STOCK CODE 股份代號 : 00480 Interim Report 2007/2008 二零零七/二零零八中期報告 HKR INTERNATIONAL LIMITED (Incorporated in the Cayman Islands with limited liability) 香港興業國際集團有限公司 (於開曼群島註冊成立之有限公司) www.hkri.com CONTENTS ͌፣ Pages ࠒω Business and Financial Highlights 1 พ৻ʥল৻ล߬ Interim Results 3 ɻ౨พᐜ Management Discussion and Analysis ဳଉᄙɾদሃʥʗ׹ •Business Review 4 พ৻Αᚋ •Overall Outlook 8 ࢄશ • Human Resources 8 ɁɈ༅฻ •Information Technology 9 ༅঩ޫҌ •Financial Review 9 ল৻Αᚋ Other Information 12 ԯˢ༅ࢿ Condensed Consolidated Income Statement 21 ٲ၃΋νऩעᓯ Condensed Consolidated Balance Sheet 22 ٲ၃΋༅ଐ߲ඦעᓯ Condensed Consolidated Statement of Changes in Equity 24 ٲ၃΋ᚬऩᛰ৽ంעᓯ Condensed Consolidated Cash Flow Statement 27 ٲݚ൴ټ၃΋ଊעᓯ Notes to the Condensed Consolidated Financial Statements 28 ഽڃٲ၃΋ল৻ంעᓯ Independent Review Report 51 ዟ͓ᄗቇంй Corporate Information Inside backcover ʔ̇༅ࢿ ֛۬ʑࠒ BUSINESS AND FINANCIAL HIGHLIGHTS พ৻ʥল৻ล߬ BUSINESS HIGHLIGHTS พ৻ล߬ ɾԑඖ܃Αᚋ౨ʑʥԯכ EVENTS DURING AND SUBSEQUENT TO THE PERIOD UNDER REVIEW May 2007 — Mr CHA Mou Sing Payson and Mr CHA ɀཌྷཌྷȼαʄ˂ — ݅Ꮊᐰͱ́ʥ݅Ꮊι Mou Zing Victor were appointed ͱ́ʗПᏵկͨݯ̯ chairman and deputy chairman of the ʔ̇˚࢐ʥ৹˚࢐ Company respectively Discovery Bay Marina Club won Five Gold ఻ౡᜪ༝ເผ࿘ᏵThe Anchors, the top honour in the Gold Yacht Harbour Anchor Award Scheme run by The Yacht Association Limitedཕ ټᒃᆉི߮ؿʄټHarbour Association Limited ೕ ᒃFive Gold Anchors ௖ঢ়࿘ᙷ June 2007 — Group’s 2006/2007 final results ɀཌྷཌྷȼαʒ˂ — ̯එ྆ɾɀཌྷཌྷʒʼn announcement ɀཌྷཌྷȼαͲαพᐜ ʔЗ July 2007 — Sale relaunch of La Rossa, Tung Chung ɀཌྷཌྷȼαȼ˂ — ࠇณઐਕ׭ࣾɾᄧ ֌g޴ August 2007 — Group’s annual general meeting ɀཌྷཌྷȼαɄ˂ — ̯එ྆ɾٖ׭൪αɣผ Sale relaunch of Chianti, Discovery Bay ࠇณઐਕ఻ౡᜪɾֆఀ September 2007 —The Company entered into a HK$2.5 ɀཌྷཌྷȼαȾ˂ — ̯ʔ͓̇߯25ყಋʏ ൘ጪڌbillion 5-year revolving credit facility ؿʄα౨఩᏷ ༅ October 2007 — The Sentosa Resort & Spa was awarded ɀཌྷཌྷȼαɊ˂ — ັ૭ҳϛఒৈ֙The the Best Spa in Singapore by the SpaAsia Sentosa Resort & Spa Readers’ Choice Award 2006/2007 Εณ˱գ࿘Ᏽɀཌྷཌྷ National Category ʒʼnɀཌྷཌྷȼα SpaAsia Readers¦ Choice AwardਝࡼୂП ɾ௖ԙˋᏻࣦ࿘ November 2007 — The Sukhothai was voted as the best ɀཌྷཌྷȼα — The Sukhothaiৈ֙Ᏽௐ hotel in Thailand and among the top 10 Ɋȹ˂ Շઐ੄ɾInstitutional hotels in the world by the respected Investorᔵႌ˞ᚾّྦྷ Institutional Investor magazine in its Ͳଈ௖ԙৈ֙൬Ϸα۹ annual poll of readers rating the world’s ҙ଩ɾʿβcઐፕݯ࣮ ވ˖best hotels ਝ௖ԙৈ֙c˞ʥ Ɋɣ௖ԙৈ֙ɾȹ The Sentosa Resort & Spa clinched the — ັ૭ҳϛఒৈ֙The— prestigious title “Singapore’s Leading Sentosa Resort & Spa Spa Resort” for the third consecutive year ࿘Ᏽ˖ވࣁ༝ᆉ by the World Travel Awards 2007 2007ࣦ࿘cடᙩɍα ᔊᐲณ˱գ௖ԙ۹৥ ᏻৈ֙ˋ —The Sukhothai ranked the 20th in Asia — ࣓ኣCondé Nast among the top 75 hotels in Asia by the Travelerᚾّሁ݅c כCondé Nast Traveler readers’ survey The Sukhothaiৈ֙ ԓݘ௖ԙȼɊʄංৈ 1 ɻખΊ଱ɀɊ֙ a replica European tall ship namely — ఻ౡᜪʵɃᅩݘঢ়࣢— “Bounty” was introduced in Discovery ̀͝ί୛Ꮬ̵໔ Bay as a new sightseeing attraction for BountycݯಋɁʥ both locals and tourists ༝۪੓Ԟณౡᒨ INTERIM REPORT 2007/2008 ɀཌྷཌྷȼɀཌྷཌྷɄαɻ౨ంй BUSINESS AND FINANCIAL HIGHLIGHTS พ৻ʥল৻ล߬ FINANCIAL HIGHLIGHTS ল৻ล߬ Year ended Six months ended 31 March 30 September ࿀ϭɍ˂ ࿀ϭȾ˂ɍɊˀ˅ ɍɊȹˀ˅ ʒ࠯˂ α۹ 2007 2006 2007 ɀཌྷཌྷȼα ɀཌྷཌྷʒα ɀཌྷཌྷȼα HK$’M HK$’M HK$’M ϛຒಋʏ ϛຒಋʏ ϛຒಋʏ (restated) (restated) ࠇͶ ࠇͶ Results พᐜ Turnover Ꮺพᔾ 2,061.5 1,812.6 2,636.7 Profit from operations Ꮺ༜ึС 969.9 852.9 1,230.9 Profit attributable to shareholders ٖ׭ᎶЌึС 524.3 362.5 1,192.3 Dividends ٖࢠ 270.0 121.5 175.5 Profit from operations per share ҰٖᏪ༜ึС (HK¢) ಋ˦ 71.8 63.2 91.2 Сಋ˦ 38.8 26.9 88.3ޔEarnings per share (HK¢) Ұٖ ؗرFinancial Position ল৻ Total assets ᐢ༅ଐ 17,762.3 15,822.1 15,607.1 Total liabilities ᐢ߲ඦ 7,129.8 6,702.9 5,631.5 Net asset value ༅ଐ૱ࠤ 9,620.1 8,308.3 9,251.8 Net asset value per share (HK$) Ұٖ༅ଐ૱ࠤಋʏ 7.1 6.2 6.9 2 HKR INTERNATIONAL LIMITED ࠗಋጙพਝ჌එ྆τࠉʔ̇ INTERIM RESULTS ɻ౨พᐜ The board of directors (the “Board” or the “Directors”) of HKR HKR International Limitedࠗಋጙพਝ჌එ International Limited (the “Company”) is pleased to announce ྆τࠉʔ̯̇ʔ̇໎ԑผ໎ԑ ᙔʔ̯̇එڃಳۧЗ̯ʔ̇ʥԯ؀the results of the Company and its subsidiaries (the “Group”) for ผ the six months ended 30 September 2007. ྆࿀ϭɀཌྷཌྷȼαȾ˂ɍɊˀ˅ʒ࠯˂ ɾพᐜe The Group’s unaudited consolidated profit attributable to ̯එ྆࿀ϭɀཌྷཌྷȼαȾ˂ɍɊˀ˅ʒ࠯ shareholders of the Company for the six months ended ˂ɾ̯ʔٖ̇׭ᎶЌ̰຤ᄗ࣏၃΋ึСݯ ݯ362.5ϛຒڬSeptember 2007 was HK$524.3 million, compared with 524.3ϛຒಋʏc˾α΃౨ 30 ڬСݯ38.83ಋ˦c˾α΃౨ޔHK$362.5 million for the corresponding period last year. Earnings ಋʏeҰٖ per share was HK38.83 cents, compared with HK26.85 cents for ݯ26.85ಋ˦e the corresponding period last year. INTERIM DIVIDEND ɻ౨ٖࢠ ɀཌྷཌྷȼαɊɀ˂ɀɊɄˀΊכThe Board has declared the payment of an interim dividend of ໎ԑผΉ HK6 cents per share for the six months ended 30 September 2007 Ͷ̯ʔٖ̇׭Ί˫ɾٖ׭ۧݢ࿀ϭɀཌྷཌྷ to shareholders whose names appear on the registers of ȼαȾ˂ɍɊˀ˅ʒ࠯˂ɾɻ౨ٖࢠҰٖ ɀཌྷཌྷɄαȹ˂Ɋכmembers of the Company on 28 December 2007. The interim 6ಋ˦eɻ౨ٖࢠੀ Ήٖ׭ݢೕɻ౨ٖڬdividend will be paid on 14 January 2008. An interim dividend ̒ˀݢೕc˾α΃౨ of HK4 cents per share was paid to shareholders for the ࢠҰٖ4ಋ˦e corresponding period last year. CLOSURE OF REGISTERS OF MEMBERS ᅗ৤ፒଉٖͫ༦ʸ೔তʹᙩ ɀཌྷཌྷȼαɊɀ˂ɀɊȼˀכThe main and branch registers of members of the Company will ̯ʔ̇ੀ be closed on Thursday, 27 December 2007 and Friday, ܱ౨̒ʥɀཌྷཌྷȼαɊɀ˂ɀɊɄˀ ʹDecember 2007, during both days no transfer of shares will ܱ౨ʄԭʨᅗ৤ፒଉٖͫ༦ʸ೔ত 28 ΋༅ࣟᏵՅֺۧݢɾɻ౨ٖړbe registered. In order to qualify for the declared interim ᙩeݯᆢ dividend, all transfers of shares accompanied with the relevant ࢠcֺτٖͫ༦ʸʼͧட΃τᗐٖ଩௖ፖ ɀཌྷཌྷȼαɊɀ˂ɀɊ̒ˀܱ౨ȹכshare certificates must be lodged with the Company’s Hong ඘ ঺༠̯ʔ̇ɾࠗಋٖͫکKong share registrars, Computershare Hong Kong Investor Ɏʟ̒ࣂɍɊʗ Services Limited, at Shops 1712-1716, 17th Floor, Hopewell ༦ʸ೔ত୮ࠗಋɻ̕ᖬԴ೔তτࠉʔ̇c ΍ɣ༞׭183໔΋՗ɻʶ17ޒCentre, 183 Queen’s Road East, Hong Kong for registration not Δэݯࠗಋ later than 4:30 p.m. on Monday, 24 December 2007. ᅢ1712-1716۩cፒଉ೔তʹᙩe 3 INTERIM REPORT 2007/2008 ɀཌྷཌྷȼɀཌྷཌྷɄαɻ౨ంй MANAGEMENT DISCUSSION AND ANALYSIS ဳଉᄙɾদሃʥʗ׹ BUSINESS REVIEW พ৻Αᚋ พೕࢄذ PROPERTY DEVELOPMENT Discovery Bay ఻ౡᜪ ɀཌྷཌྷȼαɄ˂ʹωι˲ઐਕֆఀcݯכ The sale relaunch of Chianti in August 2007 was successful and has brought to the Group a handsome profit. During the six- ̯එ྆੓Ԟ˿ᜮޔСe࿀ϭɀཌྷཌྷȼαȾ month period ended 30 September 2007, 222 units were sold at ˂ɍɊˀ˅ʒ࠯˂cɰਕˮ222࠯௰Ͻc an average selling price of HK$6,305 per square foot GFA. Up to Ұ̡ʿаᅢࠍࠍዶɾ̡яਕძݯ6,305ಋ ϭΑᚋ౨೶Ңݯ˅cୃ߮ɰਕˮقthe period end under review, the cumulative sales was 465 units ʏe representing approximately 88% of the total number of units of 465࠯௰Ͻc޸Ќֆఀ௰Ͻᐢᅕɾ88%eད Chianti. It is anticipated that sales of the remaining units ౨ˮਕ௛቗௰Ͻ˚߬˳ܢႚജऋϳ௰Ͻ comprising mostly specialty deluxe units would further increase ੀผ൬ȹүᄈ˱ֆఀᐢሻਕֺ੡ɾಁඖe the total sale proceeds of Chianti. ఻ౡᜪኟτ50%ɾᚬऩeכThe Group has a 50% interest in Discovery Bay. ̯එ྆ Tung Chung ׭ࣾ ׭ࣾɾ᎚ሔϾΩೕࢄכThe sale relaunch of La Rossa, our quality residential ̯එ྆ʹωઐਕϽ development in Tung Chung received enthusiastic market ඖ͌ᄧ֌g޴c̟௿ʦᎶᆅईc࿀ϭɀཌྷ response, 509 units were sold in the six months ended ཌྷȼαȾ˂ɍɊˀ˅ʒ࠯˂cɰਕˮ509 September 2007 at an average selling price of HK$3,790 per ࠯௰ϽcҰ̡ʿаᅢࠍࠍዶɾ̡яਕძݯ 30 square foot GFA. The cumulative sales reached 765 units, 3,790ಋʏeୃ߮ɰਕˮ765࠯௰ϽcЌᄧ representing 98% with all typical units of La Rossa fully sold. ֌g޴ֺτ௰Ͻɾ98%cԯɻᅟๅ௰Ͻɰ Αᚋ౨ʑc଱ȹ౨ᔂʨࣵ֌כDuring the period under review, 51 more units of phase 1, Coastal Ͳ஫ˮਕe Skyline, were sold at an average price of HK$3,598 per square ʹਕˮ51࠯௰ϽcҰ̡ʿаᅢࠍࠍዶɾ̡ foot GFA. яਕძݯ3,598ಋʏe 524࠯ɻ࢔௰Ͻcܢ˳ȹ౨܃The last phase of Tung Chung comprising 524 midrise units is ׭ࣾඖ͌௖ ɀཌྷཌྷɄααɻໃιeכtargeted to complete by mid 2008. ད߮ ׭ࣾඖ͌ኟτ31%ɾᚬऩeכThe Group has a 31% interest in the Tung Chung project. ̯එ྆ Dazhongli, Jingan ፷ΪਂɣɻԈ ɐࣵ፷ΪਂɾɣɻԈඖ͌ࠖආݒɾΪສכ Progress of resettlement works of phase 1 of the Dazhongli ϭΑᚋ౨قproject in Jingan District, Shanghai is steady and satisfactory. Up ɮೡɾ൬۹ᖇցʥ˥Ɂ࿶෮e to the end of the period under review, about 80% of total units ೶Ңݯ˅cࠖආݒ௰Ͻᐢᅕɻ޸80%ɰᖋ ሰஈזin phase 1 have signed up agreements and/or moved out from ߯ԾᘪʥþֶɰሰˮeωආݒɰᏵ the site. For phase 2, resettlement permit has been obtained and ˿ᖬcԎ̳൬Ϸๅௐ໮ΔᆚɮАe preparatory works is underway. ɣɻԈඖ͌ኟτ50%ɾᚬऩeכThe Group has a 50% interest in the Dazhongli project. ̯එ྆ 4 HKR INTERNATIONAL LIMITED ࠗಋጙพਝ჌එ྆τࠉʔ̇ MANAGEMENT DISCUSSION AND ANALYSIS ဳଉᄙɾদሃʥʗ׹ Chelsea, Shanghai ɐཽࣵԈജ࢓ ৻βϾΩרɐࣵͲ༅ኟτɾႚജכChelsea, the Group’s wholly-owned deluxe serviced apartments ̯එ྆ in Shanghai, continued to deliver a stable stream of recurrent ཽԈജ࢓cै༉ଅၐܛঢ়ͬc̡яˮैଅ ᙩݯ̯එ྆੓Ԟᖇցɾ຤੒ܛincome to the Group by maintaining high rental level and an ൚༦80%c ɈcཽԈജ࢓ੀ൬Ϸجᘏܛړaverage occupancy rate of over 80%. To maintain its ֲνɃeݯ ΋̟௿჏ұʥ౨ٴ˞competitiveness, Chelsea will undergo major renovation to cope ɣஃᅡᓺณɮೡc ɐࣵঢ়ज़כԯܛړ˿Ԉജ࢓ੀཽڌޚwith the market demand and expectation. It is believed that શe ৻βϾΩ̟௿ɾეኒΔϽeר Chelsea will maintain its leading position in the top-end serviced apartments market in Shanghai. The Exchange, Tianjin ʨݛݛමᄤ௿ ɻذᑪܢ˳Phase 1 of the development of The Exchange in Tianjin, which ʨݛݛමᄤ௿ೕࢄඖ͌଱ȹ౨ ˂ɀཌྷཌྷȼαȾכincludes the retail mall and north office tower, recorded excellent ʶʥ˵࢔ፒʔ۩ɣᅢc occupancy rates of 99% and 96% respectively at 30 September ɍɊˀɾˮैଅޚ๫ଉ෱cʗП፣੡99% ۩࢔ፒʔڲܢ˳Official opening of phase 2 of the development comprising ʥ96%eೕࢄඖ͌଱ɀ౨ .2007 ɀཌྷཌྷȼαʒ˂̳βઢכthe south office tower and a hotel was made in June 2007. ɣᅢʥৈ֙cɰ ͂e ʨݛݛමᄤ௿ኟτ15%ɾᚬऩeכThe Group has a 15% interest in The Exchange in Tianjin.