Annual Report 2022

Transport International Holdings Limited 2022 Annual Report 112 FINANCIAL REVIEW Continuing Connected Transactions The particulars of the following continuing connected transactions of the Group are set out below in compliance with the reporting requirements of Chapter 14A of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”): (a) THE GROUP Transactions with Sun Hung Kai Properties Insurance Limited (“SHKPI”) As described in note 34(a) to the financial statements on pages 236 and 237 of this Annual Report, on 1 November 2019, the Group entered into an insurance policy with SHKPI, a wholly-owned subsidiary of SHKP, which is a substantial shareholder of the Company, pursuant to which the Group maintained medical and dental insurance coverage with SHKPI from 1 January 2020 to 31 December 2021 (the “ 2020/21 Medical and Dental Insurance Arrangement ”). On 3 November 2020, the Group entered into various insurance policies with SHKPI, pursuant to which SHKPI agreed to provide to the Group a motor vehicle third party and passengers’ liability insurance and an employees’ compensation insurance from 1 January 2021 to 31 December 2022 (the “ 2021/22 Insurance Arrangements ”). On 5 November 2021, the Group entered into certain supplemental insurance policies with SHKPI, pursuant to which the type of insurance covered or to be covered is motor vehicle third party and passengers’ liability insurance for a period of 12 months from 1 January 2022 to 31 December 2022 (the “ 2022 Supplemental Motor Insurance Arrangements ”). On 29 December 2022, the Group entered into various insurance policies with SHKPI, pursuant to which SHKPI agreed to provide to the Group a motor vehicle third party and passengers’ liability insurance and an employees’ compensation insurance coverage from 1 January 2023 to 31 December 2024 (the “ 2023/24 Insurance Arrangements ”). The transactions contemplated under the 2020/21 Medical and Dental Insurance Arrangement, 2021/22 Insurance Arrangements, 2022 Supplemental Motor Insurance Arrangements and 2023/24 Insurance Arrangements constitute continuing connected transactions of the Company, particulars of which were disclosed in the announcements of the Company dated 1 November 2019, 3 November 2020, 5 November 2021 and 29 December 2022, respectively. The cap amounts of the insurance premium payable by the Group to SHKPI under the 2020/21 Medical and Dental Insurance Arrangement for the years ended 31 December 2020 and 2021, as disclosed in the announcement dated 1 November 2019, were HK$22,090,000 and HK$22,090,000 respectively. Such annual cap amounts were determined with reference to the estimated medical and dental needs of the Group’s employees for such periods, the insurance premium rates as specified under the 2020/21 Medical and Dental Insurance Arrangement and the historical transaction amounts. For the year ended 31 December 2022, the insurance premium paid and payable to SHKPI under the 2020/21 Medical and Dental Insurance Arrangement was HK$Nil (2021: HK$21,370,000). The cap amounts of the insurance premium payable by the Group to SHKPI under the 2021/22 Insurance Arrangements for the years ended 31 December 2021 and 2022, as disclosed in the announcement dated 3 November 2020, were HK$132,500,000 and HK$99,500,000 respectively. Such annual cap amounts are determined mainly with reference to the historical transaction amounts, the estimated business requirements of the Group, including the estimated vehicles, staffing and fixed assets requirements, and the insurance premium rates as specified under the 2021/22 Insurance Arrangements. For the year ended 31 December 2022, the insurance premium paid and payable to SHKPI under the 2021/22 Insurance Arrangements was HK$79,617,000 (2021: HK$115,100,000). The cap amount of the insurance premium payable by the Group to SHKPI under the 2022 Supplemental Motor Insurance Arrangements for the year ended 31 December 2022, as disclosed in the announcement dated 5 November 2021, was HK$36,500,000. For the year ended 31 December 2022, the insurance premium paid and payable to SHKPI under the 2022 Supplemental Motor Insurance Arrangements was HK$35,500,000 (2021: HK$Nil).