Annual Report 2023

125 2023 Annual Report Transport International Holdings Limited China Mainland Transport Operations The Group’s China Mainland Transport Operations Division reported a profit after taxation of HK$31.1 million for 2023, compared to the loss after taxation of HK$6.9 million for 2022. As at 31 December 2023, the Group’s total interest in associates within the China Mainland Transport Operations Division amounted to HK$609.1 million (2022: HK$599.8 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 2023 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 2023 (Number of vehicles) 10,461 5,321 Bus passenger volume (Million trips) 335 N/A Bus kilometres travelled (Million km) 286 N/A Staff number at year-end 2023 23,126 1,967 Shenzhen Bus Group Company Limited ( 深圳巴士集團股份有限公司 ) (“SZBG”) SZBG, which commenced operations in January 2005, is a Sino-foreign joint stock company formed by KMB (Shenzhen) Transport Investment Limited ( 九巴 ( 深圳 ) 交通投資有限公司 ), a wholly-owned subsidiary of the Group, and four other China Mainland investors. The Group has invested RMB387.1 million (equivalent to HK$363.9 million at the investment date) in SZBG, representing a stake of 35%. SZBG mainly provides public bus, minibus and taxi services in Shenzhen City, Guangdong Province ( 廣東省深圳 市 ), operating a fleet of over 4,900 buses running on more than 330 routes and over 5,000 taxis. As a result of the cross-boundary reopening and the lifting of COVID-19 pandemic measures in 2023, the patronage of SZBG including its bus and taxi operations increased by 18.0% to 460.0 million in 2023 as compared to 389.9 million in 2022. Beijing Beiqi Kowloon Taxi Company Limited ( 北京北汽九龍出租汽車股份有限公司 ) (“BBKT”) BBKT, a Sino-foreign joint stock company, was established in Beijing in March 2003. BBKT’s shareholders include KMB (Beijing) Taxi Investment Limited ( 九巴 ( 北京 ) 出租汽車投資有限公司 ), a wholly-owned subsidiary of the Group, and four other China Mainland investors. The Group has invested RMB80.0 million (equivalent to HK$75.5 million at the investment date) in BBKT, representing an equity interest of 31.38%. BBKT operated both taxi hire and car rental businesses in Beijing until April 2013, when, to sharpen its focus on the business opportunities provided by the booming but challenging car rental market, BBKT spun off its car rental business to another Sino-foreign joint stock company, namely Beijing Beiqi First Company Limited ( 北京北汽福 斯特股份有限公司 ), which has the same shareholding structure as BBKT. As at 31 December 2023, BBKT had a fleet of over 3,500 taxis and around 2,000 employees. Beijing Beiqi First Company Limited ( 北京北汽福斯特股份有限公司 ) (“BBF”) Established in April 2013 as a Sino-foreign joint stock company with the same shareholding structure as BBKT, BBF operates the car rental business formerly undertaken by BBKT. Being ISO 9001:2008 certified for its Quality Management Systems in the provision of car rental services, BBF is well placed to take advantage of the business opportunities afforded by business commuters as well as by the wide variety of events, conferences and exhibitions that are held in the capital. As at 31 December 2023, BBF had over 1,000 vehicles available for charter mainly in Beijing and Tianjin.