Annual Report 2020

173 Notes to the Financial Statements Miramar Hotel and Investment Company, Limited Annual Report 2020 26 Material related party transactions (Continued) Notes: (a) The property agency fee payable to a subsidiary of the Group’s major shareholder for the provision of property agency services to the Group’s investment properties in Hong Kong, was calculated at a certain percentage of the gross rental income from the Group’s investment properties during the year. The Group’s travel division provides agency services to certain subsidiaries and associates of the Group’s major shareholder in respect of air ticket booking, hotel accommodation and hire car services under similar terms it provides to other customers. The net amounts due to these companies as at 31 December 2020 amounted to HK$3,048,000 (2019: HK$3,203,000) are unsecured, interest-free and have no fixed terms of repayment. (b) The management fee income from a subsidiary of the Group’s major shareholder for the provision of management services to a serviced apartment, was calculated at a certain percentage of revenue generated from that serviced apartment for the year the service provided. The amount due from this company as at 31 December 2020 amounted to HK$44,000 (2019: HK$101,000) is unsecured, interest-free and has no fixed terms of repayment. (c) The Group provides hotel and catering services to certain subsidiaries and associates of the Group’s major shareholder in respect of hotel and outside catering services and food and beverage services under similar terms it provides to other customers. The amounts due from these companies as at 31 December 2020 amounted to HK$17,000 (2019: HK$29,000) are unsecured, interest-free and have no fixed terms of repayment. (d) The amount represented rental, building management fee, air-conditioning charges and other outgoings paid to an associate of the Group’s major shareholder during the year. The amount due from the Company as at 31 December 2020 represented prepaid rental fee of HK$1,610,000 (2019: HK$Nil) and is unsecured, interest free and have no fixed term of repayment. (e) The amount represented rental, building management fee and other outgoings paid to a subsidiary of the Group’s major shareholder during the year. The amount due from this company as at 31 December 2020 represented prepaid rental fee of HK$2,000 (2019: amount due to this company represented unsettled rental fee of HK$82,000) and is unsecured, interest free and have no fixed terms of repayment. (f) The consultancy and management services income from an associate of the Group’s major shareholder for the provision of consultancy and management services to parking facilities, was calculated at a certain percentage of direct operating expenses incurred from the operation of that parking facilities for the year service provided. The amount due from this company as at 31 December 2020 represented advance consultancy and management fee of HK$42,000 (2019: HK$Nil) and is unsecured, interest free and have no fixed terms of repayment. (g) Remuneration for key management personnel are disclosed in notes 5 and 6.