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Hong Kong Ferry (Holdings) Company Limited Annual Report 2013
Notes to the Accounts (Continued)
28 MATERIAL RELATED PARTY AND CONNECTED TRANSACTIONS (Continued)
(b)
Other material related party and connected transactions (Continued)
(v)
(vi)
(vii)
In November 2008, the Group appointed a wholly-owned subsidiary of HLD as the agent of the Group for marketing of the TKT Property for the period from 16 June 2008 to the earlier of 15 December 2009
and the date on which the last residential unit in the TKT Property to be sold is sold. At 31 December
2013, an amount of HK$1,104,000 (2012: HK$1,104,000) remained unpaid and was included in trade and other payables.
In March 2011, the Group appointed a wholly-owned subsidiary of HLD ("HLD Sub A") as the project manager of the development of Green Code at No. 1 Ma Sik Road, Fanling, New Territories, Hong Kong (formerly known as Fanling Sheung Shui Town Lot No. 177) (the "Fanling Property") for a term of three years commencing from 1 April 2011 in consideration for a fee equivalent to the aggregate of 0.7% of the construction costs of the Fanling Property and other lump sum fees for supplementary services subject to a ceiling of HK$7,000,000; and 0.5% of the gross proceeds of sales (but excluding those sale and purchase agreements which were effected by a third party sales agent) subject to the total annual ceilings of the respective years. A total fee of HK$6,763,000 (2012: HK$5,580,000) was charged to the Group for the year. At 31 December 2013, an amount of HK$17,095,000 (2012: HK$10,332,000) remained unpaid and was included in trade and other payables.
In January 2013, the Group revised the annual cap of the Fanling Project Management Fee as set out in the Fanling Project Management Agreement of the respective years. The Group entered into the Supplemental Fanling Project Management Agreement with HLD Sub A and another wholly-owned subsidiary of HLD ("HLD Sub B"), pursuant to which the parties thereto have agreed to revise the maximum annual aggregate amounts of the Fanling Project Management Fee, the rights and obligations of HLD Sub A regarding the project sales and marketing services were transferred and novated to HLD Sub B.
In March 2011, the Group appointed another wholly-owned subsidiary of HLD as the main contractor for a fee of 5% on all works relating to the Fanling Property. The aggregate of the cost of works carried out by the main contractor or any connected persons (as defined in the Listing Rules) of the Company together with the 5% fee shall be subject to the total ceilings of the respective years. In accordance with the contract entered into with the Group, an amount of HK$384,973,000 (2012: HK$250,699,000), of which HK$27,440,000 (2012: HK$42,694,000) being cost of work carried out by the main contractor or the connected persons (as defined in the Listing Rules) of the Company and the 5% fee, was charged by the main contractor for the superstructure work of the development of the Fanling Property. At 31 December 2013, an amount of HK$275,538,000 (2012: HK$ 175,543,000), which included amounts payable to other subcontractors through this main contractor, remained unpaid and was included in trade and other payables.
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