Shangri-La Hotel, Singapore - Lobby

Transcription

1 Shangri-La Hotel, Singapore - Lobby

2 Contents Corporate Information 2 Location of Interests 4 Hotel, Property and Project Information 5 Financial Highlights 6 Operating Statistics and Revenue Analysis 7 Corporate Structure 14 Chairman's Statement 15 Management Discussion and Analysis 18 Report of the Directors 33 Auditors' Report 45 Consolidated Profit and Loss Account 46 Consolidated Balance Sheet 47 Balance Sheet 48 Consolidated Cash Flow Statement 49 Statement of Recognised Gains and Losses 50 Notes to the Accounts 51 Five Year Summary 89 Notice of Annual General Meeting 90 Shangri-La Asia Limited Annual Report

3 Corporate Information (As at 24 March 2000) Board of Directors Executive Mr KUOK Khoon Chen (Chairman) Mr Thaddeus Thomas BECZAK (Deputy Chairman) Mr KUOK Khoon Ho (Managing Director) Mr YE Longfei Mr Tomas Campos ZITA, JR. Mr Giovanni ANGELINI Non-Executive Mr Paul J. C. BUSH Madam KUOK Oon Kwong Mr John David HAYDEN Mr Roberto V. ONGPIN Mr HO Kian Guan Mr Eoghan Murray McMILLAN* Mr QUEK Poh Huat* Mr HO Kian Cheong (Alternate to Mr HO Kian Guan) * Independent Non-Executive Directors Remuneration Committee Mr KUOK Khoon Chen (Chairman) Mr Thaddeus Thomas BECZAK Mr KUOK Khoon Ho Mr Eoghan Murray McMILLAN Mr QUEK Poh Huat Audit Committee Mr Eoghan Murray McMILLAN (Chairman) Mr Roberto V. ONGPIN Mr QUEK Poh Huat Company Secretary Ms KO Sau Lai Auditors PricewaterhouseCoopers Certified Public Accountants 22nd Floor Prince s Building Central Hong Kong Principal Banker The Hongkong and Shanghai Banking Corporation Limited 1 Queen s Road Central Hong Kong Hong Kong Legal Advisers Clifford Chance 30th Floor Jardine House 1 Connaught Place Central Hong Kong Bermuda Legal Advisers Appleby Spurling & Kempe Room 2217 Jardine House 1 Connaught Place Central Hong Kong Registered Address Cedar House 41 Cedar Avenue Hamilton HM12 Bermuda Head Office and Principal Place of Business 21st Floor CITIC Tower No. 1 Tim Mei Avenue Central Hong Kong Principal Share Registrars Butterfield Corporate Services Limited Rosebank Centre 11 Bermudiana Road Pembroke Bermuda Branch Share Registrars in Hong Kong Abacus Share Registrars Limited Room 2401 Prince s Building Central Hong Kong Website: 2 Shangri-La Asia Limited Annual Report 1999

4 The Award-Winning Hotel Group ASIAN WALL STREET JOURNAL 1999 Best Hotel Chain Overall 1999 Best Hotel Chain, Value for Money 1999 Best Hotel Chain for Service 1999 Best Hotel Chain for Facilities 1999 Best Hotel in the following cities: Kuala Lumpur, Manila & Singapore ASIAMONEY 1999 Best Hotel Chain for Business in Asia 1999 Best Hotel in the following cities: Beijing, Hong Kong, Kuala Lumpur & Manila BUSINESS TRAVELLER (UK) 1999 Best Business Hotel Chain in Asia Pacific BUSINESS TRAVELLER (GERMANY) 1999 Best Hotel Chain in Asia CONDÉ NAST TRAVELER (US) Six hotels ranked in Condé Nast Traveler s 1999 Gold List as One of the World s Finest Hotels EUROMONEY 1999 Best Hotel in the following cities: Shanghai, Kuala Lumpur & Manila TRAVEL MANAGEMENT (JAPAN) 1999 Best International Hotel Group TRAVEL WEEKLY (UK) 1999 Best Hotel Chain in Asia TTG ASIA 1999 Hotel Marketer of the Year COUNTRY AWARDS MALAYSIA Shangri-La Hotel, Kuala Lumpur Prime Minister s Quality Award for Excellence HONG KONG Island Shangri-La, Hong Kong Hong Kong Management Association Quality Award

5 Location of Interests Harbin Changchun Shenyang Beijing Dalian Xian Tianjin Qingdao Wuhan Shenzhen Beihai Hong Kong Yangon Penang Bangkok Manila Shanghai Hangzhou Fuzhou Xiamen Taipei Johor Bahru Kuala Lumpur Singapore Cebu Dubai Kota Kinabalu U.A.E. Jakarta Surabaya Fiji Shangri-La (AR) 5P (094) (Vite) 4 Shangri-La Asia Limited Annual Report 1999

6 Hotel, Property and Project Information Shangri-La (AR) 5P (094) (Vite) (A) OPERATING HOTELS, PROPERTIES AND PROJECTS OWNED BY THE GROUP (AS AT 31 DECEMBER 1999) Available Commercial/ No. of (i) Operating Hotels (all managed by the Group) Rooms Office (sqm)* Apartments Hong Kong Kowloon Shangri-La 725 Island Shangri-La 565 Changchun Shangri-La Hotel 458 3, Shenyang Traders Hotel 588 Beijing Shangri-La Hotel 657 China World Hotel 738 Traders Hotel 552 The Kerry Centre Hotel (opened on 28 August 1999) 487 Dalian Shangri-La Hotel 562 Qingdao Shangri-La Hotel 420 Xian Shangri-La Golden Flower Hotel 446 Shanghai Pudong Shangri-La 612 Hangzhou Shangri-La Hotel 389 Shenzhen Shangri-La Hotel 522 Beihai Shangri-La Hotel 362 Wuhan Shangri-La Hotel (opened on 6 April 1999) 507 Harbin Shangri-La Hotel (opened on 23 April 1999) 346 Singapore Shangri-La Hotel 760 Shangri-La s Rasa Sentosa Resort 459 Traders Hotel 547 Malaysia Shangri-La Hotel, Kuala Lumpur 716 Shangri-La Hotel, Penang 445 Shangri-La s Rasa Sayang Resort, Penang 514 Shangri-La s Golden Sands Resort, Penang 395 Shangri-La s Rasa Ria Resort, Dalit Bay Golf & Country Club, Sabah 324 Thailand Shangri-La Hotel, Bangkok 850 Philippines Makati Shangri-La, Manila 703 Edsa Shangri-La, Manila 652 Shangri-La s Mactan Island Resort, Cebu 543 Indonesia Shangri-La Hotel, Jakarta 668 Fiji Shangri-La s Fijian Resort, Yanuca Island 436 Fiji Mocambo, Nadi 128 Myanmar Traders Hotel, Yangon 392 Total 17,468 3, (ii) Operating Properties (all managed by the Group) Dalian Century Tower Apartments 191 Singapore Shangri-La Residences 55 Shangri-La Apartments 127 Malaysia UBN Tower, Kuala Lumpur 32,666 UBN Apartments, Kuala Lumpur 59 Thailand Chao Phya Tower, Bangkok 7,996 Total 40, (iii) Operating Hotel and Properties (not managed by the Group) Beijing Beijing Kerry Centre 93, China World Trade Centre 89, Shanghai Portman Ritz-Carlton Hotel 520 Shanghai Centre 32, Shanghai Kerry Centre 40, Singapore Tanglin Place 3,409 Tanglin Mall 11,384 Malaysia Part of City Square, Johor Bahru 12,477 Total ,370 1,248 Projected Commercial/ Apartments (iv) Projects (all managed by the Group) Notes Rooms Office (sqm)* (sqm) Shenyang Shangri-La Hotel Tianjin Traders Hotel Shanghai Jingan Nanli Shangri-La Hotel Fuzhou Shangri-La Hotel World Trade Centre 1 46,300 42,500 Myanmar Shangri-La Regency Apartments, Yangon 1 60,704 Traders Square Commercial Complex, Yangon 1 3,683 Total 2,237 49, ,204 (B) OPERATING HOTELS AND PROJECTS NOT OWNED BUT MANAGED BY THE GROUP (AS AT 31 DECEMBER 1999) Available (i) Operating Hotels Notes Rooms Malaysia Shangri-La s Tanjung Aru Resort, Kota Kinabalu 495 Indonesia Shangri-La Hotel, Surabaya Taiwan Far Eastern Plaza Hotel, Taipei 422 Philippines Traders Hotel, Manila 304 Total 1,610 Projected Projected No. of (ii) Projects Opening Rooms Apartments Xiamen Shangri-La Hotel End Dubai Shangri-La Hotel End Total Notes: 1. Projects implementation currently suspended. 2. Above information shown on 100% basis. 3. Shangri-La Asia Limited s effective interest in the above see Corporate Structure Shangri-La chart. Asia Limited Annual Report Shangri-La Asia Limited has an effective 8.95% equity interest in Shangri-La Hotel, Surabaya * Commercial/Office lettable area in square metres for operating properties and estimated GFA for China Projects.

7 Financial Highlights FINANCIAL HIGHLIGHTS 99/ Change US$ Million US$ Million % US$ Million US$ Million US$ Million CONSOLIDATED Turnover % Profit attributable to shareholders % Dividends % Shareholders equity 3,106 2,213 40% 2,501 2,393 2,111 Net debt to equity ratio 37% 39% -5% 28% 24% 12% Earnings per share (in US cents) % Dividends per share (in HK cents) Net asset value per share (in US dollars) % Group Operating Profit* by Trade US$ Million Shareholders Equity US$ Million % 70% % 71% 180 2% 29% 69% 134 6% 31% 63% 153 7% 21% 72% 4,000 3,600 3,200 2,800 2,400 2,000 1,600 1, ,111 2,393 2,501 2,213 3, * Before the proportional share of minorities interests, corporate finance charges, corporate expenses, properties valuation deficit and exchange loss on devaluation of foreign currency Hotel operation Properties Hotel management Group Operating Profit* by Geographical Area US$ Million Earnings Per Share US Cents % 53% % 42% 36% 34% 180 2% 29% 38% 31% 134 6% 23% 50% 21% 153 7% 37% 35% 21% * Before the proportional share of minorities interests, corporate finance charges, corporate expenses, properties valuation deficit and exchange loss on devaluation of foreign currency Hong Kong Other Areas Mainland China Hotel management 6 Shangri-La Asia Limited Annual Report 1999

8 Operating Statistics and Revenue Analysis Group s effective Year Hotels interests The People s Republic of China Hong Kong Kowloon Shangri-La 100% Average No. of available rooms Occupancy 66.1% 60.2% 66.8% 83.8% 80.0% Average transient rates (US$) Island Shangri-La 80% Average No. of available rooms Occupancy 73.1% 62.5% 72.7% 81.1% 76.0% Average transient rates (US$) Mainland China Shangri-La Hotel, Beijing 49% Average No. of available rooms Occupancy 67.6% 66.7% 64.3% 65.3% 67.0% Average transient rates (US$) China World Hotel, Beijing 50% Average No. of available rooms Occupancy 68.5% 70.7% 62.7% 66.1% 69.5% Average transient rates (US$) Traders Hotels, Beijing 50% Average No. of available rooms Occupancy 70.3% 75.5% 66.7% 74.9% 86.0% Average transient rates (US$) Portman Ritz-Carlton Hotel, Shanghai 30% Average No. of available rooms Occupancy 71.5% 69.6% 75.4% 76.5% 70.0% Average transient rates (US$) Shangri-La Hotel, Hangzhou 45% Average No. of available rooms Occupancy 55.9% 68.1% 73.2% 64.7% 76.0% Average transient rates (US$) Shangri-La Hotel, Shenzhen 51.30% Average No. of available rooms Occupancy 80.8% 72.1% 74.0% 75.8% 78.0% Average transient rates (US$) Shangri-La Golden Flower Hotel, Xian 100% Average No. of available rooms Occupancy 68.8% 69.8% 67.2% 60.1% 41.0% Average transient rates (US$) Shangri-La Hotel, Beihai 97% Average No. of available rooms N/A Occupancy 41.4% 41.0% 40.6% 38.2% N/A Average transient rates (US$) N/A Shangri-La Hotel, Changchun 90% Average No. of available rooms N/A Occupancy 57.0% 50.8% 47.8% 52.9% N/A Average transient rates (US$) N/A Shangri-La Asia Limited Annual Report

9 Operating Statistics and Revenue Analysis Group s effective Year Hotels interests Mainland China (Cont d) Traders Hotel, Shenyang 97% Average No. of available rooms N/A Occupancy 72.2% 69.5% 61.2% 48.2% N/A Average transient rates (US$) N/A Shangri-La Hotel, Qingdao 100% Average No. of available rooms N/A N/A Occupancy 63.2% 62.0% 58.0% N/A N/A Average transient rates (US$) N/A N/A Shangri-La Hotel, Dalian 90% Average No. of available rooms N/A N/A Occupancy 58.3% 55.7% 81.7% N/A N/A Average transient rates (US$) N/A N/A Pudong Shangri-La, Shanghai 100% Average No. of available rooms N/A N/A N/A Occupancy 62.2% 48.2% N/A N/A N/A Average transient rates (US$) N/A N/A N/A Shangri-La Hotel, Harbin 95% (Opened on 23 April 99) Average No. of available rooms 346 N/A N/A N/A N/A Occupancy 63.9% N/A N/A N/A N/A Average transient rates (US$) 47 N/A N/A N/A N/A Shangri-La Hotel, Wuhan 92% (Opened on 6 April 99) Average No. of available rooms 507 N/A N/A N/A N/A Occupancy 56.2% N/A N/A N/A N/A Average transient rates (US$) 55 N/A N/A N/A N/A The Kerry Centre Hotel, Beijing 22.50% (Opened on 28 August 99) Average No. of available rooms 455 N/A N/A N/A N/A Occupancy 60.2% N/A N/A N/A N/A Average transient rates (US$) 74 N/A N/A N/A N/A Philippines Makati Shangri-La, Manila 100% Average No. of available rooms Occupancy 77.3% 71.3% 80.8% 83.0% 78.0% Average transient rates (US$) Edsa Shangri-La, Manila 100% Average No. of available rooms Occupancy 66.6% 65.2% 78.2% 79.4% 72.0% Average transient rates (US$) Shangri-La s Mactan Island Resort, Cebu 100% Average No. of available rooms Occupancy 67.1% 53.0% 75.5% 78.7% 79.0% Average transient rates (US$) Shangri-La Asia Limited Annual Report 1999

10 Operating Statistics and Revenue Analysis Group s effective Year Hotels interests Malaysia *Shangri-La Hotel, Kuala Lumpur 55.12% Average No. of available rooms Occupancy 56.7% 56.3% 63.5% 73.6% 82.3% Average transient rates (US$) *Shangri-La Hotel, Penang 33.07% Average No. of available rooms Occupancy 65.0% 56.8% 66.2% 69.7% 77.1% Average transient rates (US$) *Shangri-La s Rasa Sayang Resort, Penang 55.12% Average No. of available rooms Occupancy 78.1% 75.2% 64.6% 65.9% 72.5% Average transient rates (US$) *Shangri-La s Golden Sands Resort, Penang 55.12% Average No. of available rooms Occupancy 82.0% 72.4% 59.0% 61.2% 74.5% Average transient rates (US$) *Shangri-La s Rasa Ria Resort, Dalit Bay 49.94% Golf & Country Club, Sabah Average No. of available rooms N/A Occupancy 69.5% 52.1% 55.1% 37.8% N/A Average transient rates (US$) N/A Myanmar *Traders Hotel, Yangon 53.47% Average No. of available rooms N/A N/A Occupancy 28.0% 21.0% 24.0% N/A N/A Average transient rates (US$) N/A N/A Singapore *Shangri-La Hotel 89.50% Average No. of available rooms Occupancy 54.9% 36.0% 68.6% 75.0% 74.2% Average transient rates (US$) * Shangri-La s Rasa Sentosa Resort 53.70% Average No. of available rooms Occupancy 79.1% 75.3% 81.8% 83.4% 82.1% Average transient rates (US$) *Traders Hotel 37.60% Average No. of available rooms Occupancy 77.8% 73.0% 85.7% 88.4% 90.9% Average transient rates (US$) Thailand *Shangri-La Hotel, Bangkok 73.61% Average No. of available rooms Occupancy 69.3% 74.4% 62.6% 59.8% 62.5% Average transient rates (US$) * Hotels acquired by the Group in late Operating statistics of the last five years are given for reference purpose. Shangri-La Asia Limited Annual Report

11 Operating Statistics and Revenue Analysis Group s effective Year Hotels interests Indonesia Shangri-La Hotel, Jakarta 25% Average No. of available rooms (Change from Occupancy 20% to 25% 46.8% 39.1% 73.0% 75.0% 60.0% Average transient rates (US$) w.e.f. 3 July 99) Fiji Shangri-La s Fijian Resort, Yanuca Island 71.64% Average No. of available rooms Occupancy 81.2% 74.3% 71.5% 67.8% 56.4% Average transient rates (US$) Fiji Mocambo, Nadi 71.64% Average No. of available rooms Occupancy 84.1% 71.2% 77.9% 79.8% 67.3% Average transient rates (US$) Properties China World Trade Center 40% Commercial (Change from Average lettable area (sq.m.) 50% to 40% 25,524 17,659 18,119 18,200 18,097 Occupancy w.e.f. 36.7% 94.7% 91.5% 95.0% 93.0% Average rate per sq.m per month (US$) 27 Jan 99) Offices Average lettable area (sq.m.) 63,576 65,644 65,644 64,518 62,324 Occupancy 84.5% 80.3% 89.6% 91.0% 94.0% Average rate per sq.m per month (US$) Serviced Apartments Average lettable area (sq.m.) 51,078 51,078 51,078 51,078 51,078 Occupancy 67.9% 79.2% 83.5% 89.7% 97.0% Average rate per sq.m per month (US$) Total Rental Revenue (US$ 000) 46,166 71,570 89, ,696 86,344 Shanghai Centre 30% Commercial Average lettable area (sq.m.) 7,109 7,109 7,109 7,693 7,751 Occupancy 98.5% 98.4% 98.2% 87.6% 92.0% Average rate per sq.m per month (US$) Offices Average lettable area (sq.m.) 25,562 25,562 25,562 25,553 25,553 Occupancy 82.5% 85.2% 90.7% 94.1% 93.0% Average rate per sq.m per month (US$) Serviced Apartments Average lettable area (sq.m.) 39,780 39,780 39,780 39,780 39,780 Occupancy 77.0% 82.3% 87.9% 94.5% 96.0% Average rate per sq.m per month (US$) Total Rental Revenue (US$ 000) 37,591 52,179 60,215 60,446 51,952 Shangri-La Hotel, Changchun 90% Commercial Average lettable area (sq.m.) N/A Occupancy 51.3% 73.0% 91.4% 100.0% N/A Average rate per sq.m per month (US$) N/A 10 Shangri-La Asia Limited Annual Report 1999

12 Operating Statistics and Revenue Analysis Group s effective Year Properties interests Shangri-La Hotel, Changchun (Cont d) 90% Offices Average lettable area (sq.m.) 2,781 2,781 2,781 2,781 N/A Occupancy 78.5% 62.0% 17.2% 6.7% N/A Average rate per sq.m per month (US$) N/A Serviced Apartments Average lettable area (sq.m.) 4,073 4,073 4,073 4,073 N/A Occupancy 64.8% 64.8% 50.5% 28.5% N/A Average rate per sq.m per month (US$) N/A Total Rental Revenue (US$ 000) 1,731 1,686 1, N/A Dalian Century Tower Apartments 100% Serviced Apartments Average lettable area (sq.m.) 28,624 17,978 7,333 N/A N/A Occupancy 31.5% 36.8% 49.6% N/A N/A Average rate per sq.m per month (US$) N/A N/A Total Rental Revenue (US$ 000) 1,713 1, N/A N/A Beijing Kerry Centre 23.75% Commercial Average lettable area (sq.m.) 12,675 N/A N/A N/A N/A Occupancy 27.1% N/A N/A N/A N/A Average rate per sq.m per month (US$) 9 N/A N/A N/A N/A Offices Average lettable area (sq.m.) 80,485 N/A N/A N/A N/A Occupancy 54.7% N/A N/A N/A N/A Average rate per sq.m per month (US$) 18 N/A N/A N/A N/A Serviced Apartments Average lettable area (sq.m.) 33,718 N/A N/A N/A N/A Occupancy 42.8% N/A N/A N/A N/A Average rate per sq.m per month (US$) 26 N/A N/A N/A N/A Total Rental Revenue (US$ 000) 8,553 N/A N/A N/A N/A Shanghai Kerry Centre 24.75% Commercial Average lettable area (sq.m.) 5,774 N/A N/A N/A N/A Occupancy 11.2% N/A N/A N/A N/A Average rate per sq.m per month (US$) 48 N/A N/A N/A N/A Offices Average lettable area (sq.m.) 34,395 N/A N/A N/A N/A Occupancy 72.0% N/A N/A N/A N/A Average rate per sq.m per month (US$) 15 N/A N/A N/A N/A Serviced Apartments Average lettable area (sq.m.) 16,671 N/A N/A N/A N/A Occupancy 64.6% N/A N/A N/A N/A Average rate per sq.m per month (US$) 34 N/A N/A N/A N/A Total Rental Revenue (US$ 000) 6,406 N/A N/A N/A N/A Shangri-La Asia Limited Annual Report

13 Operating Statistics and Revenue Analysis Group s effective Year Properties interests # Shangri-La Apartments, Singapore 89.50% Serviced Apartments Average lettable area (sq.m.) 9,981 N/A N/A N/A N/A Occupancy 86.7% N/A N/A N/A N/A Average rate per sq.m per month (US$) 52 N/A N/A N/A N/A Total Rental Revenue (US$ 000) 5,064 N/A N/A N/A N/A # Shangri-La Residences, Singapore 89.50% Serviced Apartments Average lettable area (sq.m.) 10,684 N/A N/A N/A N/A Occupancy 86.2% N/A N/A N/A N/A Average rate per sq.m per month (US$) 28 N/A N/A N/A N/A Total Rental Revenue (US$ 000) 3,080 N/A N/A N/A N/A # Tanglin Mall, Singapore 37.60% Commercial Average lettable area (sq.m.) 11,384 N/A N/A N/A N/A Occupancy 99.0% N/A N/A N/A N/A Average rate per sq.m per month (US$) 41 N/A N/A N/A N/A Total Rental Revenue (US$ 000) 5,578 N/A N/A N/A N/A # Tanglin Place, Singapore 37.60% Commercial Average lettable area (sq.m.) 1,069 N/A N/A N/A N/A Occupancy 97.0% N/A N/A N/A N/A Average rate per sq.m per month (US$) 35 N/A N/A N/A N/A Offices Average lettable area (sq.m.) 2,340 N/A N/A N/A N/A Occupancy 39.0% N/A N/A N/A N/A Average rate per sq.m per month (US$) 28 N/A N/A N/A N/A Total Rental Revenue (US$ 000) 580 N/A N/A N/A N/A # UBN Tower, Kuala Lumpur 55.12% Commercial Average lettable area (sq.m.) 2,027 N/A N/A N/A N/A Occupancy 74.0% N/A N/A N/A N/A Average rate per sq.m per month (US$) 30 N/A N/A N/A N/A Offices Average lettable area (sq.m.) 30,639 N/A N/A N/A N/A Occupancy 71.6% N/A N/A N/A N/A Average rate per sq.m per month (US$) 14 N/A N/A N/A N/A Total Rental Revenue (US$ 000) 4,742 N/A N/A N/A N/A 12 Shangri-La Asia Limited Annual Report 1999

14 Operating Statistics and Revenue Analysis Group s effective Year Properties interests # UBN Apartments, Kuala Lumpur 55.12% Serviced Apartments Average lettable area (Unit) 59 N/A N/A N/A N/A Occupancy 55.6% N/A N/A N/A N/A Average rate per unit per month (US$) 1,096 N/A N/A N/A N/A Total Rental Revenue (US$ 000) 1,063 N/A N/A N/A N/A #Part of City Square, Johor Bahru 34.44% Commercial Average lettable area (sq.m.) 10,579 N/A N/A N/A N/A Occupancy 86.0% N/A N/A N/A N/A Average rate per sq.m. per month (US$) 12 N/A N/A N/A N/A Offices Average lettable area (sq.m.) 1,898 N/A N/A N/A N/A Occupancy 100.0% N/A N/A N/A N/A Average rate per sq.m. per month (US$) 10 N/A N/A N/A N/A Total Rental Revenue (US$ 000) 581 N/A N/A N/A N/A # Chao Phya Tower, Bangkok 73.61% Commercial Average lettable area (sq.m.) 1,359 N/A N/A N/A N/A Occupancy 86.9% N/A N/A N/A N/A Average rate per sq.m per month (US$) 6 N/A N/A N/A N/A Offices Average lettable area (sq.m.) 6,637 N/A N/A N/A N/A Occupancy 63.7% N/A N/A N/A N/A Average rate per sq.m per month (US$) 7 N/A N/A N/A N/A Total Rental Revenue (US$ 000) 463 N/A N/A N/A N/A # Properties acquired by the Group in late Operating statistics of full year 1999 are given for reference purpose. Shangri-La Asia Limited Annual Report

15 Corporate Structure As at 31 December 1999 Shangri-La Asia Limited Operating Hotels Properties Projects Others THE PEOPLE S REPUBLIC OF CHINA PHILIPPINES THE PEOPLE S REPUBLIC OF CHINA THE PEOPLE S REPUBLIC OF CHINA LAND Hong Kong Island Shangri-La 80% Kowloon Shangri-La 100% Mainland China Shangri-La Hotel, Beijing 49% China World Hotel, Traders Hotel, Beijing 50% Portman Ritz-Carlton Hotel, Shanghai 30% Makati Shangri-La, Manila 100% Edsa Shangri-La, Manila 100% Shangri-La s Mactan Island Resort, Cebu 100% MALAYSIA Shangri-La Hotel, Kuala Lumpur 55.12% Shangri-La Hotel, Penang 33.07% Shangri-La s Rasa Sayang Resort, Penang 55.12% Shangri-La s Golden Sands Resort, Penang 55.12% Beijing China World Trade Center 40% Shanghai Centre 30% Dalian Century Tower Apartments 100% Beijing Kerry Centre 23.75% Shanghai Kerry Centre 24.75% SINGAPORE Shangri-La Apartments 89.50% Shenyang Shangri-La Hotel 90% Tianjin Traders Hotel 90% Shanghai Jingan Nanli Shangri-La Hotel 85% Fuzhou Shangri-La Hotel 90% World Trade Centre 95% MYANMAR Shangri-La Regency Apartments, Yangon 53.47% Traders Square Commerical Complex, Yangon 53.47% FIJI Natadola Land held for future development 939 acres 71.64% MALAYSIA Palm Beach Land held for future development acres 55.12% HOTEL MANAGEMENT SLIM International Limited 100% Shangri-La Hotel, Hangzhou 45% Shangri-La s Rasa Ria Resort, Dalit Bay Golf & Country Club, Sabah 49.94% Shangri-La Residences 89.50% Shangri-La Hotel, Shenzhen 51.30% MYANMAR Tanglin Mall 37.60% Shangri-La Golden Flower Hotel, Xian 100% Traders Hotel, Yangon 53.47% Tanglin Place 37.60% Shangri-La Hotel, Beihai 97% Shangri-La Hotel, Changchun 90% Traders Hotel, Shenyang 97% Shangri-La Hotel, Qingdao 100% SINGAPORE Shangri-La Hotel 89.50% Shangri-La s Rasa Sentosa Resort 53.70% Traders Hotel 37.60% THAILAND MALAYSIA UBN Tower, Kuala Lumpur 55.12% UBN Apartments, Kuala Lumpur 55.12% Part of City Square, Johor Bahru 34.44% Shangri-La Hotel, Dalian 90% Pudong Shangri-La, Shanghai 100% Shangri-La Hotel, Bangkok 73.61% INDONESIA THAILAND Chao Phya Tower, Bangkok 73.61% Shangri-La Hotel, Harbin 95% Shangri-La Hotel, Jakarta 25% Shangri-La Hotel, Wuhan 92% The Kerry Centre Hotel, Beijing 22.50% 14 Shangri-La Asia Limited Annual Report 1999 FIJI Shangri-La s Fijian Resort, Yanuca Island 71.64% Fiji Mocambo, Nadi 71.64%

16 Chairman s Statement On behalf of the Board of Directors, I wish to present the seventh Annual Report of Shangri-La Asia Limited. GENERAL Following the corporate reorganisation leading to the acquisition of a majority equity interest in the three Shangri-La hotel companies listed on the Singapore, Thailand and Kuala Lumpur Stock Exchanges in the second half of the year, the Group decided to change its reporting currency from Hong Kong dollars to United States dollars which is considered more representative of our diversified revenue and asset base. This change was made retroactive to 1 January Accordingly, the attached Financial Statements have been drawn up in United States dollars. RESULTS The consolidated profit attributable to shareholders for the year ended 31 December 1999 was US$67.3 million (US3.53 cents per share) compared to US$51.9 million (US2.89 cents per share) in DIVIDENDS The Directors recommend a final dividend of HK8 cents per share. With the interim dividend of HK7 cents per share paid in October 1999, the total dividend for 1999 is HK15 cents per share. CORPORATE Reorganisation During the second half of the year, the Company made voluntary general offers to the shareholders of Shangri-La Hotel Limited, Singapore, Shangri-La Hotel Public Company Limited, Thailand and Shangri-La Hotels (Malaysia) Berhad, Malaysia offering to acquire a majority of their paid-up equity capital. These acquisitions were mainly financed by issue of new equity shares and a small part by cash. On completion of these transactions, the Company now holds 89.50% of Shangri-La Hotel Limited, Singapore, 73.61% of Shangri-La Hotel Public Company Limited, Thailand and 55.12% of Shangri-La Hotels (Malaysia) Berhad, Malaysia. In terms of the approvals received from the regulatory authorities in Malaysia, the Company is obliged to reduce its holding in the Malaysian company to 51% by 31 December Borrowings During the year, the Group repaid US$213 million of maturing debt at the corporate level. The Group s subsidiaries in the Philippines (Mactan Shangri-La Hotel & Resort, Inc.) and in The People s Republic of China ( PRC ) (Shenzhen Shangri-La Hotel Limited) repaid a total of US$1.3 million of maturing debt to banks. The Group drew down US$270 million on its existing loan facilities and US$41.6 million from new loan facilities it had contracted during the year. The funds were applied to meet maturing debt obligations, payments on projects under implementation and for partially financing the acquisition of Shangri-La Hotel Public Company Limited, Thailand. Major repayments due within the next twelve months comprise the 2.875% convertible bonds issued by Shangri-La Asia Capital Limited, a wholly-owned subsidiary of the Company, (the Convertible Bonds ) (Face Value: US$235 million) and the bank loan of US$237 million due on 15 March The Company is in discussions with various banks to refinance its maturing debt and is confident of obtaining timely refinancing on favourable terms. Shangri-La Asia Limited Annual Report

17 Chairman s Statement The Group has satisfactorily complied with all covenants under its loan agreements. Repurchase, Sale or Redemption of listed securities There was no purchase, sale or redemption by the Company or any of its subsidiaries of any of the Company s listed securities during the year ended 31 December China World Trade Center Ltd. ( CWTC ) (Company s interest 50%) Following the listing of CWTC s subsidiary China World Trade Center Company Limited ( CWTC Listco ) on the Shanghai Stock Exchange, the Company s effective interest in CWTC Listco was reduced to 40%. This resulted in a release of the investment properties revaluation reserve of US$23.8 million held in the Company s books and a profit arising from the dilution of interests in CWTC Listco of which the Company s share amounted to US$5.6 million. Share Option Scheme In terms of the Executive Share Option Scheme (the Option Scheme ) adopted by the Company on 16 December 1997, subsequent to the year end, the Directors have granted additional options on 9,870,000 shares to eligible executives of the Group at a subscription price of HK$8.55 per share. The exercise of these new options is governed by a two-year vesting scale. According to the terms of the Option Scheme, options on 1,890,000 shares have so far lapsed. As of this date, the options outstanding aggregate to 24,930,000 shares. Projects The 507-room Shangri-La Hotel, Wuhan opened on 6 April The 346-room Shangri-La Hotel, Harbin opened on 23 April The Kerry Centre Hotel, Beijing which comprises 487 rooms and is part of the Beijing Kerry Centre mixed-use complex, opened on 28 August These hotels are gradually consolidating their market positions. CWTC completed Phase II of its development in December 1999 comprising 50,686 square metres of office space and 6,448 square metres of retail space. Approximately 72% of this retail space and 37% of the new office space has been leased. CWTC also invested in a residential project comprising 420 units in two towers with a lettable space of 31,802 square metres. One of these towers was completed by 31 December 1999 and is currently 45% leased. During the year, the Group s newly acquired subsidiary in Singapore, completed a major renovation of the Shangri-La Hotel s Tower Block comprising 525 rooms and other facilities. The renovation was substantially completed by 31 May 1999 and has had very favourable guest response. FUTURE PROSPECTS Most economies in the region showed signs of recovery in Their recoveries are expected to accelerate in In particular, with the PRC s admission to the World Trade Organisation in 2000 increasingly likely, it is generally expected that the PRC (including Hong Kong) will benefit economically. The Group s hotels have experienced improving patronage from intra-regional travelers during As expected, overall occupancies at the Group s hotels gained momentum in the last quarter of 1999 and most of them have continued to experience good levels of occupancy in the first two months of Shangri-La Asia Limited Annual Report 1999

18 Chairman s Statement The Group s hotels in the PRC continue to enjoy increasing patronage from domestic travelers who are exhibiting improved propensity to spend. Over time this will give the Group s hotels a stable demand base to implement yield management and other revenue optimisation measures to improve profitability of our investments. The Group now has three marketing offices in Beijing, Shanghai and Guangzhou respectively. It is expected that a number of our hotels will see a return of pricing power in Sustained periods of high occupancies will allow hotels to manage their room inventories more efficiently and improve yields. With the high operational leverage in the business, the operating profits should improve substantially. Additionally, the three newly acquired subsidiaries will be contributing a full year s earnings to the Group in On the supply front, there is little, if any, new supply in our competitive set in most of the markets in which we operate. This will also help in the yield improvement efforts. The Group continues to aggressively manage its costs. The initiatives it has taken in this regard over the few years in the area of materials and purchased services, labour and process rationalization continue relentlessly. Further cost efficiencies are expected to be achieved over the coming years. The Group is also actively researching the use of appropriate technology to help achieve these objectives. TECHNOLOGY The Group fully appreciates the need to be at the leading edge of technology. Our website is currently being upgraded. Thereafter, later in the year, the Chinese and Japanese versions of the website will be launched. A group-wide roll out of a system to provide high-speed broad band internet access to guestrooms has just begun and a substantial part of the rooms inventory is expected to be covered in Finally, the Group is studying the use of the internet to improve purchasing efficiencies. ACKNOWLEDGEMENT Shangri-La is widely recognised as one of the dominant hotel chains in Asia. This success has been built-up and sustained by the hard work and dedication of the management and staff of the Group. On behalf of the Board, I wish to thank them for their conscientious efforts. KUOK Khoon Chen Chairman Hong Kong, 24 March 2000 Shangri-La Asia Limited Annual Report

19 Management Discussion & Analysis 1. CORPORATE REORGANISATION The Shangri-La hotel group grew rapidly during the past decade in terms of the number of properties and the size of its investments. With a favourable market environment in the ASEAN countries, most of the investments came to be listed on local stock exchanges principally Singapore, Kuala Lumpur, Thailand, as well as on the Stock Exchange of Hong Kong. The substantial growth and the listing of the investment companies led to the emergence of four distinct public companies, each carrying the Shangri-La name, and a cross shareholding structure which was regarded as complex and lacking in transparency. With the object of streamlining the ownership structure, the Company made voluntary general offers to shareholders of the Shangri-La hotel companies listed on the Singapore, Thailand and Kuala Lumpur Stock Exchanges. The resulting acquisitions were mainly financed by the issuance of additional equity shares and, in the case of the Bangkok hotel, partly by cash. On completion, the Company issued an additional 422,482,682 equity shares at an issue price of HK$8.38 per share and made a cash payment of US$37.6 million. The Company now holds 89.50% of the paid-up equity capital of Shangri-La Hotel Limited, Singapore; 73.61% of the paid-up equity capital of Shangri-La Hotel Public Company Limited, Thailand and 55.12% of the paid-up equity capital of Shangri-La Hotels (Malaysia) Berhad, Malaysia. The reorganisation has led to the emergence of a stronger corporation, diversified business and currency risks for the shareholders of the Company and subsidiaries alike, and has made the ownership structure of assets within the Shangri-La group more transparent. The acquisition was completed on 8 November 1999 and the results for the year incorporate the operating results of the newly acquired companies from the date of their acquisition. The reorganisation has also resulted in the Group having to deal with a more diverse portfolio of currencies in its revenue stream and in the underlying values of its properties. Consequently, the Group believes that the Hong Kong dollars is no longer a representative currency for drawing up its financial statements. Accordingly, the Group decided to adopt the United States dollars as its reporting currency effective 1 January Corresponding numbers for 1998 have also been restated in United States dollars. Shangri-La Hotel, Kuala Lumpur Lobby 18 Shangri-La Asia Limited Annual Report 1999

20 Management Discussion & Analysis 2. OPERATIONS REVIEW Combined Revenue by Trade Change US$ million % US$ million % % Hotels* % % +19% Properties % % -12% Total % % +12% * includes revenues of the hotel management company. Combined Revenue by Geographical Area Change US$ million % US$ million % % The People s Republic of China Hong Kong* % % +3% Mainland China Hotels % % +9% Properties % % -17% Philippines % % +6% Singapore 41 5% 0 0% N/A Malaysia 15 2% 0 0% N/A Thailand 11 1% 0 0% N/A Fiji 23 3% 20 3% +15% Indonesia 23 3% 18 2% +28% Myanmar 1 0% 0 0% N/A Total % % +12% * includes revenues of the hotel management company. (a) Combined Revenue Hotels The People s Republic of China Hong Kong Combined revenues of the two hotels in Hong Kong increased by 4.5% in 1999 to US$140.2 million. While combined occupancies increased by 8.0% during the year, the combined average transient rates ( ATRs ) declined by 10.1%. Overall Revenue per Available Room ( RevPAR ) grew by 1%. However, combined occupancies during the last quarter of 1999, at 81.0%, showed an increase of 11.6% over the corresponding period in 1998 indicating a firming up of demand. The hotels continued to encounter rate resistance during the year. Nevertheless, late in the year, this pressure also started to subside. The hotels expect to see some pricing power return in 2000 if firmness in demand continues. Shangri-La Asia Limited Annual Report

21 Management Discussion & Analysis Mainland China Combined revenues of the hotels showed a modest growth of 9% in This was due to the opening of three new hotels in 1999 and a full year of operations at the Pudong Shangri-La in Shanghai. Several hotels registered declines in revenue over 1998, notably the China World Hotel, Traders Hotel and Shangri-La Hotel in Beijing. While occupancies at most hotels were close to those of 1998, the ATRs registered declines ranging from 0.4% to 18.7%. The market continues to be very rate sensitive. RevPAR at most hotels was comparable to the previous year or showed modest declines. The three newly opened hotels in Beijing, Wuhan and Harbin have registered respectable occupancies since their opening. Patronage by PRC nationals for the Group s hotels has been increasing at an impressive rate. In some of the hotels in the Northeast they account for 75% of the total roomnights occupied. Going forward, we believe this will give us a stable demand base to optimize yields at the hotels. Recognizing the importance of this market, the Group now has sales offices in Beijing, Shanghai and Guangzhou which are the major demand generating centres in the country. This client base is a focus for the Group. There is also general optimism about the favourable impact of the PRC s imminent admission to the World Trade Organisation on the domestic economy and domestic and international travel. This should augur well for the hotel industry. The growth in travel to and within the PRC is expected to exceed that of more developed economies. Philippines Though the three hotels in the country were subject to rate pressures, occupancies at these hotels registered year on year increases. The combined RevPAR at the two Manila hotels registered a decline of 5.9% over 1998 but the resort in Mactan, Cebu registered a RevPAR increase of 8%. This resort is expected to maintain a good growth rate with the return to normalcy in airlinks to Cebu. The situation at the hotels in Manila is expected to be stable in Indonesia The Shangri-La Hotel, Jakarta was able to improve its market share in a difficult market and is positioned as the market leader in the city. The hotel s RevPAR improved by 16% largely due to occupancy gains. Overall revenues improved by 28% also aided by increased revenues from food & beverage operations. Local patronage of these facilities continues to remain strong. With a return to political stability in the country, there is cause for optimism on the hotel s ability to generate healthy profits given its market position and favourable operating cost structure. 20 Shangri-La Asia Limited Annual Report 1999

22 Management Discussion & Analysis Shangri-La s Mactan Island Resort, Cebu Fiji The hotels in Fiji had an impressive year both in terms of rates and occupancies. Combined revenues increased by 15% over 1998 and combined RevPAR increased by 16.1%. Demand for the destination continues to be very strong, particularly from Australia and Japan. New Acquisitions Singapore The Group acquired its interest in the Singapore hotels and the related properties effective 7 September For the four months (September through December 1999), combined revenues of the three hotels increased by 61.9% over 1998 and RevPAR increased by 28.7% with the completion of a major refurbishment of the 525-room Tower Block at the Shangri-La Hotel. With the economy recovering well, there is increased business and leisure activity in the country. These hotels are expected to continue registering improvements in their performance. Thailand The interest in the hotel in Bangkok was acquired on 24 September Revenues for the three months ended 31 December 1999 decreased by 2.9% compared to RevPAR during this period also decreased by 5.9%. Visitor arrivals into the country increased by 10.8% over The hotel increased its published rates effective October 1999 by 4.9%. Despite additional hotel room supply in its competitive set in 1999, the hotel has been able to maintain its market position. With the economic recovery gaining momentum in Thailand and improvements in the road network giving access to the airport, the hotel expects to improve its yields going forward. Shangri-La Asia Limited Annual Report

23 Management Discussion & Analysis Malaysia The interest in the five Malaysian hotels was acquired on 25 October Combined revenues at these hotels for the two months ended 31 December 1999 registered an increase of 11.7% over The city hotels in Kuala Lumpur and Penang are confronting an oversupply situation characterised by declining yields. In 1999, the domestic economy has shown improvement. Based on preliminary statistics, overseas visitor arrivals into peninsular Malaysia registered a year on year growth of 45% in The resorts in Penang and Sabah registered impressive RevPAR gains during 1999 ranging from 18% to 32%. Myanmar The hotel in Yangon became a subsidiary of the Company effective 25 October The city hotel has been experiencing weak demand which should improve once investment and tourism flows into the country pick-up. Meanwhile, the management is focussing its efforts to reduce operating costs to a minimum, given a stagnant revenue situation. The hotel successfully reduced its operating losses in 1999 to a marginal amount and expects to turn round the situation in the next few months. This hotel s results do not have a material impact on the Group s financial performance. Investment Properties The principal investment properties of the Group are located in the PRC and these investments are held through associated companies. Both Beijing and Shanghai in which most of these properties are situated have been characterised by oversupply and declining yields. The yields at our properties declined between 7% for commercial space in Shanghai and 35% for serviced apartments in Beijing. The achieved yields, though, are well ahead of the market average in these cities owing to the prime location of these properties and the mix and quality of the facilities. Shangri-La s Rasa Sentosa Resort, Singapore Children s Playground 22 Shangri-La Asia Limited Annual Report 1999

24 Management Discussion & Analysis Edsa Shangri-La, Manila Exterior The Beijing Kerry Centre and Shanghai Kerry Centre in the respective cities opened in weak markets, but have been able to register good occupancies. Currently 76.5% of the available space in Beijing Kerry Centre and 79.6% of the available space in Shanghai Kerry Centre has been leased. The China World Trade Center commissioned an additional 6,448 square metres of retail space towards the first quarter of While this reduced annual average occupancies to 37%, current occupancy is at 69.6% for the retail space. The serviced apartments in Dalian and Changchun continue to perform in line with market expectations in these cities. While those in Changchun are achieving respectable occupancies and yields, the apartments in Dalian continue to suffer from weak demand. Following the acquisition of the three publicly listed Shangri-La hotel companies in Singapore, Thailand and Malaysia, the Group s portfolio of investment properties has increased. However, all these are also part of mixed use developments which feature a hotel as an integral and important component. The serviced apartments and the long stay residences in Singapore are enjoying consistently high levels of occupancy (86 to 87%) and impressive yields. Shangri-La Asia Limited Annual Report

25 Management Discussion & Analysis The commercial space in the Tanglin Mall complex is nearly 100% occupied and has shown an overall improvement in yields by 4%. While the office space in this complex is performing poorly, the total area involved is small and its impact on the Singapore company s results is very marginal. The commercial space in the property in Bangkok enjoyed improved occupancy in 1999 but showed a marginal reduction in yields. The office space in the property also registered a decline in yield by 14% owing to the prevailing economic environment in the country, exacerbated by an oversupply of office space in the city. However, the contribution of these properties to the overall results of the hotel company in Bangkok is not very significant. The prevailing economic situation in Malaysia and the general oversupply of office, commercial and residential accommodation in Kuala Lumpur led to a decline in yields ranging from 17% to 20% in The situation is not expected to improve until the available supply begins to be absorbed by increased demand. With no accretions to supply expected and improved momentum in domestic economic recovery, some stability in yields is expected in the near term. Shangri-La Hotel, Bangkok Exterior 24 Shangri-La Asia Limited Annual Report 1999

26 Management Discussion & Analysis Island Shangri-La, Hong Kong Library SLIM International Limited Revenues of SLIM International Limited ( SLIM ), the hotel management arm of the Group, before consolidation adjustments, registered a 6.8% increase over However, the operating profits improved by 35.6% largely aided by savings in operating expenses. Effective 30 September 1999, the Group ceded its management contract with the Bali Dynasty Resort with mutual agreement of the hotel s owners. The annual income from this contract is not material in the overall context of SLIM s revenues. (b) Consolidated Profit Attributable to Shareholders The consolidated profit attributable to shareholders increased by US$15.4 million or 29.6% mainly due to improved operating performance in the second half of the year, profits from the newly acquired subsidiaries and release of investment properties revaluation reserve in the Group s principal associated company, CWTC, arising from a dilution of the Group s effective interest following the issue of new shares to the public by CWTC s subsidiary, CWTC Listco, in January 1999 and the subsequent listing of these new shares on the Shanghai Stock Exchange in March The increase in profits was weighted down by an increase in interest and finance costs by US$26.5 million (1998: US$36.6 million, 1999: US$63.1 million) as a result of the commencement of operations by hotel projects in 1999 which had been under implementation in Shangri-La Asia Limited Annual Report

27 Management Discussion & Analysis Consolidated Profit Attributable to Shareholders by Geographical Area Change US$ 000 % US$ 000 % % The People s Republic of China Hong Kong 25,128 22% 21,960 22% +14% Mainland China Hotels 18,730 17% 17,332 17% +8% Properties 20,259 18% 33,737 33% -40% Philippines 21,863 20% 21,570 21% +1% Indonesia (355) (2,121) -2% +83% Fiji 3,443 3% 2,963 3% +16% Singapore 9,523 8% N/A Malaysia 1,912 2% N/A Thailand 3,685 3% N/A Myanmar (961) -1% N/A SLIM 8,851 8% 6,057 6% +46% 112, % 101, % Less: Corporate expenses net (44,811) (49,593) +10% Total 67,267 51, % 3. LIQUIDITY AND FINANCIAL CONDITIONS The corporate reorganisation effected during the second half of the year resulted in the aggregation of debts outstanding in the three publicly listed companies, as part of the accounts presentation process. Though the debts in these entities aggregated US$239.2 million as at 31 December 1999, they have adequate marketable securities to cover this debt. As of that date the marketable securities, including shares of the Company had a value of US$240.3 million. During the year, the Group drew down US$270 million from its existing loan facilities and US$41.6 million from new loan facilities. These funds were principally applied to repay US$213 million of maturing debt and for the partial acquisition of shares in Shangri-La Hotel Public Company Limited, Thailand, as part of the corporate reorganisation, and for payment of construction costs on hotel projects that were completed. 26 Shangri-La Asia Limited Annual Report 1999

28 Management Discussion & Analysis The Group has been conscientiously working to secure Renminbi ( RMB ) denominated bank loans for its projects in the PRC and has met with some success. Thus far it has secured a RMB95.8 million (US$11.6 million) loan for the Pudong Shangri-La, Shanghai of which RMB50 million (US$6 million) was drawn down by the year end. More recently, it obtained a loan of RMB90 million (US$10.9 million) for the Shangri-La Hotel, Wuhan. This loan will be drawn down in the first half of All RMB loans are unsecured. In addition, RMB financing equivalent to US$125.3 million was secured for our associated company, Beijing Jia Ao Real Estate Development Co., Ltd. (Beijing Kerry Centre). With the construction programme of new hotels now complete, the Group is focussing its energies to optimize operating cash flows, given the tremendous operating leverage in the business on the back of a regional economic recovery. Major repayment obligations within the next twelve months comprise the retirement of the Convertible Bonds on 16 December 2000 (face value outstanding US$235 million) and the bank loan of US$237 million which is due on 15 March The Group believes that its internal resources, supplemented by external lines of credit, will enable it to meet these obligations on their due dates. The Group has satisfactorily complied with all covenants under its loan agreements. The analysis of loans outstanding as at 31 December 1999 is as follows: Maturities of Bank Loans Contracted as at 31 December 1999 Repayment Within In the In the 3rd (US$ 000) 1 year 2nd year to 5th year Total Unsecured Convertible bonds 229, ,789 Corporate bank loans 35, , , ,000 Project bank loans and overdraft 95,227 50,891 68, , , , ,322 1,201,229 Secured Project bank loans and overdraft 32,218 9,600 18,800 60, , , ,122 1,261,847 Cash and Marketable Securities (351,927) Net Debt 909,920 Undrawn but committed facilities (bank loans and overdraft) 122,066 15, ,066 Shangri-La Asia Limited Annual Report