Annual Report 2022

2022 Annual Report Transport International Holdings Limited 105 Cash Flow and Liquidity Risk The Group closely monitors its liquidity and financial resources to ensure that a healthy financial position is maintained such that cash inflows from operating activities together with undrawn banking facilities are sufficient to meet the requirements for loan repayments, daily operational needs, capital expenditure and dividend payments as well as potential business expansion and development. Major operating companies of the Group arrange for their own financing to meet specific requirements. The Group’s other subsidiaries are mainly financed by the Company’s capital base. The Group reviews its strategy from time to time to ensure that cost-efficient funding is available to cater for the unique operating environment of each subsidiary. Employees and Remuneration Policies Running a transport operation is a labour intensive business, and staff costs accounted for about 55% (2021: 56%) of the total operating expenses of the Group in 2022. The Group closely monitors its headcount and staff remuneration in line with productivity and the prevailing market trends. The Group’s total remuneration excluding retirement costs and equity-settled share-based payment expenses for 2022 amounted to HK$3,805.6 million (2021: HK$3,832.1 million). As at 31 December 2022, the Group employed over 13,000 staff (2021: over 13,000 staff). Individual Business Units Franchised Public Bus Operations The Kowloon Motor Bus Company (1933) Limited (“KMB”) Unit 2022 2021 Revenue HK$ million 6,035.4 6,613.5 Other income HK$ million 572.6 132.0 Total operating expenses HK$ million (6,669.4) (6,610.2) (Loss)/profit from operations HK$ million (61.4) 135.3 Finance costs HK$ million (34.0) (12.7) (Loss)/profit before taxation HK$ million (95.4) 122.6 Income tax credit/(expense) HK$ million 90.7 (21.2) (Loss)/profit after taxation HK$ million (4.7) 101.4 Net (loss)/profit margin (0.1)% 1.5% Passenger volume Million passenger trips 805.4 891.3 Kilometres operated Million km 253.1 268.1 Staff number at year-end Number of staff 12,114 12,336 Fleet size at year-end Number of buses 4,036 4,013 Total assets HK$ million 10,607.0 10,219.0 KMB recorded a loss after taxation of HK$4.7 million for 2022, representing an unfavourable variance of HK$106.1 million compared with the profit after taxation of HK$101.4 million for 2021.