2014 — Page 13

GREEN

The sale of residential units of METRO6 at No. 121 Bulkeley Street, Hung Hom has been carried out in phases. The response from pre-sale was satisfactory. More than half of the residential units had been sold. This residential-cum-commercial tower provides a total gross floor area of approximately 56,000 sq. ft. and comprises 95 residential units. The occupation permit has been issued in February 2015 and accordingly the sale turnover will be duly included in the unaudited interim financial statements of the Group in 2015.

Upon obtaining the response on the clarification on the land use under the crown lease from the relevant Government authorities, the Group will review the further development of 208 Tung Chau Street project.

Ferry, Shipyard and Related Operations

The Ferry, Shipyard and related operations recorded a decline of 76% in operating profit to HK$8.2 million this year as compared with last year, largely due to the absence of a one-off gain from the disposal of oil barges. The operating results of Harbour Cruise Bauhinia showed a decrease of 71% to HK$1.1 million this year due to the reduction in marginal profit.

Travel Operation

Due to the negative impact of the "Occupy Central" movement, the operating results of the Travel Operation doubled in deficit to HK$8.1 million this year.

Securities Investment

An impairment loss of HK$15.8 million was made against the Group's available-for-sale securities investment during this year.

PROSPECTS

The market anticipation of a probable rise in US interest rate in 2015 has raised uncertainty to the global economy. Although the US has maintained its stable growth, the Eurozone and Japan embarked on quantitative easing policies. China has also cut interest rate to boost the economy. The growth momentum of the Chinese economy has slowed down after the past decades of sustained rapid growth. In early March 2015, Premier Li Keqiang announced that the increase in the GDP of China in 2015 would be around 7%, in order to adjust to a "New Normal" in the economy. Under the discordant economic performances of various countries around the world, it is expected that the Hong Kong economy will sustain growth, albeit with increment less than the average 3.9% in the past ten years.

Hong Kong Ferry (Holdings) Company Limited Annual Report 2014

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