At the 2024 Annual General Meeting of Transport International Holdings Limited (“TIH”) held today (16 May 2024), the Group’s Chairman, Dr. Norman Leung Nai Pang, reported the financial results for 2023. For the year ended 31 December 2023, the Group’s profit attributable to equity shareholders was HK$401.7 million (2022 (restated): HK$549.0 million). Excluding the effect of fair value changes on investment properties and investment property under development, the profit attributable to equity shareholders of the Company for 2023 and 2022 would have been HK$114.3 million and HK$100.4 million respectively.
The Group’s net profit in 2023 was primarily contributed from its investment income from equity investments and rental income from its investment properties. Nevertheless, these profits were partly offset by expected credit losses on certain listed debt securities.
The Board of Directors has proposed an ordinary final dividend of HK$0.50 per share for 2023. The dividend will be payable on 30 June 2024. Together with the interim dividend of HK$0.30 per share, the total dividend for the year will amount to HK$0.80 per share, whereas the total dividend amounted to HK$0.50 per share last year. 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 2023, The Kowloon Motor Bus Company (1933) Limited (“KMB”) recorded a profit after taxation of HK$11.5 million (2022 (restated): loss after taxation of HK$49.9 million). As for Long Win Bus Company Limited (“LWB”), the profit after taxation was HK$23.1 million (2022 (restated): loss after taxation of HK$30.8 million).
The Group’s non-franchised Transport Operations Division, with Sun Bus Limited as its flagship company, recorded a profit after taxation of HK$13.9 million (2022 (restated): HK$1.4 million). Our Mainland Transport Operations Division recorded positive overall results in 2023.
Hong Kong has lifted all epidemic prevention measures and society returned to normal, which is beneficial for improving the operation of bus services. However, the bus operating environment is filled with challenges stemming from the tense geopolitical situation, volatile international oil prices, continuous expansion of the local railway network and post-pandemic changes in travel patterns. Taking advantage of the government’s initiatives, which aim at stimulating the economy and attracting tourists, there is a steady growth of transportation demands from locals and tourists. To capitalise on this opportunity, the Group has implemented various development strategies, such as strengthening cross-boundary route services and advancing fare concessions to attract passengers. These efforts have led to a corresponding increase in fare-box revenue.
Bus safety is a top priority of the Group. Last year, KMB introduced the Preventive Maintenance System to remotely monitor key components of our buses. The number of mechanical failures for KMB and LWB fleets decreased by 20% compared to the previous year. Meanwhile, the KMB Academy, founded over two years ago, has launched two newly certified courses and they have been incorporated into the Qualifications Register. The KMB Academy now offers four Hong Kong Qualifications Framework recognised programmes, making it a pioneering leader in the industry.
In order to enhance the convenience of bus services, the Company continuously optimises existing routes and introduces new routes. With 31 bus-bus interchanges established throughout Hong Kong, our service network has greatly improved along with the offer of various transit combinations and incentives. As for customer experience, KMB provides information on passenger capacity through the mobile application or in the bus compartment. Additionally, self-served lockers have been installed at bus termini, enabling customers to conveniently collect packages and reclaim items left behind on buses. KMB has also increased the waiting seats and priority seats for those in need. Indeed, these initiatives exemplify the Group's commitment to keep pace with the times by continuously enhancing the quality of service and maintaining a competitive edge.
Green transportation is the inevitable trend in the future. As the largest franchised bus service operator in Hong Kong, KMB actively aligns with carbon reduction policies and has introduced 82 electric buses. Among them, the electric double-deckers were put into service in mid-2023 and have been operated smoothly and received immense popularity among locals. Currently, there are 40 routes deployed with electric buses, travelling over 2.2 million kilometers, which is equivalent to reducing 3,000 tonnes of carbon emissions. The deployment of electric buses has provided a strong impetus for zero emissions in Hong Kong, making significant contributions to improving air quality.
The Group had previously set three-year six environmental targets for key performance indicators, which include reducing our bus carbon footprint, fuel consumption, electricity usage, and water consumption. All related targets achieved positive results in 2023, demonstrating the effectiveness of the corresponding strategies. After conducting in-depth research and analyses, and considering market data, the Group has set five-year six environmental performance targets for the financial year from 2024 to 2028. It aims to continuously promote sustainable development and actively implement carbon neutrality policies.
Apart from local transportation services, the Group strives to diversify its business. The Millennity, a property project located at How Ming Street of Kwun Tong, consists of two buildings, including two 20-storey Grade-A office towers and a 10-storey large-scale shopping mall at the podium level. The architectural design has received international and local recognition for its outstanding performance in energy efficiency, environmental sustainability, and emissions reduction. The office towers have already been occupied by several major corporations and, with the opening of the large-scale shopping mall in 2024, The Millennity is expected to generate long-term, sustainable and stable income for the Group.
The Group will seize the opportunities presented by the Greater Bay Area integration and has signed a strategic cooperation agreement with Shenzhen Bus Group Co. Limited to promote cross-boundary transportation and interconnectivity, leveraging their respective resource advantages to advance the integration of transport between Shenzhen and Hong Kong. In addition, the Group has signed a memorandum of understanding for cooperation with the Integrated Transport Centre of Abu Dhabi, United Arab Emirates. Drawing on KMB’s extensive experience in operating local public transport for over ninety years, the Group aims to contribute to the transformation of public transport in Abu Dhabi. This involves actively promoting and participating in the development of green transportation in the region, aligning with the national “Belt and Road” initiative.
Looking ahead, the Northern Metropolis is one of the key development areas in Hong Kong and, upon completion, it is expected to add a total of 500,000 housing units. Given the rising demand for transportation services to and from the Mainland, the Group is fully committed to providing convenient bus services and favourable interchange options for both locals and visitors, ensuring a comfortable bus journey experience for all customers.
Dr. Leung concluded “Last year was the 90th anniversary of KMB, we celebrated through various large-scale events, garnering support from locals, colleagues, government officials and business partners. The Hong Kong economy has gradually recovered, and the Group’s business has continued to rebound. We will place collective efforts of the entire company, as we closely monitor market trends and respond to evolving needs. We remain steadfast in delivering safe and high-quality transportation needs for customers and creating a favourable return for our shareholders. I would like to express my heartfelt gratitude to the Board of Directors, shareholders, every staff member of the Group and all our customers for their continued support.”
