Annual Report 2020

2020 Annual Report Transport International Holdings Limited 107 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$22,944,545 respectively. Such annual cap amounts were determined with reference to the estimated medical and dental needs of the Group’s employees for such periods, the insurance premium rates as specified under the 2018/19 Medical and Dental Insurance Arrangement and the historical transaction with another insurer in respect of similar medical and dental insurance coverage provided to the Group. For the year ended 31 December 2020, the insurance premium paid and payable to SHKPI under the 2018/19 Medical and Dental Insurance Arrangement was HK$Nil (2019: HK$20,954,000). The cap amounts of the insurance premium payable by the Group to SHKPI under the 2019/20 Insurance Arrangements for the years ended 31 December 2019 and 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 2020, the insurance premium paid and payable to SHKPI under the 2019/20 Insurance Arrangements was HK$90,454,000 (2019: 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 year ended 31 December 2020 and the year ending 31 December 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. For the year ended 31 December 2020, the insurance premium paid and payable to SHKPI under 2020/21 Medical and Dental Insurance Arrangement was HK$21,428,000. The cap amounts of the insurance premium payable by the Group to SHKPI under the 2021/22 Insurance Arrangements for the years ending 31 December 2021 and 2022 as disclosed in the announcement dated 3 November 2020 were HK$132,500,000 and HK$99,500,000 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 2021/22 Insurance Arrangements. The insurance premium paid and payable by the Group under the 2018/19 Medical and Dental Insurance Arrangement, 2019/20 Insurance Arrangements, 2020/21 Medical and Dental Insurance Arrangement and 2021/22 Insurance Arrangements was and will be satisfied by internal resources of the Group. The transactions under the 2018/19 Medical and Dental Insurance Arrangement, 2019/20 Insurance Arrangements, 2020/21 Medical and Dental Insurance Arrangement and 2021/22 Insurance Arrangements are only subject to the reporting, announcement and annual review requirements of the Listing Rules and are exempt from the independent shareholders’ approval requirement.