Annual Report 2019

084 Transport International Holdings Limited 2019 Annual Report Financial Review Net Cash/Net Borrowing and Liquidity Ratio As at 31 December 2019, the Group’s net borrowing (i.e. total borrowings less cash and deposits at banks) amounted to HK$1,250.7 million (2018: HK$1,444.0 million) with a liquidity ratio (the ratio of current assets to current liabilities) of 1.9 (2018: 1.6). The details of the Group’s net cash/net borrowing position by currency are set out as follows: Currency Cash and deposits at bank in foreign currency Cash and deposits at bank Bank loans Net cash/(Net borrowing) million HK$ million HK$ million HK$ million At 31 December 2019 Hong Kong dollars 1,136.9 (2,706.6) (1,569.7) Renminbi 2.6 2.9 – 2.9 United States dollars 26.9 209.6 – 209.6 British Pounds Sterling 9.8 100.7 – 100.7 Other currencies 5.8 – 5.8 Total 1,455.9 (2,706.6) (1,250.7) At 31 December 2018 Hong Kong dollars 905.6 (2,625.0) (1,719.4) Renminbi 1.8 2.0 – 2.0 United States dollars 25.4 198.7 – 198.7 British Pounds Sterling 7.3 73.1 – 73.1 Other currencies 1.6 – 1.6 Total 1,181.0 (2,625.0) (1,444.0) Finance Costs and Interest Cover The finance costs incurred by the Group for the year ended 31 December 2019 were HK$32.2 million, an increase of HK$8.5 million compared with HK$23.7 million for 2018. The increase was mainly due to the increase in average bank borrowings of the Group as well as the rise in the average interest rate from 2.19% per annum for 2018 to 2.74% per annum for 2019. For the year ended 31 December 2019, the Group’s interest income exceeded the total finance costs by HK$55.2 million (2018: HK$57.9 million). 12,500 10,000 7,500 5,000 2,500 0 2015 2016 2017 2018 2019 HK$ Million Shareholders’ Fund at 31 December Staff Costs and Staff per Bus (Franchised public bus operations) Staff costs Number of staff per bus 2015 5,000 4,000 3,000 2,000 1,000 0 5 4 3 2 1 0 2016 2017 2018 2019 Staff per bus HK$ Million