Annual Report 2019
FAR EAST CONSORTIUM INTERNATIONAL LIMITED 24 MANAGING DIRECTOR’S REPORT In Shanghai, following the acquisition of rental land in California Garden, we are looking to develop a long term rental operating business in Mainland China. Our car park division has grown strongly in the past year mainly through organic growth. As at 31 March 2019, we have 494 car parks with 99,143 bays, an increase of 10,275 bays compared to the beginning of FY2019. We expect the trend to continue in the coming year. A number of new initiatives to increase footfall are being implemented for our Czech gaming operation. This includes the introduction of new game types such as Asian style Baccarat and Poker, expansion of marketing channels and promoting cross selling efforts. We intend to use the TWC platform to grow our casino gaming business leveraging on the connections we have in Asia. We expect these efforts will generate positive results in the coming year. Route 59 Casino, Czech Republic Ceska Casino, Czech Republic For Queen’s Wharf Brisbane, demolition and enabling works has been completed and the next development phase which includes excavation and basement construction are underway. Located in the Brisbane CBD, the world-class integrated resort will include a casino, four world-class hotels (including a Dorsett hotel) and a retail mall. The first phase, which will include the casino, is currently expected to open in FY2023. The development is expected to provide a strong and steady cashflow stream to the Group. BCG, our mortgage lending platform, has demonstrated promising momentum since its establishment in 2016. The business, which currently focuses on providing secured loan financing to non-residents (or residents with foreign income), has established offices in Beijing, Hong Kong, Kuala Lumpur, Melbourne, Singapore and Shanghai. As at 31 March 2019, its loan book reached AUD617 million. The business is synergistic to our international property development business and we continue to see good growth prospects in this operation. It is important to note that, in addition to the value the Group generates through its operational activities, the Group also generates significant value through development of our hotel assets. This value has not been recorded or captured on our balance sheet due to the accounting standards we adopt. As at 31 March 2019, the revaluation surpluses for our hotel portfolio amounted to approximately HK$17.8 billion. In order to extract value from these hotel assets and unlock the surpluses accumulated over the years, we will either seek additional leverage based on market value of these properties or make selective disposals, or a combination of both. Our long-term goal is to drive a higher return on equity through our capital structure optimization and capital reallocation initiatives. The Group will however continue to adopt a prudent approach in managing its balance sheet in order that its good credit standing is protected.
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