Annual Report 2019

092 Transport International Holdings Limited 2019 Annual Report Financial Review The cap amounts of the insurance premium payable by the Group to SHKPI under the 2017/18 Insurance Arrangements for the two years ended 31 December 2017 and 2018 as disclosed in the announcement dated 2 November 2016 were HK$77,000,000 and HK$80,000,000 respectively. Such 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 2017/18 Insurance Arrangements. For the year ended 31 December 2019, the insurance premium paid to SHKPI under the 2017/18 Insurance Arrangements was HK$2,951,000. The cap amounts of the insurance premium payable by the Group to SHKPI under the 2018/19 Medical and Dental Insurance Arrangement for the years ended 31 December 2018 and 2019 as disclosed in the announcement dated 1 November 2017 were HK$22,944,545 and HK$22,944,545 respectively. Such annual cap amounts were determined with reference to the estimated medical and dental needs of the Group’s employees for such periods, the insurance premium rates as specified under the 2018/19 Medical and Dental Insurance Arrangement and the historical transaction with another insurer in respect of similar medical and dental insurance coverage provided to the Group. For the year ended 31 December 2019, the insurance premium paid and payable to SHKPI under the 2018/19 Medical and Dental Insurance Arrangement was HK$20,954,000 (2018: HK$21,206,000). The cap amounts of the insurance premium payable by the Group to SHKPI under the 2019/20 Insurance Arrangements for the year ended 31 December 2019 and the year ending 31 December 2020 as disclosed in the announcement dated 1 November 2018 were HK$90,000,000 and HK$93,000,000 respectively. Such annual cap amounts are 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 2019/20 Insurance Arrangements. For the year ended 31 December 2019, the insurance premium paid and payable to SHKPI under the 2019/20 Insurance Arrangements was HK$86,030,000. The cap amounts of the insurance premium payable by the Group to SHKPI under the 2020/21 Medical and Dental Insurance Arrangement for the years ending 31 December 2020 and 2021 as disclosed in the announcement dated 1 November 2019 were HK$22,090,000 and HK$22,090,000 respectively. Such annual cap amounts were determined with reference to the estimated medical and dental needs of the Group’s employees for such periods, the insurance premium rates as specified under the 2020/21 Medical and Dental Insurance Arrangement and the historical transaction amount under the 2018/19 Medical and Dental Insurance Arrangement. The insurance premium paid and payable by the Group under the 2017/18 Insurance Arrangements, 2018/19 Medical and Dental Insurance Arrangement, 2019/20 Insurance Arrangements and 2020/21 Medical and Dental Insurance Arrangement was and will be satisfied by internal resources of the Group. The transactions under the 2017/18 Insurance Arrangements, 2018/19 Medical and Dental Insurance Arrangement, 2019/20 Insurance Arrangements and 2020/21 Medical and Dental Insurance Arrangement are only subject to the reporting, announcement and annual review requirements of the Listing Rules and are exempt from the independent shareholders’ approval requirement. (b) SUN BUS LIMITED (“Sun Bus”) and EAGLE WIN LIMITED (“Eagle Win”) Shuttle Bus Services Agreements with certain subsidiaries of Sun Hung Kai Properties Limited (“SHKP”) As described in note 33(a) to the financial statements on pages 231 and 232 of this Annual Report, Sun Bus Limited (an indirect wholly-owned subsidiary of the Company) and Eagle Win Limited (an indirect wholly- owned subsidiary of the Company) have entered into various shuttle bus service contracts (“Shuttle Bus Service Agreements”) with certain subsidiaries of SHKP, pursuant to which Sun Bus and Eagle Win agreed to provide and operate various shuttle bus services for the period from 15 July 2017 to 30 June 2021. The service fees for the provision of the shuttle bus services were charged in accordance with the rates specified in the relevant contracts, ranging from HK$380 to HK$530 per hour per bus, which were determined after taking into account factors such as the number and model of buses requested, the days and hours of services requested, the relevant costs and expected loads and routes, using the prevailing market rates as a price indicator, namely, the service fees charged for similar bus operations in the market. The transactions contemplated under the Shuttle Bus Service Agreements constitute continuing connected transactions of the Company, particulars of which were disclosed in the announcement of the Company dated 28 June 2019. The cap amounts estimated