Annual Report 2024

124 2024 Annual Report Transport International Holdings Limited FINANCIAL REVIEW Beijing Beiqi First Company Limited ( 北京北汽福斯特股份有限公司 ) (“BBF”) Established in April 2013 as a Sino-foreign joint stock company with the same shareholding structure as BBKT, BBF operates the car rental business formerly undertaken by BBKT. In respect of the provision of car rental services, BBF is well placed to take advantage of the business opportunities afforded by business commuters as well as by the wide variety of events, conferences and exhibitions that are held in the capital. As at 31 December 2024, BBF had over 1,000 vehicles available for charter mainly in Beijing and Tianjin. Continuing Connected Transactions Particulars of the following continuing connected transactions of the Group are set out below in compliance with the reporting requirements of Chapter 14A of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”): (a) THE GROUP Transactions with Sun Hung Kai Properties Insurance Limited (“SHKPI”) As described in note 35(a) to the financial statements on pages 262 to 263 of this Annual Report, on 29 December 2022, the Group entered into various insurance policies with SHKPI, a wholly-owned subsidiary of SHKP, which is a substantial shareholder of the Company, pursuant to which SHKPI agreed to provide to the Group insurance coverage, including a motor vehicle third party and passengers’ liability insurance and an employees’ compensation insurance coverage from 1 January 2023 to 31 December 2024 (the “ 2023/24 Insurance Arrangements ”). On 19 December 2024, the Group entered into various insurance policies with SHKPI, pursuant to which SHKPI agreed to provide to the Group insurance coverage, including a motor vehicle third party and passengers’ liability insurance and an employees’ compensation insurance coverage from 1 January 2025 to 31 December 2026 (the “ 2025/26 Insurance Arrangements ”). The transactions contemplated under the 2023/24 Insurance Arrangements and 2025/26 Insurance Arrangements constitute continuing connected transactions of the Company, particulars of which were disclosed in the announcements of the Company dated 29 December 2022 and 19 December 2024 respectively. The cap amounts of the insurance premium payable by the Group to SHKPI under the 2023/24 Insurance Arrangements for the years ended 31 December 2023 and 2024, as disclosed in the announcement dated 29 December 2022, were 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 2024, the insurance premium paid and payable to SHKPI under the 2023/24 Insurance Arrangements was HK$100,568,000 (2023: HK$93,279,000). The cap amounts of the insurance premium payable by the Group to SHKPI under the 2025/26 Insurance Arrangements for the years ending 31 December 2025 and 2026, as disclosed in the announcement dated 19 December 2024, were HK$40,500,000 and HK$41,500,000 respectively. Such annual cap amounts were determined mainly with reference to the historical transaction amounts, the number of vehicles and total payroll of employees and the insurance structure and the premium rates as specified under the 2025/26 Insurance Arrangements. The insurance premium paid and payable by the Group under the 2023/24 Insurance Arrangements and 2025/26 Insurance Arrangements were and will be satisfied by internal resources of the Group. The transactions under the 2023/24 Insurance Arrangements and 2025/26 Insurance Arrangements are only subject to the applicable reporting, announcement and annual review requirements of the Listing Rules but are exempt from the independent shareholders’ approval requirement.