Annual Report 2024

262 2024 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 35 Material related party transactions In addition to the transactions and balances disclosed elsewhere in these consolidated financial statements, the Group has entered into the following material related party transactions: (a) Transactions with related companies (Expense)/income Nature of transactions 2024 2023 Note $’000 $’000 Service fees for provision of coach services (i) & (ii) 41,081 43,914 Insurance premium paid (iii) (100,568) (93,279) Amount paid and accrued for property management services (iv) (909) (887) Amount paid and accrued for property manager’s remuneration and other expenses (v) & (vi) (16,331) (15,182) Amount paid and accrued for leasing management services (vii) (2,048) (3,051) Amount paid and accrued for cleaning services (viii) (13,927) (3,482) 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 $6,700,000 (2023: $5,370,000). Outstanding balances due from these companies at 31 December 2024 amounted to $1,355,000 (2023: $1,134,000). In 2023, 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 for 2023 amounted to $4,454,000. (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 $34,381,000 (2023: $34,090,000). Outstanding balances due from these companies at 31 December 2024 amounted to $8,995,000 (2023: $8,571,000). (iii) In 2022, the Group entered into contracts with a subsidiary of SHKP, Sun Hung Kai Properties Insurance Limited (“SHKPI”), for the provision of various kind of insurance services to the Group for the period from 1 January 2023 to 31 December 2024 (the “2023/24 Insurance Arrangements”). The amount paid and payable under the 2023/24 Insurance Arrangements during the year amounted to $100,568,000 (2023: $93,279,000). There was no outstanding balance payable for these contracts at 31 December 2024 (2023: $Nil). (iv) On 3 July 2007, Lai Chi Kok Properties Investment Limited, Royal Elite Service Company Limited (“Royal Elite”), a subsidiary of SHKP, and the first assignee of a residential unit of Manhattan Hill entered into a deed of mutual covenant (the “Deed”) pursuant to which the parties agreed that Royal Elite would act as the manager of Manhattan Hill. The amount paid and payable under the Deed during the year amounted to $909,000 (2023: $887,000). Outstanding balance payable for this contract at 31 December 2024 amounted to $122,000 (2023: $93,000). (v) On 29 December 2022, KT Real Estate Limited (“KTRE”), a wholly-owned subsidiary of the Company, and Turbo Result Limited (“TRL”), a subsidiary of SHKP, entered into the Property Management Agreement (the “Property Management Agreement”) with Kai Shing Management Services Limited (“KSMS”), a subsidiary of SHKP, pursuant to which KSMS was appointed as the property manager for the units in the office/ retail premises in The Millennity. The amount paid and payable under the Property Management Agreement for the property manager’s remuneration and other expenses during the year amounted to $5,620,000 (2023: $4,396,000). Outstanding balance payable for this contract at 31 December 2024 amounted to $1,328,000 (2023: $4,396,000). (vi) KSMS also incurred other management expenses on behalf of KTRE and TRL for the maintenance and improvements of The Millennity, where KSMS acts as an agent for the collection of fees and payments (“Management Arrangements”) on behalf of other independent vendors/ contractors. The amounts paid and payable for these Management Arrangements amounted to $10,711,000 (2023: $10,786,000). Outstanding balances payable at 31 December 2024 amounted to $2,319,000 (2023: $10,786,000).