Cathay Pacific 2008 Annual Report Download - page 36

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Directors’ Report
We submit our report and the audited accounts for the
year ended 31st December 2008 which are on pages
46 to 93.
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 of principal subsidiaries, their main areas of
operation and particulars of their issued capital, and
details of principal associates are listed on pages 92
and 93.
Accounts
The loss of the Group for the year ended 31st
December 2008 and the state of affairs of the Group
and the Company at that date are set out in the
accounts on pages 50 to 93.
Dividends
We recommend no final dividends for the year ended
31st December 2008. Together with the interim
dividend of HK¢3 per share paid on 2nd October 2008,
this makes a total dividend for the year of HK¢3 per
share. This represents a total distribution for the year
of HK$118 million.
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 55.
Accounting policies
The principal accounting policies are set out on pages
46 to 49.
Donations
During the year, the Company and its subsidiaries
made charitable donations amounting to HK$21 million
in direct payments and a further HK$7 million in the
form of discounts on airline travel.
Fixed assets
Movements of fixed assets are shown in note 11 to
the accounts. Details of aircraft acquisitions are set out
on page 11.
Bank and other borrowings
The net bank loans, overdrafts and other borrowings,
including obligations under finance leases, of the
Group and the Company are shown in notes 16 and 21
to the accounts.
Share capital
During the year under review, the Company purchased
9,390,000 shares on The Stock Exchange of Hong
Kong Limited (the “Stock Exchange”). These purchases
were made for the benefit of the Company and
shareholders taking into account relevant factors and
circumstances at the time. All the shares purchased
were cancelled. Details of shares acquired by month
are as follows:
Number of
shares
purchased
Highest
price paid
per share
HK$
Lowest
price paid
per share
HK$
Total
cost
HK$M
March
2008 9,390,000 16.66 15.24 149
The Company adopted a share option scheme on 10th
March 1999. During the year, 2,111,000 shares were
issued under the scheme. Details of the scheme can
be found in note 22 to the accounts.
At 31st December 2008, 3,932,746,072 shares were in
issue (31st December 2007: 3,940,025,072 shares).
Details of the movement of share capital can be found
in note 22 to the accounts.
34 Cathay Pacific Airways Limited Annual Report 2008