2013 — Page 17

Hong Kong Ferry (Holdings) Company Limited

Annual Report 2013

15

Report of the Directors

The directors have pleasure in submitting their annual report together with the audited accounts for the year ended 31

December 2013.

PRINCIPAL PLACE OF BUSINESS

Hong Kong Ferry (Holdings) Company Limited (the "Company") is a company incorporated and domiciled in Hong Kong and has its registered office and principal place of business at 98 Tam Kon Shan Road, TYTL 102, Ngau Kok

Wan, North Tsing Yi, New Territories, Hong Kong.

PRINCIPAL ACTIVITIES

The principal activity of the Company is investment. holding and the principal activities of its subsidiaries are property development, property investment, ferry, shipyard and related businesses, travel operation and securities

investment.

The analysis of the principal activities of the Company and

its subsidiaries (the "Group") during the financial year are set

out in note 3 to the accounts.

MAJOR CUSTOMERS AND SUPPLIERS

The information in respect of the Group's purchases

attributable to the major suppliers during the financial year

is as follows:

No analysis in respect of the Group's major customers is

shown as the percentage of turnover attributable to the

Group's five largest customers is less than 30%.

Apart from the foregoing, at no time during the year have the directors, their associates or any shareholder of the Company (which to the knowledge of the directors owns more than 5% of the Company's share capital) had any interest in these major customers and suppliers.

SUBSIDIARIES

Details of the principal subsidiaries of the Company at 31

December 2013 are set out in note 14 to the accounts.

ACCOUNTS AND DIVIDENDS

The profit of the Group for the year ended 31 December

2013 and the state of affairs of the Company and the Group

at that date are set out in the accounts on pages 44 to 122.

An interim dividend of HK10 cents (2012: HK10 cents)

per share was paid on 27 September 2013. The Board of Directors now recommend the payment of a final dividend

of HK26 cents (2012: HK26 cents) per share in respect of the year ended 31 December 2013. Subject to the shareholders' approval at the annual general meeting to be held on Friday, 23 May 2014 (the "2014 AGM"), the final dividend will be paid on or about Thursday, 12 June 2014 to shareholders whose names appear on the register of members of the Company on Wednesday, 4 June 2014.

CHARITABLE DONATIONS

Percentage

of the Group's total purchases

60.5%

70.0%

Charitable donations made by the Group during the year

amounted to HK$6,680 (2012: HK$12,422).

The largest supplier

Five largest suppliers in aggregate

Henderson Land Development Company Limited ("HLD"),

through its subsidiaries, was one of the Group's five largest suppliers during the financial year. As at 31 December 2013, HLD, a substantial shareholder (as defined in the

Rules Governing the Listing of Securities (the "Listing

Rules") on The Stock Exchange of Hong Kong Limited (the

"Stock Exchange")) of the Company, which indirectly holds approximately 33.33% of the issued share capital of the

Company.

FIXED ASSETS

Movements in fixed assets during the year are set out in

note 13 to the accounts.

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