Annual Report 2019

083 Transport International Holdings Limited 2019 Annual Report Financial Review Bank Loans As at 31 December 2019, bank loans, all unsecured, amounted to HK$2,706.6 million (2018: HK$2,625.0 million). The maturity profile of the bank loans of the Group as at 31 December 2019 and 31 December 2018 is shown in the chart below: Debt Maturity Profile at 31 December 2019 HK$1,312 million (48%) HK$1,395 million (52%) 2018 HK$2,625 million (100%) 2018 2019 Repayable between 1 and 2 years Repayable between 2 and 5 years As at 31 December 2019, the Group had undrawn committed banking facilities totalling HK$2,280.0 million (2018: HK$2,455.0 million). Capital Commitments The Group’s capital commitments as at 31 December 2019 amounted to HK$3,409.9 million (2018: HK$677.9 million). These commitments were mainly in respect of the development of the Kwun Tong site and the purchase of buses and other motor vehicles, which are to be financed by bank borrowings and from the Group’s internal resources. A summary of the capital commitments is set out below: HK$ million 2019 2018 Development of the Kwun Tong Site 2,186.6 144.7 Purchase of buses and other motor vehicles 1,173.6 444.3 Purchase of other properties, plant and equipment 49.7 88.9 Total 3,409.9 677.9 As at 31 December 2019, the Group had 514 (2018: 225) new buses on order for delivery in 2020. Funding and Financing Financial Liquidity and Resources The Group closely monitors its liquidity requirement and financial resources to ensure that a healthy financial position is maintained such that cash inflows from operating activities together with the Group’s reserves of cash and liquid assets and undrawn committed banking facilities are sufficient to meet the requirements for loan repayments, daily operational needs and capital expenditure as well as potential business expansion and development. The Group’s operations are mainly financed by shareholders’ funds and bank loans. In general, major operating companies of the Group arrange their own financing to meet their operational and specific needs. The Group’s other subsidiaries are mainly financed by the Company’s capital base. The Group reviews its funding policy from time to time to ensure that cost-efficient and flexible funding is available to cater for the unique operating environment of each subsidiary.