New World Development Company Limited
172
Financial Section
37 Non-Controlling Interests
The total non-controlling interests as at 30 June 2016 is HK$21,321.9 million (2015: HK$43,439.4 million), of which
HK$17,579.7 million (2015: HK$18,051.3 million) is attributable to NWSH. The total comprehensive income attributable to
non-controlling interests for the year ended 30 June 2016 is HK$1,633.2 million (2015: HK$7,727.0 million), of which HK$773.3
million (2015: HK$1,709.7 million) is attributable to NWSH and HK$758.8 million (2015: HK$1,047.0 million) is attributable to
NWCL. For the year ended 30 June 2015, HK$4,935.3 million was attributable to the gain on partial disposal of interests in
two hotels, namely Grand Hyatt Hong Kong and Renaissance Harbour View Hotel, Hong Kong (note 8). The non-controlling
interests in respect of other subsidiaries are not material to the Group.
The privatisation of NWCL at an cash offer price of HK$7.8 per share was announced on 6 January 2016 and as at final
closing date of 5 April 2016, the Group has an effective interest of 99.58% in NWCL. Total consideration of HK$20,068.9
million was paid as of 30 June 2016. The excess of the consideration paid over the Group’s interest in the net assets
acquired from non-controlling interests, was recognised in equity with details as follows:
2016
HK$m
Consideration paid
20,068.9
Carrying amount of non-controlling interests acquired
(18,932.4)
Excess of consideration paid over carrying amount recognised within equity
1,136.5
Following the privatisation, management has imposed substantial changes to NWCL’s organisational structure in order to
gain full control over its business activities and financing. As a result of these changes, management of NWCL consider that
there is no longer decentralisation of decision nor autonomy in NWCL. Management determined that the functional currency
of NWCL should be changed from Renminbi to Hong Kong dollar from April 2016 onwards to be in line with the Group’s
functional currency as an extension of the Group. The change is accounted for prospectively.
Set out below is the summarised financial information for NWSH and NWCL which are subsidiaries with material non-
controlling interests to the Group.
Summarised consolidated statements of financial position of the respective companies as at 30 June 2016 and 2015 are as
follows:
NWSH
NWCL
2016
2015
2016
2015
HK$m
HK$m
HK$m
HK$m
Non-current assets
51,660.4
55,305.8
60,493.7
67,402.7
Current assets
24,024.6
19,847.8
79,186.2
67,024.8
Total assets
75,685.0
75,153.6
139,679.9
134,427.5
Current liabilities
(18,250.6)
(12,748.9)
(31,648.1)
(31,898.0)
Non-current liabilities
(11,576.0)
(16,217.0)
(42,965.9)
(37,910.7)
Net assets
45,858.4
46,187.7
65,065.9
64,618.8
Non-controlling interests
(239.5)
(774.3)
(1,882.2)
(3,836.9)
Net assets after non-controlling interests
45,618.9
45,413.4
63,183.7
60,781.9
