Page 5 - ar2012

(d) Lower withholding taxes recognised on interest receivable from the New Zealand subsidiary and presence
of tax credit from both Thailand and Malaysia subsidiaries in 2012 offset by deferred tax expenses
recognised from the New Zealand subsidiary and one of the Singapore subsidiaries.
(e) Absence of expenses relating to the acquisition of Hotel Royal Bangkok@Chinatown (formerly known as
White Orchid Hotel) of S$0.450 million, which was present in 2011.
Earnings per share increased to 16.36 cents in 2012 from 7.01 cents in 2011.
Increase in Singapore’s earnings
The increase in Singapore’s earnings was mainly due to the higher turnover achieved by the hotel segment and
better control of operating expenses, additional contribution from Royal Residences and presence of fair value gain
on investments from improved stock market conditions as opposed to fair value loss on investments in 2011.
Increase in Malaysia’s earnings
The increase in Malaysia’s earnings was mainly due to higher rental from its investment properties and the presence
of tax credit recognised in fourth quarter of 2012 as opposed to income tax expenses in 2011.
Increase in New Zealand’s earnings
The increase in New Zealand’s earnings was mainly due to higher rental income from its investment properties and
the reversal of past years’ impairment loss of S$2.891 million on investment properties as opposed to impairment
loss of S$2.460 million in 2011.
Decrease in Thailand’s earnings
The decrease in Thailand’s earnings was mainly due to full year’s finance costs in 2012 as opposed to three months
period in 2011 and on-going fixed administrative costs which continued with the closure of the hotel for major
renovations and upgrading.
Group’s Financial Expenses
Increase in Group’s financial expenses
During the year, the Group’s interest expenses increased to S$3.211 million from S$2.529 million in 2011 mainly due
to recognition of a full year’s interest expense charge relating to the existing bank loan taken up by the Thailand
subsidiary as opposed to three months period in 2011.
Group’s Financial Position
The Group is financially healthy as at 31 December 2012. Its total assets as at year end amounted to S$504.982
million (2011: S$455.807 million). Bank loans as at 31 December 2012 amounted to S$95.714 million
(2011: S$95.669 million). The Group’s net gearing ratio was at 25% as at 31 December 2012 (2011: 29%).
3
CHAIRMAN’S MESSAGE