HONG KONG FERRY (HOLDINGS) COMPANY LIMITED (Incorporated in Hong Kong under the Companies Ordinance)

Transcription

1 HONG KONG FERRY (HOLDINGS) COMPANY LIMITED (Incorporated in Hong Kong under the Companies Ordinance) INTERIM REPORT TO SHAREHOLDERS FOR THE SIX MONTHS ENDED 30TH JUNE, 1997 INTERIM RESULTS The unaudited consolidated net profit of the Group after taxation for the six months ended 30th June, 1997 amounted to HK$92.5 million, representing an increase of 7.4% over the same period last year. Earnings per share were 26 cents as compared with 24.2 cents over the corresponding period of Six months ended 30th June Notes HK$ million HK$ million Turnover Profit before taxation Taxation Profit after taxation Interim dividend Retained profit for the period Earnings per share (cents) Interim dividend per share (cents) Notes: 1. Hong Kong profits tax has been provided at the rate of 16.5% (1996: 16.5%) on the estimated assessable profits for the period less relief for available tax losses where applicable. 2. The calculation of earnings per share is based on earnings for the period of HK$92,474,000 (1996: HK$86,072,000) and the weighted average of 356,273,883 (1996: 356,266,869) ordinary shares in issue during the period. 1

2 INTERIM DIVIDEND The Board has resolved to pay an interim dividend of 8 cents (1996: 8 cents) per share in respect of the financial year ending 31st December, The interim dividend will be paid on or about Tuesday, 7th October, 1997 to shareholders on the register of members at the close of business on Friday, 3rd October, CLOSURE OF REGISTER OF MEMBERS The register of members will be closed from Monday, 29th September, 1997 to Friday, 3rd October, 1997, both days inclusive, during which period no transfer of shares will be registered. In order to qualify for the interim dividend, all transfers accompanied by the relevant share certificates and transfer forms must be lodged with the Company's Registrars, Standard Registrars Limited at Room 4401, 44th Floor, Hopewell Centre, 183 Queen s Road East, Hong Kong not later than 4:00 p.m. on Friday, 26th September, BUSINESS REVIEW Ferry Operation The overall operating loss of the ferry operations for the first half year decreased by 13% from HK$18.5 million in 1996 to HK$16.1 million. Whilst continuous improvements in results have been recorded in the non-franchised ferry services, franchised ferry services reported an increase in operating loss of 20% to HK$52 million and patronage of franchised ferry services dropped by 4% to 15.2 million. The benefit of fare revision was not significant for the first half of the year because it took effect only on 1st June, During the period under review, pilot programme has been launched to deploy smaller but more economical vessel on the North Point to Kwun Tong ferry route. Efforts were also being made to diversify and broaden the income base of the ferry operations, by way of businesses such as agency for marine products, ship management service for overseas ship owners and new harbour cruiser operational contracts. Property Investment The industrial property rental market remained soft in the first half of the year. Gross rental income decreased by 4% to HK$55.7 million. A mild decrease was recorded in both occupancy rate and rental per square feet. 2

3 Shipyard Operation Aggressive marketing efforts have enhanced the utilisation of the shipyard. Diversification to non-marine works such as plant work, generator set installation and E&M work also helped boosting business. Operating profit of the shipyard operation improved significantly during the period under review by 67% to HK$14.0 million. Other Businesses Travel Operation Operating profit of the Travel Operation increased by about 25% to HK$4.2 million. Impressive growth was recorded in the Local Tour business due to the opening of the Tsing Ma Bridge and the celebration of change in sovereignty. However, deterioration in the public order in Macau and the temporary suspension of mainland Chinese tours during the handover period affected the ticketing, hotel booking and China tour businesses. Sales of Macau ferry tickets and hotels have dropped significantly since the beginning of the second quarter. Hotel Operation Operating profit of the Silvermine Beach Hotel reduced by 33% to HK$1.5 million. This was mainly due to the unusually bad weather for the period under review, seriously affecting the number of holiday makers to the outlying district. Moreover, the number of incoming tourists to Hong Kong during the handover period fell far short of the estimation of the Hong Kong Tourist Association. Trading Operation Relinquishment of the supermarket business last year has resulted in better use of resources. Operating profit of the Trading Division improved significantly by 64% to HK$10.9 million because of focused efforts in developing the wholesale and fuel oil trading businesses. Interest Income Interest on bank deposits was HK$39.3 million during the period under review. THE PROPOSED REDEVELOPMENT OF CENTRAL FERRY PIERS The Transport Bureau has publicly indicated that the Administration would aim at concluding the deal by the end of The Company will co-operate closely to this end if the land premium payable is reasonable. 3

4 REDEVELOPMENT OF THE OLD TAI KOK TSUI SHIPYARD SITE On 13th June, 1997, the Government gazetted the Draft Mong Kok Outline Zoning Plan changing the use of the above site from industrial to comprehensive development. Application under Section 16 of the Town Planning Ordinance has recently been made to develop the site into a residential, commercial and hotel complex with a total gross floor area of approximately two million square feet. Negotiation of premium for redevelopment is expected to proceed in due course. PROSPECTS Due to the development of the road network, passengers have made use of other means of transport. Patronage of franchised ferry service continues to decline. In addition, the heaviest rainfall ever recorded for the first eight months in a year in the territories seriously affected the visit of holiday makers to the outlying islands. Furthermore, the anticipated surge of incoming tourists this year is expected not to materialise and tourists to Macau will continue to decrease due to deteriorated public order. The recent currency turmoils in Asia will likely cause the number of visiting Southeast Asian tourists to decline. The ferry, travel and hotel businesses of the Group are expected to be adversely affected and the outlook of business in the second half of the year therefore warrants more caution. DIRECTORS INTERESTS IN SECURITIES As at 30th June, 1997, the interests of the Directors in securities of the Company as recorded in the register maintained under section 29 of the Securities (Disclosure of Interests) Ordinance ( SDI Ordinance ) were as follows:- Number of Shares Personal Interests Corporate Interests Mr. Lau Chan Kwok 20,000 Mr. Lam Ko Yin, Colin 150,000 Sir Fung Ping Fan, Kenneth 3,950 Mr. Ho Hau Chong, Norman 3,313,950 Mr. Kan Yuet Loong, Michael 22,965 Mr. Lau Ting Chung, Edmond 1,000 Mr. Lau Yum Chuen, Eddie Dr. Lee Shau Kee 7,799, ,588,090 (Note 5) Mr. Leung Hay Man 2,250 Mr. Li Ning Mr. Wong Man Kong, Peter 1,298,000 Dr. Wu Shu Chih, Alex 186,030 4

5 SUBSTANTIAL SHAREHOLDERS At 30th June, 1997, the following interests in shares in the Company were recorded in the register required to be kept under section 16(1) of the SDI Ordinance:- Name of Company No. of shares taken to be interested Henderson Investment Limited (Note 1) 108,588,090 Pataca Enterprises Limited (Note 1) 70,200,000 Wiselin Investment Limited (Note 2) 38,388,090 Max-mercan Investment Limited (Note 2) 38,388,090 Henderson Development Limited (Note 3) 108,588,090 Henderson Land Development Company Limited (Note 3) 108,588,090 Kingslee S.A. (Note 3) 108,588,090 Hopkins (Cayman) Limited (Note 4) 108,588,090 Rimmer (Cayman) Limited (Note 4) 108,588,090 Notes : The interests of 108,588,090 shares described below relate to the same parcel of shares. 1. The 108,588,090 shares are beneficially owned by some of the subsidiaries of Henderson Investment Limited ( HI ). Some of the subsidiaries of Pataca Enterprises Limited (a subsidiary of HI) beneficially own 70,200,000 shares out of 108,588,090 shares. 2. Wiselin Investment Limited, a subsidiary of Max-mercan Investment Limited which is a subsidiary of HI, beneficiary owns 38,388,090 shares out of 108,588,090 shares. 3. These 108,588,090 shares are duplicated in the interests described in Notes 1 and 2. Henderson Development Limited ( HD ) beneficially owns more than one-third of the issued share capital in Henderson Land Development Company Limited ( HL ) which is the holding company of Kingslee S.A. Kingslee S.A. has a controlling interest in HI. 4. These 108,588,090 shares are duplicated in the interests described in Notes 1, 2 and 3. Rimmer (Cayman) Limited as trustee of a discretionary trust holds a majority of units in a unit trust ( Unit Trust ). Hopkins (Cayman) Limited as trustee of the Unit Trust owns all the issued ordinary shares which carry the voting rights in the share capital of HD. 5. Dr. Lee Shau Kee beneficially owns all the issued share capitals of Rimmer (Cayman) Limited and Hopkins (Cayman) Limited. By virtue of the SDI Ordinance, Dr. Lee Shau Kee is taken to be interested in these 108,588,090 shares which include the shares described in Notes 1, 2, 3 and 4. 5

6 CODE OF BEST PRACTICE None of the Directors of the Company is aware of any information that would reasonably indicate that the Company is not, or was not for any part of the six-month period ended 30th June, 1997, in compliance with the Code of Best Practice as set out in the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. PURCHASE, SALE OR REDEMPTION OF SECURITIES There has been no purchase, sale or redemption of the Company's securities by the Company or any of its subsidiaries during the period under review. Hong Kong, 4th September, On behalf of the Board Colin Lam Ko Yin Chairman 6