AMS Public Transport : AMSPT - 2023/24 Interim Report

AMS PUBLIC TRANSPORT HOLDINGS LIMITED

進智公共交通控股有限公司

Incorporated in the Cayman Islands with limited liability

於開曼群島註冊成立之有限公司

Stock Code

Independent auditor's report on review of condensed consolidated interim financial informationTo the Board of Directors of

AMS Public Transport Holdings Limited

(incorporated in the Cayman Islands with limited liability)

INTRODUCTION

We have reviewed the condensed consolidated interim financial information of AMS Public Transport Holdings Limited (the "Company") and its subsidiaries (together, the "Group") set out on pages 2 to 20, which comprises the condensed consolidated statement of financial position as at 30 September 2023, and the related condensed consolidated income statement, condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows for the six-month period then ended and other explanatory notes. The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited require the preparation of a report on the interim financial information to be in compliance with the relevant provisions thereof and Hong Kong Accounting Standard 34 "Interim Financial Reporting" ("HKAS 34") issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"). The directors of the Company are responsible for the preparation and presentation of these condensed consolidated interim financial information in accordance with HKAS 34.

Our responsibility is to express a conclusion on these condensed consolidated interim financial information based on our review, and to report our conclusion solely to you, as a body, in accordance with our agreed terms of engagement, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.

SCOPE OF REVIEW

We conducted our review in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the HKICPA. A review of these condensed consolidated interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Hong Kong Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

CONCLUSION

Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial information is not prepared, in all material respects, in accordance with HKAS 34.

Grant Thornton Hong Kong Limited

Certified Public Accountants

11th Floor

Lee Garden Two

28 Yun Ping Road

Causeway Bay

Hong Kong SAR

30 November 2023

Lam Wai Ping

Practising Certificate No.: P07826

Interim Report 2023/24

01

The board of directors (the "Board") of AMS Public Transport Holdings Limited (the "Company") hereby announce the unaudited condensed consolidated interim results of the Company and its subsidiaries (collectively referred to as the "Group") for the six months ended 30 September 2023, together with the unaudited comparative figures for the corresponding period in 2022. The unaudited condensed consolidated interim financial information has been reviewed by the auditors and the audit committee of the Company (the "Audit Committee").

CONDENSED CONSOLIDATED INCOME STATEMENT

For the six months ended 30 September 2023

		For the six months
		ended 30 September
		2023	2022
		Unaudited	Unaudited
	Notes	HK$'000	HK$'000
Revenue	4	194,597	181,461
Direct costs		(161,993)	(163,682)
Gross profit		32,604	17,779
Other revenue	5	4,772	4,466
Other income	5	20	37,467
Administrative expenses		(19,809)	(20,154)
Other operating expenses		(906)	(663)
Operating profit		16,681	38,895
Deficit on revaluation of
public light bus ("PLB") licences	12	(25,080)	(9,240)
Provision for impairment of public bus licences	12	-	(300)
Finance costs	7	(2,379)	(2,620)
(Loss)/Profit before income tax	8	(10,778)	26,735
Income tax (expense)/credit	9	(1,917)	353
(Loss)/Profit for the period attributable to
equity holders of the Company		(12,695)	27,088
(Loss)/Earnings per share attributable to
equity holders of the Company
- Basic (In HK cents)	11	(4.67)	9.96
- Diluted (In HK cents)	11	(4.67)	9.96

02 AMS Public Transport Holdings Limited

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 September 2023

For the six months

ended 30 September

20232022

Unaudited Unaudited

HK$'000HK$'000

(Loss)/Profit for the period	(12,695)	27,088
Other comprehensive income	-	-
Total comprehensive (expense)/income
for the period attributable to equity holders
of the Company	(12,695)	27,088

Interim Report 2023/24

03

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 September 2023

		30 September	31 March
		2023	2023
		Unaudited	Audited
	Notes	HK$'000	HK$'000
ASSETS AND LIABILITIES
Non-current assets
Property, plant and equipment	12	45,990	48,291
Investment properties	12	394	408
Right-of-use assets	12	114	31,718
PLB licences	12	66,000	91,080
Public bus licences	12	9,450	9,450
Goodwill	12	22,918	22,918
Deferred tax assets		2,790	3,576
		147,656	207,441
Current assets
Trade and other receivables	13	7,963	6,567
Tax recoverable		40	79
Bank balances and cash		57,244	68,651
		65,247	75,297
Current liabilities
Trade and other payables	14	44,622	40,371
Bank borrowings		10,094	11,084
Lease liabilities	15	114	32,642
Tax payable		1,241	484
		56,071	84,581
Net current assets/(liabilities)		9,176	(9,284)
Total assets less current liabilities		156,832	198,157
Non-current liabilities
Bank borrowings		113,437	117,930
Deferred tax liabilities		3,595	3,260
		117,032	121,190
Net assets		39,800	76,967
EQUITY
Share capital	16	27,191	27,191
Reserves		12,609	49,776
Total equity		39,800	76,967

04 AMS Public Transport Holdings Limited

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

			For the six months ended 30 September 2023
		Equity attributable to equity holders of the Company
			Share
	Share	Share	options	Capital	Accumulated
	capital	premium	reserve	reserve	losses	Total
	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000
As at 1 April 2023 (Audited)	27,191	74,612	398	19,296	(44,530)	76,967
Loss for the period and total comprehensive
expense for the period	-	-	-	-	(12,695)	(12,695)
Lapse of share options	-	-	(30)	-	30	-
2023 final dividends (note 10)	-	-	-	-	(24,472)	(24,472)
As at 30 September 2023 (Unaudited)	27,191	74,612	368	19,296	(81,667)	39,800
As at 1 April 2022 (Audited)	27,191	74,612	398	19,296	(75,658)	45,839
Profit for the period and total comprehensive
income for the period	-	-	-	-	27,088	27,088
2022 special dividends (note 10)	-	-	-	-	(8,157)	(8,157)
As at 30 September 2022 (Unaudited)	27,191	74,612	398	19,296	(56,727)	64,770

Interim Report 2023/24

05

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 30 September 2023

	For the six months
	ended 30 September
	2023	2022
	Unaudited	Unaudited
	HK$'000	HK$'000
Net cash inflows from operating activities	54,155	74,441
Net cash inflows/(outflows) from investing activities
Decrease in time deposit	10,000	-
Capital expenditure	(1,271)	(5,791)
Receipt of government subsidies for acquisition of property,
plant and equipment	225	-
Receipt of government subsidies for disposal of property,
plant and equipment	-	224
Proceeds from disposal of property, plant and equipment	-	30
Interest received	1,014	74
	9,968	(5,463)
Net cash outflows from financing activities
Dividends paid	(24,472)	(8,157)
Capital element of lease rentals paid	(33,196)	(31,661)
Interest element of lease rentals paid	(246)	(1,149)
Repayment of bank borrowings	(5,483)	(10,865)
Interest paid on bank borrowings	(2,133)	(1,471)
	(65,530)	(53,303)
Net (decrease)/increase in cash and cash equivalents	(1,407)	15,675
Cash and cash equivalents at the beginning of the period	58,651	36,377
Cash and cash equivalents at the end of the period	57,244	52,052

06 AMS Public Transport Holdings Limited

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

For the six months ended 30 September 2023

1. Corporate information
   The Company was incorporated in the Cayman Islands on 18 March 2003 as an exempted company with limited liability under the Companies Act Cap. 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands. The address of its registered office is Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, the Cayman Islands. The head office and principal place of business of the Company is located at 11th - 12th Floor, Abba Commercial Building, 223 Aberdeen Main Road, Aberdeen, Hong Kong. The shares of the Company have been listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") since 15 April 2004.
   The Company is an investment holding company and its subsidiaries (together referred to as the "Group") are principally engaged in the provision of franchised public light bus ("PLB") and residents' bus transportation services in Hong Kong.
   This unaudited condensed consolidated interim financial information is presented in Hong Kong dollars ("HK$"), unless otherwise stated.
2. Basis of preparation and significant accounting policies
   The unaudited condensed consolidated interim financial information has been prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA") and the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on the Stock Exchange (the "Listing Rules").
   This unaudited condensed consolidated interim financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements for the year ended 31 March 2023.
   This unaudited condensed consolidated interim financial information has been prepared on the historical cost basis except for PLB licences which are stated at fair values. The accounting policies and critical accounting estimates and judgements used in the preparation of this unaudited condensed consolidated interim financial information are consistent with those used in the Group's annual financial statements for the year ended 31 March 2023, except for the adoption of the amended Hong Kong Financial Reporting Standards ("HKFRSs") issued by the HKICPA which are relevant to and effective for the Group's financial statements for annual accounting period beginning on 1 April 2023 as disclosed in note 3 to this unaudited condensed consolidated interim financial information.
   New HKICPA guidance on the accounting implications of the abolition of the MPF-LSP offsetting mechanism
   In June 2022, the Government of the Hong Kong SAR (the "Government") gazetted the Hong Kong Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Ordinance 2022 (the "Amendment Ordinance"), which will eventually abolish the statutory right of an employer to reduce its long service payment ("LSP") and severance payment payable to a Hong Kong employee by drawing on its mandatory contributions to the mandatory provident fund ("MPF") scheme (also known as the "offsetting mechanism"). The Government has subsequently announced that the Amendment Ordinance will come into effect from 1 May 2025. In July 2023, the HKICPA published "Accounting implications of the abolition of the MPF-LSP offsetting mechanism in Hong Kong" ("Guidance") that provides comprehensive guidance on the accounting considerations relating to the offsetting mechanism and the abolition of the mechanism. The management has commenced the processes on implementing the change including additional data collection and impact assessment. However, the impact of the change is not reasonably estimable at the time this interim financial report is authorised for issue, as the Group has yet to fully complete its assessment of the impact of the Guidance.

Interim Report 2023/24

07

Notes to the Unaudited Condensed Consolidated Interim Financial Information

For the six months ended 30 September 2023

3. Adoption of new and amended HKFRSs

1. New and amended HKFRSs that are effective for annual period beginning on 1 April 2023
   In the current interim period, the Group has applied for the first time the following new and amended HKFRSs issued by the HKICPA, which are relevant to the Group's operations and effective for the annual period beginning on 1 April 2023 for the preparation of the Group's unaudited condensed consolidated interim financial information:

HKFRS 17	Insurance Contracts and Related Amendments
Amendments to HKAS 8	Definition of Accounting Estimates
Amendments to HKAS 12	Deferred Tax related to Assets and Liabilities arising from a
	Single Transaction
Amendments to HKAS 12	International Tax Reform - Pillar Two Model Rules

The adoption of the new and amended HKFRSs had no material impact on how the results and financial position for the current and prior periods have been prepared and presented.

1. Issued but not yet effective HKFRSs
   The HKICPA has issued a number of amended HKFRSs that are not yet effective and have not been early adopted by the Group for the financial year beginning on 1 April 2023.

Amendments to HKAS 1	Classification of Liabilities as Current or Non-current and related
	amendments to Hong Kong Interpretation 51
Amendments to HKAS 1	Non-current Liabilities with Covenants1
Amendments to HKAS 21	Lack of Exchangeability2
Amendments to HKFRS 16	Lease Liability in a Sale and Leaseback1

Amendments to HKFRS 10 and HKAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture3

• Effective for annual periods beginning on or after 1 January 2024

• Effective for annual periods beginning on or after 1 January 2025

• Effective date not yet determined

The directors anticipate that all of the pronouncements will be adopted in the Group's accounting policy for the first period beginning on or after the effective date of the pronouncement. The new and amended HKFRSs are not expected to have impact on the condensed consolidated interim financial information.

08 AMS Public Transport Holdings Limited

Notes to the Unaudited Condensed Consolidated Interim Financial Information

For the six months ended 30 September 2023

4. Revenue

The Group is principally engaged in the provision of the franchised PLB and residents' bus transportation services in Hong Kong.

For the six months

ended 30 September

20232022

UnauditedUnaudited

HK$'000HK$'000

Franchised PLB services income	191,562	175,545
Residents' bus services income	3,035	2,352
Designated bus fleet services income (note)	-	3,564
	194,597	181,461

The Group derived all revenue from the provision of the franchised PLB, residents' bus transportation services and designated bus fleet services at a point in time in Hong Kong during the six months ended 30 September 2023 and 2022.

Note: During the period from late February 2022 to 30 April 2022, the Group provided designated bus fleet services for transporting the persons who tested positive for COVID-19 from their residences to the designated community isolation facilities.

5.	Other revenue and other income
			For the six months
			ended 30 September
			2023	2022
			Unaudited	Unaudited
			HK$'000	HK$'000
	Other revenue
	Advertising income	2,250	2,250
	Administration fee income	1,210	1,210
	Government subsidies (note i)	-	663
	Properties rental income	135	135
	Interest income	1,014	74
	Others	163	134
			4,772	4,466
	Other income
	Government subsidies (note ii)	-	37,409
	Gain on disposal of property, plant and equipment	-	30
	Sundry income	20	28
			20	37,467

Interim Report 2023/24

09