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Emperor Entertainment Hotel Reports Annual Results11 July 2005HONG KONG – (PRESS RELEASE) -- Emperor Entertainment Hotel Limited ('the Group') (HKSE Code:0296; OTC: EPCHY) today announced its annual results for the year ended 31 March 2005. During the year under review, the Group recorded a turnover of approximately HK$18.2 million and a net profit of approximately HK$17.6 million. Earnings per share reached 4.8 HK cents. During the year, the Group's turnover was mainly derived from the leasing of casino area of its cruise ship, Golden Princess. Despite its short period of operation for only 1.5 months in 2005, it had contributed net profit of HK$6.1 million and over turnover of $18.2 million to the Group. Ms. Vanessa Fan, Executive Director of the Group, said, '2005 marked an important milestone for the Group's development as it had been repositioned as a gaming and entertainment platform. This strategic move was reflected by the change of our Company's name from Emperor (China Concept) Investments Limited to Emperor Entertainment Hotel Limited. We plan to launch our hotel project in Macau by the end of the year which includes gaming and retail operations and we are developing a prime shopping arcade in Shanghai. We are confident that these will become our major growth drivers in future.' Although the Board does not recommend the payment of dividends this year, the Group is highly positive about its prospects. The Group targets to maintain in future a dividend policy with a yearly dividend payout ratio of not less than 50%. Casino Cruise Liner -- Golden Princess In February 2005, the Group acquired the vessel 'Golden Princess' at a consideration of approximately HK$132.6 million, which was satisfied by allotment of issue of the Group's 104,409,000 new shares at a price of HK$1.27 per share. Subsequent to the acquisition, Golden Princess contributed immediately to the Group a turnover of HK$18.2 million and a net profit of HK$6.1 million through the leasing of its casino area to a casino operator at a monthly rent of HK$9 million together with 30% of the net profit from the casino operations. Macau Hotel Project In January 2005, the Group acquired indirectly 45% interest in a development project of a hotel with casino operations in Macau. The total investment cost of the project is expected to be HK$1.5 billion and the Group is estimated to contribute about HK$450 million. Located in Macau's city centre, the hotel is currently under renovation. There will be about 300 rooms, retail and gaming facilities, including gaming tables, VIP rooms and slot machines. Its gaming operations are scheduled to commence business as early as September 2005 while the hotel will have its grand opening in December 2005. Ms. Vanessa Fan said, 'Scheduling to open by the end of this year, our hotel will become one of the early players in Macau's gaming market as it is two years ahead of other major gaming projects under development in the area. With our knowledge in running VIP halls, the positioning of our project to target medium to high rollers can surely leverage such strength of the Group. More importantly, backed by Emperor Group's broad networks in China as well as its strong artiste base and event management experience, our Group can certainly utilise the synergies in attracting high customer flows for its gaming business.' Property Sales and Development -- The 'Emperor Star City' at Yu Yuan, Shanghai In May 2004, the Group entered into a cooperative joint venture agreement with Shenzhen Lianhe Jinhoa Investment Development Co. Ltd. to jointly develop a property in Yu Yuan, Shanghai. The Group planned to develop Star City into a commercial complex featuring a 6-storey shopping arcade with a subway entrance channelled into the complex basement. With a gross area of 114,000 sq metre, the project will offer all kinds of retail and entertainment facilities. The project had a groundbreaking ceremony in June 2005 and is scheduled to complete in early 2007. The Group contributed the land and its JV partner contributed construction costs in return for entitlement to 50% of the floor area of the completed development. The Group also obtained a put option which enables the Group to realise the property at a profit. Ms. Vanessa Fan concluded, 'With our Group's unique market niches and strengths, we are well poised for grasping the lucrative business opportunities ahead in Macau's gaming industry. Besides, the booming commercial property market in China will also benefit our property project in Shanghai. We are also looking into potential business opportunities elsewhere with a view to maximise returns for our shareholders.' |