30
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
MATERIAL RELATED PARTY AND CONNECTED TRANSACTIONS (Continued)
(b)
Other material related party and connected transactions (Continued)
(iv)
(v)
(vi)
In May 2006, the Group appointed a wholly-owned subsidiary of HLD ("HLD Sub C") as the main contractor for a fee of 5% on all works relating to the development of Shining Heights, Nos. 220-222 Tai Kok Tsui Road, Kowloon, Hong Kong (the "TKT 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 Group together with the 5% fee shall be subject to a total annual ceiling of HK$16,000,000 up to the period end of 31 March 2009. In September 2009, the prime cost contract extension letter was signed which all the terms and conditions remain unchanged except to extend the period of payment for the respective ceiling of HK$5,500,000 and HK$6,500,000 for the nine months ended 31 December 2009 and for the year ended 31 December 2010 respectively.
During the years ended 31 December 2016 and 2015, there were no change in cost estimates. At 31 December 2016, an amount of HK$2,294,000 (2015: HK$2,294,000), which included amounts payable to other subcontractors through this main contractor, remained unpaid and was included in trade and other payables.
In March 2011, the Group appointed another wholly-owned subsidiary of HLD ("HLD Sub D") as the main contractor for a fee of 5% on all works relating to 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"). 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 October 2014, the Group entered into a Fanling Prime Cost Contract Extension Letter with HLD Sub D to extend the period of payment of fees for the respective ceilings of HK$6,800,000 and HK$19,000,000 for the period from 1 June 2014 to 31 December 2014 and for the year ended 31 December 2015 respectively. During the year, as a result of change in the latest cost estimates, an amount of HK$36,266,000 (2015: HK$9,040,000) and HK$1,813,000 (2015: HK$452,000), represented a corresponding adjustment in fees, were credited to the Group in relation to the superstructure work of the development and the 5% fee on all works relating to the development of the Fanling Property. At 31 December 2016, an amount of HK$14,725,000 (2015: HK$131,938,000), which included amounts payable to other subcontractors through this main contractor, remained unpaid and was included in trade and other payables.
In September 2013, the Group appointed HLD Sub A as the project manager of the development of Hung Hom Inland Lot No. 555, Kowloon, Hong Kong located at the junction of Gillies Avenue South and Bulkeley Street, Hung Hom, Kowloon, Hong Kong (the "Hung Hom Property") for a term of three years commencing from 5 September 2013 in consideration for a fee equivalent to the aggregate of 1% of the construction costs of the Hung Hom Property and other lump sum fees for supplementary services subject to the respective ceilings for the year ended 31 December 2013 of HK$1,300,000, for the years ended 31 December 2014, 31 December 2015 and 31 December 2016 of HK$2,300,000, HK$2,300,000 and HK$600,000 respectively. A total fee of HK$595,000 (2015: HK$1,885,000) was charged to the Group during the year. The balance has been repaid during the year. At 31 December 2015, an amount of HK$2,480,000 remained unpaid and was included in trade and other payables.
Pursuant to the terms of the Hung Hom Project Management Agreement, the appointment of HLD Sub A as project manager expired in September 2016.
Hong Kong Ferry (Holdings) Company Limited
Annual Report 2016 137
SEMER I DALELĮ SEMIX LA Gia #VYE