Lease commitment
In September 2012, the Group entered into a ten-year operating lease agreement, from October 8, 2012 to October 7, 2022, with Hubei Daily Media Group, a shareholder owning 20% of the Group’s variable interest entity, in Wuhan City, Hubei Province, where the Group leased approximately 1,673 square meters of office space. The lease amount is RMB1.0 million per year for the first five years and RMB1.1 million per year for the last five years, plus property management fees, water and electricity and all related taxes.
| As at December 31 | ||||||||
| 2016 | 2017 | |||||||
| RMB’000 | RMB’000 | |||||||
| Less than one year | 1,017 | 1,054 | ||||||
| Between one and five years | 5,007 | 3,953 | ||||||
| Total | 6,024 | 5,007 | ||||||
Capital commitment
In 2017, the Group paid the down payment of RMB14.9 million for a property of approximately 1,492 square meters of office space in Wuhan City, Hubei Province from a third party. The remaining payments of RMB14.9 million are expected to be paid in 2018.