Concrete
During July, 1985, the Anderson Asia group acquired 100% control of Ready Mixed Concrete (H.K.) Limited (RMC) and the business of the Congain Concrete group in March, 1986. Although 1985 has been a difficult and very competitive time for concrete operations, RMC was able to show considerable improvements in its trading results over those of 1984.
Asphalt
Despite keen competition, new records for both profit and production/laying tonnages were achieved in 1985. A new, fully computerized 200 tonnes an hour asphalt plant, with heated storage bins, was commissioned in early 1986 and will shortly be in full production. This plant will serve as a replacement for the plant currently situated at Cha Kwo Ling.
FINANCE AND INVESTMENT DIVISION
HK$344 million profit before extraordinary items was earned in 1985 (1984 — HK$335 million).
Consolidated Hotels Limited
The Sheraton-Hong Kong Hotel, in which the Group has an effective 39% interest, had a record year. It is the second most profitable Sheraton worldwide and the most profitable on a per room basis.
South China Morning Post, Limited
This associate, in which the Group has a 25% interest, earned an after tax profit of HK$151 million for the year to 30th June, 1985, an improvement of 16% on the results for the preceding year. Dividends totalling HK$33 million (1984 — HK$29 million) were received during the year.
The Cross-Harbour Tunnel Company, Limited
As reported in last year's operations review, this investment was sold in February, 1985, giving rise to an extraordinary profit of HK$197 million.
Hongkong Electric Holdings Limited Group
The performance of Hongkong Electric Holdings was very satisfactory and profit attributable to shareholders in 1985 was HK$1,204 million, an increase of 95% over the HK$619 million in 1984. The Group received dividends totalling HK$210 million during the year under review.
In August, 1985, the shareholding in Hongkong Electric Holdings was reduced to approximately 23% and an extraordinary profit of HK$209 million was realised.
International City Holdings Limited Group
This newly acquired 50% associate should make a significant profit contribution to the Group in the years ahead.
During the past year we have made very substantial investments in and commitments to Hong Kong. Although our cash holdings have been temporarily depleted, the profit contribution from these investments more than offset the resultant reduction in interest income. Our gearing ratio is low and debt servicing requirements are easily managed through the strong cash flow generated by the Group.
This year's excellent results have been achieved through the hard work and dedication of my colleagues on the Board and of all the employees in the Group and I would like to endorse the Chairman's thanks and appreciation for their contribution, loyalty and support.
Humay
Simon Murray
Group Managing Director
Hong Kong, 2nd April, 1986
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HUTCHISON WHAMPOA LIMITED