News
27 October 2005
Hongkong Post's 2004/05 Annual Report
Our Purpose: Linking People Delivering Business
Since becoming a Trading Fund in 1995, Hongkong Post has successfully developed from a vote-funded government department into a forward-looking, customer-focused and market-oriented organization. In Linking People, Hongkong Post strives to fulfill our social obligation to bring people together locally and around the world by delivering correspondence and merchandise promptly and reliably at uniform affordable prices. In Delivering Business, we dedicate ourselves to create added value to the economy of Hong Kong by providing business solutions to the different sectors and maintaining the viability of Hongkong post through diversification into new business area.
Customer Service
- In our public perception survey, 96% of the general public, 95% of business customers and 97% of the philatelists indicated they were either "very satisfied" or "satisfied" with our services.
- We were ranked in the top three among major service organizations in Hong Kong for the seventh consecutive year.
- We recorded a formidable success rate of 99.7% for next-day delivery of local letters across Hong Kong against a pledge of 98% that already represents the highest in the world.
Financial Performance
2004/05 was a year of continued improvements for Hongkong Post. We managed to increase our operating surplus from HK$17 millions in 2003/04 to HK$225.9 millions in 2004/05. Besides, we also achieved productivity savings through a 7.3% reduction in our controllable recurrent expenditure against the government target of 2.5%.
We have paid back completely the $900 million loan made to us 10 years ago. On the Government's initial trading fund capital of $2.1 billion, we have cumulatively contributed more than 100% return in the form of dividend, tax and loan interest
Investing in Future with Surplus Funds
Business environment in the coming year will present substantial challenges such as a surge in operating costs including:
Terminal Dues (payment for delivery of international mail):
- Net increase of terminal dues payment with effect from 1 Jan 2006 will amount to about $40 millions per annum.
We will continue to focus on the need to be a low cost business, meet targeted returns and generate the funds for future investment, such as:
Hardware:
- To invest over $100 millions for the replacement of the Mechanised Letter Sorting System in General Post Office and International Mail Centre to improve productivity.
- To conduct a feasibility study on counter automation to enhance customer convenience through a one-stop-shop counter service and improve operational efficiency.
- To carry out refurbishment work at post offices in order to provide a better environment for both staff and customers.
Software:
- To set up a dedicated industrial engineering team for streamlining processes of the complete postal operational system.
- To revamp IT systems in order to improve work efficiency.
Business Development
Hongkong Post will continue to focus on ways to achieve business growth and diversification, for example:
- In direct mail, we will collaborate with direct marketing industry to help make direct mail a cost-effective tool for marketers.
- In Speedpost service, we have already aligned with five of the world's leading postal administrations to provide a single express (or Speedpost) network spanning the Asia Pacific Rim, marked by advanced technologies and high performance levels. We will continue collaboration with other postal administrations and develop more value-added features of Speedpost.
- In logistics, we will drive business to help position Hongkong Post as a one-stop logistics solution provider.