Annual Report 2019

FAR EAST CONSORTIUM INTERNATIONAL LIMITED 20 MANAGING DIRECTOR’S REPORT Results Highlights For FY2019, the Group recorded revenue of HK$6,842 million (FY2018: HK$5,831 million), a 17.3% increase as compared to FY2018. This growth was driven by higher sales recognition in residential developments as well as an equally strong performance in recurring income businesses helped by RevPAR growth in Hong Kong and the acquisition of TWC. Despite the lack of gain on disposal of hotel (FY2018: HK$320 million), we recorded a net profit of HK$1,714 million in FY2019 allowing us to continue to pay a high dividend. Reflecting confidence in the financial position of the Group, the Board recommended a final dividend of HK$18 cents per Share. Together with an interim dividend of HK$4 cents per Share, total dividend for the Year amounts to HK$22 cents per Share, representing a payout ratio of 30.2%. The Group is committed to a progressive dividend policy with a target payout ratio of 30% to 40% of our net profit, subject to capital expenditure requirements. Over the years, we have built a solid development pipeline across our regional operations and the gross development value now reached HK$50 billion including acquisitions made post 31 March 2019. This pipeline, which is sufficient for 8-10 years, provides a clear visibility for revenue contribution in the coming years. We are continuing to add new hotels to our portfolio with 15 hotels currently under planning/construction. We remain optimistic about the Asian tourism potential and the significant value upside in hotel developments. In order to build customer loyalty our hotel division launched a loyalty programme during the year, with 14 hotels worldwide under Dorsett Group participated. As at the end of 31 March 2019, the programme has over 114,000 members. Dorsett Singapore Care Park Operation Center Our car park division continued to grow strongly in the past year with 10,275 car park bays added. Revenue continued to increase during the Year to reach HK$720 million. On our gaming operation, TWC casinos recorded an increase in revenue compared to the same 11-month period pre-acquisition. During the Year, we carried out integration of TWC team with our UK operations. We also implemented strategies to promote European and Asian visitation to our casino properties which will continue in the FY2020. Our investment in The Star generated good dividend income. The strategic partnership which includes the development of The Star’s sites in Gold Coast and Sydney is expected to generate financial returns in the coming years as the mixed-use development completes in phases.