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, similar to that of last year.
Discontinued Operation - Travel Operation
During the year under review, the Travel Operation recorded a loss of HK$7.9 million. But the Group recorded a one-off profit of HK$4.6 million upon disposal of the Travel Operation to Miramar Travel Limited in October 2016.
Securities Investment
During the year, a loss of HK$7 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 economies of China and Hong Kong grew 6.7% and 1.9% respectively in 2016. In 2017, the global politics and economy face numerous uncertainties, including the U.S. President Donald Trump's trade policy, protectionism and his Sino-US relationship, the Brexit as well as the elections in the Netherlands, France and Germany, etc. Notwithstanding the above, Hong Kong's economic performance in 2017 is expected to be satisfactory. With the further improvement in the U.S. economy and China's policy of "Maintain stable Growth, Promote Reform, Improve Living Standards", Hong Kong's economy is expected to grow steadily.
Since December last year, the numbers of incoming tourists to Hong Kong have increased in two consecutive months. If this trend prevails, the retail market is expected to further stabilise. As for real estates, due to the repeated aggressive bidding of land plots by mainland developers in public tenders, home buyers expect further appreciation in price of residential properties. The transactions in first-hand property market recently turned active. Despite the possible increase in the mortgage interest rate in Hong Kong following the rise of interest rate in U.S., it may not necessarily cool down the desire to purchase properties.
The Group acquired one half of the land plot in Tuen Mun Town Lot No. 547 in August last year. The accommodation value of approximately HK$4,100 per square foot is relatively low as compared with the subsequent tender of land in the vicinity. The Group is now developing the plot in full speed in order to bring satisfactory returns to the shareholders. The proceeds from the sale of the remaining units of Metro6 and Green Code will be the main source of income of the Group in 2017.
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.
Green Code
Dr. Lam Ko Yin, Colin
Chairman
Hong Kong, 17 March 2017
Hong Kong Ferry (Holdings) Company Limited
Annual Report 2016
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