Report of the Directors

Ordinary Shares of HK$1 each

Personal

Family Corporate

Other

Interests

Interests

Interests

Interests

Sir Quo Wei Lee, CBE, JP, FCIB,

10,000

LLD (Hon), DBA (Hon), DLitt (Hon)

Rafael Hui Si Yan, JP

Isaac Chow Yiu Nam

Notes:

1.

2.

3.

4.

Associates of Messrs. Walter Kwok Ping Sheung and Raymond Kwok Ping Luen were substantial shareholders of Sun Hung Kai Properties Limited which beneficially held directly or indirectly 127,530,706 ordinary shares in the Company.

Mr Yu Shu Chuen and members of his family together have an interest in certain "tongs" which beneficially held 951,671 ordinary shares in the Company.

Messrs. Ng Siu Chan and Ng Kwan Wai were substantial shareholders of a private company which beneficially held 1,249,533 ordinary shares in the Company.

Mr Charles Lui Chung Yuen and members of his family together have an interest in certain private trusts and a bank nominee account which beneficially held 3,814,679 ordinary shares in the Company.

DIRECTORS' SERVICE CONTRACT

No Director proposed for re-election at the forthcoming Ordinary Yearly Meeting has an unexpired service contract with the Company which is not determinable by the Company within one year without payment of compensation, other than normal statutory obligations.

INTERESTS IN CONTRACTS

At an Extraordinary General Meeting held on 4 January 1994, the Shareholders of the Company approved the disposal of the property at 81 How Ming Street, Kwun Tong and a portion of the property at 51-53 Kwai Cheong Road, Kwai Chung to two wholly owned subsidiaries of Sun Hung Kai Properties Limited. The two transactions were completed during the year and the total surpluses arising from the sales of the above two properties of HK$1,711 million were accounted for as exceptional item in the accounts. The Directors of the Company, Messrs. Walter Kwok Ping Sheung and Raymond Kwok Ping Luen, who are also substantial shareholders of Sun Hung Kai Properties Limited were interested in the above transactions.

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The Kowloon Motor Bus Company (1933) Limited

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