Annual Report 2016
183
Financial Section
46 Related Party Transactions
In addition to those disclosed in other sections of the consolidated financial statements, the following significant related
party transactions have been entered into by the Group during the year:
2016
2015
HK$m
HK$m
Joint ventures
Provision of construction work services (note (a))
1,199.6
676.8
Interest income (note (b))
85.1
204.9
Rental expenses (note (c))
246.0
277.5
Management services fee income (note (d))
87.9
–
2016
2015
HK$m
HK$m
Related companies (note (k))
Provision of construction work services (note (a))
33.9
249.6
Rental income (note (c))
145.2
132.1
Concessionaires commissions (note (e))
76.1
102.3
Management services fee income (note (d))
221.1
100.0
Sales of goods, prepaid shopping cards and vouchers (note (f))
110.9
11.4
Purchase of goods (note (g))
10.9
61.1
Engineering and mechanical services (note (h))
1,768.6
923.8
Management fee expenses (note (i))
52.4
118.7
Accounts payable (note (j))
4.3
461.5
Notes:
(a)
Revenue from provision of construction work services is principally charged in accordance with relevant contracts.
(b)
Interest income is charged at interest rates as specified in note 21(a) on the outstanding amounts.
(c)
Rental income and expenses are charged in accordance with respective tenancy agreements.
(d)
Management services fee income is charged in accordance with the terms of respective management service agreements.
(e)
The income is charged in accordance with concessionaire counter agreements with CTFJ Group. The commission is mainly calculated
by pre-determined percentages of gross sales value in accordance with respective agreements.
(f)
This represents the amounts received in respect of the sales of goods, prepaid shopping cards and vouchers to CTF Group, CTFJ Group
and companies owned by Mr. Doo.
(g)
This represents purchase of goods by means of presenting various cash equivalent gift coupons, gift cards and stored value shopping
cards to CTFJ Group. Such fee is charged in accordance with the terms of the agreements.
(h)
Engineering and mechanical services are charged in accordance with relevant contracts.
(i)
Management fee expenses are charged at rates in accordance with relevant contracts.
(j)
The accounts payable are unsecured, interest free and are repayable on demand.
(k)
Related companies are subsidiaries and joint ventures of CTF Group, CTFJ Group and companies held by Mr. Doo.
(l)
The balances with joint ventures and associated companies are disclosed in notes 21, 22, 31 and 41.
(m)
No significant transactions have been entered with the Directors of the Company (being the key management personnel) during the
year other than the emoluments paid to them as disclosed in note 15.
