Financial Performance - For the six months ended June 30, 2021, the consolidated revenue was $545.8 million, an increase of 20.4% compared to $453.5 million for the same period in 2020[26]. - The profit before interest, tax, depreciation, amortization, and non-operating items was $49.8 million, improving by $124.6 million from a loss of $74.8 million in the same period last year[28]. - The actual profit attributable to the company, subsidiaries, and associates before interest, tax, depreciation, amortization, and non-operating items was $199.6 million, a significant increase of 618.0% from $27.8 million in the previous year[28]. - The loss attributable to the company for the six months ended June 30, 2021, was $59.8 million, an improvement of $222.8 million from a loss of $282.6 million in the same period last year[28]. - The earnings per share for the period was a loss of $1.673, which is an improvement of 78.9% compared to a loss of $7.915 in the previous year[26]. - The company reported a net loss of $61.9 million for the six months ended June 30, 2021, compared to a net loss of $198.2 million in the same period of 2020[48]. - The total comprehensive loss for the period was $83,393,000, down from $578,617,000 in the same period of 2020[34]. - The company’s total equity as of June 30, 2021, was $5,660,660,000, compared to $5,917,972,000 at the end of June 30, 2020[35]. Assets and Liabilities - As of June 30, 2021, total assets amounted to $13,639,320, a decrease of 2.63% from $14,008,158 on December 31, 2020[31]. - Total liabilities decreased from $7,693,411 to $7,408,518, a decline of approximately 3.70%[32]. - Non-current liabilities, including bank loans, decreased from $4,030,440 to $3,487,453, a reduction of about 13.5%[32]. - The equity attributable to owners of the company was $6,025,267, down from $6,061,589, indicating a decrease of approximately 0.60%[31]. - Cash and cash equivalents decreased from $924,457 to $690,884, a decline of about 25.3%[31]. - The company reported a total of $218.97 million in receivables, prepayments, and deposits as of June 30, 2021, down from $231.84 million at the end of 2020, indicating a decrease in liquidity[56]. Revenue Breakdown - Room revenue increased to $196.3 million, up 15.9% from $169.2 million year-over-year[44]. - Food and beverage sales rose to $223.1 million, a 37.4% increase compared to $162.3 million in the previous year[44]. - The hotel operations segment generated $522.9 million in revenue, with a net loss of $147.5 million, compared to $423.5 million and a net loss of $279.0 million in 2020[48]. - Investment property revenue was $45.6 million, slightly up from $44.5 million year-over-year[48]. - The revenue from properties held for sale decreased by $4.6 million to $6.4 million, primarily due to reduced deliveries of residential units in Sri Lanka and mainland China[111]. Operational Efficiency and Strategic Initiatives - The company continues to focus on improving operational efficiency and enhancing guest experiences as part of its strategic initiatives[25]. - The board of directors has emphasized the importance of adapting to market changes and exploring new opportunities for growth in the hospitality sector[25]. - The company is committed to ongoing investments in technology and service innovations to drive future growth and customer satisfaction[25]. - The management team emphasized ongoing uncertainties in estimates and judgments affecting financial reporting, consistent with prior periods[42]. Shareholder and Governance Information - Kerry Group Limited holds a controlling interest of 1,799,537,010 shares, representing 50.189% of the total issued shares as of June 30, 2021[165]. - Caninco Investments Limited has a beneficial ownership of 568,568,684 shares, accounting for 15.857% of the total issued shares[165]. - The company has complied with the corporate governance code during the relevant six-month period[161]. - The audit and risk committee was reduced to two members after the resignation of a director, but was restored to compliance with three members by appointing KHOO Shulamite N K on August 1, 2021[163]. Future Outlook and Development Plans - The company is in the process of selling an 80% equity interest in a project company in Kyoto, Japan, for approximately $68.61 million, expected to complete by the end of 2021[58]. - The company has ongoing hotel development projects in China and Japan, with a total of 668 hotel rooms expected to open between 2023 and 2024[150]. - The company is reviewing development plans for several hotel projects, including locations in Dalian, Kunming, Rome, Yangon, and Bangkok[152]. - The company plans to open four managed hotels in Beijing, Qiantan, Nanning, and Jeddah, depending on the latest pandemic developments[158].

Financial Performance - The group's consolidated revenue for 2020 was $1,033.4 million, a decrease of 57.5% compared to $2,431.2 million in 2019[7]. - The company reported a loss attributable to shareholders of $460.2 million for 2020, compared to a profit of $152.5 million in 2019[7]. - The earnings before interest, tax, depreciation, and amortization (EBITDA) for the group was $(84.9) million, down from $584.0 million in the previous year[7]. - The net asset value attributable to shareholders decreased by 2.1% to $6,061.6 million from $6,189.6 million in 2019[7]. - The company did not declare any dividends for 2020, compared to 8 cents per share in 2019[7]. - The actual profit attributable to the company before interest, tax, depreciation, and amortization decreased by 79.0% to $181.6 million[23]. - The consolidated loss attributable to the company was $432.1 million before non-operating items and $460.2 million after including non-operating items[23]. - The total comprehensive income for the year ended December 31, 2020, was $1,033.4 million, a decrease of 57.5% from $2,431.2 million in 2019[71]. - Gross profit for 2020 was $362.2 million, reflecting a 72.6% decline from $1,322.6 million in the previous year[67]. - Operating expenses amounted to $499.9 million, which is a 32.4% reduction compared to $739.8 million in 2019[67]. Impact of COVID-19 - The group has faced significant challenges due to the pandemic, impacting overall performance and operational metrics[7]. - The company's consolidated revenue decreased by 57.5% to $1.0334 billion due to the impact of the COVID-19 pandemic[23]. - The actual attributable EBITDA from hotel operations was $865 million in 2019, which significantly declined in 2020[9]. - The company implemented special measures to protect and care for employees and support local communities during the pandemic[23]. - The company provided over 30,000 free meal boxes to local hospitals during the Wuhan outbreak, showcasing its commitment to community support[29]. - The company introduced COVID-19 medical insurance for international travelers visiting its four Singapore hotels starting January 1, 2021[19]. - The company implemented strict workplace hygiene and social distancing measures, including mandatory mask-wearing for all employees[25]. - The company has completed nearly 50% of its refinancing needs for 2021 and 2022 as of March 1, 2021[126]. - The company observed a recovery in the Chinese economy in the second half of 2020, which is expected to continue into 2021[126]. Operational Developments - The company operates in multiple regions including Asia, Europe, and North America, with ongoing projects in various countries[5]. - The company opened the Zhoushan Shangri-La project, featuring an independent restaurant, in January[15]. - In November, the Wuhan Shangri-La Center began trial operations, providing a seamless business experience[18]. - The company announced a management cooperation agreement for the Shenzhen Bay Huiyun Center Shangri-La Hotel project in November[18]. - The company launched a new water park at the Shangri-La Hotel in Singapore in September, marking the largest outdoor water park within a luxury hotel in Singapore[17]. - The company plans to open three new Shangri-La managed hotels in Shanghai, Nanning, and Beijing in 2021, along with a managed hotel in Jeddah, Saudi Arabia[27]. - The company is developing a comprehensive project in Zhengzhou, China, with 45% equity, covering a total area of approximately 44,573 square meters, including residential, office, and commercial spaces, expected to open in 2024[133]. - The company is also developing a comprehensive project in Kunming, China, with 45% equity, covering approximately 15,446 square meters, including residential units[145]. - The company has ongoing construction for the second phase of a comprehensive project in Tianjin, China, with 20% equity, covering approximately 28,413 square meters[143]. Market Strategy and Future Plans - The company is focusing on market expansion and new product development as part of its future strategy[5]. - New product launches are anticipated to contribute an additional $200 million in revenue over the next fiscal year[37]. - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience[38]. - Market expansion plans include entering three new countries by the end of the fiscal year, targeting a potential market of 5 million new users[39]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $100 million allocated for potential deals[40]. - A new marketing strategy has been implemented, focusing on digital channels, which is expected to increase customer engagement by 30%[41]. - The board has approved a new strategy focusing on digital transformation, aiming to increase online sales by 30% over the next two years[46]. Sustainability and Community Engagement - The board of directors emphasized the importance of sustainability initiatives, committing to reduce carbon emissions by 25% over the next five years[43]. - The company has reduced the use of single-use plastics, with 14 hotels now offering canned water or eco-friendly filtration systems[30]. - The company invested in green building certifications, with 37 properties achieving this status[176]. - The new eco-friendly water filtration system at Hong Kong Island Shangri-La Hotel is expected to save up to 45,000 plastic bottles annually[174]. - The company engaged in 2,000+ volunteer activities, contributing over 118,200 volunteer hours during the pandemic[171]. - Shangri-La invested a total of $51,000 in the "Care for Nature" project in 2020, collaborating with local communities to protect natural habitats[180]. - The project successfully protected 54 endangered species globally and released 5,500 baby turtles back into the wild[183]. Shareholder Information - The major shareholder KGL holds 1,799,537,010 shares, representing approximately 50.189% of the total issued shares[193]. - Kerry Holdings, a wholly-owned subsidiary of KGL, holds 1,538,441,491 shares, accounting for approximately 42.907% of the total issued shares[193]. - Caninco Investments Limited holds 568,568,684 shares, which is about 15.857% of the total issued shares[193]. - Paruni Limited owns 382,904,547 shares, representing approximately 10.679% of the total issued shares[193]. - The company did not recommend any interim or final dividends for the fiscal year[186]. - The board of directors confirmed the independence of all independent non-executive directors[189].

Financial Performance - For the six months ended June 30, 2020, the consolidated revenue was $453.5 million, a decrease of 62.1% compared to $1,195.0 million for the same period in 2019[8]. - The company reported a loss of $255.4 million attributable to owners for operating activities, compared to a profit of $64.2 million in the same period last year[6]. - The net loss attributable to owners, including non-operating items, was $282.6 million, compared to a profit of $115.1 million for the same period in 2019[5]. - The earnings per share for the six months ended June 30, 2020, was a loss of 7.915 cents, compared to a profit of 3.221 cents in the same period last year[6]. - The adjusted EBITDA before interest, tax, depreciation, amortization, and non-operating items was a loss of $74.8 million, compared to a profit of $300.9 million for the same period in 2019[8]. - The actual share of EBITDA before interest, tax, depreciation, amortization, and non-operating items was $27.8 million, a decrease of 93.8% from $449.2 million in the same period last year[8]. - The company reported a total comprehensive loss of $578,617,000 for the six months ended June 30, 2020, compared to a comprehensive income of $100,960,000 for the same period in 2019[15]. - The company recognized a loss of $282,627,000 for the period, compared to a profit of $115,061,000 in the first half of 2019[17]. - The company reported a total revenue of $453,536,000 for the six months ended June 30, 2020, a decrease of 62.0% compared to $1,194,994,000 for the same period in 2019[25]. Revenue Breakdown - Room revenue was $169,243,000, down 68.3% from $533,968,000 in the previous year[25]. - Revenue from hotel properties in China was $367.6 million in 2020, down from $1,025.6 million in 2019, indicating a decline of about 64.1%[30]. - The hotel management and related services segment generated $55.9 million in revenue in 2020, down from $115.7 million in 2019, a decrease of approximately 51.7%[30]. - Revenue from hotel properties in Hong Kong decreased by 76.3% to $41.5 million, while revenue from mainland China decreased by 63.6% to $138.4 million[98]. - Total revenue for Hong Kong hotels decreased by 76.3% to $41.5 million for the six months ended June 30, 2020[101]. - Total revenue for mainland China hotels decreased by 63.6% to $138.4 million for the same period[103]. - Total revenue for Singapore hotels decreased by 58.6% to $46 million for the six months ended June 30, 2020[104]. - Total revenue for Japan hotels decreased by 63.2% to $11.4 million for the same period[107]. Operational Metrics - The weighted average occupancy rate for the group's hotels was 26% for the six months ended June 30, 2020, a decrease of 40 percentage points from 66% for the same period in 2019[100]. - Revenue per available room (RevPAR) decreased to $35 for the six months ended June 30, 2020, down 68% from $110 for the same period in 2019[100]. - In Hong Kong, the occupancy rate dropped to 14%, down 68 percentage points from 82% in the previous year, with RevPAR decreasing by 87% to $30[101]. - In mainland China, the occupancy rate was 24%, a decline of 40 percentage points from 64%, with RevPAR falling 70% to $24[102]. - The total number of operational hotels as of June 30, 2020, was 102, with 82 owned/leased hotels and 20 managed hotels[92]. Financial Position - The company's net asset value attributable to owners was $5,660.7 million as of June 30, 2020, down 8.5% from $6,189.6 million as of December 31, 2019[7]. - Total assets as of June 30, 2020, were $13.277 billion, a decrease from $13.722 billion as of December 31, 2019[12]. - Total liabilities increased to $7.359 billion as of June 30, 2020, compared to $7.218 billion at the end of 2019[13]. - The company’s total equity decreased to $5.918 billion as of June 30, 2020, from $6.504 billion at the end of 2019[12]. - The net debt of the group as of June 30, 2020, was $4.572 billion, an increase of $348.1 million from $4.224 billion as of December 31, 2019[125]. - The debt-to-equity ratio increased from 64.9% as of December 31, 2019, to 77.3% as of June 30, 2020[125]. Cost Management and Future Outlook - The company is focusing on cost management and operational efficiency to navigate the challenging market conditions[5]. - Future outlook remains cautious due to ongoing uncertainties in the hospitality sector caused by the pandemic[5]. - The company plans to maintain capital expenditures at a minimum level to preserve cash reserves[141]. - The company has implemented voluntary unpaid leave and salary reductions to lower costs amid the ongoing challenges[141]. - The company is preparing for business recovery while remaining cautious and vigilant in response to the evolving pandemic situation[142]. Shareholder Information - Kerry Group Limited holds a controlling interest of 1,799,537,010 shares, representing 50.19% of the company[149]. - The total shares held by the directors amount to 74,980,551, which is approximately 2.091% of the total issued shares[151]. - The company did not declare an interim dividend for the six months ended June 30, 2020, compared to an interim dividend of 8 cents per share in 2019[71][72]. - The company’s stock options have an exercise price of HKD 12.11, valid until August 22, 2023[155]. - The company’s share reward plan was adopted on May 28, 2012, with subsequent amendments on August 10, 2012, and May 31, 2018[157].

Financial Performance - Total revenue for 2019 was $2,431.2 million, a decrease of 3.4% from $2,517.9 million in 2018[9] - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $584.0 million, down 12.1% from $664.5 million in the previous year[9] - Net profit attributable to shareholders from operating activities was $113.8 million, a decline of 42.3% compared to $197.3 million in 2018[9] - Earnings per share decreased to $4.27, down 20.9% from $5.40 in the previous year[9] - The net asset value attributable to shareholders was $6,189.6 million, a slight decrease of 1.6% from $6,289.0 million in 2018[9] - The consolidated revenue for the fiscal year ended December 31, 2019, decreased by 3.4% to $2.4312 billion[24] - The actual profit attributable to the owners of the company, excluding non-operating items, decreased by 42.3% to $113.8 million[24] - The actual profit before interest, tax, depreciation, amortization, and non-operating items decreased by 8.1% to $864.9 million[24] - The overall profitability was significantly impacted, with the actual profit before interest, tax, depreciation, amortization, and non-operating items for hotel properties decreasing by 9.8% to $545.2 million[24] - The group's operating profit for 2019 was $294.8 million, reflecting a significant increase of 63.3% from $180.5 million in 2018[56] - The net profit attributable to the company's owners for 2019 was $152.5 million, down 20.9% from $192.9 million in 2018[56] - The group's gross profit for 2019 was $1,322.6 million, a decrease of 5.8% from $1,404.6 million in 2018[56] - The total operating expenses for 2019 were $739.8 million, slightly decreased from $742.9 million in 2018[56] - The group's share of profits from associates was $220.4 million, down 27.8% from $305.4 million in 2018[56] Market Strategy and Expansion - The company plans to strengthen focus on the domestic leisure market in China, including family packages and dining promotions[10] - The company is actively exploring market expansion opportunities across Asia and other regions[7] - The company signed a hotel management agreement for a new hotel project in Fuzhou, China, expected to be completed in 2022[18] - The company completed land acquisitions for hotel development in Bangkok, Thailand, and Kyoto, Japan, and signed a lease agreement for a dual-brand hotel at Hongqiao Airport with Shanghai Airport Group[25] - The company is expanding its market presence in Southeast Asia, targeting a 20% market share by 2025[42] - The company is considering strategic acquisitions to bolster its market position, with a budget of $100 million allocated for potential deals[35] - The company is exploring partnerships to enhance distribution channels, aiming for a 15% increase in reach by the end of the year[39] Operational Challenges and Responses - Cost control measures have been implemented in Hong Kong to mitigate financial challenges[10] - The number of visitors to Hong Kong decreased significantly, with the largest drop of 56% occurring in November 2019 due to ongoing protests[24] - The company is actively managing costs to mitigate the impact of the COVID-19 pandemic, including reducing utility, procurement, and labor costs[28] - The company has suspended the payment of the final dividend for the year, maintaining the total annual dividend amount unchanged, with an interim dividend of 8 HK cents[28] - The company has reduced costs in China by approximately 50% as of February 2020[51] - Senior employee salaries will be cut by up to 30% starting in April 2020, with other employees encouraged to take voluntary unpaid leave[51] - The company is focusing on prudent cost control measures in response to unprecedented external factors affecting operations[51] Sustainability and Corporate Social Responsibility - The company introduced a corporate social responsibility program called "Run Towards the Future," promoting a low-carbon lifestyle among employees and customers[19] - The company has adopted a 3R principle (Reduce, Reuse, Recycle) and has implemented measures to eliminate single-use plastic straws and stirrers[26] - The board of directors emphasized the importance of sustainability initiatives, committing to reduce carbon emissions by 25% by 2025[34] - The company has implemented energy-saving measures that resulted in a reduction of total energy consumption by 4% in 2019 compared to 2018[145] - In 2019, the total carbon emissions decreased by 4% year-over-year[145] - The group has banned the use of plastic straws and stirrers across all hotels, saving approximately 6 million plastic items annually[145] - The company has committed to planting 5,000 trees by 2021 through its partnership with Alipay's Ant Forest initiative[146] - A total of 818,000 USD was donated for charitable contributions during the fiscal year[149] Employee Development and Training - The company launched a new online learning platform, Shangri-La Academy, to promote employee growth and development[25] - The group launched an online learning platform in 2019 to enhance employee skills and foster a culture of continuous learning[116] - The company plans to launch over 100 online learning programs in 2020 through the Shangri-La Online Academy[141] - The company is enhancing employee training and learning opportunities during the business slowdown to prepare for market recovery[51] Investment and Financing - The company issued a total of SGD 3.0 billion in bonds in 2019 and 2020, extending the average loan maturity from 2.82 years to 4.34 years, reducing refinancing pressure[26] - The company has cash and cash equivalents of $1 billion and unutilized bank financing commitments of $1 billion as of December 31, 2019[26] - The actual net debt attributable to the group was $4.22 billion as of December 31, 2019, an increase of $148.4 million from $4.08 billion in 2018[94] - The debt-to-equity ratio rose from 61.0% as of December 31, 2018, to 64.9% as of December 31, 2019, primarily due to the adoption of new accounting standards[95] - The group issued fixed-rate bonds totaling SGD 300 million in 2019 to reduce refinancing risk and hedge interest rates[95] Hotel Operations and Performance - Hotel room revenue decreased by 6.6% to $1,067.3 million from $1,143.3 million in 2018[60] - Food and beverage sales declined by 6.4% to $881.2 million from $941.3 million in 2018[60] - The overall impact of the strong US dollar on recurring business was approximately $47.1 million[60] - The group's total hotel property revenue for the year ended December 31, 2019, was $2,066.4 million, a decrease of 6.4% compared to $2,206.9 million in 2018[64] - The weighted average occupancy rate for the group's hotels was 68% for the year ended December 31, 2019, unchanged from the previous year[67] - Revenue per available room (RevPAR) decreased to $110 in 2019, down from $115 in 2018, representing a 4% decline[67] - The total revenue from hotel properties in mainland China decreased by 7.1% to $781.9 million for the year ended December 31, 2019[33] Related Party Transactions - The company has complied with all relevant regulations regarding related party transactions during the fiscal year[183] - The actual transaction amount with SPI for the fiscal year was $1,955,000, compared to $1,876,000 in 2018[186] - The total transaction amount for hotel management services provided to Cuscaden Co was $1,945,000 in 2019, up from $1,470,000 in 2018[188] - The actual transaction amount with Pudong Kerry Company for the fiscal year was $4,508,000, an increase from $3,645,000 in 2018[190] - The company has established annual caps for various related party transactions, reflecting considerations of inflation and currency fluctuations[185]

Financial Performance - For the six months ended June 30, 2019, the consolidated revenue was $1,195 million, an increase of 1.7% compared to $1,175.5 million for the same period in 2018[7]. - The profit attributable to the company's owners, excluding non-operating items, decreased by $16.2 million (20.1%) to $64.2 million from $80.4 million in the previous year[7]. - The total profit attributable to the company's owners, including non-operating items, was $115.1 million, down 24.7% from $152.9 million in the same period last year[7]. - The earnings per share for the period was 3.221 cents, reflecting a decrease of 24.7% compared to 4.276 cents in the previous year[7]. - The actual profit before interest, tax, depreciation, amortization, and non-operating items attributable to the company, subsidiaries, and associates was $449.2 million, down 0.7% from $452.3 million in the previous year[9]. - The company reported a net profit of $124,923, a decrease of 18.2% from $152,619 in the same period last year[16]. - The company reported a significant increase in capital injections and loans to joint ventures, totaling $(8,576) compared to $(18,292) in the previous year, reflecting strategic investments[19]. - The company reported a total of $288.9 million in profits for the six months ended June 30, 2019, down from $317.7 million in 2018[125]. Assets and Liabilities - The net asset value attributable to the company's owners as of June 30, 2019, was $6,212.8 million, a decrease of 1.2% from $6,289 million at the end of 2018[8]. - The net debt attributable to the company, subsidiaries, and associates increased by 7.4% to $4,276.2 million from $3,983.2 million at the end of 2018[8]. - Total assets as of June 30, 2019, amounted to $13,764,952, an increase from $13,170,648 as of December 31, 2018[14]. - Total liabilities increased to $7,239,009 from $6,493,760 at the end of 2018[14]. - The company’s equity totalled $6,525,943, a decrease from $6,676,888 at the end of 2018[14]. - The company’s total liabilities related to non-controlling interests increased to $57,455,000 as of June 30, 2019, compared to $35,050,000 as of December 31, 2018[70]. Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2019, was $42,591, a decrease of 64% compared to $118,204 for the same period in 2018[19]. - Net cash used in investing activities was $(213,276), significantly higher than $(91,381) in the previous year, indicating increased investment outflows[19]. - Cash flow from financing activities generated $27,240, down from $92,987 in the prior year, reflecting reduced financing activities[19]. - The company recognized a net cash inflow from the issuance of bonds amounting to $221,653, indicating a strategy to strengthen its capital structure[19]. - The company reported a capital expenditure of $164,907,000 for property, plant, and equipment during the first half of 2019[43]. Revenue Breakdown - Total revenue for the six months ended June 30, 2019, was $1,194,994,000, compared to $1,175,543,000 for the same period in 2018, representing an increase of approximately 1.5%[32]. - Room revenue decreased to $533,968,000 in 2019 from $560,733,000 in 2018, a decline of about 4.7%[32]. - Food and beverage sales also saw a decrease, falling to $432,816,000 in 2019 from $458,438,000 in 2018, a decline of approximately 5.6%[32]. - The company reported a significant increase in revenue from properties for sale, which rose to $70,466,000 in 2019 from $4,639,000 in 2018, marking a substantial increase of over 1410%[32]. - Total hotel property revenue decreased by 5.1% to $1,025.6 million for the six months ended June 30, 2019, with an adjusted decline of 1.6% after currency effects[106]. Dividends and Shareholder Returns - The board declared an interim dividend of HK$0.08 per share, consistent with the previous year[6]. - The company declared an interim dividend of 8 HK cents per share for the six months ended June 30, 2019, totaling $36,877,000, slightly down from $36,903,000 in 2018[84]. - The company paid dividends amounting to $(67,286), an increase from $(55,053) in the previous year, indicating a commitment to shareholder returns despite cash flow challenges[19]. Accounting Standards and Policies - The company adopted the new accounting standard HKFRS 16 "Leases" effective January 1, 2019, which impacted the financial results for the period[6]. - The adoption of new accounting standards, specifically HKFRS 16, has impacted the recognition and measurement of leases, which may affect future financial reporting[23]. - The company recognized a change in accounting policy under HKFRS 16, resulting in a decrease of $89,575,000 in retained earnings[18]. Market Presence and Operations - The company operates in multiple regions, including China, Singapore, Malaysia, and the Philippines, indicating a broad market presence[33]. - The group owned or managed a total of 102 hotels with 42,000 rooms, including 86 operating hotels and 16 under development[101]. - The company is focusing on stabilizing performance in key markets while navigating external economic pressures[110]. Corporate Governance - The company has complied with corporate governance guidelines and standards during the relevant six-month period[150]. - The company has a comprehensive board manual that aligns with the Hong Kong Stock Exchange's listing rules[150]. - The company maintains a high level of transparency in corporate governance to benefit shareholders[150].

Financial Performance - The consolidated revenue for the year ended December 31, 2018, was $2,517.9 million, an increase of 15.0% compared to $2,189.8 million in 2017[27]. - The profit before interest, tax, depreciation, amortization, and non-operating items for the company and its subsidiaries was $664.5 million, up 24.0% from $535.9 million in 2017[28]. - The actual profit before interest, tax, depreciation, amortization, and non-operating items attributable to the company, subsidiaries, and associates was $940.9 million, an increase of 18.4% from $794.7 million in 2017[28]. - The net profit attributable to the owners of the company was $192.9 million, a rise of 22.1% from $158.0 million in 2017[28]. - Earnings per share for the year was $5.40, reflecting a 21.9% increase from $4.43 in the previous year[27]. - The net debt attributable to the company, subsidiaries, and associates was $3,983.2 million, a decrease of 8.1% from $4,335.8 million in 2017[27]. - The company declared a dividend of 22 cents per share, representing a 29.4% increase from 17 cents per share in 2017[27]. - The company’s net asset value attributable to owners was $6,289.0 million, down 4.7% from $6,602.6 million in 2017[27]. - The group's actual profit attributable to owners, excluding non-operating items, rose by 40.2% to $197,300,000[46]. - The company reported a significant increase in revenue, achieving a total of $1.2 billion, representing a 15% year-over-year growth[52]. Operational Highlights - The company reported a significant increase in operational profitability from hotel management and related services, contributing $604.3 million in 2018[28]. - Revenue generated from hotel operations grew by 9.4% to $2,206,900,000, with a moderate increase in revenue per available room in China of 4.0% to $85[46]. - Investment property revenue increased by 13.2% to $82,600,000, driven by strong rental performance in Ulaanbaatar, Mongolia[46]. - Revenue from development properties for sale surged by 281.2% to $127,700,000, attributed to the delivery of units in the One Galle Face project in Colombo, Sri Lanka[46]. - The average occupancy rate for the group's hotels was 68% in 2018, up from 67% in 2017, with revenue per room increasing to $115 from $109[88]. - The company is actively expanding its operations across Asia, with ongoing projects in multiple countries including China, Malaysia, and Sri Lanka[22]. Strategic Initiatives - The company launched a new mobile app for seamless online and offline experiences, enhancing guest services such as mobile check-in/check-out and instant rewards redemption[33]. - A shared service center was opened in Wuhan, China, aimed at improving management and accounting quality across 39 hotels, with system upgrades continuing into 2019[34]. - A partnership with Tencent was established to develop technology solutions for operational transformation across the group's global businesses[40]. - The company issued SGD 825 million seven-year bonds in Singapore to fund general corporate purposes and refinance existing loans[40]. - The company updated its corporate brand to manage various assets, including four accommodation brands and integrated development projects[37]. Market Expansion and Development Projects - The company is expanding its market presence in Southeast Asia, targeting a 20% market share by 2025[61]. - A new hotel in Melbourne, Australia, is under construction, set to open in 2022 with 492 rooms and extensive facilities[38]. - The company has ongoing hotel development projects in mainland China, including the Zhoushan Shangri-La Hotel (opening in Q4 2019) and Zhengzhou Shangri-La Hotel (opening in 2023) with respective equity stakes of 100% and 45%[131]. - The company is also involved in various other development projects across China, including residential and commercial properties in Shenyang, Wuhan, and Fuzhou, with expected phased openings from 2019 to 2022[145]. Sustainability and Corporate Responsibility - Shangri-La became the first hotel group in Asia to receive certification from the Marine Stewardship Council, involving 53 properties in China and Hong Kong as part of its sustainable sourcing strategy[36]. - The company is committed to sustainable development and has implemented various energy-saving technologies and resource management plans[48]. - The company has been included in the Hang Seng Sustainability Index and the Dow Jones Sustainability Asia Pacific Index in 2018[164]. - The company aims to reduce energy and greenhouse gas emissions by 9% compared to the 2015 baseline[183]. - In 2018, the average energy intensity across 102 properties was 74 kWh per business unit, representing an 8% reduction from the baseline[188]. Employee and Organizational Development - The total employee count for the company and its subsidiaries was approximately 30,500 as of December 31, 2018, with employee benefits expenditure amounting to $812.7 million, up from $723.2 million in 2017[137]. - The average employee turnover rate remained at 25%, reflecting challenges faced in the hotel industry[137]. - The company is focusing on enhancing talent capabilities and organizational capacity to drive business growth, with leadership development programs adjusted to align with revised leadership competencies[137]. - The company has implemented a digital learning platform with over 200 videos and more than 100 other learning materials for employee training[172]. Customer Experience and Feedback - Customer satisfaction ratings improved to 90%, reflecting a 10% increase from the previous year[56]. - The TrustYou performance score for the Shangri-La Group in 2018 was 89.4, indicating an excellent range of 86 to 100[173]. - A total of 138,221 customer feedback entries were recorded in the DR3 tracking system in 2018, with common complaints related to air conditioning, food quality, and check-in times[173]. Challenges and Risks - The company continues to face challenges from currency fluctuations and geopolitical uncertainties, including the US-China trade war and Brexit, which may impact operations[136]. - The company recorded a net loss of $4.4 million from non-operating items for the year ended December 31, 2018, compared to a net gain of $17.3 million in 2017[119].