Annual Report 2019

ANNUAL REPORT 2019 35 MANAGEMENT DISCUSSION AND ANALYSIS Revenue from car park operations and facilities management amounted to approximately HK$720 million in FY2019, an increase of 8.1% as compared to FY2018. Adjusted gross profit remained stable at HK$150 million for FY2019, as the Group incurred start up expenditures in the United Kingdom and Hungary where the Group is expanding its regional presence. During FY2019, 10,275 car park bays were added to the Group’s car park management portfolio. FY2019 was the first year when the Group started to see contributions from its gaming operations, following the Group’s acquisition of TWC in April 2018, and the Group’s investment in The Star which started to generate dividend income. Total revenue from gaming operations (net of gaming tax) was approximately HK$259 million during the year. Profit attributable to shareholders of the Company was at HK$1,714 million for FY2019, which increased by 9.4% as compared with HK$1,567 million for FY2018, despite that the gain on disposal of a hotel amounting to HK$320 million, and the exceptionally high gross margin achieved by our project in Shanghai in FY2018 were not repeated in FY2019. These were offset by the strong performance of the Group’s core businesses, as well as a one-off gain arising from a bargain purchase of TWC and value uplift of the Group’s interest in BCG in a restructuring. Adjusted cash profit (i) was at HK$1,457 million for FY2019, which showed a drop from the HK$1,649 million recorded for FY2018, as the gain on disposal of a hotel amounting to HK$320 million, and the exceptionally high gross margin achieved by our project in Shanghai in FY2018 were not repeated in FY2019. Excluding the gain on disposal of the hotel, core cash profit for FY2018 would have been approximately HK$1,329 million, with a 9.6% growth in FY2019. Within the core cash profit for FY2019, approximately HK$815 million was contributed by the Group’s recurring income business (including hotel operations, car park operations, gaming operations and property investment), showing a growth of 32.7% from the HK$614 million recorded for FY2018. Note : (i) Adjusted cash profit is calculated by adding depreciation and amortisation charges to, and subtracting post-tax fair value gain in investment properties and gain on bargain purchase of TWC from, net profit attributable to shareholders of the Company. The amounts are adjusted for minority interests. The Star, Sydney