The carrying amount is amortised on a straight-line basis over
the lease terms ranging from 40 to 70 years.
20. LOAN RECEIVABLES
2014 2013
HK$'000 HK$'000
Second mortgage loans 4,480 7,535
======== ========
Analysed for reporting purposes:
Non-current assets 4,118 7,072
Current assets 362 463
-------------- --------------
4,480 7,535
======== ========
The loans bear interest at Hong Kong Prime Rate and are
repayable by monthly installments over a period of 20 years or as
stipulated in the respective agreements.
The second mortgage loans are secured by the leasehold
properties of the borrowers.
The effective interest rate of the loan receivables is 5.0%
(2013: 5.0%) per annum.
Loan receivables balances which are past due at the end of the
reporting period are minimal and are not considered impaired. In
determining the recoverability of the loan receivables, the Group
considers, among other factors, any change in value of the
properties securing the loans.
The concentration of credit risk is limited due to the customer
base being large and unrelated. No single loan receivable is
individually material.
21. NOTE RECEIVABLES
The amount represents (i) the carrying value of a five-year zero
coupon principal protected index-linked note with principal amount
of US$2,000,000 (equivalent to HK$15,511,000) (2013: US$2,000,000
(equivalent to HK$15,508,000)) maturing on 7 February 2017; and
(ii) the carrying value of a five-year zero coupon principal
protected index-linked note with a principal amount of US$5,000,000
(equivalent to HK$38,778,000) (2013: US$5,000,000 (equivalent to
HK$38,771,000)) maturing on 9 August 2018. The index is a
proprietary index named Forex Yield Differential Accrual Perpetual
Index, which is a proprietary non-discretionary algorithm to
calculate the risk filter multiple of non-discretionary trading
that observes a basket of ten currencies.
The host contracts of the note are measured at amortised cost.
The index-linked feature is regarded as a derivative embedded in
but not closely related to the host contract in accordance with IAS
39 Financial Instruments: Recognition and Measurement. However, in
the opinion of the directors, the fair values of the embedded
derivatives at the end of the reporting period are insignificant
and therefore they have not been accounted for as a separate
component in the consolidated financial statements.
22. OTHER RECEIVABLES
At 31 December 2014, the Group had incurred a total amount of
RMB321,060,000 (2013: RMB321,052,000), equivalent to HK$406,976,000
(2013: HK$408,346,000), for the tenant relocation arrangements,
excavation and infrastructure work on certain pieces of land in
Nanjing, the PRC. The amount, together with further costs to
complete the work, are wholly refundable from the relevant PRC
local government either by deduction against the consideration
payable if the Group is successful in bidding for the land or out
of the proceeds received by the relevant PRC local government from
another successful tenderer. The directors estimate that, based on
the Group's development plan, the time schedule for auction of the
relevant land will be initiated before the end of 2016 and by then
the full amount will be recovered.
The balance of HK$391,173,000 (2013: HK$384,794,000) represents
the Hong Kong dollar equivalent of the present value of the
original amount of RMB321,060,000 (2013: RMB321,052,000) expected
to be recovered in 2016 discounted at the rate of 2% per annum.
23. OTHER FINANCIAL ASSETS
2014 2013
HK$'000 HK$'000
Unlisted investments:
- Equity securities (Note
1) 3,882 -
- Convertible loan (Note 2) 3,882 -
-------------- --------------
7,764 -
======== ========
(1) At 31 December 2014, unlisted equity securities classified
as available-for sale held by the Group amounting to US$500,000
(equivalent to HK$3,882,000), representing approximately 5% equity
interest of the investee company, were measured at cost less
impairment at the end of the reporting period because the range of
reasonable fair value estimates is so significant that the
directors were of the opinion that the fair value cannot be
measured reliably.
(2) The Group committed and contributed an unsecured
interest-free loan in the sum of US$500,000 (equivalent to
HK$3,882,000) to the party set out in note (1).
The party is scheduled to repay the convertible loan at its
principal amount on 14 October 2017 (the "Maturity date"). The
Group has the right to convert into shares representing not more
than a 5% equity interest of the investee company.
The conversion option feature is regarded as a derivative
embedded in but not closely related to the convertible loan in
accordance with IAS 39 Financial Instruments: Recognition and
Measurement. However, in the opinion of the directors, the fair
value of the embedded derivative at the end of the reporting period
is insignificant and therefore it has not been accounted for it as
a separate component in the consolidated financial statements.
24. RESTRICTED BANK DEPOSITS
Restricted bank deposits carry fixed interest rates ranging from
0.4% to 3.1% (2013: 0.4%) per annum and were placed with a bank in
relation to long-term bank borrowings.
25. PROPERTIES HELD FOR SALE - PROPERTIES UNDER DEVELOPMENT
Except for the properties under development with a carrying
value of approximately HK$281,004,000 (2013: nil) which are
expected to be completed in 2015, the remaining properties are
expected to be completed in more than twelve months after the end
of the reporting period.
26. TRADE RECEIVABLES, DEPOSITS AND PREPAYMENTS
2014 2013
HK$'000 HK$'000
Trade receivables 10,603 9,114
Accrued income 99,415 92,234
Deposits and prepayments 40,544 23,188
-------------- --------------
150,562 124,536
======== ========
Trade receivables mainly represent rental receivable from
tenants for the use of the Group's properties and receivables from
corporate customers and travel agents for the use of hotel
facilities. No credit is allowed to tenants. Rentals are payable
upon presentation of demand notes. An average credit period of 30
days is allowed to corporate customers and travel agents.
The following is an aged analysis of trade receivables,
presented based on the invoice date, at the end of the reporting
period.
2014 2013
HK$'000 HK$'000
0 to 30 days 8,014 8,178
31 to 60 days 590 936
61 to 90 days 207 -
91 to 365 days 1,148 -
Over 365 days 644 -
-------------- --------------
10,603 9,114
======== ========
Before granting credit to any customer, the Group uses an
internal credit assessment policy to assess the potential
customers' credit quality and defines credit limit by customer.
trade receivables of HK$3,100,000 (2013: HK$940,000) at the end of
the reporting period are past due but are not considered impaired
as these debtors have good repayment history and the Group has
assessed the creditworthiness, default history of independent
customers, and considers that the amounts are still recoverable and
no provision is required. The Group does not hold any collateral
over these balances.
27. AMOUNTS DUE FROM/TO NON-CONTROLLING INTERESTS
The balances are unsecured, interest-free and repayable on
demand.
28. Bank balances and CASH
2014 2013
HK$'000 HK$'000
Cash and cash equivalents 2,296,618 1,304,667
Fixed deposits with original
maturity period more
than 3 months 309,380 455,340
Guaranteed deposits 34,468 -
-------------- --------------
2,640,466 1,760,007
======== ========
Bank balances and cash comprise cash and short-term bank
deposits which carry fixed interest rates ranging from 0.1% to 3.3%
(2013: 0.1% to 3.3%) per annum.
Guaranteed deposits represent deposits placed by the Group with
banks which can only be applied to designated property development
projects of the Group. Guaranteed deposits carry interest at market
rates ranging from 0.4% to 2.9% per annum.
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