NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
5
DISCONTINUED OPERATION
On 14 July 2016, the Group entered into a sale and purchase agreement with Miramar Travel Limited ("Miramar Travel”), a subsidiary of Miramar Hotel and Investment Company, Limited ("Miramar"), to dispose of the Group's entire interest of HYFCO Travel Agency Limited and its subsidiary ("HYFCO Travel Group") at an aggregate consideration based on an agreed value of HK$5,000,000.
Upon completion of the disposal of HYFCO Travel Group, the Group's travel operation would cease. Accordingly, the operation of HYFCO Travel Group was classified as discontinued operation.
The disposal of HYFCO Travel Group was completed on 6 October 2016 and the Group's travel operation ceased thereafter.
(a)
The results of the discontinued operation for the current and prior years are as follows:
Travel operation
2016
HK$'000
2015
HK$'000
Revenue
Direct costs
60,520
94,031
(52,565)
(80,788)
7,955
13,243
Other revenue
Other net income
Administrative expenses
Other operating expenses
Loss before taxation
Income tax
1,383
974
160
292
(5,340)
(9,547)
(11,938)
(14,469)
(7,780)
(9,507)
(103)
Loss for the year
(7,883)
(9,507)
(b)
The cash flows of the discontinued operation for the current and prior years are as follows:
Travel operation
2016
HK$'000
2015
HK$'000
Net cash used in operating activities
(5,216)
(11,711)
Net cash used in investing activities
(76)
(171)
Net cash generated from financing activities
3,760
11,026
Net cash flows
(1,532)
(856)
96
Hong Kong Ferry (Holdings) Company Limited
Annual Report 2016
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