2015 — Page 133

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

MATERIAL RELATED PARTY AND CONNECTED TRANSACTIONS (Continued)

28

(b)

Other material related party and connected transactions (Continued)

(xi)

(xii)

(xiii)

In September 2013, the Group appointed HLD Sub A as the project manager of the development of Hung Hom Inland Lot No. 555, Kowloon, Hong Kong located at the junction of Gillies Avenue South and Bulkeley Street, Hung Hom, Kowloon, Hong Kong (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 the respective ceilings for the year ended 31 December 2013 of HK$1,300,000, for the years ended 31 December 2014 and 31 December 2015 of HK$2,300,000 respectively, and for the year ending 31 December 2016 of HK$600,000. A total fee of HK$1,885,000 (2014: HK$2,245,000) was charged to the Group for the year. At 31 December 2015, an amount of HK$2,480,000 (2014: HK$3,525,000) 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 years ended 31 December 2014 and 31 December 2015 of HK$2,500,000 and HK$1,000,000 respectively, and for the year ending 31 December 2016 of HK$1,500,000. A total fee of HK$67,000 (2014: HK$166,000) was charged to the Group for the year. At 31 December 2015, no amount remained unpaid (2014: HK$166,000) 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 (the "Premises") 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. The letter agreement expired in April 2015.

In March 2015, the Group entered into a second letter agreement with HLD Sub B and HLD Sub B continued to act as the agent of the Group to lease the Premises for the continuation of the marketing services of the Hung Hom Property for the period from 5 April 2015 to the earlier of 4 July 2015 and the date on which the last residential unit in the Hung Hom Property is sold, subject to the ceiling of HK$1,000,000. The second letter agreement expired in July 2015.

In July 2015, the Group entered into a third letter agreement with HLD Sub B and HLD Sub B continued to act as the agent of the Group to lease the Premises for the continuation of the marketing services of the Hung Hom Property for the period from 5 July 2015 to the earlier of 4 October 2015 and the date on which the last residential unit in the Hung Hom Property is sold, subject to the ceiling of HK$1,000,000. The third letter agreement expired in October 2015.

A total fee of HK$2,558,000 (2014: HK$2,662,000) was charged to the Group for the year. At 31 December 2015, an amount of HK$596,000 (2014: HK$1,651,000) remained unpaid and was included in trade and other payables.

Hong Kong Ferry (Holdings) Company Limited Annual Report 2015

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