CMB_1996_Copy2 — Page 12

Chairman's Statement

GROUP RESULTS AND DIVIDENDS

The Board of Directors announces that the audited consolidated profit for the year ended 30th June, 1996 amounted to HK$62.26 million, compared with HK$297.07 million for the previous year, 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.

The Directors will recommend to shareholders at the forthcoming Ordinary Yearly meeting to be held on 13th December, 1996 the payment of a final dividend of HK$0.76 per share. The Directors will also recommend to the shareholders the payment of a special dividend These two of HK$2.00 per share in order to pass on to shareholders the dividend of a similar amount received from a subsidiary company. dividends, together with the first interim dividend of HK$0.21 per share, a special dividend of HK$0.16 per share, a second interim dividend of HK$0.10 per share and a special dividend of HK$0.55 per share already paid, will make a total dividend for the year of HK$3.78 per share, compared with HK$1.92 per share for the previous year.

RESULT OF BUS OPERATIONS

Bus fares on Hong Kong Island and Cross-Harbour services were increased on 3rd March, 1996 and this helped offset the increase in costs due to inflationary pressures. Despite this increase, the fare revenue from bus operations for the year ended 30th June, 1996 decreased by HK$10.42 million compared with the previous year due to the withdrawal of 14 routes from the Company's network when the Company's previous franchise ended on 31st August, 1995.

TRAFFIC ACTIVITIES AND BUS FLEET

The number of passengers carried during the year under review decreased by 5.5% from 194.5 million to 183.8 million. The main cause for this reduction was the withdrawal of 14 routes from the Company's network on 31st August, 1995. The kilometres operated amounted to 44.0 million compared with 44.3 million in the previous year. Again, this reduction was caused by the withdrawal of routes, however service improvements resulted in a lower decrease in kilometres operated than represented by the 14 routes.

This financial year has seen the introduction of four new bus services and a number of other service improvements. Route A20 (Central (Exchange Square) to Kai Tak Airport) commenced operation in September 1995 and the service has enjoyed increasing patronage since its introduction. Likewise Route N8 (Siu Sai Wan to Wan Chai Ferry) which is the Company's first Hong Kong Island all-night service has experienced a steady increase in patronage since it commenced in April 1996. Route 500 (Central (HYF Ferry Piers) to Wan Chai Ferry Pier) was introduced to improve the accessibility of the new ferry piers and Recreation Route 347 (Aberdeen to West Point (Holland Street)) was introduced to operate on festival days.

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, forty new three-axle, air-conditioned, double- decked buses were ordered during the period. Orders for a further six three-axle, air-conditioned, double-decked buses have subsequently been placed. After the withdrawal of 78 older low capacity buses, the Company's fleet at the year end stood at 848 buses with a total carrying capacity of 104,502. Of these, 143 are air-conditioned buses representing 17% of the total fleet.

FACILITIES FOR PASSENGERS

The Company is continuing to construct bus shelters throughout Hong Kong Island. An initial list of proposed locations for bus shelters has been approved by 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 following the development of low-floor double-decked buses by bus manufacturers, to assist those mobility handicapped passengers, with great interest and continues to liaise with manufacturers concerning the latest progress.

SENIOR CITIZEN CONCESSIONARY FARE SCHEME

On 3rd March, 1996 the Company extended the Senior Citizen Concessionary Fare Scheme, which had been initially introduced on 6th June, 1993 and improved on 3rd July, 1994, to cover all Hong Kong Island and Cross-Harbour Routes (excluding airport services) for all day on weekdays, Sundays and Public Holidays.

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