CMB_1985 — Page 8

Chairman's Statement

Group Results and Dividend

On behalf of the Board of Directors, I am pleased to report that the audited consolidated profit for the year ended 30th June 1985, after transfer to Development Fund of $17.55 million in accordance with the Profit Control Scheme, amounted to $50.66 million compared with $46.69 million for the previous year.

The Directors will recommend to shareholders at the forthcoming ordinary yearly meeting to be held on 30th December 1985 the payment of a final dividend of 30 cents per share. This together with the first interim dividend of 20 cents per share, a special bonus dividend of 5 cents per share and a second interim dividend of 18 cents per share already paid, makes a total distribution for the year amounting to $33.78 million compared with $32.85 million for the previous year.

Traffic Activities

The number of passengers carried during the year under review rose slightly from 357.6 million to 364.0 million. an increase of 1.79 per cent whilst kilometers operated increased by 3.15 per cent from 53.9 million to 55.6 million.

However, following the opening of the MTR Island Line on 31st May 1985, passengers on routes running parallel to the Island Line and on Cross Harbour Tunnel routes decreased by more than 17% overall. Consequently, Routes 10M, 20M and 22M were withdrawn in June 1985 and Route 83A was withdrawn in July 1985. A programme of service rationalisation is now in progress to align service levels more closely with passenger demand. This programme will improve the cost-effectiveness of the bus operations and minimize the adverse financial impact on the Company of the opening of the Island Line.

Bus Fleet

During the year under review, 15 double-deck buses were added to the fleet and 4 reconditioned double-deckers were rebuilt with new bodywork. After allowing for the withdrawal from service of 35 buses, the Company's fleet at 30th June 1985 stood at 1.054 with a carrying capacity of 120,032.

Facilities For Passengers

More than fifty bus shelters were erected at additional locations during the past two years. Further units will be erected during 1985/86 following approval from the appropriate authorities.

A "hot line" telephone service was introduced on 1st November 1985 with the aim of improving the dissemination of bus service information to the passengers. Operating between 6 a.m. and 12 midnight, the service handles travel enquiries, lost property enquiries and complaints.

Depot Facilities

Following several delays in the completion and equipping of the new multi-storey depot building at Wong Chuk Hang. it commenced operation in November 1985. The modern maintenance equipment installed in the building. including twelve pits with concealed lights and beam jacks, a bus washing machine, stores and machine shop with lathes and milling machines, provides improved working conditions for our staff and higher maintenance standards. This new depot also provides parking facilities for more than 100 buses.

Work has already commenced on modernising the old depot at Wong Chuk Hang in order to bring the facilities up to modern-day standards and to increase its maintenance capacity.