Annual Report 2020

102 Transport International Holdings Limited 2020 Annual Report Financial Review Long Win Bus Company Limited (“LWB”) Unit 2020 2019 Revenue HK$ million 364.1 642.4 Other income HK$ million 90.6 16.2 Total operating expenses HK$ million (470.9) (594.1) (Loss)/profit from operations HK$ million (16.2) 64.5 Finance costs HK$ million (0.1) (0.1) (Loss)/profit before taxation HK$ million (16.3) 64.4 Income tax credit/(expense) HK$ million 16.9 (10.7) Profit after taxation HK$ million 0.6 53.7 Net profit margin 0.2% 8.4% Passenger volume Million passenger trips 28.2 45.8 Kilometres operated Million km 28.2 37.7 Staff number at year-end Number of staff 739 784 Fleet size at year-end Number of buses 241 279 Total assets HK$ million 798.7 655.8 The profit after taxation of LWB for 2020 was HK$0.6 million, representing a decrease of HK$53.1 million or 98.9% compared with HK$53.7 million for 2019. If government subsidies of HK$74.7 million (2019: HK$13.0 million) were excluded, LWB would record a loss after taxation of HK$74.1 million, representing a decline of HK$114.8 million compared with a profit after taxation of HK$40.7 million for 2019. LWB’s fare revenue for 2020 was HK$346.1 million, a decrease of HK$292.0 million or 45.8% compared with HK$638.1 million for 2019. The decline was mainly due to decrease in ridership as a result of the outbreak of COVID-19 which cause the significant decrease in transport demand, in particular for the A-route network, resulting from various anti-epidemic measures implemented by the Government at several boundary control points including the airport as well as the Hong Kong Port of the Hong Kong-Zhuhai- Macao Bridge. LWB recorded a total ridership of 28.2 million passenger trips (a daily average of 77,000 passenger trips) for 2020, as compared with 45.8 million passenger trips (a daily average of 125,500 passenger trips) for 2019. Other income for 2020 included subsidies in respect of actual expenditures incurred on fuel, wages, as well as regular repair and maintenance and insurance premium, amounting to HK$74.7 million from the Government (2019: HK$13.0 million). Total operating expenses for 2020 amounted to HK$470.9 million, a decrease of HK$123.2 million or 20.7% compared with HK$594.1 million for 2019. The decrease in operating expenses was primarily due to the decrease in fuel costs as a result of reduction in international fuel prices and fuel consumption, and the decrease in other operating expenses through service reductions and cost control measures. Non-franchised Transport Operations The Group’s Non-franchised Transport Operations Division reported a profit after taxation of HK$41.5 million for 2020, representing an increase of HK$1.7 million or 4.3% compared with HK$39.8 million for 2019. A review of the operations of the principal business units in this Division is set out as follows: Sun Bus Holdings Limited and its Subsidiaries (the “SBH Group”) The SBH Group is a leading non-franchised bus operator in Hong Kong. With Sun Bus Limited as its flagship company, the SBH Group provides customised transport services to a wide range of customers, including large residential estates, shopping malls, major employers, travel agents and schools, as well as the general public through chartered hire services.