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CNA
6 days ago
- Business
- CNA
CDL's Kwek Leng Beng, Sherman Kwek announce 3.9% profit growth in 1H marked by boardroom tussle
SINGAPORE: Following an acrimonious feud in February between City Developments (CDL) executive chairman Kwek Leng Beng and his son Sherman Kwek, the duo put up a united front on Wednesday (Aug 13) to report a 3.9 per cent increase in profit for the first half of the year. The saga saw Mr Kwek, 84, previously accusing his son of an attempted 'coup' and filing a lawsuit that was dropped two weeks later. The younger Mr Kwek, 49, who is CDL's group chief executive, described his father's actions as 'extreme' at the time. Acknowledging the public spat before a financial results briefing at M Hotel Singapore City Centre, the elder Kwek said in a statement: "1H 2025 marked a pivotal chapter for our group as we overcame internal challenges with tenacity and fortitude. 'We have put past issues behind us, emerging stronger and more unified.' Mr Sherman Kwek said: 'Despite some instability in the earlier part of the year due to internal issues, the ensuing period has been marked by stabilisation, renewed alignment and disciplined execution.' For the half year that ended on Jun 30, CDL reported a revenue of S$1.7 billion (US$1.33 billion), up from S$1.6 billion a year ago. The company's net profit after tax and non-controlling interest was S$91.2 million, compared with S$87.8 million in the first six months of 2024. CDL said its performance was adversely affected by foreign exchange losses of S$63.1 million, a reversal from a foreign exchange gain of S$51.3 million in the same period last year. 'Excluding these exchange effects, the group's (net profit after tax and non-controlling interest) would have jumped 322.7 per cent to S$154.3 million,' the company said in a press release. It said the depreciation of the US dollar significantly affected the group, largely because of US-dollar denominated inter-company loans, which were extended to fund previous US hotel acquisitions and working capital requirements. SUCCESSION PLANNING? At the media and analyst briefing on Wednesday, the father and son entered the ballroom together with other executives, with Mr Kwek Leng Beng leading the group in a light blue suit. The two posed for a photo before the briefing, before Mr Kwek Eik Sheng – nephew of the elder Mr Kwek – joined in. He was named as a possible interim group CEO during the feud. Also present was group chief financial officer Yiong Yim Ming and group general manager Chia Ngiang Hong. During the press conference, Mr Kwek Leng Beng was asked if he was still confident in succession planning given the feud, and what the timeline might be. After his son repeated the question to him, the senior Mr Kwek responded by reiterating what he said in the company's press release – that the board and management are aligned and focused on effective execution and value creation. Mr Sherman Kwek said the company usually does not speak much about succession plans. 'We haven't really talked much about that in the last 20 years, nor have we ever given a timeline. So I think these things are fluid, and ultimately it will depend on discussions at that point in time,' he said. He added that it will depend on how shareholders and the board view things. 'For us, it's business as usual as we move forward now. And I think, as the chairman has mentioned, we put the … early part of the first half's events behind us.' Following a question on the company's share price, the elder Mr Kwek spoke up again. 'As far as (the) succession plan is concerned, the past (is) over. We look forward to the future with strength, tenacity … I am always looking forward, and this should be the case,' he said to applause from the audience. THE CDL SAGA In late February, the elder Mr Kwek attempted to sack his son as CEO and filed a lawsuit over alleged governance lapses. He claimed that Mr Sherman Kwek and a group of directors bypassed CDL's nomination committee to push through changes in the board without proper review. The younger Mr Kwek said the legal action was not authorised by the majority of the board. Both men made several public statements, with Mr Sherman Kwek taking aim at Dr Catherine Wu, who was then-independent adviser to the board of Millennium & Copthorne Hotels Limited, a subsidiary of CDL. He said Dr Wu had been "interfering in matters going well beyond her scope" and "wields and exercises enormous influence". Dr Wu resigned from her role in March. CDL board member Philip Yeo also spoke up amid the tussle, siding with the elder Mr Kwek and saying that Mr Sherman Kwek's statement on Dr Wu was "an attempt to distract everyone from the matter at hand". Mr Yeo is a former civil servant who served as executive chairman of the Economic Development Board (EDB) from 1986 to 2001 and as executive co-chairman at EDB from 2001 to 2006. He stepped down as CDL director at the end of July. On Wednesday, in response to a question about whether a new board member will be appointed following Mr Yeo's departure, Mr Sherman Kwek said it was a matter for the nominating and remuneration committee to discuss and propose. 'So far, I have not heard anything, so I don't think so.' Two weeks after the Kwek feud came into the spotlight, Mr Kwek Leng Beng said he would drop legal action against his son. He said the board members had agreed to set aside their differences for the 'greater good' of the company and its stakeholders. At that time, the company's shares traded at S$4.94, down from S$5.12 in late February before a three-day trading halt was called.
Straits Times
23-04-2025
- Business
- Straits Times
Dispute over CDL directors' appointment casts shadow over property group at its AGM
Dispute over CDL directors' appointment casts shadow over property group at its AGM SINGAPORE – The appointment of two independent directors earlier in 2025, which played a key role in a recent public spat between the father-and-son team in charge of City Developments Limited (CDL), continued to cast a shadow on the firm. At the hotel and property group's annual general meeting on April 23, Mr Philip Yeo, a CDL board member since 2009 and a respected veteran civil servant who has served on many boards, voiced his unhappiness over how Ms Jennifer Duong Young and Ms Wong Su-Yen were appointed. 'I am very unhappy... I am very disappointed over the way the two new directors were appointed,' said a clearly agitated Mr Yeo, who added that there was no reason for the hasty appointments at a time when the nominating committee chair, Mr Chong Yoon Chou, had to rush to Malaysia to tend to his sick father. 'So, therefore, I am of the view that the two directors should not be appointed,' he said. Billionaire property tycoon Kwek Leng Beng, 84, who is executive chairman of CDL, had in February accused his son Sherman Kwek, 49, the firm's chief executive officer, and a group of directors of an attempted coup to oust him. Mr Sherman Kwek has denied any attempt to oust the chairman. Instead, he blamed Dr Catherine Wu – who has a long relationship with his father – for the dispute, as she 'wields and exercises enormous influence'. Mr Yeo's outburst was witnessed by around 450 CDL shareholders who had packed two rooms at the M Hotel in Anson Road, as well as others who had tuned in to the hybrid AGM. This is the first time CDL had to prepare an 'overflow room' in anticipation of a larger turnout. Some shareholders said they were at the AGM in hopes of seeing a united CDL. It was the first public event the father and son attended together since the spat. 'I am here to see if Kwek Leng Beng and his son have really moved on and are on talking terms,' said one shareholder, who wanted to be known only as Ms Lim. But she was disappointed as the two men hardly interacted even though they sat together. The AGM had started on a solemn note, with the chairman – clad in a grey suit and pink tie – convening the AGM and Mr Sherman Kwek going through the financials before Mr Yeo spoke up. Mr Yeo said in the companies he has been involved in, local and overseas, directors do not overthrow the chairman, prompting applause by shareholders in the ballroom. 'It must be consensus and not disregard for the chairman,' he said, emphasising the importance of unanimity among board members. 'Going forward, there must be good governance so that this cannot happen again, where the majority can bully the minority. I want to register my unhappiness,' Mr Yeo said, to another round of applause. One shareholder, Mr Chew Sutat, who retired from the Singapore Exchange (SGX) in 2021, said that when it comes to board matters, the majority does rule. Despite Mr Yeo's comments, all five of CDL's independent directors who were up for re-election – including Ms Duong Young and Ms Wong – were reappointed. The company currently has 11 board members, including Mr Kwek Leng Beng and Mr Sherman Kwek. Speaking to The Straits Times after the results were announced, Mr Yeo said he still has concerns. 'Yes, there is still a fundamental problem.' Mr Kwek Leng Beng told ST he was 'very happy' with the outcome. 'Look at it from a long-term perspective. Rest assured, I am very confident. Now we can look at the bigger picture,' he said. ST had reported that senior establishment figures in Singapore intervened and mediated a truce that put a halt to the acrimonious boardroom fight which had raised eyebrows within the region and in the UK, where CDL also has investments. On March 12, Mr Kwek Leng Beng withdrew his lawsuit, which was intended to stop his son and majority directors of CDL from implementing a number of board resolutions and restrain the two new independent directors from exercising their powers. Shareholders, who have seen CDL's share price sink to historic lows during the feud, clamoured to know the company's growth plans, and expressed hope that the company buys back its shares to help boost confidence. One shareholder said: 'It is time for the board to re-embark on its share buyback programme.' 'Judging from the interaction here, I have my doubts as to how the board can move forward, given the diversity of views,' said another shareholder. Mr Sherman Kwek said the key priority in 2025 will be to accelerate CDL's capital recycling initiatives so that it can cut its interest expense burden which has ballooned to almost $600 million, and use the proceeds from divestment of non-core assets to deploy into new acquisitions. He also said CDL will re-explore the real estate investment trust listing of its UK commercial assets on the SGX when conditions are right. CDL shelved the listing plan in late 2022. CDL share price closed at $4.90, up six cents, on April 23. Join ST's Telegram channel and get the latest breaking news delivered to you.
Korea Herald
18-03-2025
- Entertainment
- Korea Herald
CGV launches Korea's first AI film contest
Competition offers 50 million won in prizes for generative AI-produced short films CGV announced on Tuesday that it is hosting an artificial intelligence film competition, becoming the first theater chain in Korea to do so. The contest invites filmmakers to submit original, previously unpublished short films ranging from 10 to 20 minutes in length, created using generative AI technology. Entries can explore either the theme of "heroes and villains" or tackle any subject of the creator's choosing. Submissions will be judged on storytelling (40 percent), creativity (30 percent) and technical execution (30 percent). After initial screenings in which 15 finalists will be selected, a panel of industry experts will choose five winners through a combination of juried evaluations and online audience voting. The panel of judges includes notable figures such as "Concrete Utopia" (2023) director Um Tae-hwa; science YouTuber Kim Jae-hyeok, known as Orbit; author Kim Jung-hyuk; and CJ ENM's AI production director Jung Chang-ik. The competition offers approximately 50 million won ($34,550) in total prizes, with the grand prize winner receiving theatrical distribution through CGV. CJ ENM is also offering a special award to support content creators. "We kicked off this AI film competition in response to the growing buzz around generative AI tech," said Kim Jae-in, CGV's content and marketing manager. "We're hoping filmmakers can connect with audiences through these AI creations and maybe spark some extra interest in the theater-going experience too." The submission deadline is April 25, and the winners will be announced on May 23. Details are available through the CGV mobile app and website. This contest adds to Korean cinema's growing wave of AI filmmaking experiments. The film "It's Me, Mun-hee," released on Christmas Eve last year, starred veteran actress Na Mun-hee without her ever appearing on set. The 17-minute short used generative AI to transform the 84-year-old actress into various characters, including Santa Claus, a CIA fugitive and an astronaut. The short film "M Hotel," which premiered on Dec. 11, was created entirely with generative AI tools. Produced by CJ ENM, the 6.5-minute film reportedly took less than a month to complete, with four AI experts using more than 10 different AI tools. The project has earned recognition at film festivals in Venice, New York and Cannes.
