2016 — Page 141

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

MATERIAL RELATED PARTY AND CONNECTED TRANSACTIONS (Continued)

30

(b)

(ix)

(Continued)

Other material related party and connected transactions (Continued)

(x)

区

(xi)

(xii)

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.

No fee has been charged during the year. A total fee of HK$2,558,000 was charged to the Group for the year ended 31 December 2015. At 31 December 2016, an amount of HK$560,000 (2015: HK$596,000) remained unpaid and was included in trade and other payables.

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 and 31 December 2016 of HK$1,500,000 and HK$4,100,000, and for the years ending 31 December 2017 and 31 December 2018 of HK$1,600,000 and HK$1,500,000 respectively. A total fee of HK$688,000 (2015: HK$843,000) was charged to the Group during the year. At 31 December 2016, an amount of HK$688,000 (2015: HK$Nil) 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 and 31 December 2016 of HK$1,260,000 and HK$19,990,000, and for the years ending 31 December 2017 and 31 December 2018 of HK$16,740,000 and HK$970,000 respectively. In accordance with the contract entered into the Group, an amount of HK$80,595,000 (2015: HK$2,606,000), of which HK$15,955,000 (2015: HK$124,000) 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 2016, an amount of HK$39,283,000 (2015: HK$2,606,000) 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 Proposed TCS Development 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 and 31 December 2016 of HK$700,000 and HK$2,000,000, and for the years ending 31 December 2017 and 31 December 2018 of HK$600,000 and HK$200,000 respectively. A total fee of HK$216,000 (2015: HK$Nil) was charged to the Group during the year. At 31 December 2016, an amount of HK$96,000 (2015: HK$Nil) remained unpaid and was included in trade and other payables.

Hong Kong Ferry (Holdings) Company Limited Annual Report 2016

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