2016 — Page 12

CHAIRMAN'S STATEMENT

I am pleased to present to the shareholders my report on the operations of the Group for the year ended 31 December 2016.

Dr. Lam Ko Yin, Colin Chairman

BUSINESS RESULTS

The Group's consolidated profit after taxation for the year ended 31 December 2016 amounted to approximately HK$237 million, an increase of 23% as compared with the profit after taxation of

HK$193 million last year. The earnings per share this year were HK$0.66 compared with the earnings per share of HK$0.54 in the previous year.

DIVIDENDS

The Board of Directors has recommended the payment of a final dividend for the year ended 31 December 2016 of HK26 cents per share (2015: HK26 cents per share). Subject to shareholders' approval at the annual general meeting to be held on Thursday, 25 May 2017, the final dividend will be paid on or about Wednesday, 14 June 2017 to shareholders whose names appear

on the register of members of the Company on Tuesday, 6 June 2017. The final dividend, together with the interim dividend of HK10 cents per share has already paid, will make a total distribution of HK36 cents for the full year.

BUSINESS REVIEW

During the year under review, profit for the Group was mainly

derived from the sale of the residential units of Metro6, Green

Code and Shining Heights.

Property Development and Investment Operations

During 2016, the profit of the Group from the sale of Metro6, Green Code and Shining Heights amounted to HK$129 million.

The numbers of unsold units of Metro6 and Green Code were 6 and 7 respectively at the year end. The sale of Harbour Park was satisfactory and 145 units were sold during the year, representing 90% of the total number of units.

The gross rental income from the commercial arcades of the Group amounted to approximately HK$89 million. As at the end of 2016, the occupancy rate of commercial podium of Metro6 was 97% and the commercial arcades of Shining Heights and The Spectacle were fully let. The occupancy rate of commercial arcades of Metro Harbour View was 98%. The committed tenancy of Green Code Plaza was 84%.

Joint Venture Company

The Group through its 50%/50% joint venture with Empire Group Holdings Limited owned by Dr. Walter Kwok Ping Sheung successfully acquired the land for residential use at Tuen Mun Town Lot No. 547 located at Castle Peak Road, Castle Peak Bay, Area 48, Tuen Mun, New Territories, for HK$2,708.8 million last year. The land is of a site area of 165,766 square feet and a gross floor area of approximately 663,000 square feet. It faces Gold Coast at the front and Harrow International School Hong Kong at the back. The preliminary design and preparation works of the project are in progress to build approximately 1,800 condominiums by phases in six years.

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Hong Kong Ferry (Holdings) Company Limited Annual Report 2016