Annual Report 2024

114 2024 Annual Report Transport International Holdings Limited FINANCIAL REVIEW Other net income increased by HK$44.3 million from HK$68.1 million in 2023 to HK$112.4 million in 2024, which included expected credit losses of HK$171.0 million recognised on certain listed debt securities, compared to HK$260.0 million last year. The breakdown of other net income is set out in note 4 to the financial statements on page 217 of this Annual Report. Total operating expenses for 2024 amounted to HK$7,916.2 million, an increase of HK$177.9 million compared to HK$7,738.3 million for 2023. The increase was mainly due to the increase in staff costs due to pay rises, but partly offset by the decrease in fuel and oil costs as a result of the decrease in fuel price. The Group’s share of profits of associates for 2024 amounted to HK$0.6 million, compared to HK$31.1 million for 2023. Income tax expense for the year amounted to HK$57.0 million (2023: HK$29.4 million). The breakdown of the income tax expense is set out in note 6 to the financial statements on page 219 of this Annual Report. More detailed information in respect of the Group’s individual business units is set out on pages 119 to 124 of this Annual Report. Dividend The Board has recommended an ordinary final dividend of HK$0.50 per share (2023: HK$0.50 per share). As the Board did not declare any interim dividend during 2024 (2023: HK$0.30 per share), total dividends for the year will amount to HK$0.50 per share (2023: HK$0.80 per share), subject to the approval of the shareholders at the Annual General Meeting of the Company to be held on 15 May 2025 or at any adjournment thereof. Key Changes to Financial Position Capital Expenditure As at 31 December 2024, the Group’s investment properties, investment property under development, interest in leasehold land and other property, plant and equipment (comprising buildings, buses and other motor vehicles, buses under construction, tools and others) amounted to HK$15,679.4 million (2023: HK$16,038.7 million). The decrease was mainly due to the reduction in fleet replacement. None of the assets was pledged or charged as at 31 December 2024. The breakdown of the capital expenditure is shown in note 13 to the financial statements on pages 227 to 229 of this Annual Report. Capital Expenditure 2023 2024 2024 HK$140million (15%) HK$355million (39%) HK$38million (4%) HK$386million (42%) 2023 HK$615million (35%) HK$650million (37%) HK$41million (2%) HK$447million (26%) Investment property under development Buses and other motor vehicles Buildings Others Intangible Assets and Goodwill As at 31 December 2024, the Group’s intangible assets and goodwill amounted to HK$529.1 million (2023: HK$529.1 million) and HK$84.1 million (2023: HK$84.1 million) respectively. The intangible assets mainly comprise passenger service licences and transport operating rights of the Group’s non-franchised transport operations.