Annual Report 2022

Transport International Holdings Limited 2022 Annual Report 100 FINANCIAL REVIEW Total operating expenses for 2022 amounted to HK$7,220.9 million, an increase of HK$23.5 million compared to HK$7,197.4 million for 2021. The increase was mainly due to increases in depreciation and other operating expenses as a result of bus replacement and inflation. The Group’s share of losses of associates for 2022 amounted to HK$6.9 million, an unfavourable variance of HK$26.5 million compared to the share of profits of associates of HK$19.6 million for 2021. Income tax credit for the year amounted to HK$87.8 million (2021: income tax expense of HK$27.1 million). The breakdown of the income tax credit/(expense) is set out in note 6 to the financial statements on page 195 of this Annual Report. More detailed information in respect of the Group’s individual business units is set out on pages 105 to 111 of this Annual Report. Dividend The Board has recommended an ordinary final dividend of HK$0.50 per share (2021: HK$0.50 per share). Subject to the approval of the shareholders at the Annual General Meeting of the Company to be held on 18 May 2023 or at any adjournment thereof, the total dividend for the year will be HK$0.50 per share (2021: 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 2022, 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$12,382.8 million (2021: HK$11,976.1 million). The increase was mainly due to the development of The Millennity and purchase of new buses by the Group for fleet replacement during the year. None of the assets was pledged or charged as at 31 December 2022. The breakdown of the capital expenditure is shown in note 13 to the financial statements on pages 203 to 208 of this Annual Report. Capital Expenditure 2021 2022 2022 HK$621 million (41%) HK$520 million (34%) HK$23 million (1%) HK$367 million (24%) 2021 HK$839 million (41%) HK$719 million (35%) HK$19 million (1%) HK$467 million (23%) Investment property under development Buses and other motor vehicles Buildings Others Intangible Assets and Goodwill As at 31 December 2022, the Group’s intangible assets and goodwill amounted to HK$529.1 million (2021: HK$419.7 million) and HK$84.1 million (2021: HK$84.1 million) respectively. The intangible assets mainly comprise passenger service licences and transport operating rights of the Group’s non-franchised transport operations.