Annual Report 2024

246 2024 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 2024, the related restricted bank deposits amounted to $Nil and $375,520,000 (2023: $Nil and $447,551,000) respectively. (c) Reconciliation of profit before taxation to cash generated from operations: 2024 2023 Note $’000 $’000 Profit before taxation 244,302 431,116 Adjustments for: Change in fair value of investment properties and investment property under development 14 78,200 (287,380) Depreciation 5(d) 1,196,676 1,133,103 Finance costs 5(b) 98,343 110,064 Dividend income from equity investments 4 (81,541) (91,454) Interest income (86,724) (113,389) Net loss on derecognition of investments in other financial assets measured at FVOCI (recycling) 4 3,098 7 Share of profits of associates (637) (31,138) Share of profits of joint venture (8,552) (8,110) Net gain on disposal of other property, plant and equipment 4 (4,162) (3,606) Equity-settled share-based payment expenses 5(a) 3,454 6,248 Receipt of government grant for the disposal of other property, plant and equipment (14,064) (7,748) Expected credit losses on other financial assets 33(a) 171,000 260,000 Effect of foreign exchange rate 4,641 (4,110) Operating profit before changes in working capital 1,604,034 1,393,603 Changes in working capital: Increase in employee benefit assets (12,926) (18,088) Decrease/(increase) in spare parts 3,559 (14,191) Decrease in accounts receivable 20,566 3,045 Increase in deposits and prepayments (1,365) (11,473) (Decrease)/increase in accounts payable and accruals (80,961) 67,108 Increase/(decrease) in contingency provision – insurance 3,792 (2,767) Increase in provision for long service payments 4,132 3,370 Cash generated from operations 1,540,831 1,420,607