Annual Report 2015
FINANCIAL SECTION
191
43 COMMITMENTS
(a) Capital commitments
Capital expenditure contracted for at the end of the year but not yet provided is as follows:
2015
2014
HK$m
HK$m
Contracted but not provided for
Property, plant and equipment
1,520.9
2,031.0
Investment properties
6,913.3
3,853.8
Intangible concession rights
93.0
22.7
Associated companies
1,679.6
1,276.9
Joint ventures (note)
425.7
248.9
Other investments
436.0
675.7
11,068.5
8,109.0
The Group’s share of capital commitments of the joint ventures not included above are as follows:
2015
2014
HK$m
HK$m
Contracted but not provided for (note)
1,269.2
871.6
Note:
On 30 June 2015, Chongqing Suyu Business Development Company Limited, (“Suyu”, a 50% joint venture of NWSH)
contracted to invest an equity interest of 25.1% in Chongqing Derun Environment Co., Ltd. (“Derun Environment”), a
company engaged in environmental-related businesses in Mainland China. The consideration will be satisfied by the
injection of approximately 13.44% equity interest in Chongqing Water Group Co., Ltd. currently owned by Suyu and
cash consideration of approximately RMB442.0 million (equivalent to approximately HK$552.5 million). NWSH’s share
of commitments towards the aforesaid cash consideration have been included in above disclosed capital commitments.
Subject to relevant government approvals, NWSH will indirectly own about 12.55% interest in Derun Environment upon
completion.
(b) Commitments under operating leases
The future aggregate lease payments under non-cancellable operating leases are as follows:
2015
2014
HK$m
HK$m
Land and buildings
In the first year
954.6
876.8
In the second to fifth year
3,176.8
3,367.7
After the fifth year
5,110.0
5,828.6
9,241.4
10,073.1
The Group leases various retail outlets under non-cancellable operating lease agreements. The leases have
varying terms ranging from 1 to 19 years. Certain of these leases have escalation clauses and renewal rights.
