Annual Report 2025

242 Transport International Holdings Limited 2025 Annual Report NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 24 Bank deposits and cash (continued) (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 2025, the related restricted bank deposits amounted to $Nil and $264,525,000 (2024: $Nil and $375,520,000) respectively. (c) Reconciliation of profit before taxation to cash generated from operations: 2025 2024 Note $’000 $’000 Profit before taxation 493,262 244,302 Adjustments for: Change in fair value of investment properties and investment property under development 14 141,827 78,200 Depreciation 5(d) 1,183,432 1,196,676 Finance costs 5(b) 61,321 98,343 Dividend income from equity investments 4 (75,179) (81,541) Interest income (70,668) (86,724) Net loss on derecognition of financial assets measured at FVOCI (recycling) 4 14 3,098 Share of profits of associates (31) (637) Share of profit of joint venture (8,801) (8,552) Net gain on disposal of other property, plant and equipment 4 (1,451) (4,162) Equity-settled share-based payment expenses 5(a) 741 3,454 Receipt of government grant for the disposal of other property, plant and equipment (2,800) (14,064) Expected credit loss on other financial assets 33(a) 86,500 171,000 Effect of foreign exchange rate (9,378) 4,641 Operating profit before changes in working capital 1,798,789 1,604,034 Changes in working capital: Increase in employee benefit assets (33,596) (12,926) (Increase)/decrease in spare parts (12,627) 3,559 (Increase)/decrease in accounts receivable (13,533) 20,566 Increase in deposits and prepayments (21,845) (1,365) Decrease in accounts payable and accruals (63,437) (80,961) (Decrease)/increase in contingency provision – insurance (1,907) 3,792 Increase in provision for long service payments 3,559 4,132 Cash generated from operations 1,655,403 1,540,831