REPORT OF THE DIRECTORS CONTINUED)
DISCLOSURE PURSUANT TO RULES 13.20 AND 13.22 OF THE LISTIR (Continued)
Notes:
1.
2.
Such advances were funded (in proportion to the Group's 50% equity interest in the Joint Venture Company) by the Group's internal resources and from its cash deposits, to finance the payment of the land premium of HK$2,708,800,000 and professional fees incurred in relation to the acquisition of Tuen Mun Town Lot No. 547 located at Castle Peak Road, Castle Peak Bay, Area 48, Tuen Mun, New Territories, Hong Kong (the "Land") from the Government by public tender.
In May 2017, a loan facility agreement was entered into among, among others, the Joint Venture Company (as borrower), the Company (as guarantor), a subsidiary of Empire Group (as guarantor), Empire Group and the financial institutions named therein (as lenders) in relation to a term loan facility in the aggregate principal amount of HK$3,000,000,000 for the purpose of financing and refinancing the demolition cost, construction cost and professional fees in relation to the development on the Land and the selling and marketing expenses in relation thereto. The loan facility is secured by, among others, a corporate guarantee granted by the Company in respect of 50% of the loan facility.
The advances made by the Group to the Joint Venture Company consisted of an amount due from the Joint Venture Company and a loan to the Joint Venture Company. The amount due from the Joint Venture Company was unsecured, interest-bearing at a rate to be agreed between the Group and Empire Group and had no fixed terms of repayment (subject to the deed of subordination and assignment in favour of the lenders of the loan facility). The loan to the Joint Venture Company was unsecured, interest-bearing at a rate to be agreed between the Group and Empire Group and recoverable on demand (subject to the deed of subordination and assignment in favour of the lenders of the loan facility).
Pursuant to Rule 13.22 of the Listing Rules, a combined statement of financial position of the Company's affiliated companies (as defined in the Listing Rules) with financial assistance from the Group and the Group's attributable interest in those affiliated companies as at 31 December 2017 are presented as follows:
Non-current assets
Current assets
Current liabilities
Total assets less current liabilities
Non-current liabilities
Net liabilities
financial positi
13,981
2,781,614
(72,932)
6,991
1,390,807
(36,466)
2,722,663
(2,736,762)
1,361,332
(1,368,381)
(14,099)
(7,049)
The combined statement of financial position of the Company's affiliated companies was prepared by combining their statements of financial position, after making adjustments to conform to the Group's significant accounting policies and re-grouping into significant classification in the statement of financial position, as at 31 December 2017.
21
Hong Kong Ferry (Holdings) Company Limited Annual Report 2017