Annual Report 2024

229 2024 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: 2024 2023 $’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 3,606 3,584 5,586 5,564 Interest on lease liabilities (note 5(b)) 317 290 Expense relating to short-term leases 2,242 2,015 During the year, additions to right-of-use assets were $6,378,000 (2023: $2,857,000). This amount related to the capitalised lease payments payable under new or renewed 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. (i) Interest in leasehold land The Group holds several pieces of land for industrial buildings for its public transportation 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 three years. (c) In 2024, subsidies totalling $81,224,000 (2023: $27,763,000) were received or receivable from the HKSAR Government for retrofitting buses with appropriate safety devices and for installation of facilities at bus stops and terminus. The purposes of the subsidies are to enhance the operational safety of franchised buses and to expedite the installation of facilities for the convenience of passengers respectively. The subsidies received or receivable have been deducted from the carrying amount of the assets directly in accordance with the accounting policy set out in note 1(k).