XX酒店财务研究课件

ANNUALREPORT(FinancialAnalysis):Shangri-LAHotels&ResortsHP5033HospitalityManagementAccountingPresentedbyChungMyoungChuFredericaMonakSitiSoffiyahYusoffNurasykinMohdSallehBACKGROUNDOFSHANGRI-LAHOTELSANDRESORTSShangri-LaHotel&ResortsShangri-Lawerelocatedin….Shangri-La’sPhilosophy,Vision,MissionandCareValuesPhilosophyShangri-LahospitalityfromcaringpeopleVisionThefirstchoiceforcustomers,employees,shareholdersandbusinesspartnersMissionDelightingcustomerseachandeverytimeCoreValuesRespect,Sincerity,Helpfulness,Courtesy,HumilityShangri-La’sOperatingStrategies1TechnicalandPre-OpeningServices2MarketingSupport3MarketingInitiativesandActivities4FrequentFlyerPrograms5CustomerLoyaltyProgram6GlobalSalesNetwork7CentralReservationsandPropertyManagementSystemsBusinessActivitiesofShangri-LAHotelsandResortsBUSINESSACTIVITIESBusinessActivitiesOperatingActivitiesFinancialActivitiesPlanningActivitiesInvestingActivitiesPlanningActivitiesAsiaandinparticularMainlandChinahasbeentheprimaryfocusoftheGroup’sbusiness.TheGrouphasactivelypursuedandsuccessfullyconcludedmanagementcontractopportunitiesinAustralia,SouthAsia(MaldivesandIndia)andtheMiddleEast.

TheGroupalsocontinuestoprospectforsuitableopportunitiesinkeygatewaycitiesinEuropeandNorthAmerica.TheGroupviewstheseopportunitieswithstrategicinterestinnotonlyunderpinningthebrandbutalsoimprovingreturnoninvestmentsforshareholders.OperatingActivities“HotelOperation”Ownershipandoperationofhotelbusiness(77%)“HotelManagement”Provisionofhotelmanagementandrelatedservices(1%)“PropertyRentals”Ownershipandleasingofoffice,commercialandserviceapartments(22%)BusinessSegmentsOperatingActivitiesHotelOperationTurnoverfromhoteloperationshasbeenaffectedinrecentyearsbyglobalandregionaleconomicproblems,politicalproblems,theoutbreakofSARSinsomecountriesintheAsianregionin2003.Managementtookimmediateactionstominimizeexpendituresespeciallysalaries,wagesanddiscretionarycosts,conservecashresourcesandmaintainsufficientbankingfacilitiestofundcapitalcommitmentsandworkingcapitalneeds.WiththeprogressiveliftingoftravelwarningsissuedbytheWHOinJune2003,air-travelvolumesandhoteloccupancieshaverecovered.Overallweightedaverageyieldfortheyeardecreasedby11%comparedto2002.OperatingActivitiesHotelManagementSLIMInternationalLimitedanditssubsidiaries(theSLIMGroup),provideshotelmanagementand/ortechnicalconsultationandprojectmanagementservicesforhotelsunderdevelopmentorrenovationandhotelmanagementandmarketingservicesforoperatinghotels.Asat31December2003, -hotelmanagementcontractsinrespectof6operatinghotels -technicalservicesandhotelmanagementcontractsinrespectof12hotelprojectsFinancingActivitiesLoanRemarkHongKongHK$2,600millionMainlandChinaRMBI991millionProjectdevelopmentandworkingcapitalrequirementMalaysiaRM35millionRenovationprojectLoansNetProceedsTheCompanyunderanarrangementinvolvingplacementofexistingsharesandsubscriptiontop-upfornewsharesissued183,832,000newsharedatHK$7.4pershare.(Feb.2004)App.HK$1,360millionTheGroupissuedzerocouponguaranteedconvertiblebondsdueMarch2009,intheaggregateprincipalamountofUS$200millionwithaninitialconversionpriceofHK$9.25pershareoftheCompany.(Mar.2004)App.US$196.4millionSharesCashandBankBalance2003US$63.8million2002US$79.9millionInvestingActivities-RenovationsMajorrenovationsareon-goingatthefollowinghotelsandareexpectedtobeprogressivelycompletedin2004:EdsaShangri-La,ManilaShangri-La’sFijianResort,YanucaShangri-LaHotel,JakartaMajorrenovationsatthefollowinghotels/resortshavebeencompletedin2003:KowloonShangri-La,HongKongChinaWorldHotel,BeijingShangri-LaGoldenFlowerHotel,XianShangri-LaHotel,Singapore(ValleyWing)Shangri-La’sMactanIslandResort,CebuShangri-LaHotel,KualaLumpurShangri-LaHotel,PenangShangri-La’sRasaSayangResort,PenangShangri-La’sTanjungAruResort,KotaKinabaluShangri-LaHotel,BangkokInvestingActivities-RenovationsTheotherrenovationstobecompletedin2004include:Shangri-LaHotel,Singapore(renovationofcoffeegardenandballroom)Shangri-La’sRasaSentosaResort,Singapore(installationofspaandrenovationoffoodandbeveragefacilities)Shangri-LaHotel,Penang(renovationofcoffeegardenandotherfacilities)Shangri-La’sRasaRiaResort,Sabah(guestroomsrenovation)Shangri-LaHotel,Bangkok(installationofspa)MakatiShangri-La,Manila(renovationofsomefoodandbeveragefacilities)EstimatedexpenditureofallsubsidiariesamountingtoUS$71.9millionforrenovationandotherprojectscurrentlyongoingandtobecommissionedin2004willbemainlyfinancedfromoperatingcashflowsoftheindividualhotels,supplementedbylocallycontractedshorttermbankloanswhereappropriate.InvestingActivities-NewProjectsBytheendof2007,theGrouphasanequityinterestwillincreasefrom36asatDecember2003to46andthecorrespondingroominventorywillincreasefrom18,852toapproximately24,498rooms.Investing-ManagementContractsThenumberofoperatinghotelsundermanagementandownedbythirdpartieswillincreasefrom6asat31December2003to18bymid2006andthecorrespondingroominventorywillincreasefrom1,940toapproximately6,565rooms.Investing-TechnologyState-ofartCentralReservationSystemInterfacewithGlobalDistributionSystemPropertyManagementSystem-CentralReservationSystemGroup-wideSales&CateringandSalesForceAutomationSystemNewMaterialsManagementSystem-wiredandwirelessbroadbandinternetAccessHumanResourceSystemUpgradePoint-of-SaleSystemUpgradethetechnologyinfrastructure-tomaximizerevenuepotential,improvestaffproductivity,enhancecustomerrelationsFinancialStatementIncomeStatementorProfitandLossAccountBalanceSheetCashFlowStatementTurnover,revenueandsegmentinformationPrimaryreportingformat-geographicalsegmentsHongKongHotelownership,operationandmanagementMainlandChinaHotelownership,operationandmanagementOwnershipandleasingofoffice,commercialandservicedapartmentsThePhilippinesHotelownership,operationandmanagementSingaporeHotelownership,operationandmanagementOwnershipandleasingofoffice,commercialandservicedapartmentsOtherInvestmentsEquitysecuritieslistedinHongKongincludedsharesinthecompany(“suchSAshares”)withacarryingvalueofUS$12,349,000(2002:US$8,628,000)heldbyShangri-LaHotelPublicCompanyLimited,Thailand(“SHPCL”).SuchSAshares,representingapproximatelyo.6%(2002:0.6%)oftheissuedsharecapitaloftheCompanyasat31December2003,wereheldbySHPCLbeforetheCompanyacquiredthecontrollinginterestsinSHPCLinlate1999.Thecompanyhasundertaken,subjecttomarketconditions,touseitsreasonableendeavorstoproduceSHCPLtodisposeofallsuchSAsharestopartiesindependentoftheKuokGroup.InviewofthetemporarynatureofthisholdinginsuchSAshares,theyhavebeenclassifiedasotherinvestmentsintheseaccounts.BankLoansandOverdraftsandOtherBorrowingsOtherborrowingsrepresentedS$30,000,000unsecuredFloatingRateNotes(the“Notes”)dueinDecember2004issuedbyShangri-LaHotelLimited,Singapore(“SHL”)on13December2002.Asat31December2003,theinterestrateis1.15%perannum(2002:1.45%).Theinterestratewillbere-fixedatevery6monthlyinterval,basedonanagreedformulasetoutintheissuingdocuments.UnlesspreviouslyredeemedatthefacevalueofS$30,000,000onthematuritydateRetainedProfitsIncludedintheretainedprofitsofsubsidiariesandassociatedcompaniesarestatutoryfundsofapproximatelyUS$225,000andUS$16,785,000respectively(2002:US$197,000andUS$15,947,000).ThesefundsaresetupbywayofappropriationfromtheprofitaftertaxationoftherespectiveCompanies,establishedandoperatinginthePRC,inaccordancewiththerelevantlawsandregulations.CashandCashEquivalentsAt31stDecember2003,theGroup'scashandbankbalancesofUS$63,807,000(2002:US$79,853,000)werekeptinthePRC,Malaysia,Thailand,Malaysia,Thailand,theMyanmar.Theremittanceoffundsoutofthesecountriesissubjecttorulesandregulationsofforeignexchangecontrolpromulgatedbythegovernmentsoftherespectivecountries.DividendsHK8centsperordinaryshareAscriptdividendalternativewasalsooffered.Notreflectedasadividendpayableintheseaccounts,butwillbereflectedasanappropriationofretainedearningsfortheyearending31December2004.TheBoardofDirectorsofthecompanyattheboardmeetingheldon21may2003resolvedtochangeitsrecommendationmadeon21March2002todistributeafinaldividendofHK5centspersharefortheyearended31December2002withscripalternativessuchthatnofinaldividendwasrecommendedtobedeclaredfortheyear2002.Asaresult,theamountUS$13,972,000previouslydisclosedasproposeddividendintheauditedconsolidatedbalancesheetasat31December2002includedintheCompany’s2002annualreportisclassifiedaspartoftheretainedprofitsintherestatedconsolidatesbalancesheetasat31December2002.ManagementDiscussionandAnalysisConsolidatedrevenuesofthetwohotelsdecreasedby23%in2003largelyduetoadeclineinrevPARandfoodandbeveragerevenuesfollowingtheoutbreakofSARSinlateMarch2003.MainlandChinaCombinedrevenuesdecreasedby13%in2003.AllthehotelsrecordedadeclineinrevPARwiththeexceptionoftheShangri-LaHotelsinHangzhou,ChangchunandHarbinwhichregisteredanincreaseby1%,7%and6%respectively.ThehotelslocatedinBeijing,Shanghai,andShangzensufferedmostduringtheoutbreakofSARS.HongKongManagementDiscussionandAnalysisCombinedrevenuesofthethreehotelsrecordedadeclineof15%principallyduetotheimpactofSARS.TherevPARoftheTradershotelSingaporeandTheShangri-LaHotelSingaporedecreasedby14%and9%respectively.Shangri-La’sRasaSentosaResortsSingaporealsorecordedadeclineinrevPARby15%.Withimprovementinarrivalsandindicationofrecoveryintheeconomy,thesehotelsareexpectedtoimprovetheirperformances.ThePhilippinesConsolidatedrevenuesdecreasedmarginallyby2%.ApartfromthefalloutfromtheSARSepidemic,thehotelsinthePhilippinescontinuetoexperiencesomeweaknessindemandduetopersistencesecurityconcernsandanuncertaininvestmentclimate.TheGroup’shotelsinManilacontinuetoexperienceratepressures.HowevertheresortsinMactanwhichcompletedtherenovationofitsguestroomsbuyendofOctober2003,registeredarevPARof30%.Theperformanceoftheseresortscontinuestobestrong.SingaporeManagementDiscussionandAnalysisTheconsolidatedrevenueofallthesubsidiariesincreaseby8%duemainlythecontributionfromShangri-LaHotelKualaLumpurreflectingtheongoingbenefitofitsextensiverenovationprogramcompletedinMay2003.ThehotelincreaseditsrevPARby21%comparedto2002.TheShangri-LaHotelPenangalsorecordedanincreaseinrevPARby15%indifficultmarket,drivenbyasteadyimprovementindemandforitsnewlyrenovatedrooms.However,theperformanceofShangri-La’sRasaSayangResortsPenangandShangri-La’sGoldenSandResortsPenangwasadverselyaffectedbytheIraqwarwhichdiscouragedlonghaultravelandtheoutbreakofSARS.MalaysiaManagementDiscussionandAnalysisTheShangri-LahotelBangkokRecordedadeclineinrevPARof17%fortheyear.However,thehotelexperiencedagoodrecoveryespeciallyinthelastquarteranthereafterwhichwasalsofacilitatedbythecompletionofrenovationofitsmainwingguestrooms.FijiConsolidatedrevenuesofthetwohotelsincreasedby6%inlinewithan8%increaseintheweightedaveragerevPAR.Shangri-La’sFijianResortsYanucacommencedtherenovationofitslagoonwingguestroomsinNovember2003whichisexpectedtobecompletedinlate2004.ThailandManagementDiscussionandAnalysisThehotelinJakartaandYangoncontinuetosufferonaccountofthepoliticalandeconomicproblemsfacingIndonesianandMyanmar.IndonesianandMyanmarINFORMATIONACCOMPANYING

FINANCIALSTATEMENTSINFORMATIONACCOMPANYING

FINANCIALSTATEMENTSManagement’sDiscussionandAnalysis

CompanieswithpublicitytradeddebtandequitysecuritiesacquiredbytheSecuritiesandExchangeCommissiontoprovideaManagement’sDiscussionandAnalysis(MD&A)intheirfinancialreports.TheMD&Asectionreviewacompany’sfinancialconditionsandresultsofoperations.Managementmusthighlightanyfavourableorunfavourabletrendsandidentifysignificanteventsanduncertaintiesaffectingthecompany’sliquidity,capitalresources,andresultsofoperations.Theymustalsodiscloseprospectiveinformation.ManagementReportAmanagementreportsetsouttheresponsibilitiesofmanagementinpreparingacompany’sfinancialstatements.Toreinforceseniormanagement’sresponsibilitiesforthecompany’sfinancialandinternalcontrolsystem.2.Toreinforcethesharedrolesofmanagement,directors,andauditorinpreparingfinancialstatements.

Shangri-La’sReportofManagementhighlightstheroleofitsAuditCommitteeoftheBoardofDirectorsinprovidingassuranceontheintegrityofitsfinancialstatements.PurposesofReportAuditorReportFourtypesofauditoropinionsUnqualified(clean)opinionQualifiedopinionAdverseopinionDisclaimerofopinionShangri-La’sReportofIndependentAccountants,preparesbyPriceWaterhouseCoopersExplanatoryNotesExplanatorynotesincludeinformationonAccountingprinciplesandmethodsused.Detaileddisclosureregardingindividualfinancialstatementelements.CommitmentsandcontingenciesBusinesscombinationsTransactionswithrelatedpartiesStockoptionplansLegalproceedingsSignificantcustomersSupplementaryInformationSupplementalschedulesincludeinformationontoBusinesssegmentdataExportsalesMarketablesecuritiesValuationaccountsShort-termborrowingsQuarterlyfinancialdataSeveralsupplementalschedulesappearinthe2003annualreportofShangri-La.TheSECisresponsibleforoverseeingfinancialreportingtoexternalusersforcompanieswithpubliclytradedsecurities.SocialResponsibilityReportsPage42undertheReportoftheDirectors.ThisreportdeclaresShangri-La’scommittedtothecharitiesdonationsandotherdonationsmadebytheGroupduringtheyearamountedtoUS$22,000.00ProxyStatementsProxystatementscontainawealthofinformationregardingacompanyincluding;identityofshareholdersowning5ormorepercentofoutstandingshares,biographicalinformationontheboardofdirectors,compensationarrangementswithofficersanddirectors,employeebenefitplans,andcertaintransactionswithofficersanddirectors.FINANCIAL

STATEMENTANALYSISPREVIEWOFFINANCIAL

STATEMENTANALYSISThesesixareasofinquiryandinvestigationarethebuildingblocksoffinancialstatementanalysis.Short-termliquidity.Acompany’sabilitytomeetshort-termobligations.Fundsflow.Futureavailabilityanddispositionofcash.Capitalstructureandlong-termsolvency.Acompany’sabilitytogeneratefuturerevenuesandmeetlong-termobligations.Returnoninvestment.Acompany’sabilitytoprovidefinancialrewardssufficienttoattractandretainsuppliesoffinancing.Assetutilization.Assetintensityingeneratingrevenuestoreachasufficientlevelofprofitability.Operationperformance.Acompany’ssuccessatmaximizingrevenuesandminimizingexpensesfromlong-runoperatingactivities.ComparativeFinancialStatementAnalysisRATIOANALYSISRATIOANALYSISOFFINANCIAL

STATEMENTSFactorsaffectingratiosRatioInterpretationIllustrationsofRatioAnalysisLiquidityRatiosActivityRatiosLeverageRatiosProfitabilityRatiosShareholders’ReturnRatioChangesinComparativeFinancialStatementAnalysisLiquidityRatiosTypesFormulaYr2003Yr2002InterpretationCurrentRatio

CurrentassetCurrentliability

1.11times

1.28times

abilitytomeetitscurrentfinancialliabilities

QuickRatio

Currentassets–inventoryCurrentliabilities

1.06times

1.22times

abilitytopayoffshort-termobligations

Inventorytonetworkingcapital

Inventory

CurrentAssets–Currentliabilities

0.48times

0.21times

workingcapitalistiedupininventory

LeverageRatiosTypesFormulaYr2003Yr2002InterpretationDebt-to-assetsTotaldebtTotalassets11Totalborrowedfundsasapercentageoftotalassets

Debt-to-equity

TotaldebtTotalshareholderequity

1.81times

1.78times

Borrowedfundsversusthefundsprovidedbyshareholders

Long-termdebt-to-equity

Long-termliabilitiesEquitycapital1.68times

1.678times

Leverageusedbythefirm

Time-interest-earned

Profitbeforeinterest+taxesTotalinterestchange

2.88times

2.99times

abilitytomeetallinterestpayments

ActivityRatiosTypesFormulaYr2003Yr2002InterpretationInventoryturnover

Sales__Inventoryoffinishedgoods

0.12times

0.14times

Theeffectivenessofthefirminemploy