Annual Report 2021

105 2021 Annual Report Transport International Holdings Limited Continuing Connected Transactions The particulars of the following continuing connected transactions of the Group are set out below in compliance with the reporting requirements of Chapter 14A of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (the “Listing Rules”): (a) THE GROUP Transactions with Sun Hung Kai Properties Insurance Limited (“SHKPI”) As described in note 34(a) to the financial statements on pages 231 and 232 of this Annual Report, on 1 November 2018, the Group entered into various insurance policies with SHKPI, a wholly-owned subsidiary of SHKP, which is a substantial shareholder of the Company, pursuant to which SHKPI agreed to provide to the Group a motor vehicle third party and passengers’ liability insurance and an employees’ compensation insurance coverage from 1 January 2019 to 31 December 2020 (the “2019/20 Insurance Arrangements”). On 1 November 2019, the Group entered into an insurance policy with SHKPI, pursuant to which the Group maintained medical and dental insurance coverage with SHKPI from 1 January 2020 to 31 December 2021 (the “2020/21 Medical and Dental Insurance Arrangement”). On 3 November 2020, the Group entered into various insurance policies with SHKPI, pursuant to which SHKPI agreed to provide to the Group a motor vehicle third party and passengers’ liability insurance and an employees’ compensation insurance from 1 January 2021 to 31 December 2022 (the “2021/22 Insurance Arrangements”). On 5 November 2021, the Group entered into certain supplemental insurance policies with SHKPI, pursuant to which the type of insurance covered or to be covered is motor vehicle third party and passengers’ liability insurance for a period of 12 months from 1 January 2022 to 31 December 2022 (the “2022 Supplemental Motor Insurance Arrangements”). The transactions contemplated under the 2019/20 Insurance Arrangements, 2020/21 Medical and Dental Insurance Arrangement, 2021/22 Insurance Arrangements and 2022 Supplemental Motor Insurance Arrangements constitute continuing connected transactions of the Company, particulars of which were disclosed in the announcements of the Company dated 1 November 2018, 1 November 2019, 3 November 2020 and 5 November 2021 respectively. 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$93,000,000 respectively. Such annual cap amounts are determined mainly with reference to the historical transaction amounts, the estimated business requirements of the Group, including the estimated vehicles, staffing and fixed assets requirements, and the insurance premium rates as specified under the 2019/20 Insurance Arrangements. For the year ended 31 December 2021, the insurance premium paid and payable to SHKPI under the 2019/20 Insurance Arrangements was HK$Nil (2020: HK$90,454,000). 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 ended 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. For the year ended 31 December 2021, the insurance premium paid and payable to SHKPI under 2020/21 Medical and Dental Insurance Arrangement was HK$21,370,000 (2020: 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 year ended 31 December 2021 and the year ending 31 December 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. For the year ended 31 December 2021, the insurance premium paid and payable to SHKPI under 2021/22 Insurance Arrangements was HK$115,100,000.