Annual Report 2022

205 2022 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 13 Investment properties, investment property under development, interest in leasehold land and other property, plant and equipment (continued) (b) Right-of-use assets (continued) The analysis of expense items in relation to leases recognised in profit or loss is as follows: 2022 2021 $’000 $’000 Depreciation charge of right-of-use assets by class of underlying asset: Interest in leasehold land 1,980 2,012 Other properties leased for own use 4,793 4,666 6,773 6,678 Interest on lease liabilities (note 5(b)) 92 94 Expense relating to short-term leases 1,686 1,892 COVID-19-related rent concessions received (1,176) (2,338) During the year, additions to right-of-use assets were $5,290,000 (2021: $6,042,000). This amount related to the capitalised lease payments payable under new tenancy agreements. Details of total cash outflow for leases and the maturity analysis of lease liabilities are set out in notes 23(e) and 27, respectively. The Group early adopted the Amendment to HKFRS 16, Leases, Covid-19-related rent concessions beyond 30 June 2022 in the financial statements for the year ended 31 December 2021, and applies the practical expedient to all eligible rent concessions received by the Group. Further details are disclosed in (ii) below. (i) Interest in leasehold land The Group holds several pieces of land for industrial and commercial buildings for its public transportation and property holding and development business. The Group is the registered owner of these property interests, including the whole or part of undivided share in the underlying land. Lump sum payments were made upfront to acquire these property interests from their previous registered owners or the Government, and there are no ongoing payments to be made under the terms of the land lease, other than payments based on rateable values set by the relevant government authorities. These payments vary from time to time and are payable to the relevant government authorities. (ii) Other properties leased for own use The Group has obtained the right to use other properties as its staff rest kiosks and bus regulators’ offices through tenancy agreements. The leases typically run for an initial period of two to three years. During 2022, the Group received rent concessions in the form of a discount on fixed payments of $1,176,000 (2021: $2,338,000).