SHANGRI-LA ASIA(HK:00069)2025-03-27 09:18Financial Performance - The consolidated revenue for the year ended December 31, 2024, was $2,185.4 million, representing a 2.0% increase from $2,141.8 million in 2023[4]. - The actual attributable revenue from the company, subsidiaries, and joint ventures decreased by 4.2% to $2,653.6 million, down from $2,769.2 million in 2023, primarily due to a significant drop in revenue from properties held for sale, which fell 73.9% from $185.5 million to $48.5 million[8]. - The actual attributable EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $760.1 million, a decrease of 13.0% from $873.6 million in 2023, largely due to a decline in EBITDA from properties held for sale[8]. - The net profit attributable to the company's owners from operations was $115.9 million, down 10.2% from $129.0 million in 2023, influenced by the decrease in EBITDA[8]. - The total net profit attributable to the company's owners for the year was $161.4 million, reflecting a 12.3% decrease from $184.1 million in 2023, impacted by a reduction in non-operating income[8]. - The company reported a decrease in operating profit by 9.4% to $234.9 million in 2024 compared to $214.7 million in 2023[15]. - The total profit attributable to the company for the year ended December 31, 2024, was $161.4 million, a decrease of 12.3% from $184.1 million for the year ended December 31, 2023[50]. - The profit from hotel properties for the year ended December 31, 2024, was $437.6 million, a decrease of 8.4% from $477.6 million for the year ended December 31, 2023[48]. - The profit from hotel management and related services increased by 24.4% to $62.2 million for the year ended December 31, 2024, compared to $50.0 million for the year ended December 31, 2023[48]. - The profit from investment properties was $286.3 million for the year ended December 31, 2024, an increase of 1.8% from $281.3 million for the year ended December 31, 2023[48]. - The profit from properties held for sale and other businesses decreased significantly by 87.2% to $12.2 million for the year ended December 31, 2024, from $95.4 million for the year ended December 31, 2023[48]. Revenue Sources - Hotel operations revenue for the fiscal year ending December 31, 2024, was $2,042.2 million, up 1.0% from $2,021.1 million in the previous year, reflecting a growth of $21.1 million[19]. - Investment property revenue increased to $125.8 million for the fiscal year ending December 31, 2024, a rise of 16.2% from $108.3 million in 2023, primarily due to improved performance in Sri Lanka and Mongolia[19]. - The company reported a 10.4% increase in ancillary service revenue, reaching $106.6 million for the fiscal year ending December 31, 2024, compared to $96.6 million in 2023[19]. - The company’s food and beverage sales decreased by 2.6%, totaling $767.9 million for the fiscal year ending December 31, 2024, down from $788.7 million in 2023[19]. - The company’s revenue from properties held for sale increased by 43.8%, reaching $2.3 million for the fiscal year ending December 31, 2024, compared to $1.6 million in 2023[19]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.10 per share for 2024, compared to HKD 0.15 per share in 2023, maintaining the total dividend for the year at HKD 0.15 per share[5]. - The proposed final dividend for the year ending December 31, 2024, is $45,895,000, with a proposed dividend of 10 Hong Kong cents per share, down from 15 Hong Kong cents per share in 2023[130]. - The company paid dividends totaling $68,701 for the year-end 2023 and $22,945 for the mid-year 2024, reflecting a commitment to returning value to shareholders[92]. Operational Highlights - The company currently operates 106 hotels with a total of 42,600 rooms as of December 31, 2024[11]. - New hotel openings include the Shangri-La in Nanshan, Shenzhen, and the JEN hotel in Kunming, both launched in 2024[12][13]. - The company continues to focus on developing hotel properties, leasing investment properties, and selling properties, maintaining its core business structure[9]. - The company managed a total of 106 hotels and resorts as of December 31, 2024, including 22 third-party owned operating hotels[38]. - Ongoing hotel developments include the Shangri-La in Kunming with 75 rooms expected to open in 2025 and the Shangri-La in Zhengzhou with 314 rooms expected to open in 2026[69]. Financial Position and Debt Management - As of December 31, 2024, the group's net borrowings were $4,421,300,000, a decrease of $296,300,000 from $4,717,600,000 as of December 31, 2023, attributed to strong cash flow from operations and reduced capital expenditures[52]. - The debt-to-equity ratio improved from 86.3% as of December 31, 2023, to 81.3% as of December 31, 2024, reflecting the reduction in net borrowings[52]. - The group secured approximately $1,784,000,000 in bank loan agreements during the year for refinancing maturing loans, with a focus on utilizing RMB financing[52]. - The group held approximately $4,200,000,000 in sustainable development-related bank loans as of December 31, 2024, linked to various sustainability performance targets[54]. - The adjusted total equity of the group was $9,100,000,000 as of December 31, 2024, resulting in a debt ratio of 71.0% based on total financial liabilities of $6,500,000,000[55]. Employee and Leadership Development - The group has invested in leadership development programs, benefiting over 1,400 leaders and future leaders[76]. - The group aims to cultivate future hotel general managers through specific leadership programs targeting emerging leaders and operational leaders[77]. - In 2024, the company launched 38 internally developed courses with a total of 133,815 employee enrollments, averaging 35.6 hours of learning per employee annually[78]. - The overall cultural score from the employee engagement survey was 3.82 out of 4, with a completion rate of 99.5%, marking a historical high[83]. - Over 12,000 employees benefited from the free room and employee discount program in 2024[81]. Market and Regional Performance - In Hong Kong, the occupancy rate rose to 80%, a 10 percentage point increase from 70% in the previous year, with revenue per room increasing by 8% to $215[27]. - In mainland China, the total revenue decreased by 6.7% to $655.2 million, with an occupancy rate of 64% and revenue per room decreasing by 4% to $73[30]. - In Singapore, total revenue decreased by 1.5% to $260.0 million, with an occupancy rate of 78% and revenue per room decreasing by 1% to $206[31]. - In Malaysia, total revenue increased by 6.9% to $112.0 million, with an occupancy rate of 66% and revenue per room increasing by 11% to $89[32]. - In the Philippines, total revenue increased by 16.0% to $156.5 million, despite a decrease in occupancy rate to 55% and revenue per room decreasing by 9% to $118[33]. Future Outlook and Strategic Initiatives - The company plans to continue expanding its investment properties, with new openings contributing additional revenue, including the Fuzhou Shangri-La Center which opened its office section in the second half of 2023 and its commercial section in the first half of 2024[19]. - The company continues to focus on strategic projects to enhance returns and create value for stakeholders while managing costs carefully[87]. - The company plans to launch a new themed room and suite at the Island Shangri-La in Hong Kong in February 2024, enhancing the family-friendly experience[86].