Annual Report 2019

CHAIRMAN AND CHIEF EXECUTIVE OFFICER’S STATEMENT FAR EAST CONSORTIUM INTERNATIONAL LIMITED 12 As you may know, we have a very clear business focus to become a leader in providing overseas properties, hospitality and entertainment services to the Asia’s middle class. I am pleased to report to our Shareholders that this strategic positioning is yielding encouraging results with record-breaking profitability last year. The Group experienced continuous development and expansion through the implementation of a series of effective business initiatives. We made several key achievements, and I am particularly proud that our recurring cash flow business grew strongly and we secured exciting opportunities that allow the Group to continue to grow in the coming years. We continued to pursue our “Dual-Engine” development strategy targeting growth in both recurring cashflow streams and built-to- sell business. Great efforts have been made in all three recurring cashflow businesses, namely hotel, car park, and gaming and entertainment operations, with recurring income accounted for more than half of our core cash profit. Hotel segment achieved encouraging growth mainly driven by overall RevPAR growth and new acquisitions. The business also has a clear growth visibility with many new hotels in the development pipeline. In respect of our car park operations, we continued our expansion in the UK and continental Europe, pursuing car park acquisitions with high yields. Gaming and entertainment segment became our new income contributor following the acquisition of TWC and investment in a stake in The Star. With the first phase of Queen’s Wharf Brisbane integrated resort expected to open in late 2022, we can expect the contribution from this segment will continue to grow. We believe that our strategy, featuring regional diversification and growing our four core businesses and reallocation of capital, will enable us to gain a higher return on equity than our industry peers in the long term.