釋放中巴價值

20 August 2020

Dear the Directors of China Motor Bus Company, Limited,

I was deeply saddened to hear about the death of Dr. Ngan Kit-keung.

I am grateful to Dr. Ngan’s profound contribution to CMB – and Hong Kong – over six decades.

Under Dr. Ngan’s directorship, CMB has powered our economy, by making low-cost transport available to the Hong Kong public. I still remember the days when I took CMB buses to go to school. The redevelopment of bus depots into world-class property projects was also fruitful to all shareholders.

Please accept our condolences.

In sympathy,
Kin Chan
Argyle Street Management Limited

Dear Directors of China Motor Bus Company, Limited (“CMB”),

We note the CMB’s announcement on 22 July, 2020 regarding the revaluation losses of CMB’s investment properties.

The announcement correctly identifies COVID-19 as the primary cause of the revaluation losses. We believe that COVID-19 has far-reaching impact on how people work: the demand for office space cities will drastically (and perhaps irreversibly) decline, as white-collar workers have proved that they can work from home as efficiently as they do at their offices.

We thus recommend CMB to:
• Sell its entire portfolio of office buildings (alternatively, the company itself) to a strategic investor
• Expedite the redevelopment of the Chai Wan headquarters
• Pay excess cash as dividends

We remain keen to join the board of CMB to assist the Chairman to maximize value for all shareholders.

Yours sincerely,
Kin Chan
Argyle Street Management Limited

Dear Members of the Board of China Motor Bus Company, Limited (“CMB”),

We note that the board has resolved to pay a special dividend of HK$ 19 per share, shortly after the Dr. Henry Ngan became Chairman.  This is CMB’s largest dividend ever.

It has also not escaped our attention, that the board has recently undertaken to clean up legacy provisions in the articles of associations of CMB.

History will remember Dr. Henry Ngan as the hero of minority shareholders and the paragon of good corporate governance.

We trust that the new Chairman will continue to rationalize CMB’s capital structure, by disposing of CMB’s other assets, paying the proceeds as dividends and putting in place a long-term succession plan.

We remain keen to join the board of CMB to assist the Chairman to maximize value for all shareholders.

Yours sincerely,

Kin Chan

Argyle Street Management Limited