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24 Cathay Pacific Airways Limited Annual Report 2003
Directors’ Report
We submit our report and the audited accounts for the year ended 31st December 2003 which are on pages 31
to 65.
ACTIVITIES
The Cathay Pacific Group (the “Group”) is predominantly managed and controlled in Hong Kong. As well as
operating scheduled airline services, the Group is engaged in other related areas including airline catering, aircraft
handling and engineering. The airline operations are principally to and from Hong Kong, which is where most of
the Group’s other activities are also carried out. Details are set out in note 2 to the accounts.
Details of principal subsidiary companies, their main areas of operation and particulars of their issued capital, and
details of principal associated companies are listed on pages 64 and 65.
ACCOUNTS
The profit of the Group for the year ended 31st December 2003 and the state of affairs of the Group and the
Company at that date are set out in the accounts on pages 35 to 65.
DIVIDENDS
We recommend the payment of a special dividend of HK¢28 per share and a final dividend of HK¢17 per share
for the year ended 31st December 2003. The special dividend represents the reduction, agreed on 5th May 2003,
to the 2002 final dividend. Together with the interim dividend of HK¢3 per share paid on 2nd October 2003,
this makes a total dividend for the year of HK¢48 per share. This represents a total distribution for the year of
HK$1,604 million. Subject to shareholders’ approval of the special dividend and the final dividend at the Annual
General Meeting on 12th May 2004, payment of the dividends will be made on 2nd June 2004 to shareholders
registered on 12th May 2004. The shareholders’ register will be closed from 7th May 2004 to 12th May 2004,
both dates inclusive.
RESERVES
Movements in the reserves of the Group and the Company during the year are set out in the statement of
changes in equity on pages 39 to 40.
ACCOUNTING POLICIES
The principal accounting policies are set out on pages 31 to 34. A statement of the reasons for a departure from
the standard financial reporting practices laid down by the Hong Kong Society of Accountants is set out in
principal accounting policy 4.
DONATIONS
During the year, the Company and its subsidiary companies made charitable donations amounting to
HK$4 million in direct payments and a further HK$6 million in the form of discounts on airline travel.
FIXED ASSETS
Movements of fixed assets are shown in note 9 to the accounts. Details of aircraft acquisitions are set out on
page 6.
BANK AND OTHER BORROWINGS
The net bank loans, overdrafts and other borrowings, including obligations under finance leases, of the Group and
the Company are shown in notes 14 and 19 to the accounts.