Cathay Pacific 2005 Annual Report Download - page 26

Download and view the complete annual report

Please find page 26 of the 2005 Cathay Pacific annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

24 Cathay Pacific Airways Limited Annual Report 2005
Directors’ Report
We submit our report and the audited accounts for the
year ended 31st December 2005 which are on pages
41 to 85.
Activities
Cathay Pacific Airways Limited (the “Company”) is
managed and controlled in Hong Kong. As well as
operating scheduled airline services, the Company and
its subsidiaries (the “Group”) are 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 1 to the accounts.
Details of principal subsidiaries, their main areas of
operation and particulars of their issued capital, and
details of principal associates are listed on pages 84
and 85.
Accounts
The profit of the Group for the year ended 31st
December 2005 and the state of affairs of the Group
and the Company at that date are set out in the
accounts on pages 46 to 85.
Dividends
We recommend the payment of a final dividend of
HK¢28 per share for the year ended 31st December
2005. Together with the interim dividend of HK¢20 per
share paid on 3rd October 2005, this makes a total
dividend for the year of HK¢48 per share. This
represents a total distribution for the year of
HK$1,623 million. Subject to shareholders’ approval of
the final dividend at the Annual General Meeting on
10th May 2006, payment of the final dividend will be
made on 2nd June 2006 to shareholders registered on
10th May 2006. The shareholders’ register will be
closed from 5th May 2006 to 10th May 2006, 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 50 to 53.
Accounting policies
The principal accounting policies are set out on
pages 41 to 45.
Donations
During the year, the Company and its subsidiaries
made charitable donations amounting to HK$14 million
in direct payments and a further HK$7 million in the
form of discounts on airline travel.
Fixed assets
Movements of fixed assets are shown in note 8 to the
accounts. Details of aircraft acquisitions are set out on
page 5.
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 13 and 18
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 2005, 3,380,632,348 shares were in
issue (31st December 2004: 3,370,215,348 shares).
The Company adopted a share option scheme on 10th
March 1999. During the year, 10,417,000 shares were
issued under the scheme. Details of the scheme can
be found in note 19 to the accounts.