Annual Report 2021

100 Transport International Holdings Limited 2021 Annual Report FINANCIAL REVIEW Long Win Bus Company Limited (“LWB”) Unit 2021 2020 Revenue HK$ million 332.2 364.1 Other income HK$ million 53.8 90.6 Total operating expenses HK$ million (426.4) (470.9) Loss from operations HK$ million (40.4) (16.2) Finance costs HK$ million (1.7) (0.1) Loss before taxation HK$ million (42.1) (16.3) Income tax credit HK$ million 7.1 16.9 (Loss)/profit after taxation HK$ million (35.0) 0.6 Net (loss)/profit margin (10.5)% 0.2% Passenger volume Million passenger trips 28.9 28.2 Kilometres operated Million km 26.4 28.2 Staff number at year-end Number of staff 733 814 Fleet size at year-end Number of buses 256 241 Total assets HK$ million 714.6 798.7 The loss after taxation of LWB for 2021 was HK$35.0 million, representing an unfavourable variance of HK$35.6 million compared with profit after taxation of HK$0.6 million for 2020. LWB’s fare revenue for 2021 was HK$320.4 million, a decrease of HK$25.7 million or 7.4% compared with HK$346.1 million for 2020. The decline was mainly due to the decrease in average fare as the impact of COVID-19 leading to global travel restrictions began to take effect from February 2020 but was partly offset by the increase in ridership. LWB recorded a total ridership of 28.9 million passenger trips (a daily average of 79,000 passenger trips) for 2021, as compared with 28.2 million passenger trips (a daily average of 77,000 passenger trips) for 2020. Total operating expenses for 2021 amounted to HK$426.4 million, a decrease of HK$44.5 million or 9.4% compared with HK$470.9 million for 2020. The decrease in operating expenses was largely due to the decrease in toll charges as a result of the reduction in number of trips resulting from service reductions as well as bus route diversion arrangements following the commissioning of the Tuen Mun-Chek Lap Kok Tunnel with effect from 20 June 2021. Non-franchised Transport Operations The Group’s Non-franchised Transport Operations Division reported a profit after taxation of HK$8.8 million for 2021, representing a decrease of HK$32.7 million or 78.8% compared with HK$41.5 million for 2020 (which included government subsidies of HK$43.3 million). A review of the operations of the principal business units in this Division is set out as follows: