The Electrical & Mechanical Services Trading Fund recorded total revenue of $3.05 billion and an 11.3% return on revenue in 2004-05, slightly less than the previous year but still better than target.

This was due to clients' austerity programmes which affected its business. However, productivity improvement measures were effective, contributing to a healthy operating surplus. As the economy has begun to pick up, it is likely to benefit the trading fund's business in the future.

The trading fund's General Manager and Director of Electrical & Mechanical Services Lai Sze-hoi said it enjoyed several boosts to its turnover and morale during the year. These were the winning back of several major contracts, the successful renewal of a number of long-term service level agreements, as well as the tasks of providing technical support to complex projects such as A Symphony of Lights Phase II and the WTO Hong Kong Ministerial Conference.

Others include the successful provision of information technology services to clients and the relocation of the Electrical & Mechanical Services Department's new Kowloon Bay headquarters. It has given the trading fund a new base to enhance and upgrade its services to clients. The relocation also enables it to surrender two prime urban sites in Causeway Bay and Kowloon City for more cost-effective use.

Mr Lai underscored the importance of the trading fund's total quality management vision, which has provided the framework, criteria and motivation to promote innovation, enhance productivity and improve processes for continuous improvement in the long run.

"As management, we want total quality management to become part of our organisational fabric," he said.