CHAIRMAN'S STATEMENT (Continued)
Property investment
The property market boom continued well into 1988. There was virtually no vacancy in the group's industrial and residential premises during the year. Profit before interest and taxation improved by 12.9% to HK$30.1 million.
Travel and others
The travel and related business activities continued its strategy of capturing market share with a view to providing for future profit growth. Revenue increased from HK$53.3 million to HK$74 million, an improvement of 38.7%. Profit before interest and taxation dropped from HK$2.2 million to HK$2 million.
Community services
Fully aware of its social responsibilities, the group has continued to support a wide variety of community activities. In addition to making charitable donations of HK$110,500 in 1988, the group assisted in many fund-raising activities organised by various charitable associations and has been actively involved in organising the Hong Kong Dragon Boat Festival International Races ever since its inception.
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Employees
The group's 2,100 hard-working and well-trained employees produced satisfactory results in 1988. On behalf of shareholders and directors, I thank them for their valuable contribution.
Employee turnover increased to a record level of 19% in 1988. Greater emphasis has been placed on training of employees at all levels.
Prospects
The opening of the combined road and rail crossing from Cha Kwo Ling to Quarry Bay scheduled in August 1989 together with rising operating costs will put heavy pressure on the result of the franchised ferry services in 1989. Notwithstanding these negative factors, the company is committed to provide a better service to the public by undertaking pier refurbishment programmes, improving cleanliness inside piers and ferries and maintaining good customer service. As the availability of adequate pier facilities is a limiting factor in the provision of a better ferry service, especially in the Central District, the company is working closely with Government on locating suitable sites for construction of modern pier facilities in tandem with other similar existing facilities already provided for passengers to and from Macau and China.
Because of stiff competition, no significant improvement in the performance of the ferry services to China and Macau is expected for 1989.
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