Annual Report 2023

128 2023 Annual Report Transport International Holdings Limited FINANCIAL REVIEW The cap 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 ended/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. For the year ended 31 December 2023, the leasing management fees and other expenses payable to SHKRE(SL) under 2023-2025 Office and Retail Premises Leasing Management Agreements were HK$3,051,000 and HK$Nil, respectively. The cap amounts of the property manager’s remuneration and other expenses payable by KTRE to KSMS under the 2023-2025 Property Management Agreement for each of the three years ended/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. For the year ended 31 December 2023, the property manager’s remuneration and other expenses payable to KSMS under 2023-2025 Property Management Agreement was HK$4,396,000. The office and retail premises leasing management fees and property manager’s remuneration 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. (d) KMB The Cleaning Services Agreement with Nixon Cleaning Company Limited (“Nixon”) On 28 September 2023, KMB entered into the Cleaning Services Agreement with Nixon, a wholly-owned subsidiary of SHKP, pursuant to which Nixon agreed to provide cleaning services to KMB at service locations designated by KMB, including premises, offices and depots for an initial term of two years commencing from 1 October 2023 to 30 September 2025, and an extended term of one year commencing from 1 October 2025 to 30 September 2026 with an exercisable option. The transactions contemplated under the Cleaning Services Agreement constitute continuing connected transactions of the Company, particulars of which were disclosed in the announcements of the Company dated 28 September 2023. The cap amounts of the cleaning service fees payable by KMB to Nixon under the Cleaning Service Agreement for the four years ended/ending 31 December 2023, 2024, 2025 and 2026, as disclosed in the announcement dated 28 September 2023, were approximately HK$3,481,872, HK$13,927,488, HK$13,962,561 and HK$10,550,835 respectively. Such annual cap amounts are determined based on the expected possible ad hoc demand for cleaning services and the agreed rates as specified under the Cleaning Services Agreement. For the year ended 31 December 2023, the cleaning service fees to Nixon under Cleaning Services Agreement was HK$3,481,872.