CMB_1989_Copy2 — Page 6

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, 1989.

GROUP'S ACTIVITY

The principal activity of the group is the operation of franchised public motor buses in Hong Kong.

ACCOUNTS

The profit of the company and of the group for the year ended 30th June, 1989 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 21.

A first interim dividend of 21 cents per share and a special dividend of 5 cents per share were paid on 19th May, 1989. A second interim dividend of 18 cents per share was declared on 15th July, 1989 and paid on 14th August, 1989. The directors now recommend that a final dividend of 33 cents per share be paid in respect of the year ended 30th June, 1989, and that $10 million be transferred to general reserve.

CHARITABLE DONATIONS

Donations made by the group during the year amounted to $21,900.

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, 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.

The interests of the directors and their associates in the ordinary share capital of the company as at 30th June, 1989, all of which were beneficial, were as follows:-

Name of Director

*NGAN Shing-kwan

*NGAN Kit-ling

*NGAN Kit-keung

*Dr. Henry NGAN

M.T. Geoffrey YEH

LIU Lit-mo

Jimmy S.F. TSE

James Y.C. SO

No. of Ordinary Shares

4,492,105

4,153,799

6,350,718

6,581,829

1,250

62,250

712,100

Alice LAI SIU Po-Chun

The interests of each of these directors included all the ordinary shares in the company beneficially owned, as at 30th June, 1989, by a private company of which each of the directors concerned was, as at 30th June, 1989, a substantial shareholder.

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