Annual Report 2023

234 2023 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 13 Interest in leasehold land and other property, plant and equipment (continued) (b) Right-of-use assets (continued) The analysis of expense items in relation to leases recognised in profit or loss is as follows: 2023 2022 $’000 $’000 Depreciation charge of right-of-use assets by class of underlying asset: Interest in leasehold land 1,980 1,980 Other properties leased for own use 3,584 4,793 5,564 6,773 Interest on lease liabilities (note 5(b)) 290 92 Expense relating to short-term leases 2,015 1,686 COVID-19-related rent concessions received – (1,176) During the year, additions to right-of-use assets were $2,857,000 (2022: $5,290,000). This amount related to the capitalised lease payments payable under new tenancy agreements. Details of total cash outflow for leases and the maturity analysis of lease liabilities are set out in notes 24(e) and 28, respectively. The Group applied the practical expedient in paragraph 46A of HKFRS 16 to all eligible rent concessions received by the Group in 2022. Further details are disclosed in (ii) below. (i) Interest in leasehold land The Group holds several pieces of land for industrial and commercial buildings for its public transportation and property holding and development business. The Group is the registered owner of these property interests, including the whole or part of undivided share in the underlying land. Lump sum payments were made upfront to acquire these property interests from their previous registered owners or the Government, and there are no ongoing payments to be made under the terms of the land lease, other than payments based on rateable values set by the relevant government authorities. These payments vary from time to time and are payable to the relevant government authorities. (ii) Other properties leased for own use The Group has obtained the right to use other properties as its staff rest kiosks and bus regulators’ offices through tenancy agreements. The leases typically run for an initial period of two to four years. In 2022, the Group received rent concessions in the form of a discount on fixed payments of $1,176,000.