Annual Report 2019

081 Transport International Holdings Limited 2019 Annual Report Financial Review The revenue and underlying profit generated by the Group’s five Divisions for the year ended 31 December 2019 are shown below: Revenue Profit before taxation HK$ million 2019 2018 2019 2018 Franchised Public Bus Operations Division 7,732.5 7,593.1 473.1 588.6 Non-franchised Transport Operations Division 312.7 346.4 47.6 58.2 Property Holdings and Development Division 67.0 69.8 65.5 64.6 Financial Services Division – – 76.8 84.7 China Mainland Transport Operations Division – – 21.5 23.8 8,112.2 8,009.3 684.5 819.9 Finance costs (32.2) (23.7) Unallocated net operating income 47.0 41.1 Profit before taxation 699.3 837.3 Income tax (94.0) (117.2) Profit for the year 605.3 720.1 Segment information on the Group’s main businesses is set out in note 12 to the financial statements on pages 181 to 184 of this Annual Report. Key Changes to the Group’s Revenue, Other Income and Operating Expenses Revenue for 2019 amounted to HK$8,112.2 million, an increase of HK$102.9 million or 1.3% compared with HK$8,009.3 million for 2018. The increase was mainly due to the increase in revenue from the Group’s franchised public bus operations of HK$139.4 million, primarily as a result of patronage growth. However, such positive factor was partly offset by the decreases in (i) revenue from the Group’s non-franchised transport operations division by HK$33.7 million; and (ii) rental income arising from the Group’s investment properties by HK$2.8 million. Other income increased by HK$193.5 million from HK$217.6 million in 2018 to HK$411.1 million in 2019. The increase was mainly due to government subsidies amounting to HK$152.3 million to cope with the operating pressure arising from the prolonged social unrest throughout the second half of 2019. The breakdown of other income is set out in note 4 to the financial statements on page 173 of this Annual Report. 20,000 15,000 10,000 5,000 0 2015 2016 2017 2018 2019 HK$ Million Total Assets at 31 December Franchised public bus operations Non-franchised transport operations Media sales business Gross rentals from investment properties 10,000 8,000 6,000 4,000 2,000 0 2015 2016 (Restated) 2017 2018 2019 HK$ Million Group Revenue