Message to Shareholders

Dear Shareholders,

The pinnacle moment of FY2024 was the grand debut of our first greenfield luxury hotel development in Chongqing, China which officially opened its doors in July.

Nestled within the breathtaking Yuhu Singapore International Gardens in Chongqing’s enchanting Bishan District, this 200-room luxury gem has garnered quite a few prestigious accolades such as:

• Best Newly Opened Hotel – 2024 Voyage Awards Grand Prix
• Best New Opening Hotel of the Year – 2024 Ctrip Awards
• Most Anticipated New Opening Hotel of the Year & Best Relax Resort Hotel of the Year – 2024 China Hotel YOUNG Fashion Awards
• Best New Opening Hotel of the Year & Popular Wedding Service Hotel of the Year – 2024 Hotel Newrank (China Tourism Academy & China Tourism Hotel Association)

Financial Highlights

For FY2024, the Group reported a total comprehensive income of S$17.1 million, after accounting for post-tax other comprehensive income of S$32.6 million.

Revenue for the year declined by 20.1%, totaling S$125.2 million, primarily due to a larger revenue recognition from our completed residential project in China in 2023. However, the Group’s hospitality business in Malaysia and China saw a 25.2% revenue increase, reaching S$66.9 million.

As of 31 December 2024, the Group’s net asset value per share rose 5% to 17.96 Singapore cents. Net cash flow from operations totalled S$35.6 million, after working capital adjustments. Investing activities resulted in a net cash outflow of S$23.8 million due to the addition of property, plant and equipment, while financing activities led to a net outflow of S$8.0 million.

Hospitality Business

Driven by strong tourist arrivals in Malaysia, fuelled by the visa waiver programmes between China and Malaysia, our Hospitality Business saw a 25.2% year-on-year growth, reaching S$66.9 million.

Looking ahead, tourism in Malaysia is expected to remain robust, particularly with the extension of the visa waiver program. In China, domestic tourism continues to be strong during peak seasons. The Group is focusing on enhancing its service offerings and marketing strategies to capture domestic market growth.

Property Business

In 2024, Coral Bay @ Sutera won the Best Waterfront High-Rise Development award, while GSH Corporation Limited was named Best Luxury Developer at the PropertyGuru Asia Awards Malaysia. Coral Bay @ Sutera also received the Luxury Waterfront Condominium Excellence Award from Sabah Housing and Real Estate Developers Association.

The recognition of sales of residential projects tends to be lumpy, depending on the progress of construction. Following the completion of Yuhu Singapore International Gardens, the bulk of its sales was already recognised in FY2023. As a result, the Property Business segment saw a 41.9% revenue decline to S$56.7 million in FY2024.

Nevertheless, the Group’s property business in Malaysia experienced a 55.7% increase, rising to S$45.3 million in FY 2024. This growth was driven by strong demand from both domestic and foreign investors, further supported by the relaxed MM2H programme. In contrast, the real estate market in China continues to face signiffcant headwinds.

The Group continues to hold substantial, strategically-positioned land banks in Malaysia and China.

Appreciation

Moving ahead, we will continue to focus on recovery and prudent working capital management to support ongoing stability and growth. We will also explore new opportunities to diversify our business growth.

We extend our sincere thanks to the Board, Management, and staff for their dedication during these challenging times.

We also welcome Ms. Joycelyn Ong Yueh Ling, who joined the Board as an Independent Director in July 2024.

Wishing everyone a prosperous and successful year ahead!

Dr Sam Goi Seng Hui
Executive Chairman

Gilbert Ee Guan Hui
Chief Executive Officer