Annual Report 2023

122 2023 Annual Report Transport International Holdings Limited FINANCIAL REVIEW Long Win Bus Company Limited (“LWB”) Unit 2023 2022 (Restated) Revenue HK$ million 530.5 323.8 Other income HK$ million 1.7 46.9 Total operating expenses HK$ million (496.5) (413.0) Profit/(loss) from operations HK$ million 35.7 (42.3) Finance costs HK$ million (8.1) (3.6) Profit/(loss) before taxation HK$ million 27.6 (45.9) Income tax (expense)/credit HK$ million (4.5) 15.1 Profit/(loss) after taxation HK$ million 23.1 (30.8) Net profit/(loss) margin 4.4% (9.5)% Passenger volume Million passenger trips 42.9 28.6 Kilometres operated Million km 29.1 25.4 Staff number at year-end Number of staff 757 723 Fleet size at year-end Number of buses 285 265 Total assets HK$ million 649.9 668.6 The profit after taxation of LWB for 2023 was HK$23.1 million, compared to the restated loss after taxation of HK$30.8 million for 2022. LWB’s fare revenue for 2023 was HK$526.7 million, an increase of HK$210.2 million or 66.4% compared with HK$316.5 million for 2022. The increase was mainly due to the significant increase in bus patronage resulting from the relaxation of travel restrictions, particularly with respect to visitor arrivals and departures and the fare increase with effect from 18 June 2023. LWB recorded a total ridership of 42.9 million passenger trips (a daily average of 118,000 passenger trips) for 2023, as compared with 28.6 million passenger trips (a daily average of 78,000 passenger trips) for 2022. Total operating expenses for 2023 amounted to HK$496.5 million, an increase of HK$83.5 million or 20.2% compared with HK$413.0 million (restated) for 2022. The increase in operating expenses was largely due to the rise in staff costs, fuel costs and toll charges as a result from the increasing service levels in response to the rebound in bus patronage. Non-franchised Transport Operations The Group’s Non-franchised Transport Operations Division reported a profit after taxation of HK$13.9 million for 2023, compared to the restated profit after taxation of HK$1.4 million for 2022. A review of the operations of the principal business units in this Division is set out as follows: Sun Bus Holdings Limited and its Subsidiaries (the “SBH Group”) The SBH Group is one of the leading non-franchised bus operators in Hong Kong, providing customised, premium, safe, reliable, and value-for-money transport services to a wide range of customers, including large residential estates, shopping malls, major employers, travel agents and schools, as well as the general public through chartered hire services. The revenue of the SBH Group for 2023 increased by 7.4% compared with 2022. The increase was mainly due to the increase in local business and the resumption of cross-boundary services. Total operating expenses for 2023 decreased by 4.1% compared with 2022 as management implemented various cost control measures to streamline its business.