Annual Report 2023

238 2023 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 14 Investment properties and investment property under development (continued) (c) The Group leased out investment properties under operating leases. The leases typically run for an initial period from one to eight years, with an option to renew the leases after that date, at which time all terms are renegotiated. Certain leases include contingent rentals, being the excess of a percentage of the monthly revenue generated by the lessees over the monthly minimum lease rentals. Undiscounted lease payments under non-cancellable operating leases in place at the reporting date will be receivable by the Group in future periods as follows: 2023 2022 $’000 $’000 Within 1 year 76,421 30,305 After 1 year but within 2 years 69,546 21,036 After 2 years but within 3 years 51,926 17,394 After 3 years but within 4 years 46,870 6,265 After 4 years but within 5 years 36,588 3,090 After 5 years 39,490 1,759 320,841 79,849 15 Intangible assets Passenger service licences and transport operating rights $’000 Cost: At 1 January 2022 419,729 Additions 109,361 At 31 December 2022, 1 January 2023 and 31 December 2023 529,090 Accumulated amortisation: At 1 January 2022, 31 December 2022, 1 January 2023 and 31 December 2023 – Net book value: At 31 December 2023 529,090 At 31 December 2022 529,090 In respect of those passenger service licences and transport operating rights of the Group that are regarded as having indefinite useful lives, there is no foreseeable limit to the period over which these assets are expected to generate cash flows for the Group. Intangible assets that are regarded as having indefinite useful lives have been allocated to the cash-generating unit of non- franchised transport operations for the purpose of impairment testing. Details of impairment testing are set out in note 16 to the financial statements.