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5
Chairman's Statement cont'd
makers. The swimming pools were opened in the summer of 1984.
An application was made to change the name of Crestbridge Estates Ltd. to HYFCO Properties Ltd. to reflect it is a wholly owned subsidiary of your Company.
HYFCO Development Co., Ltd. Three of the ten houses at Leyburn Villas, Cheung Sha, Lantau Island, were let. The rest are available for rent.
The Hong Kong Shipyard Ltd. continued to maintain your Company's fleet and also undertook maintenance of the four HM5 hoverferries of Sealink Ferries Ltd. It con- structed an additional Kwun Tong Vehicular/ Passenger Ferry Berth for your Company on behalf of Government.
The agency for the sale and servicing of the Vosper McLennan Vistar 301 Night Vision Equipment used for night sailing on sidewall hoverferries, was acquired.
HYFCO Trading Services Co. Ltd. operates a total of 10 supermarkets. During the year new supermarkets at North Point and Peng Chau Ferry Piers were opened. New super- markets at Tai Wo Hau Estate, Tsuen Wan and on Cheung Chau commenced business in January 1985.
In addition, a duty free shop was opened on Tai Kok Tsui Ferry Pier serving China ferry passengers.
HYFCO Ferries, Ltd. continued to manage the day to day operations of Sealink's hover- ferry service between Macau and Kowloon.
HYFCO Travel Agency Ltd. commenced business on 1st July 1984 and took over the tour business from HYFCO Trading Services Co. Ltd.
Associated Companies
Authian Estates Ltd. Development of its land at Silvermine Bay was postponed due to unfavourable property market conditions on Lantau Island. In this respect a provision of $6.9 million against interest in this associate was made in this year's accounts.
Sealink Ferries Ltd. in which
which your Company's wholly owned subsidiary, HYFCO Ferries, Ltd. has an interest, continues to operate a fleet of four HM5 sidewall hover- ferries between Macau and Sham Shui Po Ferry Pier in Kowloon. It also commenced night sailings on 11th November 1984. Popular free feeder bus service is provided for night sailing passengers to MTR Station and will be extended to day sailings.
Outlook
Ferry Services
The opening of the MTR Island Line is expected to have adverse effect on some of the cross harbour ferry routes and may lead to termination or modification of certain ferry services. Work is expected to commence shortly on a double deck vehicular ferry ramp at Sai Wan Ho to complement the use of double deck vehicular ferries and improve the carrying capacity of this route.
China Ferry Services
Competition from other China ferry services operators are expected to continue. Your Company will continue to explore the possibility of new ferry routes.
Shipyard
Efforts will be made to obtain more business outside the Group during the coming
year.
Property Development
The feasibility of proceeding with Block IV HYFCO Industrial Building at Tai Kok Tsui will be considered in the light of market conditions. Redevelopment of Jubilee Street Ferry Pier is also under consideration.
Trading Services
Gradual expansion of supermarket activities away from ferry piers will proceed as planned, subject to assessment of the effects of competition from major operators.
Travel Agency
Greater efforts would be made to channel tours to ferry routes operated by your Company.
Kowloon - Macau Ferry Service
More night sailings may be introduced to meet demand.
Appreciation
On behalf of members, I wish to extend our appreciation to all the staff in your Group of Companies for their loyalty and hard work during the past year.
Lau Chan Kwok Chairman
Hong Kong, 12th March, 1985