Annual Report 2021

216 Transport International Holdings Limited 2021 Annual Report NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 23 Bank deposits and cash (a) Bank deposits and cash comprise: 2021 2020 $’000 $’000 Cash at bank and on hand 149,493 359,391 Bank deposits 1,088,043 1,934,374 1,237,536 2,293,765 Less: restricted bank deposits (note 23(b)) (411,749) (350,365) Bank deposits and cash in the consolidated statement of financial position 825,787 1,943,400 Less: bank deposits with original maturities of over three months – (810,307) Cash and cash equivalents in the consolidated cash flow statement 825,787 1,133,093 (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 2021, the related restricted bank deposits amounted to $4,077,000 and $407,672,000 (2020: $7,443,000 and $342,922,000) respectively. (c) Reconciliation of profit before taxation to cash generated from operations: 2021 2020 Note $’000 $’000 Profit before taxation 272,093 1,722,156 Adjustments for: Depreciation 5(d) 1,018,576 993,213 Finance costs 5(b) 14,350 26,933 Dividend income from unlisted equity securities 4 (38,539) (31,000) Interest income (61,166) (76,624) Net loss on derecognition of investments in debt securities 4 3,163 213 Share of profits of associates (19,635) (6,525) Share of profit of joint venture (8,252) (35) Gain on disposal of a subsidiary 35 – (1,495,548) Net gain on disposal of other property, plant and equipment 4 (9,233) (8,833) Equity-settled share-based payment expenses 5(a) 4,108 600 Receipt of government grant for the disposal of other property, plant and equipment (1,085) (306) COVID-19-related rent concessions received 13(b) (2,338) (1,808) Effect of foreign exchange rate (7,092) 5,352 Operating profit before changes in working capital 1,164,950 1,127,788 Changes in working capital: Decrease in employee benefit assets 53,786 43,508 Increase in spare parts (8,121) (16,301) Decrease/(increase) in accounts receivable 59,902 (18,863) Decrease/(increase) in deposits and prepayments 498 (668) Increase in accounts payable and accruals 50,066 115,938 Decrease in contingency provision – insurance (36,649) (62,638) Decrease in provision for long service payments (130) (1,505) Cash generated from operations 1,284,302 1,187,259