Annual Report 2021

94 Transport International Holdings Limited 2021 Annual Report FINANCIAL REVIEW Total operating expenses for 2021 amounted to HK$7,197.4 million, an increase of HK$3.9 million or 0.1% compared to HK$7,193.5 million for 2020. The increase was mainly due to the increase in fuel cost as a result of the rise in international fuel prices. The Group’s share of profits of associates for 2021 amounted to HK$19.6 million, an increase of HK$13.1 million or 201.5% compared to HK$6.5 million for 2020. Income tax expense for the year amounted to HK$27.1 million (2020: income tax credit of HK$182.0 million). The breakdown of the income tax expense/credit is set out in note 6 to the financial statements on page 190 of this Annual Report. More detailed information in respect of the Group’s individual business units is set out on pages 99 to 104 of this Annual Report. Dividend The Board has recommended an ordinary final dividend of HK$0.50 per share (2020: HK$0.50 per share). Subject to the approval of the shareholders at the Annual General Meeting of the Company to be held on 19 May 2022 or at any adjournment thereof, the total dividend for the year amounted to HK$0.50 per share (2020: HK$0.50 per share). The Company’s intention is to maintain stable returns to shareholders. Key Changes to Financial Position Capital Expenditure As at 31 December 2021, the Group’s investment properties, investment property under development, interest in leasehold land and other property, plant and equipment (comprising buildings, buses and other motor vehicles, buses under construction, tools and others) amounted to HK$11,976.1 million (2020: HK$10,953.6 million). The increase was mainly due to the development of the Kwun Tong Site and purchase of new buses by KMB and LWB for fleet replacement during the year. None of the assets was pledged or charged as at 31 December 2021. The breakdown of the capital expenditure is shown in note 13 to the financial statements on pages 198 to 203 of this Annual Report. Capital Expenditure 2020 2021 2021 HK$839million (41%) HK$719million (35%) HK$19million (1%) HK$467million (23%) 2020 HK$474million (26%) HK$1,038million (58%) HK$13million (1%) HK$270million (15%) Investment property under development Buses and other motor vehicles Buildings Others Intangible Assets and Goodwill As at 31 December 2021, the Group’s intangible assets and goodwill amounted to HK$419.7 million (2020: HK$365.0 million) and HK$84.1 million (2020: HK$84.1 million) respectively. The intangible assets mainly represent passenger service licences and transport operating rights of the Group’s non-franchised transport operations.