The directors have pleasure in submitting their annual report together with the audited statement of accounts for the year ended 30th June, 1994.
PRINCIPAL ACTIVITIES
The principal activity of the company is the operation of franchised public motor buses in Hong Kong. The principal activities of the subsidiaries are set out in note 9 on the accounts.
SUBSIDIARIES
Particulars of the company's subsidiaries at 30th June, 1994 are set out in note 9 on the accounts.
ASSOCIATED COMPANIES
Particulars of the group's associated companies at 30th June, 1994 are set out in note 10 on the accounts.
ACCOUNTS
The profit of the company and of the group for the year ended 30th June, 1994 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$0.30 per share were paid on 28th April, 1994. A second interim dividend of HK$0.50 per share was declared on 30th July, 1994 and paid on 23rd August, 1994. The directors now recommend that a final dividend of HK$0.74 per share be paid in respect of the year ended 30th June, 1994 and that HK$10 million be transferred to general reserve.
CHARITABLE DONATIONS
Donations made by the group during the year amounted to HK$1,200.
FIXED ASSETS
Movements in fixed assets during the year are set out in note 8 on the accounts.
The company has transferred a bus depot at Wong Chuk Hang Road, to a wholly owned subsidiary at an open market value of HK$90 million. The depot has been leased to the company in accordance with the franchise granted by the government for operating bus services at a nominal rent of HK$100 per annum for a period of two years to 31st August, 1995.
The company has sold Inland Lot 7550 at King's Road, North Point, Hong Kong, an old bus depot, for a consideration of HK$360 million to a joint venture company which is 50% owned by a wholly owned subsidiary of the company to redevelop the property for commercial use.
During the year, the company has added 30 new buses to the company's bus fleet and there were an additional 20 new buses under
construction at 30th June, 1994.
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 and Fritz Helmreich retire from the board and, being eligible, offer themselves for re-election.
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