SINGAPORE BUSINESS AWARDS 2017 THE ENTERPRISE AWARD 2016 Straco Corporation Limited Founder s personal background Mr Wu Hsioh Kwang is the founder of Straco Corporation Limited and has been instrumental in driving the group s growth since its inception. Mr Wu was appointed Executive Chairman of the Company in March 2003, to lead the Group in its strategic vision and overall management. As Chairman of the Board, Mr Wu provides valuable business insight and guidance to the Board in developing growth strategies for the Group's businesses. Mr Wu s other appointments include Vice-President of Singapore Chinese Chamber of Commerce and Industry, First Vice-Chairman (China & North Asia Business Group) of Singapore Business Federation and Vice-Chairman of the 4th Standing Committee of Chinese Association of Enterprises with Foreign Investment (China), Director of Business China, Director of Sun Yat Sen Nanyang Memorial Hall, Council Member of National Arts Council, Member of the Board of Governors of NTU s Chinese Heritage Centre, Board Member of Confucius Institute, as well as Board Member of the Haas School of Business. In 2015, Mr Wu was awarded the White Magnolia Award in Shanghai for his contributions to the Municipal City of Shanghai. In 2016, he received the Public Service Medal at the Singapore National Day Awards, and in the same year, he was awarded the Nanyang Distinguished Alumni Award by Nanyang Technological University (Singapore)
Mr Wu holds a Bachelor of Commerce degree from the former Nanyang University (Singapore) and graduated in 1974. About Straco Corporation Limited Straco Corporation Limited ( Straco ), listed on the Singapore Stock Exchange in 2004, is a leading developer and operator of premier attractions and tourism-related projects. Straco s main operating assets include Shanghai Ocean Aquarium, situated in the Lujiazui Financial District, next to Shanghai s landmark Oriental Pearl Tower; Lixing cable car service at Mount Lishan in Lintong District, Shaanxi province; Underwater World Xiamen on the scenic Gulangyu Island, a key tourist attraction of Xiamen City; and the Singapore Flyer, an iconic landmark located in the Marina Bay skyline. Straco is committed in creating a unique and enriching visitor experience for all by providing high quality attractions and tourism-related projects with a key focus on cultural and environmental sustainability. Straco has been constantly sourcing for tourism projects to tap into the expected tourism boom in Asia. The Group will continue to leverage on its experience and track record in the China market and form strategic investment alliances to develop and operate tourism resources in China and around the region. Business assets Singapore Flyer Singapore Flyer is the Group s flagship project in Singapore. Launched in 2008, Singapore Flyer is one of the world s largest Observation Wheels standing at 165m tall. The business and assets of Singapore Flyer was acquired by Straco on 28 November 2014. The Giant Observation Wheel has a total of 28 capsules, where each capsule holds a 28-person capacity and each revolution takes approximately 30 minutes. From the capsules, visitors are able to enjoy panoramic views of the Marina Bay s skyline with glimpses of neighbouring Malaysia and Indonesia. During SG50, Singapore Flyer joined in to celebrate Singapore s 50th year of independence, with a series of festivities rolled out over Awesome August @ Singapore Flyer. Since Straco took over, the team at Singapore Flyer has also boosted CSR efforts with more outreach activities to the community and extending concessionary Flyer tickets for local underprivileged groups. Singapore Flyer was voted Number 1 on TripAdvisor Travellers Choice Singapore Landmark in 2015. Shanghai Ocean Aquarium (SOA) Shanghai Ocean Aquarium (SOA) is the Group s flagship project in China and one of the most popular major attractions in Shanghai with more than 2 million visitors per annum. Built at a cost of US$55 million in 2002, SOA has a total built-in area of 20,000 square meters that can house up to 21,000 people a day. The aquatic facility
showcases more than 10,000 fish from over 450 different aquatic species around the world. SOA is one of the world s largest indoor, closed system aquariums with a total capacity to hold more than 6.3 million litres of water. SOA is divided into 9 different thematic zones that exhibits aquatic life in a habitat complete with landscape designed to simulate the place of origin. SOA has one of the world s longest underwater viewing tunnels measuring at 155 meters with 270-degree views, to provide visitors with a surreal experience of exploring the ocean. SOA is the only aquarium in the world that boasts a separate exhibition zone dedicated to the display of rare and endangered species from the Yangtze River in China. For its continuous efforts in the promotion of marine and environmental conservation, SOA has been accredited as a Shanghai Municipal Education Base by the local authorities. The Aquarium also hosted the 2008 International Aquarium Congress (IAC) in Shanghai. Held every four years, the IAC is the most important event for the international public aquarium industry. To date it is the only aquarium in China to have hosted the event. Over the years SOA has launched a series of major exhibitions, which included the Save Our Sharks exhibition and campaign, co-organised with WWF, Discovering the Amazon Exhibit, and My Green Christmas an annual Christmas event unique to the Aquarium with its key message being environment conservation. Education programs at Shanghai Ocean Aquarium like the Underwater Night Camp are also very popular among local schools and are usually fully booked out through the year. As a Singapore company, Straco is proud to have had the honour of Singapore s founding Prime Minister Mr Lee Kuan Yew graced both SOA s ground breaking ceremony in 1997 and official opening in 2004. Underwater World Xiamen (UWX) Straco extended its footprint into Fujian Province with the acquisition of Underwater World Xiamen (UWX) in 2007. Situated on the scenic Gulangyu Island off the city centre, the aquarium is a key tourist attraction and a must-see for every visitor to Xiamen. With 4 million litres of water capacity, UWX is about two-thirds the size of Straco s flagship, Shanghai Ocean Aquarium. Besides offering a variety of aquatic species to match its larger sister aquarium, it also has on display one of the world s largest sperm whale specimens, which offers visitors a glimpse of the magnitude and grace of the gentle giant. This striking exhibit is the only one on display in China. UWX is the only National Education base in Fujian Province. Over the years, it has been working closely with local schools and communities to educate both students and adults about marine conservation. The frequent interaction with schools enables UWX to spread the message of marine conservation and deepen the general public understanding of the ocean and its inhabitants.
Lixing Cable Car (LCC) Located at the scenic Mount Lishan Xi an, the Lixing cable-car service (LLC) measures up to 1.5 kilometers in length. LLC was a pioneer in Western China in building a cablecar service of international standards that offers a spectacular view of the mountain and its surroundings. The cable-car ferries visitors from the base to the mid-level of the mountain where a heritage site, Chao Yuan Ge (CYG) is located. Straco owns the development right to the heritage site, an integral part of the restoration project for the grand Hua Qing Palace. The preliminary development concept for the CYG project showcases the unique culture and architectural features from the Tang Dynasty period. Financial summary $millions Revenue Profit before tax Profit attributable to shareholders Earnings per share (cents) Net asset value per share ( cents) 2011 2012 2013 2014 2015 2016 46.12 55.20 72.84 92.32 127.67 125.16 24.47 30.09 50.27 57.64 72.93 68.21 16.53 19.73 34.10 37.69 49.00 46.46 1.91 2.32 4.05 4.45 5.74 5.41 14.55 15.57 19.07 22.02 25.95 28.19
Financial performance - FY2016 Over the last 5 years, Straco has seen its share price increase by over 300%. This was driven by the growth achieved over the period in both revenue and earnings, which had increased over three-fold during this time. This was a result of the sustained growth of the tourism market in China, the group s prudence in managing daily operations, and a focused expansion strategy that plays to its strengths in managing iconic city attractions. A case in point would be the acquisition of the Singapore Flyer in 2014, which Straco managed to turn around for a profit within the first year of operating the asset in 2015, contributing in part to a 30% jump in group earnings over 2014 Business environment In the past year, despite cautious sentiments surrounding the world economy, domestic tourism in China has continued to maintain its momentum, amid strong support from the Chinese government for the industry. It registered double-digit growth in both tourist trips and revenues, while visitors to Singapore increased 7.7% year on year, hitting a record of 16.4 million, with China visitors topping key growth markets at a 36% year on year increase. The Group is convinced that this is part of a continuing and sustainable trend, and will continue to stay laser-focused on enhancing its capabilities in attractions development and management.
Awards In 2014, Straco Corporation was conferred the Top 10 ASEAN Enterprises Entering China Award by the China ASEAN Business Council (CABC). Corporations were judged based on the company s scale of investment in China, business performance as well as economic and social contributions to China. Mr Wu was also named Outstanding ASEAN Entrepreneurs Entering China at the same awards ceremony. Corporate social responsibility Mr Wu is a member of Haas Board, the advisory board for the dean and Haas School of Business at the University of California, Berkeley since 2009. In July 2010, Mr Wu gave US$1 million to the school to create a new fellowship fund for distinguished business graduates from China to study there. The Hsioh Kwang Wu Family Fellowship Fund would be used to support two fellows a year from China to study at the Haas School through its executive education and other programs. In Singapore, Mr Wu has since 2013, donated a total of S$2.5 million to the Wu foundation fund at the National University of Singapore (NUS), helping students from the Yale-NUS College requiring financial aid. The objective of the Wu Hsioh Kwang Study Award is to ensure that the liberal arts studies at the school are made accessible to talented students from the widest possible backgrounds