CDI H1 2023 Results Announcement

Results announcement



Results for announcement to the market
Name of issuer CDL Investments New Zealand Limited
Reporting Period 6 months to 30 June 2023
Previous Reporting Period 6 months to 30 June 2022
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$11,968 (74.97%)
Total Revenue $11,968 (74.97%)
Net profit/(loss) from
continuing operations
$5,024 (78.06%)
Total net profit/(loss) $5,024 (78.06%)
Interim Dividend
Amount per Quoted Equity
Security
No interim dividend declared
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.05 $1.04
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to Shareholder Update
Authority for this announcement
Name of person

authorised
to make this announcement
Takeshi Ito
Contact person for this
announcement
Takeshi Ito
Contact phone number +64 21 591 531
Contact email address takeshi.ito@cdli.co.nz
Date of release through MAP

8 August 2023

Unaudited financial statements accompany this announcement.

---

DIRECTORS’ REVIEW

Financial Performance:

CDL Investments New Zealand Limited (“CDI”) made an unaudited operating profit after tax of $5.02 million (2022: $22.90 million)
for the six month period ending 30 June 2023. We achieved an operating profit before tax of $6.98 million (2022: $31.81 million).
Total revenue and other income for the period was $11.97 million (2022: $47.81 million). Net Asset Backing (at cost) for the
period under review was 104.99 cents per share (2022: 104.08 cents per share).

The results reflect the dramatic change in market sentiment which started in Q3 2022 and has continued into 2023. It is also
important to note that our results for the same period in 2022 were boosted by a one-off contribution from the sale of
commercial land at Wiri.

We do expect market and consumer sentiment to moderate and improve over the remainder of 2023 and into 2024 but we also
recognise that current economic pressures are unlikely to result in any dramatic market upswing in the immediate term.


Portfolio update:

During the last six months, we have sought to make acquisitions to support and grow our existing land portfolio. We have entered
into contracts for a total of 48.32 hectares of land in Hamilton (adjacent to our existing land holding) with two new acquisitions
in Nelson/ Tasman and one in Christchurch. One purchase in Hamilton settled in early August. These acquisitions complement
our existing holding with the Nelson/ Tasman and Christchurch properties providing us with short term development
opportunities and the Hamilton property allowing design improvements to our future master planning.

Work is being done to prepare the groundwork for additional stages at Prestons Park (Canterbury) as well as completing
infrastructure works around the local area including the Snellings Drain and Mairehau Road upgrades. The maturity of the
development allows us to pace our future development appropriately to match demand.

Development planning work also continues for the Iona Block land in Havelock North. The Stage 1 subdivision consent has now
been granted and we planning to commence construction later in the year as soon as the subdivision infrastructure plans and
infrastructure provision agreements are approved. In addition, the development team has lodged the Iona Stage 2 resource
consent applications with the Hastings District and Hawkes Bay Regional Councils.

Our diversification into commercial property over recent years now comes into its own and provides us with additional revenue
which will also assist our year-end results.


Commentary and Outlook:

There is much to be positive about even in a tough trading environment. Shareholders can take comfort from the fact that the
Board and Management are both equally determined to ensure that the company remains secure over the long term both
financially and from an asset point of view. The company’s strong cash reserves means that CDI not only remains in a strong
position to withstand this difficult trading period, but is in a financial position to maintain its long term approach and grow the
company’s portfolio for the current and future generations. This is an environment we have encountered before and the cyclical
nature of the property markets mean that we will always encounter, and need to deal with, market peaks and troughs.

While we are optimistic that we can increase the number of sales in the second half of this year, we recognise that the total
number of section sales that we will achieve in 2023 will be below the number we have seen in previous years. This will have a
corresponding impact on our overall results for the year but we fully expect that 2023 will be another profitable year.

With new development managers coming on board this year, we continue to add to our highly capable and experienced team,
all of whom are well equipped to deal with our current and future challenges. We also remain on track to grow our future
development portfolio which will secure our position for the next few years. Management is actively looking at other
opportunities to add to our land portfolio including projects which are already consented and can be completed and made ready
for sale relatively quickly. We look forward to sharing more with shareholders and the wider market at the appropriate time.


Colin Sim
Chairman
8 August 2023

---

Page 1
CDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its SubsidiaryCDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its Subsidiary


Condensed Interim Statement of Comprehensive Income
For the half year ended 30 June 2023 (unaudited)




Group
GroupGroup
Group





In thousands of dollars

Note
NoteNote
Note

Unaudited
Unaudited Unaudited
Unaudited
6 months to
6 months to 6 months to
6 months to
30/06/23
30/06/2330/06/23
30/06/23


Unaudited
Unaudited Unaudited
Unaudited
6 months to
6 months to 6 months to
6 months to
30/06/22
30/06/2230/06/22
30/06/22



Property sales 10,626 47,603
Rental income from investment properties 1,219 84
Revenue
RevenueRevenue
Revenue

11,845
11,84511,845
11,845 47,687
47,68747,687
47,687

Cost of sales (4,372) (14,050)







Gross profit
Gross profitGross profit
Gross profit 7,473
7,4737,473
7,473

33,637
33,63733,637
33,637



Other income 123 127
Administrative expenses (742) (275)
Property expenses (222) (257)
Selling expenses (294) (1,089)
Other expenses (1,067) (849)

Results from operating activities
Results from operating activitiesResults from operating activities
Results from operating activities

5,271
5,2715,271
5,271

31,294
31,29431,294
31,294



Finance income 1,713 513
Finance costs (6) (2)



Net finance income
Net finance incomeNet finance income
Net finance income

1,
1,1,
1,70
7070
707
77
7

511
511511
511









Profit before income tax
Profit before income taxProfit before income tax
Profit before income tax

6,97
6,976,97
6,978
88
8

31,805
31,80531,805
31,805



Income tax expense (1,954) (8,906)







Profit for the period
Profit for the periodProfit for the period
Profit for the period

5,024
5,0245,024
5,024

22,899
22,89922,899
22,899



Total comprehensive income for the period
Total comprehensive income for the periodTotal comprehensive income for the period
Total comprehensive income for the period

5,024
5,0245,024
5,024

22,899
22,89922,899
22,899



Profit attributable to:
Profit attributable to:Profit attributable to:
Profit attributable to:


Equity holders of the parent 5,024 22,899

Total comprehensive income for the period
Total comprehensive income for the periodTotal comprehensive income for the period
Total comprehensive income for the period

5,024
5,0245,024
5,024

22,899
22,89922,899
22,899



Basic and Diluted Earnings per share (cents per share) 3 1.73 7.94















































The accompanying notes form part of, and should be read in conjunction with these financial statements.

Page 2
CDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its SubsidiaryCDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its Subsidiary


Condensed Interim Statement of Changes in Equity
For the half year ended 30 June 2023 (unaudited)




Group
GroupGroup
Group





In thousands of dollars Note
NoteNote
Note

Unaudited
UnauditedUnaudited
Unaudited


Share Capital
Share CapitalShare Capital
Share Capital


Unaudited
Unaudited Unaudited
Unaudited
Retained
Retained Retained
Retained
Earnings
EarningsEarnings
Earnings


Unaudited
Unaudited Unaudited
Unaudited
Total Equity
Total EquityTotal Equity
Total Equity











Balance at 1 January 2022 64,454 221,926 286,380

Total comprehensive income for the period
Total comprehensive income for the periodTotal comprehensive income for the period
Total comprehensive income for the period


Profit for the period - 22,899 22,899
Total
Total Total
Total comprehensive income for the period
comprehensive income for the periodcomprehensive income for the period
comprehensive income for the period

-
--
-

22,899
22,89922,899
22,899

22,899
22,89922,899
22,899



Transactions with owners of the Company
Transactions with owners of the CompanyTransactions with owners of the Company
Transactions with owners of the Company


Shares issued under dividend reinvestment plan 2 1,375 - 1,375
Dividend to shareholders 2

- (10,063) (10,063)
Supplementary dividend

-

(204) (204)
Foreign investment tax credits

-
--
-

204 204
Balance at
Balance at Balance at
Balance at 30 June
30 June30 June
30 June

202
202202
2022
22
2

6
66
65
55
5,
,,
,829
829829
829

234,762
234,762234,762
234,762

300,591
300,591300,591
300,591



Balance at 1 January 2023 65,829 243,052 308,881

Total comprehensive income for the period
Total comprehensive income for the periodTotal comprehensive income for the period
Total comprehensive income for the period


Profit for the period - 5,024 5,024
Total
Total Total
Total comprehensive income for the period
comprehensive income for the periodcomprehensive income for the period
comprehensive income for the period

-
--
-

5,024
5,0245,024
5,024

5,024
5,0245,024
5,024



Transactions with owners of the Company
Transactions with owners of the CompanyTransactions with owners of the Company
Transactions with owners of the Company


Shares issued under dividend reinvestment plan 2 1,489 - 1,489
Dividend to shareholders 2

- (10,108) (10,108)
Supplementary dividend

-

(211) (211)
Foreign investment tax credits

-
--
-

211 211
Balance at 3
Balance at 3Balance at 3
Balance at 30
00
0

June
June June
June 202
202202
2023
33
3

67,318
67,31867,318
67,318

237,968
237,968237,968
237,968

305,286
305,286305,286
305,286


















































































The accompanying notes form part of, and should be read in conjunction with these financial statements.

Page 3
CDL Investments New Zealand
CDL Investments New Zealand CDL Investments New Zealand
CDL Investments New Zealand Limited and its Subsidiary
Limited and its SubsidiaryLimited and its Subsidiary
Limited and its Subsidiary


Condensed Interim Statement of Financial Position
For the half year ended 30 June 2023 (unaudited)




Group
GroupGroup
Group





In thousands of dollars Note
NoteNote
Note

Unaudited
Unaudited Unaudited
Unaudited
as at
as at as at
as at
30/06/23
30/06/2330/06/23
30/06/23


Audited
Audited Audited
Audited
as at
as at as at
as at
31/12/22
31/12/2231/12/22
31/12/22


Unaudited
Unaudited Unaudited
Unaudited
as at
as at as at
as at
30/06/22
30/06/2230/06/22
30/06/22


SHAREHOLDERS’ EQUITY
Issued capital 67,318 65,829 65,829
Retained earnings 237,968 243,052 234,762



Total Equity
Total EquityTotal Equity
Total Equity

305,286
305,286305,286
305,286

308,881
308,881308,881
308,881

300,591
300,591300,591
300,591



Represented by:

NON CURRENT ASSETS
Property, plant and equipment 87 98 36
Development property 182,336 186,728 188,361
Investment property 36,156 36,381 33,084
Investment in associate 7 2 2 2

Total Non Current Assets
Total Non Current AssetsTotal Non Current Assets
Total Non Current Assets 218,581
218,581218,581
218,581

223,209
223,209223,209
223,209

221,483
221,483221,483
221,483




CURRENT ASSETS
Cash and cash equivalents 45,022 31,667 15,076
Short term deposits 20,075 40,075 60,000
Trade and other receivables 3,638 2,327 1,483
Income tax receivable 372 - -
Development property 18,860 16,420 8,706

Total Current Assets
Total Current AssetsTotal Current Assets
Total Current Assets

87,967
87,96787,967
87,967

90,489
90,48990,489
90,489

85,265
85,26585,265
85,265











Total Assets
Total AssetsTotal Assets
Total Assets



306,548
306,548306,548
306,548

313,698
313,698313,698
313,698

306,748
306,748306,748
306,748






NON CURRENT LIABILITIES
Deferred tax liabilities 339 153 74
Lease liability 45 58 15

Total Non Current liabilities
Total Non Current liabilitiesTotal Non Current liabilities
Total Non Current liabilities 384
384384
384

211
211211
211

89
8989
89




CURRENT LIABILITIES
Trade and other payables 723 1,340 1,698
Employee entitlements 127 118 83
Income tax payable - 3,122 4,278
Lease liability 28 26 9

Total Current Liabilities
Total Current LiabilitiesTotal Current Liabilities
Total Current Liabilities

878
878878
878

4,606
4,6064,606
4,606

6,068
6,0686,068
6,068











Total Liabilities
Total LiabilitiesTotal Liabilities
Total Liabilities

1,262
1,2621,262
1,262

4,817
4,8174,817
4,817

6,157
6,1576,157
6,157











Net Assets
Net AssetsNet Assets
Net Assets

305,286
305,286305,286
305,286

308,881
308,881308,881
308,881

300,591
300,591300,591
300,591


















The accompanying notes form part of, and should be read in conjunction with these financial statements.

Page 4
CDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its SubsidiaryCDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its Subsidiary


Condensed Interim Statement of Cash Flows
For the half year ended 30 June 2023 (unaudited)



Group
GroupGroup
Group





In thousands of dollars Note
NoteNote
Note

Unaudited
Unaudited Unaudited
Unaudited
6 months to
6 months to 6 months to
6 months to
30/06/23
30/06/2330/06/23
30/06/23


Unaudited
Unaudited Unaudited
Unaudited
6 months to
6 months to 6 months to
6 months to
30/06/22
30/06/2230/06/22
30/06/22



CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Cash was provided from:Cash was provided from:
Cash was provided from:


Receipts from customers 10,408 51,949
Interest received 1,962 374



Cash was applied to:
Cash was applied to:Cash was applied to:
Cash was applied to:
Payment to suppliers (4,250) (13,587)
Payment to employees (575) (359)
Purchase of development land - (19,380)
Income tax paid (5,050) (8,195)







Net Cash Inflow from Operating Activities

2,495
2,4952,495
2,495

10,802
10,80210,802
10,802



CASH FLOWS FROM INVESTING ACTIVITIES
Cash was
Cash wasCash was
Cash was

provided from:
provided from:provided from:
provided from:


Short term deposits 40,075 30,000

Cash was applied to:
Cash was applied to: Cash was applied to:
Cash was applied to:


Development of investment property (286) (9,851)
Purchase of plant and equipment (6) -
Short term deposits (20,075) (60,000)

Net Cash Inflow/(Outflow) from Investing Activities

19,708
19,70819,708
19,708

(39,851)
(39,851)(39,851)
(39,851)



CASH FLOWS FROM FINANCING ACTIVITIES
Cash was applied to:
Cash was applied to:Cash was applied to:
Cash was applied to:
Dividend paid (8,619) (8,688)
Principal repayment of lease liability (18) (8)
Supplementary dividend paid (211) (204)

Net Cash Outflow from Financing Activities (8,
(8,(8,
(8,848
848848
848)
))
)

(
((
(8,900
8,9008,900
8,900)
))
)



Net Increase/(Decrease) in Cash and Cash Equivalents

13,355 (37,949)
Add Opening Cash and Cash Equivalents 31,667 53,025

Closing Cash and Cash Equivalents
Closing Cash and Cash EquivalentsClosing Cash and Cash Equivalents
Closing Cash and Cash Equivalents

45,022
45,02245,022
45,022

15,076
15,07615,076
15,076



















































The accompanying notes form part of, and should be read in conjunction with these financial statements.

Page 5
CDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its SubsidiaryCDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its Subsidiary


Condensed Interim Statement of Cash Flows - continued
For the half year ended 30 June 2023 (unaudited)



Group
GroupGroup
Group





In thousands of dollars Note
NoteNote
Note

Unaudited
Unaudited Unaudited
Unaudited
6 months to
6 months to 6 months to
6 months to
30/06/23
30/06/2330/06/23
30/06/23


Unaudited
Unaudited Unaudited
Unaudited
6 months to
6 months to 6 months to
6 months to
30/06/22
30/06/2230/06/22
30/06/22



RECONCILIATION OF PROFIT FOR THE PERIOD TO CASH FLOWS
FROM OPERATING ACTIVITIES


Net Profit after Taxation

5,024 22,899



Adjusted for non cash items:
Adjusted for non cash items:Adjusted for non cash items:
Adjusted for non cash items:


Depreciation of investment property 511 99
Depreciation of plant & equipment 3 1
Depreciation of right-of-use assets 14 7
Income tax expense 1,954 8,906

Adjustments for movements in working capital:
Adjustments for movements in working capital:Adjustments for movements in working capital:
Adjustments for movements in working capital:
(Increase)/Decrease in receivables (1,311) 3,996
(Increase)/Decrease in development property 1,952 (11,326)
Decrease in payables (602) (5,585)

Cash generated from operating activities
Cash generated from operating activitiesCash generated from operating activities
Cash generated from operating activities

7,545
7,5457,545
7,545

18,997
18,99718,997
18,997



Income tax paid (5,050) (8,195)

Cash Inflow from Operating Activities
Cash Inflow from Operating ActivitiesCash Inflow from Operating Activities
Cash Inflow from Operating Activities

2,495
2,4952,495
2,495

10,802
10,80210,802
10,802




























































The accompanying notes form part of, and should be read in conjunction with these financial statements.

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


Notes to the Condensed Interim Financial Statements
For the half year ended 30 June 2023 (unaudited)

1.
1.1.
1.

Significant Accounting
Significant Accounting Significant Accounting
Significant Accounting Policies
PoliciesPolicies
Policies





Reporting Entity
Reporting EntityReporting Entity
Reporting Entity


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

The condensed interim financial statements of the Company as at and for the half year ended 30 June 2023
comprises the Company and its subsidiary (together referred to as the “Group”).

The principal activities of the Group are the development and sale of residential land properties and rental income
from the ownership of development properties and investment properties comprising commercial warehousing
and retail shops.



(a)
(a)(a)
(a) Statement
Statement Statement
Statement of compliance
of complianceof compliance
of compliance


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

The accounting policies applied by the Group in these condensed financial statements are the same as those
applied by the Group in its consolidated financial statements for the year ended 31 December 2022.

The condensed interim financial statements were authorised for issuance on 8 August 2023.



2.
2.2.
2.

Capital & Reserves
Capital & ReservesCapital & Reserves
Capital & Reserves



Share Capital
Share CapitalShare Capital
Share Capital


Under the Company’s Dividend Reinvestment Plan, an additional 1,977,136 shares were issued on 12 May 2023
(2022: 1,294,674) at a strike price of $0.7530 (2022: $1.0624).

At 30 June 2023, the authorised share capital consisted of 290,784,833 fully paid ordinary shares (2022:
288,807,697).



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

2023
20232023
2023

2022
20222022
2022


3.5 cents per qualifying ordinary share (2022: 3.5 cents) 10,108 10,063
10,
10,10,
10,108
108108
108

10,063
10,06310,063
10,063





3
33
3.
..
.

Earnings Per Share
Earnings Per ShareEarnings Per Share
Earnings Per Share



The calculation of basic and diluted earnings per share at 30 June 2023 of 1.73 cents (2022: 7.94 cents) was
based on the profit attributable to ordinary shareholders of $5,024,000 (2022: $22,899,000); and weighted
average number of shares of 290,125,788 (2022: 288,376,139) on issue in the period.

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


Notes to the Condensed Interim Financial Statements
For the half year ended 30 June 2023 (unaudited)



4
44
4.
..
.

Segment
SegmentSegment
Segment

Reporting
ReportingReporting
Reporting





Operating segments
Operating segmentsOperating segments
Operating segments


The operating segments of the Group consists of property operations, comprising the development and sale of
residential land sections and rental income from development properties and investment properties.

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

An operating segment is a distinguishable component of the Group:
• that is engaged in business activities from which it earns revenues and incurs expenses,
• whose operating results are regularly reviewed by the Group’s chief operating decision maker to make
decisions on resource allocation to the segment and assess its performance, and
• for which discrete financial information is available.

Operating segments
Operating segmentsOperating segments
Operating segments





Residential
Residential Residential
Residential l
ll
land
and and
and
d
dd
development
evelopmentevelopment
evelopment


Investment
Investment Investment
Investment p
pp
property
ropertyroperty
roperty

Group
GroupGroup
Group


In thousands of dollars
6 months
to
30/06/23
6 months
to
30/06/22
6 months
to
30/06/23
6 months
to
30/06/22
6 months
to
30/06/23
6 months
to
30/06/22
External revenue 10,749 47,730 1,219 84 11,968 47,814
Earnings before interest,
depreciation & amortisation 4,600 31,414 1,199 (13) 5,799 31,401
Finance income 1,713 513 - - 1,713 513
Finance expense (6) (2) - - (6) (2)
Depreciation and amortisation (3) (1) (511) (99) (514) (100)
Depreciation of Right-of-use
assets (14) (7) - - (14) (7)
Profit before income tax 6,290 31,917 688 (112) 6,978 31,805
Income tax expense (1,761) (8,937) (193) 31 (1,954) (8,906)
Profit after income tax 4,529 22,980 495 (81) 5,024 22,899

Cash & cash equivalents and
short term bank deposits 65,097 75,076 - - 65,097 75,076
Tax receivable 372 - - - 372 -
Other segment assets 204,921 198,586 36,156 33,084 241,007 231,670
Investment in associates 2 2 - - 2 2
Total assets 270,392 273,664 36,156 33,084 306,548 306,748



Segment liabilities (923) (1,805) - - (923) (1,805)
Tax liabilities (339) (4,352) - - (339) (4,352)
Total liabilities (1,262) (6,157) - - (1,262) (6,157)



Plant and equipment expenditure 6 - - - 6 -
Investment property expenditure - - 286 9,851 286 9,851
Residential land development
expenditure 2,420 5,996 - - 2,420 5,996
Purchase of land for residential
land development - 19,380 - - - 19,380

Geographical segments
Geographical segmentsGeographical segments
Geographical segments


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

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

Page 8
CDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its SubsidiaryCDL Investments New Zealand Limited and its Subsidiary
CDL Investments New Zealand Limited and its Subsidiary


Notes to the Condensed Interim Financial Statements
For the half year ended 30 June 2023 (unaudited)

5.
5.5.
5.

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



Subsequent to the six month period ended 30 June 2023, the Group settled the purchase of a parcel of land in
Hamilton for approximately $4.0 million. The capital committed is included in Note 8.

6.
6.6.
6.

Changes in Contingent Liabilities since last Annual Balance Sheet Date
Changes in Contingent Liabilities since last Annual Balance Sheet DateChanges in Contingent Liabilities since last Annual Balance Sheet Date
Changes in Contingent Liabilities since last Annual Balance Sheet Date



The Group was named as respondents in a High Court judicial review proceeding which was brought by the
Applicant, Winton Property Investments Limited, in relation to a recent decision relating to the Group’s acquisition
of land in Havelock North which was advised to the market on 21 July 2021 and which has settled. The Applicant
sought, inter alia, an order setting aside the decision of the Overseas Investment Office in respect of the approval
and/or a declaration that Ministers erred at law in making their decision to grant consent. The matter was heard
in the High Court in February 2022 and a decision against the Applicant was handed down in March 2022. Winton
has appealed to the Court of Appeal and the appeal hearing was held in May 2023. A decision has yet to be
handed down by the Court of Appeal. The Group still considers the likelihood of the Applicant being successful
as low. It is not possible to determine what the financial effect would be, if any, should the appeal be successful.

7
77
7.
..
.

Related Party Transactions
Related Party TransactionsRelated Party Transactions
Related Party Transactions



CDL Investments New Zealand Limited is a subsidiary of Millennium & Copthorne Hotels New Zealand Limited
by virtue of Millennium & Copthorne Hotels New Zealand Limited owning 65.54% (2022: 65.99%) of the Company
and having two out of six of the Directors on the Board. Millennium & Copthorne Hotels New Zealand Limited is
70.79% (2022: 70.79%) owned by CDL Hotels Holdings New Zealand Limited (computed on voting shares), which
is a wholly owned subsidiary of Millennium & Copthorne Hotels Ltd in the United Kingdom. The ultimate holding
company is Hong Leong Investment Holdings Pte Ltd in Singapore.

During the six month period ending 30 June 2023 CDL Investments New Zealand Limited has reimbursed its
parent, Millennium & Copthorne Hotels New Zealand Limited, $205,000 (2022: $180,000) for shared office
expenses incurred by the parent on behalf of the Group and reimbursed its parent for its portion of insurance
premiums of $28,000 (2022:$28,000).

Subsidiary
SubsidiarySubsidiary
Subsidiary

Principal Activity
Principal ActivityPrincipal Activity
Principal Activity

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


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


Balance Date
Balance DateBalance Date
Balance Date


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

Associate
AssociateAssociate
Associate

Principal Activity
Principal ActivityPrincipal Activity
Principal Activity

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


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


Balance Date
Balance DateBalance Date
Balance Date


Prestons Road Limited Service Provider 33.33 31 March

8.
8.8.
8.

Commitments
CommitmentsCommitments
Commitments



As at 30 June 2023, the Group had entered into contractual commitments for development expenditure,
construction of investment properties, and purchases of land. Contractual agreements for the purchase of land
are subject to a satisfactory outcome of the Group's due diligence process, board approval, and OIO approval.
Development expenditure represents amounts contracted and forecast to be incurred in the remainder of 2023
in accordance with the Group’s development programme.

In thousands of dollars

2023
20232023
2023

2022
20222022
2022


Development expenditure 21,471 15,451
Land purchases 20,407 -
Capital expenditure on investment properties 60 3,100
41,938
41,93841,938
41,938

18,551
18,55118,551
18,551

---

8 August 2023

CDL INVESTMENTS TARGETS GROWTH
DESPITE LOWER FIRST HALF SALES

NZX-listed property development and investment company CDL Investments New Zealand Limited (NZX:CDI) today
released its (unaudited) results for the six months to 30 June 2023 and reported an operating profit after tax of
$5.02 million (2022: $22.90 million) on revenue of $11.97 million (2022: $47.81 million).

“The downturn we saw starting last year has continued into 2023 and this has impacted on our sales and revenue
to date. We also did not have any one-off high value land sales like we did in 2022 which boosted our half year
results by $29 million”, said CDI’s Chairman Colin Sim.

“That said, we do expect market sentiment to moderate and improve over the remainder of 2023 and into 2024
but we also recognise that current economic pressures will not result in any dramatic market upswing, at least this
year”, he said.

CDI’s Managing Director Jason Adams echoed Mr Sim’s comments but also noted that the current climate created
some potential new opportunities for CDI.

“We are fortunate to have a very solid financial position with no external debt and good cash reserves, which is
proving to be very beneficial for us as we look to secure land for future development and sales” he said.

“In the past six months we’ve entered into agreements for 48 hectares of new land and we are actively looking at
other opportunities that augment our existing development land portfolio, he said.

Mr. Adams also noted that CDI was looking to progress with consents for development at key sites.

“At our Iona Block in Havelock North, the Stage 1 resource consents have now been granted and the development
team is busy obtaining infrastructure design approvals and preparing infrastructure provision agreements so that
we can commence site works later this year to begin sales in the second half of next year. The resource consent
applications for Iona Stage 2 have also been lodged with Hastings District and Hawkes Bay Regional Councils”.

“We are also looking to add stages where demand warrants it at Prestons Park in Canterbury and we will pace the
work accordingly. Both are critical to our future success”, he said.

Mr. Sim said that CDI would remain absolutely focused on its core business during the remainder of the year in
order to maximise its revenue and profit.

“Land development and section sales are what we do and do best. We will be doing whatever we can to maximise
our sales for this year while also preparing the groundwork for next year and beyond. At the same time, we aim
to enhance and expand our portfolio so that we can continue to provide our shareholders with consistent returns
over the years ahead”, he said.

ENDS


Issued by CDL Investments New Zealand Limited

Any inquiries please contact:
Jason Adams
Managing Director
CDL Investments New Zealand Ltd
+64 27 683 7220