KMB parent warns of driving into lossBusiness | Winnie Lee 20 May 2020
Transport International (0062), the parent company of Kowloon Motor Bus, warned that it may record a net loss for the first half this year compared with its HK$302 million net profit a year ago.
The group said the loss was mainly due to the government's anti-pandemic measures, including the suspension of school, stringent border control measures and work from home arrangements, which resulted in a significant drop in its bus patronage and revenue from franchised and non-franchised bus operations.
In addition, the pandemic has also adversely affected the performance of the group's transport operations in the mainland, said the company, while the timing and degree of recovery remain uncertain.
The company has implemented a number of cost control measures to lessen the financial impact and its overall financial position remains healthy.
Moreover, the government has provided financial support to the passenger transport sector, which will provide an impetus for the second half.