Annual Report 2022

Transport International Holdings Limited 2022 Annual Report 114 FINANCIAL REVIEW (c) KT REAL ESTATE LIMITED (“KTRE”) The Office Premises Leasing Management Agreement and the Retail Premises Leasing Management Agreement with Sun Hung Kai Real Estate (Sales and Leasing) Agency Limited (“SHKRE(SL)”) and the Property Management Agreement with Kai Shing Management Services Limited (“KSMS”) On 29 December 2022, KTRE and Turbo Result Limited (being the owners in equal shares as tenants in common of The Millennity located at 98 How Ming Street, Kwun Tong) entered into the Office Premises Leasing Management Agreement and Retail Premises Leasing Management Agreement with SHKRE(SL), pursuant to which SHKRE(SL) was appointed as the exclusive marketing and leasing agent and administrators for the units in the office and retail premises and parking spaces in The Millennity for the terms of three years commencing from 1 January 2023 to 31 December 2025 (the “ 2023- 2025 Office and Retail Premises Leasing Management Agreements ”). On 29 December 2022, KTRE and TRL entered into the Property Management Agreement with KSMS, pursuant to which KSMS was appointed as the property manager for the units in the office/retail premises in The Millennity for the term of three years commencing from 1 January 2023 to 31 December 2025 (the “ 2023-2025 Property Management Agreement ”). The transactions contemplated under the 2023- 2025 Office and Retail Premises Leasing Management Agreements and the 2023-2025 Property Management Agreement constitute continuing connected transactions of the Company, particulars of which were disclosed in the announcements of the Company dated 29 December 2022. The amounts of the office and retail premises leasing management fees and other expenses payable by KTRE to SHKRE(SL) under the Office Premises Leasing Management Agreement and Retail Premises Leasing Management Agreement for each of the three years ending 31 December 2023, 2024 and 2025, as disclosed in the announcement dated 29 December 2022, will be approximately HK$186,525,000 and HK$54,290,000 each year respectively. Such annual cap amounts are determined based on the maximum number of units estimated to be let or licensed in The Millennity and the remuneration rates as specified under the 2023-2025 Office and Retail Premises Leasing Management Agreements. The amounts of the property management fees and other expenses payable by KTRE to KSMS under the 2023-2025 Property Management Agreement for each of the three years ending 31 December 2023, 2024 and 2025, as disclosed in the announcement dated 29 December 2022, will be approximately HK$7,185,000 each year. Such annual cap amounts are determined based on the number of units in the Millennity and the remuneration rates as specified under the 2023-2025 Property Management Agreement. The office and retail premises leasing management fees and property management fees and other expenses payable by KTRE under the 2023-2025 Office and Retail Premises Leasing Management Agreements and the 2023-2025 Property Management Agreement will be satisfied by internal resources of the Group. The transactions under the 2023-2025 Office and Retail Premises Leasing Management Agreements and the 2023-2025 Property Management Agreement are only subject to the reporting, announcement and annual review requirements of the Listing Rules and are exempt from the independent shareholders’ approval requirement.