Highlights

"Wharf Riding Wave of Attractive Growth"

Results

• Unaudited Group profit of HK$1,119.7 million, an increase of 5.3 per cent over last year.
• Earnings per share HK$0.46.
• Interim dividend of 28 cents per share.
• Debt to total assets ratio at 25.1 per cent.
• Moody¡¦s outlook on Group revised from "negative" to "stable"; and upgraded five categories in Commercial Mortgage Backed Securities ratings for Harbour City.

Property

• Group core portfolio about 90 per cent occupied, with retail at 96%. Gateway II: retail fully let; office and serviced apartments over 80 per cent. Tower 6 of Gateway II expect launch in the fourth quarter.
  
• Construction of residential properties on schedule. Superstructure works for Sham Tseng site and the Airport Railway Kowloon Station Package II in progress. Presale of these projects scheduled for 2001. Forward sales for the three Peak projects comprising Mountain Court, Chelsea Court and Hillview Court subject to market conditions.
  
• Hotels in Hong Kong achieved strong growth, and see further uptrend for full year. Discussions
  in advanced stage to manage "The Marco Polo, Beijing".
  

i-CABLE

• "Triple Play" with three direct major revenue streams from Pay TV, Broadband Internet and voice regarded as the only strategic formula for success in increasingly competitive environment. The three solutions provide unique bundling opportunities.
  
• Cohesive management has met all the targets despite two recessions occupying four of the first six years of operation.
• Arising from first or early mover advantage, significant growth seen across all aspects of operations.
  
  • Pay TV subscribers grew by 14 per cent to 480,000.
    
  • Pay TV EBITDA margin gained 9 points to 30 per cent and viewership share to 30 per cent.
    
  • Pay TV EBITDA grew 63 per cent to HK$220 million and net profit achieved for the first time.
    
  • Internet subscribers grew by 370 per cent to 180,000. Broadband Internet subscribers introduced in March have exceeded 20,000.
  • Total i-CABLE revenue grew by 21 percent to HK$775 million and EBITDA grew by 57 percent to HK$176 million. Net loss improved by 68 per cent to HK$40 million.
  • Voice-over-IP trial to start this year with commercial rollout towards the end of 2001.

New T&T

• Growth in telephony services dramatic in all areas.
  
  • Installed fixed lines grew by 90 per cent to over 110,000; and IDD lines increased by 35 per cent to over 610,000.
  • Fixed lines revenue grew by 70 per cent to HK$133 million.
  • Total revenue was HK$323 million and contribution from fixed lines rose by 18 points to 41per cent.
• Infrastructure capabilities enhanced:
  
  • A second gateway switch commissioned in February 2000 and the third local switch commissioned shortly.
  • Rapid increase in traffic demand necessitated fourth and fifth local switches to be commissioned in near future.
  • External facilities connecting directly with Mainland and major international routes completed.
    
  • Became first operator to offer International Private Leased Circuits after ending the last chapter of telecoms monopoly in Hong Kong in January 2000.
    
  • New broadband and IP products launched to provide services to ISPs, ICPs and ASPs.

Modern Terminals

• Throughput grew by 9.8 per cent compared to same period last year.
  
• At completion, CT9 will provide 4 contiguous berths, a net increase of 2 berths to Modern Terminals. Capacity will increase from the present 3.4 million TEUs to 4.5 million TEUs.
• Development of CT9 and the strategic engagement in Western Shenzhen ports are both fortuitously timed in view of the impending entry of China into WTO.