Annual Report 2020

Management Discussion and Analysis BUSINESS REVIEW The Group’s core business is the provision of franchised public bus services in Hong Kong by means of its flagship subsidiary, The Kowloon Motor Bus Company (1933) Limited (“KMB”), and Long Win Bus Company Limited (“LWB”). The Group also offers non-franchised tailor-made transport services for a wide range of customers in Hong Kong and a 24-hour cross-boundary shuttle bus service serving commuters and leisure travellers between Lok Ma Chau and Huanggang through Sun Bus Holdings Limited and its subsidiaries (the “SBH Group”) and New Hong Kong Bus Company Limited (“NHKB”) respectively. Holding a 35% interest in a Shenzhen joint venture and a 31.38% interest in two Beijing joint ventures, the Group operates public bus, taxi and car rental services in Shenzhen and Beijing respectively. The Group also holds a portfolio of properties for investment and development purposes. The business review of each business operation is set out on pages 20 to 39 of this Annual Report. The prospects of the Group’s businesses are discussed in the Chairman’s Letter on pages 12 to 15 and in the Managing Director’s Message on pages 16 to 17 of this Annual Report. Hong Kong Franchised Public Bus Operations The Kowloon Motor Bus Company (1933) Limited and Long Win Bus Company Limited are major franchised public bus operators in Hong Kong providing safe, reliable, high quality, environment-friendly, value- for-money bus services in Kowloon, the New Territories, Hong Kong Island and Lantau Island. Property Holdings and Development The Group has a portfolio of investment properties which provides steady rental income for the Group. China Mainland Transport Operations The Group has investments in transport service operators in Shenzhen and Beijing as part of its strategy of leveraging transport-related business opportunities in China Mainland that offer a reasonable return. Hong Kong Non-franchised Transport Operations The Group’s non-franchised transport operations offer transport services to a wide range of customers, including business commuters, tourists, shoppers, students and residents of large residential estates, as well as providing chartered hire services and cross-boundary shuttle bus services.