New Future Annual Report 2018 2018 Annual Report
Total Page:16
File Type:pdf, Size:1020Kb
(Incorporated in the Cayman Islands with limited liability) Stock Code: 00830 EXPANDING NEW FUTURE ANNUAL REPORT 2018 2018 ANNUAL REPORT MISSION & VISION he Group up holds its core value of “Integrity, Innovation, Practicality and Excellence”, 出 Tto carry out “quality guaranteed, value generated” operating objective. We take strict control on corporate governance, active participation on social responsibilities, constant hi pursue on further development and a win-win business with our shareholders, employees, partners and the community. The Group insists on sustainable development, forges an res evergreen foundation and steps forward along the target of “a modern international 時 corporate with dual-core traditional curtain wall business and new business” in the new era. 要 轉 用 B版 出 CONTENTS 2 ABOUT FAR EAST GLOBAL 52 REPORT OF THE DIRECTORS 4 FINANCIAL HIGHLIGHTS 61 CONNECTED TRANSACTIONS 5 CORPORATE STRUCTURE 69 AUDITED FINANCIAL INFORMATION 6 MAJOR EVENTS OF THE YEAR 2018 • Independent Auditor’s Report • Consolidated Income Statement 8 BOARD OF DIRECTORS AND • Consolidated Statement of COMMITTEES Comprehensive Income 9 CORPORATE INFORMATION • Consolidated Statement of Financial 10 MAJOR PROJECTS IN PROGRESS Position OVERVIEW • Consolidated Statement of Changes in Equity 12 CHAIRMAN’S STATEMENT • Consolidated Statement of Cash Flows 22 MANAGEMENT DISCUSSION AND • Notes to the Consolidated Financial ANALYSIS Statements 28 DIRECTORS AND ORGANISATION 140 FIVE-YEAR FINANCIAL SUMMARY 35 CORPORATE GOVERNANCE REPORT 42 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT ABOUT FAR EAST GLOBAL 9 14 11 13 8 12 10 11 1 3 2 5 6 1 5 14 INTERNATIONAL 7 3 6 2 13 ADVANTAGES 4 4 7 8 With the new development 12 strategic guideline Established in 1969, Far East Global Group is one of the world’s leading specialty engineering firms in providing one-stop curtain wall and building facade solution for high-end property development projects. Over the years, the Company operated multiple landmark projects in North America, Greater China, Australia as well as United Kingdom. The Company focused on the development of a global industry chain 10 on the back of its inherent strengths as an international operation; on top of the expansion of its traditional curtain wall and general construction business, a strong 15 9 emphasis will be placed on the development of new investment businesses — operating management business. Meanwhile, the Company will actively investigate innovations in its business model and strengthen the collaborative use of internal resources to drive business transformation and upgrade. 1. Boston (USA) 6. New York (USA) 10. Montreal (Canada) 12. Toronto/Vaughan • Millennium Tower • 605 42nd Street • Altoria Tower (Canada) • 620 King Street 2. Baltimore (USA) • 1568 Broadway • Jewish General • Mackenzie Vaughan • MGM National Harbour • New York Police Hospital • L’Avenue Hospital 3. Las Vegas (USA) Academy • Sanitation Garage • Roccabella • Shangri-la Toronto • Cosmopolitan Resort • Trump International • United Nations HQ • St. Justin Hospital Hotel & Casino Hotel & Tower • Mandarin Oriental • UAE Mission • U Condos • The One Hotel • University of Montreal • 540 West 21st Street • York Region • Veer Towers • World Trade Center Hospital Centre 4. Miami (USA) • YUL Condos 13. Vancouver (Canada) 7. San Francisco (USA) • Landmark On Robson • Brickell City Center 11. Quebec (Canada) • Trinity Plaza – Block A • Vancouver Stock • Miami Int’l Airport • Museum Beaux Arts 8. Calgary (Canada) Exchange Renovation • Universite de • SAIT Trades & • Vancouver Urban 5. New Jersey (USA) Sherbrooke – Technology Complex Resort • 99 Hudson Campus Longueuil 9. Edmonton (Canada) 14. Winnipeg (Canada) • Harbourside • Edmonton Ice Tower A • True North Square Phase 1 & 1A • Symphony Tower 15. Santiago (Chile) • Costanera Center (Tower 2) 002 Far East Global Group Limited 2018 ANNUAL REPORT ABOUT FAR EAST GLOBAL 9 14 11 13 8 12 10 11 1 3 2 5 6 1 5 14 7 3 6 2 13 4 4 7 8 12 10 15 9 1. Beijing (China) 7. Hong Kong (China) 9. Melbourne (Australia) 12. Singapore • CYTS Plaza • CUHK Medical Centre • Aurora Melbourne • Marina Bay Sands Central 2. Shanghai (China) • Children’s Hospital Integrated Resort • Prima Pearl • International Financial 13. Dubai (UAE) Centre • Ka Tak Cruise Terminal • Upper West Side T2 • Burj Khalifa • 江森辦公樓 • One Kai Tak • Victoria Police Centre • Darwish Tower 3. Shenyang (China) • Phase 2A, Taikoo Place 10. Perth (Australia) • Sama Tower • New World Int’l • The Emperor Hotel • Elizabeth Quays Convention & 14. Tokyo (Japan) • Shangri-La Hotel Exhibition Centre 11. London (UK) • Chiyoda-Ku 4. Shenzhen (China) • Shatin Communication • 71 Queen Victoria Yonubanchou Building • One Shenzhen Bay and Technology Centre Street • Tokyo Station Yaesu II • Upper Hills • The Bloomsway • One The Elephant project 5. Tianjin (China) 8. Macau (China) • The Stage • Chow Tai Fook • MGM Cotai Financial Centre 6. Changsha (China) • The 13th Hotel • 長沙望城 • Wynn Palace Cotai 2018 ANNUAL REPORT Far East Global Group Limited 003 FINANCIAL HIGHLIGHTS The key financial and business performance indicators comprise revenue growth; profitability growth; return on equity and dividend payout. Details of the key performance indicators are stated as below. 2014 2015 2016 2017 2018 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 Year ended 31 December restated restated restated restated Revenue 1,930,702 2,431,140 2,841,966 3,132,665 3,611,770 Profit attributable to owners of the Company 99,319 111,233 119,168 123,691 148,571 Total assets 2,221,619 2,410,470 2,578,047 2,961,319 3,366,811 Equity attributable to owners of the Company 1,317,991 1,302,155 1,053,906 1,020,469 1,097,291 Return on Equity attributable to owners of the Company (%) 7.5 8.5 11.3 12.1 13.5 Basic earnings per share (HK cents) 4.61 5.16 5.53 5.74 6.89 Dividend (HK cents) 1.0 1.2 1.6 2.0 2.2 REVENUE PROFIT ATTRIBUTABLE HK$ billion TO OWNERS OF THE COMPANY (restated) HK$ million (restated) 2018 3.6 2018 149 2017 3.1 2017 124 2016 2.8 2016 119 2015 2.4 2015 111 2014 1.9 2014 99 0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 0 30 60 90 120 150 2018 REVENUE BY SEGMENTS Construction Engineering Business 93% 2018 Operating Management Business 7% * Construction Engineering Business including facade contracting and general contracting business 004 Far East Global Group Limited 2018 ANNUAL REPORT CORPORATE STRUCTURE FAR EAST GLOBAL GROUP LIMITED Construction Engineering Operating Management Business Business 2018 ANNUAL REPORT Far East Global Group Limited 005 MAJOR EVENTS OF THE YEAR 2018 JANUARY 1) Far East Global Group Limited (“Far East Global”) joined The Community Chest’s Walk for Millions (Hong Kong and Macau). MARCH 1) Far East Global obtained the “Caring Company 5+” label. 2) Far East Global encourage employees to join the “Earth Hour” event which was organized by World Wide Fund for Nature on 24 March 2018. 3) Far East Global announced the acquisition of China Overseas Supervision Limited for RMB70 million. M AY 1) Far East Global obtained the “Talent-Wise Employment Charter and Inclusive Organisations Recognition Scheme Inclusive Organisation” label. JUNE 1) Far East Global obtained the “Happy Company 2018” label. JULY 1) Far East Global obtained the “Outstanding Corporate Social Responsibility Award” by The Mirror. 006 Far East Global Group Limited 2018 ANNUAL REPORT MAJOR EVENTS OF THE YEAR 2018 AUGUST 1) Zhuhai Factory was officially put in use. The factory covers about 85,000 square meters, including two workplaces, an office building, a residential hall and a testing center, which dedicated to design and production, as well as to develop a modern intelligent processing center. 2) Far East Global held the “Company Day” series activities. 3) Announced that Far East Canada has invested a piece of land at Waterloo, Toronto, Canada, for developing senior housing. 4) Gamma Windows and Walls International Inc. won the bid of “The One” project in Toronto, Canada. This is the greatest curtain wall contract since Far East Canada’s 50 years of development. With technical and management advantages, we have won the bid of a well-known contractor, Permasteelisa, and have also established the company’s market in Canada, as well as to consolidate the global leadership of Far East Global’s curtain wall industry. It shows Far East Global’s outstanding performance and local engineering strength. NOVEMBER 1) Far East Global obtained the “Green Office” and “Eco- Healthy Workplace” label by World Green Organization. DECEMBER 1) Far East Global held “Arts for All” with Treats at the Islamic Dharwood Pau Memorial Primary School. 13 Islamic students and 21 volunteers joined this event. 2) Far East Global obtained the “The 9th Merit Award in the Hong Kong Corporate Citizenship Award” label. 3) Far East Global, Far East Aluminium Works Co. Ltd. and Treasure Construction Engineering Ltd. are awarded the Family Friendly Employers Award Scheme — “Family-Friendly Employers” and “Awards for Breastfeeding Support”. Also, the “Family-Friendly Employers 2017/18” label. 2018 ANNUAL REPORT Far East Global Group Limited 007 BOARD OF DIRECTORS AND COMMITTEES BOARD OF DIRECTORS COMMITTEES Chairman and Non-executive Director Audit Committee ZHANG Haipeng ZHOU Jinsong, CPA (Chairman) HONG Winn Executive Directors KWONG Sum Yee Anna WU Mingqing (Vice Chairman and Chief Executive Officer) Remuneration Committee WANG Hai ZHOU Jinsong (Chairman) CHAN Sim Wang ZHANG Haipeng WU Mingqing Non-executive Director HONG Winn HUANG Jiang KWONG Sum Yee Anna Independent Non-executive Directors Nomination Committee ZHOU Jinsong ZHANG Haipeng (Chairman) HONG Winn WU Mingqing KWONG Sum Yee Anna ZHOU Jinsong HONG Winn KWONG Sum Yee Anna West Side Place Stage 1, 250 Spencer Street, Melbourne, Australia 008 Far East Global Group Limited 2018 ANNUAL REPORT CORPORATE INFORMATION AUTHORISED REPRESENTATIVES LEGAL ADVISOR ZHANG Haipeng Mayer Brown JSM WU Mingqing PRINCIPAL BANKERS COMPANY SECRETARY Bank of China (Hong Kong) Limited LAU Shuk Yin Connie BNP Paribas Hong Kong Branch Bank of The West PRINCIPAL SHARE REGISTRAR China Construction Bank Corporation AND TRANSFER OFFICE DBS Bank (Hong Kong) Limited MaplesFS Limited Hang Seng Bank Limited P.O.