Interim Report 2012 - TodayIR.com

Notes to Financial Statements30 June 201233. RELATED PARTY TRANSACTIONS(a) In addition to the transactions detailed elsewhere in these financial statements, the Group had the following transactions withrelated parties during the period:Six-month periodended 30 JuneNotes 2012 2011RMB’000RMB’000(unaudited)Fee income from provision of food processing service (i) 375 543Management fee income (ii) 1,500 1,500Property rental expense (iii) 2,000 2,000Integrated property management expense (iv) 229Purchase of goods (v) 1,199Sales of goods (vi) 168 530Notes:(i)(ii)(iii)(iv)(v)(vi)The Group made purchases on behalf of certain related companies and charged processing fee based on a pre-determined flat ratemutually agreed by both parties.The Group entered into integrated management service agreements with Xiao Nan Guo (Group) Co., Ltd. pursuant to which the Grouphas agreed to provide integrated management services to Xiao Nan Guo (Group) Co., Ltd. for the period commencing from 1 July 2010to 31 December 2014 for a monthly service fee of RMB250,000.Shanghai Hongqiao Xiao Nan Guo Restaurant Management Co., Ltd., a company owned by the Controlling Shareholder, leases arestaurant premise to the Group at an annual rental fee of RMB4 million, which was determined with reference to the market rental rate,for a period of 5 years commencing 1 July 2008.The Group entered into a service agreement with Hongqiao XNG pursuant to which Hongqiao XNG has agreed to provide propertymanagement service to the Group for a period of one year commencing 1 July 2010.The Group entered into a purchase agreement with WHM Japan Co., Ltd. for a term of three years (the “Purchase Agreement”).Pursuant to the Purchase Agreement, the Group agreed to purchase and WHM Japan Co., Ltd. agreed to supply Japanese food materialsat cost.The Group sold gift boxes to Xiao Nan Guo (Group) Co., Ltd. based on market price.76XIAO NAN GUO RESTAURANTS HOLDINGS LIMITED