Annual Report 2022

2022 Annual Report Transport International Holdings Limited 103 10,000 6,000 8,000 2,000 4,000 0 5 3 4 1 2 0 2018 2019 2020 2021 2022 Net Cash Flow For 2022, there was a net increase of HK$530.4 million (2021: net decrease of HK$310.4 million) in cash and cash equivalents. The sources are set out below: 2022 2021 HK$ million HK$ million Net cash generated from/(used in): • Operating activities 849.6 1,319.9 • Investing activities (2,041.4) (1,581.4) • Financing activities 1,722.2 (48.9) Net cash inflow/(outflow) 530.4 (310.4) The main components of the net cash inflow of HK$530.4 million (2021: net cash outflow of HK$310.4 million) included: (i) net cash generated from operating activities of the franchised public bus operations of HK$617.6 million (2021: HK$1,116.1 million); (ii) payment of capital expenditure of HK$1,709.4 million (2021: HK$2,093.1 million); (iii) increase of HK$442.8 million (2021: decrease of HK$810.3 million) in bank deposits with original maturities of over three months; (iv) proceeds received on the maturity of debt securities of HK$599.1 million (2021: HK$436.3 million); (v) purchase of other financial assets of HK$439.0 million (2021: HK$767.3 million); (vi) increase of HK$1,835.0 million in bank loans (2021: HK$55.0 million); and (vii) payment of dividends of HK$116.9 million (2021: HK$109.4 million). Details of the Group’s cash flow movement for the year ended 31 December 2022 are set out in the consolidated cash flow statement on page 174 of this Annual Report. Treasury Risk Management The Group’s activities are exposed to various financial risks, including foreign currency, interest rate, fuel price, credit and liquidity risks. The Group’s exposure to these risks as well as its risk management policies and practices are described below: Foreign Currency Risk The Group is exposed to foreign currency risk primarily through purchases of new buses and motor vehicle components from overseas, investments in financial assets measured at FVOCI (recycling) and deposits placed at banks that are denominated in a foreign currency. The currencies giving rise to this risk are primarily British Pounds Sterling (GBP) and United States dollars (USD). In respect of its exposure in GBP used for bus purchases, the Group’s treasury team will enter into forward foreign exchange contracts in a strategic manner when appropriate. As at 31 December 2022, the Group had outstanding GBP forward contracts totalling GBP5.0 million (2021: GBP7.1 million), which had maturities of less than one year after the end of the reporting period. Staff Costs and Staff per Bus (Franchised public bus operations) Staff costs Number of staff per bus Shareholders’ Fund at 31 December 15,000 9,000 12,000 3,000 6,000 0 2018 2019 2020 2021 2022 HK$ million HK$ million Staff per bus