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CHAIRMAN'S STATEMENT (CONTINUED)

Property Development and Investment Operations (Continued)

The gross rental income arising from the commercial arcades of the Group amounted to approximately HK$99 million. The commercial arcades of Shining Heights, The Spectacle and Metro6 were fully let at the end of 2018. The Occupancy rate of commercial arcades of Metro Harbour View and Green Code Plaza were 99% and 91%

respectively.

In June 2018, the Group was awarded the rights to develop the piece of land located at Kweilin Street/Tung Chau Street in Sham Shui Po, Kowloon, situated at New Kowloon Inland

Lot No. 6559 from Urban Renewal Authority at a consideration of HK$1,029.2 million. The land covers an

area of about 16,038 square feet and will be developed to a total gross floor area of about 144,345 square feet and the Group will be entitled to the residential gross floor area of about 97,845 square feet.

Foundation works commenced in November 2018 and will

be completed in the fourth quarter of 2019. The project is expected to be completed in late 2022.

Tuen Mun Town Lot No. 547

The construction of the Group's 50%/50% joint venture project with Empire Development Hong Kong Limited located at Castle Peak Road, Castle Peak Bay, Area 48, Tuen Mun, New Territories (Tuen Mun Town Lot No. 547) has been in good progress.

The project under construction consists of six residential towers providing about 1,635 units with sea view or landscape view. The gross floor area of the project is about 663,000 square feet and is expected to be completed in

2022.

The site formation and foundation works commenced in the

third quarter of 2017 and will be completed in the third quarter of this year. The superstructure works will start immediately thereafter.

Green Code

Ferry, Shipyard and Related Operations

During the year under review, the Ferry, Shipyard and Related Operations recorded a profit of HK$8.4 million, showing a 72% decrease as compared with last year. The decrease was mainly due to the fact that there were more emergency repair businesses in 2017.

Securities Investment

During the year, a profit of HK$17 million in Securities Investment was recorded, showing a decrease of 81% as compared with last year mainly due to the fact that most of the securities of the Group have been disposed of during the year ended 31 December 2017.

Hong Kong Ferry (Holdings) Company Limited

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Annual Report 2018

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