COGO definition
Examples of COGO in a sentence
As a general principle, the prices and terms of the agreements with respect to the Construction Supervision Service shall be determined in the ordinary course of business on normal commercial terms, negotiated on arm’s length basis and at prices and on terms no more favourable than those procured from/provided to the independent third party service providers/the independent third party customers of the COGO Group/the CSC Group (as the case may be).
Pursuant to the Framework Agreement, the COGO Group may appoint any member of the CSC Group to provide the Construction Supervision Service for its property development projects in the PRC, provided that the maximum management fee payable to the CSC Group for the relevant year/period shall not exceed the corresponding Annual Caps set out in the paragraph headed “Annual Caps” below in this joint announcement.
Each of COGO and CSC will facilitate the provision of necessary information to their respective independent non-executive directors and auditor for the purpose of such review.
The auditor of each of COGO and CSC would also conduct an annual review on the pricing and annual caps under the Framework Agreement.
The management fee payable by the COGO Group to the CSC Group will be settled monthly in cash.
Having considered the substantial experience, high qualification and pricing offered by the CSC Group, the COGO Group intends to engage the CSC Group to provide the Construction Supervision Service for all of its property development projects in the PRC in order to improve management as well as possibly benefiting from increased economies of scale.
The maximum management fee payable by the COGO Group to the CSC Group during the term of the Framework Agreement shall not exceed the following Annual Caps: RMB110 million (equivalent to approximately HK$132 million) RMB136 million (equivalent to approximately HK$163.2 million) RMB191 million (equivalent to approximately HK$229.2 million) RMB65 million (equivalent to approximately HK$78 million) The PRC property development business of the COGO Group has been expanding over the years.
The COGO Group considers that CSC Group offers a high quality and competitive proposition to the COGO Group in respect of the provision of the Construction Supervision Service under the Framework Agreement.
Independent non-executive directors of each of COGO and CSC will review the transactions under the Framework Agreement to ensure such agreements are entered into through arm’s length negotiations and on normal commercial terms, are fair and reasonable, and are carried out pursuant to the terms of such agreements.
To this end, relevant members of the COGO Group and the CSC Group will from time to time enter into standard individual contracts which will set out the specific terms and conditions of the Construction Supervision Service to be provided.