CHAIRMAN'S STATEMENT
Group Results and Dividends
The Board of Directors announces that the audited consolidated profit for the year ended 30th June, 1990 after transfer from the Development Fund in accordance with the Profit Control Scheme amounted to $71.44 million compared with $59.63 million for the previous year.
The Directors will recommend to shareholders at the forthcoming ordinary yearly meeting to be held on 7th December, 1990 the payment of a final dividend of 33 cents per share. This, together with the first interim dividend of 21 cents per share, a special dividend of 5 cents per share and a second interim dividend of 18 cents per share already paid, will make a total dividend for the year of 77 cents per share compared with 77 cents per share for the previous year.
Result of Bus Operation
Bus operating results declined compared with the previous year. In accordance with the Profit Control Scheme, the sum of $49.83 million was transferred from the Development Fund to achieve the Permitted Return.
Significant factors affecting the results were the reduction in passengers carried and the cost of a revised improved retirement scheme for daily-rated staff.
To offset the deteriorating financial performance fares were increased on 18th March, 1990 by an average of 9% on local routes and 17% on cross-harbour routes, although no increase was applied to fares on local routes passing through Aberdeen Tunnel or to short-distance fares in Southern District.
Traffic Activities and Bus Fleet
The number of passengers carried during the year under review decreased by 9.0 per cent from 312.0 million to 283.8 million whilst kilometres operated decreased from 51.0 million to 50.4 million.
A new cross-harbour bus route 182 was introduced between Shatin City One and Central using the existing Cross Harbour Tunnel.
A further two new cross-harbour bus routes, 601 running between Admiralty and Sau Mau Ping and 606 running between Chai Wan and Choi Wan, commenced operation through the new Eastern Harbour Tunnel which opened to traffic in September 1989.
After further rationalisation, the Company's fleet at 30th June, 1990 stood at 989 buses with a total carrying capacity of 118,371. A further forty new three-axle high-capacity double-decker buses were purchased during the year under review and twelve of these buses have been fitted with air-conditioning equipment to provide a higher level of passenger comfort. All these air-conditioned buses have now entered service on two new routes to improve the quality of service offered to our passengers. The new routes are 537, running between Chi Fu Fa Yuen and Admiralty, and 504, running between Wah Fu and Wan Chai North.
Facilities for Passengers
A new design for bus shelters has been submitted to the Advisory Committee on the Appearance of Bridges and Associated Structures and approval for the basic design has been received. As soon as approval for the types of materials to be used has been granted construction of new shelters can commence.
The "hotline" telephone enquiry service received over 133,000 calls during the year.
Review of Management
KPMG Peat Marwick Management Consultants Limited were commissioned in January 1990 to conduct a review of CMB's organisation structure and managerial arrangements.
6