At the 2013 Annual General Meeting of Transport International HoldingsLimited (TIH) today, the Group’s Chairman, Dr. Norman LeungNai Pang, reported the financial results for 2012.The Board has proposed an ordinary final dividend of HK$0.45 per share.Together with the ordinary interim dividend of HK$0.15 per share paid on16 October 2012, total dividends for the year will amount to HK$0.60 pershare.
Dr. Norman LeungNai Pang said, “For the year ended 31 December 2012, the Group’s profit attributable toequity shareholders was HK$309.2 million, an increase of HK$66.8million compared to HK$242.4 million for 2011. The increase in profitwas mainly due to the fact that no further provision for impairment losswas made by the RoadShow Group on an investment in China Mainlandin 2012 following the provision of HK$109.6 million which was made in 2011.”
When excluding the aforesaid impairment loss provision, the Group’sprofit attributable to equity shareholders for 2012 represents a 4.1%decrease compared with 2011. The decrease was mainly due to thedeterioration in the financial performance of the Group’s core franchisedpublic bus business operated by The Kowloon Motor Bus Company(1933) Limited (“KMB”) in 2012.KMB continued to face a very challenging operating environment in 2012.Despite the fact that its fare revenue for 2012 increased by 2.1%compared to 2011 as a result of the full year effect of the 3.6% fareincrease which took effect on 15 May 2011 and a slight year-on-yearincrease in ridership of 0.7%, these increases were insufficient to offsetthe high operating costs generated by surging fuel prices, wages, tollcharges and other operating expenses arising from inflation, resulting inKMB reporting a post-tax loss of HK$51.5 million for 2012.
“In view of the losses incurred by KMB due to factors beyond its controland for the purpose of restoring its financial viability, on 29 November2012, KMB submitted to the Transport Department an application for afare increase of 8.5%. On 19 February 2013, the HKSAR Governmentannounced that an approved average rate of increase of 4.9% wouldcome into effect on 17 March 2013. Given the tough operatingconditions currently faced by KMB, such a rate of increase is insufficientto offset the rising operating costs, and therefore bus routereorganisation must be implemented on a large scale and at a fasterpace. We welcome the Chief Executive’s words in his 2013 PolicyAddress about the importance of bus route reorganisation. We hopethat, with the support of the Government, we will be better positioned tocommunicate our plans for consultation with the District Councils so thatbus route reorganisation can be successfully implemented.” Dr. Norman Leung Nai Pang said.
As for Long Win Bus Company Limited (“LWB”), its fare revenue for 2012 increased by 5.1% compared to2011. This increase was mainly due to the full year effect of the fareincrease of 3.2%, which took effect on 15 May 2011, and an increase inthe average daily ridership of 3.3% as compared with 2011. Thesepositive factors were partially offset by the increase in staff costsresulting from the annual pay rise, and the increase in international fuelprices and other operating expenses. LWB reported a post-tax profit ofHK$26.3 million for 2012, an increase of 48.6% compared to 2011.
The Group's non-franchised transport businesses performed strongly in2012 with turnover and profit after taxation rising by 13.8% and 74.3%year-on-year, respectively. These increases were mainly due tobusiness growth, in particular on cross-boundary passenger services. In respect of the Group’s China Mainland Transport Operations Division,the performance of the Group’s joint ventures in Beijing and Shenzhen wasstable in 2012.
The Group’s Manhattan Mid-town shopping mall at 1 Po Lun Street, Lai ChiKok, with a total area of 50,000 square feet, and the shops in the Group’s headquarters building at 9 Po Lun Street, Lai Chi Kok, together with theindustrial property at 1 Kin Fung Circuit, TuenMun, have been leasedout and will continue to provide steady rental income for the Group.
Dr. Norman LeungNai Pangadded, “This year is KMB’s 80th Anniversary. KMB has been contributing to thegrowth of Hong Kong for 80 years, and our constant quest for innovationand service excellence means that we will continue the pursuit ofexcellence in all the business that we operate. Finally, I would like to thank my fellow Board members, our managementteam and staff at all levels for their dedication and contributions to theGroup over the years. With their continued support, I am confident thatwe will be able to ride out the challenges that face us today, andcontinue to maintain our leadership position in the Hong Kong publictransport industry.”
TRANSPORT INTERNATIONAL HOLDINGS LIMITED 2013 ANNUAL GENERAL MEETING
(23 May 2013)
