2013 — Page 123

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)

(xiv) In December 2013, the Group appointed HLD Sub B as the sales manager of the development of the Hung Hom Property for a term of three years commencing from 1 January 2014 in consideration for a fee of 0.5% of the gross proceeds of sale (but excluding those sale and purchase agreements which were effected by a third party sales agent) subject to the annual ceilings for the year ending 31 December 2014, 31 December 2015 and 31 December 2016 of HK$2,500,000, HK$1,000,000 and HK$1,500,000

respectively. No cost has been charged for the year ended 31 December 2013.

(xv)

At 31 December 2013, HLD (as defined in the Listing Rules) beneficially owned approximately 33.33% (2012: 31.36%) of the issued share capital of the Company.

Dr. Lee Shau Kee, a director of the Company, is interested in the above transactions as a substantial

shareholder of HLD.

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30

To the extent the above transactions constituted connected transactions (as defined in the Listing

Rules), the Group had complied with the relevant requirements under Chapter 14A of the Listing Rules.

(c) Applicability of the Listing Rules relating to connected transactions

The related party transactions in respect of notes 28(b)(vi), (vii), (viii), (ix), (x), (xi), (xii), (xiii) and (xiv) above constitute connected transactions and/or continuing connected transactions (as defined in Chapter 14A of the Listing Rules). The disclosures required by Chapter 14A of the Listing Rules are provided in the paragraph headed "Connected Transactions" in the Report of the Directors as set out in the Company's annual report for the year ended 31 December 2013.

NON-ADJUSTING EVENTS AFTER THE REPORTING PERIOD

After the balance sheet date, the directors proposed a final dividend. Further details are disclosed in note 10.

COMPARATIVE FIGURES

As a result of the application of Revised HKAS 19, Employee benefits, certain comparative figures have been adjusted to conform to current year's presentation. Further details of this development are disclosed in note 1(c).

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