Annual Report 2025

112 Transport International Holdings Limited 2025 Annual Report FINANCIAL REVIEW Operating activities continued to be the primary source of cash inflow, with net cash generated increasing to HK$1,646.3 million in 2025 from HK$1,515.3 million in 2024. This growth was mainly driven by the franchised public bus operations, which contributed HK$1,432.5 million (2024: HK$1,344.1 million), reflecting improved operational performance. The net cash used in investing activities narrowed to HK$622.4 million from HK$824.6 million in the prior year, primarily due to lower capital expenditure. Net cash used in financing activities widened to HK$1,017.1 million from HK$544.1 million in 2024, reflecting higher repayments of bank loans during the year. The increase in financing outflows, combined with the reduction in investing outflows, contributed to the overall moderation in net cash inflow compared with the previous year. Details of the Group’s cash flow movement for the year ended 31 December 2025 are set out in the consolidated cash flow statement on pages 192 to 193 of this Annual Report. Treasury Risk Management The Group’s activities are exposed to various financial risks, including foreign currency, interest rate, fuel price, credit and liquidity risks. The Group’s exposure to these risks as well as its risk management policies and practices are described below: Foreign Currency Risk The Group is exposed to foreign currency risk primarily through purchases of new buses and motor vehicle components from overseas, investments in financial assets measured at FVOCI (recycling) and deposits placed at banks that are denominated in a foreign currency. The currencies giving rise to this risk are primarily British Pounds Sterling (GBP) and United States dollars (USD). In respect of the exposure in GBP used for bus purchases, the Group’s treasury team will enter into forward foreign exchange contracts in a strategic manner when appropriate. As at 31 December 2025, the Group had outstanding GBP forward contracts totalling GBP0.6 million (2024: GBP3.0 million), which had maturities of less than one year after the end of the reporting period. Shareholders’ Fund at 31 December HK$ million (Restated) (Note) (Restated) (Note) 15,000 9,000 12,000 3,000 6,000 0 2021 2022 2023 2024 2025 Note: The relevant comparative amounts in 2021 and 2022 have been restated to reflect the change in accounting policies in respect to (i) the measurement of investment properties and investment property under development, and (ii) the abolition of the MPF-LSP offsetting mechanism. Dividends per Share HK$ 1.0 0.6 0.8 0.2 0.4 0 2021 2022 2023 2024 2025