On behalf of the Board of Directors, we are pleased to present the Annual Report of HONG FOK CORPORATION LIMITED (the “Company”) and its subsidiaries (the “Group”) for the financial year ended 31 December 2016 (“FY2016”).
REVIEW OF FY2016
During the year, the Group continued to engage in property related business, including the construction of its hotel at Orchard Road.
The Group’s revenue for 2016 was mainly rental income from the leasing of its investment and development properties.
The Group recorded a gain of approximately $98 million from the revaluation of its investment properties as at 31 December 2016 which is lower than the gain of $136 million as at 31 December 2015, as assessed by professional valuers.
In 2015, the Group’s profit included a net gain of approximately $82 million on disposal of its shares in Winfoong International Limited.
Hence, the Group posted a net profit attributable to Owners of the Company of approximately $73 million in 2016 as against $167 million in 2015.
The Group’s net asset per share as at 31 December 2016 was $2.24 as compared to the adjusted net asset per share of $2.14 per share as at 31 December 2015 (after taking into account the bonus shares issued in 2016).
The Group is committed to give due recognition and reward to its shareholders for their continuing support and loyalty. Hence, the Board has decided to recommend a first and final 1-tier tax-exempt dividend of 1.0 cent per share for FY2016.
The Group expects office and apartments rental market to remain stable. The residential sales market is showing more positive sentiments with the easing of the seller’s stamp duty but will remain subdued with the raft of cooling measures largely unchanged and the impending rise in interest rates.
The Group is looking to the expected opening of YOTEL Singapore Orchard Road in the second half of 2017 to contribute to the Group’s revenue.
The Group is continuously looking for suitable investment opportunities.
On behalf of the Board, we thank our shareholders, tenants, customers, bankers and business associates for their continued support to the Group.
We wish to thank our fellow Directors for their dedication, support and valuable contributions.
On behalf of the Board, we also thank the management and staff of the Group for their commitment and hard work.
CHEONG PIN CHUAN
CHEONG SIM ENG