Cathay Pacific 2006 Annual Report Download - page 30

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We submit our report and the audited accounts for the
year ended 31st December 2006 which are on pages
45 to 89.
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 88
and 89.
Accounts
The profit of the Group for the year ended 31st
December 2006 and the state of affairs of the Group
and the Company at that date are set out in the
accounts on pages 50 to 89.
Dividends
We recommend the payment of a final dividend of
HK¢32 per share for the year ended 31st December
2006. Together with the interim dividend of HK¢20
per share paid on 3rd October 2006 and the special
interim dividend of HK¢32 per share paid on 20th
November 2006, this makes a total dividend for the
year of HK¢84 per share. This represents a total
distribution for the year of HK$3,304 million. Subject
to shareholders’ approval of the final dividend at the
Annual General Meeting on 9th May 2007, payment
of the final dividend will be made on 1st June 2007 to
shareholders registered at the close of business on
the record date, 9th May 2007.
The register of members will be closed from 4th
May 2007 to 9th May 2007, both dates inclusive,
during which period no transfer of shares will be
effected. In order to qualify for the entitlement of the
final dividend, all transfer forms accompanied by the
relevant share certificates must be lodged with the
Company’s share registrars, Computershare Hong
Kong Investor Services Limited, 17th Floor, Hopewell
Centre, 183 Queen’s Road East, Hong Kong, for
registration not later than 4:30 p.m. on Thursday,
3rd May 2007.
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 54 to 57.
Accounting policies
The principal accounting policies are set out on pages
45 to 49.
Donations
During the year, the Company and its subsidiaries
made charitable donations amounting to HK$11 million
in direct payments, a further HK$10 million in the form
of discounts on airline travel and 64,700,000 shares of
CNAC worth HK$181 million.
Fixed assets
Movements of fixed assets are shown in note 8 to the
accounts. Details of aircraft acquisitions are set out on
page 8.
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.
Cathay Pacific Airways Limited Annual Report 2006
28
Directors’ Report