2014 2013
HK$’000 HK$’000
The Group’s share of profit 1,099,877 2,935,195
The Group’s share of other comprehensive income (55,289) 417,860
The Group’s share of total comprehensive income 1,044,588 3,353,055
Aggregate carrying amount of the Group’s interests in these joint ventures 10,836,232 11,434,403
The contingent liabilities relating to the Group’s interest in joint ventures are disclosed in note 45.
22. INVESTMENTS IN SYNDICATED PROPERTY PROJECT COMPANIES
THE GROUP
2014 2013
HK$’000 HK$’000
Unlisted
Available-for-sale equity investments, at fair value 20,873 18,907
The investments represent the Group’s interests in the following syndicated property project companies which are carried at fair value at the end of the reporting period as estimated by the directors of the Company by reference to the fair value of the properties held by these companies.
The syndicated property project companies are incorporated and operating in Hong Kong unless otherwise indicated.
Attributable equity interests held by the Group
Name of entity % Principal activities
2014 2013
Direct Profit Development Limited 8 8 Property development
Dramstar Company Limited 12 12 Property development
Moricrown Ltd. * 7 7 Property development
Victory World Limited 10 10 Property development
* Incorporated in the British Virgin Islands
23. AMOUNTS DUE FROM JOINT VENTURES UNDER NON-CURRENT ASSETS
THE GROUP
2014 2013
Interest-free
Interest
bearing Total Interest-free
Interest
bearing Total HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
Amounts due from
joint ventures 1,131,374 764,139 1,895,513 2,079,344 764,566 2,843,910
At 31 December 2014, the interest bearing amount due from joint venture bears variable interest rates ranging from 6.33% to 6.35% (2013: 6.34% to 6.73%) per annum.
All the non-current amounts due from joint ventures are unsecured and not expected to be repaid within one year after the end of the reporting period. At the end of the reporting period, all amounts due from joint ventures are denominated in US$.
24. AMOUNTS DUE FROM SUBSIDIARIES
THE COMPANY
2014 2013
Interest-free
Interest
bearing Total Interest-free
Interest
bearing Total HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
The amounts comprise:
Unsecured and due one year after the end of reporting period included in
non-current assets 7,848,982 – 7,848,982 3,557,805 2,263,642 5,821,447
Unsecured and repayable on demand included in
current assets 79,592,414 – 79,592,414 56,729,356 – 56,729,356
Included in the balance are amounts due from subsidiaries of HK$7,848,982,000 (2013: HK$5,821,447,000) expected not to be realised within twelve months from the end of the reporting period and are classified as non-current assets.
At 31 December 2014, the amounts due from subsidiaries under non-current assets are interest free. At 31 December 2013, included in the amounts due from subsidiaries under non-current assets amounting to HK$2,263,642,000 carried fixed interest rate of 5.5% per annum.
At the end of the reporting period, the Company has amounts due from subsidiaries of HK$6,711,035,000 (2013:
HK$4,432,177,000) denominated in HK$.
25. PLEDGED BANK DEPOSITS AND OTHER FINANCIAL LIABILITIES
THE GROUP THE COMPANY
2014 2013 2014 2013
HK$’000 HK$’000 HK$’000 HK$’000
Pledged bank deposits, included in
non-current assets (Note a) 67,249 68,179 – –
Other financial liabilities
Financial guarantee contracts due (Note b)
— within one year – – 133,532 104,242
— more than one year, but not exceeding two years – – 127,459 99,364
— more than two years, but not exceeding five years – – 225,726 202,618
— over five years – – 182,406 163,010
– – 669,123 569,234
Less: Amounts classified as current liabilities – – (133,532) (104,242)
Amounts classified as non-current liabilities – – 535,591 464,992
Notes:
(a) The pledged bank deposits represent deposits pledged to banks to secure the mortgage loans granted by banks to the purchasers of the Group’s properties. The deposits, which carry variable interest rate of 0.35% (2013: ranging from 0.35% to 0.50%) per annum will be released upon the settlement of the relevant mortgage loans.
(b) Details of the financial guarantee contracts are set out in note 45.
26. INVENTORIES
THE GROUP
2014 2013
HK$’000 HK$’000
Raw materials and consumables, at cost 64,002 28,906
27. STOCK OF PROPERTIES
THE GROUP THE COMPANY
2014 2013 2014 2013
HK$’000 HK$’000 HK$’000 HK$’000
Completed properties 29,388,757 19,423,715 1,351 1,351
Properties under development (Note) 165,567,197 141,528,370 – –
Total stock of properties 194,955,954 160,952,085 1,351 1,351
Note: Included in the amount are properties under development for sale of HK$96,404,547,000 (2013: HK$92,127,569,000) not expected to be realised within twelve months from the end of the reporting period.
28. LAND DEVELOPMENT EXPENDITURE
THE GROUP
2014 2013
HK$’000 HK$’000
Cost incurred 1,428,682 3,409,653
The Group, together with independent third parties, entered into agreements (“Agreements”) with the Beijing local government to jointly redevelop some lands in Beijing. The Group is responsible for the land development works, which included but is not limited to the removal of the existing buildings situated on the land, the relocation of the existing residents, the provision of infrastructure systems including roads, drainage system, water, gas and electricity supply and the construction of public facilities. Pursuant to the Agreements, the Group will be reimbursed for the actual costs incurred in carrying out the land development and be entitled to the fixed returns irrespective of whether the Group will obtain the land use rights of the land in the future. At 31 December 2014, the cost incurred for the land development is HK$1,428,682,000 (2013: HK$3,409,653,000).
29. TRADE AND OTHER RECEIVABLES
Proceeds receivable in respect of properties development are settled in accordance with the terms stipulated in the sale and purchase agreements.
Except for the proceeds from properties development and rental income from lease of properties which are receivable in accordance with the terms of the relevant agreements, the Group generally allows a credit period of not exceeding 60 days to its customers.
The following is an aged analysis of trade and other receivables presented at the end of the reporting period:
THE GROUP THE COMPANY
2014 2013 2014 2013
HK$’000 HK$’000 HK$’000 HK$’000
Trade receivables, aged
0–30 days 5,580,310 1,568,853 – –
31–90 days 205,101 124,518 – –
Over 90 days 411,701 254,271 – –
6,197,112 1,947,642 – –
Other receivables 1,474,166 483,336 8,888 21,257
7,671,278 2,430,978 8,888 21,257
Before accepting any new customer, the Group uses an internal credit assessment system to assess the potential customers’ credit quality and defines credit limits by customer.
The Group has insignificant trade receivable balances which are past due at the end of reporting period.
In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the end of the reporting period. The concentration of credit risk is limited due to the customer base being large and unrelated. Accordingly, the directors of the Company believe that there is no provision required as at the end of the reporting period.
30. AMOUNTS DUE FROM ASSOCIATES/JOINT VENTURES/NON-CONTROLLING INTERESTS UNDER CURRENT ASSETS
The current amounts due from associates and non-controlling interests are unsecured, interest-free and repayable on demand.
At 31 December 2014, except for the unsecured amount due from a joint venture of HK$456,332,000 (2013:
HK$457,899,000) which carries interest at fixed rate of 7.32% (2013: 7.32%) per annum and repayable on demand, the remaining amounts due from joint ventures are unsecured, interest-free and repayable on demand.