Annual Report 2023

180 2023 Annual Report Transport International Holdings Limited Directors’ Report Staff retirement schemes (continued) (a) Defined benefit retirement schemes (continued) The KMB Daily Rated Employees Scheme (i) The scheme was established with effect from 1 July 1983. (ii) The actuary of the scheme is Ms Wing Lui, Fellow of the Society of Actuaries of the United States of America. In the actuarial valuation, the attained age valuation method was used (see note below) for calculation of contributions paid to the scheme. Other major assumptions used in the valuation were: salary escalation at 4.0% per annum; mortality rates 2022 Hong Kong Life Tables; and normal retirement age of 60. (iii) The market value of the scheme assets at 31 December 2023 was HK$1,728,880,000 (2022: HK$1,734,081,000). (iv) On the basis of the assumptions made as to the future economic and demographic experience of the scheme, and assuming the past service surplus is to be utilised faster to offset the Group’s contribution requirement, the Group took a contribution holiday for the years ended 31 December 2023 and 2022. (v) The ongoing funding surplus in the scheme was HK$1,166,179,000 (2022: HK$1,102,413,000) and the solvency surplus was HK$1,168,388,000 (2022: HK$1,107,124,000) at 31 December 2023. Note: The obligations in respect of defined benefit retirement schemes included in the financial statements are calculated using the projected unit credit method under different actuarial assumptions (see notes 1(x)(ii) and 21 to the financial statements). (b) Defined contribution retirement scheme SHKP MPF Employer Sponsored Scheme (“the SHKP Scheme”) The Group is also a participating member of the SHKP Scheme, which is a defined contribution retirement scheme. A majority of those employees who do not participate in the defined benefit retirement schemes are covered by the SHKP Scheme which is administered by an independent trustee. The assets of the SHKP Scheme are held separately from those of the Group in independently administered funds. The Group is required to make contributions to the SHKP Scheme at rates ranging from 5% to 12% of the relevant employees’ salaries, depending on their length of service with the Group. The employees are required to make contributions to the SHKP Scheme at 5% of the employees’ relevant income as defined by the Hong Kong Mandatory Provident Fund Schemes Ordinance, subject to a cap of monthly relevant income of HK$30,000 (HK$25,000 prior to 1 June 2014). Contributions to the SHKP Scheme during the year are charged to profit or loss as incurred. Forfeited amounts due to resignation prior to the vesting of the benefits will be used to reduce the Group’s contributions made in that corresponding financial year. The amount of forfeited contributions utilised during the year and the amount available for use as at 31 December 2023 were insignificant to the Group. Bank loans Particulars of bank loans of the Group as at 31 December 2023 are set out in note 25 to the consolidated financial statements. Major customers and suppliers Income attributable to the five largest customers of the Group accounted for less than 30% of the total income of the Group for the year. Purchases attributable to the five largest suppliers of the Group accounted for less than 30% of the value of the Group’s total purchases for the year. Financial summary A summary of the results and of the assets and liabilities of the Group for the last ten financial years is set out on pages 275 and 276 of this Annual Report.