Operational Review

BUSINESS DEVELOPMENT

KMB has been establishing links with transport oriented companies in the People's Republic of China (“PRC”) with a view to enhancing exchanges of information and examining business development opportunities relating to all aspects of bus operation.

During the year under review, KMB set up a joint venture with a well established United Kingdom bus body builder. The joint venture has initiated discussions with an interested party in the PRC with a view to establish facilities for the assembly and, later, manufacturing of bus bodies in the PRC.

In keeping with the Company's stated policy to offer comprehensive bus services, KMB will step up its efforts to develop cross-border bus services to facilitate passengers travelling to and from the PRC.

OTHER AVENUES OF INCOME

KMB is continually exploring all avenues of raising additional income so that bus fares can be kept as low as possible.

BUS BODY ADVERTISING

As an additional source of income, all of our "Airport Buses" were leased out to Cathay Pacific Airways for bus body advertising. The external livery of the "Airbuses" have been painted with the new corporate

logo of Cathay Pacific.

BUS SHELTER ADVERTISING

With the construction of

more new bus shelters, light boxes are gradually becoming available on these shelters for advertising

7

208

九龍公園

***LOON PARK.

purposes. This also helps to

increase our advertising

208

revenue.

Bus shelters with light box advertising

panels provide another source of

advertising revenue.

設於巴士站的廣告燈箱提供另一種 廣告收益。

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