Annual Report 2019

231 Transport International Holdings Limited 2019 Annual Report Notes to the Financial Statements 33 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 Income/(expense) Nature of transactions 2019 2018 Note $’ 000 $’ 000 Service fees for provision of coach services (i) & (ii) 54,451 52,371 Insurance premium paid (iii) (109,935) (90,118) Amount paid and accrued for building management services (iv) (898) (818) Amount paid and accrued for project management service and lease modification (v) – – Amount paid and accrued for a building contract (vi) – – Advertising income (vii) 2,054 5,849 Notes: (i) During the year, the Group provided coach services (“Shuttle Bus Service Agreements”) 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 28 June 2019. The amounts received and receivable under the Shuttle Bus Service Agreements amounted to $10,979,000 (2018: $8,379,000). Subsequently during the year, the Group also provided coach services to certain subsidiaries of SHKP and the amounts received and receivable thereunder amounted to $1,507,000 (2018: $4,463,000). Outstanding balances due from these companies at 31 December 2019 amounted to $3,493,000 (2018: $3,312,000). (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 Arrangement”). The amounts received and receivable for these Coach Service Arrangements amounted to $41,965,000 (2018: $39,529,000). Outstanding balances due from these companies at 31 December 2019 amounted to $9,183,000 (2018: $10,619,000). (iii) In 2016, 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 2017 to 31 December 2018 (the “2017/18 Insurance Arrangements”). In 2017, the Group entered into contracts with SHKPI for the provision of medical and dental insurance services to the Group for the period from 1 January 2018 to 31 December 2019 (the “2018/19 Medical and Dental Insurance Arrangements”). In 2018, the Group entered into contracts with SHKPI for the provision of various kind of insurance services to the Group for the period from 1 January 2019 to 31 December 2020 (the “2019/20 Insurance Arrangements”). The amount paid and payable under the 2017/18 and 2019/20 Insurance Arrangements and 2018/19 Medical and Dental Insurance Arrangements during the year amounted to $109,935,000 (2018: $90,118,000). There was no outstanding balance payable for these contracts at 31 December 2019 (2018: outstanding balance receivable of $437,000).