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The Kowloon Motor Bus Holding Limited

Balance Sheet
as at 31 December 1998

                                                         1998        1997
                                            Note      HK$'000     HK$'000
=========================================================================
Interest in subsidiaries                     11     2,206,616   2,034,743
                                                    ---------   ---------
Current assets                               14         1,758         569
Current liabilities                          15      (359,789)   (331,673)
                                                    ---------   ---------
Net current liabilities                              (358,031)   (331,104)
                                                    =========   =========
                                                    1,848,585   1,703,639
                                                    =========   =========
Representing:
Share capital and reserves
Share capital                                16       403,639     403,639
Reserves                                     17     1,444,946   1,300,000
                                                    ---------   ---------
Shareholders' funds                                 1,848,585   1,703,639
                                                    =========   =========
=========================================================================

Approved by the Board of Directors on 15 April 1999


P C Woo
Chairman


John Chan Cho Chak
Managing Director

The notes on pages 65 to 80 form part of these accounts


Source: The Kowloon Motor Bus Holding Limited
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