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MANAGEMENT DISCUSSION AND ANALYSIS
The following comments should be read in conjunction with the Audited Consolidated Financial Statements of the Company
and the related notes to the financial statements.
REVIEW OF RESULTS
The Group's revenue for the year amounted to approximately HK$1,068 million, representing a decrease of 70% when compared to the previous year. This was mainly attributed to
the decrease in the sale of residential units of Green Code.
LIQUIDITY, FINANCIAL RESOURCES AND CAPITAL STRUCTURE
As of 31 December 2015, shareholders' fund of the Group showed a decrease of around 2.9% as compared to the previous year and amounted to approximately HK$5,652 million. The decrease was mainly due to the net effect of the decrease in property sales, impairment loss on securities and the payment of
dividends.
There was no change as to the capital structure of the Group during the year. Funding for the Group's activities during the year under review was mainly generated from the sale of residential units of Green Code and Metro6.
During the year, there was no material acquisition and disposal of subsidiary and associate. A net repayment of approximately HK$2.2 million was received from an associate which provided mortgage loans to buyers of residential units of Metro Harbour
View.
Current assets of the Group were recorded at approximately HK$3,224 million as compared to the current liabilities of approximately HK$472 million as of 31 December 2015. Current ratio of the Group had been increased to 6.8, mainly attributed to the decrease in trade and other payables.
GEARING RATIO AND FINANCIAL MANAGEMENT
As there was no borrowing as at 31 December 2015, no gearing ratio, which is calculated on the basis of bank borrowing as a ratio of the Group's shareholders' fund, was shown. Assets of the Group had not been charged to any third parties in the year under review.
The Group's financing and treasury activities were managed centrally at the corporate level. Financing facilities extended to the Group were denominated in Hong Kong dollar.
EMPLOYEES
As at 31 December 2015, the number of employees of the Group stood at about 300 (2014: about 300). The remuneration packages to employees were commensurable to the market trend and levels of pay in similar industries. A discretionary year- end bonus was paid to employees based on individual performance. Other benefits to employees included medical insurance, retirement scheme, training programmes and educational subsidies. Total employees' costs for the year amounted to approximately HK$99 million, which was commensurate with that recorded in the previous year.
Hong Kong Ferry (Holdings) Company Limited Annual Report 2015