New World Development Company Limited
NOTES TO CONDENSED ACCOUNTS
36
17 Financial guarantee and contingent liabilities
As at
31 December
2015
As at
30 June
2015
HK$m
HK$m
Financial guarantee contracts:
Mortgage facilities for certain purchasers of properties
2,595.8
2,240.0
Guarantees for credit facilities granted to
Joint ventures
4,020.1
4,229.4
Associated companies
1,340.9
20.0
A related company
44.7
49.7
Indemnity to non-wholly owned subsidiaries for Mainland China tax liabilities
1,318.0
1,415.0
9,319.5
7,954.1
18 Related party transactions
The following is a summary of significant related party transactions during the period which were carried out in the
normal course of the Group’s business:
For the six months ended
31 December
2015
2014
HK$m
HK$m
Transactions with joint ventures and associated companies
Provision of construction work services
415.4
334.9
Interest income
43.4
64.3
Rental expenses
135.5
159.7
Transactions with other related parties
Provision of construction work services
20.1
237.8
Rental income
60.9
71.2
Concessionaires commissions
42.9
51.2
Hotel management services fee income
52.5
19.3
Sales of goods, prepaid shopping cards and vouchers
32.1
26.7
Purchase of goods
8.5
41.5
Engineering and mechanical services
708.6
380.4
Management fee expenses
11.0
66.8
These related party transactions were conducted in accordance with the terms as disclosed in the last annual
report.
No significant transactions have been entered with the directors of the Company (being the key management
personnel) during the period other than the emoluments paid to them (being the key management personnel
compensation).
19 Event subsequent to period end
As referred to Note 11(a), the disposals entered on 2 December 2015 and 29 December 2015, with the exception
of the disposal of property project in Chengdu signed on 29 December 2015, were completed in January and
February 2016 respectively. The consideration for contracts entered on 2 December 2015 will be received by
instalments within two years after the completion.
