Annual Report 2023

119 2023 Annual Report Transport International Holdings Limited 10,000 6,000 8,000 2,000 4,000 0 5 3 4 1 2 0 2019 2020 2021 2022 2023 Net Cash Flow For 2023, there was a net decrease of HK$860.5 million (2022: net increase of HK$530.4 million) in cash and cash equivalents. The sources are set out below: 2023 2022 HK$ million HK$ million Net cash generated from/(used in): • Operating activities 1,366.8 849.6 • Investing activities (1,714.7) (2,041.4) • Financing activities (512.6) 1,722.2 Net cash (outflow)/inflow (860.5) 530.4 The net cash generated from operating activities amounted to HK$1,366.8 million, primarily attributable to the franchised public bus operations, which accounted for HK$1,159.6 million (2022: HK$617.6 million). On the other hand, the net cash used in investing activities was primarily driven by the payment of capital expenditure totaling HK$1,475.0 million. This expenditure mainly consisted of the purchase of new buses and development costs associated with The Millennity (2022: HK$1,709.4 million). Lastly, the net cash used in financing activities was primarily a result of the repayment of bank loans during 2023. Details of the Group’s cash flow movement for the year ended 31 December 2023 are set out in the consolidated cash flow statement on pages 196 and 197 of this Annual Report. Treasury Risk Management The Group’s activities are exposed to various financial risks, including foreign currency, interest rate, fuel price, credit and liquidity risks. The Group’s exposure to these risks as well as its risk management policies and practices are described below: Foreign Currency Risk The Group is exposed to foreign currency risk primarily through purchases of new buses and motor vehicle components from overseas, investments in financial assets measured at FVOCI (recycling) and deposits placed at banks that are denominated in a foreign currency. The currencies giving rise to this risk are primarily British Pounds Sterling (GBP) and United States dollars (USD). In respect of the exposure in GBP used for bus purchases, the Group’s treasury team will enter into forward foreign exchange contracts in a strategic manner when appropriate. As at 31 December 2023, the Group had outstanding GBP forward contracts totalling GBP5.0 million (2022: GBP5.0 million), which had maturities of less than one year after the end of the reporting period. Staff Costs and Staff per Bus (Franchised public bus operations) Staff costs Number of staff per bus Shareholders’ Fund at 31 December 15,000 9,000 12,000 3,000 6,000 0 2019 2020 2021 2022 2023 HK$ million HK$ million Staff per bus (Restated) (Restated) (Restated)