NewWorld Development Company Limited
REPORT OF THE DIRECTORS
76
CONNECTED TRANSACTIONS
(continued)
(4) On 22 March 2012, New World Department Store China Limited (“NWDS”) and Chow Tai Fook Jewellery Group
Limited (“CTFJ”) entered into a master concessionaire counter agreement (the “Master Concessionaire Counter
Agreement”) commencing from 24 April 2012 up to and including 30 June 2014, pursuant to which members of the
NWDS Group (i.e. NWDS and its subsidiaries) and the CTFJ Group (i.e. CTFJ and its subsidiaries) may from time to
time enter into definitive concessionaire agreements in relation to any transactions arising from the concessionaire
arrangements or rental agreements in respect of retailing counters for the sale of jewellery products and watches
by the CTFJ Group at properties in the PRC owned by, or leased to the NWDS Group or at which the NWDS Group
operates its business.
The Master Concessionaire Counter Agreement will be automatically renewed for a successive period of three
years after the initial term or subsequent renewal term subject to compliance with relevant requirements of the
Listing Rules.
On 11 April 2014, in anticipation of the expiry of the Master Concessionaire Counter Agreement on 30 June 2014,
NWDS and CTFJ proposed to renew the Master Concessionaire Counter Agreement for a further term of three
years, subject to compliance with relevant requirements of the Listing Rules. The directors of NWDS believe that
including CTFJ as one of the concessionaire counters in the department stores owned by the NWDS Group from
time to time enhances NWDS’ brand and product mix and raises the image and profile of such stores. As NWDS
is a subsidiary of the Company, the Directors of the Company believe that the Group will also benefit as a result of
the renewal of the Master Concessionaire Counter Agreement. The Master Concessionaire Counter Agreement
was automatically renewed from 1 July 2014 for three years ending 30 June 2017.
As CTFJ is a fellow subsidiary of CTF which is a substantial shareholder of the Company, CTFJ is therefore
a connected person of the Company under the Listing Rules. Accordingly, the entering into of the Master
Concessionaire Counter Agreement and all the transactions contemplated thereunder constitute continuing
connected transactions for the Company under the Listing Rules.
For the year ended 30 June 2015, the aggregate amount of the transactions under the Master Concessionaire
Counter Agreement amounted to approximately RMB81.8 million (equivalent to approximately HK$102.2 million),
which is within the annual cap of RMB205.0 million (equivalent to approximately HK$256.3 million).
