THE
KOWLOON MOTOR BUS HOLDINGS LIMITED 2002 ANNUAL GENERAL MEETING
At KMB Group's Annual General
Meeting today (Thursday, 16 May 2002), the Group's Chairman, Sir Sze-yuen
Chung, reported the financial results for 2001. Profit attributable
to Shareholders for the financial year of 2001 was HK$1,595.5 million,
representing an increase of 86.7 per cent over that of 2000. Earnings
per share for the year amounted to HK$3.95. The Board has recommended
a final dividend of HK$1.46 per share. Together with the interim dividend
of 40 cents per share paid in October 2001, the total dividend for 2001
amounted to HK$1.86 per share, a rise of 17.7 per cent when compared
to HK$1.58 per share for 2000.
"The Group achieved
strong growth despite the poor economic conditions in Hong Kong during
2001. This was attributed to our flexibility, economies of scale and
our quality management systems and practices which enabled us to redeploy
our resources quickly and efficiently to adjust to changing market conditions,"
said the Group's Chairman, Sir Sze-yuen Chung.
"Many people turn to
bus transportation when the economy slows down primarily for cost considerations.
We work hard to retain both these new customers, as well as our existing
ones, by ensuring that they are totally satisfied with our service.
By retaining existing customers and attracting new customers, and by
adhering to stringent cost control measures, we have been able to avoid
the need for fare increases for some four and a half years since December
1997. We will continue to emphasize bus service enhancement and productivity
gain so that our customers can enjoy comfortable and reliable bus journeys
at a reasonable cost."
There will be both challenges
and opportunities over the next decade. From this year onwards to 2004,
various new rail lines will progressively come into service. Whilst
these developments will mean intensified competition, KMB is also presented
with new opportunities. The development of new towns made possible by
the new rail lines will over the long term create new demand for bus
transportation.
KMB's bus-bus interchange
schemes, where it develops co-operative arrangements with other transport
operators, result in a more integrated and efficient public transportation
network. KMB customers can transfer between KMB buses, between KMB buses
and buses of other companies, and between these buses and the railways.
Because fewer buses are required in these co-operative arrangements,
the Group is making improvements to the environment by easing traffic
congestion and reducing pollution along urban routes.
"Looking ahead, we will
explore new growth opportunities to diversify our business with new
activities that are anchored in our core competencies and related to
the bus transportation business," said Sir Sze-yuen Chung.
A major accomplishment during
2001 was the successful launching and listing of RoadShow Holdings Limited
on the Main Board of The Stock Exchange of Hong Kong Limited. The Group
established the new subsidiary in December 2000 to diversify into the
out-of-home media sales business. The profit contribution from RoadShow
was very significant to the KMB Group's profit growth in 2001 .
The construction of the new
West Kowloon Depot to replace KMB's old Lai Chi Kok Depot has now been
completed. The Group's property division will develop an upscale residential
complex with a gross floor area of over one million square feet on the
existing Lai Chi Kok Depot site. The redevelopment is planned for completion
in 2005.
The Group's non-franchised
bus business will continue to be developed in Hong Kong. The Group will
also continue to explore business opportunities within the public transport
sector on the Mainland.
Sir Sze-yuen Chung said, "The skills, dedication and service culture
of our people have created a winning team, second to none in the bus
transportation industry. Last year, their excellence in performance
was independently affirmed and endorsed by external parties who bestowed
various awards on KMB in a number of areas, including their efforts
in quality management, high level of productivity, good human resources
management practices as well as effective and creative marketing and
advertising programmes. The award of ISO 14001 certification at the
Sha Tin Depot was an affirmation of our commitment to environmental
protection."
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