At the 2023 Annual General Meeting of Transport International Holdings Limited (“TIH”) held today (18 May 2023), the Group’s Chairman, Dr. Norman Leung Nai Pang, reported the financial results for 2022. For the year ended 31 December 2022, the Group’s profit attributable to equity shareholders was HK$143.6 million, a decrease of HK$101.4 million compared to 2021. The decline was mainly due to a drop in the number of citizens and tourists travelling caused by the fifth wave of COVID-19 epidemic in Hong Kong.
The Board has recommended an ordinary final dividend of HK$0.50 per share to be paid on 30 June 2023. The total dividend for the year will be HK$0.50 per share. In addition, the Group will provide shareholders with a scrip dividend option for the final dividend. For details, please refer to the circular announced by the Group.
In 2022, The Kowloon Motor Bus Company (1933) Limited (“KMB”) recorded a loss after taxation of HK$4.7 million, representing a decrease of HK$106.1 million compared to 2021. As for Long Win Bus Company Limited (“LWB”), the loss after taxation for 2022 was HK$27.8 million, representing a favourable variance of HK$7.2 million compared to 2021. Since strict border control measures had been eased in late September 2022, visitor arrivals and departures showed improvement. However, the patronage of LWB were still recorded a very significant decline.
The Group’s Non-franchised Transport Operations Division, with Sun Bus Limited as its flagship company, recorded a profit after taxation of HK$3.5 million, representing a decrease of HK$5.3 million compared to 2021.
In order to encourage members of public to use bus services, the Group has been actively allocating resources to enhance its bus network and provide affordable and convenient journeys for passengers. KMB operates 31 Bus-Bus Interchanges (“BBIs”) across Hong Kong. To elevate passengers’ interchange experience, KMB launched a large-scale BBI renovation project by adding clearer signages and providing route information of BBIs in App1933. To tie in with the buildout of new development areas, KMB has repeatedly strengthened its services in Queen’s Hill in Fanling, Ching Tin Estate and Wo Tin Estate in Tuen Mun and Anderson Road in Kwun Tong as well as introducing new routes in Yuen Long, Tin Shui Wai and Tseung Kwan O. As Hong Kong is embracing the new 5G era, KMB launched the 5G upgrading project, in which the bus fleet will be providing free 5G Wi-Fi service.
TIH dedicates itself to promoting and incorporating the value of Environmental, Social and Governance (“ESG”) management into its daily operations of every department. KMB entered into 5-year sustainability development performance-linked loan facilities totalling HK$1.6 billion with two banks, demonstrating KMB’s determination in promoting sustainable development in Hong Kong.
TIH actively echoes the development and makes complementary efforts to tie in with the National and Hong Kong SAR Governments’ policies. We have drawn up a clear blueprint for development in emission reduction and energy conservation by fully upgrading our entire fleet to new energy buses by 2040 to achieve zero emissions. The batch of 16 single-deck electric buses currently deployed has been operating smoothly. The first two double-deck electric buses arrived in Hong Kong and over 50 electric double-deckers will be in service by 2023. Meanwhile, KMB is installing charging facilities at depots and some bus termini. KMB will also build two new electric bus depots in Tai Po and Tuen Mun to provide 850 charging and parking spaces, with completion expected within these few years.
The Group is applying renewable energy widely. KMB is one of the enterprises in Hong Kong that owns the greatest number of solar panels, which are installing 30,000 solar panels at bus depots and bus termini and on bus stop poles and bus roofs.
Safety has always been the Group’s top priority. KMB established the KMB Academy (“the Academy”) providing professional training accredited under the Qualification Framework in Hong Kong for franchised bus maintenance personnel and bus captains, and offering short-term career-oriented courses and workshops with tertiary institutions to let teenagers know more about the bus industry. The Bus Maintenance Course provided by the Academy has been approved by the Electrical and Mechanical Services Department earlier. Graduates can apply for registered mechanics as long as they accumulate three years of work experience.
Looking to the future, amid an uncertain global economic outlook, volatile international oil prices, expansion of the local railway network, and changing public travel patterns, the bus industry is presented with profound challenges. Following the relaxation of anti-pandemic measures and the reopening of borders, TIH expects the travelling demands of local citizens and visitors to bounce back, with bus patronage and income gradually recovering to pre-COVID levels.
The development of the Guangdong-Hong Kong-Macao Greater Bay Area (“GBA”) accords with the key strategic planning of the national development blueprint. Seizing the opportunity to integrate into the Greater Bay Area to foster economic development and strengthen transport connections, TIH has signed a memorandum of strategic cooperation with the Shenzhen Bus Group to increase synergies and cooperation. Plans are formulated to promote intermodal transportation projects and facilitate cross-boundary payments. The Group will grasp the opportunities brought by the GBA development and the cooperation with the Shenzhen Bus Group, and actively respond to the future development plans of the Northern Metropolis and other new development areas. We believe there are exciting opportunities ahead for the Group.
The Millennity, our project on How Ming Street, Kwun Tong in the prime location of East Kowloon, comprises two buildings, each providing 20 storeys of grade-A offices, which has been pre-rented to a number of international brands and multinational corporations, and a base comprising a 10-storey megamall. The preparations for the official opening of the megamall are well underway. In addition, the Group is planning to make office and retail space leasing the core of our redevelopment property in Tuen Mun to provide a steady return for our shareholders, as well as long-term and continuous income for the Group.
Dr. Leung concluded, “The year 2023 marks the 90th anniversary of KMB. In its 90 years of growth journey in tandem with Hong Kong’s society, KMB has always been maintaining its original aspiration of serving the public. Hong Kong was hit by the fifth wave of the epidemic. The Group’s success in serving the public in a consistently professional manner hinged on the dedication and commitment of its staff. KMB will make unremitting efforts and continue to move forward in the future. I would like to express my heartfelt gratitude to the Board of Directors, every staff member of the Group, bus suppliers, all our passengers and shareholders for their continued support.”
