Annual Report 2023

116 2023 Annual Report Transport International Holdings Limited FINANCIAL REVIEW Other income decreased from HK$705.8 million in 2022 to HK$68.1 million in 2023. The decrease was mainly due to the decrease in government subsidies of HK$517.8 million under various support schemes rolled out by the Government to provide financial support as a result of the outbreak of the fifth wave of COVID-19 to the public transport sector in 2022, and the expected credit losses on certain listed debt securities. The breakdown of other income is set out in note 4 to the financial statements on page 221 of this Annual Report. Total operating expenses for 2023 amounted to HK$7,738.3 million, an increase of HK$463.9 million compared to HK$7,274.4 million (restated) for 2022. The increase was mainly due to the increases in fuel costs, staff costs and depreciation resulting from high international fuel prices, pay rises and fleet replacement, respectively. The Group’s share of profits of associates for 2023 amounted to HK$31.1 million, compared to the share of losses of associates of HK$6.9 million for 2022. Income tax expense for the year amounted to HK$29.5 million (2022: restated income tax credit of HK$98.0 million). The breakdown of the income tax (expense)/credit is set out in note 6 to the financial statements on page 224 of this Annual Report. More detailed information in respect of the Group’s individual business units is set out on pages 121 to 125 of this Annual Report. Dividend The Board has recommended an ordinary final dividend of HK$0.50 per share (2022: HK$0.50 per share). Together with the interim dividend of HK$0.30 per share, total dividend for the year will be HK$0.80 per share (2022: HK$0.50 per share), subject to the approval of the shareholders at the Annual General Meeting of the Company to be held on 16 May 2024 or at any adjournment thereof. The Company’s intention is to maintain stable returns to shareholders. Key Changes to Financial Position Capital Expenditure As at 31 December 2023, 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$16,038.7 million (2022 (restated): HK$15,136.6 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 2023. The breakdown of the capital expenditure is shown in note 13 to the financial statements on pages 232 to 235 of this Annual Report. Capital Expenditure 2022 2023 2023 HK$615 million (35%) HK$650 million (37%) HK$41 million (2%) HK$447 million (26%) 2022 HK$621 million (41%) HK$520 million (34%) HK$23 million (1%) HK$367 million (24%) Investment property under development Buses and other motor vehicles Buildings Others