Annual Report 2015
EXECUTIVE VICE-CHAIRMAN’S REPORT
31
the total impairment loss on the
carrying value of NWSH’s interest
in Newton Resources Ltd and the
loss on partial disposal recognised in
FY2015 amounted to HK$1.9 billion.
In addition, an impairment loss of
HK$0.3 billion for Guangzhou Dongxin
Expressway was shared by NWSH
which was primarily attributable
to the lower-than-expected traffic
flow of the expressway. As the
abovementioned impairment losses
were non-cash items, they bore no
significant impact on the cash flow
and the operation of NWSH.
amounted to HK$0.9 billion was
recognised in FY2015 pursuant to
HKAS 39 “Financial Instruments:
Recognition and Measurement”.
In June 2015, NWSH completed the
disposal of 12.5% of equity interest
in Newton Resources Ltd to a wholly
owned subsidiary of Shougang
Holding (Hong Kong) Limited, a
substantial shareholder of Newton
Resources Ltd. The disposal enabled
NWSH to realise part of its non-core
assets and reallocate more resources
to invest in its core businesses.
Immediately upon completion of
the aforesaid disposal, NWSH owns
35.5% of the total issued shares of
Newton Resources Ltd. Based on
the consideration of such disposal,
further impairment loss in the carrying
value of the remaining interest in
Newton Resources Ltd had to be
accounted for by NWSH. Accordingly,
