Annual Report 2023

ANNUAL REPORT 2023 75 (vii) in respect of the provision of port-related services by members of the Group to members of the Sinotrans & CSC Group and the provision of cargo transportation and related agency services by members of the Sinotrans & CSC Group to members of the Group, details of which are set out in note (vii) to paragraph (b) of this section, the aggregate service fees for port-related services received by the Group for the year ended 31 December 2023 have not exceeded RMB55.00 million, the annual caps for the service fees for port-related services for the year ended 31 December 2023, and the aggregate service fees paid by the Group for cargo transportation and related agency services in the year ended 31 December 2023 have not exceeded RMB12.00 million, the annual caps for the service fees for cargo transportation and related agency services for the year ended 31 December 2023; and (viii) in respect of the provision of port and port- related comprehensive services to, and the receipt of port and port-related comprehensive services from, the CMPG Group, details of which are set out in note (viii) to paragraph (b) of this section, the aggregate service fees received by the Group from CMPG Group and paid by the Group to CMP Group for the year ended 31 December 2023 have not exceeded RMB32.00 million and RMB17.00 million, the aggregate annual caps for the year ended 31 December 2023, respectively. The Company has followed the pricing terms and policies set out in the respective announcements for each of the continuing connected transactions listed in paragraph (b) of this section. In particular, the Company has adequate internal controls in place to ensure that the respective pricing bases are complied with and that individual transactions are indeed conducted within the framework of the relevant agreements, for example: (i) the finance department of the Company performs half- yearly reporting of the actual transaction amounts; (ii) the Company specifically designates personnel from the relevant departments to monitor the actual transaction amounts and report to the management team on a quarterly basis to ensure that the respective annual caps are not exceeded; and (iii) the Company conducts internal control reviews on a continuous basis, including of its financial, operational and compliance controls. Save as disclosed above and in the section headed “Related Party Transactions” in note 39 to the consolidated financial statements, there are no other contracts of significance between the Company or any of its subsidiaries, and its controlling shareholders or any of its subsidiaries, at the end of the year or at any time during the year. The Company confirms that save and except for those connected transactions or continuing connected transactions under the Listing Rules set out in this section headed “Connected Transactions” of the Report of the Directors, the other transactions were not regarded as connected transactions or continuing connected transactions under the Listing Rules or were exempt from reporting, announcement and shareholders’ approval requirements under the Listing Rules. The connected transactions and continuing connected transactions as disclosed in this section headed “Connected Transactions” of the Report of the Directors have complied with the requirements of Chapter 14A of the Listing Rules. The Company’s auditor was engaged to report on the Group’s continuing connected transactions in accordance with Hong Kong Standard on Assurance Engagements 3000 (Revised) “Assurance Engagements Other Than Audits or Reviews of Historical Financial Information” and with reference to Practice Note 740 “Auditor’s Letter on Continuing Connected Transactions under the Hong Kong Listing Rules” issued by the Hong Kong Institute of Certified Public Accountants. The auditor has issued their unqualified letter containing their findings and conclusions in respect of the continuing connected transactions disclosed by the Group in paragraph (b) of this section in pages 69 to 74 of the Annual Report in accordance with Rule 14A.56 of the Listing Rules.