Harbour Centre Development Limited — Annual Report 2014

Jun 26, 2014

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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FAR EAST CONSORTIUM INTERNATIONAL LIMITED

(Incorporated in the Cayman Islands with limited liability)

Website: http://www.fecil.com.hk

(Stock Code: 35)

ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 31 MARCH 2014

RESULTS

The board of directors (the “Board”) of Far East Consortium International Limited (the “Company”) is pleased to announce the audited consolidated results of the Company and its subsidiaries (collectively, the “Group”) for the year ended 31 March 2014 as follows:

FINANCIAL HIGHLIGHTS

• Revenue increased by 8.9% to approximately HK$4.1 billion and gross profits increased by 51.2% to approximately HK$1.6 billion.

• Cumulative contracted presale value of properties under development amounted to approximately HK$4.7 billion as at 31 March 2014.

• Net assets attributable to shareholders was HK$4.73 per share as at 31 March 2014. Adjusting for hotel revaluation surplus, net assets attributable to shareholders increased from HK$8.45 per share to HK$9.12 per share[(i)] .

• Net gearing ratio was at 31.7%[(i)(ii)] and total cash and investment securities balances was at approximately HK$3.2 billion as at 31 March 2014.

• Net profit attributable to shareholders increased by 1.2% to approximately HK$914 million. Earnings per share amounted to HK$0.51. Adjusting for a one-time net tax write back of HK$144 million for the year ended 31 March 2013, net profit attributable to shareholders increased by 20.4%.

• Final dividend of HK$0.12 per share was recommended for the year ended 31 March 2014 (2013: HK$0.11 per share).

Notes:

• (i) Revaluation surplus on hotel assets of approximately HK$10,954 million as at 31 March 2014 (HK$9,459 million as at 31 March 2013) was not recognized in the Company’s consolidated financial statements, but adjusted for calculation of net asset value per share and the net gearing ratio.

• (ii) Net gearing ratio calculated by dividing total debt and borrowings less cash and investment securities balances by carrying amount of total equity and revaluation surplus on hotel assets.

– 1 –

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

FOR THE YEAR ENDED 31 MARCH 2014

NOTES Revenue Cost of sales and services Depreciation and amortisation of hotel and car park assets Gross profit Other income Gain on disposal of a subsidiary Other gains and losses 4 Administrative expenses – Hotels operation and management – Others Pre-opening expenses – Hotels operation and management Selling and marketing expenses Share of results of associates Share of results of joint ventures Finance costs 5 Profit before tax Income tax (expense) credit 6 Profit for the year 7 Attributable to: Shareholders of the Company Non-controlling interests Earnings per share Basic_(HK cents) _8 Diluted_(HK cents)_	2014 HK$’000 4,066,494 (2,298,312) (215,210) 1,552,972 41,176 66,652 484,767 (317,335) (221,092) (13,596) (69,714) 6,360 (2,904) (281,400) 1,245,886 (219,851) 1,026,035 914,057 111,978 1,026,035 51 51	2013 HK$’000 3,732,172 (2,547,512) (158,010) 1,026,650 16,282 458,358 217,844 (274,499) (211,622) (26,107) (85,646) 73,656 (2,904) (168,033) 1,023,979 54,391 1,078,370 903,046 175,324 1,078,370 50 50

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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2014

Profit for the year Other comprehensive (expense) income for the year Items that may be subsequently reclassified to profit or loss: Exchange differences arising on translation of foreign operations Revaluation increase on available-for-sale investments Fair value adjustment on cross currency swap contracts designated as cash flow hedge Reclassification to profit or loss on disposal of available-for-sale investments Reclassification of hedging reserve to profit or loss Other comprehensive (expense) income for the year Total comprehensive income for the year Total comprehensive income attributable to: Shareholders of the Company Non-controlling interests	2014 HK$’000 1,026,035 (162,406) 694 51,550 2,768 (27,329) (134,723) 891,312 782,291 109,021 891,312	2013 HK$’000 1,078,370 16,228 3,190 (7,593) (2,838) (6,000) 2,987 1,081,357 906,092 175,265 1,081,357

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 31 MARCH 2014

NOTES Non-current Assets Investment properties Property, plant and equipment Prepaid lease payments Other assets Goodwill Interests in associates Interests in joint ventures Investment securities Derivative financial instruments designated as hedging instruments Deposits for acquisition of property, plant and equipment Amounts due from associates Amount due from a joint venture Amount due from an investee company Other receivables Pledged deposits Deferred tax assets Current Assets Properties for sale Completed properties Properties for/under development Other inventories Prepaid lease payments Debtors, deposits and prepayments 10 Other receivables Tax recoverable Investment securities Derivative financial instruments Pledged deposits Restricted bank deposits Deposit in a financial institution Time deposits Bank balances and cash Assets classified as held for sale	2014 HK$’000 2,677,607 7,406,966 579,274 – 68,400 316,184 43,956 11,477 35,122 391,826 70,774 27,295 119,995 17 2,831 33,644 11,785,368 56,734 5,598,333 9,896 15,947 653,594 685,751 21,312 1,011,640 2,238 173,989 62,568 78,591 – 1,829,330 10,199,923 – 10,199,923	2013 HK$’000 2,431,917 6,653,119 595,036 296,250 68,400 315,608 47,115 146,604 – 133,864 70,744 27,295 119,995 45 34,788 5,000
		10,945,780
		295,582 4,142,719 9,034 16,034 412,836 142,365 87,212 137,982 5,354 141,516 257,117 100,000 12,500 2,620,653
		8,380,904 91,410
		8,472,314

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NOTES Current Liabilities Creditors and accruals 11 Customers’ deposits received Obligations under finance leases Amounts due to related companies Amounts due to associates Amounts due to non-controlling shareholders of subsidiaries Convertible bonds Derivative financial instruments Tax payable Secured bank and other borrowings Net Current Assets Total Assets less Current Liabilities Non-current Liabilities Secured bank and other borrowings Obligations under finance leases Convertible bonds Bonds Derivative financial instruments designated as hedging instruments Deferred tax liabilities Net Assets Capital and Reserves Share capital Share premium Reserves Equity attributable to shareholders of the Company Non-controlling interests Total Equity	2014 HK$’000 1,137,842 515,027 3,159 45,785 11,358 29,422 32,978 1,841 208,502 4,252,487 6,238,401 3,961,522 15,746,890 3,270,918 4,001 – 2,252,691 – 268,450 5,796,060 9,950,830 184,951 2,802,276 5,762,676 8,749,903 1,200,927 9,950,830	2013 HK$’000 837,209 958,346 158 62,660 12,453 30,070 – 20,290 185,506 4,713,839
		6,820,531
		1,651,783
		12,597,563
		1,904,089 1,010 31,169 1,250,000 7,593 253,242
		3,447,103
		9,150,460
		176,891 2,617,925 5,217,714
		8,012,530 1,137,930
		9,150,460

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NOTES

FOR THE YEAR ENDED 31 MARCH 2014

1. GENERAL

The Company is a public limited company incorporated in the Cayman Islands with its shares listed on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”). In addition, the consolidated financial statements included applicable disclosures required by the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and by the Hong Kong Companies Ordinance.

2. APPLICATION OF NEW AND REVISED HONG KONG FINANCIAL REPORTING STANDARDS (“HKFRSs”)

In the current year, the Group has applied the following new and revised HKFRSs issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”) which are effective for the Group’s financial year beginning on 1 April 2013.

Amendments to HKFRSs	Annual Improvements to HKFRSs 2009-2011 Cycle
Amendments to HKFRS 7	Disclosures – Offset Financial Assets and Financial Liabilities
Amendments to HKFRS 10,	Consolidated Financial Statements, Joint Arrangements and
HKFRS 11 and HKFRS 12	Disclosure of Interests in Other Entities: Transaction Guidance
HKFRS 10	Consolidated Financial Statements
HKFRS 11	Joint Arrangements
HKFRS 12	Disclosure of Interests in Other Entities
HKFRS 13	Fair Value Measurement
HKAS 19 (as revised in 2011)	Employee Benefits
HKAS 27 (as revised in 2011)	Separate Financial Statements
HKAS 28 (as revised in 2011)	Investments in Associates and Joint Ventures
HK(IFRIC) – Int 20	Stripping Costs in the Production Phase of a Surface Mine

New and revised HKFRSs issued but not effective

The Group has not early applied the following new and revised HKFRSs that have been issued but are not yet effective:

Amendments to HKFRSs Annual Improvement to HKFRSs 2010-2012 Cycle[2] Amendments to HKFRSs Annual Improvements to HKFRSs 2011-2013 Cycle[2] HKFRS 9 Financial Instruments[3] Amendments to HKFRS 9 Mandatory Effective Date of HKFRS 9 and and HKFRS 7 Transition Disclosures[3] Amendments to HKFRS 10, Investment Entities[1] HKFRS 12 and HKAS 27 Amendments to HKFRS 11 Accounting for Acquisition of Interests in Joint Operations[4] Amendments to HKAS 16 Clarification of Acceptable Methods of Depreciation and and HKAS 38 Amortisation[4] Amendments to HKAS 19 Defined Benefits Plans: Employee Contributions[2] Amendments to HKAS 32 Offsetting Financial Assets and Financial Liabilities[1] Amendments to HKAS 36 Recoverable Amount Disclosures for Non-financial Assets[1] Amendments to HKAS 39 Novation of Derivatives and Continuation of Hedge Accounting[1] HK(IFRIC) – Int 21 Levies[1]

• 1 Effective for annual periods beginning on or after 1 January 2014, with earlier application permitted

• 2 Effective for annual periods beginning on or after 1 July 2014, except as disclosed below. Early application is permitted

• 3 Available for application – the mandatory effective date will be determined when the outstanding phases of HKFRS 9 are finalised

• 4 Effective for annual periods beginning on or after 1 January 2016

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HKFRS 9 Financial Instruments

HKFRS 9 issued in 2009 introduces new requirements for the classification and measurement of financial assets. HKFRS 9 amended in 2010 includes requirements for the classification and measurement of financial liabilities and for derecognition, and further amended in 2013 to include the new requirements for hedge accountings.

Key requirements of HKFRS 9 are described as follows:

• All recognised financial assets that are within the scope of HKAS 39 Financial Instruments: Recognition and Measurement are subsequently measured at amortised cost or fair value. Specifically, debt investments that are held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on the principal outstanding are generally measured at amortised cost at the end of subsequent accounting periods. All other debt investments and equity investments are measured at their fair values at the end of subsequent accounting periods. In addition, under HKFRS 9, entities may make an irrevocable election to present subsequent changes in the fair value of an equity investment (that is not held for trading) in other comprehensive income, with only dividend income generally recognised in profit or loss.

• With regard to the measurement of financial liabilities (designated as at fair value through profit or loss), HKFRS 9 requires that the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is presented in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss. Changes in fair value of financial liabilities attributable to changes in the financial liability’s credit risk are not subsequently reclassified to profit or loss. Under HKAS 39, the entire amount of the change in the fair value of the financial liability designated as at fair value through profit or loss was presented in profit or loss.

The new general hedge accounting requirements retain the three types of hedge accounting. However, greater flexibility has been introduced to the types of transactions eligible for hedge accounting, specifically broadening the types of instruments that qualify for hedging instruments and the types of risk components of non-financial items that are eligible for hedge accounting. In addition, the effectiveness test has been overhauled and replaced with the principle of an “economic relationship”. Retrospective assessment of hedge effectiveness is also no longer required. Enhanced disclosure requirements about an entity’s risk management activities have also been introduced.

The Directors of the Company anticipate that the adoption of HKFRS 9 in the future may have a significant impact on amounts reported in respect of the Group’s financial assets and financial liabilities.

3. SEGMENT INFORMATION

The Group determines its operating segments based on internal reporting about components that are regularly reviewed by the chief operating decision maker. Information reported to the Group’s chief operating decision makers, who are the executive directors of the Company, for the purposes of resource allocation and assessment of performance is mainly focused on the property development, property investment, hotel operations and management, and car park operation in each of the geographical locations as stated below, securities and financial product investments and other operations, which mainly include provision of engineering services and second mortgage loans.

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Segment revenue and results

The following is an analysis of the Group’s revenue and results by reportable and operating segment. Segment profit (loss) represents the pre-tax earned (incurred) by each segment without allocation of central administrative costs, directors’ salaries and certain finance costs.

Property development – Australia – Hong Kong (“HK”) – Malaysia – Other regions in People’s Republic of China excluding HK (“PRC”) – United Kingdom (“UK”) Property investment – HK – PRC – Singapore Operations of Dorsett and its subsidiaries, including hotel operations and management, property development and investments and securities and financial product investments – HK – Malaysia – PRC – Singapore_(note)_ – UK Car park operations – Australia – Malaysia Securities and financial product investments Other operations Segment revenue/segment profit Unallocated corporate expenses Finance costs Profit before tax Income tax (expense) credit Profit for the year	Segment 2014 HK$’000 958,509 14,573 86 615,660 – 1,588,828 33,548 13,662 12,031 59,241 733,388 310,003 169,959 572,500 – 1,785,850 595,752 16,776 612,528 19,937 110 4,066,494	revenue 2013 HK$’000 1,838,519 95,174 478 11,377 – 1,945,548 32,769 12,848 16,166 61,783 744,712 288,140 120,090 – – 1,152,942 549,812 17,548 567,360 4,535 4 3,732,172	Segment profit (loss) 2014 2013 HK$’000 HK$’000 268,444 159,995 46,112 24,825 (2,813) 1,790 351,558 (13,070) (365) – 662,936 173,540 56,531 372,992 (27,716) (17,789) 256,119 (14,241) 284,934 340,962 174,638 702,899 58,890 45,486 (69,913) (43,675) 262,647 (13,366) (11,571) 979 414,691 692,323 57,697 38,308 6,772 7,559 64,469 45,867 17,914 3,765 (5,822) (71,602) 1,439,122 1,184,855 (79,097) (92,848) (114,139) (68,028) 1,245,886 1,023,979 (219,851) 54,391 1,026,035 1,078,370	Segment profit (loss) 2014 2013 HK$’000 HK$’000 268,444 159,995 46,112 24,825 (2,813) 1,790 351,558 (13,070) (365) – 662,936 173,540 56,531 372,992 (27,716) (17,789) 256,119 (14,241) 284,934 340,962 174,638 702,899 58,890 45,486 (69,913) (43,675) 262,647 (13,366) (11,571) 979 414,691 692,323 57,697 38,308 6,772 7,559 64,469 45,867 17,914 3,765 (5,822) (71,602) 1,439,122 1,184,855 (79,097) (92,848) (114,139) (68,028) 1,245,886 1,023,979 (219,851) 54,391 1,026,035 1,078,370	Segment profit (loss) 2014 2013 HK$’000 HK$’000 268,444 159,995 46,112 24,825 (2,813) 1,790 351,558 (13,070) (365) – 662,936 173,540 56,531 372,992 (27,716) (17,789) 256,119 (14,241) 284,934 340,962 174,638 702,899 58,890 45,486 (69,913) (43,675) 262,647 (13,366) (11,571) 979 414,691 692,323 57,697 38,308 6,772 7,559 64,469 45,867 17,914 3,765 (5,822) (71,602) 1,439,122 1,184,855 (79,097) (92,848) (114,139) (68,028) 1,245,886 1,023,979 (219,851) 54,391 1,026,035 1,078,370
				268,444 46,112 (2,813) 351,558 (365)	159,995 24,825 1,790 (13,070) –
					173,540
				56,531 (27,716) 256,119	372,992 (17,789) (14,241)
					340,962
				174,638 58,890 (69,913) 262,647 (11,571)	702,899 45,486 (43,675) (13,366) 979
					692,323
				57,697 6,772	38,308 7,559
					45,867 3,765 (71,602) 1,184,855 (92,848) (68,028) 1,023,979 54,391 1,078,370

None of the segments derived any revenue from transactions with other segments.

No revenue from any single customer contributed over 10% of the total revenue of the Group.

• Note: The segment revenue and segment profit (loss) of this segment for the year ended 31 March 2014 include the sales of properties in Singapore amounting to HK$498,392,000 (2013: nil) and HK$131,506,000 (2013: loss of HK$3,488,000), respectively.

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Segment assets

The following is an analysis of the Group’s assets by reportable segment as at the end of the reporting period. Segment assets represent assets held by each segment without allocation of corporate assets which are mainly bank balances and cash and deposits in a financial institution.

Property development – Australia – HK – Malaysia – PRC – UK Property investment – HK – PRC – Singapore Operations of Dorsett and its subsidiaries, including hotel operations and management, property development and investments and securities and financial product investments – HK – Malaysia – PRC – Singapore – UK Car park operations – Australia – Malaysia Securities and financial product investments Other operations Segment assets Unallocated corporate assets Total assets	2014 HK$’000 2,197,602 1,632,401 383,806 2,261,219 223,138 6,698,166 2,149,237 4,657 507,150 2,661,044 5,082,139 1,071,002 2,286,087 880,293 934,554 10,254,075 683,177 149,807 832,984 507,243 315,136 21,268,648 716,643 21,985,291	2013 HK$’000
		1,196,815 1,220,918 373,007 2,430,818 –
		5,221,558
		2,151,464 6,887 297,758
		2,456,109
		3,640,069 1,077,778 2,059,279 943,753 558,740
		8,279,619
		721,398 154,050
		875,448 300,204 294,022 17,426,960 1,991,134 19,418,094

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4. OTHER GAINS AND LOSSES

Change in fair value of investment properties (Loss) gain on disposal of available-for-sale investments Change in fair value of investments held for trading Gain arising on transfer of completed properties for sale to investment properties Change in fair value of derivative financial instruments Gain on reclassification from hedge reserve to profit or loss upon recognition of hedged item to profit or loss Gain on compensation from relevant government authority of Singapore Gain on partial repurchase of bonds Impairment loss on interest in a joint venture Net foreign exchange loss Allowance for bad and doubtful debts (Loss) gain on disposal of property, plant and equipment 5. FINANCE COSTS Interest on: Bank borrowings – wholly repayable within five years – not wholly repayable within five years Other loans wholly repayable within five years Convertible bonds Finance leases Bonds Less: Net interest income from cross currency swap contracts Amortisation of front-end fee Others Total interest costs Less: amounts capitalised to properties under development – investment properties – properties for owners’ occupation – properties for sale	2014 HK$’000 29,994 (2,768) (35,733) 204,258 16,619 27,329 258,960 2,067 – (12,418) (3,067) (474) 484,767 2014 HK$’000 274,681 29,290 2,897 2,252 15 136,978 (26,303) 17,881 2,431 440,122 (4,054) (31,354) (123,314) 281,400	2013 HK$’000 298,603 2,838 5,140 – (11,380) – – – (40,951) (1,183) (35,647) 424 217,844 2013 HK$’000 314,817 27,110 4,550 2,182 21 5,432 – 15,215 1,338 370,665 (3,239) (45,749) (153,644) 168,033

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6. INCOME TAX EXPENSE (CREDIT)

The income tax expense (credit) comprises: Current tax: Hong Kong Profits Tax PRC Enterprise Income Tax (“PRC EIT”) PRC Land Appreciation Tax (“PRC LAT”) Australia Income Tax Malaysia Income Tax Singapore Income Tax Under (over) provision in previous years: Hong Kong Profits Tax PRC LAT (note) Australia Income Tax Malaysia Income Tax Singapore Income Tax Deferred taxation	2014 HK$’000 35,445 81,993 31,912 37,409 5,786 24,889 217,434 3,273 – (17,516) 122 (521) (14,642) 17,059 219,851	2013 HK$’000 47,488 49,560 – 22,005 6,248 1,166 126,467 4,312 (192,657) – 43 – (188,302) 7,444 (54,391)

Hong Kong Profits Tax is calculated at 16.5% of the estimated assessable profit for the year of each individual companies comprising the Group less tax losses brought forward where applicable.

PRC EIT is calculated in accordance with the EIT Law and Implementation Regulations of the EIT Law at the rate of 25%.

PRC LAT is levied at the deemed levying rates in accordance with the relevant PRC Tax laws and regulations.

The domestic statutory tax rate of Australia, Malaysia and Singapore is 30%, 25% and 17% of the estimated assessable profit for the year.

• Note: During the year ended 31 March 2013, the local tax authority in PRC agreed to use the deemed levying rates to calculate the PRC LAT for certain property development projects of the Group that have been sold and recognised as revenue in the consolidated financial statements in previous years, for which PRC LAT based on the progressive rates was provided for. The resulting overprovision of PRC LAT amounting to HK$192,657,000 was reversed during the year ended 31 March 2013.

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7. PROFIT FOR THE YEAR

Profit for the year has been arrived at after charging: Cost of properties sold recognised as an expense Auditor’s remuneration Depreciation – Operations of Dorsett and its subsidiaries – Car park operations – Others Amortisation of prepaid lease payments Less: Amount capitalised to properties under development for owners’ occupation Amortisation of intangible assets Amortisation of investment in a joint venture (included in share of results of joint ventures) Allowance for bad and doubtful debts Staff costs Directors’ emolument Other staff Share option payment expense for other staff Share of taxation of associates (included in share of results of associates) and after crediting: Rental income, net of outgoings of HK$49,524,000 (2013: HK$24,068,000) Dividend income from: Investment held for trading Available-for-sale investments Bank interest income	2014 HK$’000 1,332,282 11,400 187,003 19,878 14,164 221,045 10,632 (564) 10,068 – 2,904 3,067 18,918 549,370 3,791 572,079 (1,196) 72,037 12,086 144 12,230 5,875	2013 HK$’000 1,678,976 10,774 129,234 21,249 13,315 163,798
		13,256 (1,120)
		12,136 2,100 2,904 35,647 19,220 465,898 3,861 488,979 1,705 87,785
		2,265 2,496
		4,761 6,754

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8. EARNINGS PER SHARE

The calculation of the basic and diluted earnings per share attributable to the shareholders of the Company is based on the consolidated profit for the year attributable to the shareholders of the Company of HK$914,057,000 (2013: HK$903,046,000) and the number of shares calculated as follows:

	2014	2013
	’000	’000
Weighted average number of ordinary shares for the purpose
of basic earnings per share	1,800,908	1,816,434
Effect of dilutive potential ordinary shares
– Company’s share options	4,776	1,076
Weighted average number of ordinary shares for the purpose
of diluted earnings per share	1,805,684	1,817,510
The computations of diluted earnings per share for both years did not assume the conversion of the
Company’s outstanding convertible bonds since their exercise would	result in an increase in earnings per
share. In addition, the computations for both years did not assume the exercise of its indirect subsidiary
Dorsett’s share options as the exercise prices of those options are higher than the average market prices of
the Dorsett’s shares during the years.

9. DIVIDENDS

Dividends recognised as distribution during the year: 2014 interim dividend of HK3 cents per share (2013: 2013 interim dividend of HK2 cents per share) 2013 final dividend of HK11 cents per share (2013: 2012 final dividend of HK5 cents per share)	2014 HK$’000 55,133 195,009 250,142	2013 HK$’000 35,122 86,488
		121,610

A final dividend for the year ended 31 March 2014 of HK12 cents (2013: HK11 cents) per share has been proposed by the directors and is subject to approval by the shareholders in the forthcoming annual general meeting.

Shareholders have an option to elect cash in lieu of new shares of the Company for the dividend proposed and paid during the year.

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10. DEBTORS, DEPOSITS AND PREPAYMENTS

Included in debtors, deposits and prepayments are trade debtors of HK$162,886,000 (2013: HK$79,902,000).

Trade debtors aged over 60 days are past due but are not impaired.

Trade debtors mainly represent receivable from renting of properties, use of hotel facilities and sales of properties. Rentals are payable on presentation of demand notes. Hotel room revenue is normally settled by cash or credit card. The Group allows an average credit period of 14 to 60 days to its corporate customers and travel agents.

Proceeds from sales of properties are settled according to the payment terms of the sale and purchase agreement.

Included in trade debtors is an amount of S$12,040,000 (equivalent to HK$74,169,000) which represents the portion of the proceeds that have been settled by the buyers and are being held in escrow account. The funds would be remitted to the Group upon the issuance of relevant certificate by the government authorities in Singapore, which is expected to be taken place within one year after the end of the reporting period.

In determining the recoverability of trade debtors, the Group considers the subsequent settlement and any change in the credit quality of the debtors from the date credit was initially granted up to the end of each of the reporting period. There is no concentration of credit risk due to the large and unrelated customer base. Accordingly, the directors believe that there is no further credit provision required in excess of the allowance already made.

The following is an aged analysis of trade debtors based on the invoice date which approximated the respective revenue recognition date, at the end of the reporting period:

0–60 days 61–90 days Over 90 days	2014 HK$’000 77,229 3,776 81,881 162,886	2013 HK$’000 70,863 2,818 6,221
		79,902

11. CREDITORS AND ACCRUALS

Included in creditors and accruals are trade creditors of HK$182,930,000 (2013: HK$225,266,000). The following is an aged analysis of the trade creditors:

0–60 days 61–90 days Over 90 days	2014 HK$’000 146,821 1,832 34,277 182,930	2013 HK$’000 140,680 1,374 83,212
		225,266

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FINAL DIVIDEND

The Board has recommended the payment of a final dividend for the year ended 31 March 2014 of HK12 cents (2013: HK11 cents) per ordinary share (the “Proposed Final Dividend”). The Proposed Final Dividend will be paid to the shareholders of the Company (the “Shareholders”) whose names appear on the Company’s Register of Members on 11 September 2014. The Proposed Final Dividend will be paid in the form of a scrip dividend with Shareholders being given an option to elect to receive cash in lieu of all or part of their scrip dividend entitlements (the “Scrip Dividend Scheme”).

The Scrip Dividend Scheme will be subject to (i) Shareholders’ approval of the Proposed Final Dividend at the Company’s forthcoming annual general meeting to be held on 28 August 2014 (the “2014 AGM”); and (ii) the Stock Exchange granting listing of and permission to deal in the new shares to be allotted thereunder. For the purpose of determining the number of new shares to be allotted, the market value of new shares will be calculated as the average of the closing prices of the existing shares of the Company on the Stock Exchange for the 5 trading days prior to and including 11 September 2014. Full details of the Scrip Dividend Scheme will be set out in a circular which is expected to be sent to Shareholders together with a form of election on or around 22 September 2014. Dividend warrants and/or new share certificates will be posted on or around 24 October 2014.

CLOSURE OF REGISTER OF MEMBERS

Details of the periods of closure of the Company’s Register of Members are as follows:–

(a) For determining the entitlement to attend and vote at the 2014 AGM

As set out above, the 2014 AGM is scheduled to be held on Thursday, 28 August 2014. For determining the entitlement to attend and vote at the 2014 AGM, the Register of Members of the Company will be closed from Tuesday, 26 August 2014 to Thursday, 28 August 2014, both days inclusive, during which period no transfer of shares of the Company will be registered. In order to be eligible to attend and vote at the 2014 AGM, unregistered holders of shares of the Company should ensure that all share transfer documents accompanied by the relevant share certificates must be lodged with the Company’s branch share registrar in Hong Kong, Tricor Standard Limited, at Level 22, Hopewell Centre, 183 Queen’s Road East, Hong Kong, for registration not later than 4:30 p.m. on Monday, 25 August 2014.

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(b) For determining the entitlement to the Proposed Final Dividend

As stated above, the Proposed Final Dividend is subject to the approval of Shareholders at the 2014 AGM. For determining the entitlement to the Proposed Final Dividend, the Register of Members of the Company will also be closed from Monday, 8 September 2014 to Thursday, 11 September 2014, both days inclusive, during which period no transfer of shares of the Company will be registered. In order to qualify for entitlement to the Proposed Final Dividend, unregistered holders of shares of the Company should ensure that all share transfer documents accompanied by the relevant share certificates must be lodged with the Company’s branch share registrar in Hong Kong, Tricor Standard Limited, at Level 22, Hopewell Centre, 183 Queen’s Road East, Hong Kong, for registration not later than 4:30 p.m. on Friday, 5 September 2014.

FINANCIAL REVIEW

Revenue Sales of properties Hotel operations and management Car park operations and facility management Leasing of properties Others Total Revenue Gross Profit Sales of properties Hotel operation and management Car park operations and facility management Leasing and others Total Gross Profit Profit before tax Profit attributable to shareholders Earnings per share Dividend per share	For the 2014 HK$ million 2,087 1,287 613 59 20 4,066 729 652 129 43 1,553 1,246 914 HK51 cents HK15 cents	year ended 31 March 2013 Change HK$ million 1,946 7.2% 1,153 11.6% 567 8.1% 62 (4.8%) 4 3,732 8.9% 231 215.6% 650 0.3% 112 15.2% 34 26.5% 1,027 51.2% 1,024 21.7% 903 1.2% HK50 cents HK13 cents

Note: Sales of properties was adjusted to include sales and gross profit margin in connection with Dorsett Residences Singapore of HK$498 million and of HK$147 millions respectively, which was part of Dorsett’s revenue and gross profit.

– 16 –

1. Annual results

The Company’s consolidated revenue for the financial year ended 31 March 2014 was approximately HK$4,066 million, an increase of 8.9% as compared with last financial year.

Revenue from sales of properties amounted to approximately HK$2,087 million for the financial year ended 31 March 2014, an increase of 7.2% as compared with last financial year. Dorsett Residences, Singapore, The Royal Crest, Shanghai, Upper West Side (Stage 2), Melbourne and the remaining units in Upper West Side (Stage 1), Melbourne contributed primarily to the sales of properties during the year.

Revenue from hotel operations and management contributed approximately HK$1,287 million to the Company’s total revenue this year while car park operations and facility management contributed approximately HK$613 million to the Company’s total revenue, an increase of 11.6% and 8.1% respectively compared to the last financial year. Revenue relating to property investment decreased by approximately HK$3 million.

Gross profit and net profit before tax of the Company for the financial year ended 31 March 2014 were approximately HK$1,553 million and HK$1,246 million respectively, an increase of 51.2% and 21.7% respectively as compared with last financial year.

Net profit attributable to shareholders of the Company for the financial year ended 31 March 2014 amounted to approximately HK$914 million, an increase of 1.2% as compared with last financial year.

For the financial year ended 31 March 2013, approximately HK$458 million gain was recognized from the disposal of a subsidiary holding Dorsett Hotel Kennedy Town, located in Hong Kong and there was a net tax write back of approximately HK$144 million. Neither item was repeated in the financial year ended 31 March 2014. Despite these, the Group recorded an increase in net profit before tax and profit after tax primarily due to increase in completion of residential development projects and higher profit margin from residential development and a gain of approximately HK$259 million from the compulsory acquisition of Pearl’s Centre, Singapore by the Singapore authority.

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2. Liquidity and financial resources

The following table sets out the Group’s bank and cash balances, balances relating to investment securities (which were considered as cash equivalent items due to its easilymonetized nature), bank loans and borrowings and equity as at 31 March 2014.

Bank loans, bonds and borrowings(i) Due within 1 year Due 1 – 2 years Due 2 – 3 years Due more than 3 years Investment securities Bank and cash balances Net debts(ii) Carrying amount of the total equity Add: hotel revaluation surplus Total equity adjusting for hotel revaluation surplus Net gearing ratio Notes:	As at 31.3.2014 HK$ million 2,848 2,717 2,881 1,393 9,839 (1,060) (2,147) 6,632 9,951 10,954 20,905 31.7%	As at 31.3.2013 HK$ million 3,636 1,797 1,756 755 7,944 (290) (3,167) 4,487 9,150 9,459 18,609 24.1%

(i) Based on scheduled repayment date set out in the loan agreement.

• (ii) Total bank loans, bonds and borrowings less investment securities, bank and cash balances.

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In order to better manage the Group’s liquidity position, the Group allocated a portion of its cash position in marketable fixed income securities during the year. Investment securities shown on the consolidated statement of financial position represent primarily fixed income securities.

Adjusting for the unrecognized hotel revaluation surplus, the Group’s total consolidated equity as at 31 March 2014 was approximately HK$20,905 million, an increase of 12.3% as compared with that as at 31 March 2013. Compared with the net debt as at 31 March 2014, the net gearing ratio of the Group was 31.7%.

The carrying amounts of the borrowings in the consolidated statement of financial position as at 31 March 2014 include an amount of approximately HK$1,463 million (as at 31 March 2013: HK$1,115 million) which were not repayable within one year. However, where counterparties have discretionary right to demand immediate repayment, such borrowings have been shown as current liabilities.

A number of residential projects are due for completion post financial year end and this has generated and will generate significant cashflow stream to the Group. Together with the available credit facilities, the Group believes that it has sufficient financial capacity to meet all the Group’s funding and operational needs of its business.

3. Net asset value per share

	As at	As at
	31 March	31 March
	2014	2013
	HK$ million	HK$ million
Equity attributable to shareholders of the Company	8,750	8,013
Add: Hotel revaluation surplus
(adjusted for minority shareholders’ interests)	8,114	6,929
Total net asset value	16,864	14,942
No. of shares issued_(million)_	1,850	1,769
Net asset value (“NAV”) per share	HK$9.12	HK$8.45

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Adjusting for revaluation surplus on hotel assets as at 31 March 2014 of approximately HK$10,954 million (HK$9,459 million as at 31 March 2013) and minority shareholders’ interests, NAV per share for the Company as at 31 March 2014 was approximately HK$9.12.

4. Capital commitments

Capital expenditure contracted for but not provided in the consolidated financial statements in respect of: Acquisition, development and refurbishment of hotel properties Others Capital expenditure authorized but not contracted for in respect of: Development and refurbishment of hotel properties Others	For the year 2014 2013 HK$’000 HK$’000 153,281 768,622 107,679 12,180 260,960 780,802 22,750 27,673 16,474 16,474 39,224 44,147 300,184 824,949	For the year 2014 2013 HK$’000 HK$’000 153,281 768,622 107,679 12,180 260,960 780,802 22,750 27,673 16,474 16,474 39,224 44,147 300,184 824,949
		780,802
		27,673 16,474
		44,147
		824,949

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BUSINESS REVIEW

1. Property Development and Investment

Property development and property investment is one of the Group’s three core businesses.

The Group has a diversified portfolio in residential property development in Australia, Shanghai, Guangzhou, Hong Kong, London, Kuala Lumpur and Singapore. To carry out property developments in the various markets, the Group has established strong local teams in each of these markets. The regionalization approach to this business allows the Group to take advantage of the property cycles in the different market. This strategy has resulted in a relatively low land cost base for the Group’s development projects. Most of the Group’s property developments are focused in mass residential market where the Group can benefit from the growing affluence of the middle class.

During the financial year ended 31 March 2014, the Group acquired 4 residential development sites, namely (i) The Fifth site and (ii) The 250 Spencer Street site, both of which are located in central business district of Melbourne adjacent to the Group’s Upper West Side development, (iii) the Sha Tau Kok residential site, Hong Kong, which was acquired through a government tender and (iv) a residential development site in Marsh Wall, Canary Wharf, London. The 4 acquisitions, which amounted to approximately HK$1 billion, are expected to add approximately 4,000 apartments to the Group’s development pipeline. As at 31 March 2014, the sellable floor areas in the Group’s property development pipeline reached approximately 11 million square feet (“sq. ft.”), which is sufficient for the Group’s development in the coming 6 to 7 years. Post financial year end, the Group acquired 2 additional residential development sites which are located in Tai Wai, Hong Kong and in Manilla Street, Canary Wharf, London. The Group also reached agreement to acquire a development site in Elizabeth Quay in Perth, Australia.

During the financial year ended 31 March 2014, the Group launched presales/soft marketing of 4 new residential development projects with total sellable floor areas of approximately 1 million sq. ft.. These projects are Upper West Side (Stage 4) in Melbourne, View Pavilion in Shanghai, Dorsett Residences Bukit Bintang in Kuala Lumpur and 684 Clearwater Bay Road in Hong Kong.

A subsidiary that owned 684 Clearwater Bay Road project was sold during the financial year and the gain was recognized as gain on disposal of a subsidiary during the financial year. As for Dorsett Residences Bukit Bintang, as only bookings for sale were taken during the soft marketing, no contracted presale was recorded. The Group expects actual presale will be recorded in the coming financial year.

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A breakdown of contracted presale value of residential properties under development as at 31 March 2014 is set out below:

Developments Location Upper West Side Stage 2 Melbourne Upper West Side Stage 3 Melbourne Upper West side Stage 4 Melbourne Star Ruby Hong Kong Sevilla Crest Hong Kong View Pavilion Shanghai Total presale value as at 31 March 2014	Contracted presale value (HK$ million) 1,248 826 1,512 518 206 393 4,703

Note: Dorsett Waterfront, Malaysia which is a joint venture arrangement is excluded from the table above.

As at 31 March 2014, total cumulative contracted presale value of residential properties underdevelopment amounted to approximately HK$4,703 million. Completion and delivery of the developments are expected to take place in the next three years. As revenue will only be recognized when sales of property development are completed, the above presale was not reflected in the consolidated income statement.

Currently the Group has a total of 22 active residential development projects with approximately 6.4 million sq. ft. in sellable floor areas under various stages of development across the regions.

Five new projects are earmarked for presale for the financial year ending 31 March 2015. These are (i) Eivissa Crest in Hong Kong, (ii) The Fifth in Melbourne, (iii) Royal Riverside in Guangzhou, (iv) California Garden Phase 16 in Shanghai and (v) the residential development in the Elizabeth Quay Site in Perth. Total sellable areas of these 5 projects are expected to be approximately 2 million sq. ft.. Together with the inventory in the launched projects, total value of sellable units amounted to approximately HK$17 billion.

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Australia

Upper West Side project is a high rise residential development, located at central business district in Melbourne phased in 4 stages. Stage 1 was completed in financial year ended 31 March 2013. Stage 2 (“Madison at Upper West Side”) consisting 584 apartments have been sold and handed over to purchasers starting from March 2014. Stage 3 (“Midtown at Upper West Side”) and Stage 4 (“Manhattan at Upper West Side”) consisting of 282 apartments and 641 apartments respectively are under construction and are expected to be completed in financial year ending 31 March 2016 and 2017 respectively. As at 31 March 2014, presale value of Stage 3 and Stage 4 were approximately HK$826 million and HK$1,512 million respectively, representing approximately 98% and 71% of the presale value of the developments respectively.

In April 2013, a piece of land (to be developed and named as “The Fifth”) with site area of approximately 12,000 sq. ft. adjacent to the current Upper West Side development was added to the residential development portfolio. The Fifth has a total of approximate 400 apartments and the soft launch of the project has commenced.

In June 2013, the Group acquired another piece of land (known as The 250 Spencer Street Site), located next to the Upper West Side development with site area of approximately 1.176 hectare. The 250 Spencer Street Site is currently with a planning permit for residential development with a total sellable area of approximately 2.2 million sq. ft.. The project is expected to consist of approximately 3,000 residential apartments and will be developed in phases.

Post financial year end in June 2014, the Group was selected to be the developer of a prestigious residential and hotel project in Elizabeth Quay, Perth. The mixed use project is expected to consist of 2 towers comprising a 5 star Ritz Carlton hotel and residential and commercial units. Subject to planning permit approval, the residential component of the development is expected to consist of approximately 320,000 sq. ft. sellable floor area.

Consistent with the Group’s overall strategic plan to expand its development pipeline and increase its recurring income base, on 23 June 2014, The Group signed a binding memorandum of understanding (“MOU”) with Chow Tai Fook Enterprises Limited (“CTF”) and Echo Entertainment Group Limited (“Echo”) to create a consortium to bid for the development of an entertainment precinct and integrated resort at the Queen’s Wharf Brisbane site. Under the MOU, the consortium will develop and jointly submit a proposal for the Queen’s Wharf Brisbane project. As part of the agreement, CTF and the Group will each contribute twenty five per cent of the capital to the development of the

– 23 –

integrated resort and together, will also undertake the residential and related components of the broader Queen’s Wharf Brisbane development. Echo will contribute fifty per cent of the capital to the development of the integrated resort and act as the operator under a long dated gaming operator agreement.

Mainland China

In Shanghai, California Garden is a township development, comprising a diversified portfolio of residences including low rise apartments, high rise apartments and town houses. During the financial year ended 31 March 2014, one of the phases in California Garden, namely The Royal Crest which consists of 288 residential apartments (approximately 270,000 sq. ft. in sellable area) was completed.

Currently, in California Garden, 3 residential developments consisting of approximately 1,000 units including residential apartments and town houses with total sellable area of approximately 1.3 million sq. ft. are under construction. View Pavilion which consists of 306 apartments was launched with the other phases (Phase 16 and The Royal Crest II) to be followed.

View Pavilion is expected to be completed in financial year ending 31 March 2015. As at 31 March 2014, the presale value of View Pavilion was approximately HK$393 million, representing approximately 37% of the development.

Phase 16 consists of 479 apartments and 90 town houses and The Royal Crest II consists of 180 apartments and 42 town houses. Phase 16 and The Royal Crest II are expected to be completed in financial year ending 31 March 2016 and 2017 respectively.

In Guangzhou, Royal Riverside is a 5 residential buildings development with approximately 600 high rise apartments. Total sellable area is approximately 700,000 sq. ft.. The development is expected to be completed in financial year ending 31 March 2016. Presale is expected to commence in financial year ending 31 March 2015.

Hong Kong

The Group has been actively building its development pipeline in Hong Kong. The Group continues to increase its land bank through acquisition of redevelopment sites as well as participating in government tender.

– 24 –

Following the acquisition of a residential redevelopment site in Wong Tai Sin, Kowloon which consists of approximately 70,000 sq. ft. in sellable floor area in November 2012, the Group acquired a residential development site located at Sha Tau Kok, New Territories through a government tender in October 2013 at the price of HK$143 million. This development consists of approximately 100,000 sq. ft. in sellable area with a plan of no less than 240 low rise apartments. Post financial year end in April 2014, the Group acquired another residential development site at Tai Wai through government tender at the price of HK$148 million. Gross floor areas of the Tai Wai development is approximately 47,000 sq. ft.. All of these newly acquired residential development sites are now under various stages of planning and development.

Star Ruby is a residential property development located at Hunghom, Kowloon. This development comprises of 124 high rise apartments with approximately 45,000 sq. ft. in sellable area. As at 31 March 2014, presale value reached approximately HK$518 million, representing approximately 75% of the development. Completion is expected to take place in financial year ending 31 March 2015.

Sevilla Crest is a residential property development located at Sham Shui Po, Kowloon. This residential development consists of approximately 30,000 sq. ft. in sellable floor area. As at 31 March 2014, presale value reached approximately HK$206 million, representing 42% of the development. Completion is expected to take place in financial year ending 31 March 2015.

Evissa Crest located at Hill Road, Hong Kong Island, consists of 106 residential apartments with approximately 36,000 sq. ft. in sellable floor area. The project was launched for presale in May 2014 and completion is expected to take place in financial year ending 31 March 2016.

A planning approval was obtained from Town Planning Board for a residential development located in Fung Lok Wai, Yuen Long in November 2013. This residential development consists of a total floor area of approximately 1.6 million sq. ft.. The Group has 25.33% interests in the development. This development is currently under planning stage.

– 25 –

London, United Kingdom

A residential development site in Marsh Wall, Canary Wharf was acquired in January 2014 at the price of GBP16.7 million. Subject to planning permit approval, the Group intends to build a residential tower with approximately 250,000 sq. ft. in sellable floor area on the site. In June 2014, the Group also entered into an agreement to acquire a site adjacent to the Marsh Wall site at the price of GBP6.5 million. Both sites are currently under planning stage. Leveraging on the momentum of the growth of the development pipeline and the expertise it has developed, the Group will continue to acquire and increase its landbank in London.

Malaysia

Dorsett Bukit Bintang is a residential development adjacent to Dorsett Regency Kuala Lumpur. This development, which consists of 252 high rise apartments with approximately 220,000 sq. ft. in sellable area, was soft launched in October 2013. Completion is expected to take place in financial year ending 31 March 2017.

Investment Properties

The Group’s investment properties comprise mainly retail and office buildings located in Shanghai, Hong Kong and Australia. As at 31 March 2014, investment properties were valued at approximately HK$2.7 billion. A fair value gain of approximately HK$234 million was recorded in respect of the Group’s investment properties during the financial year ended 31 March 2014. It was mainly attributable to the completion of retail properties located at Dorsett Residences in Singapore and stage 1 of Upper West Side in Melbourne, Australia.

– 26 –

2. Hotel Operations and Management – Dorsett Hospitality International Limited (“Dorsett”)

The Group, through its 74.07% owned listed subsidiary, Dorsett, operates its hotel business. The following table shows the operating data of its owned hotels during the financial year.

	For the year ended	For the year ended
	31 March
	2014		2013
Hong Kong
Occupancy rate	93.9%	93.3%
Average room rate_(HK$)_	942		997
RevPAR_(HK$)_	885		930
Mainland China
Occupancy rate	54.3%	70.2%
Average room rate_(HK$)_	573		549
RevPAR_(HK$)_	311		385
Malaysia
Occupancy rate	68.8%	68.4%
Average room rate_(HK$)_	519		498
RevPAR_(HK$)_	357		341
Singapore
Occupancy rate	67.2%		–
Average room rate_(HK$)_	1,275		–
RevPAR_(HK$)_	857		–
Group Total
Occupancy rate	76.7%	81.5%
Average room rate_(HK$)_	786		799
RevPAR_(HK$)_	603		651

– 27 –

For the financial year ended 31 March 2014, the average room rate (“ARR”) of owned hotels in Hong Kong decreased by 5.5% while the occupancy (“OCC”) recorded a marginal increase of 0.6% points. The revenue per available room (“RevPAR”) was HK$885, down by 4.8% from the last financial year. Hong Kong is the key market and revenue contributor which was adversely affected mainly by increased supply of room inventories and the renovation of the flagship hotels in Hong Kong, namely the Cosmopolitan Hotel and the Lan Kwai Fong Hotel. Despite these challenges, concerted sales and marketing efforts to expand the distribution channel and the ongoing strategy to adjust its guest profile has enabled the operation in Hong Kong to withstand the pressure and the group is expected to continue to produce solid results.

In Mainland China, ARR increased by 4.4% but the OCC declined by 15.9% points for the financial year ended 31 March 2014, mainly due to the lower OCC of the newly opened Dorsett Grand Chengdu and hence the RevPAR declined by 19.2%. The Group expects that the operation of Dorsett Grand Chengdu will improve in the coming years and contribute positively to the overall performance of the region.

In Malaysia, RevPAR performance continued its momentum of steady growth by 4.7% to HK$357 largely attributable to the strong performance of Dorsett Grand Labuan and Dorsett Grand Subang. The OCC performance improved by 0.4% points to 68.8% and the ARR improved by 4.2% to HK$519 as compared with last financial year.

Dorsett Singapore was opened in the end of March 2013. RevPar reached HK$857. The OCC and ARR performance were 67.2% and HK$1,275 respectively. The Singapore performance had produced positive contributions to the Group for the year ended 31 March 2014 and the Group expects it will continue its strong contribution in the coming years.

Dorsett continued to expand its hotel portfolio and its network coverage.

In August 2013, Dorsett acquired a hotel property in Jiangxi province, Mainland China at the price of RMB176 million. The hotel property is located within the vicinity of the famous Lushan National Park in Jiujiang city, which is one of the most famous tourist destinations in Mainland China. The hotel consisting of 297 rooms commenced its operation in June 2014.

In line with Dorsett’s “Chinese Wallet” strategy to capture the market share for the increasing outbound Chinese travelers, in September 2013, Dorsett acquired the “Walkabout” pub and restaurant building, which is located next to the Dorsett Shepherds Bush in London. Dorsett intended to convert the property into hotel rooms which would complement the operation of its Dorsett Shepherds Bush which consists of 317 rooms and commenced its operation in June 2014.

– 28 –

In Hong Kong, Dorsett Tsuen Wan commenced its operation in February 2014. The hotel consists of 547 rooms. As at 31 March 2014, Dorsett operated 18 owned hotels (9 in Hong Kong, 5 in Malaysia, 3 in Mainland China and 1 in Singapore) with approximately 5,400 rooms and had 7 owned hotels in the development pipeline (1 in Hong Kong, 3 in Mainland China, 3 in United Kingdom). When all the pipeline hotels became operational, the Group would operate 25 owned hotels with approximately 7,400 rooms.

As at 31 March 2014, Dorsett managed 2 third party hotels under management contracts in Hong Kong with approximately 237 rooms. In November 2013, Dorsett entered into management contracts to manage 4 hotels with total of approximately 1,000 rooms in Malaysia. The management contracts will provide the platform for further expansion of Dorsett Group’s network in South East Asia and provide steady income stream in the future.

3. Car Park Operations and Facility Management

The Group’s car park and facility management business includes car park ownership and operations and property management services.

The division is involved in managing both third party owned car parks and self owned car parks. For the financial year ended 31 March 2014, revenue generated from this operations reached approximately HK$613 million, representing an increase of 8.1%, as compared with that of last financial year. The car park operations achieved steady growth and are expected to continue to contribute the recurring income of the Group.

As at 31 March 2014, the portfolio consisted 305 car parks with approximately 53,400 car parking bays under management. Of these, 21 were self owned car parks (19 in Australia and 2 in Kuala Lumpur) and comprises approximately 5,700 car parking bays (approximately 3,500 in Australia and 2,200 in Kuala Lumpur). The remaining car park portfolio consists of approximately 47,700 car park bays in Australia and New Zealand, which are under management contracts entered into with third party car park owners. Third-party owners included local governments, shopping malls, retailers, universities, airports, hotels, hospitals, government departments and commercial and office buildings.

During the financial year ended 31 March 2014, the Group added a net total of 26 car parks under management with an increase of approximately 3,300 car parking bays.

This division is expanding its geographical coverage which will strengthen the Group’s recurring income business. During the financial year ended 31 March 2014, the division expanded its operation to include property management services via an acquisition of a Melbourne-based company. Currently the division has 10 property management contracts in Australia (mainly in Brisbane, Melbourne and Adelaide) and 1 contract in Johor Bahru, Malaysia.

– 29 –

PROSPECTS

The macro-economic environment for the property sector remains challenging as a result of the tightening measures in Mainland China, Hong Kong and South East Asia.

However, the Group’s regionalisation strategy has resulted in a more balanced business mix and mitigated some risks associated with specific government tightening policies. The Group was also able to time its acquisition to take advantage of property cycles in different regions.

The Group has built a solid foundation in the past few years with clear medium term growth visibility. With the presales that the Group has locked in, and our pipeline projects, performance from property development is expected to be strong in the coming years.

The newly added hotels and the pipeline hotels will add to the recurring income business stream. The car park and facility management division will also continue to grow as the division expands its operations and its geographical coverage.

The Group will continue to take active steps to strengthen its residential property development pipeline and hotel portfolio and will also seek suitable expansion opportunities, such as the recently announced joint bid for the Queen’s Wharf Brisbane development project in Australia. With a strong pipeline, the Group is well-positioned to continue to deliver long term shareholder value through dividend distribution and net asset value creation as demonstrated consistently in the past years.

EMPLOYEES AND REMUNERATION POLICIES

The number of employees of the Group as at 31 March 2014 was approximately 3,100. The Group provides its employees with comprehensive benefit packages and career development opportunities, including medical benefits and both internal and external trainings appropriate to each individual’s requirements.

CORPORATE GOVERNANCE

Throughout the year ended 31 March 2014, the Company has complied with the code provisions (the “Code Provisions”) set out in the Corporate Governance Code (the “CG Code”) contained in Appendix 14 to the Rules Governing the Listing of Securities on the Stock Exchange, except for the deviations from Code Provisions A.2.1 and E.1.2 described below.

– 30 –

Pursuant to Code Provision A.2.1 of the CG Code, the roles of Chairman and Chief Executive Officer should be separate and should not be performed by the same individual. Currently Tan Sri Dato’ David CHIU assumes the roles of both the Chairman and Chief Executive Officer of the Company. The Board believes that this structure provides the Group with strong and consistent leadership and allows for more effective and efficient business planning and decisions as well as execution of long term business strategies. As such, it is beneficial to the business prospects of the Group.

Pursuant to Code Provision E.1.2 of the CG Code, the chairman of a listed issuer should attend the issuer’s annual general meeting. Tan Sri Dato’ David CHIU, the Chairman and Chief Executive Officer of the Company, was unable to attend the annual general meeting held on 29 August 2013 due to his unavoidable business engagement. In view of his absence, Tan Sri Dato’ David CHIU had arranged for other directors and management, who are well-versed in the Company’s business and affairs, to attend the meeting and communicate with shareholders.

AUDIT COMMITTEE

The Audit Committee, comprising all of the Company’s three independent non-executive directors, namely Mr. Kwok Wai CHAN, Mr. Peter Man Kong WONG and Mr. Kwong Siu LAM, has reviewed the audited consolidated results of the Group for the year ended 31 March 2014.

SCOPE OF WORK OF MESSRS. DELOITTE TOUCHE TOHMATSU

The figures in respect of the Group’s consolidated statement of financial position, the consolidated statement of profit or loss, consolidated statement of profit or loss and other comprehensive income and the related notes thereto for the year then ended 31 March 2014 as set out in the preliminary announcement have been agreed by the Group’s auditor, Messrs. Deloitte Touche Tohmatsu, to the amounts set out in the Group’s audited consolidated financial statements for the year. The work performed by Messrs. Deloitte Touche Tohmatsu in this respect did not constitute an assurance engagement in accordance with Hong Kong Standards on Auditing, Hong Kong Standards on Review Engagements or Hong Kong Standards on Assurance Engagement issued by the Hong Kong Institute of Certified Public Accountants and consequently no assurance has been expressed by Messrs. Deloitte Touche Tohmatsu on the preliminary announcement.

PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES

During the year ended 31 March 2014, neither the Company nor any of its subsidiaries has purchased, sold or redeemed any of the Company’s listed securities.

– 31 –

PUBLICATION OF THE RESULTS AND ANNUAL REPORT

This results announcement is published on the website of the Stock Exchange at www.hkexnews.hk and on the website of the Company at www.fecil.com.hk. The Annual Report of the Company for the year ended 31 March 2014 and the notice of 2014 AGM will be despatched to the Shareholders and will also be available for viewing at each of the websites of the Stock Exchange and the Company in due course.

By order of the Board of Far East Consortium International Limited Boswell Wai Hung CHEUNG Chief Financial Officer and Company Secretary

Hong Kong, 26 June 2014

As at the date of this announcement, the Board comprises five executive directors, namely Tan Sri Dato’ David CHIU, Mr. Cheong Thard HOONG, Mr. Chi Hing CHAN, Mr. Dennis CHIU and Mr. Craig Grenfell WILLIAMS; one non-executive director, Mr. Daniel Tat Jung CHIU; and three independent non-executive directors, namely Mr. Kwok Wai CHAN, Mr. Peter Man Kong WONG and Mr. Kwong Siu LAM.

– 32 –