Annual Report 2022

2022 Annual Report Transport International Holdings Limited 113 The amounts of the insurance premium payable by the Group to SHKPI under the 2023/24 Insurance Arrangements for the years ending 31 December 2023 and 2024, as disclosed in the announcement dated 29 December 2022, will be approximately HK$102,500,000 and HK$105,500,000 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 2023/24 Insurance Arrangements. The insurance premium paid and payable by the Group under the 2020/21 Medical and Dental Insurance Arrangement, 2021/22 Insurance Arrangements, 2022 Supplemental Motor Insurance Arrangements and 2023/24 Insurance Arrangements were and will be satisfied by internal resources of the Group. The transactions under the 2020/21 Medical and Dental Insurance Arrangement, 2021/22 Insurance Arrangements, 2022 Supplemental Motor Insurance Arrangements and 2023/24 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 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 236 and 237 of this Annual Report, Sun Bus Limited has entered into various shuttle bus service contracts (“Shuttle Bus Services Agreements”) with certain subsidiaries of SHKP, pursuant to which Sun Bus Limited agreed to provide and operate various shuttle bus services for the period from 1 May 2020 to 31 December 2023. 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 5 August 2022. The cap amounts estimated to be receivable by Sun Bus Limited under the Shuttle Bus Services Agreements for the year ended 31 December 2022 and the year ending 31 December 2023 as disclosed in the announcement dated 5 August 2022 were HK$7,210,265 and HK$9,542,100 respectively. Such cap amounts were determined with reference to the historical amounts, the rates specified in the relevant contracts and the expected possible demand for the services. For the year ended 31 December 2022, the service fees received or receivable by Sun Bus Limited (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$5,876,000 (2021: HK$2,776,000). 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.