New World Development Company Limited
NOTES TO CONDENSED ACCOUNTS
30
5 Taxation
(continued)
Taxation on Mainland China and overseas profits has been calculated on the estimated taxable profit for the period
at the rates of taxation prevailing in the countries in which the Group operates. These rates range from 12% to
25% (2014: 9% to 25%).
Mainland China land appreciation tax is provided at progressive rates ranging from 30% to 60% (2014: 30% to
60%) on the appreciation of land value, being the proceeds of sale of properties less deductible expenditures
including costs of land use rights and property development expenditures.
Share of results of joint ventures and associated companies is stated after deducting the share of taxation of
joint ventures and associated companies of HK$372.4 million and HK$102.8 million (2014: HK$677.5 million and
HK$66.4 million) respectively.
6 Earnings per share
The calculation of basic and diluted earnings per share for the period is based on the following:
For the six months ended
31 December
2015
2014
HK$m
HK$m
Profit attributable to shareholders of the Company
3,300.0
5,854.6
Adjustment on the effect of dilution in the results of subsidiaries
(0.6)
(1.0)
Profit for calculating diluted earnings per share
3,299.4
5,853.6
Number of shares (million)
For the six months ended
31 December
2015
2014
Weighted average number of shares for calculating basic earnings per share
8,999.9
8,665.9
Effect of dilutive potential ordinary shares upon the exercise of share options
–
0.2
Weighted average number of shares for calculating diluted earnings per share
8,999.9
8,666.1
Diluted earnings per share for the six months ended 31 December 2015 did not assume the exercise of share
options outstanding during the period since the exercise would have an anti-dilutive effect. This effect had been
assumed for the six months ended 31 December 2014 since the exercise would have a dilutive effect.
7 Capital expenditure
For the six months ended 31 December 2015, the Group has acquired investment properties, property, plant and
equipment, land use rights and intangible concession rights of HK$5,487.0 million (2014: HK$4,260.6 million). The
Group has disposed of investment properties, property, plant and equipment and intangible concession rights of net
book value of HK$537.4 million (2014: HK$179.2 million).
