0175 Geely Automobile Holdings Limited Annual Report 2011

Annual Report 2011Geely Automobile Holdings LimitedDirectors’ReportARRANGEMENTS TO PURCHASE SHARES OR DEBENTURESOther than the share options disclosed above, at no time during the year was the Company, its holding company or anyof its subsidiaries, a party to any arrangements to enable the directors of the Company to acquire benefits by means ofthe acquisition of shares in, or debentures of, the Company or any other body corporate.DIRECTORS’ INTERESTS IN CONTRACTS OF SIGNIFICANCEDetails of transactions between the Group and other companies under the control of Mr. Li Shu Fu during the year areset out in note 35 to the consolidated financial statements.Save as disclosed above, no contracts of significance to which the Company, its holding company or any of its subsidiaries,was a party and in which a director of the Company had a material interest, whether directly or indirectly, subsisted atthe end of the year or at any time during the year.CONNECTED TRANSACTIONS & CONTINUING CONNECTED TRANSACTIONSDuring the year, the Group entered into certain related party transactions which also constitute connected transactionsunder the Listing Rules. All the connected transactions and continuing connected transactions with disclosure requirementsunder the Listing Rules during the year were listed below and some of these transactions are also set out in note 35 tothe consolidated financial statements.CONNECTED TRANSACTIONS1. Acquisition of 100% Interest in the Registered Capital of Ningbo VisionPursuant to the equity transfer agreement dated 21 January 2011, Zhejiang Jirun Automobile Company Limited(“Zhejiang Jirun”) entered into a transaction with Zhejiang Geely Automobile Company Limited (“Zhejiang Geely”)and Zhejiang Geely Holding Group Company Limited (“Geely Holding”) to respectively transfer an 90% and 10%interests in the registered capital of Ningbo Vision Automobile Parts and Components Company Limited (“NingboVision”) to Zhejiang Jirun at a consideration of RMB437,342,000. The completion of the acquisition of the 100%interest in the registered capital of Ningbo Vision took place by end of April 2011.2. Acquisition of 100% Interest in the Registered Capital of Shandong GeelyPursuant to the equity transfer agreement dated 21 January 2011, Zhejiang Jirun Automobile Company Limited(“Zhejiang Jirun”) entered into a transaction with Zhejiang Geely Automobile Company Limited (“Zhejiang Geely”)and Zhejiang Geely Holding Group Company Limited (“Geely Holding”) to respectively transfer an 90% and 10%interests in the registered capital of Shandong Geely Gearbox Company Limited (“Shandong Geely”) to ZhejiangJirun at a consideration of RMB20,000,000. The completion of the acquisition of the 100% interest in the registeredcapital of Shandong Geely took place by end of March 2011.3. Acquisition of Land Use Right of the Land from Zhejiang HaoqingPursuant to the sales and purchase agreement dated 21 January 2011, the Group agreed with Zhejiang HaoqingAutomobile Manufacturing Company Limited (“Zhejiang Haoqing”) for the acquisition of land use right of the landlocated in Xiangtan City, Hunan Province, the PRC at a total consideration of RMB24,208,000. The transactionhas not been completed as at 31 December 2011.44