Annual Report 2017 DIRECTORS’ and SENIOR MANAGEMENT’S PROFILE
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HONG KONG FERRY (HOLDINGS) COMPANY LIMITED 香 港 小 輪 ( 集 團 ) 有 限 公 司 (Stock Code : 50) TUEN MUN TOWN LOT NO. 547 The Group’s 50%/50% joint venture project acquired a land by public tender in August 2016, Tuen Mun Town Lot No. 547 located at Castle Peak Road, Castle Peak Bay, Area 48, Tuen Mun, New Territories for private residential purposes. The land is of a site area of 165,766 square feet. It faces Gold Coast at the front and Harrow International School Hong Kong at the back. The project under construction consists of six residential towers providing about 1,663 units with sea view or landscape view. The gross floor area of the project is about 663,000 square feet which is expected to be completed in early 2022. Corporate Information 2 Directors’ and Senior Management’s Profile 3 Financial Highlights 9 Chairman’s Statement 10 Management Discussion and Analysis 12 Report of the Directors 13 Corporate Governance Report 28 Environmental, Social and Governance Report 41 Independent Auditor’s Report 73 CONTENTS Consolidated Statement of Profit or Loss 79 Consolidated Statement of Profit or Loss and Other 80 Comprehensive Income Consolidated Statement of Financial Position 81 Consolidated Statement of Changes in Equity 83 Consolidated Cash Flow Statement 84 Notes to the Financial Statements 86 Five Years’ Summary of Assets and Liabilities 160 Ten Years’ Financial Summary 161 Group Properties 163 CORPORATE INFORMATION BOARD OF DIRECTORS COMPANY SECRETARY Executive Directors: Mr. Yuen Wai Kuen, Peter Dr. Lam Ko Yin, Colin (Chairman) AUDITOR Mr. Li Ning KPMG Non-executive Directors: PRINCIPAL BANKERS Mr. Au Siu Kee, Alexander Mr. Lau Yum Chuen, Eddie Bank of China (Hong Kong) Limited Dr. the Hon. Lee Shau Kee Bank of Communications Co., Ltd. Hong Kong Branch Mr. Wong Man Kong, Peter DBS Bank (Hong Kong) Limited Hang Seng Bank Limited Independent Non-executive Directors: The Hongkong and Shanghai Banking Corporation Limited OCBC Wing Hang Bank Limited Mr. Ho Hau Chong, Norman Mizuho Bank, Limited Mr. Leung Hay Man Ms. Wong Yu Pok, Marina REGISTERED OFFICE Mr. Wu King Cheong 98 Tam Kon Shan Road AUDIT COMMITTEE TYTL 102 Ngau Kok Wan Mr. Ho Hau Chong, Norman (Chairman) North Tsing Yi Mr. Leung Hay Man New Territories Ms. Wong Yu Pok, Marina Hong Kong Mr. Wu King Cheong Telephone : (852) 2394 4294 REMUNERATION COMMITTEE Facsimile : (852) 2786 9001 Website : www.hkf.com Mr. Wu King Cheong (Chairman) E-Mail : [email protected] Dr. Lam Ko Yin, Colin Mr. Li Ning SHARE LISTING Mr. Ho Hau Chong, Norman Mr. Leung Hay Man The Stock Exchange of Hong Kong Limited Ms. Wong Yu Pok, Marina Stock Code: 50 NOMINATION COMMITTEE SHARE REGISTRAR Dr. Lam Ko Yin, Colin (Chairman) Tricor Standard Limited Mr. Li Ning Level 22 Mr. Ho Hau Chong, Norman Hopewell Centre Ms. Wong Yu Pok, Marina 183 Queen’s Road East Mr. Wu King Cheong Hong Kong GROUP GENERAL MANAGER Ir. Dr. Ho Chi Shing, David 2 Hong Kong Ferry (Holdings) Company Limited Annual Report 2017 DIRECTORS’ AND SENIOR MANAGEMENT’S PROFILE DIRECTORS’ PROFILE Dr. Lam Ko Yin, Colin, SBS, FCILT, FHKIoD, DB(Hon), aged 66, was appointed on 1 July 1986, is the Chairman of the Company. Dr. Lam has over 44 years’ experience in banking and property development. He is also a Vice Chairman of Henderson Land Development Company Limited (“Henderson Land”) and Henderson Investment Limited, a non-executive director of The Hong Kong and China Gas Company Limited and an executive director of Miramar Hotel and Investment Company, Limited, all of which are listed public companies. He is also a director of Wiselin Investment Limited (“Wiselin”), Henderson Development Limited (“Henderson Development”), Graf Investment Limited (“Graf”), Mount Sherpa Limited (“Mount”), Paillard Investment Limited (“Paillard”), Hopkins (Cayman) Limited (“Hopkins”), Rimmer (Cayman) Limited (“Rimmer”) and Riddick (Cayman) Limited (“Riddick”). Henderson Land, Wiselin, Henderson Development, Graf, Mount, Paillard, Hopkins, Rimmer and Riddick have discloseable interests in the Company under the provisions of Part XV of the Securities and Futures Ordinance. He was awarded the Dr. Lam Ko Yin, Colin Silver Bauhinia Star (SBS) by the Government of the Hong Kong Special Administrative Chairman Region in 2017. Dr. Lam is the Deputy Chairman of The University of Hong Kong Foundation for Educational Development and Research and a Director of Fudan University Education Development Foundation. Dr. Lam was awarded an Honorary University Fellowship by The University of Hong Kong in 2008, and was conferred with a degree of Doctor of Business (Honoris Causa) by Macquarie University in 2015. Dr. Lam is a Fellow of The Chartered Institute of Logistics and Transport in Hong Kong and a Fellow of The Hong Kong Institute of Directors. Mr. Li Ning, BSc, MBA, aged 61, was appointed on 20 October 1989, is an Executive Director of the Company. Mr. Li is also an Executive Director of Henderson Investment Limited, a listed public company. He holds a B.Sc. degree from Babson College and an M.B.A. degree from the University of Southern California. He previously served as an Executive Director of Henderson Land Development Company Limited, a listed public company, until his retirement on 2 June 2015. Mr. Li is the son-in-law of Dr. Lee Shau Kee, a Non-executive Director of the Company. Mr. Li Ning 3 Hong Kong Ferry (Holdings) Company Limited Annual Report 2017 DIRECTORS’ AND SENIOR MANAGEMENT’S PROFILE (CONTINUED) Mr. Au Siu Kee, Alexander, OBE, FCA, FCCA, FCPA, AAIA, FCIB, FHKIB, aged 71, was appointed as an Independent Non-executive Director on 17 January 2005 and re-designated as a Non-executive Director of the Company on 7 November 2005. Mr. Au is a well-known banker in Hong Kong and has more than 32 years’ experience in local and international banking business, having been the Chief Executive Officer of Hang Seng Bank Limited (from October 1993 to March 1998) and of Oversea-Chinese Banking Corporation Limited in Singapore (from September 1998 to April 2002). Mr. Au previously served as an independent non-executive director of The Wharf (Holdings) Limited until 23 November 2017. Currently, he is an independent non-executive director of Henderson Investment Limited and Wharf Real Estate Investment Company Limited, and a non-executive director of Miramar Hotel and Investment Company, Limited, all of which are listed companies. He is the chairman and a non-executive director of Henderson Sunlight Asset Management Limited, the manager of the publicly-listed Sunlight Real Mr. Au Siu Kee, Alexander Estate Investment Trust. Mr. Au is a member of the Finance Committee of The Independent Schools Foundation Limited. Mr. Au was re-designated as an independent non-executive director of Henderson Land Development Company Limited, a listed public company, on 18 December 2012 until his retirement on 2 June 2015. An accountant by training, Mr. Au is a Fellow of The Institute of Chartered Accountants in England and Wales, The Association of Chartered Certified Accountants and the Hong Kong Institute of Certified Public Accountants. Mr. Lau Yum Chuen, Eddie, aged 71, was appointed on 5 May 1988, is a Non-executive Director of the Company. He has over 45 years of experience in banking, finance and investment. Mr. Lau is also an Executive Director of Henderson Land Development Company Limited (“Henderson Land”) and Miramar Hotel and Investment Company, Limited, both are listed public companies. Henderson Land has discloseable interests in the Company under the provisions of Part XV of the Securities and Futures Ordinance. Mr. Lau Yum Chuen, Eddie 4 Hong Kong Ferry (Holdings) Company Limited Annual Report 2017 DIRECTORS’ AND SENIOR MANAGEMENT’S PROFILE (CONTINUED) Dr. the Hon. Lee Shau Kee, GBM, DBA(Hon), DSSc(Hon), LLD(Hon), aged 89, was appointed on 15 December 1981, is a Non-executive Director of the Company. He has been engaged in property development in Hong Kong for more than 60 years. He is the founder and the Chairman and Managing Director of Henderson Land Development Company Limited (“Henderson Land”), the Chairman of The Hong Kong and China Gas Company Limited, the Vice Chairman of Sun Hung Kai Properties Limited as well as a non-executive director of Miramar Hotel and Investment Company, Limited. He is the founder, and continues to act as an Executive Director of Henderson Investment Limited after his stepping down as the Chairman and Managing Director on 1 July 2015. All the above companies are listed public companies. Dr. Lee was awarded the Grand Bauhinia Medal (GBM) by the Government of the Hong Kong Special Administrative Region in 2007. He is a director of Pataca Enterprises Limited (“Pataca”), Wiselin Investment Limited (“Wiselin”), Henderson Development Limited (“Henderson Development”), Graf Dr. the Hon. Lee Shau Kee Investment Limited (“Graf”), Mount Sherpa Limited (“Mount”), Paillard Investment Limited (“Paillard”), Hopkins (Cayman) Limited (“Hopkins”), Rimmer (Cayman) Limited (“Rimmer”) and Riddick (Cayman) Limited (“Riddick”). Henderson Land, Pataca, Wiselin, Henderson Development, Graf, Mount, Paillard, Hopkins, Rimmer and Riddick have discloseable interests in the Company under the provisions of Part XV of the Securities and Futures Ordinance. Dr. Lee is the father-in-law of Mr. Li Ning, an Executive Director of the Company. Mr. Wong Man Kong, Peter, BBS, JP, BSc, FCILT, MRINA, aged 69, was appointed on 9 March 1992, is a Non-executive Director of the Company. Mr. Wong was the President and Chief Executive Officer of the Company from 1992 to 1995. Mr. Wong has over 45 years of industrial, commercial and public service experience, having served as Director of Kowloon-Canton Railway Corporation and a member in Hong Kong Government’s Transport Advisory Board, Industry Development Board and Trade Advisory Board.