CMB_1992 — Page 9

Chairman's Statement

GROUP RESULTS AND DIVIDENDS

The Board of Directors announces that the audited consolidated profit for the year ended 30th June, 1992 after transfer of HK$13.04 million to the Development Fund in accordance with the Profit Control Scheme amounted to HK$654.32 million which included an extraordinary gain of HK$575.05 million in relation to disposals of certain of the Group's leasehold properties, compared with HK$72.97 million for the previous year.

The Directors will recommend to shareholders at the forthcoming Ordinary Yearly Meeting to be held on 11th December 1992 the payment of a final dividend of HK$0.70 per share. This, together with the first interim dividend of HK$0.21 per share, a special dividend of HK$3.00 per share and a second interim dividend of HK$0.28 per share already paid, will make a total dividend for the year of HK$4.19 per share, compared with HK$0.77 per share for the previous year.

RESULT OF BUS OPERATIONS

Bus operating results improved compared with the previous year. Under the Profit Control Scheme we are only permitted a return on our bus operations equivalent to 15 per cent per annum of the average net fixed assets of the Company and consequently the sum of HK$13.04 million has had to be transferred to the Development Fund compared with a transfer from the Development Fund of HK$4.86 million in the previous year. The improvement in the results was due to receiving a full year benefit from the last fare rise of March 31st 1991.

TRAFFIC ACTIVITIES AND BUS FLEET

The number of passengers carried during the year under review decreased by 5.3% from 276.9 million to 262.3 million. The kilometres operated amounted to 52.2 million compared with 52.3 million in the previous year. Due to the introduction of several new routes we had forecast an increase in kilometres operated. However, because of traffic conditions this was not achievable.

This financial year has seen the introduction of 21 new bus routes. As part of the Government's on-going "Operation Nathan" plan to divert commuters away from the Nathan Road section of the MTR in order to avoid overloading that section of the railway, eight new bus routes have been introduced namely Routes 302, 303, 305, 307, 312, 336, 337 and 348 from Tsz Wan Shan, Yiu On, Mei Lam, Tai Po, Hung Hom Toll Plaza, Lei Muk Shue, Kwai Shing and Cheung On Estate respectively. Additionally, under the auspices of this project the ferry replacement service, Route 114, from Sham Shui Po Ferry to Central (Macau Ferry) was introduced.

In order to meet the rising demand for high quality bus services and to enable a greater number of passengers to enjoy air-conditioned bus services, five new air-conditioned bus routes have been introduced on Hong Kong Island, namely Routes 525, 543, 590, 592 and 595. These air-conditioned buses are used on Eastern, Southern, Central & Western and Wanchai District Routes terminating in Central, Braemar Hill, Wah Kwai, Wanchai Ferry, Ap Lei Chau, Causeway Bay and Aberdeen. These routes have generally proved to be successful. Additionally, in December 1991 new bus route number 261 was introduced between Chung Hom Kok and Central and this route is partially operated with air-conditioned buses.

Routes 93A and 95A between Lei Tung and Robinson Road and Aberdeen and Ap Lei Chau were introduced in September 1991 and March 1992 respectively. In September 1991 two new recreational routes serving Shatin race course were also introduced. In May 1992 there was a merger of Routes 78A and B to form Route 78 from Wong Chuk Hang to Wah Kwai and Route 79M was replaced by Route 43 from Wah Kwai to Admiralty.

During the year ended 30th June 1992, 38 new buses entered service and a further 20 were under construction. After the withdrawal of 37 older low capacity buses, the Company's fleet at the year end stood at 1,006 buses with a total carrying capacity of 117,582. Of these buses there are 63 air-conditioned buses with a further 20 under construction representing 8% of the total fleet.

FACILITIES FOR PASSENGERS

Approval of the new design of bus shelters and materials was received from the Advisory Committee on the Appearance of Bridges and Associated Structures. Subsequently three new shelters were constructed at Wah Fu Estate, Chai Wan Road and Tin Hau Temple Road. A list of proposed locations for new bus shelters has been agreed with Transport Department and these will be constructed as part of a rolling programme.

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