Asia Standard Hotel : Annual Report 2023

Asia Standard Hotel

Group Limited

Annual Report 2023

HKSE Stock Code: 292

Contents

Contents

1. Corporate Information
2. Financial Highlights
3. Chairman's Statement
4. Business Model and Strategies
5. Management Discussion and Analysis

1. Five-yearFinancial Summary
2. Principal Properties
3. Environmental, Social and Governance Report

1. Corporate Governance Report

1. Directors and Senior Management

1. Report of the Directors

1. Independent Auditor's Report

1. Consolidated Profit and Loss Account
2. Consolidated Statement of Comprehensive Income
3. Consolidated Balance Sheet

1. Consolidated Statement of Cash Flows
2. Consolidated Statement of Changes in Equity
3. Notes to the Financial Statements

ASIA STANDARD HOTEL GROUP LIMITED Annual Report 2023

1

Legal Advisers

Corporate Information

Directors

Registered Office

Executive

Mr. Poon Jing (Chairman)

Dr. Lim Yin Cheng

• (DeputyChairmanandChiefExecutive) Mr. Poon Hai
  Mr. Poon Yeung, Roderick Mr. Fung Siu To, Clement Mr. Woo Wei Chun, Joseph

Independent Non-executive

Mr. Leung Wai Keung, JP

Mr. Wong Chi Keung

Mr. Koon Bok Ming, Alan

Audit Committee

Mr. Wong Chi Keung (Chairman)

Mr. Leung Wai Keung, JP

Mr. Koon Bok Ming, Alan

Victoria Place,	Stephenson Harwood
5th Floor,		18th Floor, United Centre,
31 Victoria Street,	95 Queensway,
Hamilton HM 10,	Hong Kong
Bermuda
		Appleby
Principal Office in	Suites 4201-03 & 12,
Hong Kong	42/F, One Island East,
		Taikoo Place,
		18 Westlands Road,
30th Floor, YF Life Tower,	Quarry Bay, Hong Kong
33 Lockhart Road, Wanchai,
Hong Kong		Independent Auditor
Telephone	2866 3336
Facsimile	2866 3772	PricewaterhouseCoopers
Websitewww.asiastandardhotelgroup.com	Certified Public Accountants
[e-mail]	Registered Public Interest
		Entity Auditor
Principal Bankers	22nd Floor, Prince's Building,
		Central, Hong Kong

Remuneration	HSBC
Bank of China (Hong Kong)	Share Registrar in
Committee
Chong Hing Bank	Bermuda
Mr. Wong Chi Keung (Chairman)	Industrial and Commercial Bank of
China (Asia)	MUFG Fund Services (Bermuda)
Dr. Lim Yin Cheng
Industrial and Commercial Bank of	Limited
Mr. Koon Bok Ming, Alan
China (Canada)	4th Floor North,
Nomination	Fubon Bank (Hong Kong)	Cedar House,
United Overseas Bank	41 Cedar Avenue,
Committee	Shanghai Commercial Bank	Hamilton HM 12,
Mr. Poon Jing (Chairman)	Hang Seng Bank	Bermuda
Chiyu Banking Corporation
Mr. Leung Wai Keung, JP
Bank of Singapore	Hong Kong Branch
Mr. Wong Chi Keung
Bank Morgan Stanley
	Share Registrar and
Authorised	UBS	Transfer Office
Bank Julius Baer
Representatives		Computershare Hong Kong Investor
Dr. Lim Yin Cheng		Services Limited
	Shops 1712-1716, 17th Floor,
Mr. Lee Tai Hay, Dominic
	Hopewell Centre,
Company Secretary		183 Queen's Road East,
	Wanchai, Hong Kong
Mr. Lee Tai Hay, Dominic

2 ASIA STANDARD HOTEL GROUP LIMITED Annual Report 2023

Financial Highlights

For the year ended 31st March	2023	2022	Change
(in HK$ million, except otherwise indicated)
Consolidated profit and loss account
Revenue	927	990	-6%
Operating loss	(37)	(660)	-94%
Depreciation	(117)	(126)	-7%
Net finance costs	(154)	(130)	+18%
Loss attributable to shareholders of the Company	(213)	(746)	-71%
Loss per share - basic (HK cents)	(10.5)	(37.0)	-72%
Consolidated balance sheet
Total assets	9,282	9,114	+2%
Net assets	3,006	2,183	+38%
Net debt	5,284	5,861	-10%

Supplementary information with five hotel properties stated at valuation (note):

Revalued total assets	19,226	17,884	+8%
Revalued net assets	12,950	10,952	+18%
Gearing - net debt to revalued net assets	41%	54%	-13%

Note: According to the Group's accounting policies, the hotel properties were carried at cost less accumulated depreciation. To give further information on the economic substance of its hotel properties investments, the Group hereby presents supplementary unaudited financial information taking into account the fair market value of hotel properties and excluding the corresponding deferred income tax on Hong Kong properties as Hong Kong tax jurisdiction does not include capital gain tax.

The hotel properties were revalued by Vigers Appraisal & Consulting Limited, independent professional valuer, on an open market value basis.

ASIA STANDARD HOTEL GROUP LIMITED Annual Report 2023

3

Chairman's Statement

"Landmark on Robson" : Penthouse ensuite balcony

The Group recorded a consolidated loss attributable to shareholders of approximately HK$213 million for the fiscal year ended 31st March 2023, compared to a loss of HK$746 million the previous year. The decrease in expected credit loss and a net realized and unrealized gain from investments in financial assets compared to a net loss last year caused the more than 71% decrease in consolidated loss from the previous year.

Our empire hotels have increased revenue and turned around into profit compared to last year through our participation in the government's hotel quarantine program when cross-border travel restrictions were in full force, and this was enhanced by the strong recovery in mainland tourism after all borders with China were fully reopened in February 2023.

The twin towers' concrete frame structures of our Landmark on Robson development in Vancouver topped out in May 2022 and are on track to be completed in early 2024.

In mainland China, we have noted efforts by both distressed real estate developers' to restructure their debts and the government's initiatives to ease monetary and regulatory policies in the real estate sector.

Notwithstanding challenges posed by elevated interest rates and geopolitical uncertainties, the Group's financial position remains healthy, with a revalued net asset value of HK$13 billion, gearing of 41%, and about half of our debt being hedged by interest rate swap contracts at a fixed interbank rate of less than 1%. Management is cautiously optimistic and diligent in the face of these uncertainties.

On behalf of the Board, I would like to express my gratitude to our staff for their invaluable contribution, and our customers, shareholders and the investment community for their support.

Poon, Jing

Chairman

Hong Kong, 30th June 2023

4 ASIA STANDARD HOTEL GROUP LIMITED Annual Report 2023