NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
MATERIAL RELATED PARTY AND CONNECTED TRANSACTIONS (Continued)
30
(b)
Other material related party and connected transactions (Continued)
(ix)
(x)
(xi)
In October 2015, the Group appointed HLD Sub A as the project manager of the comprehensively planned development consisting of residential component together with ancillary supporting facilities at 208 Tung Chau Street, Sham Shui Po, Kowloon, Hong Kong (the "TCS Property" or the "Proposed TCS Development") for a term of three years commencing from 2 November 2015 in consideration for a fee equivalent to the aggregate of 1% of the construction costs of the Proposed TCS Development, subject to the annual ceilings for the years ended 31 December 2015, 31 December 2016 and 31 December 2017 of HK$1,500,000, HK$4,100,000 and HK$1,600,000, and for the year ending 31 December 2018 of HK$1,500,000 respectively. A total fee of HK$688,000 (2016: HK$688,000) was charged to the Group during the year. At 31 December 2017, an amount of HK$688,000 (2016: HK$688,000) remained unpaid and was included in trade and other payables.
In October 2015, the Group appointed HLD Sub C as the main contractor of the Proposed TCS Development for a fee of 5% on all works of the Proposed TCS Development. 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 subject to the annual ceilings for the years ended 31 December 2015, 31 December 2016 and 31 December 2017 of HK$1,260,000, HK$19,990,000 and HK$16,740,000, and for the year ending 31 December 2018 of HK$970,000 respectively. In accordance with the contract entered into the Group, an amount of HK$112,285,000 (2016: HK$80,595,000), of which HK$12,345,000 (2016: HK$15,955,000) 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 TCS Property during the year. At 31 December 2017, an amount of HK$33,840,000 (2016: HK$39,283,000) remained unpaid and was included in trade and other payables.
In October 2015, the Group appointed HLD Sub B as the sales manager of the Proposed TCS Development for a term of three years commencing from the date of the first initial sale of any residential units of the TCS Property in consideration of a sales fee of 0.5% of the gross proceeds of sale (but excluding those sale and purchase agreements which were effected by third party sales agent(s)) subject to the annual ceilings for the years ended 31 December 2015, 31 December 2016 and 31 December 2017 of HK$700,000, HK$2,000,000 and HK$600,000, and for the year ending 31 December 2018 of HK$200,000 respectively. No fee has been charged to the Group during the year ended 31 December 2017. A total fee of HK$216,000 was charged to the Group during the year ended 31 December 2016. At 31 December 2017, an amount of HK$NI! (2016: HK$96,000) remained unpaid and was included in trade and other payables.
151
Hong Kong Ferry (Holdings) Company Limited
Annual Report 2017