Annual Report 2018

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Annual Report 2018 OUR MISSION “We are a leading global leisure, entertainment and hospitality corporation committed to enhancing shareholder value and maintaining long term sustainable growth in our core businesses.” WE WILL Be responsive to the changing demands Pursue personnel policies which of our customers and excel in providing quality recognise and reward performance and products and services. contributions of employees and provide proper training, development and opportunities for career advancement. Be committed to innovation and the adoption of new technology to achieve competitive advantage. Be a responsible corporate citizen, committed to enhancing corporate Generate a fair return to our shareholders. governance and transparency. 2 3 Genting Hong Kong Limited Annual Report 2018 FORWARD-LOOKING STATEMENTS This annual report contains forward-looking statements that involve risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on the current beliefs, assumptions, expectations, estimates and projections of Genting Hong Kong Limited (the “Company”) about the industry and markets in which the Company and its subsidiaries (the “Group”) are operating or will operate in the future. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the control of the Group, are difficult to predict and could cause actual results to differ materially from those expected or forecasted in the forward-looking statements. Factors that could cause actual results to differ materially from those reflected in the forward-looking statements include general economic, political and business conditions, changes in cruise industry competition, weather, force majeure events and/or other factors. Reliance should not be placed on these forward-looking statements, which merely reflect the view of the Company as of the date of this report only. The Company is under no obligation to revise or update publicly these forward-looking statements or any part thereof to reflect events or circumstances resulting from any new information, future events or otherwise on which any such statement was based. 2 3 Genting Hong Kong Limited Annual Report 2018 CONTENTS Corporate Profile 4 Corporate Information 13 Consolidated Statement 81 Independent Auditor’s 178 of Comprehensive Income Report Genting Cruise Lines Fleet 6 Management’s 14 Discussion and Analysis Consolidated Statement 83 Audited Five Years 185 Resorts World Manila 9 of Financial Condition and of Financial Position Financial Summary Results of Operations Chairman’s Statement 10 Consolidated Statement 85 Properties Summary 186 Directors and Senior 23 of Cash Flows Management Profiles Worldwide Offices 188 Consolidated Statement 88 and Representatives Report of the Directors 28 of Changes in Equity Corporate Governance 49 Notes to the Consolidated 90 Report Financial Statements 4 5 Genting Hong Kong Limited Annual Report 2018 ABOUT US Genting Hong Kong Limited (“Genting Hong Kong”) is Asia, the Dream Cruises experience provides passengers a leading global leisure, entertainment and hospitality with more choice, comfort and value to create a perfect enterprise, with core competences in both land and dream voyage. Explorer Dream, launched in April 2019, sea-based businesses including Genting Cruise Lines will further fuel Dream Cruises’ global aspirations while comprising of Star Cruises, Dream Cruises, and Crystal production has also started in Germany on two new Global Cruises, along with German shipyards MV Werften and Class ships that will join the fleet beginning in Q1 2021. Lloyd Werft, prominent nightlife brand Zouk, and Resorts World Manila (“RWM”), an associate of Genting Hong Kong. Crystal Cruises is the world’s leading luxury cruise provider, having earned more “World’s Best” awards Headquartered in Hong Kong, Genting Hong Kong has than any other cruise line, hotel, or resort in history. In a presence in more than 20 locations worldwide with 2015, Crystal embarked on the most significant brand offices and representation in Australia, China, Germany, expansion in the history of luxury travel and hospitality, India, Indonesia, Japan, Malaysia, the Netherlands, the which introduced two new classes of cruising – Crystal Philippines, Singapore, Sweden and the United States. Yacht Expedition Cruises and Crystal River Cruises – and reached new heights with Crystal Luxury Air and Crystal A pioneer in its own right, Genting Hong Kong was AirCruises. incorporated in November 1993, operating its fleet under Star Cruises, to take on a bold initiative to grow the Asia To capitalize on the growing demand for new cruise ships Pacific region as an international cruise destination. Star and to realize the Company’s own expansion plans, in 2016, Cruises has built its reputation on offering first-rate Asian Genting Hong Kong established MV Werften comprising of hospitality throughout its fleet consisting of SuperStar three shipyards in Wismar, Rostock and Stralsund, Germany Gemini, SuperStar Aquarius, Star Pisces and The Taipan. following the purchase of Lloyd Werft the previous year which specializes in building megayachts and other Dream Cruises’ fleet of Genting Dream (launched 2016) newbuilds. With the consolidated expertise and facilities of and World Dream (launched 2017) deliver the highest the shipyards, including approximately 2,800 experienced level of guest service and spacious comfort in the region. management and workers, MV Werften will be capable of Catering to a wide spectrum of consumers in China and building large-scale mega-ships for the Company. 4 5 Genting Hong Kong Limited Annual Report 2018 CORPORATE PROFILE Zouk is an iconic music-driven entertainment club that performing arts theatre. Travellers has been listed on the provides a world-class clubbing experience by pushing Philippine Stock Exchange since November 2013. the boundaries of electronic dance music and bringing in a constant flow of internationally renowned DJs. As the Genting Hong Kong’s unique venues and itineraries, only club from the Asia Pacific region to regularly retain coupled with a promise to deliver best-in-class services, its top 10 position in DJ Mag’s Top 100 Clubs global poll, will ensure an unforgettable experience for each and Zouk is currently ranked fifth and is the trendsetter in every guest. The Company will continue to leverage propelling Asia’s dance music scene forward. off the Genting Group’s unrivalled regional expertise in land-based resorts development as it looks to expand Travellers International Hotel Group, Inc. (“Travellers”), an its individual footprint. Genting Hong Kong constantly associate of Genting Hong Kong, opened its first land- seeks new scalable business opportunities and ways in based attraction, Resorts World Manila, in the Philippines which the Company can excel and improve its business in August 2009. RWM is the Philippines’ first one-stop, proposition. non-stop vacation spot for top-notch entertainment and world-class leisure alternatives, featuring seven hotels Genting Hong Kong is listed on the Main Board of the including the all-suite Maxims Hotel Manila, an iconic Stock Exchange of Hong Kong Limited under the stock shopping mall, four high-end cinemas and a multi-purpose code “678” and Travellers is listed on the Philippine Stock Exchange under the ticker “RWM”. “Genting Hong Kong’s unique venues and itineraries, coupled with a promise to deliver best-in-class services, will ensure an unforgettable experience for each and every guest.” 6 7 Genting Hong Kong Limited Annual Report 2018 GENTING CRUISE LINES FLEET Genting Cruise Lines is a division of Genting Hong Kong comprising of three distinct cruise brands – Dream Cruises, Crystal Cruises and Star Cruises – providing a range of products from contemporary cruises to ultra-luxurious vacation experiences spanning the sea to air. 1 2 DREAM CRUISES 3 Dream Cruises aims to be a pacesetter in the cruise industry in the region, meeting the needs of the ‘emerging generation’ of confident, independently- minded and upwardly-mobile Asian travellers. Dream Cruises offers inspirational journeys, which are Asian at heart and international in spirit. 1 - Genting Dream 2 - World Dream 3 - Explorer Dream 6 7 Genting Hong Kong Limited Annual Report 2018 CRYSTAL CRUISES By sea, river, land or air, Crystal has redefined the way 5 the world views luxury travel. The world-renowned Crystal Experience – featuring global journeys with Crystal Cruises, Crystal River Cruises, Crystal Yacht Expedition Cruises, Crystal AirCruises and Crystal Air – continues to entice the world’s most discerning travelers with incomparable luxury and unparalleled personal service. 1 6 2 7 3 8 4 10 9 1 - Crystal Serenity 2 - Crystal Esprit 3 - Crystal Symphony 4 - Crystal Debussy 5 - Crystal Bach 6 - Crystal Mozart 7 - Crystal Mahler 8 - Crystal Ravel 9 - Crystal Luxury Air 10 - Crystal Skye 8 9 Genting Hong Kong Limited Annual Report 2018 STAR CRUISES A pioneer in the Asia Pacific cruise industry, Star Cruises has been operating its fleet since 1993, taking on the bold initiative to grow the region as an international cruise destination with its fleet. 1 2 3 4 1 - SuperStar Gemini 2 - SuperStar Aquarius 3 - The Taipan 4 - Star Pisces 8 9 Genting Hong Kong Limited Annual Report 2018 RESORTS WORLD MANILA PHILIPPINES’ PIONEER INTEGRATED RESORT As the Philippines’ pioneer in the integrated resort as its ninth theater offering. The show, Ang Huling El industry,
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