Annual Report 2021

231 2021 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 33 Contingent liabilities At 31 December 2021 and 2020, guarantees were given to banks by the Company in respect of bank loans extended to certain wholly-owned subsidiaries. As at the end of the reporting period, the Directors do not consider it probable that a claim will be made against the Company under these guarantee arrangements. The maximum liability of the Company at the end of the reporting period under the guarantees is the amount of the facilities drawn down by the subsidiaries that are covered by the guarantees, being $1,675,000,000 (2020: $1,600,000,000). The Company has not recognised any deferred income in respect of the guarantee as its fair value cannot be reliably measured and there is no transaction price. 34 Material related party transactions In addition to the transactions and balances disclosed elsewhere in these financial statements, the Group has entered into the following material related party transactions: (a) Transactions with related companies Income/(expense) Nature of transactions 2021 2020 Note $’000 $’000 Service fees for provision of coach services (i) & (ii) 45,745 47,162 Insurance premium paid (iii) (136,470) (111,882) Amount paid and accrued for building management services (iv) (840) (886) Amount paid and accrued for project management service and lease modification (v) – – Amount paid and accrued for a building contract (vi) – – Advertising income (vii) 2,501 572 Service income (viii) 5,000 – Notes: (i) During the year, the Group provided coach services (“Shuttle Bus Service Agreements”) to certain subsidiaries of Sun Hung Kai Properties Limited (“SHKP”), a substantial shareholder of the Company, details of which were disclosed in the announcement of the Company dated 20 August 2020. The amounts received and receivable under the Shuttle Bus Service Agreements amounted to $2,776,000 (2020: $6,299,000). During the year, the Group also provided coach services to certain subsidiaries of SHKP (“Other Shuttle Bus Service Agreements”). The amounts received and receivable under the Other Shuttle Bus Service Agreements amounted to $4,230,000 (2020: $196,000). Outstanding balances due from these companies at 31 December 2021 amounted to $1,830,000 (2020: $1,864,000). (ii) The Group also provided coach services to residents of certain residential property developments managed by certain members of SHKP and its subsidiaries (“SHKP Group”) where the SHKP Group acts as agent for collection of the service fees (“Coach Service Arrangement”). The amounts received and receivable for these Coach Service Arrangements amounted to $38,739,000 (2020: $40,667,000). Outstanding balances due from these companies at 31 December 2021 amounted to $8,301,000 (2020: $11,093,000). (iii) In 2018, the Group entered into contracts with a subsidiary of SHKP, Sun Hung Kai Properties Insurance Limited (“SHKPI”), for the provision of various kind of insurance services to the Group for the period from 1 January 2019 to 31 December 2020 (the “2019/20 Insurance Arrangements”). In 2019, the Group entered into contracts with SHKPI for the provision of medical and dental insurance services to the Group for the period from 1 January 2020 to 31 December 2021 (the “2020/21 Medical and Dental Insurance Arrangement”). In 2020, the Group entered into contracts with SHKPI for the provision of various kind of insurance services to the Group for the period from 1 January 2021 to 31 December 2022 (the “2021/22 Insurance Arrangements”). The amount paid and payable under the 2020/21 Medical and Dental Insurance Arrangement and 2021/22 Insurance Arrangements during the year amounted to $136,470,000 (2020: $111,882,000). There was no outstanding balance payable for these contracts at 31 December 2021 (2020: $Nil).