NOTES TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION For the six months ended 30 June 2022 23. RELATED PARTY TRANSACTIONS In addition to the transactions and balances detailed elsewhere in the financial information, the Group had the following material transactions with related parties during the six months ended 30 June 2022 and 2021: (a) Transactions with related parties: For the six months ended 30 June 2022 2021 (Unaudited) (Unaudited) US$’000 US$’000 Associates: – Management fee income (note (i)) 35,539 23,270 Joint ventures: – Management fees income (note (i)) 44,403 37,371 – Repayment from/(Advances to) related parties and joint ventures (note (ii)) (22,378) 3,924 – Repayment to joint ventures (note (ii)) – (890) – Repayment from joint ventures (note 20) 63,120 – – Investments in debentures issued by joint ventures (note (iii)) 1,834 9,659 – Interest income on investment in debentures (note (iii)) 525 789 Directors: – Interest receivables from Directors (note 23 (d)) 210 248 Notes: (i) The Group and its subsidiaries entered into agreements with joint ventures (including their operating subsidiaries) and some associates to charge management services, which comprised the following: a) Land acquisition fee at a certain percentage of the net land cost; b) Development fee at a certain percentage of total budget of project development cost during the construction period; c) Asset management fee at a 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) Repayment from/(advances to) related parties and joint ventures are unsecured, interest-free and repayable on demand. The outstanding amounts due from related parties as of 30 June 2022 is US$49,590,000 (30 June 2021: US$4,263,000). (iii) Investments in debentures issued by joint ventures and related interest income are relating to the Group’s investments in Compulsorily Convertible Debentures, Optionally Convertible Debentures and Non-convertible Debentures. E S R G R O U P L I M I T E D I N T E R I M R E P O R T 2 0 2 2 79
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