CMB_1997 — Page 14

Chairman's Statement

GROUP RESULTS AND DIVIDENDS

The Board of Directors announces that the audited consolidated profit of the Group for the year ended 30th June, 1997 amounted to HK$2,721.35 million, which included exceptional gains of HK$339.20 million, compared with HK$62.26 million for the previous year.

The Directors will recommend to shareholders at the forthcoming Ordinary Yearly Meeting to be held on 24th December, 1997 the payment of a final dividend of HK$0.50 per share. The Directors will also recommend to the shareholders the payment of a special dividend of HK$2.00 per share in order to pass on to shareholders the dividend of a similar amount received from a subsidiary company. These two dividends, together with the first interim dividend of HK$0.21 per share, a special dividend of HK$1.60 per share, a second interim dividend of HK$0.10

of HK$5.81 year share and a second special dividend of HK$1.40 per share already paid, will make a total dividend for the per per share, compared with HK$3.78 per share for the previous year.

RESULT OF BUS OPERATIONS

Fare revenue from bus operations for the year ended 30th June, 1997 increased by HK$62.68 million compared with the previous year. The reason for this increase was primarily due to the revision of bus fares on Hong Kong Island and Cross-Harbour services in March 1996.

TRAFFIC ACTIVITIES AND BUS FLEET

The number of passengers carried during the year under review decreased by 3.4% from 183.8 million to 177.5 million. The main reason for this reduction was the withdrawal of 14 routes from the Company's network on 31st August, 1995. The kilometres operated amounted to 45.5 million compared with 44.0 million in the previous year. This increase was primarily due to the introduction of new routes and other service improvements which the Company implemented as part of the continuing effort to improve services for passengers.

This financial year has seen

the introduction of eight new bus services and a number of other service improvements. The new Western Harbour Crossing (WHC) opened in May 1997 and CMB commenced the operation of four cross-harbour routes using the WHC. Routes 905 (Lai Chi Kok to Wan Chai Ferry) and 905P (Lai Chi Kok to Kennedy Town) together with Route 105A (Cross Harbour Tunnel Toll Plaza to Central (Macau Ferry)) were introduced to replace Route 105. Route 914 (Sham Shui Po to Causeway Bay (Tin Hau)) replaced Route 114. Route 970 (Aberdeen to So Uk) was introduced to provide a new route between Southern District and Kowloon. The patronage on these routes has been encouraging. In June 1997, Route N680 (Kam Ying Court to Central), Route 309 (Central to Shek O) and Route 15C (Star Ferry to Garden Road) were introduced to strengthen existing CMB services and to attract more 'recreational' users.

Other service improvements included frequency improvements, route extensions and diversions and increasing the operating hours of service of a number of routes. Additionally, in order to meet the rising demand for high quality bus services, forty-four new three-axle, air- conditioned, double-decked buses entered service during the period with a further ten subsequently constructed. Orders for a further fourteen three-axle, air-conditioned, double-decked buses have subsequently been placed. After the withdrawal of 51 older low capacity buses, the Company's fleet at the year end stood at 841 buses with a total carrying capacity of 105,005. Of these, 185 are air-conditioned buses representing 22% of the total fleet.

During the period CMB ceased operating seven routes. Along with Routes 105 and 114 which were replaced by WHC routes, Routes 3, 22, 41, 45 and 47, which were loss-making services, were withdrawn to better utilise resources.

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 with great interest the development of low-floor double-decked buses by bus manufacturers, to assist mobility handicapped passengers, and continues to liaise with manufacturers concerning the latest progress.