CMB_1985 — Page 6

The directors have pleasure in submitting their annual report together with the audited statement of accounts for the year ended 30th June, 1985.

GROUP ACTIVITIES

The principal activity of the company is the operation of franchised public motor buses. The principal activity of the subsidiary is the holding of properties for rental purposes.

ACCOUNTS

The profit of the company and of the group for the year ended 30th June, 1985 and the state of the company's and of the group's affairs at that date are set out in the accounts on pages 9 to 24.

A first interim dividend of 20 cents per share and a special bonus dividend of 5 cents per share were paid on 1st April, 1985. A second interim dividend of 18 cents per share was declared on 16th August, 1985 and payable on 18th September, 1985. The directors now recommend that a final dividend of 30 cents per share be paid in respect of the year ended 30th June, 1985, and that $10,000,000 be transferred to general reserve.

CHARITABLE DONATIONS

Donations made by the company during the year amounted to $17,880.

FIXED ASSETS

Movements in fixed assets during the year are set out in note 7 on the accounts.

DIRECTORS

The directors during the financial year are given on page 2.

In accordance with articles 122 and 120A of the company's articles of association, Madam Ngan Kit-ling, Dr. Henry Ngan, Messrs. M.T. Geoffrey Yeh, Liu Lit-mo and Jimmy S.F. Tse retire from the board and, being eligible, offer themselves for re-election.

Madam Ngan Kit-ling is the sole proprietor in Ngan & Co., one of the solicitor firms of the company, and as such has an interest in legal fees and expenses paid to that firm.

Mr. M.T. Geoffrey Yeh is a director and shareholder of Hsin Chong Holdings (HK) Limited, the holding company of Hsin Chong Construction Company Limited, contractor for the construction of the company's new bus depot at Wong Chuk Hang, Aberdeen, and as such has an interest in construction costs paid to the company.

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