Hong Kong Ferry announces FY2023 interim results Conglomerate with steady growth Offering medical and aesthetic services

 

Hong Kong Ferry announces FY2023 interim results

Conglomerate with steady growth

Offering medical and aesthetic services

 

Highlights of financial results The Group’s revenue for the six months ended 30 June 2023 amounted to HK$171 million, up by 23% as compared to the same period last year. Unaudited profit after taxation attributable to shareholders amounted to HK$88 million, up by 35% as compared to the same period last year. Earnings per share amounted to HK25 cents. An interim dividend of HK10 cents per share was declared for FY2023.

 

（21 August 2023, Hong Kong） –  Hong Kong Ferry (Holdings) Company Limited (the “Company”, which together with its subsidiaries, is referred to as the “Group”; SEHK stock code: 0050) announced interim results today for the 6 months ended 30 June 2023.

 

Period Under Review

 

For the 6 months ended 30 June 2023, profit attributable to shareholders of the company increased by 35% to HK$88 million. Basic earnings per share was HK$0.25 (2022: HK$0.18). The Board of Directors proposed an interim dividend of HK$0.10 per share in cash (2022: interim dividend of HK0.10 per share).

 

During the period under review, the Group’s profit was mainly derived from the rental income from shops and commercial arcades. At the end of the reporting period, the commercial arcades of Shining Heights and Metro6 were fully let, and the occupancy rates of Green Code Plaza, Metro Harbour Plaza and The Spectacle were 97%, 93% and 89% respectively.

 

During the first half of 2023, seven residential units out of the stock of the Group’s 50%/50% joint venture development project with the Empire Group at The Royale, 8 Castle Peak Road – Castle Peak Bay, Tuen Mun had been delivered to buyers and revenue from such property sales was duly recognised.

 

The Group’s redevelopment project ‘‘The Symphonie’’ in Cheung Sha Wan will provide residential gross floor area of about 100,698 square feet. The superstructure works were completed. The occupation permit had been obtained in June 2023 and interior fitting-out works are in progress. The project is expected to be completed in early 2024.

 

During the period, the border between Mainland China and Hong Kong re-opened and the Harbour Cruise – Bauhinia business improved. The turnover had basically recovered to the 2018 and 2019 levels. However, the business of the Shipyard declined and the Ferry, Shipyard and Related Operations recorded a loss of HK$3.9 million as compared with the loss of HK$0.4 million for the same period last year.

 

The Group established the aesthetic centre and specialist centre in the second half year of 2022 and first half year of 2023 respectively. Apart from setting up self-operating centres, the Group also cooperated with medical groups to offer professional medical services in order to increase the market share. Following the COVID-19 pandemic, the public has, to certain extent, changed their living and working habits. By providing consumer oriented high-quality services and leveraging the network of Henderson Group, the Group believes that our brand will become more popular among the public. As these businesses are in their initial stage of operations, setup losses totalling HK$17.5 million were recorded during the period.

 

Prospects

 

The real GDP of Hong Kong economy increased by 1.5% year-on-year in the second quarter of 2023. Private consumption expenditure increased by 8.2% year-on-year in real terms in the second quarter of 2023. Hong Kong has the distinctive advantages of enjoying strong support of the Motherland and close connection to the world. The Government spares no effort in revitalizing the economy and promoting Hong Kong. The Chief Executive, in his 2022 Policy Address, emphasised improving Hong Kong’s competitiveness and ‘‘competing for talents and enterprises’’ and promulgated measures to “advance from stability to prosperity’’.

 

Given the opportunities brought about by the Belt and Road Initiative, Hong Kong will focus on establishing governance systems, reinforcing traditional industries and developing emerging industries, and will strengthen the connection with the world and the Greater Bay Area. Special attention will be paid to foster greater flow of people, goods, capital and information in the Greater Bay Area, and to explore emerging markets such as the Association of Southeast Asian Nations, the Middle East, Central Asia and Africa. Hong Kong is to be developed as the hub for innovative technology, art/culture and finance/trade. Led by a capable and proactive government, Hong Kong’s economy is believed to recover and the city will again demonstrate its role as an international financial centre.

 

For the Hong Kong property market, banks have raised the HKD prime rate for the second time this year, pushing the mortgage cost to a higher level. With the chance of interest rate cut by Federal Reserve being remote this year, the local property market will be affected to a certain extent. It is expected that the property market will be relatively subdued in the second half of the year. However, the rental yield for quality commercial arcades will remain stable. It is expected that the rental income from shops and commercial arcades together with bank interest income will continue to be the major sources of revenue of the Group in second half of the year.

 

Mr. Gabriel Lee, General Manager of Hong Kong Ferry, said, “Over the past decades, the Group has successfully transformed itself from a ferry and shipyard focused business into an integrated conglomerate.  Moving forward, the Group will remain committed to supporting our communities by always “Putting people first” across our diversified development, seizing each opportunity to guard the health and wellbeing, and strive to fulfill its responsibilities and commitments for social development.”

 

For more details, please refer to the preliminary 2023 interim results announcement on the Company website at www.hkf.com and the HKEX News website at www.hkexnews.hk.

 

-End-

 

About Hong Kong Ferry (Holdings) Company Limited

Established in 1923, Hong Kong Ferry (Holdings) Company Limited in additional to its ferry business, is principally engaged in property development and investment, and to maximize the potential of its land resources, and to share synergies with Henderson Land Group. Since 2022, the Group has expanded and diversified into medical, aesthetic, healthcare services and products, and is committed to providing the most professional, safe and effective services to the public.

 

For further information, please contact:

Karen Chui / Josephine Wu

Tel:     (852) 2159 7719 / 2159 7714

Fax:    (852) 3568 8941

Email: ir@hkf.com