China Motor Bus General Monthly Rated Staff Retirement Scheme
(a)
(i)
The market value of the scheme assets as at 30th June, 1998 was HK$12,835,000.
(ii) The on-going funding level of the scheme was 80%.
(iii) The solvency basis funding deficiency in the scheme was HK$273,000 and the on-going funding basis deficiency excluding
the above solvency deficiency was HK$3,259,000.
China Motor Bus Retirement Scheme
(b)
(i)
The market value of the scheme assets as at 30th June, 1998 was HK$219,728,000.
(ii)
The on-going funding level of the scheme was 81%.
(iii) The solvency basis funding deficiency in the scheme was HK$9,764,000 and the on-going funding basis deficiency excluding
the above solvency deficiency was HK$52,541,000.
China Motor Bus Senior Executive Retirement Scheme
The market value of the scheme assets as at 30th June, 1998 was HK$15,700,000.
(c)
(i)
(ii)
The on-going funding level of the scheme was 96%.
(iii) The solvency basis funding surplus in the scheme was HK$777,000 and the on-going funding basis deficiency
HK$656,000.
COMMENTARY ON ANNUAL RESULTS
Revenue and Operating Profit
was
Revenue of the Company for the year under review increased to HK$860 million from HK$833 million in the previous year. The main cause of this increase was the fare rise with effect from 1st December, 1997 and the improvement of operating efficiency. The operating profit of the Group for the year under review increased to HK$212 million from HK$68 million in the previous year. The increase of operating profit was mainly due to the increase in contribution from subsidiary.
The Group had 2,285 employees at the end of the year.
Liquidity and Financial Resources
For the year under review, net cash flow from operating activities was HK$54 million (1997: HK$52 million). Total dividends paid to shareholders during the year amounted to HK$273 million (1997: HK$242 million). Payment for capital investment amounted to HK$334 million (1997: HK$54 million). The cash flow statement for the Group for the year ended 30th June, 1998 is set out on pages 19 and 20 of this annual report.
At 30th June, 1998, the Group had no bank borrowing and had cash and cash equivalents of HK$2,573 million which were held in the form of short term deposits or cash at banks and in hand.
Capital Expenditure and Commitments
Capital expenditure incurred during the year amounted to HK$334 million, of which HK$29 million was for the purchase of buses, plant, fixtures and equipment, and HK$305 million was for the purchase of investment properties. These investment properties were purchased by subsidiary companies from an associated company. The Group's attributable share of the profit earned by that associated company on this transaction was HK$96 million. Accordingly, in order to reflect the true cost of the investment properties to the Group, this amount of the profit has been set against the cost of the investment properties in the account.
There were no capital commitments outstanding and not provided for in the accounts at 30th June, 1998.
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