Good morning, ladies and gentlemen. Welcome to Far East Consortium International Limited's 2025 Annual Results Investor Presentation. Before we begin, let me introduce the management with us today. They are Ms. Wendy Chiu, Joint Managing Director and Executive Director, and Mr. Boswell Cheung, Chief Financial Officer and Company Secretary. Ms. Wendy Chiu is in an urgent engagement now and not able to join the presentation today. Now, may I invite Mr. Cheung to start the presentation? Mr. Cheung, please.
Thank you. Thanks for coming. This is the presentation for the result briefing for the financial year ended 31st March 2025. Yesterday night, we have announced our result and also posted it on the website. For details, actually, you can go up to our company website for the details as well. Today, this is a highlight extract. Yeah. The main theme, the key theme for this financial year, the last financial year, I would say, adjusted revenue increased by 3.8% to HKD 110 billion, and the adjusted cash profit was HKD 266 million. Mainly, I would say about 60-70% is actually coming from the property development. Adjusted revenue grew up by 5.3% to approximately HKD 7.2 billion versus last year, HKD 6.8 billion.
Main handover, meaning that the new development, and while during this financial year, we handed over Aspen in Canary Wharf and also Hilo & Holland in Singapore and Perth Hub in Australia. Also, we've got some inventory settlement. Mount Arcadia in Hong Kong, Daibo, and also Maynard Park in Hong Kong as well, Westside Place in Melbourne. In particular, we've got Tower 4, which is the joint venture. We own 50%. The attributable, that means the 50% of the revenue contribution from this 3B project, Queens Wharf Residences, Tower 4 in Brisbane as well. Total accumulated attributable pre-sale value and book contract sales approximately HKD 8.9 billion. Increasing price for the Queens Wharf Residences Tower 5 with more than 60% of the original buyers accepted. Hotel. Basically, this is HKD 2 billion revenue growth by 2.3% versus last year.
Kai Tak, this is where we are now. Dorset Kai Tak consists of 373 rooms. That is our Hong Kong flagship. Just opened last year, calendar year, end of September 2024. Dorset Melbourne, Ritz-Carlton Melbourne, they are all opened last year. Full year run period contributing to the financial year. Also, we've got the first franchise hotel contract Dorset by Agora Osaka Saki in Japan on the end of March 2025. Car park, gaming, the revenue, remain at a similar level. Revenue down by 2.6%. Later on, I will explain why we have this decrease in the revenue to HKD 713 million. Gaming up a little bit, 1.6% to about HKD 400 million, which is very stable. I would say the recurring income, hotel, car park, and gaming are actually not only this year, actually in the previous years are very stable, very recurring in nature.
Just now we mentioned about just the cash profit, HKD 266 million for the whole year. In fact, in the first half, we noted HKD 33 million. In fact, comparatively, in the second half, we increased by about, I mean, the second half noted HKD 233 million. Adjusted revenue, like I said, this is almost first half, second half, almost the same. Yeah. Meaning that we are managing the completion schedule quite effective this year. Total bank loan and note dropped by HKD 2.2 billion. The net adjusted net gearing ratio dropped a little bit, 1.2 points to 67.6%. Also, we.
Sorry, to note that, I mean, that's after impairment, right? Before impairment, our gearing ratio go down to 65.8%.
Yeah. Yeah. Later on, we have another slide talking about this in details as well. Page six, you can see, this is the, we have, for this year, for financial year 2025, we noted net loss attributable to shareholder about HKD 1.2 billion impacted by a few reasons. Of course, this year, previous one year or two years, finance costs maintained at a high level, honestly, HKD 1 billion. Impairment loss on some property for sale, main, HKD 311 million, mainly on the Urban Renewal Authority. I mean, mainly on one of the projects in Hong Kong. Share of the impairment losses recognized by JV and associates. This is, I think in the first half, we had mentioned about this as well. Again, one of the projects is our JV project in Hong Kong as well.
Continuous progress in the debt reduction with some non-core asset or business disposals. Most of them are actually, you can refer to our announcement, which we have announced in particular in April last year and September. We have got this disposal announcement. Adjusted net gearing ratio increased to 67.6% versus last year, end of March 2024, 61%. Again, the before impairment is talking about 65%. I would say this is healthily improved. Total bank loan and notes dropped HKD 2.4 billion. During the financial year, we have signed a few contracts and also completed some of them for disposal of the non-core asset and business. Completed the disposal in car park, which is in Manchester, talking about GBP 17 million. Entered into a contract to sell one of our hotel asset and property in North London, which is talking about GBP 47 million.
Entered another contract to sell our BC State. If you remember, BC Invest is our mortgage platform taking care of our customer in Australia and the U.K. as well. We entered into a contract to sell it in February, which is talking about we can cash it out more than HKD 600 million. Entered into another contract, but this is post-year-end, to sell our Hong Kong mortgage book. We cashed it out for HKD 344 million. Also, this is one of the highlights as well, restructuring of the reinvestment in our QWB projects. Entered into the head of agreement to increase the group interest in this project. Swapping minority stake in the Gold Coast asset for the larger stake in the QWB project and certain hotel and other car park asset in Brisbane as well. This page, I'm not going to highlight.
I'm not going to talk about line by line, but you can see, this is extract of the P&L and also the balance sheet. One of the points I want to highlight is that, the adjusted cash flow, I mean, adjusted cash profit, HKD 266 million versus last year. We dropped a little bit because of a few reasons. Some impairment, some margin, and so on. Later on, we can discuss this in more detail. Also, we've got some one-off item impairment. Previous page, we talked about that impairment loss on the property for sales on the ECL model, which is coming from a Singapore JV, and also share of the impairment loss recognized by associate and also a JV, which is altogether talking about HKD 900 million or HKD 1 billion already. Total bank loans and notes, you can see this is a drop a little bit.
Net balance, I mean, net debt dropped about HKD 2 billion already. Hopefully, we can improve it in the coming financial year as we have some other non-core assets business to sell and recognized, and also the core business, in particular on the property development. Accumulated pre-sale and unbooked contract sales talking about HKD 8.9 billion. On this page, you can see the overall gross margin maintained at a very stable margin, talking about increased to 31.8% from last year, 31%. In particular in the car park business, which shows a great improvement in the adjusted gross profit margin due to the termination of the underperforming some car park contracts. Balance sheet, I think this is one of the pages a lot of investors like to talk about.
You can see, this is the result of what we have done for some monetization of the non-core asset and business. Net debt reduced by HKD 1.3 billion. On that hand, the adjusted total equity impacted by surflow impairment losses I just mentioned in the previous pages. Adjusted net gearing ratio dropped 67.6%. The net gearing ratio before impairment, which Wendy just talked about, 65.8%. It shows that from last year, versus last year, end of March 2024, which is talking about 68.1%. Obviously, it dropped a little bit healthily as well. In the coming days, in particular in this financial year, we expect it to improve further due to some completion of the non-core and core business. Within one year, this is a current liability divided into a few categories. I think it is a healthy improvement on some short-term bank loans. Dropped about HKD 1.1 billion.
In particular, honestly, in particular, some project development loans, which is covered by the sales process. Once we complete the project, actually, we collect the sales process. We directly pay down to the loan settlement. Yeah. Some strategic initiative which we have done to reduce the debt level and improve the gearing during the year. In fact, we are keeping ongoing, accelerating the completion of some property development projects. This year, I mean, financial year 2025, we have accelerated Perth Hub and also the Queens Wharf Tower 4, in particular Queens Wharf Tower 4, so that we can book and collect the money as well. Actively monetizing inventory. I think, in particular in Hong Kong, I think if you know FEC well, I think during this year, we noted the revenue from Hong Kong sales of property, which is talking about almost HKD 1 billion. It is a big amount.
Yeah, because during the year, we got quite a few projects completed and sell. So Mount Arcadia in Hong Kong and also the Maynard Park in Hong Kong. Other than that, we also noted the Westside Place Stage 2, in particular in Melbourne for good sales of the property development completed stock. That is the core business. Other than that, also, we have digested some non-core asset and business. This is I just highlighted in the previous page. On the other hand, on the recurring business perspective, we have optimizing the hotel portfolio for sustainable growth. Ritz-Carlton Melbourne, Dorset Melbourne, which was opened last, two years ago, March and April 2023. This year, financial year 2025, we've got a full year stabilization phase.
In fact, it contributed a lot on the hotel portfolio, in particular this year, because the remember period, I would say, finished. Stability phase ongoing. In fact, the contribution from Australia hotel portfolio grew a lot. Dorset Kai Tak, this is where we are. The flagship opened last year. Yeah. Looking forward, we still have another two hotels to open in the coming 12 months. They are all in London. I mean, Dorset Canary Wharf, London, and also down by Dorset North, London. We've got available existing liquidity of approximately HKD 7.3 billion cash and enjoyment facility, which is obviously exceeding the CapEx of HKD 1.4 billion. Like I said, the total cumulative pre-sale and unbooked contract sales talking about HKD 8.9 billion, which provides very good visibility on the income, I mean, on the cash inflow in the coming 12 months, 18 months.
Yeah. An encumbered hotel and also completed stock can be used for increasing the liquidity. The property development, I would like to pass to Wendy to talk about this.
Thank you, Boswell. Good morning, everyone. I'll now take you through our property development updates. In this challenging environment, we continue to accelerate project completion to enable early revenue recognition, optimize cash flow, strategically reduce debt levels, and finance costs. We have a robust development pipeline of around HKD 61 billion to support sustainable growth in the next six to eight years. Hands on my heart, I really want to say thank you to all my colleagues for their dedication and teamwork to achieve this year's result. Actually, just a few weeks ago, our Head of Australia, Craig, called me, "Wendy, I'm going to be on a holiday." Just to let you know, I know you'll call me anyway. There you go. That is our work-life balance. At the end, we're all one happy family. I just want to say thank you for all the dedication.
Like I said, despite the ongoing challenging environment in the property market, in this financial year, our adjusted property development revenue has recorded HKD 7.2 billion, which is a 5.3% increase compared to year on year. Another note I'd like to look at is really, I mean, looking at before depreciation, we can maintain our profit margin at 26%, higher than last year. This year, of course, again, because of depreciation and impairment, it's down to 21%. Our main contributors, like what both of us said, Aspen in London, Hilo & Holland in Singapore, Perth Hub, Westside Place Melbourne, Mount Arcadia, and Maynard Park in Hong Kong, our joint venture project in Queens Wharf Residences Tower 4. Projects are expected to complete in FY 2026 with an expected attributable GDV of approximately HKD 12 billion, of which approximately HKD 5.1 billion was pre-sold.
As of 31st of March 2025, we have secured approximately HKD 8.9 billion in pre-sales and contracted sales as our future revenue stream. Aspen at Canary Wharf, Consort Place, is one of the key property development revenue contributions this year. It is the third tallest residential building in the U.K. and Europe. It has a magnificent view and has a GDV of HKD 4.3 billion. It has commenced completion a year early in phases and started the handover process in May 2024. Approximately HKD 2.1 billion have been settled in FY 2025. Completed and settled over 50%. The remaining GDV is approximately HKD 2.2 billion. This is an example of how we've accelerated revenue recognition a year earlier and allowing us to recover cash flow earlier to repay the construction loan, reduce finance costs, and help lowering the gearing ratio.
Another revenue contribution, Hilo & Holland in Singapore, was completed and initiated the handover process in June 2024 with a total attributable GDV of HKD 3 billion. We own 80% stake in this project. As of 31st of March 2025, all units have been settled. We have now fully sold all our residential projects in Singapore. Unfortunately, as many of you may know, with the 60% stamp duty and the vacant tax, unless we find very, very attractive opportunities, we will be focusing on other areas. Perth Hub is completed and commenced handover process in December 2024. It is well located adjacent to the arena. It is a mixed-use development. It consists of 314 residential apartments with a total expected GDV of approximately HKD 759 million. This is actually a showcase of our first project completed by our FEC construction team.
We have completed under budget and not only on time, but a quarter of a year early. This is a great testimony for our FEC construction team's capability and also another example of our early revenue recognition. Approximately HKD 713 million have been settled in FY 2025. All remaining units have been subsequently sold out post-FY 2025. Next one is Brisbane. In Brisbane, Australia, Queens Wharf Residences Tower 4 is actually on top of our integrated resort. We hold a 50% stake in the residential component. It comprises 667 apartments with an attributable GDV of HKD 1.4 billion. The development has been completed and handover process commenced in March 2025. Notably, Queens Wharf Residences actually set a record in Australia with over 321 apartments of GDV value HKD 1.3 billion settled in one day and the construction loan fully settled within a week.
This is another success story we have in Australia. The remaining attributable GDV for sales was approximately HKD 432 million, of which 92% were secured as contracted sales and are expected to be settled in FY 2026. In response to the rising costs and strong demand in Brisbane, Australia, we have revised our agreements with a price increment of Queens Wharf Residences Tower 5 to enhance our project value. Actually, before we did that, we have full confidence. We have done a lot of market research, and we know that with the ongoing demand and, of course, the shortage of supply, this would be a good, very good value. We have, at the end, increased 12.5% on our selling price, and over 60% of our original buyers have accepted our revised pricing.
We intend, actually, in fact, I think we've increased 15% now and further increased the selling price for the remaining apartments. In addition, our project department has secured planning approval for increasing four levels with 28 additional units. Along with the increase of the pricing, we have increased the total GDV from HKD 4.6 billion to HKD 5.3 billion. This adjustment strengthened the project's long-term value, in particular for the upcoming launch for our Queens Wharf Tower 6, while ensuring its alignment with market condition, allowing us to maintain a healthy margin of over 20%. In fact, up to now, it's around 25-26% profit margin. We are very confident by completion of this project in four to five years, we will fully pre-sell. Tower 5 and 6 is built by FEC Construction.
Up to today, we have saved over HKD 120 million of construction costs. Westside Place Melbourne, I'm sure everyone's very familiar with this project. We continue with our existing strategy by actively selling our completed inventory. Westside Place in Melbourne, Australia, is another key revenue contributor. Over the past two years, we have successfully relaunched and settled over 1,000 apartments in this development. As of 31st March 2025, the remaining GDV available for sale was HKD 1.3 billion. We are consistently settling over 40 apartments a month and expected to sell out this year in a year. I also mentioned about our Hong Kong projects. This is another example of our execution and actively selling our completed inventory to recycle cash and lower gearing ratio. It's important to note, I mean, previously, our profit margin in the previous years in Hong Kong was fairly high.
We do have quite a big buffer to maintain a healthy margin even if we initiate sales incentives. Despite the challenging market condition in Hong Kong, our sales and marketing team has pushed through and is able to achieve and recognize over HKD 950 million for two Hong Kong projects, namely Mount Arcadia and Maynard Park. We will continue our execution to monetize our existing inventory in the coming years. Upcoming, we have several projects which are reaching to completion. In Manchester, we have successfully delivered two projects, New Cross Central and Meadowside, and we have fully sold all inventories this year. Our average selling price has actually gone from below GBP 400 per sq ft to our latest launch at GBP 540 per sq ft with a 35% increase.
We are continued bullish with the Manchester market with the increased rental yield plus our track record of our increase on our average selling price. We are hopeful the remaining 17,000 units will be a cash cow for FEC. Given our track record, government has continuously supported our schemes and infrastructure and has just announced a GBP 95 million grant package for a new tram stop within our development. We have also secured another GBP 6.9 million to develop the park opposite Victoria Riverside, which will be very beneficial to the community. Victoria Riverside is situated within the Red Bank neighborhood in Victoria North development. Our first phases are expected to be completed in the next couple of days with a total GDV of approximately HKD 1 billion, approximately 91% pre-sold.
Upon completion of the first phase, we expect to fully repay the construction loan for the whole development, while the second phase, which is expected to be completed in late 2025, will be debt-free with a GDV of HKD 1 billion and already approximately 98% pre-sold. In Hong Kong, the Pavilion Forest, the site in front of our development, will be turned into a depot for the smart and green mass transit system in Kai Tak. It is expected that the GNTS vertical alignment will be no more than 20 meters. Although the government will explore granting property development rights at the proposed depot site, it is expected that our development above the 10th floor can enjoy the beautiful Victoria Harbor sea view for a very, very long period of time.
Our development consists of 1,300 apartments with a total GDV of approximately HKD 12 billion, in which we own a 50% stake. To date, we have pre-sold approximately 45% of our units. I think we are definitely one of the fastest-selling developments in Kai Tak as of 31st March 2025, with a GDV of HKD 4 billion, of which around 84% is under the cash payment scheme. The first launch selling price is averaged of around over HKD 18,000 per sq ft, as we have only launched the lower levels. We are confident that our pricing will increase as we go up each level with a panoramic view to increase our overall average selling price, as shown in our new launch with our recent transaction reaching up to HKD 25,000 per sq ft.
The development is expected to be completed before August 31, 2025, which is in the next two months. In FY 2025, we have also launched a few projects in Manchester and Melbourne. In Manchester, Red Bank Riverside consists of seven buildings adjacent to Victoria Riverside. We launched one of the two towers, Falcon, in late March 2024 with 189 units and a GDV of HKD 682 million. We have received overwhelming positive responses with over 84% pre-sold or reserved within three months. The remaining units will be launched upon Falcon completion with a higher price. With the success of the launch, we have held the remaining units and targets to relaunch with a higher price upon Falcon's completion.
Instead, in view of this hot market, we have quickly scrambled around, come up, and launched another new tower, Red Bank, the Kingfisher, with 322 units and a GDV of HKD 1.2 billion. We have already pre-sold around 50% of units as of March 31, 2025. As mentioned previously, we have increased our average selling price to over GBP 500 per sq ft within the Manchester recent launch. For Australia in Melbourne, Australia, again, given the high demand on residential and the shortages, we have decided to launch in February 2025 a super high-end luxurious residential tower in Melbourne. This is the highest per sq m project in the whole of Melbourne at roughly AUD 17,600 per sq m. This is a mixed-use development project at 640 Burke Street, located in the heart of the CBD, adjacent to Westside Place and Upper Westside development.
It will consist of 68 levels with over 600 apartment units. The total expected GDV for this project is around HKD 3.8 billion. As of today, we have already reserved and pre-sold over 40% of units. The development is expected to be completed in FY 2029. With this weight, we are confident that we will be fully sold out prior to completion. All in all, on an overall basis, summing up, we at FEC are fully confident that our strategies and property plans and project plans will continue to strive and drive sustainable growth and support stability for our company in the years to come. Up till now, we have around HKD 61 billion in the development pipeline. As we continue to drive and achieve more and more early project completion, it is expected that there will be continued success in our liability management and debt reduction.
Thank you all for your time and attention. We look forward to sharing more successes with all of our investors in the near future. I'll pass it back to Boss Wong.
Yeah. Let me go through the hotel division. On page 27, our hotel division actually consists of Dorset, which is the big portfolio, and also our Palatino. Palatino holding about five hotels, and the whole portfolio of what FEC holds actually is 43 hotels, in which you can see the performance of our major contributor, which is Hong Kong. I think Hong Kong, Malaysia, mainland China, and also Singapore, we noted a drop in terms of the RevPAR. On the other hand, we also have some new hotels, for example, the Dorset Kai Tak, this one.
I'm sure, and I hope that while the REMA period has finished, and we are actually in a stability phase already, and hopefully on the full year basis of coming financial year 2026, are actually providing and help a lot on the performance in Hong Kong as well. I was told this morning the occupancy tonight is 100% because of, I think it's because of a doggy loaner. Okay. Yeah. And this field day coming up is also a very, very high, more than 99-98% occupancy as well. I think this hotel definitely is our flagship, and hopefully reflecting the numbers, yeah, and hopefully we can present in the next year Hotel Hong Kong actually another big new page, all right? But on the other hand, we noticed Malaysia and also Australia noted a very good improvement, in particular in Australia.
Like I said in the previous page, Dorset Melbourne, Ritz-Carlton Melbourne are actually, again, well, in the stabilization phases already. The businesses are coming stabilized. Year on year, increase in terms of the RevPAR increased by almost 20%. That is a great improvement, and hopefully we can maintain, yeah. Overall, I think the FEC Hotel Division noted a HKD 2 billion revenue, which has increased about HKD 2.3 billion versus 2.3%, which is very stable. In the coming, on the next page, you can see this is the Dorset Kai Tak, consists of 373 rooms, very convenient, next to the stadium. I think in particular, the guests on the floor know about it because I'm sure you just now, yeah, you have seen the stadium next to it.
The impact from the performance concert and all that actually helping a lot on the contribution on the result of this hotel as well. Also, we have the, this is the first franchise hotel in Japan. We have signed the contract at the end of March this year, the Dorset by Agora Osaka Saki, yeah. The room number, talking about 331 rooms. Again, this once again demonstrates the light asset business model. We are glad that we, I mean, we've got the dolphin and all that. They're very cute. Extended picture. Again, also in the first half of this financial year, 2025, we have entered into a contract and acquired a 10% stake in the hotel in Singapore, which is talking about 313 rooms. We also have a plan, a very intention to increase by 100 rooms as well.
Also, we've got a contract in Fuji, Dorset, Fuji, talking about 216 rooms. We have signed the hotel management contract, and yeah, target opened in a few, three, three years later on. In the coming year, financial year 2026, we've got two hotels to open, the Kennedy Resort and also the North London, which we have talked about as previous page. As of the end of March 2025, we've got more than 9,000 rooms in our portfolio of two years down the road. We will increase 1,300 rooms by end of March 2027. Mainly, it's actually coming from Australia and also U.K. For car park, this is one of the key recurring income, which is very stable as well. The revenue talking about around HKD 700 million decreased by 2.6%.
What I want to highlight is that we are going to phase out some of the underperforming car park space. You can see as of the end of March 2024, we have managed the third-party management contract. It is talking about 115,000 car park space. One year after, at the end of March 2025, we are down by 10,000 contracts. In fact, the revenue dropped a little bit. Honestly, we cut off some underperforming contracts. On the other hand, we increased some contracts, which is meaningful to us. Net network, we looked at just the gross profit margin increased to 28%. That is just, you know, still in the process, yeah. Hopefully in the coming year 2026, this stabilizes this phasing out the underperformance contract process as well.
On the other hand, some non-core, some non-core asset, the car park in Manchester, like I said previously, talking about the GBP 17 million, which we have sold and completed the contract, I mean, completed the disposal already. We continue to divest some mature car park to unlock the capital value, and hopefully we can reduce that level as well. Gaming part, Palatino. Last year, to remember, 26th of March, last year we spin it off, and it's in Hong Kong. Now we hold the company, I mean, the Palatino talking about 71%. In fact, the revenue is very stable, HKD 400 plus a little bit, yeah, million. Yeah, this is the reason why we put it in from a recurring business perspective. On the other hand, on page 36, we have the investment in the QWB projects. We opened this hotel by phases.
The first phase that we opened was last year, end of August 2024. Start rent, some gaming facility opened with receiving positive responses. Remaining FMB, retail, dining spaces, and some other two hotels. One of them, one of the two hotels is Dorset. We hopefully opening in the next phase. On this year, on the 7th of March this year, we have entered into a head of agreement in respect of the strategic assets. I think for details, I think we can refer to the announcement that we have published on that day. There will be more details. In fact, let's talk about this JV. This JV consists of the gaming license. That is very important. The JV consists of this gaming license. Also consists of the three hotels. One of the hotels has opened last year as well. Gaming floor, mass market is the major focus. Also we've got some entertainment facility there, FMB and all that, right?
Yeah, I think also, sorry, Boss Wong, one thing important to note that I think in the global world, it is very rare to see a 99-year gaming license. That is something we see very valuable. Of course, with the 25-year monopoly, right, within the Brisbane radius. This project actually spans 10% of the CBD. We see a huge potential in this.
Yeah. Yep. Yep. Another point to add, the beauty thing is other than this, I would say the entertainment investment, along with this, we've got a tower four, five, and six, which is talking about the residential. We can stratify it and sell it. It helps on the investment as a whole, yeah, from a return perspective.
Yeah. We have a million for traffic a month, and we expect once we complete all the residential and hold over 1,000 hotels, that will be a lot more.
Yep. Yep. Frostbacks. Prudent financial management. Gearing expected to improve. In fact, this year compared, I mean, versus last year financial year, we improved a little bit. Of course, on the other hand, you can see we have got some impairment loss. Hopefully in the coming financial year 2026, we can manage better on the potential impairment, which will be having some impact on the gearing. On the other hand, like I said, a lot of projects, core business, non-core business, asset we have sold. Hopefully we can still maintain, you know, we are confident to maintain the further down the net gearing ratio.
Accelerating some completion of the property development, disposal of non-core asset business. Perpetual bond will be redeemed at a good time. Yeah. I think, yeah, as the capital structure and gearing level improves. Visible cash flow from both property development projects and recurring income business. That's all repeat honestly. Property development, we've got HKD 8.9 billion presale. Attributable about GDV HKD 12 billion in aggregate to be completed in this financial year 2026, which, yeah, is a good, I think we can maintain the, you know, in the previous two years, including the recurring business, we are talking about more than HKD 10 billion revenue or adjusted revenue noted. Hopefully we can maintain this trend. Hotel recurring cash flow expected to grow, in particular with some new hotels establishing, two new hotels coming up. Car park, like I said, the outperform, I mean, the underperforming contract has been out.
Hopefully we can maintain a good profit margin as well. Gaming, again, very stable. Honestly, the contribution from the Palatino is not our major, to be frank. Anyway, this is part of our recurring business. The last page, that is the awards that we have achieved. Thanks for the management, our Chairman, David Chio, and also Mr. David Chio, and also Wendy Chiu. We have got some awards during the year. I am not going through one by one. I think this is part of our achievement during last year. Thank you.
Thank you for the presentation. We will take questions now. Please raise your hand if you have any questions, and we will hand over the microphone to you. Much appreciate to have your name and the company you represent too. For honored investors, you may input your questions through the Q&A box. We will read it out one by one.
I have a question about the group strategy. Over the past three years, there has been a lot of focus on deleverage, inventory monetization, asset disposal. Hopefully we start to see some light at the end of the tunnel. When do you think there will be an opportune time for you to probably go offensive instead of defensive, like in terms of acquisition of land banks or looking at new projects, especially in the Australian market, given the shortage of supply?
Thank you. Yeah, given the environment, we are getting a bit more conservative. Having said that, we of course also have launched a few new projects. We are in fact actually extensively looking at a lot of properties in the U.K., especially in London.
We are seeing a lot of joint venture properties where we come in as an equity to do construction where we are good at, value add instead. Normally you will not see it in this kind of, you know, financial downturn. We are definitely extensively looking at this, and there are a few that we are actually in conversation with.
I think I can add a little bit as well. As we may see our property pipeline, which is talking about HKD 61 billion. I think in the past two years we have noted from the adjusted revenue, talking about HKD 10 billion, in which you can see HKD 6 billion or HKD 7 billion coming from the property side, I mean, the sales of property.
Honestly, from our pipeline, which is talking about HKD 61 billion, which, I mean, yeah, big enough for us to develop for another coming six or seven years or eight years even, even though we have not got any additional land acquisition or replenishment. That is fair enough. Yeah. We are not in a rush. Our land bank is okay. Yeah. It is big enough for us for another at least three, four years at least. And this presale value, that gives you a visibility as well. I think it is not in a hurry. Yeah.
Hi. This is Manoj from Sitara. I saw that there is no dividend announced for this second half. When will the dividend be restored? And t he question is really, are you going to pay cash coupons on your perpetuals going forward, given that you switched out the dividend, you have the option not to pay the coupons? Thank you.
Given the markets and looking at the, you know, the impairments that we are getting, especially for Hong Kong, there is quite a lot of uncertainty. Although we believe that hopefully it has bottomed up and looking at our Kai Tak sales, I think it will go up. I think for this time around, we just want to be a bit more conservative to lower our gearing ratio. Of course, like what we said, you know, we have our perp bond. We are yet to discuss on what we do to do with perp bond, yes.
I am not sure this is a price sensitive question. I may answer you privately, right? What I mean is we know the feedback from the bondholder. We know the feedback from the market as well. Honestly, we have yet to discuss internally, but I think by the time we will know and we may have some action, hopefully, and we actually know that the market price of the bond from our perspective is very attractive. Yeah, we have quite a few options in front of us.
Any questions from the floor, please? There may be some online questions. Mr. Chen, please.
刚刚你那个多。我有点重复。[Foreign language] Okay, for the HKD 8.9 billion presale, how much is to be recognized in financial year 2026, and how much will be recognized in financial year 2027? I think you can refer to page 14, which demonstrates more than these two years, frankly.
In short, the project with GDV about HKD 12 billion will be completed this financial year 2026, in which at the end of March, about 40 plus something, yeah, has been resolved. Meaning that, that will be completing this financial year at least. Up to date, I think it's around 50% already. From now on, at least HKD 6 billion, right? Hopefully, and honestly, we're confident some of the projects are actually on the good sales. To be frank, I think Manchester, all cities in Australia, Singapore, they are very good markets. They're a very hot market for sales from a sales perspective. Yeah. That is the country or the cities we have operation, and we have some projects to launch as well. Hopefully we can do better.
Yeah, at least HKD 5-6 billion has been booked, I mean, has been resolved. Yeah, for this financial year 2026. For the financial year 2027-2028, you can refer to page 14.
Any questions from the floor?
I guess I want to know what do you guys think about just recently one of your troubled peers missed their perpetual bond coupon. Do you guys have a stand on the IQ bond of the perpetual bonds that you guys currently have?
I think for perp bond question, we will need to hold. We have not had an internal discussion yet. We have a couple of thinkings, but we need to work internally with our board as well. Sorry.
Now it is end of March, I mean, end of June. I think it is a few months. Yeah. I will come to you.
A few questions on the online, sorry, actually similar. I will skip, just let the guests on the online know about it. Yeah. I mean, I'm not going to answer line by line, I mean, question by question, but actually just how we have mentioned a few questions I actually cover already.
Your hotel development strategy, right? Like now you have a single brand, and what's the biggest challenge when you go asset light to expand by this kind of franchising model? There is a lot of competition from those global hotel groups. What's your geographical focus, like beyond Asia? A lot of people are looking at Middle East or Europe, given the fragmented market, right? A lot of Dorset hotels are mid-scale, sorry, offer mid-scale or upscale. Are you guys considering a kind of multi-brand strategy to branch out into probably mid-scale or select service sectors? Just out of curiosity about your future hotel development strategy.
This is a question to my sister, actually. Just one side, I mean, we have a Dorset brand. I think that's our main brand. Now looking at the market trend lately, you know, she of course, she's very close to the market. We believe larger rooms with service facilities would be, you know, the next upcoming trend. I think she's adjusting according to the trend, right? I mean, both of you want to add?
Yeah. In fact, we're more than not a single brand. Those that talking about four-star main focus, like this Dorset Kai Tak, I'm sure it's actually at a four-star premium if you say this is four-star. Also, we have three-star, Silca, right? And the Dow is our service apartment hotel, service parts hotel. So we're actually expanding this as well, in particular for Dow. Also, we have some light asset business model, which is talking about the contract, I mean, the hotel contract like Fuji just signed. On the other hand, there will be another two or three years coming up for the hotel contract contribution. Yeah.
I think just looking around four-star hotel globally, it's very not consistent, to be honest. I think what Thorson offers is consistency. I think up to market, trendy, and of course, you know, there are just the service and everything. Of course, the location. I mean, looking at Australia and all that, right? I think it's going to be very hard for a four-star to come into like a Brisbane integrated resort, right?
Of course, also next to a Ritz-Carlton Melbourne. I think it's really, if you go to a four-star in Australia, I mean, good luck to you because I've been to quite a few. I think what Australia or what, I mean, sorry, Dorset offers is the consistency of the brand.
Yeah. And I think we are quite smart, yeah, in timing the hotel cycle. As you can see in the past, we opened the Dao in London. We opened the Ritz-Carlton Melbourne and Dorset Melbourne two weeks ago. You can see, well, where the business, I mean, the pandemic impact has just gone. Then we opened the hotel. Of course, we need to run a period, which is normal, right? In Hong Kong, you can see this hotel as well. We opened last year.
And Obviously, to refresh your memory, last year when we opened in Hong Kong in terms of the F&B, the mainland Chinese travelers, overseas travelers, there is still a big difference from what we can see now, right? You go out nighttime for dinner, you will know, right? In particular, for the stadium opened 1st of March this year, I think we timed the cycle good. Yeah, good enough. Hopefully, the contribution from, in particular, some of the hotels are helping the contribution as a whole.
Thank you. If there are no questions from the floor, maybe from the online platform. Any questions on my side?
I think we have answered the questions. Okay. Any more questions from the floor, please? Just to get a color on the SS what we have started, yeah. I think you guys have already assumed all the JV partners have already assumed all the equity in the project as of date, right?
No, we've just signed the heads of agreement. We are yet to go into long-form doc. There are some different interpretations between the Star and Charles Apple and FEC. Of course, we are collective on how we see the details of the heads of agreement. At the moment, no, we haven't done the swap yet. What are we expecting from the swap? The commercial, honestly, the commercial terms have to add up, especially given this environment. I guess the detail is actually in the PowerPoint, but you know, basically they want to carve out Brisbane and Gold Coast where we are actually swapping. We're taking the Treasury Brisbane. They are taking the one-third of the hotel and us.
We are taking the reservable body residentials. Yeah. We are paying around HKD 50 million upfront cash to them as well. Yes. It has not been finalized and there are some risks. We are taking our time. If it does not work, you know, we will go back to our original. It is still good for us.
Yeah. We still only need 25%. Yeah.
Thank you. Any more questions? If no more questions from the floor, this is the end of the Q&A session. This is the end of the investor presentation. Thanks again for joining.
Thank you.
Thank you.