ANNUAL CAP AND BASIS OF DETERMINATION. OF ANNUAL CAP (1) Annual cap One year from 13 December 2022 to 12 December 2023 (RMB) Annual cap 35,000,000
ANNUAL CAP AND BASIS OF DETERMINATION. It is stipulated in the Deposit Service Agreement that the maximum daily deposit balance of the deposits placed with the Finance Company by the Group for each of the three years ending 31 December 2024 will be as follows: For the year ending 31 December Maximum Daily Deposit Balance (RMB) 2022 500,000,000 2023 500,000,000 2024 500,000,000 The Annual Cap has been determined with reference to, among others, the following factors:
ANNUAL CAP AND BASIS OF DETERMINATION. The proposed annual caps for the transactions between the Group and CR Power Group under the Direct Power Supply Framework Agreement 2017 for the years ending 31 December 2018, 2019 and 2020 are expected to be RMB1,050 million (equivalent to approximately HK$1,239 million) each year. The proposed annual caps were determined after arm’s length negotiation with reference to (i) the historical transaction amounts; (ii) the maximum prevailing unit price of electricity payable by the Group indirectly to CR Power Group through provincial power grid companies; and (iii) the projected electricity consumption of the Group based on the Group’s business needs in 2018 to 2020. The aggregate electricity fees paid by the Group indirectly to CR Power Group through provincial power grid companies for the year ended 31 December 2016 and for the nine months ended 30 September 2017 amounted to RMB152.8 million (equivalent to approximately HK$178.3 million) and RMB497.1 million (equivalent to approximately HK$570.0 million) respectively.
ANNUAL CAP AND BASIS OF DETERMINATION. The annual cap in respect of the transactions contemplated under the Farm Supplies Framework Agreement commencing from January 1, 2022 to December 31, 2022 is RMB200,000,000. The annual cap was determined with reference to (i) the historical transaction amount of approximately RMB31,422,000 between the Modern Farming Group and the Aiyangniu Technology Group during the period from August 24, 2021 to November 30, 2021 under the Previous Farm Supplies Framework Agreement; (ii) the average market prices of the Farm Supplies; and (iii) the anticipated growth of the Modern Farming Group’s demands for the Farm Supplies taking into account the expected growth of herd size from existing dairy farms and subsequent to the completion of acquisition of 100% equity interests in Zhongyuan Muye and Fuyuan. As there is neither any government-prescribed price nor government guidance price in respect of the Farm Supplies, the average market price is determined with reference to the publicly available information in the market. REASONS FOR AND BENEFITS OF ENTERING INTO THE FARM SUPPLIES FRAMEWORK AGREEMENT Aiyangniu Technology operates the Aiyangniu Platform which integrates resources from more than 1,000 suppliers for the leading market players in the dairy farming industry in the PRC and is able to lower the purchase price of certain farm supplies through centralized procurement. The Aiyangniu Platform has a transparent purchase price quotation system for the dairy farms to make their procurement decision. The Aiyangniu Platform also consolidates market information in relation to the farm supplies commonly used by the dairy farms and shares such information with its business partners. The Aiyangniu Platform has a stringent selection and quality control mechanism of suppliers. The Aiyangniu Platform supervises the whole delivery process of farm supplies from suppliers to dairy farms to ensure that the farm supplies can meet the quality standard set by the dairy farms. The Aiyangniu Platform also dynamically screen its list of suppliers based on the quality control performance, credibility, product satisfaction and various indices of the suppliers. The Modern Farming Group believes that the cooperation with Aiyangniu Technology can ensure the quality and safety of farm supplies supplied to the Modern Farming Group which are essential to the production of high quality raw milk. Through the cooperation with Aiyangniu Technology, the Modern Farming Group will be able to (i) clos...
ANNUAL CAP AND BASIS OF DETERMINATION. Since 1 January 2023, the Bank’s business in agency sales of insurance has achieved rapid development. The business cooperation with Dajia Life Insurance has continued to be deepened and the cooperation business volume has continued to rise. As of 31 May 2023, the transaction amount under the Business Cooperation Framework Agreement for Agency Sales of Financial Products between the Bank and Dajia Life Insurance has reached RMB286 million, and the original proposed annual cap will not be able to meet the business development needs. In addition, the Bank expects to continue to deepen its business cooperation with Dajia Life Insurance in the coming years. Accordingly, the Board proposes to revise the existing proposed annual cap and set the proposed annual cap for the year ending 31 December 2024 and for the period from 1 January 2025 to 8 June 2025, respectively, to further increase the Bank’s revenue from its retail banking intermediary business. The details are as follows: Revised Proposed Annual Cap For the period from For the year ending 31 December 2023 For the year ending 31 December 2024 1 January 2025 to 8 June 2025 (RMB in million) (RMB in million) (RMB in million) Service Fees 700 1,200 1,000 In setting the proposed annual cap, the Bank has made reference to the historical transaction amount. In addition to referring to the historical transaction amounts, the Bank has also considered the following key factors: the Bank will provide agency sales services of financial products and agency sales of insurance products to Dajia Life Insurance, and receive relevant Service Fees. The business covered by the agency sales agreement of financial products is subject to change from year to year due to certain external reasons, including but not limited to unexpected fluctuations in the financial market, the fact that financial product investment transactions are market-driven and generally determined by the customers’ decision on the wealth management portfolio, which is beyond the Bank’s control, and the potential changes that may occur in the current and expected operating conditions of the continuing connected transactions between the Bank and Dajia Life Insurance, with reference to prevailing market conditions, the expected growth of the relevant transaction volume and Service Fees, etc. Given the increase in Service Fees for the agency sales of financial products is market-driven, the rapid development the Bank’s business in agency sales of insurance sinc...
ANNUAL CAP AND BASIS OF DETERMINATION. The annual cap in connection with the China Vanke Loan Agreement are set at RMB1,900 million (approximately HK$2,159 million) for each of the following period: (a) from 25 July 2019 (date of the China Vanke Loan Agreement) to 31 December 2019; (b) from 1 January 2020 to 31 December 2020; (c) from 1 January 2021 to 31 December 2021; and (d) from 1 January 2022 to 24 July 2022 (expiry date of the China Vanke Loan Agreement). The annual cap for the China Vanke Loans are determined based on the maximum aggregate principal amount of RMB1,800 million (approximately HK$2,045 million) and interest payable on the China Vanke Loans, and which is in turn based on the maximum amount of idle cash that may be held by United Land Company assuming residential properties of all phases and commercial properties of phases one and two of the Meilin Checkpoint Urban Renewal Project will be sold out and taking into account the financial and operational needs of United Land Company during the availability period. At any time the amount of China Vanke Loans to be advanced to China Vanke by United Land Company will be determined with reference to the amount of idle cash of United Land Company at the relevant time and the shareholding then held by China Vanke in United Land Company. INFORMATION OF UNITED LAND COMPANY AND CHINA VANKE United Land Company United Land Company is a limited liability company incorporated in the PRC and a non-wholly owned subsidiary of the Company. United Land Company holds the land use rights of the land parcels of the Meilin Checkpoint Urban Renewal Project and is engaged in developing the project. China Vanke China Vanke is a real estate company headquartered in Shenzhen. The shares of China Vanke are listed and traded on the Main Board of the Stock Exchange (Stock Code: 2202) and on the Shenzhen Stock Exchange. China Vanke and its subsidiaries are principally engaged in the businesses of development of residential properties, as well as other retail and industrial properties for urban auxiliary purposes. It became a strategic investor in 30% equity interest in United Land Company in November 2018. REASONS FOR AND BENEFIT OF ENTERING INTO THE CHINA VANKE LOAN AGREEMENT The Group is principally engaged in logistics and toll road business. The Group carried out the investment, construction and operation of logistic infrastructure facilities through expansion, mergers and acquisitions, restructuring and consolidation, and provided various value-added logi...
ANNUAL CAP AND BASIS OF DETERMINATION. As milk powder production and related businesses represent a new business segment of the Company in light of the latest market condition, there has been no historical transaction amount in relation to the processing of the Products between the Suppliers and Modern Farming Saibei. The Annual Caps in respect of the processing services for the Products under the Processing Framework Agreement will be RMB180 million from the date of the Processing Framework Agreement to December 31, 2024 and RMB200 million for the financial year ending December 31, 2025. The Annual Caps were determined based on (i) the average market price of the processing services for the Products (as there is neither any government-prescribed price nor official guidance price in respect of the processing services, the average market price is determined with reference to the publicly available information in the market and quotations that the Company has obtained from independent suppliers); (ii) the expected demand from Modern Farming Saibei in respect of the processing services for the Products estimated based on the current stock level and the projected productivity of, and market demand for, raw milk; and (iii) a 10% buffer for potential inflation and increase in demand for processing services due to market conditions.
ANNUAL CAP AND BASIS OF DETERMINATION. The proposed annual cap for the related fees payable by Shine Entertainment to the Group pursuant to the Business Cooperation Framework Agreement for the period from May 8, 2024 to December 31, 2024 is RMB24 million. The proposed annual cap above is determined with reference to:
