Annual Report 2023

127 2023 Annual Report Transport International Holdings Limited The cap amounts of the insurance premium payable by the Group to SHKPI under the 2023/24 Insurance Arrangements for the years ended/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 were 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. For the year ended 31 December 2023, the insurance premium paid and payable to SHKPI under the 2023/24 Insurance Arrangements was HK$93,279,000 (2022: HK$Nil). The insurance premium paid and payable by the Group under the 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 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 SHKP As described in note 35(a) to the financial statements on pages 270 to 272 of this Annual Report, Sun Bus Limited has entered into various shuttle bus service contracts (“ Shuttle Bus Services Contracts ”) 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 Contracts constitute continuing connected transactions of the Company, particulars of which were disclosed in the announcement of the Company dated 5 August 2022. The cap amount of the service fees estimated to be receivable by Sun Bus Limited under the Shuttle Bus Services Contracts for the year ended 31 December 2023, as disclosed in the announcement dated 5 August 2022, was HK$9,542,100. Such annual cap amount was 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 2023, 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 Contracts amounted to HK$5,370,000 (2022: HK$5,876,000). The transactions contemplated under the Shuttle Bus Services Contracts are only subject to the reporting, announcement and annual review requirements of the Listing Rules and are exempt from the independent shareholders’ approval requirement. (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 No.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 a term 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 a 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.