Cathay Pacific 2015 Annual Report Download - page 33

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Annual Report 2015
31
depends are provided in the section of this annual report
headed 2015 in Review (on pages 5 to 14). To the extent
necessary for an understanding of the development,
performance or position of the Group’s business, a
discussion of the Group’s compliance with the relevant laws
and regulations that have a significant impact on the Group
is provided in the sections of this annual report headed
2015 in Review (on pages 5 to 14), Corporate Governance
Report (on pages 37 to 48) and Directors’ Report (on pages
30 to 35).
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 page 57 and in note 21 to the financial
statements, respectively.
Accounting policies
The principal accounting policies are set out on pages 100
to 105.
Donations
During the year, the Company and its subsidiaries made
charitable donations amounting to HK$12 million in direct
payments and a further HK$10 million in the form of
discounts on airline travel.
Property, plant and equipment
Movements of property, plant and equipment are shown in
note 8 to the financial statements. Details of aircraft
acquisitions are set out on page 12.
Bank and other borrowings
The net bank loans and other borrowings, including
obligations under finance leases, of the Group are shown in
notes 12 to the financial statements.
Share capital
There was no purchase, sale or redemption by the
Company, or any of its subsidiaries, of the Company’s
shares during the year and the Group has not adopted any
share option scheme.
At 31st December 2015, 3,933,844,572 shares were in issue
(31st December 2014: 3,933,844,572 shares). There has
been no movement in share capital during the year.
Capital commitments and contingencies
The details of capital commitments and contingent
liabilities of the Group at 31st December 2015 are set out in
note 28 to the financial statements.
Agreement for services
The Company has an agreement for services with John
Swire & Sons (H.K.) Limited (“JSSHK”), the particulars of
which are set out in the section on continuing connected
transactions.
As directors and/or employees of the John Swire & Sons
Limited (“Swire”) group, John Slosar, Ivan Chu, Martin
Cubbon, Rupert Hogg, Martin Murray, Ian Shiu, Merlin Swire
and Samuel Swire are interested in the JSSHK Services
Agreement (as defined below). Merlin Swire and Samuel
Swire are also so interested as shareholders of Swire. W.E.
James Barrington was so interested as an employee of the
Swire group until his resignation with effect from 7th
September 2015.
Particulars of the fees paid and the expenses reimbursed
for the year ended 31st December 2015 are set out below
and also given in note 27 to the financial statements.
Significant contracts
Contracts between the Group and Hong Kong Aircraft
Engineering Company Limited (“HAECO”) and its subsidiary,
Taikoo (Xiamen) Aircraft Engineering Company Limited
(“TAECO”), for the maintenance and overhaul of aircraft and
related equipment accounted for approximately 7.0% of the
Group’s operating expenses in 2015. HAECO is a subsidiary
of Swire Pacific; all contracts have been concluded on
normal commercial terms in the ordinary course of the
business of both parties.
Directors’ Report