Annual Report 2019

MANAGING DIRECTOR’S REPORT FAR EAST CONSORTIUM INTERNATIONAL LIMITED 18 POSITIONING FOR THE NEXT GROWTH PHASE FY2019 Key Achievements FY2019 was a busy year for the Group with a number of key milestones completed as we continued to implement our development initiatives. Despite significant global economic headwind, I am pleased to report that the Group posted record revenue (HK$6.8 billion), beating the previous record. All business divisions recorded growth with key contributions coming from both existing core businesses as well as new acquisitions. A summary of achievements and key initiatives are set out below: • Our consolidated revenue reached a new record of HK$6.8 billion; • We completed a number of projects, including Aspen Crest and Marin Point in Hong Kong. The Towers at Elizabeth Quay in Perth reached a key milestone and started the hand- over phase. Artra in Singapore also progressed well to stage completion and contributed to our property sales revenue. Sales of completed products such as Royal Riverside (Towers 1 to 5) in Guangzhou and King’s Manor and The Royal Crest II in Shanghai also contributed to our property sales revenue; • We launched seven new projects, including The Garrison and Manor Parc in Hong Kong, West Side Place (Tower 3) in Melbourne, Perth Hub in Perth, Royal Riverside (Tower 5) in Guangzhou, Hornsey Town Hall in London and MeadowSide (Plot 5) in Manchester; • We generated about HK$5.8 billion of presales on new launches during FY2019. The Group’s cumulative contracted presales as at 31 March 2019 amounted to a record-breaking HK$14.6 billion; • We made a number of land acquisitions including sites in Holland Road, Cuscaden Road and 21 Anderson Road in Singapore, Victoria Riverside of Northern Gateway in Manchester, a site in Baoshan District in Shanghai, and Union Street in Sydney (under a 50/50 JV with The Star) to replenish our land bank and add to our development pipeline; • We obtained masterplan approval for Northern Gateway and planning approval for additional towers in Gold Coast; • We recorded strong revenue growth in hotel operations. RevPAR growth in Hong Kong, full operation of Dorsett City London and contributions from the TWC Hotel Group in Europe helped our growth in the hotel division; • Construction started for a number of new hotels including the extension of Dorsett Shepherds Bush and Ritz- Carlton Melbourne. The Ritz-Carlton hotel in Perth is scheduled to open in the second half of FY2020; • Our car park business generated promising growth. New management contracts in Australia and regional growth in the UK and Europe from third party and self-owned car parks contributed to revenue increases; • Gaming is a new contributor to the Group following the acquisition of TWC and our approximately 5% interest in The Star. We are expecting higher growth in coming year with new initiatives;