonable person would not expect
the information to be disclosed; and
b. the information is confidential and its
confidentiality is maintained; and
c. one or more of the following applies:
i. it would breach the law to disclose
the information; or
ii. the information concerns
an incomplete proposal or
negotiation; or
iii. the information comprises
matters of supposition or is
insufficiently definite to warrant
disclosure; or
iv. the information is generated for
internal management purposes
of MCK or its subsidiaries; or
v. the information is a trade secret.
The Disclosure Committee will ensure that
all Board members, not already aware of the
information, are promptly provided with it.
• The Disclosure Committee is
responsible for MCK’s obligations under
the Listing Rules to release material
information to NZX to the extent
necessary to prevent development or
subsistence of a market for its listed
securities which is materially influenced
by false or misleading information
emanating from the issuer or any
associated person of the issuer; or other
persons in circumstances in each case
which would give such information
substantial credibility.
• All employees of MCK, as soon as
practicable after becoming aware
of a rumour or speculation that is
“generally available to the market”, must
disclose the existence of that rumour
or speculation to a member of the
Disclosure Committee.
• The Disclosure Committee is also
responsible for co-ordinating MCK’s
responses to leaks and inadvertent
disclosures. Even in the event that
leaked or inadvertently disclosed
information is not price sensitive, the
Disclosure Committee should consider
whether the information should
be released to NZX via its market
announcement platform in order to
provide investors with equal access.
• All external communications by MCK
must comply with the CDP, any media
policy and the Company’s rules with
respect to confidential information. No
material information is to be disclosed
to such persons before it is released to
NZX.
• Slides and presentations used in
briefings should be released to NZX for
immediate release to the market.
Prior to approval and release of MCK’s half
year and full year results, the Vice President
Finance and Company Secretary are required
to provide a letter of representation to the
Board (or its nominated subcommittee) that
the financial statements have been prepared
in accordance with generally accepted
accounting practice and are correct in all
material respects.
The Continuous Disclosure Policy was
reviewed in 2019.
PRINCIPLE 5 – REMUNERATION
The remuneration of directors and executives
should be transparent, fair and reasonable.
The total pool for Directors’ Fees is capped
at $200,000 and was last approved by
shareholders in 1996. The level of fees was
last reviewed by the Board as a whole in 2019.
Non-executive directors are entitled to receive
a base fee of NZ$38,000 per annum. The
Board Chair is entitled to receive an annual
fee of NZ $42,000 per annum. The Chair
of the Audit Committee receives a further
NZ$9,000 per annum and member(s) of
the Audit Committee receive NZ$7,000 per
annum. Executive Directors do not receive
Directors’ or Committee fees.
Employee (including the Managing Director
and senior management) remuneration
is made up of two primary components
being a fixed component and a short term
incentive. Remuneration is determined with
reference to market information as well as the
responsibilities of the position, experience and
overall performance. Short term incentives
are designed to reward high performing
employees with appropriate incentives which
are measured on key performance indicators
which are reviewed and monitored regularly
and company performance. The Company
reserves the right to suspend or adjust
incentives if targets are not met. MCK does
not currently have an employee share plan or
a long term incentive scheme.
Employees are eligible for a range of benefits
including discounted accommodation at
MCK’s hotels in New Zealand and Millennium
& Copthorne Hotels around the world
(subject to availability).
PRINCIPLE 6 – RISK MANAGEMENT
Directors should have a sound understanding
of the material risks faced by the issuer and
how to manage them. The Board should
regularly verify that the issuer has appropriate
processes that identify and manage potential
and material risks.
While risks are a part of doing business, it
does need to be monitored and addressed.
MCK’s Board, Audit Committee and
Management Team all have a role in
identifying areas of risk and understanding
their impact on the Company as well as how
these areas are to be managed and mitigated.
MCK’s Management Team is responsible for
the day-to-day identification, assessment
and management of risks applicable to the
Company as well as the implementation of
appropriate controls, processes and policies
to manage such risks. Management also
ensures that there are training programmes
in place to identify, manage, mitigate or
eliminate hazards and risks in the workplace.
The Audit Committee’s role is to review
and report to the Board on the adequacy of
Management’s oversight and implementation
of risks with particular regard to financial and
operational risks.
The Board is ultimately responsible for
the oversight and implementation of the
Company’s responses to risk management.
MCK’s Board has identified three main risks
areas being Reputational, Operational and
Financial Risks. Reputational Risks may
arise through errors or omissions by staff or
Management, failed procedures, an incident
that affects guests or staff or external events.
Operational Risks may arise from change in
the competitive or regulatory environment,
customer demand changes or even failing to
keep properties competitive. Financial risks
may arise where earnings or cashflow change
or are affected in some way due to market
conditions or events within or outside MCK’s
control.
MCK’s Board has also identified the risk of
climate change on its business. With the
passing of the Financial Sector (Climate-
related Disclosures and Other Matters)
Amendment Act 2021, MCK will need to
undertake annual reporting of climate related
disclosures such as the climate statements
required under the statutory framework.
MCK has begun the process of assessing how
it will report against the new framework and
will publish future updates on any changes
to its risk management framework which are
associated with climate change.
MCK has a series of internal controls in place
covering such areas as financial monitoring
and reporting, human resources and risk
management. The primary responsibility for
monitoring and reporting against internal
controls and remedying any deficiencies lies
with Management.
MCK also keeps current insurances
appropriate to its business with reputable
global insurers.
CG4 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
PRINCIPLE 7 – AUDITORS
The Board should ensure the quality and
independence of the external audit process.
External Audit plays a critical role in ensuring
the integrity of financial reporting. The role
of the external auditor is to plan and carry out
an audit of MCK’s annual financial reports
and review the half-yearly reports. The Audit
Committee reviews the performance and
independence of the external auditors.
MCK has in place an External Auditor
Independence Policy which deals with
the provision of services by the MCK’s
external auditors, auditor rotation and the
relationships between the external auditor
and the Company. The policy states that:
The Audit Committee shall only recommend
to the Board a firm to be external auditor if
that firm:
• would be regarded by a reasonable
investor, with full knowledge of all
relevant facts and circumstances,
as capable of exercising objective
and impartial judgment on all issues
encompassed within the auditor’s
engagement;
• audit partners are members of
Chartered Accountants Australia New
Zealand (CAANZ);
• has not, within two years prior to the
commencement of the audit, had as
a member of its audit engagement
team MCK’s Managing Director, Vice
President Finance, Group Accounting
Manager, or any member of the
Company’s Management who acts in a
financial oversight role.
• does not allow the direct compensation
of its audit partners for selling non-audit
services to MCK.
The general principles to be applied in
assessing non-audit services are as follows:
a) the external auditor should not have
any involvement in the production of
financial information or preparation
of financial statements such that they
might be perceived as auditing their
own work. This includes the provision
of bookkeeping and payroll services
as well as valuation services where
such valuation forms an input into
audited financial information;
b) the external auditor should not
perform any function of management,
or be responsible for making
management decisions;
c) the external auditor should not
be responsible for the design
or implementation of financial
information systems; and
d) the separation between internal
audit and external audit should be
maintained.
MCK’s Audit Committee shall pre-approve
all audit and related services that are to be
provided by the auditor. Aside from core
external audit services, it is appropriate for
the MCK’s auditors to provide the following
services:
• due diligence (except valuations) on
proposed transactions;
• review of financial information where
third party verification is required or
deemed necessary (outside the normal
audit process);
• completion audits / reviews;
• financial model preparation or review;
• accounting policy advice;
• listing advice;
• accounting/technical training; and
• taxation services of an assurance nature.
It is not considered appropriate for MCK’s
external auditors to provide:
• book keeping services related to
accounting records or financial
statements;
• tax planning and strategy services
unless specifically approved by the
Audit Committee;
• appraisal / valuation services including
opinions as to fairness;
• provision of payroll services;
• the design or implementation of
financial information systems;
• outsourced internal audit and risk
management services;
• legal services;
• management functions;
• broker / dealer / investment adviser /
investment banking services;
• advocacy for the Company;
• actuarial services; and
• assistance in the recruitment of senior
management.
These prohibitions apply to all offices of the
audit firm, including overseas offices and
affiliates.
The billing arrangements for services provided
by MCK’s external auditors should not include
any contingent fees.
MCK’s expects that its external auditors
will rigorously comply with their own
internal policies on independence and all
relevant professional guidance, including
independence rules and guidance issued by
CAANZ.
The nature of services provided by MCK’s
auditors and the level of fees incurred should
be reported to the Audit Committee Chairman
semi-annually (or sooner where requested) to
enable the Committee to perform its oversight
role and report back to the Board. This policy
does not prescribe any particular ratio of
non-audit service fees to audit fees but the
Committee shall monitored the fees and ratio.
The continued appointment of MCK’s external
auditors is confirmed annually by the Board on
recommendation from the Audit Committee.
Rotation of the lead audit partner or firm
will be required every five years. Lead audit
partners who are rotated will be subject
to a 2 year cooling off period (i.e. 2 years
must expire between the rotation of an audit
partner and that partner’s next engagement
with the Company).
The hiring by MCK of any former lead
audit partner or audit manager must first
be approved by the Chairman of the Audit
Committee. There are no other restrictions on
the hiring of other staff from the audit firm.
KPMG are currently MCK’s external auditor
and the lead external audit engagement
partner was rotated in 2018.
The Audit Committee monitors local and
overseas practice on auditor independence
regularly to ensure that this policy remains
consistent with best practice and meets
MCK’s requirements.
MCK’s external auditors also attend the
Company’s Annual Meeting to answer any
questions from shareholders as to the audit
and the content of the Annual Report.
PRINCIPLE 8 – SHAREHOLDER RIGHTS &
COMMUNICATION
The Board should respect the rights of
shareholders and foster constructive
relationships with shareholders that
encourage them to engage with the issuer.
MCK is committed to providing shareholders
and stakeholders with timely information on
its activities and performance. MCK does this
through a number of channels including:
• announcements in accordance with
continuous disclosure as required under
the Listing Rules;
• publication of the company’s annual
and interim reports which are sent to all
shareholders; and
• encouraging shareholders to attend the
Annual Meeting in May of each year to
hear the Chairman and the Managing
Director provide updates on the
company’s performance, ask questions
of the Board and vote on the resolutions
to be determined at the meeting.
Resolutions at shareholder meetings are
usually determined by poll where each
ordinary shareholder has one vote per
share.
Relevant communications, copies of annual
reports and key corporate governance
documents and policies are now available on
a dedicated webpage http://mckhotels.co.nz/
investors/
Shareholders also receive a discount card
for use at MCK’s hotels within New Zealand
which provides them with a discount off the
Best Available Rate (subject to availability).
REG 1 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
- 1 -
REGULATORY DISCLOSURES
20 LARGEST ORDINARY SHAREHOLDERS (as at 1 March 2022) (Listing Rule 3.7.1 c)
Rank Shareholder No. of Securities %
1. CDL HOTELS HOLDINGS NEW ZEALAND LIMITED 74,743,077 70.79
2. BNP PARIBAS NOMINEES (NZ) LIMITED - NZCSD 6,178,632 5.85
3. ACCIDENT COMPENSATION CORPORATION - NZCSD 4,112,159 3.89
4. CITIBANK NOMINEES (NEW ZEALAND) LIMITED - NZCSD 2,995,643 2.84
5. NATIONAL NOMINEES LIMITED - NZCSD 1,956,703 1.85
6. HSBC NOMINEES (NEW ZEALAND) LIMITED - NZCSD 1,314,327 1.24
7. HSBC NOMINEES (NEW ZEALAND) LIMITED A/C STATE STREET -NZCSD 1,296,193 1.23
8. LENG BENG KWEK 906,000 0.86
9. JPMORGAN CHASE BANK NA NZ BRANCH-SEGREGATED CLIENTS A/C - NZCSD 821,578 0.78
10. AMALGAMATED DAIRIES LIMITED 684,980 0.65
11. NEW ZEALAND DEPOSITORY NOMINEE LIMITED 639,155 0.61
12. KAY HONG CHIAM 475,251 0.45
13. MFL MUTUAL FUND LIMITED - NZCSD 463,297 0.44
14. CUSTODIAL SERVICES LIMITED 361,350 0.34
15. CUSTODIAL SERVICES LIMITED 346,004 0.33
16. JALAER INVESTMENTS LIMITED 278,977 0.26
17. ASB NOMINEES LIMITED 182,500 0.17
18. GEOK LOO GOH 168,002 0.16
19. WEI-YONG QIAN 165,000 0.16
20. SITA SINGH 151,000 0.14
NZCSD is the New Zealand Central Securities Depositary and provides a custodial depositary service to its clients and does not have
a beneficial interest in the shares held in its name.
20 LARGEST REDEEMABLE PREFERENCE SHAREHOLDERS (as at 1 March 2022) (Listing Rule 3.7.1 c))
Rank Shareholder No. of Securities %
1. CDL HOTELS HOLDINGS NEW ZEALAND LIMITED 45,224,095 85.75
2. BNP PARIBAS NOMINEES (NZ) LIMITED - NZCSD 2,945,671 5.59
3. HSBC NOMINEES (NEW ZEALAND) LIMITED - NZCSD 1,681,950 3.19
4. ACCIDENT COMPENSATION CORPORATION - NZCSD 935,848 1.77
5. LENG BENG KWEK 453,000 0.86
6. NATIONAL NOMINEES LIMITED - NZCSD 242,071 0.46
7. KAY HONG CHIAM 211,324 0.40
8. CUSTODIAL SERVICES LIMITED 133,055 0.25
9. ASB NOMINEES LIMITED 130,451 0.25
10. ALAN DAVID WHITE 110,130 0.21
11. GRAEME STUART LORD & LISA ANNE LORD 77,225 0.15
12. JENNIFER GAYE SIMPSON 43,000 0.08
13.
THEODORE JOHN VAN GELDERMALSEN & MARGARET GAY FREEMANTLE
(GOLDEN DOWNS S/F A/C)
38,000 0.07
14. AOTEAROA RENTAL ENTERPRISES LIMITED 34,965 0.07
15. HOWARD CEDRIC ZINGEL 31,592 0.06
16. ARIE DEKKER & LEANNE KATHERINE WALKER 30,400 0.06
17.
ROGER EDWARD HAYWARD & SUSAN ELIZABETH HAYWARD (TENANTS IN
COMMON)
28,909 0.05
18. AIKEN & ASSOCIATES LIMITED 23,593 0.04
19. SEA AND PEAK EQUITIES LIMITED 23,400 0.04
20. HAMISH ARTHUR JAMIESON 22,500 0.04
NZCSD is the New Zealand Central Securities Depositary and provides a custodial depositary service to its clients and does not have
a beneficial interest in the shares held in its name.
HOLDINGS SIZE – ORDINARY SHARES (as at 1 March 2022)
Range Total Holders Number of shares Percentage of Issued Capital
1 - 499 506 162,949 0.15
500 - 999 324 227,403 0.22
1,000 - 1,999 241 338,914 0.32
2,000 - 4,999 267 831,222 0.79
5,000 - 9,999 150 1,022,509 0.97
10,000 - 49,999 140 2,675,710 2.53
50,000 - 99,999 16 1,171,379 1.11
100,000 - 499,999 16 3,499,757 3.31
500,000 - 999,999 4 3,051,713 2.89
1,000,000 Over 7 92,596,734 87.70
Rounding 0.01
Total 1,671 105,578,290 100.00
HOLDINGS SIZE – REDEEMABLE PREFERENCE SHARES (as at 1 March 2022)
Range Total Holders Number of shares Percentage of Issued Capital
1 - 499 73 16,628 0.03
500 - 999 25 17,199 0.03
1,000 - 1,999 25 34,596 0.07
2,000 - 4,999 19 64,387 0.12
5,000 - 9,999 11 68,562 0.13
10,000 - 49,999 18 393,351 0.75
50,000 - 99,999 1 77,225 0.15
100,000 - 499,999 6 1,280,031 2.43
500,000 - 999,999 1 935,848 1.77
1,000,000 Over 3 49,851,716 94.52
Rounding 0.00
Total 182 52,739,543 100.00
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | REG 2
- 2 -
DOMICILE OF ORDINARY SHAREHOLDERS (as at 1 March 2022)
Number Number of shares Percentage of Issued Capital
New Zealand 100,395,216 95.09
Overseas holders 5,183,074 4.91
Total 105,578,290 100.00
DOMICILE OF REDEEMABLE PREFERENCE SHAREHOLDERS (as at 1 March 2022)
Number Number of shares Percentage of Issued Capital
New Zealand
Overseas holders
Total 52,739,543 100.00
WAIVERS FROM NZX LIMITED
No waivers were sought from NZX in 2021.
SUBSTANTIAL PRODUCT HOLDERS
According to notices given to the Company under the Financial Markets Conduct Act 2013, as at 1 March 2022, the substantial product holders in the Company
are noted below:
Securities Class %
CDL Hotels Holdings New Zealand Limited 74,139,077 Ordinary Shares 70.79%
Standard Life Aberdeen plc 8,500,941 Ordinary Shares 8.06%
Aberdeen Standard Investments (Asia) Limited 8,500,941 Ordinary Shares 8.06%
CDL Hotels Holdings New Zealand Limited is a wholly owned subsidiary of Millennium & Copthorne Hotels Limited (formerly Millennium & Copthorne Hotels plc).
As at 1 March 2022, the total number of issued voting securities of Millennium & Copthorne Hotels New Zealand Limited (all of which are ordinary shares) was
105,578,290. The Company holds 99,547 repurchased ordinary shares as treasury stock.
The total number of non-voting redeemable preference shares was 52,739,543. As these securities are non-voting securities, there is no requirement to provide
substantial product holder notices.
STATUTORY INFORMATION
DIRECTORS (section 211 (1)(i) Companies Act 1993)
As at 31 December 2021, the Company’s Directors were Messrs. C Sim, BK Chiu, K Hangchi, ES Kwek, GA McKenzie and Ms. LS Preston. Messrs. Chiu,
Hangchi and Kwek were appointed by Millennium & Copthorne Hotels Limited. Ms.Preston was appointed with effect from 1 March 2021.
The gender breakdown of the Board at balance date was 5 male directors and 1 female director (2020: 6 male directors and 0 female directors). MCK currently
has 2 female and 6 male officers (2020: 3 female and 6 male officers).
INTERESTS REGISTER (sections 189 (1) (c) and 211(1)(e) Companies Act 1993)
The Company maintains an Interests Register as required under the Companies Act 1993. For the period under review, the following entries were recorded:
USE OF COMPANY INFORMATION (section 145 Companies Act 1993)
During 2021, the Board did not receive any notices from any Directors of the Company requesting the use of company information which they would have received
in their capacity as Directors which would not otherwise have been available to them.
SHARE DEALING (section 148, Companies Act 1993)
No share dealings by Directors occurred during 2021.
DIRECTORS’ AND ASSOCIATED PERSONS SHAREHOLDINGS (as at 31 December 2021)
Director 2020 2021
C Sim Nil Nil
B K Chiu Nil Nil
R Bobb Nil Nil
K Hangchi Nil Nil
ES Kwek Nil Nil
GA McKenzie Nil Nil
REMUNERATION (section 161 and 211(1)(f), Companies Act 1993)
The total remuneration and value of other benefits earned by each of the Directors of the Company for the year ending 31 December 2021 was:
Director Remuneration
C Sim 42,000
B K Chiu (*) 440,342
R Bobb 18,826
Leslie Preston 36,167
K Hangchi 38,000
ES Kwek (*) Nil
GA McKenzie 60,000
(*) Mr. Kwek is the Executive Director of Millennium & Copthorne Hotels Limited. Mr. B K Chiu is the Managing Director of MCK. Neither Mr. Kwek nor Mr. Chiu
received remuneration as a director of the Company or of any of the Company’s subsidiaries.
INDEMNITY AND INSURANCE (section 162, Companies Act 1993)
In accordance with the Company’s constitution, the Company has insured all its Directors and the Directors of its subsidiaries against liabilities to other parties
(except the Company or a related party of the Company) that may arise from their positions as Directors. The insurance does not cover liabilities arising from
criminal actions.
REG 3 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
- 3 -
GENERAL DISCLOSURES OF INTEREST (section 140(2), Companies Act 1993)
As at 31 December 2021, the Directors of the Company have made general disclosures of interest in the following companies:
C SIM
Chairman / Director of:
CDL Investments New Zealand Limited
Director of: Autocaps (Aust) Pty Ltd Autocaps Pastoral Division Pty Limited
Autocaps Vogue Pty Limited Bathurst Range Investments Pty Limited Builders Recycling Properties Pty Ltd
Builders Recycling Operations Pty Ltd CS Investments No. 1 Pty Ltd Desert Rose Group Pty Limited
Desert Rose Holdings Pty Limited DMM Investments (NSW) Pty Ltd East Quarter Group Pty Ltd
East Quarter Hurstville Pty Limited EQ Constructions Pty Ltd EQ Equity Pty Ltd
EQ Finance Services Pty Limited EQ Gosford Pty Ltd EQ Projects Pty Ltd
EQ Projects Holdings Pty Ltd EQ Property Holdings Pty Ltd EQ Revesby Pty Ltd
EQ Riverside Pty Ltd EQ Zetland Pty Ltd EQ Zetland Finance Pty Ltd
Hurstville NSW Pty Limited Llenruk Pty Ltd Naxta Pty Ltd
New Dale Sim Pty Ltd PBD Phoenix Pty Limited PCC Devco 1 Pty Limited
Phoenix Palm Developments Pty Limited Preslite Drive Technologies Pty Limited SSK Investments Pty Ltd
SSK Investments No 2 Pty Ltd SSK Investments O/S Pty Ltd TECH5 Australia Pty Ltd
Waterbrook Bayview Pty Ltd Waterbrook Bayview Investment Pty Ltd
Waterbrook Bayview Village Management Pty Ltd Waterbrook Bowral Pty Ltd Waterbrook Bowral Investment Pty Ltd
Waterbrook Bowral Village Management Pty Ltd Waterbrook Brand Pty Ltd West Quarter Hurstville Pty Limited
BK CHIU
Chairman / Director of: Quantum Ltd Waitangi Resort Joint Venture Committee
Director of: All Seasons Hotels & Resorts Ltd CATG Limited
CDL Investments New Zealand Ltd CDL Land New Zealand Ltd Context Securities Ltd
Hospitality Group Ltd Hospitality Leases Ltd Hospitality Services Ltd
Kingsgate Hotels & Resorts Ltd Millennium & Copthorne NZ Ltd QINZ Holdings (New Zealand) Ltd
QINZ (Anzac Avenue) Ltd
K HANGCHI
Director of: CDL Hotels Holdings New Zealand Limited KIN Holdings Limited
Hong Leong Finance Limited Hong Leong Finance Nominees Pte Ltd Hong Leong Nominees (Private) Limited
Millennium Securities Nominees Pte Ltd Millennium Securities Pte Ltd Singapore Nominees Private Ltd
Sun Yuan Holdings Pte Ltd Sun Yuan Overseas Pte Ltd
ES KWEK
Chairman / Director / President of: Grand Plaza Hotel Corporation
Director and Chairman of the Board:
Millennium Hotels Italy Holdings S.r.l Millennium Hotels Palace Management S.r.l Millennium Hotels Property S.r.l
President and Director of: Five Star Assurance Inc
Director / President of: The Philippine Fund Limited
Managing Director of: ATOS Holding GmbH Tara Hotels Deutschland GmbH
Director of:
125 OBS (Nominees 1) Limited 125 OBS (Nominees 2) Limited 125 OBS GP Limited
Actas Holdings Pte. Ltd Adelais Properties Limited Adelanto Investments Pte. Limited
Adelphia Holdings Limited Allinvest Holding Pte. Ltd Allsgate Properties Limited
Alphagate Holdings Limited Androgate Properties Limited Aquarius Properties Pte. Ltd
Archyfield Limited Asbury Holdings Pte. Ltd Ascent View Holdings Pte. Ltd
Aster Land Development Pte Ltd Aston Properties Pte. Ltd Baynes Investments Pte Ltd
Beaumont Properties Limited Beijing Fortune Hotel Co. Ltd Bellevue Properties Pte. Ltd
Bestro Holdings Limited Bloomshine Holdings Limited Bloomsville Investments Pte Ltd
Bop Luxembourg (125 Obs) 2 SARL Branbury Investments Ltd Barvogate Holdings SARL
Camborne Developments Pte. Ltd Canvey Developments Pte. Ltd CDL Acquisitions Pte. Ltd
CDL Aquila Pte. Ltd CDL Australia Pte. Ltd CDL Constellation Pte. Ltd
CDL Crestview Holdings Pte. Ltd CDL Crown REIT Management Pte. Ltd CDL Entertainment & Leisure Pte. Ltd
CDL Evergreen Pte. Ltd CDL Hotels (Chelsea) Ltd CDL Hotels (Korea) Ltd.
CDL Hotels (Labuan) Ltd CDL Hotels (Malaysia) Ltd CDL Hotels (U.K.) Limited
CDL Hotels Japan Pte. Ltd CDL Infinity Pte. Ltd CDL Investments New Zealand Limited
CDL Land Pte. Ltd CDL Libra Commercial Pte. Limited CDL Libra Pte. Limited
CDL Management Services Pte. Ltd CDL Netherlands Investments BV CDL Orion Investment Holdings Pte. Ltd
CDL Pegasus Pte. Ltd CDL Perseus Pte. Ltd CDL Pisces Comericial Pte. Ltd
CDL Pisces Serviced Residences Pte. Ltd CDL Pro Star Development Pty Ltd CDL Properties BV
CDL Real Estate Asset Managers Pte Ltd CDL Real Estate Investment Managers Pte Ltd CDL Regulus Pte. Ltd
CDL Suzhou Investment Pte. Ltd Central Mall Pte. Ltd Centro Investment Holding Pte Ltd
Centro Property Holding Pte Ltd Chania Holdings Limited Chestnut Avenue Developments Pte Ltd
Cideco Pte Ltd City Boost Pte. Ltd City Century Pte. Ltd
City Condominiums Pte. Ltd City Connected Communities Pte. Ltd City Delta Pte. Ltd
City Developments Investments Pte. Ltd City Developments Realty Ltd City Elite Pte. Ltd
City Gemini Pte. Ltd City Hotels Pte. Ltd City Ikonik Pte. Ltd
City Lux Pte. Ltd City Montage Pte. Ltd City Platinum Holdings Pte. Ltd
City REIT Management Pte. Ltd City Sceptre Holdings Pte. Ltd City Sceptre Investments Pte. Ltd
City Services Offices Pte. Ltd City Strategic Equity Pte. Ltd City Sunshine Holdings Pte. Ltd
Citydev Investments Pte. Ltd Citydev Properties Pte. Ltd Citydev Real Estate (Singapore) Pte. Ltd
Citydev Venture Holdings Pte. Ltd Cityzens Developments Pte Ltd Copthorne Aberdeen Limited
Copthorne Hotel (Birmingham) Limited Copthorne Hotel (Cardiff) Limited Copthorne Hotel (Effingham Park) Limited
Copthorne Hotel (Gatwick) Limited Copthorne Hotel (Manchester) Limited
Copthorne Hotel (Merry Hill) Construction Limited Copthorne Hotel (Merry Hill) Limited Copthorne Hotel (Newcastle) Limited
Copthorne Hotel (Plymouth) Limited Copthorne Hotel (Slough) Limited Copthorne Hotel Holdings Limited
Copthorne Hotels Limited Copthorne Orchid Hotel Singapore Pte Ltd Crescent View Developments Pte Ltd
Darien Properties Investment Limited Delfi One Investments Pte Ltd Delfi Three Investments Pte Ltd
Delfi Two Investments Pte Ltd Diplomat Hotel Holding Company Limited Eastwest Portfolio Pte Ltd
Easy Thrive Ventures Limited Eccott Pte Ltd Edeva Holdings Limited
Educado Company Limited Elishan Investments Pte Ltd Elite Holdings Private Limited
Elite Hotel Management Services Pte Ltd Ellinois Management Services Pte Ltd Euroform (S) Pte Ltd
Faber-Rhine Properties Pte Ltd Fairsteps Properties Pte. Ltd Ferguson Hotel Holdings Limited
Ferguson Investment Corp Finite Properties Investment Limited First Platinum Holdings Pte. Ltd
Freshview Developments Pte Ltd Glades Properties Pte. Ltd Grand Isle Holdings Pte Ltd
Grand Strategic Pte. Ltd Grand-Terre Properties Pte Ltd Grange 100 Pte Ltd
Granmill Holdings Pte Ltd Greystand Holdings Limited Guan Realty (Private) Limited
Harbour Land Corporation Harbour View Hotel Pte Ltd Harrow Entertainment Pte Ltd
Heritage Pro International Limited Highline Holdings Limited Highline Investments GP Limited
Highline Properties GP Limited Hong Bee Hardware Company Sdn. Berhad Hong Leong Enterprises Pte Ltd
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021 | REG 4
- 4 -
Hong Leong Foundation Hong Leong Hotel Development Limited
Hong Leong International Hotel (Singapore) Pte Ltd Hong Leong Properties Pte Limited Hospitality Holdings Pte Ltd
Hospitality Ventures Pte Ltd Hotel Liverpool Limited Hotel Liverpool Management Limited
Iconique Tokutei Mokuteki Kaisha Impac Holdings Pte Ltd Iselin Limited
Island Glades Developments Pte Ltd Jayland Properties Limited Keygate Holdings Limited
King’s Tanglin Shopping Pte Ltd Kwek Holdings Pte Ltd Kwek Hong Png Investment Pte Ltd
Landco Properties Limited Le Grove Management Pte Ltd Legend Commercial Pte. Limited
Legend Commercial Trustee Pte. Ltd Legend Investment Holdings Pte. Ltd Legend Quay Pte. Ltd
Lightspark Holdings Limited Lingo Enterprises Limited London Britannia Hotel Limited
London Tara Hotel Limited Lukestone Properties Limited M&C (CB) Limited
M&C (CD) Limited M&C Finance (1) Limited M&C Management Holdings Limited
M&C NZ Limited M&C Reservations Services Limited M&C Asia Finance (UK) Limited
M&C Asia Holdings (UK) Limited M&C Capital Pte. Limited M&C Holdings (Thailand) Limited
M&C Hotel Investments Pte Limited M&C Hotels Holdings Japan Pte Limited M&C Hotels Holdings Limited
M&C Hotels Holdings USA Limited M&C Hotels Japan Pte Limited M&C New York Finance (UK) Limited
M&C Singapore Finance (UK) Limited M&C Singapore Holdings (UK) Limited M&C Sponsorship Limited
Melvale Holdings Limited Merivale JV Pty Limited
Millennium & Copthorne (Australian Holdings) Limited Millennium & Copthorne (Jersey Holdings) Limited Millennium & Copthorne Hotels Limited
Millennium & Copthorne Hotels Management (Shanghai) Limited Millennium & Copthorne International Limited
Millennium & Copthorne Share Trustees Limited Millennium Hotel Holdings EMEA Limited Millennium Hotels & Resorts Services Limited
Millennium Hotels (West London) Limited Millennium Hotels (West London) Management Limited
Millennium Hotels Europe Holdings Limited Millennium Hotels Limited Millennium Hotels London Limited
New Empire Investments Pte Ltd New Synergy Investments Pte Ltd New Unity Holdings Ltd.
New Vista Realty Pte Ltd Newbury Investments Pte Ltd Novel Developments Pte Ltd
Palmerston Holdings Sdn. Bhd. Paradise Investments Limited Pavo Properties Pte Ltd
Pinenorth Properties Limited Qaiser Holdings Limited Queensway Hotel Holdings Limited
Queensway Hotel Limited Redvale Developments Pte Ltd Redvale Investments Pte Ltd
Redvale Properties Pte Ltd Republic Iconic Hotel Pte Ltd Republic Plaza City Club (Singapore) Pte Ltd
Reselton Properties Limited Richmond Hotel Pte Ltd Richview Holdings Pte Ltd
Rogo Investments Pte Ltd Rogo Realty Corporation Scentview Holding Limited
Scottsdale Properties Pte Ltd Serangoon Green Pte Ltd Siena Commercial Development Pte Ltd
Siena Residential Development Pte Ltd Siena Trustee Pte Ltd Silkparc Holdings Limited
Singapura Developments (Private) Limited South Beach Consortium Pte Ltd
South Beach International Hotel Management Pte Ltd Southwaters Investment Pte Ltd Sparkland Holdings Pte Ltd
Summit Vistas Pte Ltd Sunmaster Holdings Pte Ltd Sunny Vista Developments Pte Ltd
Sunshine Plaza Pte Ltd TC Development Pte Ltd
Tempus Platinum Investments Tokutei Mokuteki Kaisha TOSCAP Limited Treasure Realm Limited
Trentwell Management Pte Ltd Trentworth Properties Limited Tucana Commercial Pte Ltd
Tucana Properties Pte Ltd Tucana Residential Pte Ltd U-Paragon Holdings Limited
Ventagrand Holdings Limited Verspring Properties Pte Ltd Verwood Holdings Pte Ltd
Vinemont Investments Pte Ltd Welland Investments Limited White Haven Properties Pte Ltd
Whitehall Holdings Limited Zatrio Pte Ltd
Representative Director of: CDL Hotels (Korea) Ltd
Alternate Director of: Mount V Development Pte Ltd
General Manager of: M&C Hotels France SAS
Manager of: M&C Hotels France Management SARL
G A MCKENZIE
Director of: CMO Energy NZ GMACK Consulting Ltd
Luxottica Retail New Zealand Ltd McHarry Holdings Ltd Saw 2015 Ltd
Valar NZ Ltd
Independent Trustee of: Development West Coast
L S PRESTON
Director of: 3M6 Property Limited Ingenio Group Holdings Limited
Ingenio Limited Ingenio Services Limited Rose And Thorne Design Limited
EMPLOYEE REMUNERATION (section 211(1) (g) Companies Act 1993)
The number of employees or former employees of the Company and its subsidiaries (excluding publicly listed subsidiaries) who received remuneration and any
other benefits in their capacity as employees, the value of which was or exceeded $100,000 per annum in 2021 are as follows:
Remuneration and value
of other benefits
Number. of
employees
100001 - 110000 10
110001 - 120000 4
120001 - 130000 4
130001 - 140000 3
140001 - 150000 2
150001 - 160000 1
160001 - 170000 3
170001 - 180000 4
200001 - 210000 1
220001 - 230000 1
230001 - 240000 1
270001 - 280000 1
400001 - 410000 1
440001 - 450000 1
DONATIONS (section 211(1)(h) and (2)
The Company and its subsidiaries made donations to charity totaling $114 during the year.
AUDIT FEES (section 211(1)(j) and (2)
During the period under review, the following amounts were payable to the external auditors KPMG:
2020 ($’000) 2021 ($’000)
New Zealand Australia New Zealand Australia
Annual Audit
291 28 341 26
KPMG Other Services
34 Nil 34 Nil
REG 5 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
- 5 -
SUBSIDIARY COMPANIES AND DIRECTORS (section 211(2) of the Companies Act 1993)
The Company’s subsidiaries and their directors as at 31 December 2021 are listed below:
NAME DIRECTORS OWNERSHIP ACTIVITY
All Seasons Hotels and Resorts Ltd
BK Chiu, JB Pua 100% Non-trading
CDL Investments New Zealand Ltd ()
C Sim, BK Chiu, J Henderson, DJ
Jameson, ES Kwek, VWE Yeo
66.29% Holding Company
CDL Land New Zealand Ltd
JC Adams, BK Chiu, JB Pua 66.29% Property Investment & Development Company
Context Securities Ltd
BK Chiu, JB Pua 100% Investment Holding Company
Hospitality Group Ltd
BK Chiu, N Hood, K Orr 100% Holding Company
Hospitality Leases Ltd
BK Chiu 100% Lessee Company
Hospitality Services Ltd
BK Chiu, K Orr, JB Pua 100% Hotel Management Company
Hotelcorp New Zealand Ltd
JB Pua, JSS Tan 100%
Holding Company (Australia)
KIN Holdings Ltd
JB Pua, K Hangchi 100%
Holding company
Kingsgate Holdings Pty Ltd
JB Pua, JSS Tan 100%
Holding Company
Kingsgate Hotels And Resorts Ltd
BK Chiu, JB Pua 100% Franchise Holder
Kingsgate Hotels Ltd
JB Pua 100%
Non-trading
Kingsgate Hotel Pty Ltd
JB Pua, JSS Tan 100%
Non-trading (Australia)
Kingsgate Investments Pty Ltd
JB Pua, JSS Tan 100%
Residential Apartment Owner (Australia)
Kingsgate International Corporation Ltd
JB Pua, 100%
Holding Company
Millennium & Copthorne NZ Ltd
BK Chiu, JB Pua 100% Non-trading
Millennium & Copthorne Hotels Pty Ltd
JB Pua, JSS Tan 100% Non-trading (Australia)
QINZ (Anzac Avenue) Ltd
BK Chiu, JB Pua 100%
Hotel Owner
QINZ Holdings (New Zealand) Ltd
BK Chiu, JB Pua 100%
Holding Company
Quantum Ltd
BK Chiu, K Orr, JB Pua, 100%
Holding company
() Listed on the New Zealand Stock Exchange
--Where the directors of the Company’s subsidiaries are employees of the Company, they do not receive any remuneration or other benefits as a director. Their
remuneration and other benefits are received as employees and are included in the relevant banding under Employee Remuneration.
--The following persons received remuneration as Directors of the Company’s subsidiaries during 2021: C Sim ($35,000), VWE Yeo ($30,000), RJ Austin
($14,583), J Henderson ($30,000), DJ Jameson ($20,000).
CG4 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2021
CORPORATE DIRECTORY
BOARD OF DIRECTORS
Colin Sim (Independent Director / Chairman)
B K Chiu (Managing Director)
Kevin Hangchi (Non-Executive Director)
Eik Sheng Kwek (Non-Executive Director)
Graham McKenzie (Independent Director)
Leslie Preston (Independent Director/Chair of Audit Committee)
SENIOR MANAGEMENT
Brendan Davies (Director, International and Corporate Sales)
Craig Fletcher (Director, Property Management)
Takeshi Ito (Vice President Legal & Company Secretary)
Ken Orr (Vice President Operations)
Boon Pua (Vice President Finance)
Alison Smith (National Director of Sales, Conferences and Incentives)
Josie Wilson (Director, Revenue and Distribution)
REGISTERED OFFICE & CONTACT DETAILS
Level 13, 280 Queen Street, Auckland, New Zealand
PO Box 5640, Victoria Street West, Auckland 1142
Telephone: (09) 353 5010
Facsimile: (09) 309 3244
Email: sales.marketing@millenniumhotels.co.nz
Global Website: www.millenniumhotels.com
Investor Website: www.mckhotels.co.nz/investors
AUDITORS
KPMG, Auckland
BANKERS
ANZ Banking Group (New Zealand) Limited
Hong Kong & Shanghai Banking Corporation Limited
SOLICITORS
Bell Gully
SHARE REGISTRAR
Computershare Investor Services Limited,
Level 2, 159 Hurstmere Road, Takapuna, Auckland, New Zealand
Private Bag 92119, Auckland 1020, New Zealand
Telephone: +64 9 488 8700
Facsimile: +64 9 488 8787
Email: enquiry@computershare.co.nz
STOCK EXCHANGE LISTING:
New Zealand Exchange (NZX)
Company Code: MCK
HEAD OFFICE
Head Office Tel: (09) 353 5010
Level 13, 280 Queen Street
PO Box 5640, Victoria Street West, Auckland 1142
NATIONAL CONFERENCE OFFICE
Ph: 0800 4 MEETINGS (0800 4 633 846)
Email: meetings@millenniumhotels.co.nz
www.meetingsnz.co.nz
SALES
Email: sales.marketing@millenniumhotels.co.nz
International Sales Tel: (09) 353 5085
Corporate Sales Auckland Tel: (09) 353 5010
Corporate Sales Wellington Tel: (04) 382 0770
CENTRAL RESERVATIONS
Ph: 0800 808 228
Email: central.res@millenniumhotels.co.nz
www.millenniumhotels.com
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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