Financial Performance - The group's unaudited profit attributable to shareholders for the six months ended June 30, 2023, was HKD 133.7 million, an increase of HKD 27.3 million or 25.7% compared to HKD 106.4 million for the same period in 2022[2]. - The revenue for the six months ended June 30, 2023, was HKD 3,805.4 million, up from HKD 2,946.7 million in the same period of 2022, representing a growth of 29%[3]. - The operating profit for the period was HKD 34.1 million, a significant improvement from an operating loss of HKD 170.1 million in the previous year[3]. - The basic and diluted earnings per share for the six months ended June 30, 2023, were HKD 0.28, compared to HKD 0.23 for the same period in 2022[3]. - The interim dividend declared for the six months ended June 30, 2023, was HKD 0.30 per share, compared to no dividend declared for the same period in 2022[2]. - The company reported a pre-tax profit of HKD 2,084.3 million for the six months ended June 30, 2023, compared to HKD 1,973.2 million for the same period in 2022[17]. - The company's profit attributable to shareholders for the six months ended June 30, 2023, was HKD 133.7 million, an increase of HKD 27.3 million compared to HKD 106.4 million for the same period in 2022, representing a growth of approximately 25.7%[29]. - Basic earnings per share for the six months ended June 30, 2023, was HKD 0.28, compared to HKD 0.23 for the same period in 2022, reflecting an increase of 21.7%[29]. Asset and Liability Management - The group's non-current assets totaled HKD 20,633.5 million as of June 30, 2023, compared to HKD 20,358.7 million as of December 31, 2022[5]. - The net current assets increased to HKD 380.7 million from HKD 233.9 million, indicating improved liquidity[5]. - The total assets less current liabilities amounted to HKD 21,014.2 million, up from HKD 20,592.6 million in the previous year[5]. - Total assets as of June 30, 2023, were HKD 20,911.5 million, while total liabilities were HKD 8,168.4 million[13]. - The company's total liabilities as of June 30, 2023, increased by 5.8% from HKD 7,722.2 million at the end of 2022[13]. - The net debt of the group as of June 30, 2023, is HKD 28.626 billion, up from HKD 27.251 billion on December 31, 2022[42]. - The unencumbered bank loans amount to HKD 50.078 billion as of June 30, 2023, compared to HKD 49.676 billion on December 31, 2022[43]. - As of June 30, 2023, the group's unused bank credit totaled HKD 15.8 billion, an increase from HKD 6.2 billion as of December 31, 2022[44]. Operational Costs and Employee Expenses - Employee costs increased to HKD 2,084.3 million from HKD 1,973.2 million, reflecting a rise in operational expenses[3]. - Total employee compensation for the six months ended June 30, 2023, was HKD 2.002 billion, compared to HKD 1.873 billion for the same period in 2022, accounting for approximately 52% of total operating costs[49]. - Financing costs increased to HKD 84.9 million for the six months ended June 30, 2023, compared to HKD 19.3 million in the previous year[18]. - Financing costs for the six months ended June 30, 2023, were HKD 49.1 million, up from HKD 9 million for the same period in 2022, reflecting an increase in average bank loans and interest rates rising from 0.89% to 3.26%[45]. Revenue Streams - Public bus service fare revenue reached HKD 3,494.8 million, up 29% from HKD 2,711.3 million in the previous year[15]. - For the six months ended June 30, 2023, fare revenue was HKD 3.2542 billion, an increase of HKD 681.9 million or 26.5% compared to HKD 2.5723 billion in the same period of 2022, primarily due to a rebound in passenger volume[31]. - The company recorded other income of HKD 98.2 million for the six months ended June 30, 2023, down from HKD 359.6 million in the same period of 2022[16]. Investment and Fair Value Changes - The fair value change of investment properties and properties under development for the six months ended June 30, 2023, was HKD 140.1 million[9]. - The fair value of The Millennity as of June 30, 2023, is HKD 65.25 billion, with HKD 39 billion classified as investment properties and HKD 26.25 billion as development properties[36]. - The fair value of the commercial building owned by LCK Real Estate Limited is HKD 9.18 billion as of June 30, 2023, slightly down from HKD 9.213 billion on December 31, 2022[37]. - The fair value of the "Man Fang" shopping mall owned by LCK Commercial Properties Limited is HKD 4.455 billion as of June 30, 2023, compared to HKD 4.445 billion on December 31, 2022[37]. - The property holding and development segment reported a post-tax profit of HKD 158.9 million, a decrease of HKD 68.6 million or 30.2% from HKD 227.5 million in the same period of 2022, mainly due to reduced fair value gains from investment properties[35]. Strategic Initiatives and Future Outlook - The company plans to continue its market expansion and product development strategies to enhance its competitive position in the industry[29]. - The group expects passenger numbers to gradually return to pre-pandemic levels due to the reopening of borders and increased travel activity[50]. - The group has received government approval to increase bus fares starting June 18, 2023, which is expected to alleviate financial pressures[50]. - The company plans to increase its fleet of electric buses to over 80 units by the end of 2023, aiming for 12.5% of the fleet to be electrified by 2025[51]. - The company is focusing on developing recurring income sources through the redevelopment of properties, including leasing office and retail spaces[51]. - The company is collaborating with Shenzhen Bus Group to enhance cross-border transport services in response to the growing demand from the Greater Bay Area[51]. Compliance and Governance - The company has adhered to corporate governance codes and regulations during the reporting period[54]. - The interim financial report for the six months ending June 30, 2023, has been reviewed by independent auditors and is available on the company's website[55].

Financial Performance - The group's unaudited profit attributable to shareholders for the six months ended June 30, 2023, was HKD 133.7 million, an increase of HKD 27.3 million or 25.7% compared to HKD 106.4 million for the same period in 2022[2]. - The revenue for the six months ended June 30, 2023, was HKD 3,805.4 million, up from HKD 2,946.7 million in the same period of 2022, representing an increase of 29%[3]. - The operating profit for the period was HKD 34.1 million, a significant improvement from an operating loss of HKD 170.1 million in the previous year[3]. - The basic earnings per share for the six months ended June 30, 2023, was HKD 0.28, compared to HKD 0.23 for the same period in 2022, reflecting a 21.7% increase[3]. - The interim dividend declared for the six months ended June 30, 2023, was HKD 0.30 per share, compared to no dividend for the same period in 2022[2]. - The company reported a pre-tax profit of HKD 2,084.3 million for the six months ended June 30, 2023, compared to HKD 1,973.2 million for the same period in 2022, reflecting a growth of 5.6%[17]. - The company recorded other income of HKD 98.2 million for the six months ended June 30, 2023, down from HKD 359.6 million in the previous year[16]. - Financing costs increased to HKD 84.9 million for the six months ended June 30, 2023, compared to HKD 19.3 million in the same period of 2022[18]. Operational Highlights - The flagship company, KMB, recorded a post-tax loss of HKD 48.2 million, an improvement of HKD 90.9 million compared to a post-tax loss of HKD 139.1 million in the same period last year[2]. - Employee costs increased to HKD 2,084.3 million from HKD 1,973.2 million, reflecting a rise of 5.6%[3]. - Fuel costs rose to HKD 487.9 million from HKD 342.7 million, marking an increase of 42.4%[3]. - The company reported a significant recovery in passenger volume, attributed to the easing of government pandemic measures, which positively impacted bus fare revenue[29]. - The company anticipates continued improvement in financial performance, despite rising fuel and employee costs[29]. Asset and Liability Management - Non-current assets totaled HKD 20,633.5 million as of June 30, 2023, compared to HKD 20,358.7 million as of December 31, 2022[5]. - The net current assets increased to HKD 380.7 million from HKD 233.9 million, indicating a significant improvement in liquidity[5]. - Total assets as of June 30, 2023, were HKD 20,911.5 million, while total liabilities were HKD 8,168.4 million, indicating a healthy asset-to-liability ratio[13]. - The company's total liabilities as of June 30, 2023, included a provision for the tunnel fee exemption fund amounting to HKD 465.9 million[17]. - The net debt of the group as of June 30, 2023, is HKD 28.626 billion, compared to HKD 27.251 billion on December 31, 2022[42]. Accounting Policy Changes - The company changed its accounting policy for investment properties and properties under development from a cost model to a fair value model, resulting in a fair value change of HKD 140.1 million for the six months ended June 30, 2023[8]. - Basic and diluted earnings per share for the six months ended June 30, 2023, were HKD 0.28, compared to a loss of HKD 0.08 before the accounting policy change[9]. - The retained earnings increased to HKD 12,352.1 million as of June 30, 2023, due to the adjustments from the new accounting policy[11]. - Deferred tax liabilities were adjusted to HKD 996.2 million as of June 30, 2023, reflecting the impact of the fair value measurement[11]. - The company anticipates that the new accounting policy will enhance comparability with other listed companies[8]. Future Outlook and Strategic Initiatives - The company plans to continue expanding its public transport services and exploring new business opportunities in the upcoming quarters[14]. - The company has been granted a new ten-year bus franchise starting from May 1, 2023, which is expected to enhance service quality and expand the bus service network[51]. - The company plans to increase its fleet of electric buses to over 80 units by the end of this year, aiming for 12.5% of the fleet to be electrified by 2025[51]. - The company is actively seeking to increase non-fare revenue and is pursuing various proposals with the government[51]. - The company is committed to a "zero emissions" roadmap in line with national and local carbon neutrality policies[51]. Employee and Compensation - Total employee compensation for the six months ended June 30, 2023, was HKD 2.0021 billion, representing approximately 52% of the group's total operating costs, an increase from HKD 1.8726 billion for the same period in 2022[49]. - The group has over 13,000 employees as of June 30, 2023, consistent with the number as of December 31, 2022[49]. Capital Expenditure and Financing - The group's capital expenditure for the six months ended June 30, 2023, was HKD 10.405 billion, an increase from HKD 6.687 billion for the same period in 2022[41]. - The group's unencumbered bank loans amount to HKD 50.078 billion as of June 30, 2023, up from HKD 49.676 billion on December 31, 2022[43]. - As of June 30, 2023, the group's unused bank credit totaled HKD 15.8 billion, an increase from HKD 6.2 billion as of December 31, 2022[44]. - Financing costs for the six months ended June 30, 2023, were HKD 49.1 million, up from HKD 9 million for the same period in 2022, primarily due to increased average bank loans and a rise in interest rates from 0.89% to 3.26%[45]. Governance and Compliance - The mid-term financial report for the six months ending June 30, 2023, has been reviewed by independent auditors and is available on the company's website[55]. - The company has complied with the applicable corporate governance code provisions during the review period[54]. - The company issued 11,974,451 shares at HKD 9.91 each on June 30, 2023, as part of a scrip dividend plan[52].

Financial Performance - KMB recorded a post-tax loss of HKD 4.7 million in 2022, a significant unfavorable variance of HKD 106.1 million compared to 2021[43] - Long Win Bus recorded a post-tax loss of HKD 27.8 million in 2022, with a favorable variance of HKD 7.2 million compared to 2021, despite a significant drop in passenger numbers due to pandemic restrictions[43] - Sun Bus, the flagship company of the non-franchised transport business, recorded a post-tax profit of HKD 3.5 million in 2022, a decrease of HKD 5.3 million compared to 2021[43] - The group's profit attributable to shareholders for the year ended December 31, 2022, was HKD 143.6 million, a decrease of HKD 101.4 million compared to 2021, primarily due to reduced travel during the fifth wave of COVID-19[42] - The company expects a recovery in bus ridership and revenue to pre-pandemic levels due to the relaxation of COVID-19 measures and border reopening[54] Sustainability and ESG Initiatives - KMB achieved a HKD 800 million 5-year sustainability-linked loan agreement to promote ESG projects, including reducing greenhouse gas emissions and increasing green procurement[33] - KMB initiated the "Carbon Reduction Partner Program" to install solar panels on its fleet, with sponsors recognized through commemorative plaques on buses[31] - The company aims to transition its entire fleet to new energy buses by 2040, aligning with the government's carbon neutrality goals[73] - The company has set a goal to achieve carbon neutrality and is preparing to fully transition to new energy buses, supported by the construction of two new energy bus depots[57] - The company is installing solar panels on bus roofs and station facilities to utilize renewable energy and reduce energy waste[57] - The company has installed solar panels on 2,000 bus stops by the end of 2022 and plans to install over 30,000 solar photovoltaic panels by 2023 to promote renewable energy[75] - The company has secured two sustainability-linked loans totaling HKD 800 million from Mitsubishi UFJ Bank and Chong Hing Bank to promote zero-carbon transportation in Hong Kong[152] - The company has installed approximately 30,000 solar panels as part of its renewable energy and zero-emission bus technology development plan[154] - The company's bus depots are equipped with environmentally friendly designs for sewage treatment and water recycling systems, effectively reducing water consumption[151] - The company has obtained ISO14001 certification for its two largest bus depots and conducts quarterly audits to ensure compliance with strict environmental management standards[145] - The company has integrated climate change-related risks into its risk management system, with key performance indicators reported to the Audit and Risk Management Committee three times a year[150] - The company has adopted the TCFD framework to comprehensively discuss climate change risks and their potential impacts on the business, ensuring alignment with governance, strategy, risk management, and metrics[147] - The third-generation solar-powered double-decker buses reduce cabin temperature by 8-10°C and save 5-8% of fuel consumption per bus daily, equivalent to reducing 6 tons of carbon emissions annually per bus[156] - The company plans to install 30,000 solar photovoltaic panels across bus depots, bus stops, and bus roofs, generating over 13 million kWh of renewable energy annually, equivalent to the electricity consumption of 4,176 Hong Kong households, and reducing 12,587 tons of carbon emissions[156] - The company has developed a patented eco-friendly wind barrier for buses, reducing energy waste from air conditioning loss, and plans to install it on 600 buses[156] - Replacing low-wattage LED lights in the bus fleet will reduce 5,600 tons of carbon emissions annually[156] - The company has partnered with 48 enterprises to install solar panels on 89 in-service buses as part of its "Carbon Reduction Partner Program"[157] - The company has introduced 16 new-generation pure electric buses and plans to have 500 electric buses in the fleet within the next 3-5 years, aiming for a fully zero-emission bus fleet by 2040[166] - The company has installed over 8,500 solar photovoltaic panels across bus depots and stations to enhance renewable energy usage and reduce greenhouse gas emissions[161] - The company has implemented a water recycling system in bus depots, reducing total water consumption by 4%[163] - The company has reduced oil consumption by 40% and waste oil by 80% through a mileage-based oil change plan and the use of synthetic transmission oil[160] - The company has achieved a 2.36% reduction in environmental targets per million kilometers driven, progressing towards its 2023 fiscal year goals[165] Operational and Service Enhancements - KMB introduced the first pure electric double-decker bus in Hong Kong, featuring advanced blade battery technology, significantly improving battery efficiency and cabin space[39] - KMB launched three new express routes (96, 290E, and 298X) to provide new travel options for Tseung Kwan O residents following the opening of the Tseung Kwan O-Lam Tin Tunnel[40] - KMB installed 10 AEDs at major bus terminals and depots for public use, with staff trained to enhance confidence in using the devices[35] - The company adjusted bus services to meet demand in growing areas such as Tseung Kwan O, North District, and Tuen Mun, while optimizing around 30 interchange stations[56] - The company introduced new bus routes and expanded its transfer network to offer more affordable cross-district travel options[56] - The company faced significant operational pressure in 2022 due to reduced ridership and staff shortages caused by the pandemic[56] - The company implemented health measures, including disinfectant coatings in buses and providing rapid test kits to employees[56] - The company produced its own masks to protect employees during the pandemic[56] - The company celebrated its 90th anniversary in 2023, reaffirming its commitment to providing safe, comfortable, and value-for-money bus services[54] - The company is upgrading its bus fleet to 5G-enabled buses, providing free 5G Wi-Fi services to passengers, and using technology to assess passenger flow and traffic for better resource allocation[57] - The company has delivered its first double-decker electric bus with a passenger capacity similar to diesel buses and a range suitable for most bus routes, with more electric buses expected to be delivered soon[57] - The company is collaborating with Shenzhen Bus Group to promote cross-border payment systems and information sharing, aiming to enhance transportation services in the Greater Bay Area[57] - The company is expanding its services in new development areas, providing transportation networks to support housing projects and enhance business growth[57] - The company operates a fleet of approximately 4,000 buses, serving over 2.6 million passengers daily across 433 routes[66] - In response to the COVID-19 pandemic, passenger demand significantly dropped during the fifth wave in early 2022, but service levels gradually recovered from April 2022[67] - The company introduced a "Buy 3 Get 1 Free" promotion for the KMB Monthly Pass in April 2022, offering an Octopus top-up of HKD 780 (equivalent to one monthly pass) for customers who purchased the pass for four consecutive months[68] - A regional short-distance fare scheme was launched in August 2022, covering 5 routes in the Northern District, with fares as low as HKD 3.8, saving passengers up to HKD 12.5 per trip[70] - The company implemented 86 route restructuring plans in 2022, improving network synergy and eliminating route overlaps[71] - New routes 90, 96, and 97 were launched in September and December 2022, connecting Tai Po, Sha Tin, and Tseung Kwan O, while route 69 was introduced to provide cross-district services between Yuen Long and Tin Shui Wai[72] - In 2022, 205 new buses were licensed, including 189 double-decker buses with enhanced safety features and 16 BYD electric single-decker buses[74] - The company plans to introduce 500 electric buses in the next 3-5 years, accounting for one-eighth of the total fleet[74] - As of December 31, 2021, the company operated 4,036 licensed buses, including 3 hybrid double-decker buses and 26 electric single-decker buses, with 118 Euro VI double-decker buses and 51 double-decker electric buses on order for delivery in 2023[74] - KMB's bus fleet increased from 4,013 to 4,036 in 2022, with 210 new buses added and 187 retired[76] - KMB upgraded 2,500 buses to 5G technology in 2022, providing free 5G Wi-Fi services and plans to add upper deck seat displays and real-time bus capacity information in the App1933[78] - KMB's electronic payment system "e度嘟" now supports 11 payment methods, including BoC Pay, making it the public transport operator with the most electronic payment options in Hong Kong[79] - App1933 has expanded its real-time estimated journey time feature to 50 locations and provides bus arrival time information for other franchised bus companies[80] - KMB's fleet mechanical reliability reached 109,094 km:1 and fleet operational capability was 103.08% in 2022[82] - KMB operates 4 main bus depots and 11 smaller depots, with the Tuen Mun Central Repair Centre providing comprehensive bus maintenance services[83] - Long Win Bus was granted a new 10-year franchise by the Hong Kong government, effective from May 1, 2023, covering areas such as the airport, Hong Kong Disneyland, and AsiaWorld-Expo[87] - Long Win Bus, heavily impacted by COVID-19 due to its reliance on tourists, adjusted service levels in consultation with the Transport Department to match actual passenger demand[88] - Long Win Bus also supports 11 electronic payment methods through the "e度嘟" system, including BoC Pay, aligning with KMB's payment options[89] - Long Win Bus operates 39 routes by the end of 2022, with service adjustments made to routes in Tuen Mun and Yuen Long districts, including the E43 route, significantly reducing travel time between the North District and North Lantau[90] - Long Win Bus introduced 13 new double-decker buses with advanced safety features in 2022, and as of December 31, 2022, operates a fleet of 261 double-decker buses and 4 electric single-decker buses, with 192 double-decker buses being 12.8 meters long and wheelchair accessible[91] - The mechanical reliability of Long Win Bus reached 249,086 km:1 in 2022, with a fleet operational capability of 101.70%[95] - Long Win Bus's fleet consists of over 95.09% Euro V or above and electric buses after transferring 5 buses in 2022[93] - Long Win Bus's fleet increased from 256 buses (252 double-decker and 4 single-decker electric) at the beginning of 2022 to 265 buses (261 double-decker and 4 single-decker electric) by the end of 2022, with 14 buses added and 5 disposed of during the year[94] - Sun Bus Group implemented flexible schedules and enhanced cleaning measures in response to the fifth wave of COVID-19, and plans to invest in Euro VI buses with driving monitoring and assistance systems in 2023[99] - Shenzhen Bus Group's passenger volume decreased by 28.3% from 544.1 million in 2021 to 389.9 million in 2022 due to the COVID-19 pandemic[103] - Shenzhen Bus Group operates a fleet of over 5,600 buses and more than 4,800 taxis, and was the first to achieve full electrification of its bus fleet in 2017[103] - The company launched new bus routes, including 67A, 78B, 93P, 96, 290E, and 298X, to improve connectivity and provide faster services to new residential areas and key business districts[171] - The company has upgraded over 600 buses with sliding ventilation windows to enhance air circulation and passenger comfort[173] - The company has installed solar power devices at 2,000 bus stops to promote green energy and power lighting systems[173] - The company has equipped 4,065 buses with real-time information displays and installed 1,260 bus shelters with screens showing estimated arrival times[173] - The company has retrofitted approximately 260 buses with dual wheelchair spaces and introduced new foldable wheelchair armrests on over 90 buses to improve accessibility and safety for wheelchair users[174] - The company has installed 2,250 seats at bus shelters, terminals, and interchange stations to accommodate elderly, disabled, and child-carrying passengers[175] - The company has initiated a 5G upgrade for its entire bus fleet, providing free 5G Wi-Fi services to passengers, enhancing their travel experience with high-speed and stable internet connectivity[172] - The company has introduced energy-efficient LED lighting and variable-speed air conditioning compressors on 3,790 buses and 257 Long Win buses, optimizing energy use and improving cabin comfort[173] - KMB launched a regional short-haul fare discount program covering 55 routes and 92 card readers, offering fares ranging from HKD 3.8 to HKD 5 for intra-district travel[176] - KMB expanded its "KMB Discount Stations" to include new locations in Tsim Sha Tsui, Yuen Long, and Tin Shui Wai, providing up to HKD 4 fare discounts[176] - ICBC•KMB UnionPay Dual Currency Cardholders can enjoy up to 20% fare rebates on KMB and Long Win buses, while Citibank cardholders receive a 15% annual fare rebate[176][178] - KMB introduced a "Buy 3 Get 1 Free" promotion for monthly passes, offering an HKD 780 Octopus rebate, and extended the promotion to the second half of 2022[180] - KMB launched a student-exclusive "Buy 2 Get 1 Free" promotion for monthly passes, providing an HKD 780 Octopus rebate for students[180] - KMB and Long Win established 23 interchange stations, covering most KMB routes, and introduced a new Ma On Shan interchange network covering 14 routes with up to HKD 10 transfer discounts[179][182] - KMB renovated multiple interchange stations in 2022, improving signage and platform numbering for better passenger experience[179] - KMB's monthly pass is applicable to over 400 routes, offering daily rides of 10 KMB trips and 2 B1 route trips for HKD 780[180] - KMB and Long Win buses are equipped with CCTV systems to enhance passenger and driver safety, with all new buses since 2015 including front-facing cameras as standard[181] - KMB's App1933 provides real-time bus route information and estimated arrival times, enhancing passenger convenience[182] Employee Welfare and Training - KMB partnered with Hong Kong Metropolitan University to provide internship opportunities and short-term career-oriented courses for students[30] - The company provided competitive salary and benefits, including paid annual leave, medical benefits, hospitalization insurance, accident insurance, and free bus rides for employees and their families[185] - Over 400 children of employees benefited from the Employee Children Scholarship Program as of December 31, 2022[185] - The company launched a series of health activities in 2022, including health lectures, free health books, and healthy menus in employee canteens[185] - A total of 10 automated external defibrillators (AEDs) were installed at major bus stations and depots in 2022 for public and employee use[187] - The company established the KMB Academy in early 2022, merging the KMB Driver Training School and KMB Technical Training School to enhance employee training[189] - Three KMB apprentices won awards in the Vocational Training Council's "Best Automotive Apprentice Competition" in 2022[189] - The company offered diverse learning opportunities, including internal classroom training and online courses, to help employees stay updated with industry trends[190] - A 24/7 counseling hotline was set up to support employees' mental health during the COVID-19 pandemic[186] - The company improved employee rest facilities, including the "Club1933" recreation area at Kowloon Bay and Lai Chi Kok depots[185] - The company organized various activities, such as the "Employee Appreciation Month," to foster a supportive work culture[185] - 274 drivers were commended for outstanding safety and service performance in 2022[191] - 28 employees received the 35-year service award, 121 received the 30-year service award, and 168 received the 20-year service award[191] - 100 drivers were awarded the GreenRoad Safety and Eco-Driving Excellence Award, with 10 receiving a cash prize of HKD 10,000[191] - Over 390 employees, including retirees, were awarded for long-term service and excellent performance[191] Customer Engagement and Safety - The company held 12 passenger liaison group meetings across different regions to collect customer feedback[199] - The company participated in the Hong Kong Book Fair and set up pop-up stores in Kwun Tong and Sham Shui Po to promote services[199] - The company organized four free ride days in collaboration with business partners and sponsors[199] - The company's Facebook page reached over 187,000 followers, and Instagram reached over 625,000 account interactions by December 2022[200] - Over 86.50% of drivers achieved outstanding performance in the GreenRoad Safety and Eco-Driving Excellence Awards[124] - Diesel usage decreased by 6.17% in 2022[124] - The mechanical reliability of KMB's fleet reached 109,094 km:1, while Long Win's fleet reached 249,086 km:1 in 2022[129] - KMB's fleet operational capacity reached 103.08%, and Long Win's reached 101.70% in 2022[129] - The company collaborated with 408 local suppliers and 34 non-local suppliers in 2022, with 88.00% of expenditures on local suppliers[123] - Non-Chinese, disabled, and retired employees accounted for 17.60% of the total workforce[124] - Over 20,000 hours of volunteer service were recorded in 2022[124] - The company implemented an environmental and sustainable procurement policy[124] - The company's safety committees held 336 meetings, achieving a 100% participation rate[129] - The company's ISO45001-certified Occupational Health and Safety Management System covers 12,122 employees and contractors[129] - GreenRoad driver feedback system reduced average accident rate by approximately 19.85%, with over 86.50% of drivers achieving a safe satisfaction level[134] - Over 90 buses equipped with new ret

Financial Performance - The company's net profit attributable to shareholders for the year ended December 31, 2022, was HKD 143.64 million, a decrease of HKD 101.4 million compared to HKD 245.04 million in 2021, primarily due to the impact of the fifth wave of COVID-19 and increased depreciation and operating expenses from bus replacements [2]. - The flagship company, Kowloon Motor Bus Company (1933) Limited, recorded a post-tax loss of HKD 4.7 million in 2022, compared to a profit of HKD 101.4 million in 2021, representing a negative variance of HKD 106.1 million [2]. - Earnings per share for 2022 were HKD 0.31, down from HKD 0.53 in 2021 [3]. - Total revenue from public bus services for 2022 was HKD 6,090.56 million, a decline of approximately 7.8% from HKD 6,609.29 million in 2021 [3]. - The total comprehensive income for the year was a loss of HKD 185.09 million, compared to a gain of HKD 597.75 million in 2021 [4]. - Total revenue for 2022 was HKD 6,607,171,000, a decrease of 8.25% from HKD 7,202,008,000 in 2021 [10]. - The operating loss from the bus business segment was HKD 33,013,000 in 2022, compared to a profit of HKD 65,852,000 in 2021 [10]. - The company reported a tax credit of HKD 105,262,000 in 2022, compared to a tax expense of HKD 14,142,000 in 2021 [10]. - The effective tax expense for 2022 was HKD (87,779,000), compared to HKD 27,049,000 in 2021, indicating a significant change in tax liability [21]. - Basic earnings per share for 2022 were HKD 143,640,000, down from HKD 245,044,000 in 2021, representing a decrease of approximately 41.3% [22]. Dividends - The company proposed a final dividend of HKD 0.50 per share for 2022, consistent with the dividend for 2021 [2]. - The proposed final dividend for 2022 is HKD 0.50 per share, totaling HKD 237,470,000, compared to HKD 232,735,000 in 2021, which is an increase of about 2% [18]. - The company has not declared any interim dividends for 2022 and 2021, maintaining a consistent final dividend payout [31]. Assets and Liabilities - Non-current assets totaled HKD 17,604.94 million as of December 31, 2022, an increase from HKD 17,226.08 million in 2021 [5]. - Current assets increased to HKD 3,545.74 million in 2022 from HKD 2,719.97 million in 2021, driven by higher cash and bank deposits [5]. - The company's bank loans rose significantly to HKD 1,674.57 million in 2022 from HKD 994.03 million in 2021, indicating increased leverage [5]. - Total assets increased to HKD 21,150,676,000 in 2022, up from HKD 19,946,051,000 in 2021, representing an increase of 6.03% [12]. - Total liabilities rose to HKD 7,772,755,000 in 2022, compared to HKD 6,267,323,000 in 2021, marking an increase of 24.03% [12]. - The net asset value decreased to HKD 13,377,921,000 in 2022 from HKD 13,678,728,000 in 2021, a decline of 2.20% [6]. - The company's total equity decreased to HKD 13,377,921,000 in 2022 from HKD 13,678,728,000 in 2021, a decline of 2.20% [6]. Operating Costs and Revenue - The company's employee costs were HKD 3,992,435,000 in 2022, slightly down from HKD 4,043,528,000 in 2021, a decrease of 1.26% [10]. - The total operating costs for 2022 were HKD 66.694 billion, an increase of HKD 592 million compared to HKD 66.102 billion in 2021, mainly due to bus replacements and inflation affecting depreciation and other operating expenses [35]. - The fare revenue of the company was HKD 57.749 billion, a decrease of HKD 5.148 billion or 8.2% compared to HKD 62.897 billion in 2021, primarily due to a significant drop in passenger volume caused by the fifth wave of COVID-19 [35]. - The total operating costs for 2022 were HKD 4.094 billion, a decrease of HKD 170 million or 4.0% from HKD 4.264 billion in 2021, primarily due to service adjustments and reduced tunnel fee expenses [36]. Government Support and Subsidies - The company received government subsidies of HKD 525,566,000 in 2022, a substantial increase from HKD 5,394,000 in 2021, indicating a significant support due to operational pressures from the pandemic [15]. Future Outlook and Expansion - The company anticipates a gradual recovery in bus passenger volume and revenue to pre-pandemic levels due to the easing of COVID-19 restrictions and increased travel demand from local residents and tourists [52]. - The company has been granted a new 10-year franchise by the government, effective from May 1, 2023, which is expected to enhance operational opportunities [52]. - The company plans to leverage its collaboration with the Greater Bay Area and Shenzhen bus groups to align with future development plans in the Northern Metropolis area [52]. Employee and Operational Management - Employee costs accounted for approximately 55% of the group's total operating costs in 2022, a slight decrease from 56% in 2021 [51]. - The total remuneration for employees, excluding retirement costs and share-based payments, was HKD 3.8056 billion in 2022, down from HKD 3.8321 billion in 2021 [51]. - The group maintained over 13,000 employees as of December 31, 2022, consistent with the previous year [51]. Corporate Governance - The company has adhered to the applicable corporate governance code provisions as of December 31, 2022, with only two directors absent from the annual general meeting due to other commitments [54]. - The audit and risk management committee, along with management and independent auditors, has reviewed the accounting principles and policies adopted by the group for the fiscal year ending December 31, 2022 [55].

Financial Performance - The company reported a loss attributable to shareholders of HKD 94.5 million for the six months ended June 30, 2022, compared to a profit of HKD 20.2 million for the same period in 2021, representing a negative variance of HKD 114.7 million[3]. - Kowloon Bus (1933) Limited recorded a post-tax loss of HKD 139.1 million for the six months ended June 30, 2022, compared to a post-tax loss of HKD 36.9 million for the same period in 2021, a negative variance of HKD 102.2 million[4]. - Long Win Bus Company recorded a post-tax loss of HKD 25.4 million for the six months ended June 30, 2022, compared to a profit of HKD 2.7 million for the same period in 2021, a negative variance of HKD 28.1 million[5]. - Revenue for the six months ended June 30, 2022, was HKD 2,946.7 million, a decrease of 13.5% compared to HKD 3,408.8 million for the same period in 2021[43]. - Operating loss for the period was HKD 173.5 million, compared to an operating profit of HKD 17.0 million in the previous year[43]. - The company incurred a net cash outflow from operating activities of HKD 182.6 million, a decline from a cash inflow of HKD 215.1 million in the same period of 2021[49]. - The company reported a net loss for the period of HKD 94.5 million, a significant decline from a profit of HKD 20.2 million in the same period last year, highlighting the impact of operational challenges[56]. Revenue and Income - Fare revenue for Kowloon Bus was HKD 2.5723 billion, a decrease of HKD 403.8 million or 13.6% compared to HKD 2.9761 billion in the same period of 2021, primarily due to a significant drop in passenger volume caused by the fifth wave of COVID-19[4]. - Fare revenue for Long Win Bus was HKD 139.4 million, a decrease of HKD 17.9 million or 11.4% compared to HKD 157.3 million in the same period of 2021[5]. - Other income increased significantly to HKD 359.6 million, up from HKD 135.1 million, representing a growth of 166.5%[43]. - Revenue from the franchised public bus service was HKD 2,711.3 million, down 13.5% from HKD 3,133.0 million in the previous year[57]. - The company’s property holding and development segment reported revenue of HKD 25.4 million, a slight increase from HKD 23.8 million in the previous year[54]. Dividends and Shareholder Returns - The company did not recommend the declaration of an interim dividend for the six months ended June 30, 2022, and 2021[4]. - The company approved a dividend of HKD 232.6 million for the previous year, reflecting its commitment to returning value to shareholders despite recent losses[48]. - The company paid dividends to equity holders amounting to HKD 116.8 million, compared to HKD 109.4 million in the previous year, indicating a commitment to shareholder returns despite financial challenges[50]. Assets and Liabilities - Total assets as of June 30, 2022, amounted to HKD 17,735.3 million, an increase from HKD 17,186.5 million at the end of 2021[46]. - Current liabilities decreased to HKD 2,354.3 million from HKD 2,759.5 million, indicating improved liquidity[46]. - Non-current liabilities increased to HKD 4,595.3 million from HKD 3,507.8 million, reflecting higher long-term debt obligations[46]. - The company’s total equity decreased to HKD 13,140.0 million from HKD 13,678.7 million, indicating a reduction in shareholder value[46]. Capital Expenditure and Investments - The group's capital expenditure for the six months ended June 30, 2022, was HKD 668.7 million, a decrease from HKD 978.4 million in the same period of 2021[12]. - The company invested HKD 1,217.9 million in investing activities for the six months ended June 30, 2022, compared to HKD 481.6 million in the same period of 2021[49]. - The group purchased property, plant, and equipment for HKD 349.5 million during the six months ended June 30, 2022, down from HKD 615.7 million in the same period of 2021[69]. Debt and Financing - The group's net debt as of June 30, 2022, was HKD 2.7391 billion, an increase from HKD 1.8950 billion on December 31, 2021[14]. - The group’s cash and cash equivalents decreased to HKD 303.1 million from HKD 796.3 million in the previous year, indicating a liquidity contraction[50]. - The company reported a significant increase in new bank loans, totaling HKD 3,190.0 million, compared to HKD 1,500.0 million in the same period last year[50]. Operational Efficiency and Future Outlook - The group plans to expand its electric bus fleet, with 52 double-decker electric buses ordered, aiming for one-eighth of the fleet to be electric by 2025[21]. - The group has initiated the installation of approximately 30,000 solar panels by the end of 2023 to promote renewable energy usage[21]. - The group anticipates a recovery in passenger volume as COVID-19 restrictions ease, with ongoing projects expected to provide stable returns for shareholders[22]. - The board of directors remains optimistic about long-term growth, emphasizing a commitment to shareholder value and strategic investments[86]. Shareholder Information - As of June 30, 2022, the total number of shares held by directors amounted to 35,182,018, representing 7.408% of the issued shares[25]. - The company has a total of 3,317,532 shares held in private trusts by director Lei Zhongyuan and his family members[26]. - The company’s directors collectively hold a significant portion of shares, indicating strong insider ownership and alignment with shareholder interests[25]. Stock Options and Director Interests - The company has not granted any stock options under its stock option plan during the six months ending June 30, 2022[29]. - The stock options plan was adopted on May 26, 2016, allowing the board to grant options to employees for a period of ten years[29]. - The total number of stock options granted to various directors is 3,675,000, with a vesting period starting from November 19, 2021, until November 18, 2025[30]. - The company has no non-beneficial interests held by directors in the company's share capital as of June 30, 2022[27].

Sustainability and Environmental Goals - The company aims for its entire fleet to use new energy by 2050, aligning with carbon neutrality policies from the government[3]. - KMB aims to achieve carbon neutrality by 2050, with a long-term goal of converting its entire fleet to new energy buses[46]. - The group plans to purchase 500 electric buses over the next five years, which will account for one-eighth of the current fleet of over 4,000 buses[46]. - KMB plans to have a total of 82 electric buses in service by the end of 2023, with a roadmap to fully electrify its fleet by 2050[54]. - The company is actively exploring energy-saving solutions to enhance energy efficiency and contribute to carbon neutrality in Hong Kong[53]. - KMB plans to install 22,000 solar panels across its facilities, generating over 10 million kWh of renewable energy and reducing carbon emissions by up to 5,400 tons annually[46]. - The company has installed over 3,500 solar photovoltaic panels at bus depots and stations to enhance renewable energy use and reduce greenhouse gas emissions[192]. - The company has introduced electric patrol vehicles and established charging facilities at major depots to support environmental performance[189]. - The company has implemented a waste management strategy that includes recycling and responsible disposal of various waste types, including wastewater and chemical waste[198]. - The company has adopted a mileage-based oil change program, resulting in a 40% reduction in oil consumption and waste oil generation[191]. Financial Performance - Revenue for the year ended December 31, 2021, was HKD 7,202.0 million, representing a 16% increase from HKD 6,190.9 million in 2020[29]. - Profit attributable to equity holders of the company decreased by 40% to HKD 245.0 million from HKD 408.6 million in the previous year[29]. - The company's equity attributable to equity holders increased by 4% to HKD 13,678.7 million from HKD 13,186.3 million[29]. - The net debt increased by 140% to HKD 1,895.0 million from HKD 788.8 million in the previous year[29]. - The year-end share price was HKD 12.80, down 15% from HKD 14.98 in 2020[34]. Operational Efficiency and Service Quality - The group operates over 4,000 buses, covering 423 routes in Hong Kong, making it the largest public bus operator in the region[9]. - The group is focused on enhancing operational efficiency and service quality through the introduction of innovative technologies[6]. - The company has established a comprehensive management framework to monitor daily operations and long-term investments[3]. - The company emphasizes risk management to address climate and social changes, ensuring positive value for shareholders and stakeholders[3]. - The company has implemented electronic payment systems across over 4,000 buses, enhancing cashless payment options for passengers[49]. - The company has implemented various measures to minimize environmental impact, including waste reduction, recycling, and compliance with local environmental regulations[166]. Community Engagement and Social Responsibility - The company is committed to corporate social responsibility, providing job opportunities for individuals with special learning needs and promoting community support for the elderly[54]. - KMB organized free ride days for seniors in December 2021, allowing them to travel for free on designated routes, demonstrating community engagement[65]. - The company actively participates in community activities and utilizes various platforms to engage with the public on sustainability issues[138]. - The company has established various channels for stakeholder communication, including mobile apps and social media platforms[134]. Innovation and Technology - The company is collaborating with SmarTone and Teksbotics to explore the introduction of a 5G autonomous driving system in Hong Kong[38]. - The company has implemented advanced technologies to reduce roadside emissions, including the use of near-zero sulfur diesel and the acquisition of the latest low-emission bus models[189]. - The introduction of the GreenRoad driver feedback system has led to a reduction in the fleet's average accident rate by approximately 10%, with over 80% of drivers achieving a satisfactory safety level[153]. - The driving monitoring system utilizes image processing and advanced facial recognition technology to detect driver alertness, providing immediate alerts in case of fatigue[154]. Governance and Compliance - The board consists of 9 non-executive directors, 5 independent non-executive directors, and 1 executive director, ensuring strong corporate governance[131]. - The group has implemented a systematic enterprise risk management system, submitting key risk performance indicator reports to the audit and risk management committee three times a year[131]. - The group adheres strictly to the Hong Kong Employment Ordinance, prohibiting child labor and forced labor in any form[132]. - The group has established a whistleblowing policy to encourage reporting of misconduct, with no reported incidents of corruption during the reporting period[133]. Challenges and Future Outlook - KMB has faced challenges due to the pandemic, with expectations that bus passenger volume and revenue will not return to pre-pandemic levels in the short term[51]. - The company acknowledges the impact of government regulations on its financial performance, particularly regarding fare adjustments which require government approval[57]. - Fuel price fluctuations represent a significant financial risk, impacting the company's cost structure and overall financial stability[58].

Financial Performance - The group's unaudited profit attributable to shareholders for the six months ended June 30, 2021, was HKD 20.2 million, a favorable variance of HKD 72 million compared to a loss of HKD 51.8 million for the same period in 2020[5]. - Earnings per share for the six months ended June 30, 2021, was HKD 0.04, an improvement of HKD 0.16 compared to a loss of HKD 0.12 per share for the same period in 2020[5]. - Long Win Bus Company recorded a post-tax profit of HKD 2.7 million for the six months ended June 30, 2021, a favorable variance of HKD 15.8 million compared to a loss of HKD 13.1 million for the same period in 2020[7]. - The group recorded a post-tax profit of HKD 6.4 million from its transportation business in mainland China for the six months ended June 30, 2021, compared to a post-tax loss of HKD 95.6 million in the same period of 2020[12]. - Revenue for the six months ended June 30, 2021, was HKD 3,408.8 million, an increase of 10.9% compared to HKD 3,073.3 million for the same period in 2020[48]. - The total comprehensive income for the period was HKD 77.9 million, compared to a total comprehensive loss of HKD 30.3 million in the previous year[49]. - The company reported a total revenue of HKD 3,417.2 million for the six months ended June 30, 2021, compared to HKD 3,084.0 million for the same period in 2020, representing an increase of approximately 10.8%[60]. Revenue and Costs - Total fare revenue for Kowloon Bus was HKD 2.976 billion, an increase of HKD 348.7 million or 13.3% compared to HKD 2.627 billion for the same period in 2020[6]. - Total operating costs for Kowloon Bus were HKD 3.2374 billion, an increase of HKD 59.8 million or 1.9% compared to HKD 3.1776 billion for the same period in 2020, primarily due to rising international fuel prices[6]. - The total salary expenses for the six months ended June 30, 2021, were HKD 19.419 billion, a decrease from HKD 20.167 billion for the same period in 2020, accounting for about 55% of total operating costs[22]. - The operating loss for the bus operations segment was HKD 34.4 million for the first half of 2021, an improvement from a loss of HKD 38.3 million in the same period of 2020[60]. Assets and Liabilities - As of June 30, 2021, the group's total investment properties and other assets amounted to HKD 11.4312 billion, an increase from HKD 10.9536 billion as of December 31, 2020[14]. - The group's net borrowings as of June 30, 2021, were HKD 1.8287 billion, up from HKD 788.8 million as of December 31, 2020[16]. - The company's total equity as of June 30, 2021, was 13,157.2 million HKD, a slight decrease from 13,186.3 million HKD at the end of 2020[51]. - The company’s total liabilities included deferred tax liabilities of 1,116.0 million HKD as of June 30, 2021, compared to 1,123.4 million HKD at the end of 2020[51]. Cash Flow and Financing - The company reported a net cash inflow from operating activities of 215.1 million HKD for the six months ended June 30, 2021, down from 457.1 million HKD in the same period of 2020[54]. - The company incurred a total cash outflow from investing activities of 481.6 million HKD, compared to 798.5 million HKD in the prior year[54]. - The company’s cash and cash equivalents decreased significantly, with a reduction in bank deposits maturing over three months amounting to 708.2 million HKD[54]. - The company incurred a net cash outflow from financing activities of HKD 70.7 million for the first half of 2021, compared to an inflow of HKD 464.1 million in the same period of 2020[55]. Investments and Development - The carrying value of the Kwun Tong site, classified as a development investment property, was HKD 3.3674 billion as of June 30, 2021, an increase from HKD 3.0054 billion as of December 31, 2020[11]. - The group is focused on developing recurring revenue sources through the redevelopment of properties in Tuen Mun for long-term income[26]. - A project located in Kwun Tong is expected to be completed next year, providing stable returns to shareholders[26]. Challenges and Future Outlook - The group anticipates financial challenges in the second half of the year due to reduced passenger volume and rising international oil prices[23]. - The group expects a recovery in passenger volume as local and mainland COVID-19 situations improve and quarantine measures are gradually relaxed[26]. Employee and Community Engagement - The group expresses gratitude to employees for their contributions during challenging operational conditions and aims to enhance employee welfare and communication[26]. - The group is collaborating with medical clinics to expand vaccination services for employees and their families[24]. - The group is participating in a vaccination lottery organized by the Hong Kong General Chamber of Commerce to thank citizens for completing vaccinations[24]. Corporate Governance and Compliance - The company has adopted the corporate governance code and confirmed compliance with the relevant provisions during the review period[46]. - The interim financial report was reviewed in accordance with Hong Kong accounting standards, with no significant issues noted as of June 30, 2021[95]. - The company is required to comply with the relevant provisions of the Hong Kong Stock Exchange listing rules and Hong Kong accounting standards[94].

Operations and Services - The company operates approximately 4,000 buses, providing public bus services covering 417 routes in Hong Kong[14]. - The company has a fleet of 241 buses under the Dragon Bus Company, operating 38 routes connecting New Territories to Hong Kong International Airport[14]. - The company operates non-franchised bus services through subsidiaries, including Sunshine Bus Holdings[14]. - The company continues to optimize its route network and provide real-time information to enhance service quality[13]. - KMB operates approximately 4,000 buses across 417 routes, serving over 2.8 million passengers daily, making it the largest public bus operator in Hong Kong[65]. - The bus service network operated 417 routes by the end of 2020, adapting to changes in operational environments and population distribution[75]. - New bus routes were introduced, including route 82D to improve service in the Pak Shek Kok area, and routes 285 and 285A to facilitate access to the Fo Tan area[77][78]. - The company has implemented a series of enhanced cleaning measures for buses since March 2020 to improve passenger confidence in hygiene[55]. - The company is actively exploring new routes to meet changing passenger demands, particularly for local tourism and consumption[55]. Financial Performance - Total revenue for the year 2020 was HKD 6,190.9 million, a decrease of 24% from HKD 8,112.2 million in 2019[22]. - Profit attributable to equity holders was HKD 408.6 million, down 33% from HKD 605.3 million in the previous year[22]. - Earnings per share decreased by 35% to HKD 0.90 from HKD 1.38 in 2019[22]. - The total equity attributable to equity holders increased by 20% to HKD 13,186.3 million from HKD 10,971.7 million[22]. - The net debt decreased by 37% to HKD 788.8 million from HKD 1,250.7 million[22]. - The stock price at the end of 2020 was HKD 14.98, a decline of 26% from HKD 20.20 at the end of 2019[27]. - Kowloon Bus Company (KMB) recorded a post-tax profit of HKD 203.3 million in 2020, a decrease of HKD 111.6 million compared to 2019, with passenger volume dropping by 24.0% due to the COVID-19 pandemic[42]. - Long Win Bus Company reported a post-tax profit of HKD 600,000 in 2020, down HKD 53.1 million from 2019, with passenger volume declining significantly by 38.4%[42]. - The group reported a profit attributable to shareholders of HKD 1.9041 billion for the year ended December 31, 2020, an increase from HKD 1.2988 billion in 2019, primarily due to a non-recurring gain of HKD 1.4955 billion from the sale and revaluation of a 50% stake in TM Properties Investment Limited[41]. Safety and Health Measures - The company emphasizes safety as its top priority, implementing various measures to ensure excellent safety performance[8]. - The company has established a mask production line to meet health safety standards during the pandemic[30]. - KMB and Long Win enhanced safety measures by introducing advanced driving assistance systems and the "GreenRoad" driver feedback system to improve driving safety[49]. - The safety policy emphasizes the commitment to providing a safe and healthy environment for all users of the company's services, with ongoing training for maintenance personnel[137]. - The company has implemented a series of pandemic response measures, including the distribution of self-produced masks to employees and the installation of non-contact infrared thermometers at bus depots[160]. - The company established a cleanroom and mask production line in Hong Kong, becoming the first bus operator to provide self-produced masks for employees[163]. - The "Kowloon Bus Mask" achieved ASTM Level 2 certification, ensuring high-quality protection for both employees and passengers[162]. - The company launched a series of public health campaigns to promote safety measures among passengers[158]. Environmental Initiatives - The company is committed to introducing innovative technologies and environmentally friendly solutions to meet customer needs[10]. - The company has invested in 15 single-deck electric buses and is seeking government funding for double-deck electric buses to align with environmental policies[1]. - KMB has installed solar panels at multiple depots and plans to explore similar installations at satellite depots to contribute to zero-emission goals[1]. - The company is actively researching renewable energy and zero-emission bus technologies, including the introduction of solar-powered double-decker buses[190]. - The company has implemented measures to reduce greenhouse gas emissions and improve air quality, including the use of low-sulfur diesel and advanced emission reduction devices[192]. - KMB installed over 300 solar panels at the Tuen Mun depot to enhance renewable energy application, contributing to a 2% reduction in total electricity consumption[195]. - The company has installed charging facilities at major depots to support the development of electric buses[189]. - KMB and Long Win have introduced a total of 3,306 and 213 EU V or above licensed buses, respectively, primarily operating in low-emission zones to improve air quality[170]. Customer Engagement and Technology - The company launched a new rewards program "FUN Points Reward" to enhance customer engagement through its app[36]. - The upgraded App1933 provides real-time bus arrival information and additional features like traffic conditions and weather updates, improving passenger experience[85]. - Long Win introduced a diversified electronic payment system in March 2020, expanding to its entire fleet by May, allowing passengers more payment options, especially for those without Hong Kong dollars or Octopus cards[92]. - The company is focused on expanding its electronic payment systems, with KMB installing electronic payment systems on 500 buses to meet the needs of passengers[48]. - The "KMB x LWB FUN Points Reward Program" allows passengers to earn points for rewards while using the bus services[181]. Community and Social Responsibility - The company has engaged in community support activities, including donating customized bus stop signs to elderly care homes[51]. - The company has established a "Volunteer Team" that has accumulated over 340,000 hours of service during the pandemic[52]. - The company donated masks to local charities, helping vulnerable groups such as residents of subdivided flats and the homeless[161]. - The company received multiple awards in 2020, including the "15 Year+ Caring Company" logo from the Hong Kong Council of Social Service and the "Good Employer Award 2020" from the Labour Department[122]. - The average training hours per employee is 17.1 hours, with over 16% of employees being from minority groups, disabled individuals, or retirees[119]. Fleet and Infrastructure - The company has implemented 47 route restructuring plans in 2020 to enhance service efficiency and address overlapping routes[75]. - The fleet includes 442 Euro VI buses, 2,846 Euro V buses, 10 electric buses, and 8 supercapacitor buses, with an average fleet age of approximately 6.60 years[189]. - The company has modified approximately 200 buses to provide dual wheelchair spaces, mainly serving routes passing hospitals[170]. - KMB has upgraded 20 bus waiting shelters in 2020, increasing the total number to 2,609[180]. - The company has installed 1,775 seats at bus stops to improve accessibility for the elderly and disabled by the end of 2020[180]. Governance and Compliance - The board of directors consists of 9 non-executive directors, 5 independent non-executive directors, and 1 executive director, focusing on long-term development and shareholder value[124]. - The company has a comprehensive risk management system that identifies and manages risks, including those related to climate change, with reports submitted to the audit and risk management committee three times a year[124]. - The company has established a whistleblowing policy to encourage reporting of misconduct, bribery, and other violations, with no reported incidents of corruption during the reporting period[125]. - The company maintains a procurement process based on price, quality, and compliance with legal and contractual obligations, ensuring fair competition and preventing bribery[128].

Operations and Services - The group operates approximately 4,000 buses, covering 417 routes in Hong Kong[15] - The group reported a significant presence in the non-franchised transport sector with 390 buses under Sunshine Bus Holdings Limited[15] - The group operates a cross-border shuttle bus service between Hong Kong and Shenzhen, enhancing connectivity[15] - The group is positioned as a leader in the public transport industry in Hong Kong and mainland China[14] - The group has a strategic focus on environmental protection and sustainable business practices[12] - The group aims to enhance shareholder value while contributing to the social and economic development of the Greater China region[12] - The group is committed to providing innovative and high-quality services to meet customer needs[14] Financial Performance - Total revenue for 2020 was HKD 6,190.9 million, a decrease of 24% from HKD 8,112.2 million in 2019[23] - Profit attributable to equity holders was HKD 408.6 million, down 33% from HKD 605.3 million in 2019[23] - Earnings per share decreased to HKD 0.90, a decline of 35% from HKD 1.38 in 2019[23] - Total assets increased by 15% to HKD 19,301.6 million from HKD 16,717.4 million in 2019[23] - Net debt decreased by 37% to HKD 788.8 million from HKD 1,250.7 million in 2019[23] - The group reported a profit attributable to shareholders of HKD 1.9041 billion for the year ended December 31, 2020, an increase from HKD 1.2988 billion in 2019, primarily due to a non-recurring gain of HKD 1.4955 billion from the sale and revaluation of a 50% stake in TM Properties Investment Limited[42] - Excluding the non-recurring gain, the profit attributable to shareholders for 2020 was HKD 408.6 million, a decrease of HKD 196.7 million compared to 2019[42] Passenger Volume and Demand - Average daily passenger trips in Hong Kong fell to 2.20 million, a decrease of 25% from 2.93 million in 2019[23] - Passenger volume for KMB and LWB decreased by 24% and 38% respectively due to the pandemic, with expectations of low demand persisting in the "new normal"[56] - The passenger volume for the cross-border bus service dropped from 3.44 million in 2019 to 400,000 in 2020 due to the pandemic[105] - Kowloon Bus Company (KMB) recorded a post-tax profit of HKD 203.3 million in 2020, down HKD 111.6 million from 2019, with passenger volume decreasing by 24.0% year-on-year[43] - Long Win Bus Company reported a post-tax profit of HKD 600,000 in 2020, a decline of HKD 53.1 million compared to 2019, with passenger volume dropping significantly by 38.4% year-on-year[43] Safety and Health Measures - The group emphasizes safety as its top priority, implementing various measures to ensure high standards[9] - The company established a mask production line to enhance health safety measures during the pandemic[31] - The group has enhanced bus safety measures by introducing the "GreenRoad" driver feedback system to improve driving safety and habits[50] - The company introduced various public health measures during the pandemic, including non-contact thermometers and mask distribution[158] - The group introduced three types of ASTM Level 2 standard masks to meet family needs, ensuring employee safety during the pandemic[46] - KMB has implemented enhanced cleaning measures for buses and added ventilation systems to improve passenger confidence in hygiene[56] Environmental Initiatives - The group has a strategic focus on environmental protection and sustainable business practices[12] - KMB is investing in solar power installations across multiple depots to support its goal of zero emissions[57] - The company has implemented a diverse electronic payment system on its buses, supporting contactless payment methods[171] - KMB has introduced double-decker buses equipped with solar panels, which can reduce cabin temperature by approximately 8 to 10 degrees Celsius compared to non-equipped buses[191] - KMB and Long Win are actively researching renewable energy and zero-emission technologies, including a 324 kWh lithium iron phosphate electric bus with a range of 200 kilometers and zero emissions[191] - The company has adopted local scientific technology for medical-grade disinfection of its fleet[166] Community Engagement and Corporate Social Responsibility - The company has accumulated over 340,000 volunteer service hours during the pandemic, demonstrating commitment to community service[53] - KMB has donated retired buses to 34 schools for educational purposes, strengthening community ties[53] - The company has donated masks to various charitable organizations to assist vulnerable groups[165] - The company is actively involved in community activities and aims to establish long-term volunteer programs with charitable organizations[135] Technological Advancements - The company upgraded its App1933 in 2020, enhancing bus arrival time forecasts and adding real-time information from other bus operators, improving user experience[86] - The KMB app, App1933, has over 5 million downloads and 1 million daily active users, providing real-time bus arrival information and new features like location-based traffic updates[182] - KMB has installed various technological devices in buses, including speed limiters and remote messaging systems, to enhance safety performance[145] - The company has implemented a comprehensive occupational health and safety management system (ISO 45001) to optimize safety performance across all business areas[141] Governance and Compliance - The group emphasizes compliance with laws and regulations, with no reported incidents of corruption during the reporting period[127] - The board consists of 9 non-executive directors, 5 independent non-executive directors, and 1 executive director, focusing on long-term development and shareholder value[126] - The group has established a risk management system that identifies and manages risks, including climate change-related risks, with key performance indicators reported to the audit and risk management committee three times a year[126] - The group has implemented a procurement policy that ensures ethical standards and quality control in supplier relationships[130] Fleet Management - The mechanical reliability of the bus fleet was reported at 94,551 kilometers in 2020, indicating the average distance a bus can travel before experiencing a mechanical failure[69] - The fleet operation capability reached 93.96% during peak hours (7 AM to 9 AM) in 2020, reflecting the actual bus departures compared to the scheduled timetable[71] - As of December 31, 2020, the total fleet of KMB consisted of 4,009 buses, including 3,866 double-decker buses and 143 single-decker buses[75] - KMB added 259 new buses during the year, while 331 buses were retired, resulting in a net decrease of 72 buses[75] - KMB introduced 221 Euro VI ultra-low floor double-decker buses in 2020, with a total of 301 Euro VI buses and 8 single-decker electric buses ordered for delivery in 2021[75] Future Plans and Developments - The company plans to procure approximately 15 single-deck electric buses, with deliveries expected in the second half of 2021[54] - The company is exploring new route adjustments to meet changing passenger demands, particularly for suburban routes[56] - The company plans to add 5 Euro 6 ultra-low floor double-decker buses in 2021 to maintain an average fleet age of under 6 years[101] - The company is actively participating in government-funded projects to test the feasibility of double-decker electric buses in Hong Kong[54] - The opening of the Tuen Mun-Chek Lap Kok Tunnel is anticipated to enhance the overall transportation network in the Tuen Mun area, presenting future growth opportunities[54] Awards and Recognition - The group has received recognition for its public transport services, including multiple awards for service excellence in 2020[125] - The company emphasizes sustainable development and corporate social responsibility, receiving multiple awards in 2020 for its initiatives[124]

Financial Performance - The company reported a loss attributable to shareholders of HKD 51.8 million for the six months ended June 30, 2020, compared to a profit of HKD 302 million for the same period in 2019, representing a negative variance of HKD 353.8 million[8]. - The earnings per share for the first half of 2020 was HKD 0.12, down from HKD 0.69 in the same period of 2019, reflecting a decline of HKD 0.81 per share[8]. - Revenue for the six months ended June 30, 2020, was HKD 3,073.3 million, a decrease of 24.5% compared to HKD 4,073.5 million for the same period in 2019[47]. - The total comprehensive income for the period was a loss of HKD 51.8 million, compared to a total comprehensive income of HKD 303.3 million for the same period in 2019[53]. - The company reported a net loss attributable to equity holders of HKD 51.8 million for the period, compared to a profit of HKD 302.0 million in the prior year[71]. - The company reported a pre-tax loss of HKD 106.1 million, compared to a tax expense of HKD 52.3 million in the same period last year[68]. Revenue and Operating Costs - The fare revenue for Kowloon Bus in the first half of 2020 was HKD 2.627 billion, a decrease of HKD 826.6 million or 23.9% from HKD 3.454 billion in the same period of 2019[9]. - The fare revenue for Long Win Bus decreased by HKD 129.3 million or 40.7% to HKD 188.3 million in the first half of 2020, down from HKD 317.6 million in 2019[10]. - The total operating costs for Kowloon Bus decreased by HKD 235.3 million or 6.9% to HKD 3.1776 billion in the first half of 2020, down from HKD 3.4129 billion in 2019[9]. - The total operating costs for Long Win Bus decreased by HKD 29 million or 10.6% to HKD 24.54 million in the first half of 2020, compared to HKD 27.44 million in 2019[10]. - Public bus service fare revenue decreased to HKD 2,815.4 million, down 25.4% from HKD 3,771.6 million in the prior year[64]. Impact of COVID-19 - The group reported a significant decline in overall passenger volume due to the COVID-19 pandemic, impacting bus operations and revenue[27]. - The group anticipates disappointing financial performance and issued a profit warning in May 2020 due to ongoing challenges in the operating environment[27]. - The COVID-19 pandemic negatively impacted the group's operations and passenger volumes, prompting the implementation of various measures to mitigate its effects[98]. - The Hong Kong government introduced financial support measures for the passenger transport industry to alleviate some financial burdens on the group[98]. Employee and Operational Measures - The total employee compensation for the first half of 2020 was HKD 20.167 billion, slightly down from HKD 20.786 billion in the same period of 2019[26]. - The group has implemented measures to maintain operational sustainability, including a salary freeze for all employees and applying for government subsidies under the "Employment Support Scheme" due to a significant drop in passenger demand[28]. - The group has not laid off employees or reduced salaries since the outbreak of the pandemic, ensuring job stability for all staff[28]. - The group expresses gratitude to employees for their contributions during difficult times and is committed to enhancing employee welfare and communication[30]. Financial Position and Liquidity - As of June 30, 2020, the group's net borrowings amounted to HKD 1.3725 billion, an increase from HKD 1.2507 billion at the end of 2019[19]. - The group's capital expenditure for the first half of 2020 was HKD 651.8 million, compared to HKD 514.9 million in the same period of 2019, primarily for the Kwun Tong site development and new bus purchases[17]. - The group closely monitors its liquidity and financial resources to ensure sufficient cash flow for operations, loan repayments, capital expenditures, and future business expansion[18]. - As of June 30, 2020, the group's cash and bank deposits amounted to HKD 19.524 billion, an increase from HKD 14.559 billion as of December 31, 2019[22]. - The total undrawn bank credit was HKD 16.650 billion as of June 30, 2020, down from HKD 22.800 billion as of December 31, 2019[22]. Investments and Assets - The carrying value of the Kwun Tong site was HKD 2.7267 billion as of June 30, 2020, up from HKD 2.5316 billion at the end of 2019[14]. - The carrying value of the commercial building in Lai Chi Kok was HKD 28.4 million as of June 30, 2020, compared to HKD 29.4 million at the end of 2019[13]. - The carrying value of the factory property in Tuen Mun remained unchanged at HKD 1.9 million as of June 30, 2020[13]. - The company’s total assets as of June 30, 2020, were HKD 14,997.2 million, a slight decrease from HKD 15,155.5 million as of December 31, 2019[51]. - The company’s total equity as of June 30, 2020, was HKD 10,792.2 million, down from HKD 10,971.7 million at the end of 2019[51]. Shareholder Information - As of June 30, 2020, the company issued 10,879,685 shares at a price of HKD 15.04 per share as part of a scrip dividend scheme[43]. - The company has not granted any stock options under its stock option plan during the six months ended June 30, 2020[39]. - HSBC Trustee (C.I.) Limited holds 181,296,153 shares, representing 39.6% of the issued share capital[41]. - The company’s major shareholder, Sun Hung Kai Properties Limited, has significant interests in the company, holding over 30% of voting rights[42]. Government Support and Subsidies - The company received government subsidies to alleviate operational pressures due to the COVID-19 pandemic, including wage and fuel subsidies[65]. - The group anticipates that government subsidies for the second half of 2020 will exceed those received in the first half, although financial performance remains dependent on the pandemic's progression[30].