Annual Report 2025

212 Transport International Holdings Limited 2025 Annual Report NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 2 Accounting judgements and estimates (continued) (c) Contingency provision – insurance Estimation of the contingency provision – insurance, as disclosed in note 27, is based on past claim experience and recent claim developments. The provision is assessed based on independent valuations performed by qualified external actuaries. As the ultimate claim amount will be affected by future external events, for example the amount of court awards, changes in standards of liability and the attitude of claimants towards settlement of their claims, actual claims may deviate from these estimations. Any increase or decrease in the provision would affect the Group’s results in future years. (d) Fair value of investment properties and investment property under development Investment properties and investment property under development are stated at fair value. Such fair value is based on the valuations performed by independent firm of professional qualified valuers. Income capitalisation method is used in the valuation of investment properties which is dependent on certain estimates, including fair market rents, appropriate capitalisation rates, and reversionary income potential, where appropriate. The valuations of investment property under development are also dependent upon the estimated costs to complete. Details of the fair value measurement of investment properties and investment property under development are set out in note 14. 3 Revenue The principal activities of the Group are the operation of both franchised and non-franchised public transportation and property holdings and development. The amount of each significant category of revenue is as follows: 2025 2024 $’000 $’000 Fare revenue from franchised public bus services 7,796,166 7,574,160 Revenue from non-franchised transport services 282,813 269,976 Licence fee income 198,088 214,637 Media sales revenue 51,305 52,261 Gross rentals from investment properties 114,353 104,319 8,442,725 8,215,353 All revenue, except gross rentals from investment properties which are subject to HKFRS 16, Leases, falls within the scope of HKFRS 15, Revenue from contracts with customers. The Group’s customer base is diversified and there was no customer with whom transactions have exceeded 10% of the Group’s revenue. Further details regarding the Group’s principal activities are disclosed in note 12 to the consolidated financial statements.