Annual Report 2021

99 2021 Annual Report Transport International Holdings Limited Employees and Remuneration Policies Running a transport operation is a labour intensive business, and staff costs accounted for about 56% (2020: 60%) of the total operating expenses of the Group in 2021. The Group closely monitors its headcount and staff remuneration in line with productivity and the prevailing market trends. The Group’s total remuneration excluding retirement costs and equity- settled share-based payment expenses for 2021 amounted to HK$3,832.1 million (2020: HK$4,119.9 million), representing a decrease of 7.0%. As at 31 December 2021, the Group employed over 13,000 staff (2020: over 13,000 staff). Individual Business Units Franchised Public Bus Operations The Kowloon Motor Bus Company (1933) Limited (“KMB”) Unit 2021 2020 Revenue HK$ million 6,613.5 5,559.9 Other income HK$ million 132.0 1,033.1 Total operating expenses HK$ million (6,610.2) (6,541.7) Profit from operations HK$ million 135.3 51.3 Finance costs HK$ million (12.7) (26.8) Profit before taxation HK$ million 122.6 24.5 Income tax (expense)/credit HK$ million (21.2) 178.8 Profit after taxation HK$ million 101.4 203.3 Net profit margin 1.5% 3.7% Passenger volume Million passenger trips 891.3 777.5 Kilometres operated Million km 268.1 258.6 Staff number at year-end Number of staff 12,336 12,768 Fleet size at year-end Number of buses 4,013 4,009 Total assets HK$ million 10,219.0 9,678.1 KMB recorded a profit after taxation of HK$101.4 million for 2021, representing a decrease of HK$101.9 million or 50.1% compared with HK$203.3 million for 2020 (which included government subsidies of HK$895.5 million). When excluding such subsidies, KMB would record a year-on-year improvement of HK$793.6 million for 2021. Fare revenue for 2021 was HK$6,289.7 million, an increase of HK$981.3 million or 18.5% compared with HK$5,308.4 million for 2020. The increase was mainly attributable to the rebound in patronage along with the fare increase which took place on 4 April 2021. KMB’s total ridership increased by 14.6% to 891.3 million passenger trips (a daily average of 2.44 million passenger trips) as compared with 777.5 million passenger trips (a daily average of 2.12 million passenger trips) for 2020. Total operating expenses for 2021 amounted to HK$6,610.2 million, an increase of HK$68.5 million or 1.0% compared with HK$6,541.7 million for 2020. The increase was mainly attributable to the increase in fuel costs as a result of the rise in international fuel prices.