Annual Report - QuamIR

Report of the Directors (Continued)
Continuing Connected Transactions
Details of the continuing connected transactions entered into by the Group
during the year are set out below:-
(i)
Yangpu Water Supply Agreement
(i)
On 12 January 2009, Yangpu Water Supply Company Limited (held
as to 65% indirectly by the Company) entered into a supplemental
65%
agreement with Jinhai Paper Pulping Industrial Company Limited
(“Jinhai”) for, among others, extending the term of the water supply
agreement dated 13 January 2004 (which was amended and
supplemented on 23 November 2005 and 25 April 2006 respectively)
for a further period from 1 January 2009 to 31 December 2011. Jinhai
is an associate of a connected person of the Company by virtue of
being indirectly controlled by the Oei family (the family members of
Mr. OEI Tjie Goan, (the Chairman of the Company), including Mr. OEI
Kang, Eric (Executive Director)), which is in turn a connected person
of the Company. The provision of water supply services contemplated
under the water supply agreement and the supplemental agreement
constitute a non-exempt continuing connected transaction under
the Listing Rules and is subject to the reporting, announcement and
14A.35
independent shareholders’ approval requirements under Rule 14A.35
of the Listing Rules. For the year ended 31 December 2011, the Group
received an annual revenue of HK$39.2 million for provision of the
water supply services to Jinhai.
39,200,000
On 8 December 2011, Yangpu Water Supply Company Limited entered
into another supplemental agreement with Jinhai for, among others,
extending the term of the water supply agreement dated 13 January
2004 for a further period of three years from 1 January 2012 to 31
December 2014.
56 HKC (Holdings) Limited • Annual Report 2011