Annual Report 2009 - Greentown China Holdings Limited

Report of the Directors
(iv)
Greentown Holdings Group,
through its associate,
agreed to provide, among
other services, pre-delivery
hotel management services
(including certain advisory
services and other related
services) and post-delivery
hotel management and
operation services (including
leasing business) to the
Company upon terms not
less favourable than those it
offered to any third parties
from time to time but the
Company was not obliged to
use such services exclusively
or at all from Greentown
Holdings Group. The
Company may terminate the
hotel management services
provided by the Greentown
Holdings Group with respect
to any project by serving
three months’ prior written
notice. The aggregate annual
expenditure payable by the
Company is RMB2 million
for the three years ending
31 December 2011, which
accordingly are determined
as the annual caps of the
hotel management services
pursuant to the Renewed
Comprehensive Services
Agreement.
Pursuant to the Renewed Continuing Connected
Transaction Agreements, the annual amounts for
each of these transactions for the year ended 31
December 2009 were as follows:
Expenses paid by the Company for
the year ended 31 December 2009
Annual rental pursuant to the
Renewed Properties Leasing
Agreements
Advertising fee pursuant to the
Renewed Advertising Services
Agreement
Interior decoration service fees
pursuant to the Renewed
Comprehensive Services
Agreement
Property management service
fees pursuant to the Renewed
Comprehensive Services
Agreement
Purchase of raw materials pursuant
to the Renewed Comprehensive
Services Agreement
Hotel management services fees
pursuant to the Renewed
Comprehensive Services
Agreement.
RMB’000
7,886
40,000
791
13,899
1,707
1,737
The Independent Non-Executive Directors of
the Company have reviewed the transactions
contemplated under the Trademarks License
Agreement and the Renewed Continuing
Connected Transaction Agreements and confirmed
that they were:
Details of the transactions contemplated under
the Renewed Continuing Connected Transaction
Agreements were disclosed in the Company’s
announcement dated 1 December 2008.
(a)
entered into by members of the Company
in the ordinary and usual course of its
business;
(b) (i) on normal commercial terms; or
(ii)
(iii)
on terms no less favourable to the
Company than those available to (or
from) independent third parties; or
on terms that are fair and reasonable
and in the interests of the
shareholders of the Company as a
whole; and
Greentown China Holdings Limited Annual Report 2009 91