Guoco Group Limited — Annual Report 2006

Jul 19, 2006

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FAR EAST HOTELS AND ENTERTAINMENT LIMITED

(Incorporated in Hong Kong with limited liability) (Stock Code: 0037)

ANNOUNCEMENT OF FINAL RESULTS FOR THE YEAR ENDED 31 MARCH 2006

RESULTS

The Board of Directors of Far East Hotels And Entertainment Limited (the “Company”) announces the audited consolidated financial results of the Company and its subsidiaries (the “Group”) for the year ended 31 March 2006 as follows:

CONSOLIDATED INCOME STATEMENT

For the year ended 31st March 2006

NOTES Turnover 4 Cost of sales Other income Administrative expenses Finance costs 5 Gain on disposal of investment properties Increase (decrease) in fair value of investment properties Write off of special reserve Share of results of associates (Loss) profit before taxation Taxation 6 (Loss) profit for the year (Loss) earnings per share 7 – basic CONSOLIDATED BALANCE SHEET As at 31st March 2006 NOTES Non-current Assets Property, plant and equipment Investment properties Prepaid lease payments Intangible asset Interests in associates Investments in securities Available-for-sale investments Deposits for acquisition of investment properties	2006 HK$ 63,528,819 (69,143,290) (5,614,471) 1,570,345 (13,487,009) (2,078,339) – 9,945 (37,225,662) (13,685,451) (70,510,642) – (70,510,642) Cents (14.42) 2006 HK$ 113,399,358 54,656,000 10,084,070 4,656,200 61,615,454 – 188,943,545 10,200,000 443,554,627	2005 HK$ (restated) 30,179,999 (36,662,127)
		(6,482,128) 5,551,376 (11,407,430) (3,908,175) 8,130,370 (2,210,890) – 13,929,605
		3,602,728 (112,427)
		3,490,301
		Cents 0.71
		2005 HK$ (restated) 93,579,243 74,850,810 10,335,652 6,541,600 133,386,080 188,291,795 – –
		506,985,180

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Current Assets Prepaid lease payments Investments in securities Held-for-trading investments Inventories Trade and other receivables 9 Amount due from an associate Amounts due from related companies Pledged bank deposits Bank balances and cash Current Liabilities Trade and other payables 10 Deposits received Amount due to associates Amount due to directors Amount due to related companies Amount due to a minority shareholder Obligation under finance leases – due within one year Secured bank borrowings – due within one year Bank overdraft Net Current Assets (Liabilities) Capital and Reserves Share capital Reserves Non-current Liabilities Deferred taxation Provision for long service payments Obligation under finance leases – due after one year Secured bank borrowings – due after one year	251,582 – 9,591,610 418,164 8,321,421 200,390 672,488 2,238,753 38,852,673 60,547,081 6,901,172 353,000 4,651,129 – 135,400 1,472,440 507,363 3,465,700 – 17,486,204 43,060,877 486,615,504 488,842,675 (54,105,608) 434,737,067 7,519,423 2,055,013 718,973 41,585,028 51,878,437 486,615,504	251,582 8,334,872 – 481,263 7,479,543 621,294 804,430 2,178,192 12,764,280
		32,915,456
		26,539,314 520,860 6,142,340 246,109 100,810 962,264 238,190 2,392,254 4,929,121
		42,071,262
		(9,155,806)
		497,829,374
		488,842,675 (23,029,221)
		465,813,454
		7,519,423 2,164,534 108,034 22,223,929
		32,015,920
		497,829,374

NOTES

1. Basis Of Preparation And Accounting Policies

The financial statements have been prepared on the historical cost basis except for certain properties and financial instruments, which are measured at fair values, and in accordance with Hong Kong Financial Reporting Standards. Certain comparative figures for last year have been restated to conform with the current year’s presentation.

2. Application Of Hong Kong Financial Reporting Standards/Changes In Accounting Policies

In the current year, the Group and the Company has applied, for the first time, a number of new Hong Kong Financial Reporting Standards (“HKFRSs”), Hong Kong Accounting Standards (“HKASs”) and Interpretations (“INTs”) (hereinafter collectively referred to as “new HKFRSs”) issued by the Hong Kong Institute of Certified Public Accountants (the “HKICPA”) that are effective for accounting periods beginning on or after 1st January, 2005. The application of the new HKFRSs has resulted in a change in the presentation of the consolidated income statement, consolidated balance sheet and consolidated statement of changes in equity. In particular, the presentation of share of tax of associates have been changed. The changes in presentation have been applied retrospectively. The adoption of the new HKFRSs has resulted in changes to the Group’s and the Company’s accounting policies in the following areas that have an effect on how the results for the current and prior accounting years are prepared and presented:

Hotel properties

In previous periods, hotel properties of the Group are carried at revalued amount and no depreciation was provided on hotel properties held on leases of more than twenty years. In the current year, the Group has applied the cost model of HKAS 16 Property, plant and equipment to account for the Group’s hotel properties. HKAS 16 requires the residual value of the hotel properties to be measured as the amount the Group would currently obtain from disposal of the hotel properties, after deducting the estimated costs of disposal, if the hotel properties were already of the age and in the condition expected at the end of their respective useful lives.

Upon application of HKAS 16 and Hong Kong Interpretation 2 The appropriate policies for hotel properties, the Group reviewed the residual values of its hotel properties, depreciation is provided on hotel properties and these changes are accounted for as a change in accounting policy in accordance with HKAS 8 Accounting policies, changes in accounting estimates and errors . In the meantime, deferred taxation relating to hotel properties has also been restated. Comparative figures have been restated (see Note 3 for the financial impact).

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Owner-occupied leasehold interest in land

In previous years, owner-occupied leasehold land and buildings were included in property, plant and equipment and measured using the cost model. In the current year, the Group has applied HKAS 17 Leases. Under HKAS 17, the land and buildings elements of a lease of land and buildings are considered separately for the purposes of lease classification, unless the lease payments cannot be allocated reliably between the land and buildings elements, in which case, the entire lease is generally treated as a finance lease. To the extent that the allocation of the lease payments between the land and buildings elements can be made reliably, the leasehold interests in land are reclassified to prepaid lease payments under operating leases, which are carried at cost and amortised over the lease term on a straight-line basis. This change in accounting policy has been applied retrospectively. Comparative figures have been restated (see Note 3 for the financial impact).

Investment properties

In the current year, the Group has applied HKAS 40 Investment property. The Group has elected to use the fair value model to account for its investment properties which requires gains or losses arising from changes in the fair value of investment properties to be recognized directly in profit or loss for the year in which they arise. In previous years, investment properties under the Statement of Standard Accounting Practice (“SSAP”) 13 were measured at open market values, with revaluation surplus or deficit credited or charged to investment property revaluation reserve unless the balance on this reserve was insufficient to cover a revaluation decrease, in which case the excess of the revaluation decrease over the balance on the investment property revaluation reserve was charged to the income statement. Where a decrease had previously been charged to the income statement and a revaluation surplus subsequently arose, that increase was credited to the income statement to the extent of the decrease previously charged. The Group has applied the relevant transitional provisions in HKAS 40 and elected to apply HKAS 40 from 1st April, 2005 onwards. Comparative figures have been restated (see Note 3 for the financial impact).

Deferred taxes related to investment properties

In previous years, deferred tax consequences in respect of revalued investment properties were assessed on the basis of the tax consequence that would follow from recovery of the carrying amount of the properties through sale in accordance with the predecessor Interpretation. In the current year, the Group has applied HK(SIC) Interpretation 21 (“HK(SIC) – INT 21”) Income taxes – Recovery of revalued nondepreciable assets which removes the presumption that the carrying amount of investment properties is to be recovered through sale. Therefore, the deferred tax consequences of the investment properties are now assessed on the basis that reflect the tax consequences that would follow from the manner in which the Group expects to recover the property at each balance sheet date. In the absence of any specific transitional provisions in HK(SIC) – INT 21, this change in accounting policy has been applied retrospectively. As the adoption of HK(SIC) – INT 21 has had no significant impact on the results and financial position for the current and prior accounting years, no prior period adjustment is required.

Leasehold land held for undetermined future use

Previously, leasehold land held for an undetermined future use was carried at cost less impairment and classified as property, plant and equipment. Under HKAS 17, the Group classifies its leasehold land held for an undetermined future use as investment properties and use the fair value model to account for such leasehold land in accordance with HKAS 40. Changes in fair value of the leasehold land are recognized directly in profit and loss. The change in accounting policy has been applied retrospectively. Comparative figures have been restated (see Note 3 for the financial impact).

Financial instruments

In the current year, the Group and the Company has applied HKAS 32 Financial instruments: Disclosure and presentation and HKAS 39 Financial instruments: Recognition and measurement. HKAS 32 requires retrospective application. HKAS 39, which is effective for annual periods beginning on or after 1st January, 2005, generally does not permit the recognition, derecognition or measurement of financial assets and liabilities on a retrospective basis. The application of HKAS 32 has had no material impact on how financial instruments of the Group and the Company are presented for the current and prior accounting years. The principal effects resulting from the implementation of HKAS 39 in respect of classification and measurement of financial assets and financial liabilities are summarised below:

By 31st March, 2005, the Group and the Company classified and measured its investments in equity securities in accordance with the benchmark treatment of SSAP 24. Under SSAP 24, the Group’s and the Company’s investments in equity securities are classified as “investment securities” or “other investments”. “Investment securities” are carried at cost less impairment losses (if any) while “other investments” are measured at fair value, with unrealised gains or losses included in profit or loss. Under HKAS 39, the Group’s and the Company’s investments in equity securities are classified as “financial assets at fair value through profit or loss” or “available-for-sale financial assets” which are carried at fair value, with changes in fair values recognised in profit or loss and equity respectively.

On 1st April, 2005, the Group and the Company reclassified other investment and investment securities to held-for-trading investments and available-for-sale investments respectively and measured them in accordance with the transitional provisions of HKAS 39. Comparative figures have not been restated (see Note 3 for the financial impact).

Others

At the date of authorisation of these financial statements, the Group and the Company has not early applied the following new standards, amendments and interpretations that have been issued but are not yet effective.

HKAS 1 (Amendment)	Capital disclosures1
HKAS 19 (Amendment)	Actuarial gains and losses, group plans and disclosures2
HKAS 21 (Amendment)	Net investment in a foreign operation2
HKAS 39 (Amendment)	Cash flow hedge accounting of forecast intragroup transactions2
HKAS 39 (Amendment)	The fair value option2
HKAS 39 & HKFRS 4 (Amendments)	Financial guarantee contracts2
HKFRS 6	Exploration for and evaluation of mineral resources2
HKFRS 7	Financial instruments: Disclosures1
HK(IFRIC) – INT 4	Determining whether an arrangement contains a lease2
HK(IFRIC) – INT 5	Rights to interests arising from decommissioning, restoration and environmental
	rehabilitation funds2
HK(IFRIC) – INT 6	Liabilities arising from participating in a specific market – waste electrical and
	electronic equipment3
HK(IFRIC) – INT 7	Applying the restatement approach under HKAS 29 Financial Reporting in
	Hyperinflationary Economies4
HK(IFRIC) – INT 8	Scope of HKFRS 25
HK(IFRIC) – INT 9	Reassessment of embedded derivatives6

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3. Summary Of The Effects On The Changes In Accounting Policies

1 Effective for annual periods beginning on or after 1st January, 2007.

2 Effective for annual periods beginning on or after 1st January, 2006.

3 Effective for annual periods beginning on or after 1st December, 2005.

4 Effective for annual periods beginning on or after 1st March, 2006.

5 Effective for annual periods beginning on or after 1st May, 2006.

6 Effective for annual periods beginning on or after 1st June, 2006.

The directors of the Company anticipate that the application of these standards, amendments or interpretations will have no material impact on the financial statements of the Group and the Company, except for HKAS 39 and HKFRS 4 (Amendments) which require all financial guarantee contracts to be initially measured at fair value. The directors consider the impact resulting from this amendment cannot be reasonably estimated as at the balance sheet date.

(a) Effects on the results for the current and prior years are summarised below :

mary Of The Effects On The Changes In Accounting Policies Effects on the results for the current and prior years are summarised below :
	THE GROUP
	2006	2005
	HK$	HK$
Increase in amortisation of prepaid lease payments	(28,016)	(28,016)
Depreciation of self-operated hotel property	(2,859,548)	(1,240,442)
Derecognition of revaluation increase in hotel property	–	(1,301,340)
Decrease in fair value of investment properties
recognised in income statement	(1,116,830)	(2,731,770)
Increase in loss for the year	(4,004,394)	(5,301,568)
Analysis by line items presented according to their function :
	THE GROUP
	2006	2005
	HK$	HK$
Derecognition of revaluation increase in hotel property	–	(1,301,340)
Decrease in fair value of investment properties	(1,116,830)	(2,731,770)
Increase in administrative expenses	(2,887,564)	(1,268,458)
Increase in loss for the year	(4,004,394)	(5,301,568)
In addition, share of taxation of associates has been reclassified and included in the share of results of associates as follows		:
	THE GROUP
	2006	2005
	HK$	HK$
Decrease in share of results of associates	(2,711,414)	(1,178,439)
Decrease in taxation	2,711,414	1,178,439
	–	–

(b) Effects on the balance sheet as at 31st March, 2005 and 1st April, 2005 are summarised below :

As at 31.3.2005 (originally stated) a HK$ THE GROUP Total effects on assets: Investment properties 32,038,810 Property, plant and equipment 161,864,863 Prepaid lease payments – non-current portion – – current portion – Investments in securities – non-current portion 188,291,795 – current portion 8,334,872 Available-for-sale investments – Held-for-trading investments – 390,530,340 Total effects on equity: Accumulated losses (111,180,984) THE COMPANY Total effects on assets: Investments in securities – non-current portion 157,026,351 – current portion 2,440,550 Available-for-sale investments – Held-for-trading investments – 159,466,901	Effect of HK INT-2, HKAS 8, HKAS 16 nd HKAS 17 HK$ – (25,198,118) 10,335,652 251,582 – – – – (14,610,884) (14,610,884) – – – – –	Effect of HKAS 40 HK$ 42,812,000 (43,087,502) – – – – – – (275,502) (275,502) – – – – –	As at 31.3.2005 (restated) HK$ 74,850,810 93,579,243 10,335,652 251,582 188,291,795 8,334,872 – – 375,643,954 (126,067,370) 157,026,351 2,440,550 – – 159,466,901	Effect of HKAS 39 HK$ – – – – (188,291,795) (8,334,872) 188,291,795 8,334,872 – – (157,026,351) (2,440,550) 157,026,351 2,440,550 –	As at 1.4.2005 (restated) HK$ 74,850,810 93,579,243 10,335,652 251,582 – – 188,291,795 8,334,872
					375,643,954
					(126,067,370)
					– – 157,026,351 2,440,550
					159,466,901

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• (c) Effects on the equity as at 1st April, 2004 are summarised below :

THE GROUP Accumulated losses	As originally stated HK$ (119,972,853)	Effect of HKAS 17, INT-2 HK$ (10,968,045)	Effect of HKAS 40 HK$ 1,383,227	As restated HK$ (129,557,671)

4. Business And Geographical Information

Business segments

For management purposes, the Group is currently organised into five operating divisions - hotel operation, property letting, securities investment and trading, and investment holding. Others include unallocated business operation. These divisions are the basis on which the Group reports its primary segment information.

Principal activities are as follows:

Hotel operation – operation of hotel Property letting – leasing of investment properties and service apartment Securities investment – investment and trading in securities and trading Investment holding – investment in sauna business licence

Segment information about these businesses is presented below.

2006

2006
REVENUE Turnover RESULTS Segment results Bank interest income Unallocated corporate expenses Finance costs Write off of special reserve Share of results of associates Loss before taxation Taxation Loss for the year 2005 REVENUE Turnover RESULTS Segment results Bank interest income Unallocated corporate expenses Finance costs Share of results of associates Profit before taxation Taxation Profit for the year Hong Kong Other regions in the PRC	Hotel operation HK$ 12,861,220 (1,933,496) Hotel operation HK$ 13,478,741 (548,834)	Property letting HK$ 6,201,153	Securities investment and trading HK$ 43,205,716 1,489,182 Securities investment and trading HK$ 7,739,737 2,586,379	Investment holding HK$ 1,260,730 (624,670) Investment holding HK$ 1,226,415 (596,962) 2006 HK$ 57,336,066 6,192,753 63,528,819	Others HK$ – – Others HK$ 919,493 919,493 Sales revenu geographical m	Consolidated HK$ 63,528,819
		(6,118,513)				(7,187,497) 1,032,760 (11,366,453) (2,078,339) (37,225,662) (13,685,451)
		Property letting HK$ 6,815,613
						(70,510,642) –
						(70,510,642)
						Consolidated HK$ (restated) 30,179,999
		539,677				2,899,753 6,003 (9,324,458) (3,908,175) 13,929,605
						3,602,728 (112,427)
						3,490,301
						e by arket 2005 HK$ 25,128,861 5,051,138
						30,179,999

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5. Finance Costs

Interest on bank and other borrowings: Wholly repayable within five years Not wholly repayable within five years Interest on finance leases	2006 HK$ 31,310 2,016,465 30,564 2,078,339	2005 HK$ 3,109,330 756,781 42,064
		3,908,175

6. Taxation

No provision for Hong Kong Profits Tax has been made in the financial statements as the Company and its subsidiaries have no assessable profit in both years. The amount in 2005 represented under provision of Hong Kong Profits Tax in prior years.

7. (Loss) Earnings Per Share

The calculation of basic (loss) earnings per share is based on the loss for the year of HK$70,510,642 (2005: profit of HK$3,490,301 as restated) and 488,842,675 (2005:488,842,675) ordinary shares in issue during the year.

No diluted loss per share is presented as the exercise of the potential dilutive ordinary shares would result in a reduction in loss per share in year 2006.

The computation of diluted earnings per share has not assumed the exercise of the outstanding share options of the Company since their exercise prices were greater than the average market price of shares for the year 2005.

The following table summarises the impact on basic (loss) earnings per share as a result of the application of the new HKFRSs:

Figures before adjustment Adjustment arising from changes in accounting policies As reported/restated	2006 HK cents (13.60) (0.82) (14.42)	2005 HK cents 1.80 (1.09)
		0.71

8. Depreciation And Amortisation

During the year, depreciation of HK$7,723,667 (2005: HK$6,602,205) was charged in respect of the Group’s property, plant and equipment.

Amortisation on intangible asset of HK$1,885,400 (2005:HK$1,885,400) was charged during the year.

9. Trade And Other Receivables

The Group generally allows an average credit period of not more than 30 days to its customers.

The following is an aged analysis of trade receivables at the balance sheet date:

0 – 30 days 31 – 60 days Over 60 days Trade receivables Other receivables	THE GRO 2006 HK$ 79,157 40,100 296,086 415,343 7,906,078 8,321,421	UP 2005 HK$ 259,853 52,666 136,015
		448,534 7,031,009
		7,479,543

10. Trade And Other Payables

The following is an aged analysis of trade payables at the balance sheet date:

0 – 30 days 31 – 60 days Over 60 days Trade payables Other payables	THE GRO 2006 HK$ 668,825 356,828 1,634,882 2,660,535 4,240,637 6,901,172	UP 2005 HK$ 780,172 466,670 1,019,269
		2,266,111 24,273,203
		26,539,314

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DIVIDENDS

The Board does not recommend the payment of any dividend for the year (2005: Nil).

REVIEW OF OPERATIONS

The overall turnover of Cheung Chau Warwick Hotel has decreased by 4% compared with last year. During the year under review, the average room rate of the room division has improved. However, the room revenue has decreased due to the Hotel carried out the upgrading works as there were certain rooms temporarily suspended from sale. Following the gradual recovery of Hong Kong economy, more restaurant operators have re-entered the local catering market of Cheung Chau recently. In view of the keen competition, the turnover of the food and beverage division has decreased compared with last year.

During the year under review, various road works were carried out at the entrance of Beijing Warwick International Apartments that affected our customers. However, the overall turnover of Beijing Warwick International Apartments has increased by 23% compared with last year.

The Company has re-assessed its investment in the People’s Republic of China and Australia, and has decided to write off the special reserve of HK$37,225,662 that is related to Beijing Warwick International Apartments and also make an impairment provision of asset value by US$10 million (of which the Group shared HK$24,570,000) in the interest in land situated in Sydney, Australia which is owned by an associate respectively.

PROSPECTS

The upgrading works of Cheung Chau Warwick Hotel are still in progress. The next phase of the renovation is tentatively scheduled to be completed in the middle of 2007. After renovation, more functional activities can be provided at the open area of swimming pool and barbecue site. The management believes that both the average occupancy rate and the average room rate will further improve. For the food and beverage division, the management is continuously working out new catering strategies to attract more customers.

With the opening of the new entrance and the improvement road works at the surrounding area of Beijing Warwick International Apartment together with the 2008 Olympic Games event, the management believes that the turnover of Beijing Warwick International Apartments will further increase.

EMPLOYEES

The Group has approximately 100 employees. Employees are remunerated in accordance with nature of the job and market conditions. Staff incentive bonus would be granted to reward and motivate those well-performed employees.

FINANCE ACTIVITIES

At 31 March 2006, the Group had bank credit facilities amounting to approximately HK$57,169,000 (2005: HK$31,734,000), of which approximately HK$45,051,000 (2005: HK$29,545,000) were utilised. These facilities were secured by legal mortgages over the Group’s properties and deposits.

At 31 March 2006, the Group had no material exposure under foreign exchange contracts, interest or currency swaps or other financial derivatives.

Shareholders’ funds at 31 March 2006 amounted to approximately HK$435 million (2005: approximately HK$466 million). Accordingly, the Group’s gearing ratio (total bank credit facilities utilized to shareholders’ funds) at 31 March 2006 is 10% (2005: 6%).

PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES

During the year ended 31 March 2006, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's listed securities.

MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS

The Board has adopted a new code of conduct regarding Directors’ securities transactions on terms no less exacting than the required standard set out in the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Model Code. The Directors confirmed that there was not any non-compliance with the standard set out in the Model Code and the Company’s code of conduct regarding Directors’ securities transactions during the year ended 31 March 2006.

CORPORATE GOVERNANCE

The Company has complied with the Code as set out in Appendix 14 of the Listing Rules throughout the year ended 31 March 2006, with deviations from code provision A.4.1 and A.4.2 of the Code in respect of the service term and rotation of Directors.

None of the existing Non-executive Directors of the Company is appointed for a specific term and Managing Director is not subject to re-election by rotation by the Company’s Articles of Association (the “Articles”) 76. This constitutes a deviation from code provision A.4.1 and A.4.2 of the Code. However, all Directors of the Company excluding Managing Director are subject to the retirement by rotation at each annual general meeting under Articles 78 and 79 of the Company. In view of good Corporate Governance Practices, Managing Director voluntarily retires from his office at the forthcoming annual general meeting of the Company notwithstanding that he is not required to do so by the Company’s Article 76. As such, the Company considers that sufficient measures have been taken to ensure that the Company’s Corporate Governance Practices are no less exacting than those in the Code.

– 7 –

AUDIT COMMITTEE

The Audit Committee has reviewed with management and auditors the accounting principles and practices adopted by the Group and discussed auditing, internal controls, and financial reporting matters including the review of the audited financial statements for the year ended 31 March 2006 approved by the directors.

REMUNERATION COMMITTEE

The Company had established a Remuneration Committee with written terms of reference pursuant to the provisions set out in the Code. The Remuneration Committee is principally responsible for formulation and making recommendation to the Board on the Group’s policy and structure for all remuneration of directors and senior management.

PUBLICATION OF THE ANNUAL RESULTS ON THE INTERNET WEBSITE OF THE STOCK EXCHANGE

The financial and other information required by Paragraphs 45(1) to 45(3) of Appendix 16 of the Listing Rules will be published on the website of the Stock Exchange in due course.

On behalf of the Board Derek Chiu Managing Director & Chief Executive

18 July 2006

As at the date of this statement, the executive Directors are Mr. Deacon Te Ken Chiu, Mr. Derek Chiu, Mr. Desmond Chiu, Ms. Margaret Chiu; the non-executive Directors are Mrs. Chiu Ju Ching Lan, Mr. Dick Tat Sang Chiu, Mr. David Chiu, Mr. Dennis Chiu, Mr. Duncan Chiu; the independent non-executive Directors are Mr. Ip Shing Hing, Mr. Ng Wing Hang Patrick, Mr. Choy Wai Shek Raymond; alternate Directors are Mr. Chan Chi Hing (alternate Director to Mr. Deacon Te Ken Chiu), Mr. Tang Sung Ki (alternate Director to Mr. Desmond Chiu).

Please also refer to the published version of this announcement in The Standard.

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