NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS 31. Related Party Transactions (continued) Under a tenancy framework agreement (the “Tenancy Framework Agreement”) between JS&SHK, Swire Pacific Limited and the Company dated 14th August 2014, members of the Group enter into tenancy agreements with members of the JS&SHK group and members of the Swire Pacific group from time to time on normal commercial terms based on prevailing market rentals. The Tenancy Framework Agreement was renewed on 1st October 2021 for a further term of three years expiring on 31st December 2024. For the six months ended 30th June 2022, the aggregate rentals payable to the Group by members of the JS&SHK group and members of the Swire Pacific group under tenancies to which the Tenancy Framework Agreement applies amounted to HK$57 million (30th June 2021: HK$56 million) and HK$22 million (30th June 2021: HK$22 million) respectively. The above transactions under the Services Agreement and the Tenancy Framework Agreement are continuing connected transactions, in respect of which the Company has complied with the disclosure requirements of Chapter 14A of the Listing Rules. The following is a summary of significant transactions between the Group and related parties (including transactions under the Tenancy Framework Agreement), which were carried out in the normal course of the Group’s business, in addition to those transactions disclosed elsewhere in the financial statements. For the six months ended 30th June Joint venture Fellow subsidiary Immediate Intermediate Other related companies companies holding company holding company parties 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 Note HK$M HK$M HK$M HK$M HK$M HK$M HK$M HK$M HK$M HK$M Purchases of goods (a) – – – – – – – – – 1 Purchases of services (a) – – 14 14 – – – – – – Rendering of services (a) 28 25 – – – – 1 1 – 1 Rental revenue (b) – – 17 16 5 6 57 56 – – Rental expenses (b) 4 3 – – – – – – – – Revenue from hotels 4 10 – – – – – – 42 12 Interest income (c) 16 38 – – – – – – – – Interest charges (c) 7 2 – – – – – – – – Notes: (a) Purchase of goods and rendering of services from and to related parties were conducted in the normal course of business at prices and on terms no less favourable to the Group than those charged by/to and contracted with other suppliers/customers of the Group. (b) The Group has, in the normal course of its business, entered into lease agreements with related parties to lease premises for varying periods up to six years. The leases were entered into on normal commercial terms. (c) Loans advanced to joint venture and associated companies at 30th June 2022 are disclosed in notes 16 and 17. Advances from joint venture and associated companies are disclosed in note 22. The amount due from the immediate holding company at 31st December 2021 was HK$1 million. The balance arises in the normal course of business, is non-interest- bearing and repayable within one year. 72 Swire Properties Limited Interim Report 2022