Lenovo 2015 Annual Report Download - page 140

138 Lenovo Group Limited 2014/15 Annual Report
DIRECTORS’ REPORT
CONTINUING CONNECTED TRANSACTIONS (continued)
NEC Newco Brand Licence Agreement
Date: The Closing Date
Parties: NEC and NECPC (a member of the JVCo Group on and following the Closing Date)
Services provided/received: NEC agreed to grant NECPC a licence to use certain rights in connection with the letters and
the mark “NEC” at royalty payable to NEC by NECPC.
Revised Term: Commence on the Closing Date to June 30, 2018 and shall automatically extend for an
additional term of one year to a date no later than June 30, 2026 pursuant to the amendment
agreement dated October 7, 2014.
Annual cap(Note 1):1/7/2011 – 31/3/2012: JPY512 million (US$6,195,200)
1/4/2012 – 31/3/2013: JPY682 million (US$8,252,200)
1/4/2013 – 31/3/2014: JPY682 million (US$8,252,200)
1/4/2014 – 31/3/2015: JPY682 million (US$8,252,200)
1/4/2015 – 31/3/2016: JPY682 million (US$8,252,200)
1/4/2016 – 1/7/2016: JPY170 million (US$2,057,000)
In accordance with rule 14A.55 of the Listing Rules, the independent non-executive directors of the Company reviewed the
continuing connected transactions in the paragraph above and confirmed that the transactions were entered into:
(i) in the ordinary and usual course of business of the Group;
(ii) on normal commercial terms or better; and
(iii) according to the relevant agreement governing them on terms that are fair and reasonable and in the interests of the
shareholders of the Group as a whole.
Pursuant to rule 14A.56 of the Listing Rules, the Company’s auditor was engaged to report on the Group’s continuing connected
transactions in accordance with Hong Kong Standard on Assurance Engagements 3000 “Assurance Engagements Other Than
Audits or Reviews of Historical Financial Information” and with reference to Practice Note 740 “Auditor’s Letter on Continuing
Connected Transactions under the Hong Kong Listing Rules” Issued by the Hong Kong Institute of Certified Public Accountants.
The auditor has issued an unqualified letter containing findings and conclusions in respect of the continuing connected transactions
disclosed by the Group in the paragraph above in accordance with rule 14A.56 of the Listing Rules. A copy of the auditor’s letter
has been provided by the Company to the Stock Exchange.
Note 1: The translation of Japanese yen into United States dollars is based on the exchange rate of JPY1.00 to US$0.0121 for information purposes
only.
Note 2: The translation of Japanese yen into United States dollars is based on the exchange rate of JPY1.00 to US$0.0098 for information purposes
only.
AUDITOR
The financial statements for the year have been audited by PricewaterhouseCoopers who retire and, being eligible, offer themselves
for re-appointment.
PUBLIC FLOAT
Based on the information that is publicly available to the Company and within the knowledge of the directors of the Company, as at
the date of this report, there is sufficient public float of more than 25% of the Company’s total number of issued shares as required
under the Listing Rules.
On behalf of the Board
Yang Yuanqing
Chairman and Chief Executive Officer
May 21, 2015