XN000022-1991-05-22 — Page 17

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WEDNESDAY, MAY 22, 1991

FIRST TIME FOR KOR TO DISTRIBUTE DIVIDEND

* * * * *

AFTER TIME

EIGHT YEARS

OF EXISTENCE

AS A

FIRST FOR THE STATUTORY CORPORATION, THE KOWLOON-CANTON RAILWAY CORPORATION HAS BBEN ABLE TO DISTRIBUTE A DIVIDEND PAYMENT OF SOME 20 PER CENT OF ITS PROFITS, ΤΟ THE GOVERNMENT COMMUNITY.

$125 MILLION, OR AND THUS ΤΟ THE

THIS WAS STATED BY THE FINANCIAL SECRETARY, THE HON SIR PIERS THE JACOBS, IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) WHEN TABLING ANNUAL REPORT AND ACCOUNTS OF THE KOWLOON-CANTON RAILWAY CORPORATION FOR THE YEAR ENDING DECEMBER 31, 1990.

FUTURE DIVIDEND PAYMENTS WOULD BE SUBJECT ΤΟ FURTHER REVIEWS BETWEEN THE GOVERNMENT AND THE CORPORATION.

THE

'THE DISTRIBUTION OF DIVIDENDS REFLECTS NOT ONLY THE RETURN

THE SUBSTANTIAL TAXPAYERS ON

PUBLIC

IN INVESTMENT

OPERATE CORPORATION BUT ALSO THE CAPABILITY OF THE CORPORATION TO A PRUDENT COMMERCIAL BASIS, HE SAID.

ΤΟ

THE

ON

SIR PIERS NOTED THAT THE CORPORATION CONTINUED ΤΟ MAINTAIN A STRONG FINANCIAL POSITION LAST YEAR.

REPRESENTING

A 17 YEAR, INCLUSIVE OF 50 PER CENT TO

OPERATING REVENUE STOOD AT $1,591 MILLION,

THE PER CENT INCREASE OVER 1989. NET PROFIT FOR INCOME FROM PROPERTY DEVELOPMENT, ROSE BY MORE THAN $624 MILLION.

TO $1,392 WHICH LED

OPERATING COSTS, HOWEVER, INCREASED BY 30 PER CENT MILLION, LARGELY AS A RESULT OF TRAIN SERVICE IMPROVEMENTS TO INCREASES IN STAFF, ENERGY CONSUMPTION AND MAINTENANCE COSTS.

BILLION AT TOTAL ASSETS STOOD AT $5

THE END OF THE YEAR.

WITH A BORROWING WAS REDUCED BY 37 PER CENT TO LESS THAN $1 BILLION, DEBT-TO-EQUITY RATIO OF 1 TO 3.9.

THE REPORT ALSO STATED THAT THE CORPORATION HAD TRANSFERRED

THE PURPOSE $320 MILLION TO A DEVELOPMENT RESERVE FOR

OF UPGRADING EXISTING FACILITIES AND MEETING NEW INFRASTRUCTURE REQUIREMENTS NECESSITATED BY GROWTH IN SERVICE DEMAND.

SIR PIERS POINTED OUT THAT THE HEAVY RAIL CARRIED OVER 179 FOUR PER CENT OVER MILLION PASSENGERS, REPRESENTING AN INCREASE OF 1989.

14

PER

*AVERAGE DAILY PATRONAGE FOR THE YEAR EXCEEDED 491,000. INTERNATIONAL PASSENGERS PASSING THROUGH LO WỤ INCREASED BY EIGHT CENT TO 28 MILLION,' HE SAID.

"

MAJOR EFFORTS HAD BEEN MADE DURING THE YEAR ΤΟ IMPROVE TRAIN SERVICES, SIR PIERS NOTED.

/"NEW TRAIN