CMB_1995 — Page 11

Chairman's Statement

GROUP RESULTS AND DIVIDENDS

The Board of Directors announces that the audited consolidated profit for the year ended 30th June, 1995 amounted to HK$297.07 million, which included an exceptional gain of HK$189.44 million in relation to the disposal of Aberdeen Inland Lot Nos. 338 and 339, Nos. 8-10 Wong Chuk Hang Road, compared with HK$258.08 million for the previous year.

The Directors will recommend to shareholders at the forthcoming Ordinary Yearly Meeting to be held on 12th December, 1995 the payment of a final dividend of HK$0.76 per share. This, together with the first interim dividend of HK$0.21 per share, a special dividend year of HK$1.92 of HK$0.40 per share and a second interim dividend of HK$0.55 per share already paid, will make a total dividend for the per share, compared with HK$1.75 per share for the previous year.

RESULT OF BUS OPERATIONS

Bus fares on Hong Kong Island services were increased on 3rd July, 1994, and this helped offset the increase in costs due to inflationary pressures. Due, in part, to this increase, the fare revenue from bus operations for the year ended 30th June, 1995 increased by HK$22.76 million compared with the previous year.

TRAFFIC ACTIVITIES AND BUS FLEET

The number of passengers carried during the year under review decreased by 6.6% from 208.2 million to 194.5 million. The main cause for this reduction was the withdrawal of 26 routes from the Company's network on 31st August, 1993. However there has been a general reduction in patronage of about 2% which has principally been caused by the effects of increasing traffic congestion and increased competition from other operators and public transport modes. The kilometres operated amounted to 44.3 million compared with 45.0 million in the previous year. Again, this reduction was mainly caused by the withdrawal of routes and the effects of traffic congestion, which continues to affect the reliability of our services and consequently reduces the number of kilometres operated.

This financial

has seen year

the introduction of six new bus services, three Cross-Harbour and three Hong Kong Island routes, and a number of other service improvements. Of the new routes, Route 691 (Hang Hau (North) to Central (Macau Ferry)) was introduced replacing Route 690P and both Route 115 (Kowloon City Ferry to Central (Macau Ferry)) and Route 619 (Shun Lee to Central (Macau Ferry]) were introduced to replace Route 119. To cater for alterations in demand three new routes serving Southern District were introduced, namely Route 95B (South Horizons to Wong Chuk Hang), Route 99 (South Horizons to North Point Ferry) and a Recreation Route 338 (Chi Fu Fa Yuen to Aberdeen).

Other service improvements included frequency improvements, route extensions and lengthening the operating hours of service of a number of routes. Additionally, in order to meet the rising demand for high quality bus services, thirty new three-axle, air-conditioned, double- decked buses and eight new air-conditioned single decked buses entered operation during the period. These buses have been used to enhance Southern District, Eastern District and Cross-Harbour services. After the withdrawal of 116 older low capacity buses, the Company's fleet at the

year end stood at 924 buses with a total carrying capacity of 112,003. Of these, 141 are air-conditioned buses representing 15% of the total fleet.

FACILITIES FOR PASSENGERS

The Company is continuing to construct bus shelters throughout Hong Kong Island. A new list of proposed locations for bus shelters is being agreed with Transport Department and these will be constructed as part of a rolling programme.

FACILITIES FOR DISABLED PASSENGERS

To facilitate the use of our services by the disabled, all new buses which have entered service since 1993 have incorporated some of the features recommended by the UK's Disabled Persons Transport Advisory Committee (DIPTAC). The Company is in discussion with bus manufacturers regarding the development of low-floor double-decked buses to further assist those mobility handicapped passengers.

SENIOR CITIZEN CONCESSIONARY FARE SCHEME

On 3rd July, 1994, the Company extended the Senior Citizen Concessionary Fare Scheme, which had been introduced on 6th June, 1993, to cover all Hong Kong Island Routes for all day on weekdays, Sundays and Public Holidays.

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