Davenham Investments Limited
This subsidiary turned in an improved performance in 1985. Its successfully developed coal trading activities have now been incorporated in the recently formed joint venture with Total. In view of Davenham's growing involvement in China, coupled with the transfer of its coal business, it has been decided to transfer this company to Hutchison China Trade.
Hutchison Telephone Company Limited
For the Group's telecommunications subsidiary, 1985 has been a year of development with the achievement of significant milestones. In June, the company celebrated the official launch of its service and, in December, territory-wide coverage was achieved. The company is now an acknowledged quality provider of a public mobile radio-telephone service in Hong Kong.
The first six months of sales activity have underlined the potential of the portable handheld product. This product represented a major part of sales during 1985. The decision to invest in an advanced cellular system, which is accepted as a world standard, which is already adopted in the USA, Canada, Australia and South Korea, and which is soon to be adopted by other countries, has enabled Hutchison Telephone Company to offer an international service as well as true portability.
The current year will be one of growth, with the company well positioned for the competitive challenge of establishing market share leadership.
QUARRYING DIVISION
The quarrying division represented by the Anderson Asia group contributed profit before extraordinary items of HK$62 million (1984 – HK$51 million).
Quarry
The quarry operation had a reasonable year with profit in line with expectations. Generally, selling prices were depressed as a result of intense competition among concrete operators, but prices have started to pick up gradually since November.
The proposed construction of the Eastern Harbour Crossing will involve vacating the quarry at Cha Kwo Ling. Discussions are currently underway with the successful consortium for an involvement in the site formation work and the supply of aggregate.
Anticipating the possibility of the Cha Kwo Ling closure, a long term contract was signed with a quarry contractor during the early part of 1985 for exclusive marketing rights to aggregate produced at an island near to Hong Kong. This will ensure continuity of supply.
GROUP MANAGING
DIRECTOR OF HUTCHISON
WHAMPOA LIMITED,
SIMON MURRAY.
"The return of
confidence to the
territory, coupled with
an improvement in the
property market, has
helped to create an
environment conducive
to the further growth
and expansion of the
Group's operations."
11
HUTCHISON WHAMPOA LIMITED
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