2014 — Page 112

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

28 MATERIAL RELATED PARTY AND CONNECTED TRANSACTIONS (Continued)

Other material related party and connected transactions (Continued)

(b)

(xii)

(Continued)

(xiii)

(xiv)

(xv)

(xvi)

No cost has been charged for the year ended 31 December 2014. A total fee of HK$10,410,000 was charged to the Group for the year ended 31 December 2013. At 31 December 2013, an amount of HK$12,653,000 remained unpaid and was included in trade and other payables. The balance has been repaid during the year.

In September 2013, the Group appointed HLD Sub A as the project manager of the development of Hung Hom Inland Lot No. 555 (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 a ceiling of HK$2,300,000. A total fee of HK$2,245,000 (2013: HK$1,280,000) was charged to the Group for the year. At 31 December 2014, an amount of HK$3,525,000 (2013: HK$1,280,000) remained unpaid and was included in trade and other payables.

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 ended 31 December 2014, and the year ending 31 December 2015 and 31 December 2016 of HK$2,500,000, HK$1,000,000 and HK$1,500,000 respectively. A total fee of HK$166,000 (2013: HK$Nil) was charged to the Group for the year. At 31 December 2014, an amount of HK$166,000 (2013: HK$Nil) remained unpaid and was included in trade and other payables.

In August 2014, the Group entered into a letter agreement with HLD Sub B and appointed HLD Sub B as the agent of the Group to lease certain shops and spaces of Miramar Shopping Centre for the marketing services of the Hung Hom Property for the period from 5 August 2014 to the earlier of 4 April 2015 and the date on which the last residential unit in the Hung Hom Property is sold, subject to the respective ceilings of HK$3,000,000 for the period from 5 August 2014 to 31 December 2014 and HK$1,100,000 for the period from 1 January 2015 to 4 April 2015. A total fee of HK$2,662,000 was charged to the Group for the year. At 31 December 2014, an amount of HK$1,651,000 remained unpaid and was included in trade and other payables.

At 31 December 2014, HLD (as defined in the Listing Rules) beneficially owned approximately 33.33% (2013: 33.33%) 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.

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.

Hong Kong Ferry (Holdings) Company Limited Annual Report 2014