Annual Report
Highlights of the Year 2006/07
Mail volume
Serving 2.82 million residential and business addresses, Hongkong Post handled 1.33 billion mail items during the year under review, or 3.65 million items per day, representing an increase of 2.3% compared with 2005/06.
Local mail accounted for about 87% of total traffic and showed a volume increase of 4.7%, while international mail accounted for the remaining 12.7% of total traffic, representing a volume decrease of 11.4% compared with the previous year.
Major overseas destinations
Major destinations for international letter mail and parcel traffic were the United States of America, United Kingdom, Japan, Australia and Mainland China. Hong Kong's international mail traffic involved the following regions:
Performance
Favourable results in our mail business were mainly attributable to higher growth in commercial volumes, as a result of burgeoning economic activities such as a series of mega-IPO exercises in Hong Kong during the year. Looking ahead, we anticipate that this growth will stabilise.
Financial performance
For the year ending 31 March 2007, Hongkong Post achieved total revenue of HK$4,115 million, representing 3.8% growth compared with the previous year. This was due mainly to the 2.3% increase in mail traffic, as described above.
Revenue and operating cost
Operating costs for the year ending 31 March 2007 amounted to HK$3,668 million, an increase of 3% compared with 2005/06. This was lower than the rate of revenue growth, as a result of effective cost-control measures. Measured by items handled per man-hour, Hongkong Post's productivity index increased from 115 to 116 compared with the previous year.
Operating profit totalled HK$447.3 million for 2006/07, while rate of return amounted to 12.7% on Average Net Fixed Assets.
Business Development
Speedpost Pearl River Delta special promotion
Recognising the high potential for Speedpost business in the Pearl River Delta region, a special promotion was launched in February 2007 offering a 50% discount to customers sending Speedpost documents to 11 major cities in Guangdong province – Guangzhou, Shenzhen, Dongguan, Foshan, Zhongshan, Jiangmen, Zhuhai, Huizhou, Qingyuan, Zhaoquing and Shaoguan. In addition to providing significant savings on postage, Speedpost delivers items as early as 1:00 pm the next working day. The initial response, in terms of an increase in traffic, has been encouraging.
Direct Mail Symposium
In June 2006, Hongkong Post organised a Direct Mail (DM) Symposium with a consultancy firm. A select group of DM professionals were invited to explore the prospect of enhancing customer loyalty through direct mail. The symposium elaborated on the findings of our recent media study, "Getting the Message Across", which indicated that the top three channels preferred by consumers are TV, newspapers/magazines and mail. Detailed findings are available on the Hongkong Post website (www.hongkongpost.com).
A significant event during the year was the Logistics Service Seminar, organised by Hongkong Post and the China Post Logistics Company in March 2007. More than 40 companies attending the seminar indicated a strong demand for quality cross-border logistics and value-added services, such as customs clearance and payment of customs duties. Taking reference from views expressed by seminar attendees, plans are now under way to introduce logistics services to meet the needs of all SMEs.
Productivity improvement
While exploring the potential for business development and new avenues of opportunity, we are also working to enhance Hongkong Post's operating systems and processes through the newlyestablished Productivity and Quality Management System (PQMS). The project was financed by the Quality of Service Fund of the Universal Postal Union. The exclusive aim of the fund is to improve letter post service quality, with a particular focus on speed, reliability and customer satisfaction.
Mail-tracing service
The number of enquiries handled by our Mail Tracing Office has increased significantly, as a result of a boom in the international registered mail service fuelled by an increase in Internet trading. To meet rising customer demand, we invested in enhancing call-centre facilities and performance. Reprovisioned in October 2006, the new Mail Tracing Office provides improved service to customers as well as a better working environment for our staff.
Issue of new definitive stamps
A new set of definitive stamps featuring a wide variety of birds in Hong Kong was issued on 31 December 2006. This was the third set of definitive stamps issued by Hongkong Post since the establishment of the Hong Kong Special Administrative Region of the People's Republic of China.
Publicity campaign
In March 2007, Hongkong Post launched a publicity campaign with the theme “Correct Address, Prompt Delivery” to encourage the public to write addresses clearly and accurately to facilitate prompt delivery of mail items. Featuring the popular cartoon character McMug as a “postal ambassador” helped us achieve wide media coverage and a positive response from the public.
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