NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
27
OPERATING LEASE COMMITMENTS
At 31 December 2017, the total future minimum lease payments under non-cancellable operating leases are payable as follows:
Within 1 year
After 1 year but within 5 years
2017 HK$'000
2016
HK$'000
2,141
1,564
1,399
1,830
3,540
3,394
The Group leases a number of retail outlets and offices under operating leases. The leases typically run for an initial period of one to three years. Lease payments are usually fixed during the period of the leases. None of the leases includes contingent rentals.
28 CAPITAL COMMITMENTS
Capital commitments outstanding at 31 December 2017 not provided for in the financial statements were as follows:
29
Contracted for
Authorised but not contracted for
CONTINGENT LIABILITIES
Financial guarantees issued
At 31 December 2017, the Company has issued the following guarantees:
2017
HK$'000
2016 HK$'000
18,267
891
131,693
891
19,158
132,584
(a)
guarantees to certain suppliers in respect of granting or giving credit facilities to its wholly-owned subsidiaries; and
(b)
guarantees to banks in respect of banking facilities granted to its wholly-owned subsidiaries and a joint venture.
Under the guarantees, the Company is liable to the amount due from the subsidiaries and the joint venture to these respective parties in the event of any default and its liability shall at no time exceed the sum stated on the letters of guarantee.
At the end of the reporting period, the directors do not consider it probable that a claim will be made against the Company under any of the guarantees. The maximum liability of the Company at the end of the reporting period under the guarantees issued above is the outstanding amount due to the relevant parties by its wholly-owned subsidiaries and the joint venture, being HK$90,000 (2016: HK$110,000).
The Company has not recognised any deferred income in respect of the guarantees issued as its fair value cannot be reliably measured using observable market data and its transaction price was HK$Nil.
146
Hong Kong Ferry (Holdings) Company Limited
Annual Report 2017