Sun Art Retail Group Limited - TodayIR.com

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
24 COMMITMENTS (CONTINUED)
(b)
Operating leases
The total future minimum lease payments under non-cancellable operating leases are payable
as follows:
The Group
At 31 December
2012 2011
RMB million RMB million
Within 1 year 1,533 1,126
After 1 year but within 5 years 4,719 3,554
After 5 years 9,957 8,472
16,209 13,152
The Group leases certain land and buildings under operating leases. The leases typically
run for an initial period of fifteen to twenty years, with an option to renew the lease after
that date. The Group has the option to cancel the leases on payment of a penalty at various
stages of the initial lease periods depending on the terms of the specific leases concerned.
In addition to the minimum rental payments disclosed above, for some of the hypermarkets
leased, the Group has commitments to pay additional rent of a proportion of turnover if the
turnover generated exceeds the predetermined levels. Contingent rental payables are not
included in the above as it is not possible to estimate the amounts which may be payable.
25 CONTINGENCIES
(a)
Legal claims
As at 31 December 2012, legal actions have commenced against the Group by certain
customers and certain suppliers in respect of disputes on purchase agreements. The total
amount claimed is RMB93 million (2011: RMB49 million). As at 31 December 2012, the
legal actions were ongoing, with most of the actions not yet set for trial dates. Provision of
RMB12 million (2011: RMB11 million) has been made within Trade and other payables as
at 31 December 2012, which the directors believe is adequate to cover the amounts, if any,
payable in respect of these claims.
104
Sun Art Retail Group Limited
Annual Report 2012