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.
GEARING RATIO AND FINANCIAL MANAGEMENT
As there was no borrowing as at 31 December 2018, no gearing ratio, which is calculated on the basis of bank borrowing as a ratio of the Group's shareholders' fund, was
shown.
REVIEW OF RESULTS
The Group's revenue for the year amounted to approximately HK$1,089 million, representing an increase of 143% when compared to the previous year. This was mainly attributed to the sale of residential units of Harbour Park.
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.
LIQUIDITY, FINANCIAL RESOURCES AND CAPITAL STRUCTURE
As of 31 December 2018, shareholders' funds of the Group showed a mild increase of around 2.7% as compared to the previous year and amounted to approximately HK$6,130 million. The increase was mainly due to the net effect of the profit realised from property sales, the gains on revaluation of the Group's investment properties and the payment of
dividends.
There was no change 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 the Group's properties and other operations.
Current assets of the Group were recorded at approximately HK$2,418 million and the current liabilities were approximately HK$180 million as of 31 December 2018. Current ratio of the Group had been increased to 13.4 as at 31 December 2018, mainly attributed to the decrease in trade and other payables.
EMPLOYEES
As at 31 December 2018, the number of employees of the Group stood at about 220 (2017: about 210). Total employees' costs for the year amounted to approximately HK$101 million. 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.
CHARGE OF ASSETS
As at 31 December 2018, shares in the Joint Venture Company were charged to secure the loan facility made available by banks to the Joint Venture Company. Details of the loan facility, the relevant guarantees granted and the securities provided are set out in note 27 on page 157 and note 28(b)(xii) on page 164 to the financial statements of this Annual Report.
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Hong Kong Ferry (Holdings) Company Limited Annual Report 2018
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REPORT OF THE DIRECTORS