1982 — Page 7

Report of the Directors

The Directors have pleasure in submitting to Shareholders their annual report and audited statement of accounts for the year ended 31st December, 1982.

Group Activities

The principal activities of the Company and its subsidiaries are ferry operations, property investment and development, general trading, shipbuilding and repairs.

Accounts

The profit and changes in financial position of the Group for the year ended 31st December, 1982 and the state of the Company's and the Group's affairs at that date are set out in the accounts on pages 7 to 20.

An interim dividend of 5 cents per share was paid on 11th October, 1982. The Directors now recommend that a final dividend of 10 cents per share be declared in respect of the year ended 31st December, 1982 and that $14 million be transferred to general reserve.

Charitable Donations

The Group's charitable donations paid during the year amounted to $22,000.

Fixed Assets

Movements in fixed assets during the year are set out on notes 8 and 9 on the accounts.

Share Capital

Changes in the Company's share capital are set out in note 18 on the accounts.

Directors

The members of the Board of Directors serving at the date of this report are shown on page 1.

His Excellency the Governor in exercise of the powers conferred by Section 10(1) of the Ferry Services Ordinance No. 30 of 1982 had appointed the persons for the time being holding the offices of Commissioner for Transport and of Deputy Secretary for Transport (1) as Directors of the Company with effect from the 30th July, 1982.

Mr. Lau Chan Kwok retired as Managing Director on the 31st December, 1982 but remains as a Director and Chairman, and Mr. Edmond T.C. Lau was appointed Managing Director as from 1st January, 1983.

In accordance with Articles 90 and 104 of the Company's Articles of Association, Mr. Lau Chan Kwok, Dr. Liu Yan Tak, Mr. Lee Pak Yiu and Mr. Shum Wai Yau retire from the board by rotation and, being eligible, offer themselves for re-election.

No contracts of significance to which the Company was a party and in which a Director had a material interest subsisted at the end of the year or at any time during the year.

At no time during the year was the Company a party to any arrangements to enable the Directors of the Company to acquire benefits by means of acquisition of shares in or debentures of the Company or any other body corporate.

Auditors

Peat, Marwick, Mitchell & Co. retire and, being eligible, offer themselves for re- appointment.

Edmond T. C. Lau Managing Director

Shum Wai Yau Director

Lee Pak Yiu Director

Hong Kong, 8th March, 1983

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