Annual Report 2022

Transport International Holdings Limited 2022 Annual Report 110 FINANCIAL REVIEW LCK Commercial Properties Limited (“LCKCP”) LCKCP, a wholly-owned subsidiary of the Group, is the owner of “Manhattan Mid-town”, the commercial complex of Manhattan Hill. The 50,000 square feet shopping mall has provided Manhattan Hill residents and other shoppers with high quality retail facilities since its opening in March 2009. As at 31 December 2022, the entire lettable area of the shopping mall was leased out, generating a stream of recurring rental income for the Group. As at 31 December 2022, the carrying value of the shopping mall (classified as investment property in the consolidated statement of financial position), stated at cost less accumulated depreciation, amounted to HK$69.1 million (2021: HK$71.0 million). TM Properties Investment Limited (“TMPI”) TMPI is jointly owned by TM Properties Holdings Limited (“TMPH”), an indirect wholly-owned subsidiary of the Group, and Mega Odyssey Limited (“MOL”), an indirect wholly-owned subsidiary of SHKP subsequent to the disposal of TMPH’s 50% equity interest in TMPI to MOL in 2020. TMPI, the owner of the property at Tuen Mun Town Lot No. 80 in the New Territories, has become a 50%-owned joint venture of the Group. TMPI owns an industrial property which is currently designated for industrial use or godown purposes or both. TMPI has applied to the relevant authorities for a change of use from the existing industrial use to office, shop and services uses, subject to the grant of relevant government approvals. As at 31 December 2022, the entire lettable area of the property has been leased out to generate rental income for the Group. China Mainland Transport Operations The Group’s China Mainland Transport Operations Division reported a loss after taxation of HK$6.9 million for 2022, representing an unfavourable variance of HK$26.5 million compared with the profit after taxation of HK$19.6 million for 2021. As at 31 December 2022, the Group’s total interest in associates within the China Mainland Transport Operations Division amounted to HK$599.8 million (2021: HK$681.7 million). Such investments are mainly related to the operation of public transport services in Shenzhen, as well as taxi and car rental services in Beijing. Summary of Investments in China Mainland Transport Operations as at 31 December 2022 Shenzhen Beijing Nature of business Bus and taxi hire services Taxi and car rental services Form of business structure Sino-foreign joint stock company Sino-foreign joint stock company Operation commenced January 2005 April 2003 The Group’s investment cost (RMB million) 387 80 The Group’s effective interest 35% 31.38% Fleet size at year-end 2022 (Number of vehicles) 11,145 4,012 Bus passenger volume (Million trips) 292 N/A Bus kilometres travelled (Million km) 303 N/A Staff number at year-end 2022 24,413 2,319