CHAIRMAN'S STATEMENT
PROFIT
I am pleased to report a group net profit after taxation of HK$133.71 million for the year ended 31 December 1991, representing an increase of 31.47% over the profit of the previous year. Earnings per share was 73.1 cents as compared with 55.6 cents in the previous year.
DIVIDENDS
Your Board recommends the payment of a final dividend of 26 cents per share. This dividend, together with the interim dividend of 8 cents per share already paid, will make a total distribution of 34 cents per share for the full year, which represents an increase of 13.33% over the dividend of the previous year.
BUSINESS REVIEW
Investment properties will continue to be the main revenue generator of the Group. The rental income from the investment properties increased by HK$2.9 million to HK$67.4 million in the year. This result was achieved after rental revisions despite a drop in occupancy rate to
94%.
Only 27% of the net profit after taxation in the year 1991 is derived from the franchised ferry services, which achieved a profit of HK$36.4 million, as compared with the profit of HK$9 million in the year 1990.
The travel service and trading business were growing steadily and the results in 1991 were satisfactory.
The shipyard at Tai Kok Tsui will be affected by the reclamation in Western Kowloon and a claim for compensation has been submitted to the Hong Kong Government in November 1991. Negotiation is continuing with the Goverment on the reprovisioning of the shipyard to north Tsing Yi. Plans for the redevelopment of the old shipyard site are being considered.
Due to the reclamations on both sides of the harbour, various piers will also be affected. Ongoing discussions are being conducted with the Government in respect of new arrangements for passenger and vehicular ferry services. Certain routes will be relinquished whereas new routes will be considered to meet demand in other areas, in particular the New Territories.
BONUS SHARES
Your Board proposes to capitalize part of the Company's share premium account for the sum $36.59 million and to make a bonus issue of one new share of $1 each credited as fully paid up for every five existing shares held by shareholders registered as such on the register of members of the Company on 16 April 1992. The bonus shares will rank pari passu in all respect with the existing shares of $1 each in the Company from their date of issue except that they will not rank for any dividend declared or recommended by the Company in respect of the year ended 31 December 1991 and the bonus issue of June 1994 warrants as announced by the Company today. The necessary Resolution will be proposed at the Annual General Meeting on 4 May 1992, and, if passed, share certificates will be posted on or about the same date.
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