REPORT OF THE DIRECTORS

The directors have pleasure in submitting their report and audited accounts for the year ended 31 December 1989 to be presented at the annual general meeting to be held at Central Harbour Services Pier, 1st Floor, Pier Road, Hong Kong on 27 April 1990.

Principal activities

The principal activities of the group are ferry operations and related business, trading and services, property investment and travel business. The turnover and contribution to operating profit of the principal activities of the group are as follows:-

Ferry operations

TURNOVER

OPERATING PROFIT

1989

1988

HK$ million HK$ million

1989

HK$ million

1988

HK$ million

and related business

400.5

394.3

52.8

59.3

Trading and services

203.3

170.3

11.2

12.0

Property investment

58.2

35.7

49.2

30.1

Travel and others

67.5

74.0

2.0

Net interest income

9.0

0.2

729.5

674.3

122.2

103.6

Exceptional item

(37.2)

729.5

674.3

85.0

103.6

No geographical analysis is shown as less than 10% of the group's turnover and profit is derived from activities outside Hong Kong.

Financial results and dividends

The results and dividends of the group for the year ended 31 December 1989 and the state of the company's and of the group's affairs at that date are set out in the accounts on pages 12 to 25.

Donations

The group donated HK$25,000 to the Community Chest of Hong Kong (1988 - HK$110,500) for the year.

Fixed assets

Movements in fixed assets during the year are set out in notes 10 and 11 on the accounts.

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