Notes to the Consolidated Financial Statements - Uni-Asia Finance ...

18
Uni-Asia Finance Corporation Annual Report 2009
Our Business
In 2009, we pulled out of the operation of Oita Toyo Hotel
while Hotel Vista Kyoto opened under our operation. As at
31 December 2009, we are operating 13 hotels with our
target customers being mainly business travellers and tourists
who require quality hotel accomodation at reasonable rates.
Hotel operations were affected by economic recession due to
the travel budget cuts of the business travellers and tourists, both
domestic and overseas. Overall hotel occupancy rates indicated
a sharp slide since the end of 2008 and while moderate recovery
was seen toward the end of 2009, the average occupancy in
2009 was lower than that of 2008. With the enhancement of the
management team of Vista Hotel Management, we are trying to
be back on the recovery trail in terms of hotel performance.
New business
We have obtained two new asset management deals in
which we act as an asset manager for office building funds to
replace the existing asset manager. We just took over the asset
manager’s position without equity investment. Office property
is a new type of asset management portfolio for the company.
We will try to seize such new opportunities as asset manager of
the funds.
China Business
Leveraging on our finance arrangement business and distressed
asset fund management business in China, we started property
investment in China in January 2007. We acquired pre-sale 14
office units with gross floor area of 1,320 sqm of the China Shine
Plaza, a commercial development in the Tianhe commercial
district in Guangzhou through Uni-Asia Guangzhou Property
Management Co., Ltd, a wholly owned property investment
company. All of 14 units are now leased out to third parties and
the market value of our office property had appreciated after our
purchase to date.
In 2009, we had contracted a service agreement with one
of the largest trading houses in Japan, in which we provide
administrative advisory services for their investment in warehouse
facility in Shenzhen. This is the first time we provided such an
administration service in relation to an investment in China. We
will increasingly explore this sort of asset management related
business in China by making use of our assets management
experience in ship investment and property investment.
We have been widening our network in the field of property
investment in Hong Kong with the aim of seeking out good
investment opportunities. When some of these opportunities
are realised, it will be the first step for us to develop our asset
management business in Hong Kong.