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ANNUAL REPORT 9 Po Lun Street, Lai Chi Kok, Kowloon, Hong Kong Telephone: (852) 2786 8888 Facsimile: (852) 2745 0300

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ANNUAL REPORT 9 Po Lun Street, Lai Chi Kok, Kowloon, Hong Kong Telephone: (852) 2786 8888 Facsimile: (852) 2745 0300 TRANSPORT INTERNATIONAL HOLDIN INTERNATIONAL TRANSPORT TRANSPORT International HOLDINgS LIMITED TRANSPORT INTERNATIONAL HOLDINgS LIMITED 2008 ANNUAL REPORT 9 Po Lun Street, Lai Chi Kok, Kowloon, Hong Kong Telephone: (852) 2786 8888 Facsimile: (852) 2745 0300 www.tih.hk Stock Code: 62 g S LIMITED S Concept and design by YELLOW CREATIVE (HK) LIMITED BUILDING ON OUR The FSC logo identifies products which contain wood from well-managed forests certified in accordance with the rules of the Forest Stewardship Council. CORE STRENGTHS Cert no. SGS-COC-003534 TO ENSURE SUSTAINABLE BUSINESS EXCELLENCE 2,800,000 passenger trips per day 13,000 professional staff 2008 ANNUAL REPORT REPORT ANNUAL 2008 75 years’ experience CORECORECONTENTS STRENGTHS STRENGTHS 4 Group Profile 14 Financial and Operational 6 Behind the Brand Highlights 8 Business at a Glance 16 Corporate Milestones 2008 10 The Group’s Strategic 18 Chairman’s Letter Locations 24 A Conversation with the Managing Director BUILDING ON OUR CORE STRENGTHS TO ENSURE SUSTAINABLE BUSINESS EXCELLENCE The key to the development of the businesses of Transport International Holdings Limited (“TIH”) in Hong Kong and China Mainland lies in the Group’s core strengths: innovation, teamwork, efficiency and service excellence. Innovation drives our responsiveness to change, while teamwork is integral to our delivery of world class services. By reviewing and improving our operational efficiency, we are able to identify opportunities for increasing revenue and controlling costs. Our continuous commitment to service excellence attracts discerning customers who are looking for transport services that represent excellent quality as well as good value for money. It is by building on our core strengths that we are able both to maintain our position as a world leader in the transport industry and to ensure sustainable CORECORE STRENGTHS STRENGTHSbusiness excellence. 30 Corporate Governance Report 126 Senior Management 54 Management Discussion and Analysis 127 Corporate Executives • Operational Review 128 Financial Reports • Corporate Social Responsibility 200 Financial Summary • Financial Review 201 Corporate Directory 120 Directors’ Profiles GROUP PROFILE Over 75 years’ experience TRANSPORT INTERNATIONAL HOLDINGS LIMITED SERVICE EXCELLENCE The Group’s hallmark service excellence and dedication to continuous improvement are reflected in nearly ten years of ISO accreditation across the whole KMB organisation. In November 008, Sun Bus Limited, the flagship of the Group’s Non-franchised Transport Operations Division, also obtained ISO 9001:000 certification for the provision of non-franchised bus services, the first commercial non-franchised bus company in Hong Kong to achieve such accreditation. 2008 ANNUAL REPORT GROUP PROFILE WE ARE TRANSPORT INTERNATIONAL TRANSPORT INTERNATIONAL HOLDINGS LIMITED Transport International Holdings Limited (“TIH” or the “Company”, SEHK: 6) is a leading public transport operator in Hong Kong and in three major cities in China Mainland. TIH is the holding company of The Kowloon Motor Bus Company (19) Limited, Long Win Bus Company Limited, RoadShow Holdings Limited and a number of non-franchised transport providers. It also has business interests in property holdings and development in Hong Kong. TIH’s vision is to become a global leader in public transport. It aims to achieve this by adopting innovative solutions, listening to its customers’ needs and setting new standards for safety, service and efficiency. The Company’s mission is driven by a dedication to implementing sustainable business practices, enhancing shareholder value, and furthering the social and economic development of Greater China. As a driving force in the Greater China transport sector, we continue to leverage the strengths of our operating companies to drive forward the standard of public transport services, while linking millions together through constant innovation. 2008 ANNUAL REPORT BEHIND THE BRAND MISSION Our mission is to enhance shareholder value and contribute to the social and economic development of Greater China. This mission drives our business operations: D istinctive customer service R eliable performance I nnovation V alue for money E nvironmental responsibility S ustainable business practice By listening to our customers, identifying their expectations and developing innovative solutions, we raise the quality of our service in all areas of our operations. VISION Our vision to be a global leader in public transport is based on three pillars: understanding our customers’ needs, introducing innovative and proven technologies that further environmental preservation, and setting new standards for safety, service and efficiency. TRANSPORT INTERNATIONAL HOLDINGS LIMITED CORPORATE VALUES In line with our commitment to sustainable business excellence, our corporate values are based on delivering service standards that meet customer needs, operating with a consistent record of profitability for shareholders, and supporting the overall development of the communities where we conduct our business. BUSINESS AT A GLANCE TRANSPORT INTERNATIONAL HOLDINGS LIMITED HONG KONG Franchised Public Non-franchised Property Holdings and Bus Operations Transport Operations Development The Kowloon Motor Bus Sun Bus Holdings Limited Lai Chi Kok Properties Company (1933) Limited and its subsidiaries Investment Limited the flagship company of the Group, with Sun Bus Limited as the flagship has developed “Manhattan Hill”, a operates franchised public bus company, have over 360 buses prestigious multi-storey residential services with a fleet of over 3,900 which provide a wide range of non- complex situated at 1 Po Lun Street, buses on a network of some 400 franchised bus services to the Lai Chi Kok, Kowloon, Hong Kong. routes covering Kowloon, the New residential and commercial sectors Territories and Hong Kong Island. through chartered hire services. Long Win Bus New Hong Kong Bus LCK Commercial Company Limited Company Limited Properties Limited operates franchised public bus jointly operates with its Shenzhen owns the two-level retail podium of services with over 150 buses on 18 counterpart the 24-hour cross- Manhattan Hill, called “Manhattan routes linking the New Territories boundary shuttle bus service (or Mid-town”, which is situated at 1 Po “Huang Bus” service) between Lok with Hong Kong International Lun Street, Lai Chi Kok, Kowloon, Ma Chau in Hong Kong and Airport and North Lantau. Hong Kong and has an area of about Huanggang in Shenzhen. 50,000 square feet. Park Island Transport LCK Real Estate Limited Company Limited owns a 17-storey commercial office provides shuttle bus and ferry building which is situated at 9 Po services for Park Island, a Lun Street, Lai Chi Kok, Kowloon, prestigious residential development Hong Kong and has a total gross on Ma Wan Island. floor area of 156,700 square feet. TRANSPORT INTERNATIONAL HOLDINGS LIMITED China Mainland Media Sales Financial Services Mainland Transport Business Operations RoadShow Holdings KMB Financial Shenzhen Bus Group Limited and its Services Limited Company Limited subsidiaries manages and administers the is a Sino-foreign joint stock company market advertising in Hong Kong Group’s financial resources and that operates public bus and taxi through a proprietary Multi-media treasury functions. hire services in Shenzhen. On-board system and run a television programme syndication and media sales network on the Mainland. TIH Financial Services Beijing Beiqi Kowloon Limited Taxi Company Limited manages and administers the is a Sino-foreign joint stock company financing functions for the that operates taxi hire and car rental Manhattan Hill project. services in Beijing. Dalian HK Macau Motor Glance a at Business Bus Services Limited is a Sino-foreign co-operative joint venture that operates public bus services in Dalian City. 2008 ANNUAL REPORT CHINA MAINLAND THE GROUP’S STRATEGIC LOCATIONS Tin Shui Wai Beijing Beijing Dalian CHINA CHINA Tuen Mun Shenzhen Shenzhen Hong Kong Hong Kong International Airport Beijing Joint venture operating taxi hire and car rental businesses Dalian Joint venture operating public bus business Tung Shenzhen Chung Joint venture operating public bus and taxi hire businesses LANTAU ISLAND AVERAGE NUMBER OF PASSENGER TRIPS PER DAY BY MODE OF PUBLIC TRANSPORT IN HONG KONG IN 2008 (IN THOUSAND) Railways 4,058 TIH Group 2,774 (Franchised public bus operations) Minibuses 1,837 Taxis 1,082 Citybus 571 NWFB 479 Others 476 Ferries 147 10 TRANSPORT INTERNATIONAL HOLDINGS LIMITED Huanggang Sheung Shui Lok Ma Chau Fanling Tai Po Yuen Long NEW TERRITORIES Sha Tin Ma On Shan Sai Kung Tsuen Wan Tsing Yi KOWLOON Tseung Kwan O HONG KONG ISLAND THE GROUP’S BUS TERMINI, DEPOTS, FERRY PIERS AND CUSTOMER SERVICE CENTRES IN HONG KONG Locations Strategic Group’s The The Group’s headquarters Bus termini of “Huang Bus” Depots of The Kowloon Motor Bus Company (1933) Ferry piers of Park Island Transport Company Limited Limited (“KMB”) Bus termini of Park Island Transport Company Limited Depot of Long Win Bus Company Limited (“LWB”) High land area Bus termini of KMB and LWB Railways Customer service centres of KMB and LWB 2008 ANNUAL REPORT 11 FINANCIAL AND OPERATIONAL HIGHLIGHTS FOR THE YEAR ENDED 31 DECEMBER 2008 KMB and LWB serving about 2,800,000 passenger trips per day 12 TRANSPORT INTERNATIONAL HOLDINGS LIMITED Financial and Operational Highlights Operational and Financial EFFICIENCY The Group strives to control costs, increase productivity and
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