Annual Report 2019

FAR EAST CONSORTIUM INTERNATIONAL LIMITED 52 MANAGEMENT DISCUSSION AND ANALYSIS 3. Car park operations and facilities management The Group’s car park and facilities management business includes car park operations, operated under the brand “Care Park”, and property management services, operated under the brand “APM”. The car park business extends to both third party owned car parks and self-owned car parks and generates a stable recurring income for the Group. Care Park has been achieving steady growth over the years, with the Group’s portfolio under management growing to 494 car parks with approximately 99,143 car parking bays as at 31 March 2019, having added approximately 10,275 car parking bays during FY2019. Of the Group’s 494 car parks, 35 were self-owned car parks (23 in Australia, 3 in New Zealand, 1 in the United Kingdom, 2 in Malaysia and 6 in Hungary) comprising approximately 10,649 car parking bays, with the remaining 88,494 car parking bays in Australia, New Zealand, the United Kingdom, Hungary and Malaysia under management contracts entered into with third party car park owners, which include local governments, shopping malls, retailers, universities, airports, hotels, hospitals, government departments and commercial and office buildings. During FY2019, the Group’s car park business continued to deliver consistent profit contribution to the Group through organic growth, having leveraged on its central monitoring system, Care Assist, which enabled the management team of this business to have better control on the day-to-day operations of the business, providing a strong foundation for growth. With a management team rich in experience in car parking operations and the scalability offered by Care Assist, the Group is allocating more resources to the car parking division which is currently actively evaluating a number of acquisition opportunities in regions where the Group has an existing presence, with an aim of adding further self-owned car parks to its portfolio. Subsequent to FY2019, Care Park was appointed by Macquarie to manage and operate SKYCITY’s car park in Auckland, New Zealand, after Macquarie has won a 30-year concession for the car park at SKYCITY’s casino and convention centre, adding another 3,300 car parking bays to its growing portfolio. With the car parking division further expanding its operation to include property management services in Australia (mainly in Brisbane, Melbourne and Adelaide) and Johor Bahru, Malaysia, where the Group had 93 contracts in relation to facilities management services as at 31 March 2019, it is expected that the car park operations and facilities management business will continue to be a steadily growing source of recurring cash flow stream to the Group. 4. Gaming operations and management Europe Following on from the Group’s investment in the QWB Project, the Group completed the acquisition of TWC on 30 April 2018. Revenue from TWC’s gaming operations during the year of HK$197 million (which is net of gaming tax) represented eleven months’ contribution since the acquisition. TWC owns and operates a portfolio of 3 casinos in Czech Republic. All the casinos of TWC feature gaming tables and slot machines and are situated on the Czech borders with Germany and Austria catering to cross-border guests from these countries. With the Group’s implementation of the “Asian Wallet” strategy, the Group will endeavor to introduce Asian customers to TWC’s properties to supplement the Group’s hospitality offerings geographically. Route 55 Casino, Czech Republic Care Park