Report of the Directors

The directors have pleasure in submitting their annual report together with the audited statement of accounts for the year ended 30th June, 1993.

GROUP'S ACTIVITY

The principal activity of the company and of the group is the operation of franchised public motor buses in Hong Kong. The principal activity of the subsidiary is set out in note 10 on the accounts.

SUBSIDIARY

Particulars of the company's subsidiary at 30th June, 1993 are set out in note 10 on the accounts.

ASSOCIATED COMPANY

Particulars of the group's associated company at 30th June, 1993 are set out in note 11 on the accounts.

ACCOUNTS

The profit of the company and of the group for the year ended 30th June, 1993 and the state of affairs of the company and of the group at that date are set out in the accounts on pages 9 to 23.

A first interim dividend of HK$0.21 per share and a special dividend of HK$0.50 per share were paid on 22nd April, 1993. A second interim dividend of HK$0.50 per share was declared on 27th July, 1993 and paid on 24th August, 1993. The directors now recommend that a final dividend of HK$0.70 per share be paid in respect of the year ended 30th June, 1993 and that HK$10 million be transferred to general reserve.

CHARITABLE DONATIONS

Donations made by the group during the year amounted to HK$17,700.

FIXED ASSETS

Movements in fixed assets during the year are set out in note 9 on the accounts.

DIRECTORS

The directors during the year are given on page

2.

In accordance with articles 120A and 122 of the company's articles of association, Madam Ngan Kit-ling, Dr. Henry Ngan, Messrs. Liu Lit-Mo and D.A. L. Wright retire from the board and, being eligible, offer themselves for re-election.

DIRECTORS' INTERESTS IN SHARES

At 30th June, 1993, the directors and their associates had the following interests in the issued share capital of the company as recorded in the register of directors' share interests:

Ordinary shares of HK$2 each

Other

Ngan Shing-kwan Ngan Kit-ling Ngan Kit-keung

Dr. Henry Ngan

Liu Lit-mo D.A. L. Wright Kevin L.K. Mak

Rafael S.Y. Hui

Personal

interests

Family interests

interests

3,568,637

33,468 (Note)

3,313,799

33,468 (Note)

33,468 (Note)

5,741,579

250

33,468 (Note)

62,250

5,000

5,509,468 1,250

Note: The 33,468 shares in the company are included in the estate of the late Madam Wong Yick-mui, wife of Mr. Ngan Shing-kwan.

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