Annual Report 2021

106 Transport International Holdings Limited 2021 Annual Report FINANCIAL REVIEW The amount of the insurance premium payable by the Group to SHKPI under the 2022 Supplemental Motor Insurance Arrangements for the year ending 31 December 2022 as disclosed in the announcement dated 5 November 2021 will be approximately HK$36,500,000. The insurance premium paid and payable by the Group under the 2019/20 Insurance Arrangements, 2020/21 Medical and Dental Insurance Arrangement, 2021/22 Insurance Arrangements and 2022 Supplemental Motor Insurance Arrangements was and will be satisfied by internal resources of the Group. The transactions under 2019/20 Insurance Arrangements, 2020/21 Medical and Dental Insurance Arrangement, 2021/22 Insurance Arrangements and 2022 Supplemental Motor Insurance Arrangements are only subject to the reporting, announcement and annual review requirements of the Listing Rules and are exempt from the independent shareholders’ approval requirement. (b) SUN BUS LIMITED, HOI TAI TOURS LIMITED, KING YIP TRAVEL COMPANY LIMITED, CAG LIMITED, BUN TANG BUS SERVICE COMPANY LIMITED, FRONTIER TRANSPORTATION LIMITED and SAU LUEN P.L.B. COMPANY LIMITED (collectively “Sun Bus Group”) Shuttle Bus Services Agreements with certain subsidiaries of Sun Hung Kai Properties Limited (“SHKP”) As described in note 34(a) to the financial statements on pages 231 and 232 of this Annual Report, Sun Bus Group (a series of indirect wholly-owned subsidiaries of the Company) has entered into various shuttle bus service contracts (“Shuttle Bus Services Agreements”) with certain subsidiaries of SHKP, pursuant to which Sun Bus Group agreed to provide and operate various shuttle bus services for the period from 1 March 2019 to 20 March 2022. The service fees for the provision of the shuttle bus services were charged in accordance with the rates specified in the relevant contracts, ranging from approximately HK$350 to HK$530 per hour per bus, which were determined after taking into account factors such as the number and model of buses requested, the days and hours of services requested, the relevant costs and expected loads and routes, using the prevailing market rates as a price indicator, namely, the service fees charged for similar bus operations in the market. The transactions contemplated under the Shuttle Bus Services Agreements constitute continuing connected transactions of the Company, particulars of which were disclosed in the announcement of the Company dated 20 August 2020. The cap amounts estimated to be receivable by Sun Bus Group under the Shuttle Bus Services Agreements for the two years ended 31 December 2020 and 2021 and year ending 31 December 2022 as disclosed in the announcement dated 20 August 2020 were HK$6,850,114, HK$4,206,232 and HK$244,413 respectively. Such cap amounts were determined with reference to (i) the rates specified in the relevant contracts; and (ii) the expected demand for the services. For the year ended 31 December 2021, the service fees received or receivable by Sun Bus Group (inclusive of the fees for basic services, overtime services, on-demand additional services, and toll charges) under the Shuttle Bus Services Agreements amounted to HK$2,776,000 (2020: HK$6,299,000). The transactions contemplated under the Shuttle Bus Services Agreements are only subject to the reporting, announcement and annual review requirements of the Listing Rules and are exempt from the independent shareholders’ approval requirement.