Annual Report 2023

253 2023 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 24 Bank deposits and cash (continued) (b) The Group is required to maintain the balance of passenger reward (note 5(d)) under the revised MBOF approach and the balance of toll exemption fund (note 5(d)) in designated bank accounts. As at 31 December 2023, the related restricted bank deposits amounted to $ Nil and $447,551,000 (2022: $Nil and $442,891,000) respectively. (c) Reconciliation of profit before taxation to cash generated from operations: 2023 2022 Note $’000 $’000 (restated) Profit before taxation 431,116 450,997 Adjustments for: Change in fair value of investment properties and investment property under development 14 (287,380) (448,682) Depreciation 5(d) 1,133,103 1,116,694 Finance costs 5(b) 110,064 37,610 Dividend income from equity investments 4 (91,454) (64,861) Interest income (113,389) (80,950) Net loss/(gain) on derecognition of investments in other financial assets measured at FVOCI (recycling) 4 7 (1,161) Share of (profits)/losses of associates (31,138) 6,909 Share of profits of joint venture (8,110) (8,249) Net gain on disposal of other property, plant and equipment 4 (3,606) (5,453) Equity-settled share-based payment expenses 5(a) 6,248 1,194 Receipt of government grant for the disposal of other property, plant and equipment (7,748) (3,409) Expected credit loss on other financial assets 33(a) 260,000 92,000 COVID-19-related rent concessions received 13(b) – (1,176) Effect of foreign exchange rate (4,110) (9,428) Operating profit before changes in working capital 1,393,603 1,082,035 Changes in working capital: (Increase)/decrease in employee benefit assets (18,088) 22,662 (Increase)/decrease in spare parts (14,191) 7,918 Decrease/(increase) in accounts receivable 3,045 (307,960) Increase in deposits and prepayments (11,473) (5,133) Increase/(decrease) in accounts payable and accruals 67,108 (16,934) Decrease in contingency provision – insurance (2,767) (34,345) Increase in provision for long service payments 3,370 60,902 Cash generated from operations 1,420,607 809,145