CHAIRMAN'S STATEMENT (CONTINUED)
Ferry, Shipyard and Related Operations
During the year under review, the Ferry, Shipyard and Related Operations recorded a profit of HK$14 million, an increase of 69% as compared with last year.
Travel Operation
Due to the prolonged weakening of the local tourist and consumption market, the operating results of the Travel Operation recorded a deficit of HK$9.5 million this year, representing an increase of 17% as compared with last year.
Securities Investment
During the year, a loss of HK$1.6 million in Securities Investment was recorded mainly due to the impairment loss on securities investment in excess of the income from and disposal gain of securities.
PROSPECTS
The world economy is sluggish and the pace of economic growth in various countries will be different from each other. The economic recovery in the US caused the Federal Reserve to initiate the rise in the interest rate cycle, whereas the European Central Bank, due to the weak economy, expanded quantitative easing, widened negative interest rates and subsidised banks to encourage lending. The emerging markets are under the pressure of the strong US dollar, fall in commodity and oil prices, as well as poor demand in trade. These challenges are expected to persist in 2016.
It is expected that Hong Kong, affected by the above external factors, will likely have slow growth and weak external trade and tourism. The Government Budget forecast real gross domestic product to grow at 1%-2% in 2016, which is lower than last year.
The local property market is in a period of correction. The prices of medium and small-sized residential flats fell by around 10% in the past year, and are expected to further adjust in the coming year. The Group will take hold of future opportunities to replenish its land banks at fair prices.
The sale of the remaining residential units in Green Code and Metro6 will be the main source of income of the Group in 2016. Harbour Park, scheduled to be completed in 2017, will be the Group's major project for sale this year.
ACKNOWLEDGEMENT
On behalf of the shareholders and the Board, I would like to take this opportunity to express appreciation to all our staff for their dedication and hard work during the year.
Lam Ko Yin, Colin Chairman
Hong Kong, 18 March 2016
Hong Kong Ferry (Holdings) Company Limited
11
Annual Report 2015