Annual Report 2019

087 Transport International Holdings Limited 2019 Annual Report Financial Review Individual Business Units Franchised Public Bus Operations The Kowloon Motor Bus Company (1933) Limited (“KMB”) Unit 2019 2018 Revenue HK$ million 7,092.6 7,032.4 Other income HK$ million 299.3 106.1 Total operating expenses HK$ million (6,982.7) (6,595.1) Profit from operations HK$ million 409.2 543.4 Finance costs HK$ million (32.1) (22.5) Profit before taxation HK$ million 377.1 520.9 Income tax HK$ million (62.2) (86.6) Profit after taxation HK$ million 314.9 434.3 Net profit margin 4.4% 6.2% Passenger volume Million passenger trips 1,022.9 1,022.3 Kilometres operated Million km 280.8 281.3 Staff number at year-end Number of staff 12,123 11,544 Fleet size at year-end Number of buses 4,081 4,112 Total assets HK$ million 8,927.7 8,035.8 KMB recorded a profit after taxation of HK$314.9 million for 2019, representing a decrease of HK$119.4 million or 27.5% compared with HK$434.3 million for 2018. KMB’s fare revenue for 2019 was HK$6,866.5 million, an increase of HK$41.2 million or 0.6% compared with HK$6,825.3 million for 2018. The increase was mainly attributable to patronage growth in the first half of 2019 resulting from the enhancement of service on existing routes as well as the introduction of new services but was largely offset by the prolonged social unrest throughout the second half of 2019 which dampened patronage growth. As a result, KMB’s total ridership for 2019 was 1,022.9 million passenger trips (a daily average of 2.80 million passenger trips), which remained on par with 2018. Other income for 2019 included a fuel subsidy of HK$137.2 million from the Government. Total operating expenses for 2019 amounted to HK$6,982.7 million, an increase of HK$387.6 million or 5.9% compared with HK$6,595.1 million for 2018. The increase was mainly attributable to the increase in staff costs of HK$315.9 million as a result of the annual pay rise and the improvement in benefit packages, as well as the increase in depreciation charges of HK$39.2 million resulting from continued investment in new buses with enhanced safety features. Long Win Bus Company Limited (“LWB”) Unit 2019 2018 Revenue HK$ million 642.4 563.1 Other income HK$ million 16.2 2.4 Total operating expenses HK$ million (594.1) (520.4) Profit from operations HK$ million 64.5 45.1 Finance costs HK$ million (0.1) (1.2) Profit before taxation HK$ million 64.4 43.9 Income tax HK$ million (10.7) (7.1) Profit after taxation HK$ million 53.7 36.8 Net profit margin 8.4% 6.5% Passenger volume Million passenger trips 45.8 41.5 Kilometres operated Million km 37.7 37.5 Staff number at year-end Number of staff 784 713 Fleet size at year-end Number of buses 279 262 Total assets HK$ million 655.8 552.2