Hong Kong

Financial Review
In terms of the amounts attributable to the Group, gross rental revenue attributable to the Group during the year ended 31
December 2012 amounted to HK$6,628 million (2011: HK$5,805 million), of which HK$5,466 million (2011: HK$4,889
million) was generated in Hong Kong and HK$1,162 million (2011: HK$916 million) was generated in mainland China. In this
regard, the Group’s share of gross rental revenue comprises contributions from (i) subsidiaries (after deducting non-controlling
interests) of HK$4,482 million (2011: HK$3,907 million); (ii) associates of HK$651 million (2011: HK$562 million); and (iii)
jointly controlled entities of HK$1,495 million (2011: HK$1,336 million).
On the same basis, the Group’s share of pre-tax net rental income in aggregate amounted to HK$4,898 million (2011: HK$4,169
million), of which HK$4,031 million (2011: HK$3,585 million) was generated in Hong Kong and HK$867 million (2011:
HK$584 million) was generated in mainland China. In this regard, the Group’s share of pre-tax net rental income comprises
contributions from (i) subsidiaries (after deducting non-controlling interests) of HK$3,101 million (2011: HK$2,614 million);
(ii) associates of HK$563 million (2011: HK$475 million); and (iii) jointly controlled entities of HK$1,234 million (2011:
HK$1,080 million).
Construction
Turnover for the year ended 31 December 2012 increased significantly by HK$717 million, or 1,630%, over that in the previous
year which is mainly attributable to the revenue contribution during the year from the construction contracts undertaken for
“Double Cove” and “The Reach” (both being the Group’s property development projects in Hong Kong) as well as a new
property development project of HK Ferry in Hong Kong.
The loss from operations for the year ended 31 December 2012 decreased by HK$11 million, or 18%, from that in the previous
year which is mainly attributable to the increase in the operating profits generated by the abovementioned construction
contracts of HK$28 million during the year, and which was partially offset by the net increase in administrative and operating
expenses of HK$17 million (including the additional depreciation charge of HK$8 million relating to the construction plant and
machinery acquired by the Group during the year).
Infrastructure
The Group’s infrastructure business represents the operation of a toll bridge in Hangzhou, mainland China, which is held by
Henderson Investment Limited, a subsidiary of the Company.
For the financial performance of the Group’s infrastructure business for the year ended 31 December 2012, please refer
to the paragraph headed “Henderson Investment Limited (“HIL”)” under the section “Review of Operations” on page 82
of the Company’s annual report for the year ended 31 December 2012 and of which this Financial Review forms a part.
Notwithstanding the provisional suspension in the payment of toll fees in respect of Hangzhou Qianjiang Third Bridge to a joint
venture company of HIL for the period from 20 March 2012 to 31 December 2012 for the reasons as described therein and as a
result of which the Group recorded toll revenue of HK$63 million (2011: HK$299 million) representing a decrease of HK$236
million or 79% from that of the previous year, the toll revenue generated by Hangzhou Qianjiang Third Bridge during the year
ended 31 December 2012 amounted to HK$317 million which represents an increase of HK$18 million or 6% over that for the
corresponding year ended 31 December 2011.
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Henderson Land Development Company Limited
Annual Report 2012