1995 — Page 86

FINANCIAL REVIEW

Number of buses

Million

1,200

1,000

800

Number of passengers

In

600.

400

1991

1992

1993

1994

1995

Distance operated

Million km

300

250

200

150

100

50

1991

1992

1993

1994

Capital expenditure

FIKSM

600

500

400

300

200

100

3,500

· 3,000

2.500

2.000

1,500

1991

1992

Buses & other motor vehicles

Others

1995

1993

1994

Buildings

1995

Number of buses and bus fleet capacity

440,000

420,000

400,000

380,000

360,000

Bus Reet capacity

by the Company's buses totalled 271 million kilometres (1994

- 255 million kilometres). The increase in distance travelled

was primarily due to the introduction of additional routes as

well as improved frequencies on certain routes.

Liquidity and Financial Resources

In 1995, the net cash inflow from bus operations was HK$970

million (1994 - HK$768 million). Total dividends paid to

shareholders during the year amounted to HK$331 million

(1994 - HK$1,820 million). Payments for capital investment

and repayment of bank loans amounted to HK$508 million

and HK$129 million respectively.

The cash flow statement of the Company for the year ended 31

December 1995 is set out on pages 43 and 44 of this Annual

Report.

At 31 December 1995, the total borrowings of the Company amounted to HK$438 million, representing an increase of

HK$52 million as compared with 1994. The gearing ratio,

representing the ratio of long term bank loans to the total

share capital and reserves of the Company, also increased

from 0.16 in 1994 to 0.2 in 1995. As a result of the increase in

total borrowings, the finance charge for the year increased by

1.8 per cent to HK$28.9 million as compared with HK$28.4

million in 1994. At 31 December 1995, cash and deposits at

bank amounted to HK$482 million.

At 31 December 1995, the Company had stand-by credit

facilities totalling HK$90 million and GBP 1 million. Bank

loans and overdrafts at the year end amounted to HK$438

million, of which HK$117 million was secured on the

Company's undertakings to execute legal mortgages to certain

1,000

500

1992

1993

1994

1995

Non air-conditioned buses

1991

Air-conditioned buses

Bus fleet caparity

THE KOWLOON MOTOR BUS COMPANY (1933) LIMITEDI

340,000

320,000

300,000

17