Annual Report 2023

270 2023 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 34 Contingent liabilities At 31 December 2023 and 2022, guarantees were given to banks by the Company in respect of bank loans extended to certain wholly-owned subsidiaries. As at the end of the reporting period, the Directors do not consider it probable that a claim will be made against the Company under these guarantee arrangements. The maximum liability of the Company at the end of the reporting period under the guarantees is the amount of the facilities drawn down by the subsidiaries that are covered by the guarantees, being $2,890,000,000 (2022: $2,490,000,000). The Company has not recognised any deferred income in respect of the guarantee as its fair value cannot be reliably measured and there is no transaction price. 35 Material related party transactions In addition to the transactions and balances disclosed elsewhere in these financial statements, the Group has entered into the following material related party transactions: (a) Transactions with related companies (Expense)/income Nature of transactions 2023 2022 Note $’000 $’000 Service fees for provision of coach services (i) & (ii) 43,914 42,582 Insurance premium paid (iii) (93,279) (115,117) Amount paid and accrued for project management service and lease modification (iv) – – Amount paid and accrued for a building contract (v) – – Amount paid and accrued for acquisition of hardware equipment and maintenance services (vi) – – Amount paid and accrued for property management services (vii) (887) (851) Amount paid and accrued for property manager’s remuneration and other expenses (viii) & (ix) (15,182) – Amount paid and accrued for leasing management services (x) (3,051) – Amount paid and accrued for cleaning services (xi) (3,482) – Service income (xii) – 3,677 Platform fees income (xiii) – 2,473 Notes: (i) During the year, the Group provided coach services (“Shuttle Bus Services Contracts”) to certain subsidiaries of Sun Hung Kai Properties Limited (“SHKP”), a substantial shareholder of the Company, details of which were disclosed in the announcement of the Company dated 5 August 2022. The amounts received and receivable under the Shuttle Bus Services Contracts amounted to $5,370,000 (2022: $5,876,000). During the year, the Group also provided coach services to certain subsidiaries of SHKP (“Other Shuttle Bus Service Contracts”). The amounts received and receivable under the Other Shuttle Bus Service Contracts amounted to $4,454,000 (2022: $2,101,000). Outstanding balances due from these companies at 31 December 2023 amounted to $1,134,000 (2022: $2,976,000). (ii) The Group also provided coach services to residents of certain residential property developments managed by certain members of SHKP and its subsidiaries (“SHKP Group”), where the SHKP Group acts as agent for collection of the service fees (“Coach Service Arrangements”). The amounts received and receivable for these Coach Service Arrangements amounted to $34,090,000 (2022: $34,605,000). Outstanding balances due from these companies at 31 December 2023 amounted to $8,571,000 (2022: $8,915,000).