16

Report of the Directors

The directors have pleasure in submitting their report and audited accounts for the year ended

31 December 1999.

PRINCIPAL ACTIVITIES

The principal activities of the Group were ferry operations and related businesses, property development and investment, trading and services, travel business and hotel operations. The

turnover and contribution to profit from operations after finance cost of the principal activities of

the Group are as follows:

Ferry operations and

Contribution to profit

from operations after

Group turnover

1999

finance cost

1998

1999

1998

HK$ million

HK$ million

HK$ million

HK$ million

related businesses

357.5

601.0

(2.1)

(12.5)

Property development

and investment

259.8

83.8

86.3

54.9

Trading and services

143.0

151.8

2.3

4.2

Travel and others

128.9

127.0

(5.0)

(9.5)

Net interest income

43.3

96.6

889.2

963.6

124.8

133.7

No geographical analysis is shown as less than 10% of the Group's turnover and profit from

operations after finance cost are derived from activities outside Hong Kong.

MAJOR SUPPLIERS AND CUSTOMERS

No analysis in respect of the Group's major suppliers and customers is shown as the percentages

of turnover attributable to the Group's five largest customers and purchases attributable to the

Group's five largest suppliers are less than 30%.

SUBSIDIARIES

Details of the principal subsidiaries at 31 December 1999 are set out in note 14 on the accounts.

ACCOUNTS AND DIVIDENDS

The results of the Group for the year ended 31 December 1999, the state of affairs of the Company

and of the Group at that date and the related notes are set out in the accounts on pages 23 to

57.

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