Annual Report 2020

2020 Annual Report Transport International Holdings Limited 15 elderly patients. When a patient goes missing, his or her family members can call the hotline for help. KMB staff members will then publish a tracing notice on App1933, with our frontline operational staff notified at the same time. The Donation of Used and Retired Bus Programme, under which retired buses are retrofitted for educational purposes, has been well received by the education sector. These retrofitted buses have not only inspired students to learn but also strengthened our connection with the communities. As of the end of 2020, a total of 34 schools benefited from the programme. Our dedication to environmental protection is a long-term commitment. Under the current subsidy scheme from the Environment Protection Department, 22 electric buses and supercapacitor electric buses from KMB and LWB are on trial. Given that the technology of electric buses had demonstrated higher maturity, the Board decided to make a private purchase of 15 electric single- deck buses in 2020. These buses are expected to be delivered during the second half of 2021. The company has also participated in another subsidy scheme from the government to test the feasibility of operating electric double-deck buses in Hong Kong. Under the pandemic, KMB’s volunteer club FRIENDS OF KMB (“FRN”) remained active in delivering various social services, including offering masks to senior citizens and students and promoting recycling activities. Last year, FRN members contributed more than 340,000 accumulated hours of voluntary service. Challenges and Opportunities Affected by the volatile pandemic situation at home and abroad, the travel demand of both local residents and incoming tourists remained low. Coupled with a continuous downward economic trend, we believe the chance is slim to none that the patronage and income will return to the pre- COVID-19 levels in the short term. Besides, severe traffic congestion has affected the operational efficiency of the land transportation industry. All these have presented the bus industry with profound operational challenges. Despite the pessimistic economic outlook, the Group made a timely response by adopting multiple approaches to save cost and resources. We will continue to deploy our buses in a flexible manner to strive to ensure the sustainability of our business. We believe the opening of the Tuen Mun-Chek Lap Kok Tunnel and the optimisation of the transport network of Tuen Mun as a whole, coupled with the successive soon-to-be-completed residential areas in North District and Kowloon East, will bring new opportunities to the Group’s future development. Last year, the Group initiated a redevelopment plan for its property in Tuen Mun with a view to generating long-term sustainable income by leasing office and retail space. The plan was in line with the Group’s business strategy of seeking diversification to create recurring income sources. The superstructure work at the How Ming Street site in downtown Kwun Tong is expected to complete in 2022, which will provide a steady return for our shareholders. Acknowledgment 2020 was a year full of challenges for Hong Kong. The success of the Group in serving the public in a professional manner while doing its part in Hong Kong’s anti-pandemic campaign hinged on our staff members’ strong commitment to providing passengers with safe and quality bus services. I would like to express my heartfelt gratitude to the Board of Directors, every staff member of the Group, bus suppliers, and all our passengers for their continuous support. Norman LEUNG Nai Pang Chairman 18 March 2021