Annual Report 2022

221 2022 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 23 Bank deposits and cash (a) Bank deposits and cash comprise: 2022 2021 $’000 $’000 Cash at banks and on hand 69,773 149,493 Bank deposits 2,172,710 1,088,043 2,242,483 1,237,536 Less: restricted bank deposits (note 23(b)) (442,891) (411,749) Bank deposits and cash in the consolidated statement of financial position 1,799,592 825,787 Less: bank deposits with original maturities of over three months (442,796) – Cash and cash equivalents in the consolidated cash flow statement 1,356,796 825,787 (b) The Group is required to maintain the balance of passenger reward (note 5(d)) under the revised MBOF approach and the balance of toll exemption fund (note 5(d)) in designated bank accounts. As at 31 December 2022, the related restricted bank deposits amounted to $Nil and $442,891,000 (2021: $4,077,000 and $407,672,000) respectively. (c) Reconciliation of profit before taxation to cash generated from operations: 2022 2021 Note $’000 $’000 Profit before taxation 55,861 272,093 Adjustments for: Depreciation 5(d) 1,123,468 1,018,576 Finance costs 5(b) 37,610 14,350 Dividend income from equity investment 4 (64,861) (38,539) Interest income (80,950) (61,166) Net (gain)/loss on derecognition of financial assets measured at FVOCI (recycling) 4 (1,161) 3,163 Share of losses/(profits) of associates 6,909 (19,635) Share of profit of joint venture (8,249) (8,252) Net gain on disposal of other property, plant and equipment 4 (5,453) (9,233) Equity-settled share-based payment expenses 5(a) 1,194 4,108 Receipt of government grant for the disposal of other property, plant and equipment (3,409) (1,085) Expected credit loss on other financial assets 32(a) 92,000 – COVID-19-related rent concessions received 13(b) (1,176) (2,338) Effect of foreign exchange rate (9,428) (7,092) Operating profit before changes in working capital 1,142,355 1,164,950 Changes in working capital: Decrease in employee benefit assets 22,662 53,786 Decrease/(increase) in spare parts 7,918 (8,121) (Increase)/decrease in accounts receivable (307,960) 59,902 (Increase)/decrease in deposits and prepayments (5,133) 498 (Decrease)/increase in accounts payable and accruals (16,934) 50,066 Decrease in contingency provision – insurance (34,345) (36,649) Increase/(decrease) in provision for long service payments 582 (130) Cash generated from operations 809,145 1,284,302