Annual Report 2016
161
Financial Section
21 Interests in Joint Ventures
2016
2015
HK$m
HK$m
Equity joint ventures/joint ventures in wholly foreign owned enterprises
Group’s share of net assets
5,195.5
5,696.4
Goodwill on acquisition
2.2
2.2
Amounts receivable less provision (note (a))
2,843.2
2,380.8
8,040.9
8,079.4
Co-operative joint ventures
Cost of investment less provision
6,638.1
6,838.5
Share of undistributed post-acquisition results
2,121.1
3,324.8
Amounts receivable less provision (note (a))
5,321.7
4,768.2
14,080.9
14,931.5
Companies limited by shares
Group’s share of net assets
11,573.7
12,047.8
Goodwill on acquisition
1,462.9
1,475.5
Amounts receivable less provision (note (a))
15,194.6
12,917.7
28,231.2
26,441.0
50,353.0
49,451.9
Notes:
(a)
Amounts receivable less provisions are analysed as follows:
2016
2015
HK$m
HK$m
Interest bearing
Fixed rates (note (i))
1,944.3
862.5
Floating rates (note (ii))
3,475.1
2,965.1
Non-interest bearing
17,940.1
16,239.1
23,359.5
20,066.7
(i)
Carry interest rates ranging from 8.5% to 10.0% (2015: 8.5% to 10.0%) per annum.
(ii)
Carry interest rates ranging from 2.0% over HIBOR to People’s Bank of China rate (2015: 2.0% over HIBOR to People’s Bank of
China rate) per annum.
The amounts are unsecured. Their carrying amounts are not materially different from their fair values.
The amounts receivable form part of the Group’s interests in joint ventures.
(b)
There is no joint venture that is individually material to the Group. The Group’s share of results of the joint ventures are as follows:
2016
2015
HK$m
HK$m
For the year ended 30 June
Profit for the year
1,678.4
4,319.2
Other comprehensive income for the year
(1,320.6)
(221.0)
Total comprehensive income for the year
357.8
4,098.2
(c)
Management regularly reviews whether there are any indications of impairments of the Group’s interests in joint ventures based on
value in use calculations, as detailed in note 5(e). An impairment loss of HK$177.6 million was made for the Group’s interest in Hyva for
the year ended 30 June 2016. Aside from this, management is of the view that there is no other impairment of the Group’s interests in
joint ventures as at 30 June 2016.
(d)
Details of principal joint ventures are stated in note 50.
