Annual Report 2024

263 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 (continued) (a) Transactions with related companies (continued) Notes: (continued) (vii) 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 $2,048,000 (2023: $3,051,000). Outstanding balance payable for these contracts at 31 December 2024 amounted to $652,000 (2023: $383,000). (viii) On 28 September 2023, The Kowloon Motor Bus Company (1933) Limited (“KMB”), a wholly-owned subsidiary of the Company, 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 $13,927,000 (2023: $3,481,872). Outstanding balance payable for this contract at 31 December 2024 amounted to $6,209,000 (2023: $3,481,872). (ix) On 26 April 2010, KTRE and TRL entered into an agreement with Sun Hung Kai Real Estate Agency Limited (“SHKRE”), pursuant to which KTRE and TRL agreed to appoint SHKRE as the project manager for the management, supervision and control of the application for planning permission, the surrender and regrant of an industrial site at Kwun Tong Inland No.240, No. 98 How Ming Street, Kwun Tong, Kowloon, Hong Kong and its construction. The amount payable for project management services shall be a sum equivalent to whichever is the higher of (1) $20,000,000; and (2) the lower of (a) 1% of the project cost and (b) $25,000,000. The amount payable for lease modification services shall be in the sum of the lower of (1) $3.2 for each square foot of the permitted maximum gross floor area as approved under the lease modification; and (2) $3,840,000. There was no outstanding balance payable for these contracts at 31 December 2024 (2023: $Nil). (x) On 20 December 2018, KTRE, TRL and Yee Fai Construction Company Limited (“Yee Fai”) (a subsidiary of SHKP) entered into a building contract (the “Building Contract”) in which KTRE and TRL have engaged Yee Fai to carry out and complete the building works involving the construction of commercial properties in Kwun Tong (“The Millennity”). KTRE and TRL shall pay Yee Fai, in equal shares, the contract sum of $4,436,057,000 (i.e. $2,218,028,500 each), subject to adjustments in accordance with the Building Contract. Outstanding balance payable for this contract as at 31 December 2024 amounted to $62,506,000 (2023: $174,283,000). (xi) On 25 May 2023, KMB as purchaser and SmarTone Mobile Communications Limited (“SmarTone Mobile”), a subsidiary of SHKP, as vendor entered into a purchase contract, pursuant to which KMB agreed to purchase and SmarTone Mobile agreed to supply the hardware, software and documentation for people counting system (“PCS”) and Wi-Fi system and provide a suite of one-stop solutions for the design, management, implementation, installation, maintenance, training and after-sale support associated with PCS. The total consideration under the purchase contract amounted to $46,316,210, comprising the initial purchase price for all PCS units and Wi-Fi systems units and the subsequent maintenance fees for periods up to 31 October 2025. Outstanding balance payable for this contract at 31 December 2024 amounted to $11,889,000 (2023: $11,889,000).