Annual Report 2023

272 2023 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 35 Material related party transactions (continued) (a) Transactions with related companies (continued) Notes: (continued) (x) On 29 December 2022, KTRE and TRL entered into the Office Premises Leasing Management Agreement and Retail Premises Leasing Management Agreement (collectively, the “Leasing Agreements”) with Sun Hung Kai Real Estate (Sales and Leasing) Agency Limited (“SHKRE(SL)”), a subsidiary of SHKP, 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. The amount paid and payable under the Leasing Agreements for the leasing management fees and other expense during the year amounted to $3,051,000 (2022: $Nil). Outstanding balance payable for these contracts at 31 December 2023 amounted to $383,000 (2022: $Nil). (xi) On 28 September 2023, KMB entered into the agreement (the “Cleaning Services Agreement”) with Nixon Cleaning Company Limited (“Nixon”), a subsidiary of SHKP, pursuant to which Nixon agreed to provide cleaning services to KMB at designated service locations, including premises, offices and depots. The amount paid and payable under the Cleaning Services Agreement during the year amounted to $3,481,872 (2022: $Nil). Outstanding balance payable for this contract at 31 December 2023 amounted to $3,481,872 (2022: $Nil). (xii) In 2022, the Group provided management service to a subsidiary of SHKP. The amount received and receivable for the service amounted to $3,677,000. Outstanding balance due from the company at 31 December 2022 amounted to $3,677,000. (xiii) In 2022, the Group acted as a platform to connect transport operators and certain members of SHKP and its subsidiaries as per their demand and request for contract hire service. The platform fees income received and receivable amounted to $2,473,000. Outstanding balances due from these companies at 31 December 2022 $259,000. (b) Key management personnel remuneration Remuneration for key management personnel represents amounts paid to the Company’s Directors as disclosed in note 7. (c) Applicability of the Listing Rules relating to connected transactions The related party transactions as described in note 35(a)(i) above constitute continuing connected transactions of the Company under Chapter 14A of the Listing Rules. The Company has complied with the reporting requirements under Chapter 14A of the Listing Rules in respect of the Shuttle Bus Service Contracts by including the relevant disclosures in the section headed “Continuing Connected Transactions” under “Financial Review” on pages 126 to 129 of this Annual Report whereas the transactions under the Other Shuttle Bus Service Contracts were exempt from the disclosure requirements in Chapter 14A of the Listing Rules pursuant to Rule 14A.76. The related party transactions as described in notes 35(a)(ii) and 35(a)(ix) above, in which the relevant SHKP Group companies and KSMS acted as agents for collection of the coach service fees and other expenses, did not fall within the definition of connected transactions of the Company under Chapter 14A of the Listing Rules. The related party transactions as described in notes 35(a)(iii), 35(a)(viii), 35(a)(x) and 35(a)(xi) above constitute continuing connected transactions of the Company under Chapter 14A of the Listing Rules. The Company has complied with the reporting requirements under Chapter 14A of the Listing Rules by including the relevant disclosures in the section headed “Continuing Connected Transactions” under “Financial Review” on pages 126 to 129 of this Annual Report. The related party transactions as described in notes 35(a)(vii), 35(a)(xii) and 35(a)(xiii) above constitute continuing connected transactions of the Company as defined in Chapter 14A of the Listing Rules. However, they are exempt from the disclosure requirements in Chapter 14A of the Listing Rules pursuant to Rule 14A.76. The related party transactions as described in notes 35(a)(iv), 35(a)(v) and 35(a)(vi) above constitute connected transactions of the Company as defined in Chapter 14A of the Listing Rules. The relevant reporting requirements pursuant to Chapter 14A of the Listing Rules have been complied with by including disclosures in the Company’s annual report published immediately following the entering into for transactions described in note 35(a)(iv) and 35(a)(v), and including the relevant disclosures in the section headed “Connected Transaction” under “Financial Review” on page 126 of this Annual Report for transaction described in note 35(a)(vi).