Transport International Holdings Limited 2013 Annual Report
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Transport International Holdings Limited Transport International Holdings Limited 2013 Annual Report Transport International Holdings Limited 9 Po Lun Street, Lai Chi Kok, Kowloon, Hong Kong Telephone : (852) 2786 8888 Facsimile : (852) 2745 0300 www.tih.hk Stock Code: 62 Concept and design by YELLOW CREATIVE (HK) LIMITED 2013 Annual Report The FSC® logo identifies products which contain wood from well-managed forests certified in accordance with the rules of the Forest Stewardship Council. CORPORATE DIRECTORY BOARD OF DIRECTORS BOARD COMMITTEES REGISTRARS Dr Norman LEUNG Nai Pang * Audit Committee Hong Kong GBS, JP, LLD, BA Dr Eric LI Ka Cheung # Computershare Hong Kong Investor Chairman Gordon SIU Kwing Chue Services Limited John Anthony MILLER 17/F, Hopewell Centre Dr John CHAN Cho Chak * 183 Queen’s Road East GBS, JP, DBA(Hon), DSocSc(Hon), Nomination Committee Wan Chai, Hong Kong BA, DipMS, CCMI, FCILT, FHKIoD # Deputy Chairman Dr John CHAN Cho Chak Bermuda Dr Eric LI Ka Cheung MUFG Fund Services (Bermuda) ^ Raymond KWOK Ping Luen Gordon SIU Kwing Chue Limited JP, MA(Cantab), MBA, Hon DBA, 26 Burnaby Street Hon LLD Remuneration Committee Hamilton HM 11 Dr John CHAN Cho Chak # Bermuda ^ NG Siu Chan Dr Eric LI Ka Cheung William LOUEY Lai Kuen ^ Professor LIU Pak Wai REGISTER OF MEMBERS Book closure for 2014 AGM: BSc(Econ) Standing Committee 15 May 2014 to 22 May 2014 Charles LUI Chung Yuen Dr Norman LEUNG Nai Pang # (both dates inclusive) M.H., BEc, AASA, FCILT Raymond KWOK Ping Luen Executive Director Dr John CHAN Cho Chak Book closure for 2013 final dividend: Charles LUI Chung Yuen 28 May 2014 ^ Winnie NG Edmond HO Tat Man BA, MBA(Chicago), MPA(Harvard), Winnie NG DIVIDENDS FCIM, CMILT, MHKIoD Interim (Non-executive Director and Alternate HK$0.15 per share, ^ COMPANY SECRETARY Director to Mr NG Siu Chan ) paid on 17 October 2013 Lana WOO * Dr Eric LI Ka Cheung MBA, BA, CGA, FCIS Final (proposed) GBS, OBE, JP, LLD, DSocSc, BA, HK$0.45 per share, Contents FCPA(Practising), FCA, FCPA(Aust.), FCIS REGISTERED OFFICE payable on 10 June 2014 Clarendon House, 2 Church Street Edmond HO Tat Man Hamilton HM 11, Bermuda STOCK CODE MA(Cantab), MBA, FCILT, MHKIoD 2 Group Profile The Stock Exchange of Hong Kong: 62 Business Review Managing Director PRINCIPAL OFFICE Bloomberg: 62HK 9 Po Lun Street, Lai Chi Kok 4 Business at a Glance * Reuters: 0062.HK 24 Hong Kong Franchised Gordon SIU Kwing Chue Kowloon, Hong Kong 6 The Group’s Strategic GBS, CBE, JP, MSS(Birmingham, UK) Public Bus Operations Telephone: (852) 2786 8888 CUSTOMER SERVICE HOTLINES Locations Facsimile: (852) 2745 0300 John Anthony MILLER ^ The Kowloon Motor Bus Company 42 Hong Kong Website: www.tih.hk 8 Financial and Operational (1933) Limited Non-franchised SBS, OBE, MPA(Harvard), BA(Lond) E-mail: [email protected] Telephone: (852) 2745 4466 Highlights Transport Operations Evan AU YANG Chi Chun Facsimile: (852) 2745 0600 AUDITOR 10 80th Anniversary Events BA, MBA 46 China Mainland KPMG Deputy Managing Director Long Win Bus Company Limited 12 Corporate Milestones 2013 Transport Operations 8/F, Prince’s Building, 10 Chater Road Telephone: (852) 2261 2791 Professor LIU Pak Wai * Central, Hong Kong 14 Chairman’s Letter 50 Property Holdings SBS, JP Sun Bus Limited and Development 18 Conversation with the Telephone: (852) 2371 2666 ^ Managing Director Allen FUNG Yuk Lun 52 Media Sales Business BA, Ph.D. 22 Management Discussion and Analysis Roger LEE Chak Cheong ^ (* Independent Non-executive Director of the Company) BSc, MSc, MICE, CEng (^ Non-executive Director of the Company) Godwin SO Wai Kei (# Committee Chairman) (Alternate Director to Mr Raymond KWOK Ping Luen, JP ^) This Annual Report is also available on our corporate website: www.tih.hk 00_TIH009_InF&B_AW_E.indd 2 14年4月4日 上午10:52 Central to the development of the businesses of Transport International Holdings Limited (“TIH”) is innovation. Besides enabling us to make changes that provide our customers with better services, innovation helps us attain our goal of sustainable development towards a greener environment. However diverse our businesses may be, they are all founded on a common commitment to technological innovation and service excellence, enabling us to attract discerning customers seeking services with the highest quality and excellent value for money. Sustainability Report 80 Financial Review 94 Corporate Governance 54 Care for Customers Report 62 Care for Employees 112 Remuneration Report 68 Care for the Environment 116 Directors’ Profiles 123 Key Corporate Executives 74 Engagement with Stakeholders 124 Financial Reports 78 Community Outreach 208 Financial Summary 209 Corporate Directory GROUP PROFILE Transport International Transport International Holdings Limited (“TIH” or the “Company”, SEHK: 62) is a leading public transport operator in Hong Kong and China Mainland. TIH is the holding company of The Kowloon Motor Bus Company (1933) 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 to be a first mover in the public transport industry is founded on a commitment to drive innovations that deliver a new era of services. We aim to achieve this vision by adopting the most innovative and environment-friendly solutions, delivering the highest customer-focused service standards, and optimising our route network efficiency. We retain a dedication to implementing sustainable business practices, enhancing shareholder value, and fostering the social and economic development of the Greater China region. 2 Transport International Holdings Limited Group Profile Mission Values Vision Our mission is to enhance Our corporate values are founded Our vision to be a global leader shareholder value while on attaining service standards and first mover in public transport contributing to the social and that meet customer expectations, is based on three principles: economic development of operating with a consistent record a thorough understanding Hong Kong and China Mainland. of profitability for shareholders, of our customers’ needs, the This mission drives our business and supporting the overall introduction of innovative and operations: development of the communities proven environment-friendly D istinctive customer service which we serve. technologies, and the setting of R eliable performance new standards for safety, service I nnovation and efficiency. V alue for money E nvironmental responsibility S ustainable business practice By developing innovative solutions and attending to the needs and expectation of our customers, we look to raise the quality of our services across our operations. 2013 Annual Report 3 BUSINESS AT A GLANCE Transport International Holdings Limited Hong Kong Franchised Public Bus Operations Media Sales Business Hong Kong Non-franchised Property Holdings Transport Operations and Development China Mainland Transport Operations Hong Kong Franchised Public Bus Operations THE KOWLOON MOTOR BUS LONG WIN BUS COMPANY (1933) LIMITED COMPANY LIMITED the flagship company of the Group, operates franchised public bus operates franchised public bus services services with 172 buses on 19 with a fleet of more than 3,800 buses on routes linking the New Territories a network of some 390 routes covering with Hong Kong International Kowloon, the New Territories and Hong Airport and North Lantau. Kong Island. Hong Kong Non-franchised Transport Operations SUN BUS HOLDINGS LIMITED AND NEW HONG KONG BUS ITS SUBSIDIARIES COMPANY LIMITED with Sun Bus Limited as the flagship jointly operates with its Shenzhen company, have 386 buses providing counterpart the 24-hour cross- a wide range of non-franchised boundary shuttle bus service (or bus services to the residential and “Huang Bus” service) between Lok Ma commercial sectors through chartered Chau in Hong Kong and Huanggang in hire services. Shenzhen. 4 Transport International Holdings Limited Business at a Glance China Mainland Transport Operations SHENZHEN BUS GROUP BEIJING BEIQI KOWLOON TAXI COMPANY LIMITED COMPANY LIMITED is a Sino-foreign joint stock company is a Sino-foreign joint stock company that operates public bus and taxi hire that operates taxi hire service in services in Shenzhen. Beijing. BEIJING BEIQI FIRST COMPANY LIMITED is a Sino-foreign joint stock company that operates car rental business in Beijing. Property Holdings and Development LCK REAL ESTATE LIMITED LCK COMMERCIAL owns a 17-storey commercial office PROPERTIES LIMITED building which is situated at 9 Po Lun owns the Manhattan Mid-town Street, Lai Chi Kok, Kowloon, Hong shopping mall, which is a two- Kong and has a total gross floor area level retail podium with an area of 156,700 square feet. of about 50,000 square feet situated at 1 Po Lun Street, Lai Chi Kok, Kowloon, Hong Kong. LAI CHI KOK PROPERTIES KT REAL ESTATE TM PROPERTIES INVESTMENT LIMITED LIMITED INVESTMENT LIMITED has developed Manhattan Hill, a owns a 50% interest in the site owns an industrial property at prestigious multi-storey residential at Kwun Tong Inland Lot No. 1 Kin Fung Circuit, Tuen Mun, New complex situated at 1 Po Lun Street, 240 at 98 How Ming Street, Territories, Hong Kong, comprising Lai Chi Kok, Kowloon, Hong Kong. Kwun Tong, Kowloon, Hong a single-storey high ceiling structure Kong. and a three-storey workshop building with a total gross floor area of about 105,900 square feet. Media Sales Business ROADSHOW MEDIA LIMITED* BUS POWER LIMITED* provides a media