Annual Report 2020

2020 Annual Report Transport International Holdings Limited 105 TM Properties Investment Limited (“TMPI”) TMPI is jointly owned by TM Properties Holdings Limited (“TMPH”), an indirect wholly-owned subsidiary of the Group, and Mega Odyssey Limited (“Mega Odyssey”), an indirect wholly-owned subsidiary of SHKP subsequent to the disposal of TMPH’s 50% equity interest in TMPI to Mega Odyssey which completed on 29 December 2020. Upon completion, TMPI becomes a 50%-owned joint venture of the Group. TMPI is the owner of an industrial property at 1 Kin Fung Circuit, Tuen Mun. The property, comprising a single-storey high ceiling structure and a three-storey workshop building with a total gross floor area of about 105,364 square feet, has been leased out to generate rental income for the Group since March 2011. China Mainland Transport Operations The Group’s China Mainland Transport Operations Division reported a profit after taxation of HK$6.5 million for 2020, representing a decrease of HK$15.0 million or 69.8% compared with HK$21.5 million for 2019. As at 31 December 2020, the Group’s total interests in associates within the China Mainland Transport Operations Division amounted to HK$656.6 million (2019: HK$611.9 million). Such investments are mainly related to the operation of public transport services in Shenzhen, and taxi and car rental services in Beijing. Summary of Investments in China Mainland Transport Operations as at 31 December 2020 Shenzhen Beijing Nature of business Bus and taxi hire services Taxi and car rental services Form of business structure Sino-foreign joint stock company Sino-foreign joint stock company Operation commenced January 2005 April 2003 The Group’s investment cost (RMB million) 387 80 The Group’s effective interest 35% 31.38% Fleet size at year-end 2020 (Number of vehicles) 11,681 4,947 Bus passenger volume (Million trips) 375 N/A Bus kilometres travelled (Million km) 336 N/A Staff number at year-end 2020 26,047 3,135 Shenzhen Bus Group Company Limited ( 深圳巴士集團股份有限公司 ) (“SZBG”) SZBG, which commenced operations in January 2005, is a Sino-foreign joint stock company formed by KMB (Shenzhen) Transport Investment Limited ( 九巴（深圳）交通投資有限公司 ), a wholly-owned subsidiary of the Group, and four other China Mainland investors. The Group has invested RMB387.1 million (equivalent to HK$363.9 million at the investment date) in SZBG, representing a stake of 35%. SZBG mainly provides public bus, minibus and taxi services in Shenzhen City, Guangdong Province ( 廣東省深圳 市 ), operating a fleet of over 5,000 buses running on around 300 routes and over 5,000 taxis. Due to the outbreak of COVID-19 in early 2020, the number of patronage of SZBG including its bus and taxi operation decreased by 31.7% to 487.0 million in 2020 as compared to 713.3 million in 2019. The number of patronage has been improving gradually since July 2020 as a result of the effective containment of COVID-19.