Annual Report 2021

13 2021 Annual Report Transport International Holdings Limited The Group’s non-franchised Transport Division, with Sun Bus Limited (“Sun Bus”) as its flagship company, recorded a profit after taxation of HK$8.8 million, representing a decrease of HK$32.7 million compared to 2020. Our Mainland Transport Operations Division continued to record positive overall results in 2021. Good Corporate Governance to Achieve Sustainable Development The Group has continued to apply the principles of accountability, people-orientation, and integrity when dealing with business, with an aim to drive growth and create sustainable long-term value for all stakeholders. TIH expects to widely incorporate Environmental, Social and Governance (“ESG”) concepts and values into its development strategies and operating philosophy, leveraging the Group’s role as a responsible corporate citizen, when addressing environmental and social challenges. Members of the Board and myself fully understand the critical part the Board plays in implementing ESG management policies. Our corporate governance structure is regularly reviewed to keep up with evolving regulations, so that a thorough internal audit and monitoring system is in place to prevent operating risks brought by social change and climate-related issues. The Group has appointed an ESG Task Force to put forward strategies and measures of sustainable development formulated by the Board. The Group actively seeks opportunities to integrate the concept of sustainable development into its financing activities. KMB and Bank of China (Hong Kong) Limited signed a 5-year HK$500 million green loan in 2021, the first green finance arrangement of KMB. The loan will be earmarked for financing ESG related initiatives. Promoting Zero Emission by Developing Electric Buses To cope with frequent and unusual extreme weather caused by global climate change, the Mainland and Hong Kong have set targets for achieving carbon neutrality in 2060 and before 2050 respectively. As the largest franchised public bus service operator in Hong Kong, the Group actively supports the National 14 th Five-Year Plan and policies of the HKSAR Government. We have drawn up a blueprint for carbon and emission reduction, which sets a long-term goal to upgrade our entire fleet to new energy buses by 2050 and employs six key Environmental Performance Indicators to guide the Group towards zero emission. Our electric bus plan is carried out in full swing, with 16 electric single-deck buses and over 50 electric double- deckers purchased, among others. Together with the electric single-deck buses currently in operation, over 80 electric buses will be in service in 2022. TIH will purchase an additional 500 electric buses in the next five years, accounting for one-eighth of the current bus fleet of over 4,000 buses maintained by KMB and LWB. To cope with the development of electric buses, charging facilities have been installed at four major bus depots, about ten satellite depots and some bus termini of KMB to meet the electricity demand. KMB is also building two new electric bus depots in Tai Po and Tuen Mun with completion expected in three to four years, moving one step forward towards carbon neutrality. Committed to be a franchised bus company boasting the largest solar power generation system in Hong Kong, the Group aspires to lead the city’s public transport industry to move into a new green era. About 22,000 solar panels are gradually installed at bus depots and bus termini, and on bus stop poles and bus roofs, which are expected to generate more than ten million kWh of renewable energy and reduce 5,400 tonnes of carbon emission per year in Hong Kong. Establishing KMB Academy to Reinforce Safety Culture Safety has always been the Group’s top priority. We are committed to setting new standards of professionalism and safety for Hong Kong’s bus industry by combining technology with training. To this end, KMB has set up the KMB Academy with the motto “Mission Safety • Act with Self-discipline”. The Academy emphasises the pivotal role of safety and discipline in the industry and continues to foster a culture of professionalism in the Bus Captain Training School and the Technical Training School. Both the “Certificate in Bus Maintenance” and the “Certificate in Public Bus (Franchised) Driving” offered by the KMB Academy are accredited by the Hong Kong Council for Accreditation of Academic and Vocational Qualifications at level two and level three respectively under the qualification framework in Hong Kong. KMB believes the courses will attract talents who are keen to serve the public in a safe and professional manner.