ESR Interim Report 2020 (EN)

Notes to Condensed Consolidated Financial Information 30 June 2020 64 21. RELATED PARTY TRANSACTIONS (continued) (a) Transactions with related parties: (continued) Notes: (i) The Group and its subsidiaries entered into agreements with joint ventures (including their operating subsidiaries) and some associates in provisions of management services, which comprised the followings: a) Land acquisition fee at certain percentage of the net land cost; b) Development fee at certain percentage of total budget of project development cost during the construction period; c) Asset management fee at certain percentage of the aggregate costs of the project before stabilisation or fair value after stabilisation; and d) Leasing fee in respect of each new lease entered into. (ii) Advances to/from joint ventures are unsecured, interest-free and repayable on demand. The maximum amounts due from related parties outstanding during the six months ended 30 June 2020 is US$54,468,000 (30 June 2019: US$11,513,000). (iii) During the six months ended 30 June 2020, the Group through its subsidiary Gamma Offshore Holdings (BVI) Limited, received prepaid consideration from a joint venture of the Group for disposal of 100% interest in Xian Yihong Warehousing Services Co., Ltd (“Xian Yihong”). The assets and liabilities relating to Xian Yihong are included in asset held for sale and liabilities held for sale balances as of 30 June 2020. The disposal was completed after 30 June 2020. (iv) During the six months ended 30 June 2020, the Group received repayment of USD59,485,000 from the disposed subsidiaries (note 18) which are now a joint venture of the Group. The amount was paid to the Group after disposal was completed. (b) Commitments with related parties The Group expects total capital commitment to associates and joint ventures to be US$18,918,000 and US$664,422,000, respectively. (c) Compensation of key management personnel of the Group: For the six months ended 30 June 2020 2019 (Unaudited) (Audited) US$’000 US$’000 Short term employee benefits 3,312 2,600 Post-employment benefits 6 16 Share based payment 2,812 3,309 Total compensation paid to key management personnel 6,130 5,925