Cathay Pacific 2004 Annual Report Download - page 26

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We submit our report and the audited accounts
for the year ended 31st December 2004 which
are on pages 33 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 aircraft 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 2004 and the state of affairs of the Group
and the Company at that date are set out in the
accounts on pages 38 to 65.
DIVIDENDS
We recommend the payment of a final dividend of
HK¢45 per share for the year ended 31st December
2004. Together with the interim dividend of HK¢20
per share paid on 4th October 2004, this makes
a total dividend for the year of HK¢65 per share.
This represents a total distribution for the year
of HK$2,191 million. Subject to shareholders’
approval of the final dividend at the Annual General
Meeting on 11th May 2005, payment of the
final dividend will be made on 2nd June 2005 to
shareholders registered on 11th May 2005. The
shareholders’ register will be closed from 6th May
2005 to 11th May 2005, both dates inclusive.
Directors’ Report
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 42 and 43.
ACCOUNTING POLICIES
The principal accounting policies are set out on
pages 33 to 37. A statement of the reasons for
a departure from the standard financial reporting
practices laid down by the Hong Kong Institute
of Certified Public Accountants (“HKICPA”) is set
out in principal accounting policy 4.
DONATIONS
During the year, the Company and its subsidiary
companies made charitable donations amounting
to HK$6 million in direct payments and a further
HK$8 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 pages 5 and 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.
SHARE CAPITAL
During the year under review, the Group did not
purchase or redeem any shares in the Company.
At 31st December 2004, 3,370,215,348 shares
were in issue (31st December 2003: 3,343,515,048
shares).
The Company adopted a share option scheme on
10th March 1999. During the year, 26,700,300
shares were issued under the scheme. Details
of the scheme can be found in note 20 to the
accounts.
22 Cathay Pacific Airways Limited 2004 Annual Report