1994 — Page 15

Chairman's Statement

RESULTS FOR 1994

I am pleased to report that the Company's profit attributable to Shareholders for the financial year ended 31 December 1994 is HK$2,116.8 million (1993 - HK$351.7 million). This includes an exceptional item of HK$1,710.8 million (1993 - Nil) arising from the disposal of two surplus depot sites. Bus operating profit for the year amounted to HK$406 million (1993 - HK$351.7 million), representing an increase of 15.4 percent as compared with 1993. Earnings per share for the year was HK$5.24 (1993 - 87 cents) and earnings per share before exceptional item was HK$1.01 (1993 - 87 cents).

The Company's bus operating profit for the year fell short of the Permitted Return by HK$1.6 million (1993 - HK$1.3 million). Together with the amounts brought forward from previous years, the accumulated shortfall was HK$44.4 million as at 31 December 1994 (1993 - HK$42.8 million). Subject to Government's agreement, the shortfall is recoverable from the Development Fund in future years.

DIVIDEND

At the forthcoming Ordinary Yearly Meeting, the Directors will recommend the payment of a final dividend of 60 cents per share for the year ended 31 December 1994 (1993 - 50 cents per share). Together with the interim dividend of 20 cents per share paid on 12 October 1994 (1993 - 18 cents per share), dividends for the year ended 31 December 1994 will amount to 80 cents per share, totalling HK$322.9 million (1993 - HK$274.5 million).

DISPOSAL OF PROPERTIES

At the Extraordinary General Meeting held on 4 January 1994, the Shareholders approved the sales of two surplus depot sites, namely the property at 81 How Ming Street, Kwun Tong ("Kwun Tong Property") and a portion of the property at 51-53 Kwai Cheong Road, Kwai Chung ("Kwai Chung Property"), to two wholly owned subsidiaries of Sun Hung Kai Properties Limited for cash considerations of HK$1,223 million and HK$505 million respectively. The transactions relating to the sales of the Kwun Tong Property and the Kwai Chung Property were completed on 4 January 1994 and 8 July 1994 respectively. The total surpluses arising from the sales, representing the excess of the sale proceeds over the net book value of the two properties and the expenses associated with the sales amounted to HK$1,711 million, and was accounted for as an exceptional item in the year under

review.

The Kowloon Motor Bus Company (1933) Limited

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