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ANNUAL REPORT 2011 // 17
on mega-vessel operations. By concentrating on
continuous improvement in the effcient handling of
mega-vessels – along with our focus on intra-Asia trade,
high growth routes and transshipment – we believe we
will see an increase in throughput volume during 2012.
Stability of returns
Due to the muted global economy, container throughput
was 4% below IPO Prospectus1 forecast for the 9.5 months
of 2011. However, with a combined throughput of
21.9 million TEU, representing 52% of the entire
throughput handled at deep-water ports in Hong Kong
and Shenzhen in 2011, HPH Trust retains its market
leadership of the region. The Trust’s net proft for the
period ended 31 December 2011 was in line with our
forecast at HK$3,018 million, while net proft margin
was 31%. This was achieved mainly by adopting
various cost saving initiatives and continued operational
streamlining.
A HK$2.8 billion bank loan in respect of our YICT
operations has been renewed at an exceptionally
competitive rate, providing greater fnancial stability in
2012. Capital expenditures in the year will be managed
according to business demand, and our management
team is committed to maintaining a stable forecast DPU
yield, based on solid business returns.
Outlook for 2012
The economies of the emerging markets are showing
growth, and intra-Asia trade and international trade with
the Americas and Sub-Saharan Africa will continue to
expand. China’s economy appears to be stabilising,
and the government is initiating manufacturer and
exporter-friendly policies. We particularly welcome the
acceleration of infrastructure development across China,
which enlarges the PRD catchment area, captures the
growth of inland regions and ensures quicker and easier
access to the Trust’s ports. Carriers have entered into
more vessel sharing agreements, concentrating traffc
in larger ports that are able to handle them effectively.
This will further enhance the competitiveness of the
Trust’s ports, as the preferred ports-of-call for mega-
vessels. However, a faltering economic recovery in
developed countries, coupled with the unpredictable
future of the Euro-zone debt crisis, means the full
outlook for 2012 remains uncertain. Nevertheless,
the management team is confdent that we will respond
promptly and effectively to any challenges, given our
strong fundamentals.
Acknowledgements
We wish to praise our staff, management and board
members for their hard work and dedication to the Trust
during our frst year as a listed entity. We would also like
to thank our customers, suppliers and business partners
for their continued support, especially in what has been
a demanding time for the industry. Lastly, we wish to
thank our unitholders, whose unwavering support based
on belief in the Trust since our listing in March 2011
has been the driving force behind our achievements.
Thank you for your vote of confdence.
Together, we look forward to a bright year for the industry
and the Trust.
Fok Kin Ning, Canning
Chairman
Did you know?
COMBINED THROUGHPUT OF HIT,
COSCO-HIT AND YICT IN 2011:
21.9 million TEU
TOTAL BERTH LENGTH: 11,823 metres
TOTAL AREA: 514 hectares
1The Prospectus dated 7 March 2011 and registered with the Monetary
Authority of Singapore on 7 March 2011 (the “IPO Prospectus”)