1994 — Page 40

Report of the Directors

REPORT OF THE DIRECTORS

The Directors have pleasure in submitting their annual report together with the audited statement of accounts for the year ended 31 December 1994.

PRINCIPAL ACTIVITY

The principal activity of the Company is the operation of franchised public buses in Hong

Kong.

ACCOUNTS

The profit of the Company for the year ended 31 December 1994 and the state of the Company's affairs at that date are set out in the accounts on pages 45 to 60.

An analysis of the results and financial position of the Company is set out on pages 18 to 20 of this Annual Report.

DIVIDENDS AND SPECIAL CASH BONUSES

A first and second special cash bonuses of HK$2.68 and HK$1.13 per share were paid to the Shareholders on 26 January 1994 and 12 August 1994 respectively.

An interim dividend of 20 cents per share was paid to the Shareholders on 12 October 1994. The Directors now recommend that a final dividend of 60 cents per share in respect of the year ended 31 December 1994 be paid to the Shareholders on 9 June 1995.

CHARITABLE DONATIONS

Donations made during the year amounted to HK$1,756,000.

FIXED ASSETS

During the year, the Company has the following major additions and disposals of fixed

assets:-

a. Additions of buses with total cost of HK$408,777,000.

b.

Sales of the property at 81 How Ming Street, Kwun Tong with a net book value of HK$11,037,000 and a portion of the property at 51-53 Kwai Cheong Road, Kwai Chung with a net book value of HK$14,133,000.

Other details of movements in fixed assets during the year are set out in Note 10 on the

accounts.

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The Kowloon Motor Bus Company (1933) Limited

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