Investment in Human Resources

Most importantly, we will also continue to invest in our people with job training, skills enhancement and team-building programmes because our employees are the essential components that ensure the Company's continued improvement and growth. Our success largely depends on how well our employees regard their jobs and reflect our Company's values: customer satisfaction, respect for regulations, on-the-job expertise, achievement and continuous learning. We appreciate and give thanks for the dedication of the KMB team and are confident that they are up to the challenge of achieving and maintaining world-class operational efficiency in all our endeavours.

Directors

Under the Public Bus Services Ordinance, the persons holding the positions of Commissioner for Transport and Deputy Secretary for Transport (Transport Services) are appointed by the Governor to sit on the Board of the Company. The incumbents of these posts throughout 1996 were Mrs Lily Teresa Yam Kwan Pui Ying, JP and Mr Isaac Chow Yiu Nam, respectively. Mrs Yam resigned as a Director of the Company on 10 March 1997. Mrs Dorothy Chan Yuen Tak Fai, JP, Acting Commissioner for Transport, was appointed to the Board on 10 March 1997. I would like to express my appreciation for the valuable contributions that Mrs Yam and Mr Chow have made to the Company, and take the opportunity to welcome Mrs Chan to the Board.

The Promise of Tomorrow is Here Today

We are now benefitting from the visionary solutions to business challenges we made last year and the years before. Tomorrow's success is at our doorstep today. We will rally our resources and, as in the past, work with governmental regulators and all parties pertinent to our business, to enable us to provide the kind of high quality service that customers have come to expect of us. With enterprise, spirit and a commitment to high standards, we will continue to focus our expertise and management strength toward the service of customers, shareholders and employees.

PC Woo

Chairman

Hong Kong, 10 April 1997

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