Our company has continued to evolve over the last year. All of our core businesses have improved, although the net results were negatively affected by losses in some of our associate companies. Nevertheless we are positive on the direction of our company and look forward to sharing with you our updates.
Our automotive business continues to be the key driver of our results, once again generating around 90% of our revenues. While the overall automotive sector in Indonesia has done well, our recovery was slowed by delays in new model introduction in a very dynamic mass market automotive sector, as well as the weak associate company results primarily related to losses in the Nissan/Datsun assembly business.
Our business has benefited from strong Hino truck sales that has had a good recovery on the back of domestic economic growth, registering sales growth of around 30% vs 2016. Our automotive leasing and financing businesses continue to grow and produce positive results, but perhaps more importantly, the portfolio growth has been highly selective and with minimal deterioration of quality, resulting in an NPL portfolio significantly smaller than most of our competitors.
Another bright prospect is our logistics joint venture with the Japanese company Seino. In two short years it has become a major player in the trucking business in Indonesia, and is on track to be one of the dominant logistics companies in Indonesia. In November, Indomobil also dedicated its new office and showroom building at Jalan MT Haryono, with just under 200,000 square feet spread over 20 floors, including offices, training centers, and showrooms. We welcome you to have a look at this important building on your next visit to Jakarta.
Our utilities business is relatively unchanged year on year, with slightly higher billable production. We look forward to further demand growth next year from both Bintan Resorts and Bintan Industrial Estate. Bintan Resorts has increasing demand from additional hotel properties opening over the next few years as well as from higher overall occupancy levels at the existing properties on the back of significantly higher visitor arrivals. Bintan Industrial Estate will have future growth from the new Offshore Marine Center and the upcoming new food industry cluster.
Our Batam industrial park continues to have consistent high quality revenues, although with very slow growth. Our Bintan industrial park has higher growth opportunities with the repurposing and refocusing exercise of the last few years starting to bear fruit. The new Bintan Offshore Marine Centre – jointly promoted with the EDB of Singapore – will add new tenants and opportunities to our existing industrial base, as will our new food related light industry cluster. The Aerospace Park which we are building in conjunction with our new international airport, brings a number of new industries to our park including an aircraft maintenance, repair and overhaul (MRO) facility being designed at the moment.
Our property business has been active on many fronts. We have added infrastructure and activities to support the build out of the remaining parts of Lagoi Bay and to lay the groundworks for future developments. We have increased the tourist facilities including the Safari Park, the Lantern Park, and the Lagoi Bay Mall, which have helped to stimulate the annual visitor arrivals to Bintan Resorts to almost 900,000 in 2017, a 33% increase over 2016.
Tour operators cite the lack of direct international flights and shortage of hotel rooms as the limiting factor. We continue to develop our Bintan International Airport located at Lobam, which has been granted a full public use license for international and domestic air travel, and as such will be the first privately owned public airport in Indonesia. Sriwijaya Air has signed an MOU to develop new routes from Bintan to Bali, Lombok and Manado, as complimentary destinations to Bintan for holiday makers. On the hotel development side, developers have announced management agreements with Holiday Inn and Indigo branded hotels in Lagoi Bay, and an additional 2,000 rooms is also being master planned for the south side of the lake.
Our ferry business had a good year on the strong visitor increases with average load factors increasing 7% overall and 17% over peak times. This led to revenue growth of 15% and profits tripling to S$1.3 million.
We have also been deleveraging our holding company balance sheet reducing our debt by S$216 million from S$641 million to S$425 million. We will opportunistically look to continue this deleveraging in coming years.
We believe, that notwithstanding the final results, we have had an interesting year, and we are excited about our prospects. We look forward to your continuing support going forward.
|Mr Lim Hock San||Mr Eugene Cho Park|
|Chief Executive Officer