1999 — Page 19

Report of the Directors

Hong Kong Ferry (Holdings) Co. Ltd.

17

ACCOUNTS AND DIVIDENDS

An interim dividend of 8 cents per share was paid on 12 October 1999. The directors now

recommend a final dividend of 20 cents per share to shareholders whose names appear in the

Register of Members on 28 April 2000.

CHARITABLE DONATIONS

The Group's charitable donations paid during the year amounted to HK$23,380 (1998: HK$63,760).

FIXED ASSETS

Movements in fixed assets are set out in note 11 on the accounts.

SUBSTANTIAL SHAREHOLDERS

At 31 December 1999, the following interests in shares in the Company were recorded in the register required to be kept under Section 16(1) of the Securities (Disclosure of Interests) Ordinance

("SDI Ordinance"):

No. of shares

Name of company

Henderson Investment Limited (Note 1)

Pataca Enterprises Limited (Note 1)

in which interested

108,588,090

70,200,000

Wiselin Investment Limited (Note 2)

38,388,090

Max-mercan Investment Limited (Note 2)

38,388,090

Henderson Development Limited (Note 3)

108,588,090

Henderson Land Development Company Limited (Note 3)

108,588,090

Kingslee S.A. (Note 3)

108,588,090

Hopkins (Cayman) Limited (Note 4)

108,588,090

Rimmer (Cayman) Limited (Note 4)

108,588,090

Notes:

The interests in 108,588,090 shares described below relate to the same parcel of shares.

1 The 108,588,090 shares are beneficially owned by some of the subsidiaries of Henderson Investment Limited ("HI"). Some of the subsidiaries of Pataca Enterprises Limited (a subsidiary of HI) beneficially own

70,200,000 shares out of 108,588,090 shares.

2

3

Wiselin Investment Limited, a subsidiary of Max-mercan Investment Limited which is a subsidiary of HI, beneficially owns 38,388,090 shares out of 108,588,090 shares.

These 108,588,090 shares are duplicated in the interests described in Notes 1 and 2. Henderson Development Limited ("HD") beneficially owns more than one third of the issued share capital in Henderson Land Development Company Limited (“HL”) which is the holding company of Kingslee S.A..

Kingslee S.A. has a controlling interest in HI.