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11770192_173.pdf | en | # 5. OPERATING SEGMENTS (Continued)
# Geographical information
The Group mainly operates in Hong Kong and the PRC. The Group’s revenue from external customers and information about its non-current assets by geographical location are detailed below:
5. 經營分部（續）
地區資料
本集團主要於香港及中國經營。本集團按地區劃分之來自對外客戶之收益及有關其非流動資產之資料詳列如下：
<table><tr><td rowspan="3"></td><td colspan="2">Continuing operations
Revenue from
external customers
持續經營業務
從對外客戶而來之收益</td><td colspan="2"> Discontinued operation
Revenue from
external customers
已終止經營業務
從對外客戶而來之收益</td><td colspan="2">Continuing operations
N*on-current assets
持續經營業務
非流動資產*</td><td colspan="2"> Discontinued operation
N*
on-current assets已終止經營業務
非流動資產*</td></tr><tr><td>2018
二零一八年</td><td>2017
二零一七年</td><td>2018
二零一八年</td><td>2017
二零一七年</td><td>2018
二零一八年</td><td>2017
二零一七年</td><td>2018
二零一八年</td><td>2017
二零一七年</td></tr><tr><td>HK$’000
千港元</td><td>HK$’000
千港元</td><td>HK$’000
千港元</td><td>HK$’000
千港元</td><td>HK$’000
千港元</td><td>HK$’000
千港元</td><td>HK$’000
千港元</td><td>HK$’000
千港元</td></tr><tr><td>Australia 澳洲</td><td>21</td><td>68</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Europe 歐洲</td><td>10,437</td><td>10,218</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Hong Kong 香港</td><td>144,595</td><td>(1,493)</td><td>—</td><td>—</td><td>665,778</td><td>432,895</td><td>—</td><td>—</td></tr><tr><td>The Middle East 中東</td><td>—</td><td>705</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>The PRC 中國</td><td>32,777</td><td>44,412</td><td>—</td><td>—</td><td>1,465,511</td><td>2,386,289</td><td>—</td><td>—</td></tr><tr><td>The United States of America 美利堅合眾國</td><td>207</td><td>79</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td></td><td>188,037</td><td>53,989</td><td>—</td><td>—</td><td>2,131,289</td><td>2,819,184</td><td>—</td><td>—</td></tr></table>
\* Non-current assets excluded deferred tax assets, other receivables and loan receivables.
\* 非流動資產不包括遞延稅項資產、其他應收款項及應收貸款。 |
11770192_174.pdf | en | # 5. OPERATING SEGMENTS (Continued)
# Information about major customers
Revenue from customers of the corresponding years contributing over 10% of the total revenue of the Group are as follows:
5. 經營分部（續）
有關主要客戶之資料
於相關年度向本集團總收益貢獻10% 以上之來自客戶之收益如下：
<table><tr><td rowspan="3"></td><td colspan="2">For the year ended
31 December
截至十二月三十一日止年度</td></tr><tr><td>2018
二零一八年</td><td>2017
二零一七年</td></tr><tr><td>HK$’000
千港元</td><td>HK$’000
千港元</td></tr><tr><td>Customer 11 客戶11</td><td>N/A不適用4</td><td>18,549</td></tr><tr><td>Customer 21 客戶21</td><td>19,901</td><td>13,303</td></tr><tr><td>Customer 32 客戶32</td><td>21,264</td><td>20,809</td></tr><tr><td>Customer 42 客戶42</td><td>N/A不適用4</td><td>9,159</td></tr><tr><td>Customer 53 客戶53</td><td>N/A不適用4</td><td>16,200</td></tr><tr><td>Customer 63 客戶63</td><td>N/A不適用4</td><td>12,191</td></tr><tr><td>Customer 73 客戶73</td><td>N/A不適用4</td><td>10,560</td></tr></table>
1 Revenue from sale of jewelry products.
2 Revenue from property investment.
3 Revenue from money lending.
4 The corresponding revenue did not contribute over 10% of the total revenue of the Group.
1 來自銷售珠寶產品之收益。
2 來自物業投資之收益。
3 來自借貸之收益。
4 相關收益並無向本集團總收益貢獻 10% 以上。 |
11687934_83.pdf | en | # 9 Preparation
# Report Overview
This 2018 ESG Report of Hua Hong Semiconductor Limited (hereinafter referred to as “this Report”) disclosures its principles in fulfilling CSR and the work carried out in 2018. It mainly addresses our Stakeholders about the sustainable development regarding the relevant economic, environmental, and social issues.
# Reference Basis
This Report adopts the “Environmental, Social and Governance Reporting Guide” issued by the Stock Exchange of Hong Kong Limited and the “Sustainability Reporting Standards (2016)” of the Global Reporting Initiative (GRI) as its reference basis.
# Scope of Report
<table><tr><td>Organizational scope:</td><td>The Company as defined. This Report by the Company, Hua Hong Semiconductor Limited,
includes all subsidiaries of the Company.</td></tr><tr><td>Reporting period:</td><td>From 01 January 2018 to 31 December 2018</td></tr><tr><td>Release cycle:</td><td>This is an annual report</td></tr></table>
# Data Descriptions
Data and cases in this Report originate from the Company’s original records in day-to-day operation or financial reports. In case of discrepancies, the financial reports data shall prevail. |
11687934_84.pdf | en | # 目錄
<table><tr><td>釋義</td><td>85</td></tr><tr><td>主要財務指標</td><td>88</td></tr><tr><td>致股東的信</td><td>89</td></tr><tr><td>公司資料</td><td>91</td></tr><tr><td>董事及高級管理層</td><td>94</td></tr><tr><td>企業管治報告</td><td>101</td></tr><tr><td>董事會報告</td><td>112</td></tr><tr><td>2018年環境、社會及管治報告</td><td>139</td></tr><tr><td>獨立核數師報告</td><td>167</td></tr><tr><td>綜合損益表</td><td>175</td></tr><tr><td>綜合全面收益表</td><td>176</td></tr><tr><td>綜合財務狀況表</td><td>177</td></tr><tr><td>綜合權益變動表</td><td>179</td></tr><tr><td>綜合現金流量表</td><td>181</td></tr><tr><td>財務報表附註</td><td>183</td></tr><tr><td>五年財務概覽</td><td>296</td></tr></table> |
8405609_247.pdf | en | # INDEBTEDNESS
The following table sets forth our other borrowings as at the dates indicated:
<table><tr><td rowspan="4"></td><td colspan="2">As at
31 December</td><td rowspan="2">As at
30 April
2017</td></tr><tr><td>2015</td><td>2016</td></tr><tr><td>HK$(’000)</td><td> HK$(’000)</td><td> HK$(’000)</td></tr><tr><td></td><td></td><td>(Unaudited)</td></tr><tr><td>Non-current</td><td></td><td></td><td></td></tr><tr><td>Other liability ...........................</td><td>11,282</td><td> –</td><td> –</td></tr></table>
Other liability of approximately HK\$11.3 million represented the fair value of the Pre-IPO Investment recognised as at 31 December 2015. As at 31 December 2016 and 30 April 2017, such other liability was transferred to our Group’s equity because the put option granted to our pre-IPO investor, namely Top Champ, to require our Company to repurchase the Shares held by Top Champ was removed under the Supplemental Deed. For details of the Supplemental Deed and the Pre-IPO Investment, please refer to the paragraphs headed “History, Reorganisation and corporate structure — Pre-IPO Investment” in this prospectus.
At the close of business on 30 April 2017, being the latest practicable date for the purpose of this indebtedness statement, we had aggregate bank facilities of HK\$8.0 million and which were unutilised. The bank facilities were guaranteed by Shui On (Shun On) and Mr. TC Yik and such guarantees provided will be fully released before Listing.
During the Track Record Period and up to the Latest Practicable Date, we did not experience any delay or default in payment of trade and non-trade payables or bank borrowing or any defaults in material financial covenants and finance costs of other liability, or any difficulties in obtaining banking facilities with terms that are commercially acceptable to us. As of the date of this prospectus, we did not have any plan for material external debt financing.
# Contingent liabilities
As at 30 April 2017, being the latest practicable date for the purpose of the indebtedness statement, we did not have any material contingent liabilities or guarantees.
Save as aforesaid or as otherwise disclosed herein, and apart from intra-group liabilities, as at the Latest Practicable Date, our Group did not have outstanding loan, bank overdrafts, loans or other similar indebtedness, liabilities under acceptances trade receivables or acceptable credits, authorised debentures, mortgages, charges, finance leases or hire purchase commitments, guarantees, material covenants, or other material contingent liabilities. As at the Latest Practicable Date, our Group did not have any external financing plans.
# OFF-BALANCE SHEET COMMITMENTS AND ARRANGEMENT
As at the Latest Practicable Date, we had not entered into any material off-balance sheet arrangement. |
8405609_248.pdf | en | # RELATED PARTY TRANSACTIONS
For details of related party transactions, see note 32 to the Accountants’ Report in Appendix I to this prospectus. Our Directors confirm that these transactions were conducted in the ordinary and usual course of business and on normal commercial terms. Our Directors are of the view that the related party transactions did not cause any distortion of our results of operations or make our historical results non-reflective in the Track Record Period.
# KEY FINANCIAL RATIOS
The following table sets forth our key financial ratios as at each of the dates indicated:
<table><tr><td rowspan="2"></td><td colspan="2">For the year ended 31 December</td></tr><tr><td>2015</td><td>2016</td></tr><tr><td>Profitability ratios</td><td></td><td></td></tr><tr><td>(1)Net Profit Marign (%) ................................</td><td>91.2</td><td>12.9</td></tr><tr><td>(2)Return on equity (%) .................................</td><td>238.0</td><td>10.7</td></tr><tr><td>(3)Return on total assets (%) .............................</td><td>112.0</td><td>8.7</td></tr></table>
<table><tr><td rowspan="2"></td><td colspan="2">As at/year ended 31 December</td></tr><tr><td>2015</td><td>2016</td></tr><tr><td>Liquidity ratio</td><td></td><td></td></tr><tr><td>(4)Current ratio (times) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</td><td>5.5</td><td>2.5</td></tr><tr><td>Cailpta sufficiency ratio</td><td></td><td></td></tr><tr><td>(5)Interest coverage (times) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</td><td> N/A</td><td>23.1</td></tr><tr><td>(6)Gearing ratio (%) ...................................</td><td>71.3</td><td> –</td></tr><tr><td>(7)Net debt to equity ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</td><td> Net cash</td><td> Net cash</td></tr></table>
Notes:
1. Net profit margin was calculated by dividing profit for the year by revenue and multiplying the resulting value by 100%. Please refer to the paragraphs headed “Review of historical results of operations” above in this section for more details on the fluctuations of our net profit margin.
2. Return on equity equals profit for the year divided by the equity attributable to owners of the parent at the end of relevant year and multiplied the resulting value by 100%.
3. Return on total assets equals profit for the year divided by the total assets at the end of the relevant year and multiplied the resulting value by 100%.
4. Current ratio is calculated based on the total current assets at the end of the year divided by the total current liabilities at the end of the year.
5. Interest coverage equals profit before finance costs and tax divided by finance costs in the relevant year. Finance costs incurred for the year ended 31 December 2016 arose due to the imputed interest charged for the Pre-IPO Investment. Please see the paragraph headed “Financial information – Indebtedness” in this prospectus for further details of the Pre-IPO Investment as other liabilities.
6. Gearing ratio is calculated as the total debt at the end of the year divided by total equity at the end of the respective year and multiplied by 100%. Total debts includes payables incurred not in ordinary course of business (being other liabilities).
7. Net debt to equity ratio is calculated as total debts (other liabilities) net of cash and cash equivalents and restricted cash, and at the end of the year divided by total equity at the end of the respective year and multiplied by 100%. |
20750793_145.pdf | en | # Additional information
Information on inventory balances of the Group, for only ribbed smoked sheets, concentrated latex and block rubber, are as follows:
(Unit: Thousand Baht)
<table><tr><td rowspan="2"></td><td colspan="2">Consolidated
financial statements</td><td colspan="2">Separate
financial statements</td></tr><tr><td>2018</td><td>2017</td><td>2018</td><td>2017</td></tr><tr><td>Inventories at net realisable value (NRV)*</td><td>10,411,061</td><td>15,979,154</td><td>5,886,610</td><td>7,773,263</td></tr><tr><td>Inventories at lower of cost or net</td><td></td><td></td><td></td><td></td></tr><tr><td>realisable value (NRV) - as measured and
included in the financial statements</td><td>10,201,733</td><td>15,394,383</td><td>5,793,784</td><td>7,467,859</td></tr><tr><td>Difference</td><td>209,328</td><td>584,771</td><td>92,826</td><td>305,404</td></tr></table>
\* For reporting purposes, inventories are stated at the lower of cost or net realisable value, while for inventory management purposes the Group uses net realisable value (NRV) which is the estimated selling price in the ordinary course of business less the necessary costs of completion and cost to make the sale. The use of different valuation methods for these two purposes resulted in a difference at the reporting date.
Under Thai Financial Reporting Standards, such differences are not allowed to be recognised in the profit and loss until the inventories are actually sold. The amount of such difference changes over time depending on the actual price at the time of sale.
# 10. Derivative financial instruments
(Unit: Thousand Baht)
<table><tr><td rowspan="3"></td><td colspan="4">Consolidated financial statements</td></tr><tr><td colspan="2">2018</td><td colspan="2">2017</td></tr><tr><td>Assets</td><td>Liabilities</td><td>Assets</td><td>Liabilities</td></tr><tr><td>Cross currency swaps</td><td>-</td><td>(4,479)</td><td>23,778</td><td>(55,844)</td></tr><tr><td>Foreign exchange options</td><td>641</td><td>(14,483)</td><td>-</td><td>(65,293)</td></tr><tr><td>Rubber options</td><td>127</td><td>(157)</td><td>14,161</td><td>(58,646)</td></tr><tr><td>Forward foreign exchange contracts</td><td>10,642</td><td>(45,743)</td><td>113,261</td><td>(5,183)</td></tr><tr><td>Rubber futures</td><td>45,413</td><td>(106,524)</td><td>256,739</td><td>(45,338)</td></tr><tr><td>Physical forward contracts</td><td>2,778</td><td>(17)</td><td>-</td><td>(939)</td></tr><tr><td>Total derivative financial instruments</td><td>59,601</td><td>(171,403)</td><td>407,939</td><td>(231,243)</td></tr></table> |
20750793_146.pdf | en | (Unit: Thousand Baht)
<table><tr><td rowspan="3"></td><td colspan="4">Separate financial statements</td></tr><tr><td colspan="2">2018</td><td colspan="2">2017</td></tr><tr><td>Assets</td><td>Liabilities</td><td>Assets</td><td>Liabilities</td></tr><tr><td>Cross currency swaps</td><td>-</td><td>(4,479)</td><td>23,778</td><td>(55,844)</td></tr><tr><td>Foreign exchange options</td><td>641</td><td>(11,394)</td><td>-</td><td>(48,665)</td></tr><tr><td>Rubber options</td><td>127</td><td>(157)</td><td>14,161</td><td>(58,646)</td></tr><tr><td>Forward foreign exchange contracts</td><td>1,569</td><td>-</td><td>64,804</td><td>(971)</td></tr><tr><td>Rubber futures</td><td>30,742</td><td>(95,302)</td><td>153,777</td><td>(34,004)</td></tr><tr><td>Total derivative financial instruments</td><td>33,079</td><td>(111,332)</td><td>256,520</td><td>(198,130)</td></tr></table>
# 11. Restricted bank deposits
As at 31 December 2018, the subsidiaries had fixed deposits pledged as collateral amounting to Baht 2 million (2017: Baht 12 million).
Fixed deposits, which were opened with a bank on behalf of the subsidiary, were pledged as collateral for contract compliance with government agencies.
# 12. Investments in subsidiaries
12.1 Details of investments in subsidiaries as presented in separate financial statements are as follows:
(Unit: Million Baht)
<table><tr><td>Company’s name</td><td colspan="2">Paid-up capital</td><td colspan="2">Shareholding
percentage</td><td colspan="2">Cost</td><td colspan="2">Dividend received
during the year</td></tr><tr><td></td><td>2018</td><td>2017</td><td>2018</td><td>2017</td><td>2018</td><td>2017</td><td>2018</td><td>2017</td></tr><tr><td></td><td></td><td></td><td>(%)</td><td>(%)</td><td></td><td></td><td></td><td></td></tr><tr><td>Subsidiaries</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Sri Trang USA, Inc.</td><td>179</td><td>114</td><td>100.00</td><td>100.00</td><td>179</td><td>114</td><td>-</td><td>-</td></tr><tr><td>PT Sri Trang Lingga Indonesia</td><td>359</td><td>359</td><td>90.00</td><td>90.00</td><td>330</td><td>330</td><td>-</td><td>-</td></tr><tr><td>Anvar Parawood Co., Ltd.</td><td>10</td><td>10</td><td>99.94</td><td>99.94</td><td>26</td><td>26</td><td>-</td><td>-</td></tr><tr><td>Rubberland Products Co., Ltd.</td><td>1,600</td><td>1,600</td><td>99.99</td><td>99.99</td><td>1,935</td><td>1,935</td><td>500</td><td>500</td></tr><tr><td>Namhua Rubber Co., Ltd.</td><td>500</td><td>500</td><td>99.99</td><td>99.99</td><td>560</td><td>560</td><td>-</td><td>-</td></tr><tr><td>Sadao P.S. Rubber Co., Ltd.</td><td>40</td><td>40</td><td>99.99</td><td>99.99</td><td>54</td><td>54</td><td>-</td><td>-</td></tr><tr><td>Startex Rubber Co., Ltd.</td><td>2,198</td><td>2,115</td><td>99.99</td><td>99.99</td><td>2,196</td><td>2,113</td><td>-</td><td>-</td></tr><tr><td>Premier System Engineering Co., Ltd.</td><td>50</td><td>50</td><td>82.00</td><td>82.00</td><td>100</td><td>100</td><td>-</td><td>-</td></tr><tr><td>Starlihgt Express Transport Co., Ltd.</td><td>15</td><td>15</td><td>76.67</td><td>76.67</td><td>39</td><td>39</td><td>23</td><td>25</td></tr><tr><td>Sri Trang Rubber & Plantation Co., Ltd.</td><td>6,495</td><td>6,298</td><td>99.99</td><td>99.99</td><td>6,495</td><td>6,297</td><td>-</td><td>-</td></tr><tr><td>Shi Donhg Shangai Rubber Co., Ltd.</td><td>155</td><td>155</td><td>100.00</td><td>100.00</td><td>155</td><td>155</td><td>-</td><td>-</td></tr><tr><td>Sri Trang Gloves (Thailand) Co., Ltd.</td><td>200</td><td>200</td><td>81.50</td><td>81.50</td><td>6,430</td><td>6,430</td><td>408</td><td>2,707</td></tr><tr><td>Total</td><td></td><td></td><td></td><td></td><td>18,499</td><td>18,153</td><td>931</td><td>3,232</td></tr></table> |
11684984_236.pdf | en | FINANCIAL STATEMENTS
# 32. INTANGIBLE ASSETS (CONTINUED)
<table><tr><td rowspan="2">(in RMB million)</td><td colspan="7">2016</td></tr><tr><td>Goodwill (i)</td><td>Expressway
operating
rights</td><td>Prepaid land
premiums</td><td>Core
Deposits</td><td>Trademarks</td><td>Software
and others</td><td>Total</td></tr><tr><td>Cost</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> As at 1 January 2016</td><td>12,460</td><td>11,232</td><td>8,331</td><td>15,082</td><td>2,442</td><td>5,091</td><td>54,638</td></tr><tr><td> Acquisitions of subsidiaries</td><td>–</td><td>–</td><td>914</td><td>–</td><td>7,113</td><td>2,427</td><td>10,454</td></tr><tr><td> Additions</td><td>8,468</td><td>–</td><td>830</td><td>–</td><td>–</td><td>1,234</td><td>10,532</td></tr><tr><td> Disposals of subsidiaries</td><td>–</td><td>–</td><td>–</td><td>–</td><td>(287)</td><td>(75)</td><td>(362)</td></tr><tr><td> Disposals</td><td>(289)</td><td>–</td><td>–</td><td>–</td><td>–</td><td>(124)</td><td>(413)</td></tr><tr><td> As at 31 December 2016</td><td>20,639</td><td>11,232</td><td>10,075</td><td>15,082</td><td>9,268</td><td>8,553</td><td>74,849</td></tr><tr><td>Accumulated amortization</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> As at 1 January 2016</td><td>–</td><td>2,231</td><td>679</td><td>3,393</td><td>245</td><td>3,174</td><td>9,722</td></tr><tr><td> Acquisitions of subsidiaries</td><td>–</td><td>–</td><td>–</td><td>–</td><td>28</td><td>49</td><td>77</td></tr><tr><td> Charge for the year</td><td>–</td><td>486</td><td>58</td><td>754</td><td>73</td><td>752</td><td>2,123</td></tr><tr><td> Disposals of subsidiaries</td><td>–</td><td>–</td><td>–</td><td>–</td><td>–</td><td>(30)</td><td>(30)</td></tr><tr><td> Disposals</td><td>–</td><td>–</td><td>–</td><td>–</td><td>–</td><td>(60)</td><td>(60)</td></tr><tr><td> As at 31 December 2016</td><td>–</td><td>2,717</td><td>737</td><td>4,147</td><td>346</td><td>3,885</td><td>11,832</td></tr><tr><td>Net book value</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> As at 31 December 2016</td><td>20,639</td><td>8,515</td><td>9,338</td><td>10,935</td><td>8,922</td><td>4,668</td><td>63,017</td></tr><tr><td> As at 1 January 2016</td><td>12,460</td><td>9,001</td><td>7,652</td><td>11,689</td><td>2,197</td><td>1,917</td><td>44,916</td></tr></table>
As at 31 December 2017, expressway operating rights with a carrying amount of RMB5,711 million (31 December 2016: RMB8,515 million) were pledged as collateral for long term borrowings amounting to RMB2,939 million (31 December 2016: RMB3,921 million).
As at 31 December 2017, none prepaid land premiums (31 December 2016: RMB1,178 million) were pledged as collateral for long term borrowings (31 December 2016: RMB400 million).
As at 31 December 2017, prepaid land premiums with a carrying amount of 52 million (31 December 2016: RMB84 million) were still in progress of applying for title certificates. |
11684984_237.pdf | en | # 32. INTANGIBLE ASSETS (CONTINUED)
# (I) GOODWILL
<table><tr><td rowspan="2">(in RMB million)</td><td colspan="4">2017</td></tr><tr><td>As at
1 January 2017</td><td>Additions</td><td>Disposals</td><td>As at
31 December 2017</td></tr><tr><td>Ping An Bank</td><td>8,761</td><td>–</td><td>–</td><td>8,761</td></tr><tr><td>Shanghai Jahwa</td><td>2,502</td><td>–</td><td>–</td><td>2,502</td></tr><tr><td>Mabyorn Group Limited</td><td>2,106</td><td>–</td><td>(275)</td><td>1,831</td></tr><tr><td>Ping An Securities</td><td>328</td><td>–</td><td>–</td><td>328</td></tr><tr><td>Shenzhen Ping An Commercial Property
Investment Co., Ltd.</td><td>66</td><td>–</td><td>–</td><td>66</td></tr><tr><td>Beijing Shuangronghui Investment Co., Ltd.</td><td>134</td><td>–</td><td>–</td><td>134</td></tr><tr><td>Shanghai Gezhouba Yangming Property
Co., Ltd.</td><td>241</td><td>–</td><td>–</td><td>241</td></tr><tr><td>Ping An E-wallet</td><td>1,073</td><td>–</td><td>–</td><td>1,073</td></tr><tr><td>Autohome Inc.</td><td>5,265</td><td>–</td><td>–</td><td>5,265</td></tr><tr><td>Other</td><td>163</td><td>143</td><td>–</td><td>306</td></tr><tr><td>Total</td><td>20,639</td><td>143</td><td>(275)</td><td>20,507</td></tr><tr><td>Less: Impairment losses</td><td>–</td><td>–</td><td>–</td><td>–</td></tr><tr><td>Net book value</td><td>20,639</td><td>143</td><td>(275)</td><td>20,507</td></tr></table>
<table><tr><td rowspan="2">(in RMB million)</td><td colspan="4">2016</td></tr><tr><td>As at
1 January 2016</td><td>Increase</td><td>Decrease</td><td>As at
31 December 2016</td></tr><tr><td>Ping An Bank</td><td>8,761</td><td>–</td><td>–</td><td>8,761</td></tr><tr><td>Shanghai Jahwa</td><td>2,502</td><td>–</td><td>–</td><td>2,502</td></tr><tr><td>Mabyorn Group Limited</td><td>–</td><td>2,106</td><td>–</td><td>2,106</td></tr><tr><td>Ping An Securities</td><td>328</td><td>–</td><td>–</td><td>328</td></tr><tr><td>Shenzhen Ping An Commercial Property
Investment Co., Ltd.</td><td>66</td><td>–</td><td>–</td><td>66</td></tr><tr><td>Beijing Shuangronghui Investment Co., Ltd.</td><td>134</td><td>–</td><td>–</td><td>134</td></tr><tr><td>Shanghai Gezhouba Yangming Property
Co., Ltd.</td><td>239</td><td>2</td><td>–</td><td>241</td></tr><tr><td>Ping An E-wallet</td><td>–</td><td>1,073</td><td>–</td><td>1,073</td></tr><tr><td>Autohome Inc.</td><td>–</td><td>5,265</td><td>–</td><td>5,265</td></tr><tr><td>Other</td><td>430</td><td>22</td><td>(289)</td><td>163</td></tr><tr><td>Total</td><td>12,460</td><td>8,468</td><td>(289)</td><td>20,639</td></tr><tr><td>Less: Impairment losses</td><td>–</td><td>–</td><td>–</td><td>–</td></tr><tr><td>Net book value</td><td>12,460</td><td>8,468</td><td>(289)</td><td>20,639</td></tr></table>
The primary valuation technique used is cash flow projections based on business plans approved by management covering a three to five year period and a risk adjusted discount rate. Cash flows beyond that period have been extrapolated using a steady growth rate and terminal value. Discount rates used by the Group range from 9% to 16% (2016: 9% to 15%) and growth rates, where applicable, range from 2% to 33% (2016: 2% to 34%).
The results of cash flow projections exceed the carrying amount of each related cash-generating unit or group of units. However, subsequent impairment tests may be based upon different assumptions and future cash flow projections, which may result in an impairment of these assets in the foreseeable future. |
9300299_163.pdf | en | # Intangible assets
Intangible assets acquired separately are measured initially at cost. The useful lives of intangible assets are assessed to be either finite or indefinite.
Intangible assets with indefinite useful lives are tested for impairment annually either individually or at the cash-generating unit level. Such intangible assets are not amortised. The useful life of an intangible asset with an indefinite life is reviewed annually to determine whether indefinite life assessment continues to be supportable. If not, the change in the useful life assessment from indefinite to finite is accounted for on a prospective basis.
# Investments and other financial assets
Financial assets of the Group in the scope of HKAS 39 are classified as loans and receivables. The Group determines the classification of its financial assets after initial recognition. When financial assets are recognised initially, they are measured at fair value plus, directly attributable transaction costs.
All regular way purchases and sales of financial assets are recognised on the trade date, that is, the date that the Group commits to purchase or sell the asset. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the period generally established by regulation or convention in the marketplace.
# Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial measurement, such assets are subsequently measured at amortised cost using the effective interest rate method less any allowance for impairment. Amortised cost is calculated taking into account any discount or premium on acquisition and includes fees that are an integral part of the effective interest rate. The effective rate amortisation is included in interest income in the income statement. The loss arising from impairment is recognised in the income statement in other operating expenses.
# Impairment of financial assets
The Group assesses at the end of each reporting period whether there is any objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events that has occurred after the initial recognition of the asset (an incurred “loss event”) and that loss event has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include indications that a debtor or a group of debtors is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganisation and observable data indicating that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.
# Assets carried at amortised cost
For financial assets carried at amortised cost, the Group first assesses individually whether objective evidence of impairment exists for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be, recognised are not included in a collective assessment of impairment.
If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred). The present value of the estimated future cash flows is discounted at the financial asset’s original effective interest rate (that is, the effective interest rate computed at initial recognition). If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate. |
9300299_164.pdf | en | The carrying amount of the asset is reduced either directly or through the use of an allowance account and the amount of the loss is recognised in the income statement. Interest income continues to be accrued on the reduced carrying amount and is accrued using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. Loans and receivables together with any associated allowance are written off when there is no realistic prospect of future recovery and all collateral has been realised or has been transferred to the Group.
If, in a subsequent period, the amount of the estimated impairment loss increases or decreases because of an event occurring after the impairment was recognised, the previously recognised impairment loss is increased or decreased by adjusting the allowance account. If a future write-off is later recovered, the recovery is credited to the income statement.
# Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when:
• the rights to receive cash flows from the asset have expired;
• the Group has transferred the rights to receive cash flows from the asset, or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement; and
• either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, and has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognised to the extent of the Group’s continuing involvement in the asset. In that case, the Group also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained.
# Financial liabilities at amortised cost
Financial liabilities including trade and other payables and due to shareholders are initially stated at fair value plus directly attributable transaction costs. After initial recognition, financial liabilities are subsequently measured at amortised cost, using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.
Gains and losses are recognised in the income statement when the liabilities are derecognised as well as through the effective interest rate method amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. The effective interest rate amortisation is included in finance costs in the income statement.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled, or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and a recognition of a new liability, and the difference between the respective carrying amounts is recognised in the income statement.
# Offsetting financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the combined statements of financial position if, and only if, there is currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously. |
9267732_8.pdf | en | # Provision of money lending services
During the nine months ended 30 September 2020, the impact of the global pandemic caused a general suspension in economic activities and the strict measures adopted for social distancing in general led to the worsening of individual employment and a significant drop in business operations. Similarly, the PRC Mainland market was also affected and hence the credit risk in the money lending services was perceived to be higher accordingly. Given the stringent economic and business outlook, the Group strictly adhered to cautious credit assessment and reviewed the Group’s policies by timely assessing existing and potential clients’ credit profile with reference to the then market condition and their respective background. In view of the current uncertain economic condition that affected projection on assets valuation, business forecasts and individual’s repayment abilities, the Group continued to adopt a prudent approach in selecting qualified credit applicants for potential business opportunities. Accordingly, there was a significant decrease in revenue generated for this business segment to approximately HK\$0.01 million for the nine months ended 30 September 2020 (for the nine months ended 30 September 2019: approximately HK\$0.41 million).
# Outlook
In view of the current social and economic challenges encountered in the PRC Mainland and globally, the Group believed that the strategies to explore appropriate new business and regional markets in order to mitigate overall business risks is the proper approach for sustainable operation. The Group hopes the business segment in the provision of education management services in the PRC Mainland will gradually recover in the second half of 2020, while the pandemic in the PRC Mainland remains stable and controlled. The business segments of trading of precious metal and money lending require cautious assessment and robust risk control management. The Group will continue to explore further opportunities to strengthen business and market presence in its business segment of provision of education management services as well as to manage its business segments of trading of precious metal and money lending on a cautious and prudent basis. All in all, the Group will continue to strive for balance in further developing its existing business model whereas securing the return and value to the shareholders of the Company as a whole. |
9267732_9.pdf | en | # Financial Review
For the nine months ended 30 September 2020, the Group had a total revenue of approximately HK\$6.4 million (for the nine months ended 30 September 2019: approximately HK\$195.9 million), representing a decrease of approximately 96.7% as compared with the nine months ended 30 September 2019. For the nine months ended 30 September 2020, the Group recorded a loss of approximately HK\$27.4 million (for the nine months ended 30 September 2019: approximately HK\$26.4 million), representing an increase of approximately 3.8% as compared with the nine months ended 30 September 2019. The increase in loss was mainly attributable to net effect of:
(i) a significant decrease in the Group’s total revenue of approximately 96.7% as discussed in above;
(ii) for the nine months ended 30 September 2020, approximately HK\$4.1 million for the carrying value of inventories sold was recognised (for the nine months ended 30 September 2019: approximately HK\$185 million);
(iii) the fair value loss on investment in unlisted equity securities of approximately HK\$2.5 million;
(iv) a provision of loss allowance of approximately HK\$1.4 million provided on loan receivable;
(v) a decrease in trading losses on commodity forward contracts of approximately HK\$2.7 million;
(vi) a decrease in employee costs of approximately HK\$3.4 million; and
(vii) a decrease in other operating expenses of approximately HK\$3.2 million.
For the nine months ended 30 September 2020, the Group’s loss attributable to owners of the Company was approximately HK\$26.4 million, as compared to the loss attributable to owners of the Company of approximately HK\$27.2 million for the nine months ended 30 September 2019.
# Gearing ratio
The Group monitors capital on the basis of the net gearing ratio. This ratio is calculated as net debt divided by total capital.
As at 30 September 2020, no gearing ratio was presented as the Group has net cash surplus (31 December 2019: net cash surplus). |
3454366_105.pdf | en | # 9 TAXATION (Continued)
The movement in gross deferredi ncome tax assets andl iabilities during the year, without takingi nto consideration the offsetting of balances within the same taxj urisdiction,i s as follows:
# Deferred tax assets
<table><tr><td rowspan="2"></td><td>Amortization
of operating
lease</td></tr><tr><td>HK$’000</td></tr><tr><td>At 1 January 2017</td><td>2,142</td></tr><tr><td>Credited to the consolidated income statement</td><td>178</td></tr><tr><td>Exchange differences</td><td>156</td></tr><tr><td>At 31 December 2017 and 1 January 2018</td><td>2,476</td></tr><tr><td>Credited to the consolidated income statement</td><td>41</td></tr><tr><td>Disposal of a subsidiary</td><td>(2,573)</td></tr><tr><td>Exchange differences</td><td>56</td></tr><tr><td>At 31 December 2018</td><td>–</td></tr></table>
# Deferred tax liabilities
<table><tr><td rowspan="2"></td><td>Unrealized
earning</td><td>Amortization
of operating
lease</td><td> Total</td></tr><tr><td>HK$’000</td><td> HK$’000</td><td> HK$’000</td></tr><tr><td>At 1 January 2017</td><td>−</td><td>(1,003)</td><td>(1,003)</td></tr><tr><td>Charged to the consolidated income statement</td><td>(241)</td><td>(301)</td><td>(542)</td></tr><tr><td>Exchange differences</td><td>(12)</td><td>(81)</td><td>(93)</td></tr><tr><td>At 31 December 2017 and 1 January 2018</td><td>(253)</td><td>(1,385)</td><td>(1,638)</td></tr><tr><td>Charged to the consolidated income statement</td><td>(42)</td><td>(129)</td><td>(171)</td></tr><tr><td>Disposal of a subsidiary</td><td>–</td><td>1,547</td><td>1,547</td></tr><tr><td>Exchange differences</td><td>13</td><td>(33)</td><td>(20)</td></tr><tr><td>At 31 December 2018</td><td>(282)</td><td>–</td><td>(282)</td></tr></table>
Deferred tax assets are recognized for taxl osses carry-forward to the extent that the realization of the related tax benefit through the future taxable profitsi s probable. As at 31 December 2018, the Group had unrecognized tax losses of approximately HK\$339,020,000 (2017: approximately HK\$344,853,000) to carry forward against future taxablei ncome, subject to agreement by the Inland Revenue Department of Hong Kong andl ocal tax bureau of the PRC. The decrease of unrecognized tax lossesi s mainly attributed to the disposal of Beijing Si Hai Jun Tian Trading Company Limited (“Si Hai Jun Tian”) andl apsed of certain taxl osses of the PRC subsidiaries during the year ended 31 December 2018. No deferred taxation has been recognisedi n respect of the taxl osses due to unpredictability of future profit streams. The taxl osses of the PRC subsidiaries have an expiry period of five years, while the taxl osses of Hong Kong subsidiaries have no expiry date. |
3454366_106.pdf | en | # 9 TAXATION (Continued)
# Deferred tax liabilities (Continued)
The Group did not recognize deferredi ncome tax assets of approximately HK\$1,112,000 (2017: approximately HK\$2,571,000) in respect of taxl osses of approximately HK\$4,449,000 (2017: approximately HK\$10,282,000) that will expirei n five years from the yeari ncurred. The remaining tax losses of approximately HK\$334,571,000 (2017: approximately HK\$334,571,000) can be carried forwardi ndefinitely to offset against future taxablei ncome.
Deferredi ncome taxl iabilities of HK\$2,306,000 have not been recognized for the withholding tax and other taxes that would be payable on the unremitted earnings of certain subsidiaries andj oint ventures for the year ended 31 December 2017. Total unremitted earnings amounted to HK\$23,059,000 as at 31 December 2017. The unrecognized deferredi ncome taxl iabilitiesi n relation to the unremitted earnings decrease to nil is attributed to the disposal of Hao You during the year ended 31 December 2018.
# 10 EARNINGS/(LOSS) PER SHARE
Basic earnings/(loss) per sharei s calculated by dividing the profit/(loss) attributable to equity holders of the Company by the weighted average number of ordinary sharesi ni ssue during the year. Diluted earnings/(loss) per sharei s calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. Diluted earnings/(loss) per share for the years ended 31 December 2018 and 2017 were the same as basic earnings/(loss) per share as the Company had no potentially dilutive ordinary sharesi ni ssue during these years.
<table><tr><td></td><td>2018</td><td>2017</td></tr><tr><td>Weighted average number of ordinary shares in issue (thousands)</td><td>13,498,107</td><td>13,498,107</td></tr><tr><td>Loss from continuing operations attributable to equity
holders of the Company (HK$’000)</td><td>(67,026)</td><td>(142,528)</td></tr><tr><td>Basic and diluted loss per share from continuing operations
attributable to equity holders of the Company
(HK cents per share)</td><td>(0.49)</td><td>(1.06)</td></tr><tr><td>Profit from discontinued operations attributable to
equity holders of the Company (HK$’000)</td><td>140,763</td><td>38,859</td></tr><tr><td>Basic and diluted earnings per share from discontinued operations
attributable to equity holders of the Company
(HK cents per share)</td><td>1.04</td><td>0.29</td></tr><tr><td>Earnings/(loss) per share attributable to equity holders of the
Company
(HK cents per share)</td><td>0.55</td><td>(0.77)</td></tr></table> |
9262469_63.pdf | en | In 2021, the Senior Management of the Bank discussed the substantive assessment results of previous years and decided to continue using the substantive assessment results of previous years considering that there are no significant changes in the business and operating environment.
# Response to the UN SDG
The Bank actively responds to UN Sustainable Development Goals to contribute to the global SDG in implementing social responsibility strategies. |
9262469_64.pdf | en | <table><tr><td colspan="2">SDG</td><td>Specific measures</td><td>Social responsibility
toipcs</td><td>Section(s)</td></tr><tr><td rowspan="2"> cimonocE</td><td></td><td>Improve governance system
Equal emlpoyment and
protect emlpoyees’ rihgts
and interests
Offer reasonable
professional development
channels
Provide strong support to
real economy
Support small and micro
enterprises</td><td>Serve small and micro
enterprises
Favourable emlpoyment
environment
Promote professional
development
Improve business
performance
Overall risk management</td><td>Optimising
corporate
governance
Serving private,
small and micro
enterprises
Facilitating rural
revitalisation
Driving emerging
industries
Broadening career
channels</td></tr><tr><td></td><td>Diigtisation
Support economic
transformation
Serve agriculture, rural areas
and farmers
Boost infrastructure
construction</td><td>Promote economic
development
Improve real economy
Build intelligent outlets
Inclusive finance in rural
areas</td><td>Serving private,
small and micro
enterprises
Facilitating rural
revitalisation
Driving emerging
industries
Supporting
projects for public
benefits</td></tr><tr><td rowspan="2"> laicoS</td><td></td><td>Conduct targeted poverty
alleviation in an efficient and
orderly way
Boost infrastructure
construction</td><td>Practice targeted poverty
relief
Inclusive finance in rural
areas</td><td>Facilitating rural
revitalisation
Supporting
projects for public
benefits</td></tr><tr><td></td><td>Create a healthy working
environment
Care about emlpoyees’
hillhpysca and menta ealth</td><td>Safety protection
measures
Pay attention to health
and safety</td><td>Caring for
emlpoyees’
hilpysca and
mental health
Building a warm
and family-like
corporate culture</td></tr></table> |
3443363_131.pdf | en | # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Sole Member and the Board of Directors of LG&E and KU Energy LLC
# Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of LG&E and KU Energy LLC and subsidiaries (the “Company”) as of December 31, 2017 and 2016, the related consolidated statements of income, comprehensive income, equity, and cash flows, for the years then ended, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2017 and 2016, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
# Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Louisville, Kentucky
February 22, 2018
We have served as the Company’s auditor since 2015. |
3443363_132.pdf | en | # Report of Independent Registered Public Accounting Firm
# The Board of Directors and Sole Member of LG&E and KU Energy LLC
We have audited the accompanying consolidated statements of income, comprehensive income, equity, and cash flows of LG&E and KU Energy LLC and subsidiaries for the year ended December 31, 2015. Our audit also included the financial statement schedule listed in the Index at Item 15(a)(2) for the year ended December 31, 2015. These financial statements and schedule are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements and schedule based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company's internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated results of operations and cash flows of LG&E and KU Energy LLC and subsidiaries for the year ended December 31, 2015, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule for the year ended December 31, 2015, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.
/s/ Ernst & Young LLP
Louisville, Kentucky
February 19, 2016 |
20735847_228.pdf | en | # Finance costs – net
Finance costs increased by approximately RMB0.1 million, or 11.8%, from approximately RMB1.1 million for 6M2018 to approximately RMB1.2 million for 6M2019 primarily due to the increase in bank borrowings drawn in 6M2019.
# Income tax expense
Our income tax expense increased by approximately RMB1.1 million, or 15.8%, from approximately RMB6.7 million for 6M2018 to approximately RMB7.7 million for 6M2019 primarily due to the increase in Listing expenses incurred from nil for 6M2018 to approximately RMB6.4 million for 6M2019, which was not deductible for tax purpose. For further details, please refer to the paragraph headed “Selected items of consolidated statements of comprehensive income— Income tax expense” in this section.
# Profit for the year
As a result of the foregoing, our profit for the period decreased by approximately RMB3.3 million, or approximately 16.5%, from approximately RMB19.8 million for 6M2018 to approximately RMB16.5 million for 6M2019.
# FY2018 compared to FY2017
# Revenue
Our revenue increased by approximately RMB155.5 million, or 52.1%, from approximately RMB298.7 million for FY2017 to approximately RMB454.2 million for FY2018. This increase was primarily due to the combined effect of the increase in both the sales volume and average selling price of all our PHC pile and commercial concrete products as a result of the increased market demand. The increases were primarily driven by the growth in the construction industry in Jiangsu Province and the increased demand from our customers for the development of residential and commercial projects in Qidong City.
• PHC pile. Our revenue from sales of PHC pile increased from approximately RMB158.6 million in FY2017 and to approximately RMB230.9 million in FY2018. The increase in revenue from sales of PHC pile for FY2018 of approximately RMB72.3 million, or 45.6% was primarily due to the increase in sales volume of our PHC pile.
We sold approximately 1.1 million metres and 1.2 million metres of PHC pile for FY2017 and FY2018, respectively. The increase in sales volume was primarily due to the increase in sales volume of grade 500 PHC pile as a result of the new orders from Customer N (one of our ten largest customers in FY2018) of approximately 61,000 metres combined with the increase sales volume of grade 600 PHC pile as a result of the additional orders in FY2018 from Customer G (one of our five largest customers in FY2017 and FY2018) of approximately 36,000 metres. The increase was partially offset by the decrease in sales volume of grade 400 PHC pile as we tend to focus on the production of grade 500 PHC pile and grade 600 PHC pile which are of relatively higher strength as compared to grade 400 PHC pile. |
20735847_229.pdf | en | • Square pile. Our revenue from sales of square pile increased from approximately RMB0.2 million in FY2017 to approximately RMB2.4 million in FY2018. The increase in revenue from sales of square pile for FY2018 of approximately RMB2.2 million, or 1,182.8%, was primarily due to the increase in sales volume of our square pile.
We sold approximately 2,000 metres and 15,000 metres of square pile for FY2017 and FY2018, respectively. The increase in sales volume was primarily due to increase in sales volume of our square pile as a result of new orders from Customer R of approximately 11,000 metres in FY2018.
• Commercial concrete. Our revenue from sales of commercial concrete increased from approximately RMB139.9 million in FY2017 to approximately RMB220.9 million in FY2018. The increase in revenue from sales of commercial concrete for FY2018 of approximately RMB81.0 million, or 57.9% was primarily due to the increase in sales volume of our commercial concrete.
We sold approximately 0.4 million m3 and 0.5 million m3 of commercial concrete for FY2017 and FY2018, respectively. The increase in sales volume was primarily due to the increase in sales volume of grade C10-C25 commercial concrete as a result of the new orders in FY2018 from Customer K (one of our five largest customers in FY2018) of approximately 63,000 m3.
# Cost of sales
Our cost of sales increased by approximately RMB127.8 million, or 51.7%, from approximately RMB247.0 million for FY2017 to approximately RMB374.7 million for FY2018 primarily due to the combined effect of the increase in sales volume of both our PHC pile and commercial concrete products. The increase was generally in line with the growth of revenue for FY2018.
# Gross profit and gross profit margin
As a result of the foregoing, our gross profit increased by approximately RMB27.8 million, or 53.7%, from approximately RMB51.7 million for FY2017 to approximately RMB79.5 million for FY2018. Our gross profit margin remained relatively stable at approximately 17.3% and 17.5% for FY2017 and FY2018.
• PHC piles. Gross profit margin of PHC pile increased from approximately 14.4% for FY2017 to approximately 18.1% for FY2018. The increase in gross profit margin of PHC pile was primarily due to the increase in average selling price of the product increased at a faster rate than the cost of sales as a result of our pricing strategy. The strong pricing power we enjoyed was primarily due to the highly concentrated market landscape for PHC pile in Nantong. According to the F&S Report, the PHC pile industry in Nantong was very concentrated with only four PHC pile manufacturers and our Group had a market share of approximately 7.1% in Nantong in terms of PHC pile production volume in 2018. |
20753384_463.pdf | en | # 33 IMMEDIATE AND ULTIMATE CONTROLLING PARTIES
As at 31 December 2021, the directors consider the immediate parent to be MicroPort Scientific, which is incorporated in British Virgin Islands and does not produce financial statements available for public use.
As at 31 December 2021, the directors consider the ultimate controlling party is MicroPort, which is incorporated in Cayman Islands. MicroPort is listed on the Main Board of The Stock Exchange of Hong Kong Limited and produces financial statements available for public use.
# 34 POSSIBLE IMPACT OF AMENDMENTS, NEW STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE FOR THE RELEVANT PERIODS
Up to the date of issue of the Historical Financial Information, the HKICPA has issued a number of amendments, new standards and interpretations which are not yet effective for the accounting period beginning on 1 January 2022 and which have not been adopted in the Historical Financial Information. These include the following:
<table><tr><td></td><td>Effective for
accounting periods
beignning on or after</td></tr><tr><td>Annual Improvements to HKFRSs 2018-2020</td><td> 1 January 2022</td></tr><tr><td>Amendments to HKFRS 3, Reference to the Conceptual Framework</td><td>1 January 2022</td></tr><tr><td>Amendments to HKAS 16, Property, Plant and Equipment: Proceeds beforeI ntended Use</td><td>1 January 2022</td></tr><tr><td>Amendments to HKAS 37, Onerous Contracts– Cost of Fulfilling a Contract</td><td>1 January 2022</td></tr><tr><td>Amendments to HKAS 1, Classification ofL iabilities as Current orN on-current</td><td>1 January 2023</td></tr><tr><td>HKFRS 17, Insurance contracts</td><td>1 January 2023</td></tr><tr><td>Amendments to HKAS 1 and HKFRS Practice Statement 2, Disclosure ofA ccounting Policies</td><td>1 January 2023</td></tr><tr><td>Amendments to HKAS 8, Definition ofA ccounting Estimates</td><td>1 January 2023</td></tr><tr><td>Amendments to HKAS 12, Deferred Tax related toA ssets andL iabilities arisinlgf rom a Singe
Transaction</td><td>1 January 2023</td></tr><tr><td>Amendments to HKFRS 10 and HKAS 28, Sale or contribution of assets between an investor and its
associate orj oint venture</td><td>To be determined</td></tr></table>
The Group is in the process of making an assessment of what the impact of these amendments is expected to be in the period of initial application. So far the Group has concluded that the adoption of them is unlikely to have a significant impact on the Group’s consolidated financial statements.
# 35 SUBSEQUENT EVENTS
On 22 June 2022, a share subdivision was approved by the shareholders of the Company, pursuant to which, each issued and unissued share capital was subdivided to five shares of the corresponding class with par value of US\$0.00002 each.
# SUBSEQUENT FINANCIAL STATEMENTS
No audited financial statements have been prepared by the Company and its subsidiaries in respect of any period subsequent to 31 December 2021. |
20753384_464.pdf | en | The following information does not form part of the Accountants’ Report from KPMG, Certified Public Accountants, Hong Kong, the Company’s reporting accountants, as set out in Appendix I to this prospectus, and is included for illustrative purposes only. The unaudited pro forma financial information should be read in conjunction with the “Financial Information” section in this prospectus and the Accountants’ Report set out in Appendix I to this prospectus.
# A. UNAUDITED PRO FORMA STATEMENT OF ADJUSTED CONSOLIDATED NET TANGIBLE ASSETS
The following unaudited pro forma statement of adjusted consolidated net tangible assets of the Group prepared in accordance with Rule 4.29 of the Listing Rules and with reference to Accounting Guideline 7 ‘‘Preparation of Pro Forma Financial Information for Inclusion in Investment Circulars’’ issued by the Hong Kong Institute of Certified Public Accountants and is set out below to illustrate the effect of the Global Offering on the consolidated net tangible assets of the Group attributable to the equity shareholders of the Company as at 31 December 2021 as if the Global Offering had taken place on 31 December 2021.
The unaudited pro forma statement of adjusted consolidated net tangible assets has been prepared for illustrative purposes only and because of its hypothetical nature, it may not give a true picture of the consolidated net tangible assets of the Group attributable to equity shareholders of the Company had the Global Offering been completed as at 31 December 2021 or any future date.
<table><tr><td rowspan="2"></td><td>Consolidated net
tanibllige abilities
attributable to equity
shareholders of the
Company as at
31 December 2021 (1)</td><td>Estimated
net proceeds
from the
Global
Offering (2)(5)</td><td>Estimated
impact upon
the
conversion of
the Series A-1
Preferred
Shares and
the Series A-2
Preferred
Shares (3)</td><td>Unaudited
pro forma
adjusted
consolidated
net taniblge
assets
attributable
to equity
shareholders
of the
Company as
at
31 December
2021</td><td colspan="2">Unaudited pro
forma adjusted
consolidated net
taniblge assets
attributable to equity
shareholders of the
Company
per Share (4)</td></tr><tr><td>RMB’000</td><td> RMB’000</td><td> RMB’000</td><td> RMB’000</td><td> RMB</td><td> HK$ (5)</td></tr><tr><td>Based on an Offer Price of
HK$24.64 per Offer Share</td><td>(302,325)</td><td>263,425</td><td>1,237,990</td><td>1,199,090</td><td>2.06</td><td>2.41</td></tr></table>
Notes:
(1) The consolidated net tangible liabilities attributable to equity shareholders of the Company as at 31 December 2021 is based on the consolidated net liabilities attributable to equity shareholders of the Company of RMB174,940,000 as at 31 December 2021, less the intangible assets of RMB127,385,000, as extracted from the Accountants’ Report set out in Appendix I to this Prospectus.
(2) The estimated net proceeds from the Global Offering are based on 13,700,000 new Shares and the indicative Offer Price of HK\$24.64 per Share, after deduction of estimated underwriting fees and other related listing expenses payable by the Company (excluding listing expenses of RMB26,338,000 which have been accounted for prior to 31 December 2021) and does not take account of any Shares which may be issued upon the exercise of the Over-allotment Option.
(3) The aggregated balance of the liability portion of the Series A-1 Preferred Shares and the Series A-2 Preferred Shares was RMB1,237,990,000 as of 31 December 2021 (as set out in Note 27 of Appendix I in this prospectus). Upon the Listing, the Series A-1 Preferred Shares and the Series A-2 Preferred Shares will be automatically converted into ordinary shares of the Company and will be re-designated from liabilities to equity.
(4) The unaudited pro forma adjusted net tangible assets attributable to equity shareholders of the Company per Share is arrived at after adjustments on the basis that a total of 582,658,100 Shares were in issue assuming that the Global Offering and the Share Subdivision had been completed on 31 December 2021, (including the completion of the |
2885817_41.pdf | en | # Other Income (Expense), Net
<table><tr><td rowspan="3"></td><td colspan="3">Fiscal Years Ended November 30,</td><td colspan="2">Percent Change</td></tr><tr><td>2018</td><td>2017</td><td>2016</td><td>2018 to 2017</td><td>2017 to 2016</td></tr><tr><td colspan="3">(in thousands)</td><td></td><td></td></tr><tr><td>Other income (expense), net</td><td>$ (8,984)</td><td>$ 1,123</td><td>$ 5,461</td><td>(900.0)%</td><td>79.4%</td></tr><tr><td>Percentage of revenue</td><td>(0.04)%</td><td>0.01%</td><td>0.04%</td><td></td><td></td></tr></table>
Amounts recorded as other income (expense), net include foreign currency transaction gains and losses, other than cash flow hedges, investment gains and losses, non-service component of pension costs, debt extinguishment gains and losses and other non-operating gains and losses, such as changes in the fair value of convertible debt conversion spread, and settlements received from class actions lawsuits.
Other income (expense), net decreased from net other income in fiscal year 2017 to net other (expense) in fiscal year 2018, primarily due to the adverse impact from changes in foreign currency exchange rates of \$16.6 million, mainly in our Latin American businesses and an increase in the non-service component of pensions costs due to the acquisition of Convergys. These losses and expenses were partially offset by gains of \$10.0 million related to changes in the fair value of the conversion spread of convertible debentures assumed in connection with the acquisition of Convergys and extinguishment gains on settlement of certain of those debentures. These losses were also partially offset by a gain of \$2.8 million recognized upon reclassification of a cost-method investment as a trading security.
The decrease in other income (expense), net in fiscal year 2017, compared to fiscal year 2016, was primarily due to a \$5.0 million benefit received from class-action legal settlements in our Technology Solutions segment.
# Provision for Income Taxes
<table><tr><td rowspan="3"></td><td colspan="3">Fiscal Years Ended November 30,</td><td colspan="2">Percent Change</td></tr><tr><td>2018</td><td>2017</td><td>2016</td><td>2018 to 2017</td><td>2017 to 2016</td></tr><tr><td colspan="3">(in thousands)</td><td></td><td></td></tr><tr><td>Provision for income taxes</td><td>$ 156,779</td><td>$ 163,558</td><td>$ 121,059</td><td>(4.1)%</td><td>35.1%</td></tr><tr><td>Percentage of income before income taxes</td><td>34.28%</td><td>35.19%</td><td>34.00%</td><td></td><td></td></tr></table>
Income taxes consist of our current and deferred tax expense resulting from our income earned in domestic and foreign jurisdictions.
The Tax Cuts and Jobs Act of 2017 (the “TCJA”) provides for significant changes to the U.S. Internal Revenue Code of 1986, as amended, including lowering the U.S. federal corporate income tax rate from 35% to 21%, implementing a territorial tax system, imposing a one-time tax on foreign unremitted earnings and setting limitations on deductibility of certain costs (e.g., interest expense), among other things. Accordingly, we recorded a net adjustment of \$33.1 million related to the TCJA during fiscal year 2018. This adjustment included a \$59.8 million of transition tax expense for mandatory repatriation, partially offset by a \$26.7 million of tax benefit from the remeasurement of our net deferred tax balance to the new U.S. tax rate enacted under the TCJA.
Excluding the impact of the adjustments related to the TCJA, our effective tax rate during fiscal year 2018 was 27.04%. The current year tax rate is lower compared to the prior year, primarily due to the impact of the lower tax rate under the TCJA. The decrease in tax rate was also due to the mix of taxable income in different geographic regions and the impact of the Convergys acquisition.
The differences in our effective tax rates between fiscal years 2017 and 2016 was primarily due to the mix of taxable income in different geographic regions and, to a lesser extent, the reversal of certain tax reserves as a result of the expiration of the statute of limitations in certain tax jurisdiction.
Further information on the treatment of undistributed foreign earnings and a reconciliation of the federal statutory income tax rate to our effective tax rate can be found in Note 16 of the Consolidated Financial Statements included in Part II, Item 8 of this Report. |
2885817_42.pdf | en | # Liquidity and Capital Resources
# Cash Conversion Cycle
<table><tr><td rowspan="3"></td><td rowspan="3"></td><td colspan="3">Three Months Ended</td></tr><tr><td>November 30,
2018</td><td>November 30,
2017</td><td>November 30,
2016</td></tr><tr><td colspan="3">(Amounts in thousands)</td></tr><tr><td>Days sales outstanding</td><td></td><td></td><td></td><td></td></tr><tr><td>Revenue (products and services)</td><td>(a)</td><td>$ 5,622,201</td><td>$ 5,311,877</td><td>$ 3,886,902</td></tr><tr><td>Accounts receivable, including receivable from
related parties</td><td>(b)</td><td>3,855,496</td><td>2,846,448</td><td>1,756,596</td></tr><tr><td>Days sales outstanding</td><td>(c) = (b)/((a)/the
number of days
during the
period)</td><td>62</td><td>49</td><td>41</td></tr><tr><td>Days inventory outstanding</td><td></td><td></td><td></td><td></td></tr><tr><td>Cost of revenue (products and services)</td><td>(d)</td><td>$ 4,970,717</td><td>$ 4,849,909</td><td>$ 3,508,116</td></tr><tr><td>Inventories</td><td>(e)</td><td>2,518,319</td><td>2,162,626</td><td>1,741,734</td></tr><tr><td>Days inventory outstanding</td><td>(f) = (e)/((d)/the
number of days
during the
period)</td><td>46</td><td>41</td><td>45</td></tr><tr><td>Days payable outstanding</td><td></td><td></td><td></td><td></td></tr><tr><td>Cost of revenue (products and services)</td><td>(g)</td><td>$ 4,970,717</td><td>$ 4,849,909</td><td>$ 3,508,116</td></tr><tr><td>Accounts payable, including payable to
related parties</td><td>(h)</td><td>3,048,102</td><td>2,643,608</td><td>1,713,834</td></tr><tr><td>Days payable outstanding</td><td>(i) = (h)/((g)/the
number of days
during the
period)</td><td>56</td><td>50</td><td>44</td></tr><tr><td>Cash conversion cycle</td><td>(j) = (c)+(f)-(i)</td><td>52</td><td>40</td><td>42</td></tr></table>
# Cash Flows
Our Technology Solutions business is working capital intensive. Our working capital needs are primarily to finance accounts receivable and inventory. We rely heavily on term loans, accounts receivable arrangements, our securitization programs and our revolver programs for our working capital needs. We have financed our growth and cash needs to date primarily through cash generated from operations and financing activities. As a general rule, when sales volumes are increasing, our net investment in working capital dollars typically increases, which generally results in decreased cash flow generated from operating activities. Conversely, when sales volume decreases, our net investment in working capital dollars typically decreases, which generally results in increases in cash flows generated from operating activities. We calculate cash conversion cycle as days of the last fiscal quarter’s sales outstanding in accounts receivable plus days of supply on hand in inventory, less days of the last fiscal quarter’s direct cost outstanding in accounts payable. Our cash conversion cycle was 52 days, 40 days and 42 days at the end of fiscal years 2018, 2017 and 2016, respectively. The increase in fiscal year 2018, compared to the prior two years, was primarily a result of higher days sales outstanding due the Convergys acquisition which was included from the date of acquisition. In addition, higher inventory due to growth and the impact of more revenue recorded on a net basis in our Technology Solutions segment also increased our cash conversion cycle.
To increase our market share and better serve our customers, we may further expand our operations through investments or acquisitions. We expect that such expansion would require an initial investment in working capital, personnel, facilities and operations. These investments or acquisitions would likely be funded primarily by our existing cash and cash equivalents, additional borrowings, or the issuance of securities.
Net cash provided by operating activities was \$100.7 million in fiscal year 2018, primarily generated from our net income of \$300.6 million, adjustments for non-cash items of \$204.9 million, an increase in accounts payable of \$382.0 million and the net change in other assets and liabilities of \$94.1 million, partially offset by an increase in accounts receivable of \$513.0 million, and an increase in inventories of \$367.9 million. The increase in accounts payable and inventories was primarily due to |
8405325_190.pdf | en | # A . 財務資料
# 合併全面收益表
<table><tr><td rowspan="3"></td><td rowspan="3">附註</td><td colspan="3">截至十二月三十一日止年度</td></tr><tr><td>二零零八年</td><td>二零零九年</td><td>二零一零年</td></tr><tr><td>人民幣千元</td><td>人民幣千元</td><td>人民幣千元</td></tr><tr><td>收益 . . . . . . . . . . . . . . . . . . . . . . . . . .</td><td>5</td><td>133,349</td><td>346,549</td><td>374,883</td></tr><tr><td>營運成本 . . . . . . . . . . . . . . . . . . . . . . .</td><td></td><td>(71,987)</td><td>(222,937)</td><td>(204,823)</td></tr><tr><td>毛利 . . . . . . . . . . . . . . . . . . . . . . . . . .</td><td></td><td>61,362</td><td>123,612</td><td>170,060</td></tr><tr><td>其他收入 . . . . . . . . . . . . . . . . . . . . . . .</td><td>6</td><td>4,292</td><td>4,803</td><td>26</td></tr><tr><td>市場推廣及宣傳開支 . . . . . . . . . . . . . . . .</td><td></td><td>(820)</td><td>(1,779)</td><td>(2,979)</td></tr><tr><td>行政開支 . . . . . . . . . . . . . . . . . . . . . . .</td><td></td><td>(2,093)</td><td>(3,348)</td><td>(6,267)</td></tr><tr><td>[ . ]開支 ........................</td><td></td><td>—</td><td> —</td><td>(21,531)</td></tr><tr><td>融資成本 . . . . . . . . . . . . . . . . . . . . . . .</td><td>7</td><td>(816)</td><td>(1,317)</td><td>(3,640)</td></tr><tr><td>除稅前溢利 . . . . . . . . . . . . . . . . . . . . . .</td><td></td><td>61,925</td><td>121,971</td><td>135,669</td></tr><tr><td>所得稅開支 . . . . . . . . . . . . . . . . . . . . . .</td><td>8</td><td>(16,261)</td><td>(33,130)</td><td>(40,639)</td></tr><tr><td>年度溢利及全面收益總額 . . . . . . . . . . . . .</td><td></td><td>45,664</td><td>88,841</td><td>95,030</td></tr><tr><td>每股盈利</td><td>11</td><td></td><td></td><td></td></tr><tr><td>基本（ 人民幣）. . . . . . . . . . . . . . . . . . . .</td><td></td><td>0.57</td><td>0.80</td><td>0.38</td></tr></table> |
8405325_191.pdf | en | # 合併財務狀況表
<table><tr><td rowspan="3"></td><td rowspan="3">附註</td><td colspan="3">於
十二月三十一日</td></tr><tr><td>二零零八年</td><td>二零零九年</td><td>二零一零年</td></tr><tr><td>人民幣千元</td><td>人民幣千元</td><td>人民幣千元</td></tr><tr><td>非流動資產</td><td></td><td></td><td></td><td></td></tr><tr><td>物業、廠房及設備 . . . . . . . . . . . . . . . .</td><td>13</td><td>43,272</td><td>40,407</td><td>376,300</td></tr><tr><td>已付收購物業、廠房及設備的按金 . . . . .</td><td></td><td>18,700</td><td>28,494</td><td>273</td></tr><tr><td>租賃按金 . . . . . . . . . . . . . . . . . . . . . .</td><td> 14 (a)</td><td>1,000</td><td>3,000</td><td>—</td></tr><tr><td></td><td></td><td>62,972</td><td>71,901</td><td>376,573</td></tr><tr><td>流動資產</td><td></td><td></td><td></td><td></td></tr><tr><td>貿易及其他應收款項 . . . . . . . . . . . . . . .</td><td> 14 (b)</td><td>65,707</td><td>230,249</td><td>280,440</td></tr><tr><td>應收一名董事款項 . . . . . . . . . . . . . . . .</td><td>15</td><td>29,216</td><td>82,121</td><td>—</td></tr><tr><td>銀行結餘及現金 . . . . . . . . . . . . . . . . . .</td><td>16</td><td>973</td><td>1,764</td><td>12,520</td></tr><tr><td></td><td></td><td>95,896</td><td>314,134</td><td>292,960</td></tr><tr><td>流動負債</td><td></td><td></td><td></td><td></td></tr><tr><td>貿易及其他應付款項 . . . . . . . . . . . . . . .</td><td>17</td><td>44,535</td><td>130,009</td><td>127,678</td></tr><tr><td>應付一名董事款項 . . . . . . . . . . . . . . . .</td><td>15</td><td>11,382</td><td>11,395</td><td>26,464</td></tr><tr><td>應付稅項 . . . . . . . . . . . . . . . . . . . . . .</td><td></td><td>16,664</td><td>49,503</td><td>39,185</td></tr><tr><td>有抵押銀行借貸 . . . . . . . . . . . . . . . . . .</td><td>18</td><td>7,500</td><td>27,500</td><td>40,000</td></tr><tr><td></td><td></td><td>80,081</td><td>218,407</td><td>233,327</td></tr><tr><td>流動資產淨值 . . . . . . . . . . . . . . . . . . .</td><td></td><td>15,815</td><td>95,727</td><td>59,633</td></tr><tr><td>資產淨值 . . . . . . . . . . . . . . . . . . . . . .</td><td></td><td>78,787</td><td>167,628</td><td>436,206</td></tr><tr><td>資本及儲備</td><td></td><td></td><td></td><td></td></tr><tr><td>實繳資本╱[ . ] . . . . . . . . . . . . . . . . . . .</td><td>19</td><td>39,406</td><td>39,406</td><td>39,451</td></tr><tr><td>儲備 . . . . . . . . . . . . . . . . . . . . . . . . .</td><td></td><td>39,381</td><td>128,222</td><td>396,755</td></tr><tr><td>權益總額 . . . . . . . . . . . . . . . . . . . . . .</td><td></td><td>78,787</td><td>167,628</td><td>436,206</td></tr></table> |
2919848_106.pdf | en | # 35. OPERATING LEASE ARRANGEMENTS
# (a) As lessor
The Group leases its investment properties (note 14 to the financial statements) under operating lease arrangements, with leases negotiated for terms mainly ranging from five to ten years. The terms of the leases generally also require the tenants to pay security deposits and provide for periodic rent adjustments according to the then prevailing market conditions.
As at 31 December 2018, the Group had total future minimum lease receivables under non-cancellable operating leases with its tenants falling due as follows:
<table><tr><td rowspan="2"></td><td>2018</td><td>2017</td></tr><tr><td>HK$’000</td><td>HK$’000</td></tr><tr><td>Within one year</td><td>20,491</td><td>17,079</td></tr><tr><td>In the second to fifth years, inclusive</td><td>88,342</td><td>74,662</td></tr><tr><td>After five years</td><td>65,456</td><td>99,347</td></tr><tr><td></td><td>174,289</td><td>191,088</td></tr></table>
# (b) As lessee
The Group leases certain of its office buildings, retail shops and warehouses under operating lease arrangements. Leases for the properties are negotiated for terms ranging from one to ten years.
At 31 December 2018, the Group had total future minimum lease payments under non-cancellable operating leases falling due as follows:
<table><tr><td rowspan="2"></td><td>2018</td><td>2017</td></tr><tr><td>HK$’000</td><td>HK$’000</td></tr><tr><td>Within one year</td><td>2,765</td><td>4,240</td></tr><tr><td>In the second to fifth years, inclusive</td><td>4,426</td><td>7,339</td></tr><tr><td>After five years</td><td>8,966</td><td>–</td></tr><tr><td></td><td>16,157</td><td>11,579</td></tr></table> |
2919848_107.pdf | en | # 36. COMMITMENTS
In addition to the operating lease commitments detailed in note 35 above, the Group had the following capital commitments at the end of the reporting period:
<table><tr><td rowspan="2"></td><td>2018</td><td>2017</td></tr><tr><td>HK$’000</td><td>HK$’000</td></tr><tr><td>Contracted, but not provided for:</td><td></td><td></td></tr><tr><td>Plant and machinery</td><td>7,796</td><td>–</td></tr><tr><td>Acquisition of equity investment</td><td>1,138</td><td>–</td></tr><tr><td></td><td>8,934</td><td>–</td></tr></table>
# 37. RELATED PARTY TRANSACTIONS
# (a) Compensation of key management personnel of the Group
<table><tr><td rowspan="2"></td><td>2018</td><td>2017</td></tr><tr><td>HK$’000</td><td>HK$’000</td></tr><tr><td>Short term employee benefits</td><td>14,017</td><td>11,092</td></tr><tr><td>Equity-settled share option benefits</td><td>5,625</td><td>5,081</td></tr><tr><td>Total compensation paid to key management personnel</td><td>19,642</td><td>16,173</td></tr></table>
Further details of directors’ emoluments are included in note 8 to the financial statements.
# (b) Loans from a director
<table><tr><td rowspan="2"></td><td>2018</td><td>2017</td></tr><tr><td>HK$’000</td><td>HK$’000</td></tr><tr><td>Mr. Tse Kam Pang</td><td>12,000</td><td>12,000</td></tr></table>
Mr. Tse Kam Pang is one of the directors and also the Chairman of the Company. As at 31 December 2018, loans with an aggregate amount of HK\$12,000,000 are unsecured, interest-free and not repayable within the next twelve months.
# (c) Other transactions with related parties:
The Chairman of the Company has unconditional guaranteed certain bank loans and other loans made to the Group of up to HK\$90,000,000 (2017: HK\$40,000,000) as at the end of the reporting period, as further detailed in note 26(ii) to the financial statements.
# (d) Outstanding balances with related parties:
(i) The Group had an outstanding balance due to its non-controlling interests of HK\$41,102,000 (2017: HK\$42,438,000) as at the end of the reporting period, as further detailed in note 31 to the financial statements.
(ii) Details of the Group’s other receivable balances with its associate as at the end of the reporting period are disclosed in note 21 to the financial statements. |
20742632_14.pdf | en | An analysis of revenue by segment is as follows:
<table><tr><td rowspan="3">Products by industry</td><td colspan="2">Year ended 31 December</td></tr><tr><td>2018</td><td>2017</td></tr><tr><td>(RMB’000)</td><td>(RMB’000)</td></tr><tr><td>Design, survey and consultancy</td><td>3,514,181</td><td>2,976,736</td></tr><tr><td>Construction contracting</td><td>3,671,965</td><td>3,995,809</td></tr><tr><td>Total</td><td>7,186,146</td><td>6,972,545</td></tr></table>
# DESIGN, SURVEY AND CONSULTANCY SEGMENT
The design, survey and consultancy segment includes design, survey and consultancy services for urban rail transit construction as well as industrial and civil construction and municipal administration. The design, survey and consultancy segment has been the traditional and core business of the Group. In 2018, in the unfavorable context of slowdown in investment in rail transit, the Group intensively developed existing markets by fully utilizing the technical advantages in the industry, consolidated its dominant status in urban rail transit design, properly performed existing contracts and focused on following up state-level new areas and third-tire and fourth-tire cities, and expanded its business into 65 domestic and overseas cities, and improved the influence of its urban construction brand. In 2018, tenders for new rail transit lines were launched in only 14 cities in rail transit industry across the nation, but the Company still won the bids for a total of 6 overall design projects in Beijing, Chongqing, Xi’an, Delingha and Hangzhou, and maintained the largest market share in the industry.
For the year ended 31 December 2018, the design, survey and consultancy segment of the Group achieved a revenue of RMB3,514 million, representing an increase of RMB537 million or 18.04% compared to RMB2,977 million for the corresponding period in 2017. Among which, the revenue of the urban rail transit construction business amounted to RMB2,848 million, representing an increase of RMB330 million or 13.11% compared to RMB2,518 million for the corresponding period of last year. The revenue of the industrial and civil construction and municipal construction business amounted to RMB666 million, representing an increase of RMB207 million or 45.10% compared to RMB459 million for the corresponding period of last year.
Revenue distribution of the design, survey and consultancy segment |
20742632_15.pdf | en | # CONSTRUCTION CONTRACTING SEGMENT
The construction contracting segment of the Group focuses on the services for urban rail transit construction projects and relevant infrastructure construction projects. The construction contracting projects undertaken by the Group covered cities, including Beijing, Kunming, Zunyi, Suzhou, Zhengzhou and Huangshan. |
3448895_17.pdf | en | # UHS BEHAVIORAL HEALTH DIVISION
Strategic growth in the U.K. has expanded the reach of Cygnet Health Care Limited. Cygnet Hospital Stevenage, located north of London, is one of 21 Cygnet Health Care facilities with 1,100 patient beds serving residents of the U.K.
Last year, UHS acquired Alpha Hospitals, four behavioral health hospitals in the U.K. The facilities were an excellent fit geographically and complemented the services provided at our Cygnet Health Care Limited hospitals, acquired one year earlier. The Division now operates 21 hospitals in the U.K., with 1,100 beds.
UHS continued its strategy to enhance mental health care in the United States through acquisitions, organic growth and strategic alliances.
Specifically, Foundations Recovery Network, a premier provider of addiction treatment, will strengthen our services with four residential treatment facilities and eight outpatient centers that treat co-occurring addiction and mental health disorders. UHS will utilize Foundations Recovery Network’s specialty direct to consumer marketing, national sales team, web-based marketing, and call center to support the growth of our specialty eating disorders, trauma, autism and neuropsychiatry programs. |
3448895_18.pdf | en | Organic growth in the division contributed to the addition of 344 new beds in key markets. Fremont Hospital in California added 52 beds, including an eating disorder and women’s trauma care program. Forest View Hospital in Michigan and Palo Verde Behavioral Health in Arizona both expanded adolescent and adult beds and Newport News Behavioral Health Center opened its first acute inpatient psychiatric beds to serve children and adolescents in Virginia.
To meet the aging population’s increased demand for services in its community, The BridgeWay in Arkansas added a 20-bed senior care unit. Other expansion projects included the conversion of 18 acute beds to an “Extended Acute Care Unit” (EAC) at Brooke Glen Behavioral Hospital in Pennsylvania and 16 beds from residential treatment to acute care services at Brynn Marr Hospital in North Carolina.
Construction of a new, 80-bed acute behavioral health hospital in Stuart, Florida is underway and scheduled for completion in 2016.
# CREATING STRATEGIC PARTNERSHIPS TO ADDRESS COMMUNITY BEHAVIORAL HEALTH NEEDS
Nationally, health systems identify the need to collaborate with specialty behavioral health providers to deliver mental health services. UHS Behavioral Health Integration Solutions, our new line of business, leverages our expertise and resources to develop mutually beneficial strategic partnerships with healthcare systems. During the year, key relationships were established creating access to quality mental health programs and services while reducing unnecessary emergency department use, lowering readmission rates, improving outcomes and increasing patient satisfaction.
The Canyon in Malibu, California is an exclusive co-occurring residential treatment program acquired as part of the Foundations Recovery Network purchase. Four residential treatment facilities and eight outpatient centers were added in Georgia, California and Tennessee. |
7569408_19.pdf | en | # CAPITAL COMMITMENTS
<table><tr><td rowspan="2"></td><td>2020</td><td>2019</td></tr><tr><td>HK$’000</td><td>HK$’000</td></tr><tr><td>Cailpta exdipenture in reshpect of te acquisition of property,
lpant and eiqupment contracted for but not provided in the
consolidated financial statements</td><td>27,000</td><td>–</td></tr></table>
# CORPORATE GOVERNANCE
The Company has applied the principles as set out in the Corporate Governance Code (the “CG Code”) contained in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange (the “Listing Rules”).
The Board is of the view that during the Current Period, the Company has complied with all the code provisions as set out in the CG Code.
# MODEL CODE FOR DIRECTORS’ SECURITIES TRANSACTIONS
The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix 10 to the Listing Rules (the “Securities Dealing Code”).
The Company has made specific enquiry of all the Directors and all the Directors have confirmed that they complied with the required standard set out in the Securities Dealing Code during the Current Period and throughout the period up to the date of this announcement.
# AUDIT COMMITTEE
The Audit Committee comprises three members, all of whom are independent non-executive Directors, namely Mr. Leung Ho Chi, Mr. Tse Yung Hoi and Mr. Chan Ching Sum. Mr. Leung Ho Chi is the chairman of the Audit Committee. The Audit Committee has written terms of reference in compliance with the Listing Rules and the CG Code.
The Audit Committee has in conjunction with the management reviewed the accounting principles and practices adopted by the Group and discussed risk management, internal controls and financial reporting matters of the Group. The Audit Committee has no disagreement with the accounting treatment adopted by the Company. The consolidated annual results of the Group for the Current Period have been reviewed by the Audit Committee. |
7569408_20.pdf | en | # SCOPE OF WORK OF SHINEWING (HK) CPA LIMITED
The figures above in respect of the Group’s consolidated statement of financial position, consolidated statement of profit or loss and other comprehensive income and the related notes thereto for the year ended 31 March 2020 as set out in this preliminary results announcement have been agreed with the Group’s auditor, SHINEWING (HK) CPA Limited, to the amounts set out in the Group’s audited consolidated financial statements for the year ended 31 March 2020. The work performed by SHINEWING (HK) CPA Limited in this respect did not constitute an assurance engagement in accordance with Hong Kong Standards on Auditing, Hong Kong Standards on Review Engagements or Hong Kong Standards on Assurance Engagements issued by the Hong Kong Institute of Certified Public Accountants and consequently no assurance has been expressed by SHINEWING (HK) CPA Limited on this preliminary announcement.
# PUBLICATION OF ANNUAL RESULTS AND ANNUAL REPORT
This announcement is published on the Company’s corporate website at www.vicointernational.hk and the HKEXnews at www.hkexnews.hk. The 2019/2020 Annual Report of the Company will be dispatched to shareholders of the Company and published on the aforesaid websites in due course.
# 2020 ANNUAL GENERAL MEETING
The 2020 AGM of the Company is scheduled to be held on Wednesday, 2 September 2020. Notice of the 2020 AGM will be published on the websites of both the Stock Exchange and the Company and dispatched to the Company’s shareholders in due course.
# APPRECIATION
The Board would like to extend its sincere thanks to the Group’s shareholders, business partners and customers for their utmost support to the Group. The Group would also like to take this opportunity to thank all management members and staff for their hard work and dedication throughout the year.
By order of the Board
Vico International Holdings Limited
Hui Pui Sing
Chairman
Hong Kong, 24 June 2020
As at the date of this announcement, the executive directors are Mr. Hui Pui Sing, Ms. Tong Man Wah, Mr. Hui Yip Ho Eric, Ms. Hui Wing Man Rebecca and Mr. Kong Man Ho, the non-executive director is Mr. Wong Chun Man and the independent non-executive directors are Mr. Leung Ho Chi, Mr. Chan Ching Sum and Mr. Tse Yung Hoi. |
3442452_63.pdf | en | # Substantial shareholders’ and other persons’ interests and short positions in shares and underlying shares
As at 31 December 2018, so far as is known to the Directors, the following persons (other than a Director or chief executive of the Company) had or were deemed or taken to have an interest or short position in the shares or underlying shares of the Company which would fall to be disclosed to the Company and the Stock Exchange under the provisions of Divisions 2 and 3 of Part XV of the SFO, or which were recorded in the register required to be kept under section 336 of the SFO:
<table><tr><td>Name of shareholder</td><td>Nature of interest</td><td>Number of
ordinary
shares of
the Company
interested</td><td>Percentage of
th’e Companys
issued share
(3)capital </td></tr><tr><td>Hong Kong (Rong An) Investment Limited
(“Hong Kong Rong An”)</td><td>Beneficial owner</td><td>804,064,808</td><td>37.83%</td></tr><tr><td>CECEP Chongqing Industry Co., Ltd.
(“CECEP Chongqing”) (1)</td><td>Interest in controlled
corporation</td><td>804,064,808</td><td>37.83%</td></tr><tr><td>China Energy Conservation and
Environmental Protection Group
(“CECEP”) (2)</td><td>Interest in controlled
corporation</td><td>804,064,808</td><td>37.83%</td></tr><tr><td>Kingom Power Limited
(“Kingom Power”)</td><td>Beneficial owner</td><td>643,720,000</td><td>30.29%</td></tr><tr><td>Winwett Investments Limited</td><td>Beneficial owner</td><td>136,820,000</td><td>6.44%</td></tr><tr><td>Mr. Huang Shao Rong</td><td>Beneficial owner</td><td>19,587,000</td><td>0.92%</td></tr><tr><td></td><td>Nominee for another person
(other than a bare trustee)</td><td>208,532,000</td><td>9.81%</td></tr><tr><td>Ever Luxuriant Global Trading Limited</td><td>Beneficial owner</td><td>208,532,000</td><td>9.81%</td></tr><tr><td>Mr. Lin Haibin</td><td>Beneficial owner</td><td>27,723,000</td><td>1.30%</td></tr><tr><td></td><td>Nominee for another person
(other than a bare trustee)</td><td>172,538,000</td><td>8.12%</td></tr><tr><td>Haibin International Investments Limited</td><td>Beneficial owner</td><td>172,538,000</td><td>8.12%</td></tr><tr><td>Export – Import Bank of China</td><td>Person having a security
interest in shares</td><td>300,000,000</td><td>14.12%</td></tr></table> |
3442452_64.pdf | en | Notes:
(1) CECEP Chongqing owned 100% of the issued share capital of Hong Kong Rong An, and was thus deemed to be interested in all shares of the Company that Hong Kong Rong An was interested in under the SFO.
(2) CECEP Chongqing was a non-wholly-owned subsidiary of CECEP. CECEP was therefore deemed to be interested in all shares of the Company CECEP Chongqing was interested in under the SFO.
(3) Based on a total of 2,125,308,000 issued shares of the Company as at 31 December 2018.
Save as disclosed above, as at 31 December 2018, the Directors were not aware of any other person who had interests or short positions in the shares or underlying shares of the Company which would fall to be disclosed to the Company and the Stock Exchange under the provisions of Divisions 2 and 3 of Part XV of the SFO, or which were recorded in the register required to be kept under section 336 of the SFO.
# Emolument policies
The Group’s emolument policies are formulated on the performance of individual employees and on the basis of the salary trends in Hong Kong and the PRC, and will be reviewed regularly. Subject to the Group’s profitability, the Group may also distribute discretionary bonus to its employees as an incentive for their contribution to the Group. The Group has adopted a share option scheme for its employees as described in the paragraph below.
# Permitted Indemnity
Pursuant to the Articles of Association of the Company, the applicable laws and regulations, every Director shall be indemnified and secured harmless out of the assets and profits of the Company against all actions, costs, charges, losses, damages and expenses which they or any of them may incur or sustain in the execution of their duties in their offices. Such permitted indemnity provision has been in force throughout the year under review. The Company has arranged appropriate Directors’ and officers’ liability insurance coverage for the Directors and officers of the Group.
# Share option scheme
The Company has a share option scheme which was adopted on 31 March 2011 whereby the Directors are authorised, at their discretion, to invite employees of the Group, including directors of any company in the Group, to take up options to subscribe for shares of the Company. The purpose of the scheme is to provide an opportunity for employees of the Group to acquire an equity participation in the Company and to encourage them to work towards enhancing the value of the Company and its shares for the benefit of the Company and its shareholders as a whole. |
11750865_5.pdf | en | \[ A ( S ) \ne S \, ; \qquad \qquad \qquad \qquad \qquad \qquad ( 2 . 1 4 ) \]
since \( A \neq { \mathrm { I d } } \), such a subspace exists. Consider the vector bundle V on Y constructed in (2.11) using S. As before, P(V ) denotes the projective bundle over Y parametrizing the lines in the fibers of V .
There is an embedding
\[ \delta : P ( V ) \longrightarrow Q \qquad \qquad \qquad \qquad \qquad ( 2 . 1 5 ) \]
which we will now describe. For the map f in (2.2), the image \( f \circ \delta ( P ( V ) ) \) is the point given by the quotient
\[ 0 \, \longrightarrow \, { \widehat V } \, \longrightarrow \, { \mathcal O } _ { X } ^ { \oplus r } \, \longrightarrow \, \bigl ( \bigoplus _ { i = 1 } ^ { d _ { p } - 1 } ( { \mathcal O } _ { X } ^ { \oplus r } ) _ { x _ { i } } / H _ { i } \bigr ) \oplus \bigl ( { \mathcal O } _ { X } ^ { \oplus r } \bigr ) _ { x _ { 0 } } / S \bigr ) \, \longrightarrow \, 0 \, . \]
where \( H _ { i } \) are the hyperplanes fixed above; in particular, \( f \circ \delta \) is a constant map. Note that bV is an extension of the vector bundle V to X. For any point \( y \in Y \) and any point in the fiber \( y ^ { \prime } \in P ( V ) _ { y } \), consider the short exact sequence on X
\[ 0 \, \longrightarrow \, E \, \longrightarrow \, \widehat { V } ^ { * } \, \longrightarrow \, ( \oplus _ { j = 1 } ^ { d _ { z } - 1 } ( \widehat { V } _ { y _ { j } } ^ { * } / L _ { j } ^ { \perp } ) \oplus ( \widehat { V } _ { y } ^ { * } / L ( y ^ { \prime } ) ^ { \perp } ) \, \longrightarrow \, 0 \, , \]
where \( L ( y ^ { \prime } ) \, \subset \, V _ { y } \) is the line in \( V _ { y } \) corresponding to the above point \( y ^ { \prime } \), and \( L _ { j } ^ { \perp } \, \subset \, \widehat { V } _ { y _ { j } } ^ { * } \) (respectively, \( L ( y ^ { \prime } ) ^ { \perp } \subset \widehat { V } _ { y } ^ { * } ) \) is the annihilator of \( L _ { j } \) (respectively, \( L ( y ^ { \prime } ) ) \); note that \( \widehat { V } _ { y _ { j } } \) is identified with \( \mathbb { C } ^ { r } \) and \( \widehat { V } _ { y } \) is identified with \( V _ { y } \). Therefore, we have
\[ \widehat { V } \hookrightarrow E ^ { * } . \]
The map \( \delta \) in (2.15) sends any \( y ^ { \prime } \) to the above extension \( E ^ { * } \) of bV constructed from \( y ^ { \prime } \).
From (2.10) we know that \( \mathrm { P G L } ( r , \mathbb { C } ) \) is contained in \( \operatorname { A u t } ( p ^ { - 1 } ( U ) ) \) with
\[ 0 \oplus { \mathfrak { g } } \, \subset \, { \mathfrak { g } } \oplus { \mathfrak { g } } \, = \, H ^ { 0 } ( p ^ { - 1 } ( U ) , \, T ( p ^ { - 1 } ( U ) ) ) \]
as its Lie algebra. This action of \( \mathrm { P G L } ( r , \mathbb { C } ) \) on \( p ^ { - 1 } ( U ) \) clearly preserves the intersection \( \delta ( P ( V ) ) \cap p ^ { - 1 } ( U ) \). Therefore, if the action of the element A in (2.13) extends to Q, then the extended action must preserve the image \( \delta ( P ( V ) ) \).
On the other hand, from Lemma 2.3 we know that the action of A on \( P ( V ) | _ { Y \backslash \{ y _ { 0 } \} } \) does not extend to P(V ) because (2.14) holds. This completes the proof of the theorem.
# 3. Holomorphic maps from a symmetric product
Proposition 3.1. Let X and Y be compact connected Riemann surface with
\[ \operatorname { g e n u s } ( X ) \, \geq \, \operatorname { g e n u s } ( Y ) \, \geq \, 2 \, . \]
If there is a nonconstant holomorphic map \( \beta \; : \; \mathrm { S y m } ^ { d } ( Y ) \; \longrightarrow \; X \), then \( d \)= 1, and \( \beta \) is an isomorphism. |
11750865_6.pdf | en | Proof. Let \( \beta \, : \, \mathrm { S y m } ^ { d } ( Y ) \, \longrightarrow \, X \) be a nonconstant holomorphic map. Let
\[ \beta ^ { * } \, : \, H ^ { 0 } ( X , \, \Omega _ { X } ^ { 1 } ) \, \longrightarrow \, H ^ { 0 } ( \mathrm { S y m } ^ { d } ( Y ) , \, \Omega _ { \mathrm { S y m } ^ { d } ( Y ) } ^ { 1 } ) \]
be the pull-back of 1–forms defined by \( \omega \longmapsto \beta ^ { * } \omega \). This homomorphism \( \beta ^ { * } \) is injective, because \( \beta \) is surjective. Since
\[ \mathrm { d i m } \, H ^ { 0 } ( \mathrm { S y m } ^ { d } ( Y ) , \, \Omega _ { \mathrm { S y m } ^ { d } ( Y ) } ^ { 1 } ) \, = \, \mathrm { g e n u s } ( Y ) \]
[Ma, p. 322, (4.3)], the injectivity of \( \beta ^ { * } \) implies that \( \operatorname { g e n u s } ( Y ) \; \geq \; \operatorname { g e n u s } ( X ) \). Therefore, the given condition \( \operatorname { g e n u s } ( X ) \ \geq \operatorname { g e n u s } ( Y ) \) implies that
• \( \operatorname { g e n u s } ( X ) \, = \, \operatorname { g e n u s } ( Y ) \), and
• the above homomorphism \( \beta ^ { * } \) is an isomorphism.
If \( d \geq \) 2, the wedge product
\[ \wedge ^ { 2 } H ^ { 0 } ( \mathrm { S y m } ^ { d } ( Y ) , \, \Omega _ { \mathrm { S y m } ^ { d } ( Y ) } ^ { 1 } ) \, \longrightarrow \, H ^ { 0 } ( \mathrm { S y m } ^ { d } ( Y ) , \, \Omega _ { \mathrm { S y m } ^ { d } ( Y ) } ^ { 2 } ) \]
is a nonzero homomorphism [Ma, p. 325, (6.3)]. On the other hand, the wedge product on \( H ^ { 0 } ( X , \, \Omega _ { X } ^ { 1 } ) \) is the zero homomorphism because \( H ^ { 0 } ( X , \, \Omega _ { X } ^ { 2 } ) \; = \; 0 \). In other words, \( \beta ^ { * } \) is not compatible with the wedge product operation on holomorphic 1-forms if \( d \geq \) 2. So we conclude that \( d \) = 1.
Since \( \mathrm { g e n u s } ( X ) \, = \, \mathrm { g e n u s } ( Y ) \), from Riemann–Hurwitz formula for Euler characteristic if follows that \( \mathrm { d e g r e e } ( \beta ) \) = 1. In other words, \( \beta \) is an isomorphism.
Let \( X ^ { \prime } \) be a compact connected Riemann surface of genus at least two. Fix positive integers \( r ^ { \prime } \ge \) 2, \( d _ { p } ^ { \prime } \) and \( d _ { z } ^ { \prime } \). Let
\[ \boldsymbol { \mathcal { Q } } ^ { \prime } \, = \, \boldsymbol { \mathcal { Q } } _ { X } ^ { \prime } ( \boldsymbol { r } ^ { \prime } , d _ { p } ^ { \prime } . d _ { z } ^ { \prime } ) \]
be the corresponding generalized quot scheme (see (2.2)).
Proposition 3.2. If the two varieties \( \mathcal { Q } ^ { \prime } \) and Q (constructed in (2.2)) are isomorphic, then X is isomorphic to \( X ^ { \prime } \).
Proof. Assume that \( Q \) 0 and Q are isomorphic. We will show that X and \( X ^ { \prime } \) are isomorphic.
Let \( \eta \, : \, \mathrm { S y m } ^ { d _ { p } } ( X ) \times \mathrm { S y m } ^ { d _ { z } } ( X ) \, \longrightarrow \, \mathrm { P i c } ^ { d _ { p } } ( X ) \times \mathrm { P i c } ^ { d _ { z } } ( X ) \) be the morphism defined by
\[ \left( ( x _ { 1 } \, , \, \cdot \, \cdot \, , x _ { d _ { p } } ) \, , ( y _ { 1 } \, , \, \cdot \, \cdot \, , y _ { d _ { z } } ) \right) \longmapsto \left( { \mathcal { O } } _ { X } ( x _ { 1 } + \, . \, . \, . + x _ { d _ { p } } ) \, , { \mathcal { O } } _ { X } ( y _ { 1 } + \, . \, . \, . \, + y _ { d _ { z } } ) \right) . \]
Since the general fiber of the map p in (2.5) is a product of copies of projective spaces, the composition
\[ \eta \circ p : \, \mathcal { Q } \longrightarrow \operatorname { P i c } ^ { d _ { p } } ( X ) \times \operatorname { P i c } ^ { d _ { z } } ( X ) \]
is the Albanese map for Q, as there is no nonconstant holomorphic map from a projec-tive space to an abelian variety. In particular, the Albanese variety of Q is of dimension |
9236040_37.pdf | en | # Financial Risks
Details of the Company’s Financial Risk exposures are provided as follows:
# Foreign Exchange
The Company sells its bullion and gold concentrate in USD. Most of its costs are denominated in SEK and EUR with an interest-bearing liability denominated in HKD, while the Company’s presentation currency is AUD.
The Company may use foreign exchange forwards from time to time to reduce exposure to unpredictable fluctuations in the foreign exchange rates if considered suitable by the Directors. No hedging of foreign exchange exposure was used during the period.
# Commodity Price
The Company is exposed to movements in the gold price. The Company may use a variety of financial instruments (such as gold forwards and gold call options) from time to time to reduce exposure to unpredictable fluctuations in the project life revenue streams if considered suitable by the Directors. At present the Company has no plans to hedge commodity price risk.
# Liquidity
The Company is exposed to liquidity risk through its financial liabilities and its obligations to make payment on its financial liabilities as and when they fall due. The Company maintains a balance in its approach to funding using debt and or equity raisings.
# Credit
Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted. The Company’s maximum exposures to credit risk at reporting date in relation to each class of financial asset is the carrying amount of those assets as indicated in the Consolidated Interim Statement of Financial Position.
Credit risk is managed on a group basis and predominantly arises from cash and cash equivalents deposited with banks and financial institutions, trade and other receivables and environmental and other bonds. While the Company has policies in place to ensure that sales are made to customers with an appropriate credit history, the Company is exposed to a concentration of credit risk in relation to its gold concentrate sales to a nearby smelter in Finland.
# Interest Rate
Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate because of changes in market interest rates. Cash flow interest rate risk is the risk that the future cash flow from a financial instrument will fluctuate because of changes in market interest rates. The Company’s policy is to manage its exposure to interest rate risk by holding cash in short term, fixed and variable rate deposits with reputable high credit quality financial institutions. The Company constantly analyses its interest rate exposure. Consideration is given to potential renewals of existing positions, alternative financing and or the mix of fixed and variable interest rates. |
9236040_38.pdf | en | # Costs
Fuel, power, labour, and all other costs can vary from existing rates and assumptions.
# Charges on Company Assets
There were no charges on the Company’s assets as at 30 June 2021 or 31 December 2020.
# Contingent Liabilities
As at 30 June 2021, there are no material updates to the contingent liabilities contained in Company’s 2020 Annual Report.
# Company Strategy
The Company is principally engaged in gold exploration, mining, and processing in the Nordic region. The Company’s objective is to focus on the development of existing and new mining assets in reasonable proximity to our process plants in Vammala, Finland and Svartliden, Sweden. The Company operates with a long-term business strategy to operate responsibly considering the interests of all stakeholders including its staff, contractors, and the public including civic groups, together with the environment and the general amenity of its areas of operation. It aims to produce positive financial outcomes through (i) the economic operations of its operating mines and process plants; (ii) development of new projects consistent with the Company’s objective, such as the Group’s newest operations at Fäboliden; and (iii) attention to the Company’s corporate and social responsibilities, including a focus on ongoing safety and environmental compliance, and ongoing positive interaction with the communities within which it operates.
# Significant Investments Held, Material Acquisitions and Disposal of Subsidiaries, and Future Plans for Material Investments or Capital Assets
Save for those disclosed in this announcement, there were no other significant investments held, nor were there material acquisitions or disposals of subsidiaries during the period. Apart from those disclosed in this announcement, there was no plan authorised by the Board for other material investments or additions of capital assets at the date of this announcement.
# Purchase, Sale or Redemption of the Company’s Listed Securities
During the period ended 30 June 2021, neither the Company nor any of its subsidiaries had purchased, sold, or redeemed any of the Company’s listed shares. |
20747065_21.pdf | en | # Internet of Things
The Internet of Things (IoT) is about making intelligent digitally-enabled and connected products. The falling costs of key infrastructure and the proliferation of consumer and enterprise user applications have proven a catalyst.
During 2015-17, companies announced \$98 billion worth of M&A deals in this segment. IoT also attracted \$3.5 billion in CVC investments, spread across all the major sectors. Such investments point towards a burgeoning IoT ecosystem that includes wearables, sensors, infrastructure and smart products across many sectors, including smart utilities, connected home, industrial IoT, connected health and automobiles.
Amazon acquired Ring, maker of smart home doorbells, cameras, and security systems |
20747065_22.pdf | en | # Robotics and Drones
Signi cant advances in new materials, computing and battery power as well as the rapid growth in both industrial and consumer applications is stimulating investment in robotics. These investments range from industrial automation and drones to service process automation.
The robotics segment received nearly \$7 billion worth of M&A investments, seven times more than the \$1 billion corporate venture investments in this segment. M&A was dominated by technology and industrials. Corporate venture investments in this segment came from a range of non-tech sectors, such as industrials, media and consumer business.
M&A by Sector
(By deal volumes)
Boeing acquired Aurora Flight Sciences, developer and manufacturer of advanced aerospace platforms and autonomous drone systems |
7480056_6.pdf | en | The following is an analysis of the Group’s assets and liabilities by operating segments:
<table><tr><td rowspan="4"></td><td colspan="2">Exhibition and events</td><td colspan="2">Cultural and entertainment</td><td colspan="2">Financing</td><td colspan="2">Total</td></tr><tr><td>At
31 December
2020</td><td>At
30 June
2020</td><td>At
31 December
2020</td><td>At
30 June
2020</td><td>At
31 December
2020</td><td>At
30 June
2020</td><td>At
31 December
2020</td><td>At
30 June
2020</td></tr><tr><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td></tr><tr><td>(Unaudited)</td><td>(Audited)</td><td>(Unaudited)</td><td>(Audited)</td><td>(Unaudited)</td><td>(Audited)</td><td>(Unaudited)</td><td>(Audited)</td></tr><tr><td>Assets</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Segment assets</td><td>85,025</td><td>86,051</td><td>479,872</td><td>544,971</td><td>404,046</td><td>461,062</td><td>968,943</td><td>1,092,084</td></tr><tr><td>Unallocated corporate assets</td><td></td><td></td><td></td><td></td><td></td><td></td><td>51,934</td><td>65,286</td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>1,020,877</td><td>1,157,370</td></tr><tr><td>Liabilities</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Segment liabilities</td><td>1,768</td><td>6,815</td><td>32,969</td><td>119,140</td><td>7,645</td><td>6,735</td><td>42,382</td><td>132,690</td></tr><tr><td>Unallocated corporate liabilities</td><td></td><td></td><td></td><td></td><td></td><td></td><td>186,856</td><td>327,027</td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>229,238</td><td>459,717</td></tr></table>
For the purpose of monitoring segment performance and allocating resources between segments:
— all assets are allocated to reportable segments other than corporate assets; and
— all liabilities are allocated to reportable segments other than corporate liabilities.
# Other segment information
# For the six months ended 31 December
<table><tr><td rowspan="4"></td><td colspan="2">Exhibition and events</td><td colspan="2">Cultural and entertainment</td><td colspan="2">Financing</td><td colspan="2">Unallocated</td><td colspan="2">Total</td></tr><tr><td>2020</td><td>2019</td><td>2020</td><td>2019</td><td>2020</td><td>2019</td><td>2020</td><td>2019</td><td>2020</td><td>2019</td></tr><tr><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td></tr><tr><td>(Unaudited)</td><td>(Unaudited)</td><td>(Unaudited)</td><td>(Unaudited)</td><td>(Unaudited)</td><td>(Unaudited)</td><td>(Unaudited)</td><td>(Unaudited)</td><td>(Unaudited)</td><td>(Unaudited)</td></tr><tr><td>Depreciation of property,
lpant and eiqupment</td><td>(39)</td><td>(41)</td><td>(283)</td><td>(133)</td><td>(17)</td><td>(4)</td><td>(628)</td><td>(732)</td><td>(967)</td><td>(910)</td></tr><tr><td>Depreciation of rihgt-of-use assets</td><td>(135)</td><td>(422)</td><td>(538)</td><td>(900)</td><td>–</td><td>–</td><td>(2,646)</td><td>(2,874)</td><td>(3,319)</td><td>(4,196)</td></tr><tr><td>Write-off of property,
lpant and eiqupment</td><td>(94)</td><td>–</td><td>(8)</td><td>(24)</td><td>–</td><td>–</td><td>(1)</td><td>–</td><td>(103)</td><td>(24)</td></tr><tr><td>Cailpta exdipentures</td><td>–</td><td>–</td><td>(21)</td><td>(39)</td><td>(35)</td><td>(23)</td><td>–</td><td>(618)</td><td>(56)</td><td>(680)</td></tr><tr><td>Net gain/(loss) on financial
assets at FVTPL</td><td>–</td><td>(3,727)</td><td>–</td><td>–</td><td>–</td><td>–</td><td>1,082</td><td>(7,358)</td><td>1,082</td><td>(11,085)</td></tr><tr><td>Gain/(loss) on disposal of subsidiaries</td><td>2,412</td><td>(2,818)</td><td>–</td><td>–</td><td>–</td><td>–</td><td>–</td><td>–</td><td>2,412</td><td>(2,818)</td></tr><tr><td>Gain on dereigstration of subsidiaries</td><td>(99)</td><td>–</td><td>4,671</td><td>–</td><td>–</td><td>–</td><td>(1)</td><td>–</td><td>4,571</td><td>–</td></tr><tr><td>Amortisation of intaniblge assets</td><td>–</td><td>(1,797)</td><td>(2,889)</td><td>(3,542)</td><td>–</td><td>–</td><td>–</td><td>–</td><td>(2,889)</td><td>(5,339)</td></tr></table> |
7480056_7.pdf | en | # 5. REVENUE
<table><tr><td rowspan="4"></td><td colspan="2">For the six months ended
31 December</td></tr><tr><td>2020</td><td>2019</td></tr><tr><td>HK$’000</td><td>HK$’000</td></tr><tr><td>(Unaudited)</td><td>(Unaudited)</td></tr><tr><td>Organisation and sponsorship of exhibitions, event lpanning
and related services</td><td>–</td><td>45,934</td></tr><tr><td>Contracting services and entertainment equipment solution</td><td>–</td><td>83,919</td></tr><tr><td>Brand management</td><td>5,035</td><td>10,493</td></tr><tr><td>Promotion and consulting services</td><td>49,070</td><td>161,959</td></tr><tr><td>Trading of goods</td><td>57,272</td><td>90,090</td></tr><tr><td>Financing income</td><td></td><td></td></tr><tr><td>— Credit factoring services</td><td>20,917</td><td>20,695</td></tr><tr><td>— Finance leasing services</td><td>4,597</td><td>12,101</td></tr><tr><td>— Money lending services</td><td>397</td><td>1,400</td></tr><tr><td>Total</td><td>137,288</td><td>426,591</td></tr><tr><td>Timing of revenue recognition</td><td></td><td></td></tr><tr><td>At point in time</td><td>89,706</td><td>381,902</td></tr><tr><td>Over time</td><td>21,671</td><td>10,493</td></tr><tr><td>Revenue from contracts with customers</td><td>111,377</td><td>392,395</td></tr><tr><td>Revenue from other sources</td><td>25,911</td><td>34,196</td></tr><tr><td>Total</td><td>137,288</td><td>426,591</td></tr></table>
# 6. OTHER INCOME
<table><tr><td rowspan="4"></td><td colspan="2">For the six months ended
31 December</td></tr><tr><td>2020</td><td>2019</td></tr><tr><td>HK$’000</td><td>HK$’000</td></tr><tr><td>(Unaudited)</td><td>(Unaudited)</td></tr><tr><td>Non-refundable trade deposits forfeited</td><td>–</td><td>4,026</td></tr><tr><td>Government grants</td><td>2,793</td><td>13,175</td></tr><tr><td>Interest income</td><td>104</td><td>272</td></tr><tr><td>Sundry income</td><td>970</td><td>308</td></tr><tr><td></td><td>3,867</td><td>17,781</td></tr></table> |
3460277_99.pdf | en | <table><tr><td> Exhibit
No.</td><td>Description</td></tr><tr><td>10.28</td><td>Steelcase Inc. Incentive Compensation Plan Form of Restricted Stock Units Agreement
(FY 2016) (33)</td></tr><tr><td>10.29</td><td> Steelcase Inc. Incentive Compensation Plan Form of Performance Units Agreement
(TSR) (FY 2017) (34)</td></tr><tr><td>10.30</td><td> Steelcase Inc. Incentive Compensation Plan Form of Cash-Based Award Agreement
(ROIC) (FY 2017) (35)</td></tr><tr><td>10.31</td><td>Steelcase Inc. Incentive Compensation Plan Form of Restricted Stock Units Agreement
(FY 2017) (36)</td></tr><tr><td>10.32</td><td> Steelcase Inc. Incentive Compensation Plan Form of Performance Units Agreement
(TSR) (FY 2018)</td></tr><tr><td>10.33</td><td> Steelcase Inc. Incentive Compensation Plan Form of Cash-Based Award Agreement
(ROIC) (FY 2018)</td></tr><tr><td>10.34</td><td>Steelcase Inc. Incentive Compensation Plan Form of Restricted Stock Units Agreement
(FY 2018)</td></tr><tr><td>10.35</td><td>Summary of Steelcase Benefit Plan for Outside Directors (37)</td></tr><tr><td>10.36</td><td>Summary of Compensation for the Board of Directors of Steelcase Inc., as updated April
14, 2016 (38)</td></tr><tr><td>21.1</td><td>Subsidiaries of the Registrant</td></tr><tr><td>23.1</td><td>Consent of Deloitte & Touche LLP</td></tr><tr><td>31.1</td><td>Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</td></tr><tr><td>31.2</td><td>Certification of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</td></tr><tr><td>32.1</td><td>Certification of CEO and CFO pursuant to 18 U.S.C. Section 1350, pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002</td></tr><tr><td>101.INS</td><td>XBRL Instance Document</td></tr><tr><td>101.SCH</td><td>XBRL Schema Document</td></tr><tr><td>101.CAL</td><td>XBRL Calculation Linkbase Document</td></tr><tr><td>101.LAB</td><td>XBRL Labels Linkbase Document</td></tr><tr><td>101.PRE</td><td>XBRL Presentation Linkbase Document</td></tr><tr><td>101.DEF</td><td>XBRL Definition Linkbase Document</td></tr></table>
(1) Filed as Exhibit 3.1 to the Company’s Form 8-K, as filed with the Commission on July 15, 2011 (commission file number 001-13873), and incorporated herein by reference.
(2) Filed as Exhibit No 3.2 to the Company's Form 10-K, as filed with the Commission on April 17, 2014 (commission file number 001-13873), and incorporated herein by reference.
(3) Filed as Exhibit No. 4.1 to the Company’s Form 8-K, as filed with the Commission on August 7, 2006 (commission file number 001-13873), and incorporated herein by reference.
(4) Filed as Exhibit No. 4.2 to the Company’s Form 8-K, as filed with the Commission on February 3, 2011 (commission file number 001-13873), and incorporated herein by reference.
(5) Filed as Exhibit No. 4.3 to the Company’s Form 8-K, as filed with the Commission on February 3, 2011 (commission file number 001-13873), and incorporated herein by reference.
(6) Filed as Exhibit No. 10.1 to the Company's Form 8-K, as filed with the Commission on September 28, 2016 (commission file number 001-13873), and incorporated herein by reference.
(7) Filed as Exhibit No. 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended November 28, 2008, as filed with the Commission on January 7, 2009 (commission file number 001-13873),and incorporated herein by reference.
(8) Filed as Exhibit No. 10.2 to the Company's Form 8-K, as filed with the Commission on January 16, 2015 (commission file number 001-13873), and incorporated herein by reference. |
3460277_100.pdf | en | <table><tr><td>(9)</td><td>Filed as Exhibit No. 10.2 to the C’ompanys Quarterly Report on Form 10-Q for the quarterly period ended
August 28, 2015, as filed with the Commission on September 29, 2015 (commission file number 001-13873),
and incorporated herein by reference.</td></tr><tr><td>(10)</td><td>Filed as Exhibit No. 10.3 to the C’ompanys Quarterly Report on Form 10-Q for the quarterly period ended
November 28, 2008, as filed with the Commission on January 7, 2009 (commission file number 001-13873),
and incorporated herein by reference.</td></tr><tr><td>(11)</td><td>Filed as Exhibit No. 10.4 to the C'ompanys Quarterly Report on Form 10-Q for the quarterly period ended
November 28, 2008, as filed with the Commission on January 7, 2009 (commission file number 001-13873),
and incorporated herein by reference.</td></tr><tr><td>(12)</td><td>Filed as Exhibit No. 10.1 to the C'ompanys Quarterly Report on Form 10-Q for the quarterly period ended
August 24, 2012, as filed with the Commission on October 1, 2012 (commission file number 001-13873), and
incorporated herein by reference.</td></tr><tr><td>(13)</td><td>Filed as Exhibit No. 10.1 to the C'ompanys Quarterly Report on Form 10-Q for the quarterly period ended
November 28, 2014, as filed with the Commission on December 23, 2014 (commission file number
001-13873), and incorporated herein by reference.</td></tr><tr><td>(14)</td><td>Filed as Exhibit No. 10.8 to the C’ompanys Annual Report on Form 10-K for the fiscal year ended
February 27, 1998, as filed with the Commission on May 28, 1998 (commission file number 001-13873), and
incorporated herein by reference.</td></tr><tr><td>(15)</td><td>Filed as Exhibit No. 10.2 to the C'ompanys Quarterly Report on Form 10-Q for the quarterly period ended
August 24, 2012, as filed with the Commission on October 1, 2012 (commission file number 001-13873), and
incorporated herein by reference.</td></tr><tr><td>(16)</td><td>Filed as Exhibit No. 10.1 to the C’ompanys Form 8-K, as filed with the Commission on February 9, 2007
(commission file number 001-13873), and incorporated herein by reference.</td></tr><tr><td>(17)</td><td>Filed as Exhibit No. 10.6 to the C’ompanys Quarterly Report on Form 10-Q for the quarterly period ended
August 29, 2008, as filed with the Commission on October 7, 2008 (commission file number 001-13873), and
incorporated herein by reference.</td></tr><tr><td>(18)</td><td>Filed as Exhibit No. 10.1 to the C'ompanys Quarterly Report on Form 10-Q for the quarterly period ended
August 28, 2009, as filed with the Commission on October 5, 2009 (commission file number 001-13873), and
incorporated herein by reference.</td></tr><tr><td>(19)</td><td>Filed as Exhibit No. 10.2 to the C'ompanys Quarterly Report on Form 10-Q for the quarterly period ended
November 27, 2009, as filed with the Commission on January 5, 2010 (commission file number 001-13873),
and incorporated herein by reference.</td></tr><tr><td>(20)</td><td>Filed as Exhibit No. 10.19 to the C’ompanys Annual Report on Form 10-K for the fiscal year ended
February 28, 2003, as filed with the Commission on May 16, 2003 (commission file number 001-13873), and
incorporated herein by reference.</td></tr><tr><td>(21)</td><td>Filed as Exhibit No. 10.33 to the C’ompanys Annual Report on Form 10-K for the fiscal year ended
February 25, 2005, as filed with the Commission on May 6, 2005 (commission file number 001-13873), and
incorporated herein by reference.</td></tr><tr><td>(22)</td><td>Filed as Exhibit No. 10.01 to the C’ompanys Quarterly Report on Form 10-Q for the quarterly period ended
May 27, 2005, as filed with the Commission on July 1, 2005 (commission file number 001-13873), and
incorporated herein by reference.</td></tr><tr><td>(23)</td><td>Filed as Exhibit No. 10.7 to the C’ompanys Quarterly Report on Form 10-Q for the quarterly period ended
August 29, 2008, as filed with the Commission on October 7, 2008 (commission file number 001-13873), and
incorporated herein by reference.</td></tr><tr><td>(24)</td><td>Filed as Exhibit No. 10.18 to the C’ompanys Annual Report on Form 10-K for the fiscal year ended
February 24, 2012, as filed with the Commission on April 23, 2012 (commission file number 001-13873), and
incorporated herein by reference.</td></tr><tr><td>(25)</td><td>Filed as Exhibit No. 10.1 to the C’ompanys Form 8-K, as filed with the Commission on January 16, 2015
(commission file number 001-13873), and incorporated herein by reference.</td></tr><tr><td>(26)</td><td>Filed as Exhibit No. 10.1 to the C’ompanys Form 8-K, as filed with the Commission on July 16, 2012
(commission file number 001-13873), and incorporated herein by reference.</td></tr></table> |
11783128_416.pdf | en | the industry appears to be poised on the brink of a series of lurches and halts in performance improvements through concurrent execution and tool imple-mentation changes during which code bases will need to be modernized to operate correctly and securely.
Unfortunately, developing concurrent systems remains difficult and error prone for the vast majority of programmers; we still lack a programming model that enables the widespread adoption of concurrency. With the pos-sible exception of lambdas in C++, the approaches to multithreading adopted by the C and C++ standards are largely the same approaches that developers have struggled with for years without success. The application development and programming language development communities are well aware of this issue and have proposed many solutions such as Cilk, Intel Threading Build-ing Blocks, OpenMP, QtConcurrent, and so forth. There is limited experience with these various approaches. To date, no cost-effective solution appears to solve the fundamental problem that programmers have difficulty reasoning about concurrency.
So what happens when the increased pressure to adopt concurrency encounters the inability of developers to program concurrently? Expressed lightly, hilarity ensues. Concurrency is likely to be the source of a large num-ber of vulnerabilities in the years to come as we struggle to discover which approaches will succeed and which will be left by the wayside. |
11783128_417.pdf | en | # 8
# File I/O
# with David Riley and David Svoboda1
But, when I came,—some minute ere the time Of her awakening,—here untimely lay The noble Paris and true Romeo, dead.
—William Shakespeare, Romeo and Juliet, act V, scene 3
C and C++ programs commonly read and write to files as part of their nor-mal operations. Numerous vulnerabilities have resulted from irregularities in how these programs interact with the file system—the operation of which is defined by the underlying operating system. Most commonly, these vulnerabil-ities result from file identification issues, poor privilege management, and race conditions. Each of these topics is discussed in this chapter.
# ■ 8.1 File I/O Basics
Performing file I/O securely can be a daunting task, partly because there is so much variability in interfaces, operating systems, and file systems. For exam-ple, both the C and POSIX standards define separate interfaces for performing
---
1. David Riley is a professor of computer science at the University of Wisconsin–LaCrosse. David Svoboda is a member of the technical staff for the SEI’s CERT. |
11794627_140.pdf | en | # 36. NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS (Continued)
# (c) Total cash outflow for leases
The total cash outflow for leases included in the statement of cash flows is as follows:
<table><tr><td rowspan="2"></td><td>2020</td><td>2019</td></tr><tr><td>RMB’000</td><td>RMB’000</td></tr><tr><td>Within financing activities</td><td>(3,558)</td><td>(7,333)</td></tr></table>
# 37. CONTINGENT LIABILITIES
At the end of the reporting period, contingent liabilities not provided for in the financial statements were as follows:
<table><tr><td rowspan="2"></td><td>2020</td><td>2019</td></tr><tr><td>RMB’000</td><td>RMB’000</td></tr><tr><td>Guarantees given to a bank in connection with loans
granted to an associate</td><td>15,100</td><td>33,500</td></tr><tr><td>Counter-guarantees given to a security company
in connection with loans granted to a subsidiary</td><td>6,000</td><td>3,000</td></tr><tr><td></td><td>21,100</td><td>36,500</td></tr></table>
As at 31 December 2020, the banking facilities guaranteed by the Group to Sinofn Tianjin were utilised to the extent of approximately RMB15,100,000 (2019: RMB33,500,000).
# 38. PLEDGE OF ASSETS
Details of the Group’s assets pledged for the Group’s bank and other loans are included in note 13 to the financial statements. |
11794627_141.pdf | en | # 39. COMMITMENTS
# (a) The Group had the following capital commitments at the end of the reporting period:
<table><tr><td rowspan="2"></td><td>2020</td><td>2019</td></tr><tr><td>RMB’000</td><td>RMB’000</td></tr><tr><td>Contracted, but not provided for:</td><td></td><td></td></tr><tr><td>Know-how, patents and license</td><td>1,900</td><td>1,400</td></tr></table>
On 9 December 2004, the Company and its substantial shareholder, IBP, entered into an exclusive technology licensing agreement (the “Licensing Agreement”) with regard to the production of diagnostic reagents by employing the technologies owned by IBP (the “Reagent Technologies”). Pursuant to the Licensing Agreement, the Company is required to pay a fee of RMB500,000 per annum to IBP for 20 years, commencing on the effective date of the Licensing Agreement. As at 31 December 2020, the technical service fees payable by the Group of RMB2,500,000 (31 December 2019: RMB2,000,000) were included in the amount due to a shareholder in note 28(c) to the financial statements.
In addition, the Group’s share of the joint ventures’ own capital commitments, which are not included in the above, is as follows:
<table><tr><td rowspan="2"></td><td>2020</td><td>2019</td></tr><tr><td>RMB’000</td><td>RMB’000</td></tr><tr><td>Contracted, but not provided for</td><td>20,084</td><td>5,100</td></tr></table>
(b) The Group has various lease contracts that have not yet commenced as at 31 December 2020. The future lease payments for these non-cancellable lease contracts are RMB3 million due within one year and RMB11 million due in the second to fifth years. |
7579253_25.pdf | en | # Contingent liabilities
At the end of the Reporting Period, the Group had no significant contingent liabilities.
# Commitments
At the end of the Reporting Period, there were no significant capital commitments for the Group.
# Charges on group assets
Assets with a carrying value of approximately HK\$37,174,000 were pledged as security for the Group’s banking facilities.
# Treasury policies
The Directors will continue to follow a prudent policy in managing the Group’s cash balances and maintain a strong and healthy liquidity to ensure that the Group is well placed to take advantage of growth opportunities for the business. Interest for the current bank borrowings were mainly on floating rate basis and the bank borrowings were principally denominated in Hong Kong dollar, hence, there is no significant exposure to foreign exchange rate fluctuations.
# Exchange risk exposure
The Group’s foreign exchange risk mainly arises from balances denominated in Renminbi, which relates to the Group’s foreign currency denominated monetary assets and liabilities for the Group’s operating activities.
The Group currently does not have a foreign currency hedging policy to eliminate the currency exposures. However, the management monitors the related foreign currency exposure closely and will consider hedging significant foreign currency exposures should the need arise.
# Capital structure of the Group
There is no change in capital structure of the Group during the year ended 31 March 2020. |
7579253_26.pdf | en | # PROSPECTS
# (i) Construction Business
The Group will uphold an on-going parallel development of its construction business (including building construction, interior fitting-out works and E&M works) in the PRC, Hong Kong and Macau. To cope with the difficulties encountered in the construction and engineering industry, the Group has adopted a prudent strategy in project tendering.
With its proven track records and adequate expertise in the main contracting business, the Group was included in Building Category Group C of the “List of Approved Contractors for Public Works”, and Turn-key Interior Design and Fitting-out Works Category Group II of the “List of Approved Suppliers of Materials and Specialist Contractors for Public Works” under Development Bureau of Hong Kong Special Administrative Region (the “HKSAR”); the Registered General Building Contractor, the Minor Works Class I Contractor, the Registered Specialist Contractor (Site Formation Works and Foundation Works Categories) under the Buildings Department.
In the E&M works, the Group was included in 11 categories of the “List of Approved Suppliers of Materials and Specialist Contractors for Public Works” under Development Bureau of the Government of the HKSAR; and the Registered Specialist Contractor (Ventilation) and Minor Works Class III Type E Contractor under Building Department.
The Group is able to take an active part in the construction business development. |
11238248_355.pdf | en | # Chapter 48
I connected with Bella through her machine. She hadn’t returned any of the messages I’d left since she took 28 FPS away from me, but I recorded a few lines about wanting to discuss something Ryan had told me the last time I saw him alive and she was on the line before midday.
We sat in her video suite, the obvious place. Bella had her hair tied back and was wearing a robe with nothing on underneath. As she shifted position in her chair the silky material slipped open to show her cunt. She didn’t bother to cover herself and I caught the scent of fish.
I played my cassette and explained how there should have been stitches on Karen’s belly. Bella spent more time watching me than the screen and the satisfied look on her face gave me a bad feeling that things weren’t going to go quite as well as I’d hoped. For an absurd moment the whole purpose of the meeting seemed to have been reversed; that rather than accusing her of murder, I was there to admit my guilt at being in possession of something dangerous to her. I did my best to fight it down, but I knew my voice sounded weak.
“Ryan had it figured the night you killed him, it took me a little longer. What did you think, we weren’t going to see it?”
“Oh, I thought you’d see it all right. But I was quite sure you’d be reluctant to recognize it.”
“Because of your money?”
“You and Ryan were very similar. You see money as life’s ultimate validation. It makes you easy to predict.”
“Powell didn’t kill Karen.” |
11238248_356.pdf | en | “No, he didn’t.”
“You made this tape. You knew he’d take a copy and that sooner or later we’d find it. And you knew how we’d read it.”
“I knew how you’d want to read it.”
“How long had you been planning it?”
“Killing Karen? I didn’t really plan it at all.”
“But the tape was made before you took her kidney out.”
“The tape was just one I had, it wasn’t part of any plan, at least not until later. I shot it in Powell’s apartment to hurt him, to rub salt in the wound, so to speak. That’s all. The planning only came after I realized what it could be used for. Erase my copy, make up a story about the bracelet.... Almost too easy.”
“Why did you kill her?”
“Do you care?”
I didn’t say anything. Bella shrugged, rewound the tape and started it playing again, this time in slow motion. She watched it as she spoke.
“Karen came back much sooner than I’d expected. We hadn’t planned to meet again until a couple of weeks after she’d recovered from her operation, but she had some trouble at home. The man she was living with threw her out and she had nowhere to go. I let her stay, of course. But knowing she was accessible, that she was a woman who had no real prohibitions against selling parts of herself, was a constant temptation. The door had already been opened, you see, and I wanted to go back. After a week I offered to buy her appendix and she agreed.”
“Only you didn’t stop with her appendix.”
“No. It’s a much simpler operation to perform, so I was working without Powell. I hadn’t planned to do anything other than what I’d paid for. But being there alone, with her laid out on the table so...available, it seemed cowardly to limit myself once I’d started. I took out almost everything she had.”
“But why?”
“I’ve told you before the operations are a test, even with outcasts they require an effort of will. With Karen, when I took her kidney, I moved to another level. She wasn’t anonymous. She was |
2538109_37.pdf | en | As part of an audit in accordance with HKSAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.
• Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
2538109_38.pdf | en | We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Audit Committee, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partner on the audit resulting in this independent auditor’s report is Chan Chi Yuen.
Ascenda Cachet CPA Limited
Certified Public Accountants
Chan Chi Yuen
Practising Certificate Number P02671
Hong Kong
30 June 2017 |
20734768_873.pdf | en | <table><tr><td rowspan="3"></td><td>Successor</td><td colspan="2">Predecessor</td></tr><tr><td>September 27-
October 27, 2013</td><td>April 29-
September 26, 2013</td><td>Six
Months Ended
October 28, 2012</td></tr><tr><td colspan="3">(in millions)</td></tr><tr><td>Service cost</td><td>$ 3.3</td><td> $ 22.6</td><td> $ 23.6</td></tr><tr><td>Interest cost</td><td>7.2</td><td>32.8</td><td>37.4</td></tr><tr><td>Expected return on lpan assets</td><td>(6.5)</td><td>(35.4)</td><td>(39.4)</td></tr><tr><td>Net amortization</td><td>—</td><td>24.8</td><td>26.4</td></tr><tr><td>Net periodic pension cost</td><td>$ 4.0</td><td> $ 44.8</td><td> $ 48.0</td></tr></table>
# NOTE 10: EQUITY
# Common Stock
As a result of the Merger, all outstanding common stock of the Company during the Predecessor period was acquired by Shuanghui and retired. See Note 2—Merger and Acquisition for further information on the Merger.
As a result of the Merger, all of the outstanding shares of Merger Sub were converted into 1,000 shares of common stock of the Company, no par value, and such shares are owned by a wholly owned subsidiary of Shuanghui. There are no other shares of stock outstanding in the Company.
# Stock Options and Performance Share Units
At October 27, 2013, the Company has no outstanding stock option awards or performance share units and no new equity plans have been approved by the Board of Directors. |
20734768_874.pdf | en | # Other Comprehensive Income (Loss)
The following tables present changes in the accumulated balances for each component of other comprehensive income (loss) and the related effects on net income of amounts reclassified out of other comprehensive income (loss).
<table><tr><td rowspan="4"></td><td colspan="3">Successor</td><td colspan="6">Predecessor</td></tr><tr><td colspan="3">September 27-
October 27, 2013</td><td colspan="3">July 29-
September 26,
2013</td><td colspan="3">Three Months
Ended October 28,
2012</td></tr><tr><td>Before
Tax</td><td> Tax</td><td>After
Tax</td><td>Before
Tax</td><td> Tax</td><td>After
Tax</td><td>Before
Tax</td><td colspan="2">After
Tax Tax</td></tr><tr><td colspan="9">(in millions)</td></tr><tr><td>Foreign currency translation:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Translation adjustment arising during
the period</td><td>$ 28.9</td><td> $ (1.0)</td><td>$ 27.9</td><td> $ 16.2</td><td> $ (3.6)</td><td>$ 12.6</td><td> $ 51.5</td><td> $ (2.0)</td><td>$ 49.5</td></tr><tr><td>Pension accounting:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Amortization of actuarial losses and
prior service credits reclassified to
cost of sales</td><td>—</td><td> —</td><td> —</td><td>3.1</td><td>(1.2)</td><td>1.9</td><td>(1.3)</td><td>0.5</td><td>(0.8)</td></tr><tr><td>Amortization of actuarial losses and
prior service credits reclassified to
SG&A</td><td>—</td><td> —</td><td> —</td><td>6.8</td><td>(2.7)</td><td>4.1</td><td>14.5</td><td>(5.7)</td><td>8.8</td></tr><tr><td>Hedge accounting:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Gains (losses) arising during the period</td><td>(6.9)</td><td>2.8</td><td>(4.1)</td><td>(16.5)</td><td>6.5</td><td>(10.0)</td><td>(4.2)</td><td>2.0</td><td>(2.2)</td></tr><tr><td>Gains reclassified to sales</td><td>(0.2)</td><td> —</td><td>(0.2)</td><td>3.2</td><td>(1.3)</td><td>1.9</td><td>(25.6)</td><td>10.0</td><td>(15.6)</td></tr><tr><td>Gains reclassified to cost of sales</td><td>0.1</td><td>(0.1)</td><td> —</td><td>1.4</td><td>(0.5)</td><td>0.9</td><td>(18.9)</td><td>7.4</td><td>(11.5)</td></tr><tr><td>Losses reclassified to SG&A</td><td>—</td><td> —</td><td> —</td><td>0.2</td><td> —</td><td>0.2</td><td>0.4</td><td> —</td><td>0.4</td></tr><tr><td>Total other comprehensive income
(loss)</td><td>$ 21.9</td><td> $ 1.7</td><td> $ 23.6</td><td> $ 14.4</td><td> $ (2.8)</td><td>$ 11.6</td><td> $ 16.4</td><td> $ 12.2</td><td> $ 28.6</td></tr></table> |
20734768_337.pdf | en | # Prepayments, deposits and other receivables
Prepayments, deposits and other receivables consist primarily of deposits paid to suppliers, value-added tax receivables, loans receivables and prepayments. Prepayments, deposits and other receivables amounted to US\$80 million, US\$75 million and US\$365 million as of December 31, 2011, 2012 and 2013, respectively. Prepayments, deposits and other receivables remained relatively stable as of December 31, 2011 and 2012. Prepayments, deposits and other receivables increased as of December 31, 2013 primarily as a result of the completion of our acquisition of Smithfield and consisted largely of loans receivables, deposits paid to suppliers and value-added tax receivables.
# Trade and bills payables
Trade and bills payables consist primarily of payables to suppliers. Trade and bills payables amounted to US\$300 million, US\$225 million and US\$851 million as of December 31, 2011, 2012 and 2013, respectively. Trade and bills payables decreased from US\$300 million as of December 31, 2011 to US\$225 million as of December 31, 2012 primarily due to our efforts in optimizing our supply chain management in 2012. These measures included reducing bulk orders to our suppliers, which increased the frequency of orders but shortened the settlement period of each order. Trade and bills payables increased from US\$225 million as of December 31, 2012 to US\$851 million as of December 31, 2013 primarily as a result of the completion of our acquisition of Smithfield.
The following table sets forth our average trade and bills payables, cost of sales and trade and bills payables turnover days as of the dates indicated.
<table><tr><td rowspan="3"></td><td colspan="3">As of December 31,</td></tr><tr><td>2011</td><td>2012</td><td>2013</td></tr><tr><td colspan="3">(US$ million)</td></tr><tr><td>(1)A verage trade and bills payables ..........</td><td>275.0</td><td>262.5</td><td>538.0</td></tr><tr><td>Cost of sales ...........................</td><td>4,865</td><td>5,244</td><td>9,457</td></tr><tr><td>(2)Trade and bill s payables days ............</td><td>20.6</td><td>18.3</td><td>20.8</td></tr></table>
Notes:
(1) Average of beginning and ending balances of total trade and bills payables in the period indicated.
(2) Calculated as the average balances of total trade and bills payables, divided by the total cost of sales in the year (before biological assets fair value adjustments), multiplied by 365. |
20734768_338.pdf | en | Trade and bills payables days decreased from 20.6 days in 2011 to 18.3 days in 2012 due primarily to our successful implementation of the aforementioned policies in optimizing our supply chain management in 2012. Trade and bills payable days increased from 18.3 days in 2012 to 20.8 days in 2013 primarily as a result of the impact from our acquisition of Smithfield. Trade and bills payable days in our operations in China was 13.8 days as of December 31, 2013.
The following table sets forth an aging analysis of our trade and bills payables for the periods indicated.
<table><tr><td rowspan="4"></td><td colspan="3">As of December 31,</td></tr><tr><td>2011</td><td>2012</td><td>2013</td></tr><tr><td colspan="3">(US$ million)</td></tr><tr><td>(audited)</td><td> (audited)</td><td> (audited)</td></tr><tr><td>0 to 30 days. . . . . . . . . . . . . . . . . . . . . . . . . . . .</td><td>274</td><td>188</td><td>756</td></tr><tr><td>31 to 90 days. . . . . . . . . . . . . . . . . . . . . . . . . . .</td><td> —</td><td>28</td><td>87</td></tr><tr><td>91 to 180 days..........................</td><td> —</td><td>9</td><td>8</td></tr><tr><td>181 days to 1 year . . . . . . . . . . . . . . . . . . . . . . .</td><td>26</td><td> —</td><td> —</td></tr><tr><td>Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</td><td>300</td><td>225</td><td>851</td></tr></table>
The credit period on our purchases of goods in our China operations is approximately 30 days. In our U.S. and international operations, credit terms vary based on goods and vendor and payables are typically paid in approximately 15 days.
# Accrued expenses and other payables
Accrued expenses and other payables consist primarily of accrued staff costs such as salaries, deposits received from customers, payables in respect of acquisition of property, plant and equipment, insurance payables, sales rebates payables, dividends payable and interest payables. |
2896882_23.pdf | en | Meeting of the Remuneration Committee shall be held at least once a year. One meeting of the Remuneration Committee was held during the Year. The attendance records of each member of the Remuneration Committee at the said meeting are as follows:-
<table><tr><td>Name of the Directors</td><td>Attendance/
Number of
Remuneration
Committee meetings</td></tr><tr><td>Executive Director</td><td></td></tr><tr><td>Mr. Chu King Tien</td><td>1/1</td></tr><tr><td>Independent non-executive Directors</td><td></td></tr><tr><td>Mr. Hui Kwok Wah (Chairman)</td><td>1/1</td></tr><tr><td>Mr. Ma Sai Yam</td><td>1/1</td></tr></table>
During the Year, the Remuneration Committee has, among other things, reviewed the remuneration package of the Directors and senior management of the Group and recommendation was made to the Board in relation to their remuneration package.
# Nomination Committee
The Company has established a nomination committee (the “Nomination Committee”) on 15 May 2015 with written terms of reference in compliance with the Listing Rules. The Nomination Committee comprises one executive Director namely, Mr. Chu King Tien and two independent non-executive Directors, namely, Mr. Hui Kwok Wah and Mr. Ma Sai Yam, with Mr. Chu King Tien being appointed as the chairman of the Nomination Committee.
The roles and functions of the Nomination Committee include, among other things, reviewing the structure, size and composition of the Board at least once a year, making recommendations on any proposed changes to the Board to complement the Company’s corporate strategy, identifying individuals suitably qualified to become members of the Board and selecting, or making recommendations to the Board on the selection of individuals nominated for directorships, assessing the independence of the independent non-executive Directors and making recommendations to the Board on the appointment or re-appointment of the Directors and succession planning for Directors, in particular the chairman and the chief executive officer.
The Nomination Committee shall meet at least once a year. One meeting of the Nomination Committee was held during the Year. The attendance records of each member of the Nomination Committee at the said meeting are as follows:-
<table><tr><td>Name of the Directors</td><td>Attendance/
Number of
Nomination
Committee meetings</td></tr><tr><td>Executive Director</td><td></td></tr><tr><td>Mr. Chu King Tien (Chairman)</td><td>1/1</td></tr><tr><td>Independent non-executive Directors</td><td></td></tr><tr><td>Mr. Hui Kwok Wah</td><td>1/1</td></tr><tr><td>Mr. Ma Sai Yam</td><td>1/1</td></tr></table> |
2896882_24.pdf | en | During the Year, the Nomination Committee has, among other things, reviewed the structure, size, composition and diversity of the Board, considered the appointment or re-appointment of the Directors, reviewed the independent non-executive Directors’ annual confirmation on independence and assessed their independence. The Nomination Committee will continue to review the necessity of more competent staff to join in for the expansion of the Group.
Pursuant to the amended Mandatory Disclosure Requirement L.(d)(ii) in the Corporate Governance Report as contained in Appendix 14 of the Listing Rules the Company should disclose its policy for nomination of directors in the summary of work performed by the Nomination Committee in its corporate governance report.
# Nomination Criteria
In evaluating and selecting any candidate for the directorship, the following criteria should be considered:
• character and integrity;
• qualifications including professional qualifications, skills, knowledge and experience, and diversity aspects under the Board Diversity Policy that are relevant to the Company’s business and corporate strategy;
• any measurable objectives adopted for achieving diversity on the Board;
• for independent non-executive Directors, whether the candidate would be considered independent with reference to the independence guidelines set out in the Listing Rules;
• any potential contributions the candidate can bring to the Board in terms of qualifications, skills, experience, independence and gender diversity;
• willingness and ability to devote adequate time to discharge duties as a member of the Board and/or Board committee(s) of the Company; and
• such other perspectives that are appropriate to the Company’s business and succession plan and where applicable may be adopted and/or amended by the Board and/or the Nomination Committee from time to time for nomination of directors and succession planning.
# Nomination Procedures
The Company has put in place the following Director nomination procedures:
# Appointment of New and Replacement Directors
(i) If the Board determines that an additional or replacement Director is required, it will deploy multiple channels for identifying suitable director candidates, including referral from Directors, shareholders, management, advisors of the Company and external executive search firms.
(ii) Upon compilation and interview of the list of potential candidates, the Nomination Committee will shortlist candidates for consideration by the Nomination Committee and/or the Board based on the selection criteria and such other factors that it considers appropriate. The Board has the final authority on determining suitable director candidate for appointment. |
20788755_211.pdf | en | # 46. FINANCIAL INSTRUMENTS (continued)
# b. Financial risk management objectives and policies (continued)
# Credit risk and impairment assessment (continued)
The Group invests in rated and unrated debt securities as well as investment grade debt securities. The management regularly reviews and monitors the portfolio of debt securities. Summary of the fair value and principal amount of debt securities at FVTPL are set out below.
# Debt securities at FVTPL
<table><tr><td rowspan="3"></td><td colspan="2">2021</td><td colspan="2">2020</td></tr><tr><td>Fair value</td><td>Principal
amount</td><td>Fair value</td><td>Principal
amount</td></tr><tr><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td></tr><tr><td>AA- to BBB-</td><td>166,806</td><td>163,726</td><td>422,637</td><td>455,245</td></tr><tr><td>BB+ to B</td><td>129,350</td><td>130,523</td><td>51,997</td><td>52,308</td></tr><tr><td>Unrated</td><td>89,139</td><td>87,291</td><td>242,602</td><td>242,602</td></tr><tr><td></td><td>385,295</td><td>381,540</td><td>717,236</td><td>750,155</td></tr></table> |
20788755_212.pdf | en | # 46. FINANCIAL INSTRUMENTS (continued)
# b. Financial risk management objectives and policies (continued)
# Credit risk and impairment assessment (continued)
# Trade debtors and contract assets arising from contracts with customers as well as lease receivables
In order to minimise the credit risk, the management of the Group has policies in place to ensure the sales of properties are made to purchasers with an appropriate financial strength and appropriate percentage of down payments. Monitoring procedures are in place to ensure that follow-up action is taken to recover overdue debts. In addition, the Group performs impairment assessment under ECL model on trade debtors including lease receivables individually or collectively based on the Group’s internet credit rating. Contract assets are assessed on an individual basis for impairment purpose.
# Loan receivables/amounts due from associates, joint ventures, a shareholder of a non-wholly owned subsidiary and an investee company/bank balances and deposits
The credit risk of loan receivables and amounts due from associates, joint ventures, a shareholder of non-wholly owned subsidiary and an investee company is managed through an internal process. The Group actively monitors the outstanding amounts owed by each debtor and uses past due information to assess whether credit risk has increased significantly since initial recognition. The directors of the Company consider that the probability of default is minimal after assessing the counter-parties financial background and underlying assets held by the related parties.
Loan receivables represent mortgage loans secured by the properties of the borrowers.
In determining the recoverability of loan receivables, the Group considers any change in the credit quality of the borrowers, the value of the underlying properties under mortgage, historical settlements of loan interests and other forward-looking information.
# Debt instruments at FVTOCI
The Group only invests in debt securities with credit rating of B or above issued by Moody’s or Standard & Poor’s. The directors of the Company focus on the investment diversification and their credit ratings changes. The directors of the Company assess ECL on the debt instruments at FVTOCI based on the default rates published by major international credit rating agencies that are applicable to the respective debts instruments credit grades. As a result of this assessment, the directors of the Company are of the opinion that the ECL on these debt instruments is insignificant.
Summary of the fair value and principal amount of debt securities at FVTOCI are set out below.
<table><tr><td rowspan="3"></td><td colspan="2">2021</td><td colspan="2">2020</td></tr><tr><td>Fair value</td><td>Principal
amount</td><td>Fair value</td><td>Principal
amount</td></tr><tr><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td></tr><tr><td>AA- to BBB-</td><td>435,537</td><td>425,445</td><td>787,918</td><td>813,302</td></tr><tr><td>BB+ to B</td><td>1,259,538</td><td>1,274,442</td><td>647,113</td><td>906,070</td></tr><tr><td>Unrated</td><td>333,769</td><td>354,277</td><td>146,189</td><td>146,189</td></tr><tr><td></td><td>2,028,844</td><td>2,054,164</td><td>1,581,220</td><td>1,865,561</td></tr></table>
The credit risks on pledged deposits, restricted bank deposits, deposit in a financial institution, bank balances and deposits are limited because the counterparties are banks/financial institutions with high credit ratings assigned by international credit-rating agencies. |
20744259_59.pdf | en | # Key Corporate Bank summary of operations
As shown in Figure 13, Key Corporate Bank recorded net income attributable to Key of \$814 million for 2017, compared to\$628 million for 2016 and \$544 million for 2015. The 2017 increase was driven by an increase in revenue and lower provision for credit losses, but slightly offset by higher noninterest expense.
TE net interest income increased in 2017 compared to 2016. This increase is primarily due to growth in both loan and deposit balances. The balance increases are due to a full year impact of the First Niagara acquisition as well as growth in core businesses.
Noninterest income increased from 2016. The majority of the increase is related to growth in investment banking and debt placement fees, with growth in financial advisory, debt capital markets, and mortgage banking fees from our core Key franchise as well as the fourth quarter acquisition of Cain Brothers. Operating lease income and other leasing gains increased due to higher originations. Cards and payments income increased due to higher volumes in purchase and prepaid card and merchant services. Slightly offsetting these increases is a decline in other noninterest income mostly driven by impairments and lower gains related to certain investments held by the Real Estate Capital line of business.
The provision for credit losses decreased from 2016, primarily due to lower net loan chargeoffs and lower provisioning related to improving credit quality in the overall portfolio.
Noninterest expense increased from 2016. Personnel expense increased due to higher salaries, incentive compensation, benefits, and stockbased compensation expense partially related to the acquisition of Cain Brothers as well as higher performancebased compensation. Nonpersonnel expense increased due to higher operating lease expense, cards and payments processing, and other various expenses related to the acquisition of Cain Brothers.
In 2016, Key Corporate Bank’s net income attributable to Key increased from the prior year. TE net interest income increased compared to 2015, due to higher balances related to the First Niagara acquisition and growth in core businesses. Noninterest income increased due to growth in investment banking and debt placement fees, other noninterest income, and cards and payments income. The provision for credit losses increased primarily due to increased net loan chargeoffs. Noninterest expense increased due to higher salaries, incentive compensation, benefits, and stockbased compensation expense largely related to the acquisition of First Niagara as well as higher performancebased compensation, higher operating lease expense, cards and payments processing, FDIC assessment, and other various expenses related to the acquisition of First Niagara.
# Figure 13. Key Corporate Bank
<table><tr><td>Year ended December 31,</td><td rowspan="2">2017</td><td rowspan="2">2016</td><td rowspan="2">2015</td><td colspan="2">Change 2017 vs. 2016</td></tr><tr><td>dollars in millions</td><td>Amount</td><td>Percent</td></tr><tr><td>SUMMARY OF OPERATIONS</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net interest income (TE)</td><td>$ 1,190</td><td>$ 1,049</td><td>$ 886</td><td>$ 141</td><td>13.4 %</td></tr><tr><td>Noninterest income</td><td>1,147</td><td>1,013</td><td>926</td><td>134</td><td>13.2</td></tr><tr><td>Total revenue (TE)</td><td>2,337</td><td>2,062</td><td>1,812</td><td>275</td><td>13.3</td></tr><tr><td>Provision for credit losses</td><td>20</td><td>127</td><td>83</td><td>(107)</td><td>(84.3)</td></tr><tr><td>Noninterest expense</td><td>1,257</td><td>1,131</td><td>988</td><td>126</td><td>11.1</td></tr><tr><td>Income (loss) before income taxes (TE)</td><td>1,060</td><td>804</td><td>741</td><td>256</td><td>31.8</td></tr><tr><td>Allocated income taxes and TE adjustments</td><td>246</td><td>178</td><td>196</td><td>68</td><td>38.2</td></tr><tr><td>Net income (loss)</td><td>814</td><td>626</td><td>545</td><td>188</td><td>30.0</td></tr><tr><td>Less: Net income (loss) attributable to noncontrolling interests</td><td>—</td><td>(2)</td><td>1</td><td>2</td><td>(100.0)</td></tr><tr><td>Net income (loss) attributable to Key</td><td>$ 814</td><td>$ 628</td><td>$ 544</td><td>$ 186</td><td>29.6 %</td></tr><tr><td>AVERAGE BALANCES</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Loans and leases</td><td>$ 37,732</td><td>$ 31,929</td><td>$ 25,865</td><td>$ 5,803</td><td>18.2 %</td></tr><tr><td>Loans held for sale</td><td>1,242</td><td>934</td><td>937</td><td>308</td><td>33.0</td></tr><tr><td>Total assets</td><td>44,521</td><td>37,801</td><td>31,541</td><td>6,720</td><td>17.8</td></tr><tr><td>Deposits</td><td>21,318</td><td>20,783</td><td>19,043</td><td>535</td><td>2.6</td></tr></table> |
20744259_60.pdf | en | # ADDITIONAL KEY CORPORATE BANK DATA
<table><tr><td>Year ended December 31,</td><td colspan="2"></td><td></td><td colspan="2">Change 2017 vs. 2016</td></tr><tr><td>dollars in millions</td><td>2017</td><td>2016</td><td>2015</td><td>Amount</td><td>Percent</td></tr><tr><td>NONINTEREST INCOME</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Trust and investment services income</td><td>$ 138</td><td>$ 143</td><td>$ 137</td><td>$ (5)</td><td>(3.5)%</td></tr><tr><td>Investment banking and debt placement fees</td><td>589</td><td>471</td><td>439</td><td>118</td><td>25.1</td></tr><tr><td>Operating lease income and other leasing gains</td><td>80</td><td>56</td><td>62</td><td>24</td><td>42.9</td></tr><tr><td>Corporate services income</td><td>156</td><td>157</td><td>155</td><td>(1)</td><td>(.6)</td></tr><tr><td>Service charges on deposit accounts</td><td>50</td><td>50</td><td>43</td><td>—</td><td>—</td></tr><tr><td>Cards and payments income</td><td>40</td><td>29</td><td>15</td><td>11</td><td>37.9</td></tr><tr><td>Payments and services income</td><td>246</td><td>236</td><td>213</td><td>10</td><td>4.2</td></tr><tr><td>Mortgage servicing fees</td><td>61</td><td>53</td><td>48</td><td>8</td><td>15.1</td></tr><tr><td>Other noninterest income</td><td>33</td><td>54</td><td>27</td><td>(21)</td><td>(38.9)</td></tr><tr><td>Total noninterest income</td><td>$ 1,147</td><td>$ 1,013</td><td>$ 926</td><td>$ 134</td><td>13.2 %</td></tr></table>
# Other Segments
Other Segments consist of Corporate Treasury, our Principal Investing unit, and various exit portfolios. Other Segments generated net income attributable to Key of \$125 million for 2017, compared to \$89 million for 2016, and \$125 million for 2015. |
11790457_304.pdf | en | # Revenue from major products
The following is an analysis of the Group’s revenue from its major products:
<table><tr><td rowspan="4"></td><td colspan="3">Year ended 31 December</td><td colspan="2">Six months ended
30 June</td></tr><tr><td>2007</td><td>2008</td><td>2009</td><td>2009</td><td>2010</td></tr><tr><td>US$’000</td><td> US$’000</td><td> US$’000</td><td> US$’000</td><td>US$’000</td></tr><tr><td></td><td></td><td></td><td>(unaudited)</td><td></td></tr><tr><td>Deanxit ....................</td><td>26,144</td><td>36,710</td><td>44,468</td><td>22,768</td><td>26,029</td></tr><tr><td>Ursofalk ....................</td><td>14,756</td><td>21,074</td><td>28,327</td><td>13,393</td><td>16,937</td></tr><tr><td>Augentrofpen Stulln Mono edye-rops . .</td><td>3,011</td><td>4,394</td><td>6,146</td><td>2,817</td><td>3,814</td></tr><tr><td>GanFuLe....................</td><td>2,599</td><td>3,910</td><td>4,780</td><td>2,243</td><td>2,004</td></tr><tr><td>XinHuoSu ...................</td><td> —</td><td>2,839</td><td>7,253</td><td>2,983</td><td>5,697</td></tr><tr><td>Salofalk . . . . . . . . . . . . . . . . . . . .</td><td> —</td><td>133</td><td>1,824</td><td>658</td><td>1,684</td></tr><tr><td>Cystistat . . . . . . . . . . . . . . . . . . . .</td><td> —</td><td>66</td><td>515</td><td>171</td><td>319</td></tr><tr><td>Exacin ....................</td><td>—</td><td>—</td><td>—</td><td>—</td><td>3,367</td></tr><tr><td>Bioflor ....................</td><td>—</td><td> —</td><td> —</td><td> —</td><td>282</td></tr><tr><td>Others .....................</td><td>5,237</td><td>3,474</td><td>3,141</td><td>1,742</td><td>1,062</td></tr><tr><td>Total ......................</td><td>51,747</td><td>72,600</td><td>96,454</td><td>46,775</td><td>61,195</td></tr></table>
# 6. OTHER GAINS AND LOSSES
<table><tr><td rowspan="4"></td><td colspan="3">Year ended 31 December</td><td colspan="2"> Six months ended 30 June</td></tr><tr><td>2007</td><td>2008</td><td>2009</td><td>2009</td><td>2010</td></tr><tr><td>US$’000</td><td> US$’000</td><td> US$’000</td><td> US$’000</td><td>US$’000</td></tr><tr><td></td><td></td><td></td><td>(unaudited)</td><td></td></tr><tr><td>Service fee income . . . . . . . . . . . . . .</td><td> —</td><td>771</td><td> —</td><td> —</td><td> —</td></tr><tr><td>Net exchange gain (loss) . . . . . . . . . .</td><td>655</td><td>743</td><td>(405)</td><td>(272)</td><td>(109)</td></tr><tr><td>Government subsidies (Note) . . . . . . .</td><td>1</td><td>623</td><td>801</td><td>161</td><td>240</td></tr><tr><td>Interest income . . . . . . . . . . . . . . . .</td><td>236</td><td>221</td><td>329</td><td>94</td><td>302</td></tr><tr><td>Gain on disposal of a subsidiary . . . . .</td><td> —</td><td> —</td><td>24</td><td> —</td><td> —</td></tr><tr><td>Loss on disposal of an associate
(Note 18) . . . . . . . . . . . . . . . . .</td><td> —</td><td> —</td><td>(70)</td><td> —</td><td> —</td></tr><tr><td>Fair value change on investments held
for trading . . . . . . . . . . . . . . . . .</td><td>288</td><td>158</td><td>81</td><td>14</td><td>81</td></tr><tr><td>Imputed interest income on
available-for-sale investment . . . . . .</td><td>30</td><td>20</td><td> —</td><td> —</td><td> —</td></tr><tr><td>(Loss) gain on disposal of property,
lpant and equipment. . . . . . . . . . .</td><td>(8)</td><td>2</td><td>7</td><td>(2)</td><td>6</td></tr><tr><td>Impairment loss recognised on property,
lant and equipment (Note 14p) ....</td><td> —</td><td> —</td><td>(805)</td><td> —</td><td> —</td></tr><tr><td>Discount on acquisition of an associate
(Note 18) . . . . . . . . . . . . . . . . .</td><td> —</td><td> —</td><td>647</td><td>647</td><td> —</td></tr><tr><td>Others . . . . . . . . . . . . . . . . . . . . .</td><td>78</td><td>152</td><td>53</td><td>49</td><td>26</td></tr><tr><td></td><td>1,280</td><td>2,690</td><td>662</td><td>691</td><td>546</td></tr></table>
Note: The amount represents the incentive subsidies provided by the PRC local authorities to the Group to encourage performance of the research and development. There are no specific conditions attached to the grants, the Group recognised the grants upon receipts. |
11790457_305.pdf | en | # 7. FINANCE COSTS
<table><tr><td rowspan="4"></td><td colspan="3">Year ended 31 December</td><td colspan="2"> Six months ended 30 June</td></tr><tr><td>2007</td><td>2008</td><td>2009</td><td>2009</td><td>2010</td></tr><tr><td>US$’000</td><td> US$’000</td><td> US$’000</td><td> US$’000</td><td>US$’000</td></tr><tr><td></td><td></td><td></td><td>(unaudited)</td><td></td></tr><tr><td>Interest on bank loans wholly repayable
within five years . . . . . . . . . . . . .</td><td>301</td><td> —</td><td>43</td><td> —</td><td>187</td></tr><tr><td>Imputed interest on deferred
consideration payables . . . . . . . . .</td><td> —</td><td>226</td><td>347</td><td>191</td><td>149</td></tr><tr><td></td><td>301</td><td>226</td><td>390</td><td>191</td><td>336</td></tr></table>
# 8. DIRECTORS’ AND EMPLOYEES’ EMOLUMENTS
<table><tr><td rowspan="4"></td><td colspan="3">Year ended 31 December</td><td colspan="2"> Six months ended 30 June</td></tr><tr><td>2007</td><td>2008</td><td>2009</td><td>2009</td><td>2010</td></tr><tr><td>US$’000</td><td> US$’000</td><td> US$’000</td><td> US$’000</td><td>US$’000</td></tr><tr><td></td><td></td><td></td><td>(unaudited)</td><td></td></tr><tr><td>Directors’ fees . . . . . . . . . . . . . . . .</td><td>188</td><td>193</td><td>161</td><td>77</td><td>81</td></tr><tr><td>Other emoluments to non-executive
directors and independent
non-executive directors .........</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Other emoluments to executive
directors</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>- basic salaries and allowances . . . .</td><td>308</td><td>328</td><td>340</td><td>173</td><td>151</td></tr><tr><td>- retirement benefits scheme
contributions . . . . . . . . . . . . .</td><td>17</td><td>12</td><td>15</td><td>4</td><td>8</td></tr><tr><td></td><td>513</td><td>533</td><td>516</td><td>254</td><td>240</td></tr></table> |
2612214_8.pdf | en | # OVERALL RESULTS
In 2018, the Company maintained a healthy growth in revenue from continuing operations and the revenue from the software business maintained a stable growth, which amounted to approximately RMB5,192.0 million, representing an increase of 7.6% as compared with last year, which was the greatest increase in the last three years. In particular, the data-driven operation services achieved a rapid growth, almost doubling that of last year.
The adjusted net profit for 2018 amounted to approximately RMB602.2 million, representing a significant increase of 29.9% as compared with last year, and the adjusted net profit margin was 11.6%, achieving a good profitability level. The use of adjusted net profit from continuing operations is to easily compare the operating performance of the Company between periods. In view of this, we have eliminated the impacts of certain non-recurring, non-cash or non-operating items. Such impacts include share-based compensation, amortization of intangible assets arising from acquisition, interest expenses from the Privatization Syndicated Loan1, exchange gain and loss, and the listing expenses. The adjusted net profit and adjusted net profit margin referred to in this annual report were adjusted pursuant to the principles as set out above.
Net cash generated from operating activities amounted to approximately RMB583.3 million, representing an increase of 14.3% as compared with last year, and the cash generating ability continued to strengthen.
# BUSINESS REVIEW
# Further reinforcing our leading position in the telecom operators market to maintain positive growth
We served as the provider of China’s first-generation telecom software and services, and accumulated experience of more than 20 years in the telecom operators market. With leading research and development (“R&D”) capabilities, products and services within the industry, we have collaborated extensively with the three major telecom operators in the PRC, supporting over one billion subscribers nationwide. We maintained an absolute leading position in the industry.
In 2018, the Company continued to expand its input on business support, 5G intelligent network, data-driven operating services, big data and artificial intelligence (“AI”), developing over 500 types of software products for telecom operators. We actively participated in the centralized reform of telecom operators, supporting the R&D of various large-scale information technology (“IT”) projects. We took the initiative to grasp development opportunities provided by newly established specialized companies and participated in early business model design phase to provide a variety of software products and services. We actively explored the development opportunities of telecom operators in new business sectors such as IoT, data-driven operation, intelligent customer services and 5G intelligent network, and continuously develop the telecom operators market. As of December 31, 2018, the Company provided services to 214 telecom operator customers, representing an increase of 10.9% as compared with last year, and achieved a customer retention rate of over 99%.
REVENUE FROM THE SOFTWARE BUSINESS
ADJUSTED NET PROFIT
NET CASH GENERATED FROM OPERATING ACTIVITIES
Note 1: Refers to the loan borrowed in connection with the delisting of AsiaInfo Holdings, LLC (“AsiaInfo Holdings”) from National Association of Securities Dealers Automated Quotations (“NASDAQ”) Global Market of the United States, which was transferred to our Group in December 2015 and refinanced in 2018. |
2612214_9.pdf | en | # Actively deploying large enterprise customer market in non-telecom industries, and achieving breakthroughs in expansion of customers
With in-depth knowledge and understanding on the telecom operators market, precious skills and techniques in project management, and rich telecom grade software products, we are actively enhancing market shares in the non-telecom large enterprise customers market, providing support services to large enterprises on business transformation and data-driven operating services.
During the Reporting Period, the Company had put its focus on related industries such as postal, cable TV, banking, insurance, power grid and automobile and collaborated with large enterprises in the industry and made phenomenal progress, such as, the success in launching the CRM system for China Post online, obtaining the order of CRM system for China Life Property and Casualty Insurance Company Limited and PICC Life Insurance Company Limited, as well as entering the power grid industry to become the strategic partner of State Grid Limited (“State Grid”) and its subsidiaries. As of December 31, 2018, the Company provided services to 38 non-telecom large enterprise customers, representing an increase of 35.7% as compared with last year, and achieved a customer retention rate of over 99%.
# Rapid growth in data-driven operation business convening power for future growth
In light of the current wave of development in digitalization and informationization, customers from different sectors have pressing needs for digital transformation. The Company leveraged its strong data analyzing capability, professional modeling and IT capabilities, as well as in-depth understanding on operating environment and pain points of customers’ business, to help corporations analyze market development and customer trends by providing them with software as a service (“SaaS”) data-driven operation service tools through external data sources from multiple channels, achieving a win-win situation.
During the Reporting Period, the Company strived to cultivate the new business area of data-driven operating services. We provided major customers including operators, banking, insurance, automobile and public utility related industries with innovative data-driven operating services. And we actively expanded customer base and income sources with measures such as jointly establishing innovative laboratories on data-driven business with headquarters and subsidiaries of various telecom operators, establishing strategic partnership with China Merchants Bank, providing public utility operators with data-driven operating platform for population statistic management and safety control of dense crowd, etc. In 2018, data-driven operating services achieved a revenue of approximately RMB82.5 million with a nearly 100% increase, demonstrating our rapid business development and promising prospect.
# Actively deploying IoT applications in vertical industries
Facing industry changes and development opportunities in the smart connection generation, the Company has reinforced its efforts in exploring and developing IoT sector and has established an innovative “IoT platform + IoT business application + IoT operation” business model.
In terms of smart communities and the Internet of Vehicles, we have developed mature applications for industries, providing IoT services. We also started our in-depth collaboration with well-known enterprises in real estates, properties and automobile industries, such as Beijing North Star Group, Kang Qiao Service, Desay SV, BYD Company Limited and Changan Automobile. As of December 31, 2018, the smart community platform products covered over 3 million users, activating over 200 communities. The Internet of Vehicles served over 6 million members of Changan Automobile and over 0.3 million high-end users of BYD Company Limited. |
2906227_135.pdf | en | # 29. STATEMENT OF FINANCIAL POSITION AND RESERVE MOVEMENT OF THE COMPANY
# (a) Statement of financial position of the Company
<table><tr><td rowspan="2"></td><td rowspan="2"></td><td colspan="2">As at 31 December</td></tr><tr><td>2018</td><td>2017</td></tr><tr><td></td><td>Note</td><td>HK$’000</td><td>HK$’000</td></tr><tr><td>ASSETS</td><td></td><td></td><td></td></tr><tr><td>Non-current assets</td><td></td><td></td><td></td></tr><tr><td>Investments in subsidiaries</td><td></td><td>2</td><td>25,196</td></tr><tr><td>Total non-current assets</td><td></td><td>2</td><td>25,196</td></tr><tr><td>Current assets</td><td></td><td></td><td></td></tr><tr><td>Trade and other receivables</td><td></td><td>1,458</td><td>1,708</td></tr><tr><td>Amounts due from subsidiaries</td><td></td><td>17,769</td><td>211,387</td></tr><tr><td>Bank and cash balances</td><td></td><td>82</td><td>319</td></tr><tr><td>Total current assets</td><td></td><td>19,309</td><td>213,414</td></tr><tr><td>TOTAL ASSETS</td><td></td><td>19,311</td><td>238,610</td></tr><tr><td>EQUITY AND LIABILITIES</td><td></td><td></td><td></td></tr><tr><td>Share capital</td><td>28</td><td>174,490</td><td>161,152</td></tr><tr><td>Reserves</td><td>29(b)</td><td>(166,895)</td><td>70,117</td></tr><tr><td>Total equity</td><td></td><td>7,595</td><td>231,269</td></tr><tr><td>LIABILITIES</td><td></td><td></td><td></td></tr><tr><td>Current liabilities</td><td></td><td></td><td></td></tr><tr><td>Amounts due to subsidiaries</td><td></td><td>8,657</td><td>437</td></tr><tr><td>Other payables and accruals</td><td></td><td>3,059</td><td>6,904</td></tr><tr><td>Total current liabilities</td><td></td><td>11,716</td><td>7,341</td></tr><tr><td>TOTAL EQUITY AND LIABILITIES</td><td></td><td>19,311</td><td>238,610</td></tr></table>
Approved by the Board of Directors on 29 March 2019 and is signed on its behalf by:
<table><tr><td>Zheng Jinwei</td><td>He Qian</td></tr></table> |
2906227_136.pdf | en | # 29. STATEMENT OF FINANCIAL POSITION AND RESERVE MOVEMENT OF THE COMPANY (Continued)
# (b) Reserve movement of the Company
<table><tr><td></td><td>Share
premium</td><td>Share-based
payments
reserve</td><td>Convertible
bonds reserve</td><td>Contributed
surplus</td><td>Accumulated
losses</td><td>Total</td></tr><tr><td></td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td></tr><tr><td>At 1 January 2017</td><td>7,117,171</td><td>56,277</td><td>5,139</td><td>332,310</td><td>(7,395,273)</td><td>115,624</td></tr><tr><td>Loss for the year</td><td>—</td><td>—</td><td>—</td><td>—</td><td>(82,259)</td><td>(82,259)</td></tr><tr><td>Issue of shares by subscription
(note 28(b))</td><td>36,448</td><td>—</td><td>—</td><td>—</td><td>—</td><td>36,448</td></tr><tr><td>Redemption of convertible bonds</td><td>—</td><td>—</td><td>(5,139)</td><td>—</td><td>5,139</td><td>—</td></tr><tr><td>Share-based payments</td><td>—</td><td>304</td><td>—</td><td>—</td><td>—</td><td>304</td></tr><tr><td>Transfer of reserve upon lapse of
share options</td><td>—</td><td>(47,500)</td><td>—</td><td>—</td><td>47,500</td><td>—</td></tr><tr><td>At 31 December 2017</td><td>7,153,619</td><td>9,081</td><td>—</td><td>332,310</td><td>(7,424,893)</td><td>70,117</td></tr><tr><td>Adjustments on initial application of
— HKFRS 9</td><td>—</td><td>—</td><td>—</td><td>—</td><td>(203,603)</td><td>(203,603)</td></tr><tr><td>Restated balance at
1 January 2018</td><td>7,153,619</td><td>9,081</td><td>—</td><td>332,310</td><td>(7,628,496)</td><td>(133,486)</td></tr><tr><td>Loss for the year</td><td>—</td><td>—</td><td>—</td><td>—</td><td>(37,891)</td><td>(37,891)</td></tr><tr><td>Share-based payments</td><td>—</td><td>4,482</td><td>—</td><td>—</td><td>—</td><td>4,482</td></tr><tr><td>Issue of shares on share option
scheme</td><td>4,482</td><td>(4,482)</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Transfer of reserve upon lapse of
share options</td><td>—</td><td>(9,081)</td><td>—</td><td>—</td><td>9,081</td><td>—</td></tr><tr><td>At 31 December 2018</td><td>7,158,101</td><td>—</td><td>—</td><td>332,310</td><td>(7,657,306)</td><td>(166,895)</td></tr></table> |
3423620_48.pdf | en | # 1. Basis of Presentation
The Consolidated Financial Statements reflect the consolidated operations of TE Connectivity Ltd. and its subsidiaries and have been prepared in United States (‘‘U.S.’’) dollars in accordance with accounting principles generally accepted in the U.S. (‘‘GAAP’’).
# Description of the Business
TE Connectivity Ltd. (‘‘TE Connectivity’’ or the ‘‘Company,’’ which may be referred to as ‘‘we,’’ ‘‘us,’’ or ‘‘our’’) is a global technology and manufacturing leader creating a safer, sustainable, productive, and connected future. For more than 75 years, our connectivity and sensor solutions, proven in the harshest environments, have enabled advancements in transportation, industrial applications, medical technology, energy, data communications, and the home.
We operate through three reportable segments:
• Transportation Solutions. The Transportation Solutions segment is a leader in connectivity and sensor technologies. Our products, which must withstand harsh conditions, are used in the automotive, commercial transportation, and sensors markets.
• Industrial Solutions. The Industrial Solutions segment is a leading supplier of products that connect and distribute power, data, and signals. Our products are used in the industrial equipment; aerospace, defense, oil, and gas; and energy markets.
• Communications Solutions. The Communications Solutions segment is a leading supplier of electronic components for the data and devices and the appliances markets. We are also a leader in developing, manufacturing, installing, and maintaining some of the world’s most advanced subsea fiber optic communications systems.
# Use of Estimates
The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Significant estimates in these Consolidated Financial Statements include restructuring and other charges, assets acquired and liabilities assumed in acquisitions, allowances for doubtful accounts receivable, estimates of future cash flows and discount rates associated with asset impairments, useful lives for depreciation and amortization, loss contingencies, net realizable value of inventories, estimated contract revenue and related costs, legal contingencies, tax reserves and deferred tax asset valuation allowances, and the determination of discount and other rate assumptions for pension benefit cost. Actual results could differ materially from these estimates.
# Fiscal Year
We have a 52- or 53-week fiscal year that ends on the last Friday of September. For fiscal years in which there are 53 weeks, the fourth quarter reporting period includes 14 weeks. Fiscal 2017, 2016, and 2015 ended on September 29, 2017, September 30, 2016, and September 25, 2015, respectively. Fiscal 2017 and 2015 were 52 weeks in length. Fiscal 2016 was a 53-week year. |
3423620_49.pdf | en | # 2. Summary of Significant Accounting Policies
# Principles of Consolidation
We consolidate entities in which we own or control more than 50% of the voting shares or otherwise have the ability to control through similar rights. All intercompany transactions have been eliminated. The results of companies acquired or disposed of are included on the Consolidated Financial Statements from the effective date of acquisition or up to the date of disposal.
# Revenue Recognition
Our revenues are generated principally from the sale of our products. Revenue from the sale of products is recognized at the time title and the risks and rewards of ownership pass to the customer. This generally occurs when the products reach the shipping point, the sales price is fixed and determinable, and collection is reasonably assured.
Contract revenues for construction related projects, which are generated in the Communications Solutions segment, are recorded primarily using the percentage-of-completion method. Profits recognized on contracts in process are based upon estimated contract revenue and related cost to complete. Percentage-of-completion is measured based on the ratio of actual costs incurred to total estimated costs. Revisions in cost estimates as contracts progress have the effect of increasing or decreasing profits in the current period. Provisions for anticipated losses are made in the period in which they first become determinable. In addition, provisions for credit losses related to unbilled receivables on construction related projects are recorded as reductions of revenue in the period in which they first become determinable.
We generally warrant that our products will conform to our, or mutually agreed to, specifications and that our products will be free from material defects in materials and workmanship for a limited time. We limit our warranty to the replacement or repair of defective parts, or a refund or credit of the price of the defective product. We accept returned goods only when the customer makes a verified claim and we have authorized the return. Generally, a reserve for estimated returns is established at the time of sale based on historical return experience and is recorded as a reduction of sales.
Additionally, certain of our long-term contracts in the Communications Solutions segment have warranty obligations. Estimated warranty costs for each contract are determined based on the contract terms and technology-specific considerations. These costs are included in total estimated contract costs and are accrued over the construction period of the respective contracts under percentage-of-completion accounting.
We provide certain distributors with an inventory allowance for returns or scrap equal to a percentage of qualified purchases. A reserve for estimated returns and scrap allowances is established at the time of the sale based on an agreed-upon, fixed percentage of sales to distributors and is recorded as a reduction of sales.
Other allowances include customer quantity and price discrepancies. A reserve for other allowances is generally established at the time of sale based on historical experience and is recorded as a reduction of sales. We believe we can reasonably and reliably estimate the amounts of future allowances. |
9265117_1.pdf | en | # CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
for the six months ended 30 September 2020 — unaudited
(Expressed in Hong Kong dollars)
<table><tr><td rowspan="3"></td><td colspan="2">Six months ended
30 September</td></tr><tr><td>2020</td><td>2019</td></tr><tr><td>$’000</td><td>$’000</td></tr><tr><td>(Loss)/profit for the period</td><td>(7,029)</td><td>18,425</td></tr><tr><td>Other comprehensive income for the period</td><td></td><td></td></tr><tr><td>Item that may be reclassified subsequently to
profit or loss:</td><td></td><td></td></tr><tr><td>Exchange difference on translation of the financial
statements of subsidiaries (nil tax effect)</td><td>7,554</td><td>(13,908)</td></tr><tr><td>Total comprehensive income for the period</td><td>525</td><td>4,517</td></tr></table> |
9265117_2.pdf | en | # CONSOLIDATED STATEMENT OF FINANCIAL POSITION
at 30 September 2020 — unaudited
(Expressed in Hong Kong dollars)
<table><tr><td rowspan="2"></td><td rowspan="2">Note</td><td>At
30 September
2020</td><td>At
31 March
2020</td></tr><tr><td>$’000</td><td>$’000</td></tr><tr><td>Non-current assets</td><td></td><td></td><td></td></tr><tr><td>Property, lipant and equpment</td><td>9</td><td>8,342</td><td>17,824</td></tr><tr><td>Intanilgbe assets</td><td>10</td><td>48,662</td><td>50,261</td></tr><tr><td>Goodwill</td><td>10</td><td>55,389</td><td>60,432</td></tr><tr><td>Deferred tax assets</td><td></td><td>2,307</td><td>2,097</td></tr><tr><td></td><td></td><td>114,700</td><td>130,614</td></tr><tr><td>Current assets</td><td></td><td></td><td></td></tr><tr><td>Inventories</td><td></td><td>747</td><td>927</td></tr><tr><td>Trade and other receivables</td><td>11</td><td>100,726</td><td>92,332</td></tr><tr><td>Current tax recoverable</td><td></td><td>3,265</td><td>—</td></tr><tr><td>Restricted bank deposits</td><td></td><td>2,878</td><td>2,586</td></tr><tr><td>Cash at bank and in hand</td><td></td><td>190,689</td><td>206,735</td></tr><tr><td></td><td></td><td>298,305</td><td>302,580</td></tr><tr><td>Current liabilities</td><td></td><td></td><td></td></tr><tr><td>Trade and other payables</td><td>12</td><td>117,484</td><td>100,687</td></tr><tr><td>Contract liabilities</td><td></td><td>47,897</td><td>45,349</td></tr><tr><td>Amount due to the controlling shareholder</td><td></td><td>3,459</td><td>2,435</td></tr><tr><td>Lease liabilities</td><td></td><td>12,557</td><td>21,054</td></tr><tr><td>Current tax payable</td><td></td><td>6,393</td><td>8,239</td></tr><tr><td></td><td></td><td>187,790</td><td>177,764</td></tr><tr><td>Net current assets</td><td></td><td>110,515</td><td>124,816</td></tr><tr><td>Total assets less current liabilities</td><td></td><td>225,215</td><td>255,430</td></tr></table> |
2611447_101.pdf | en | # Noble Energy, Inc.
Consolidated Statements of Comprehensive Income (Loss)
(millions)
<table><tr><td rowspan="2"></td><td colspan="3">Year Ended December 31,</td></tr><tr><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Net Loss Including Noncontrolling Interests</td><td>$ (1,050)</td><td>$ (985)</td><td>$ (2,441)</td></tr><tr><td>Other Items of Comprehensive Loss</td><td></td><td></td><td></td></tr><tr><td>Net Change in Mutual Fund Investment</td><td>—</td><td>—</td><td>(11)</td></tr><tr><td>Less Tax Expense</td><td>—</td><td>—</td><td>4</td></tr><tr><td>Net Change in Pension and Other</td><td>3</td><td>3</td><td>99</td></tr><tr><td>Less Tax Benefit</td><td>(1)</td><td>(1)</td><td>(35)</td></tr><tr><td>Other Comprehensive Income</td><td>2</td><td>2</td><td>57</td></tr><tr><td>Comprehensive Loss Including Noncontrolling Interests</td><td>$ (1,048)</td><td>$ (983)</td><td>$ (2,384)</td></tr><tr><td>Less: Comprehensive Income Attributable to Noncontrolling Interests</td><td>68</td><td>13</td><td>—</td></tr><tr><td>Comprehensive Loss Attributable to Noble Energy</td><td>$ (1,116)</td><td>$ (996)</td><td>$ (2,384)</td></tr></table>
The accompanying notes are an integral part of these financial statements. |
2611447_102.pdf | en | Noble Energy, Inc.
Consolidated Balance Sheets
(millions)
<table><tr><td></td><td>December 31,
2017</td><td>December 31,
2016</td></tr><tr><td>ASSETS</td><td></td><td></td></tr><tr><td>Current Assets</td><td></td><td></td></tr><tr><td>Cash and Cash Equivalents</td><td>$ 675</td><td>$ 1,180</td></tr><tr><td>Accounts Receivable, Net</td><td>748</td><td>615</td></tr><tr><td>Other Current Assets</td><td>780</td><td>160</td></tr><tr><td>Total Current Assets</td><td>2,203</td><td>1,955</td></tr><tr><td>Property, Plant and Equipment</td><td></td><td></td></tr><tr><td>Oil and Gas Properties (Successful Efforts Method of Accounting)</td><td>29,678</td><td>30,355</td></tr><tr><td>Property, Plant and Equipment, Other</td><td>879</td><td>909</td></tr><tr><td>Total Property, Plant and Equipment, Gross</td><td>30,557</td><td>31,264</td></tr><tr><td>Accumulated Delpreciation, DedApetion an mortization</td><td>(13,055)</td><td>(12,716)</td></tr><tr><td>Total Property, Plant and Equipment, Net</td><td>17,502</td><td>18,548</td></tr><tr><td>Goodwill</td><td>1,310</td><td>—</td></tr><tr><td>Other Noncurrent Assets</td><td>461</td><td>508</td></tr><tr><td>Total Assets</td><td>$ 21,476</td><td>$ 21,011</td></tr><tr><td>LIABILITIES AND SHAREHOLDERS’ EQUITY</td><td></td><td></td></tr><tr><td>Current Liabilities</td><td></td><td></td></tr><tr><td>Accounts Payable Trade</td><td>$ 1,161</td><td>$ 736</td></tr><tr><td>Other Current Liabilities</td><td>578</td><td>742</td></tr><tr><td>Total Current Liabilities</td><td>1,739</td><td>1,478</td></tr><tr><td>LongTerm Debt</td><td>6,746</td><td>7,011</td></tr><tr><td>Net Deferred Income Tax Liability</td><td>1,127</td><td>1,819</td></tr><tr><td>Other Noncurrent Liabilities</td><td>1,245</td><td>1,103</td></tr><tr><td>Total Liabilities</td><td>10,857</td><td>11,411</td></tr><tr><td>Shareholders’ Equity</td><td></td><td></td></tr><tr><td>Preferred Stock Par Value $1.00 per share; 4 Million Shares Authorized, None Issued</td><td>—</td><td>—</td></tr><tr><td>Common Stock Par Value $0.01; 1 Billion Shares Authorized; 529 Million and 471 Million
Shares Issued, Respectively</td><td>5</td><td>5</td></tr><tr><td>Additional Paid in Cailpta</td><td>8,438</td><td>6,450</td></tr><tr><td>Accumulated Other Comprehensive Loss</td><td>(30)</td><td>(31)</td></tr><tr><td>Treasury Stock, at Cost; 39 Million and 38 Million Shares, Respectively</td><td>(725)</td><td>(692)</td></tr><tr><td>Retained Earnings</td><td>2,248</td><td>3,556</td></tr><tr><td>Noble Energy Share of Equity</td><td>9,936</td><td>9,288</td></tr><tr><td>Noncontrolling Interests</td><td>683</td><td>312</td></tr><tr><td>Total Equity</td><td>10,619</td><td>9,600</td></tr><tr><td>Total Liabilities and Equity</td><td>$ 21,476</td><td>$ 21,011</td></tr></table>
The accompanying notes are an integral part of these financial statements. |
11764847_147.pdf | en | # Statements of Changes in Equity
Year ended 31 December 2016
<table><tr><td rowspan="2">Company</td><td>Share
capital</td><td>Merger/
capital
reserve</td><td>Share-based
payments
reserve</td><td>Hedging
reserve</td><td>Retained
profits</td><td>Total
reserves</td><td>Total
equity</td></tr><tr><td>$m</td><td>$m</td><td>$m</td><td>$m</td><td>$m</td><td>$m</td><td>$m</td></tr><tr><td>At 1 January 2015</td><td>282.6</td><td>276.5</td><td>13.4</td><td>(1.4)</td><td>823.2</td><td>1,111.7</td><td>1,394.3</td></tr><tr><td>Total comprehensive income for the year</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Profit for the year</td><td>–</td><td>–</td><td>–</td><td>–</td><td>514.9</td><td>514.9</td><td>514.9</td></tr><tr><td>Other comprehensive income</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Effective portion of changes in fair value
of cash flow hedges, net of taxation</td><td>–</td><td>–</td><td>–</td><td>1.9</td><td>–</td><td>1.9</td><td>1.9</td></tr><tr><td>Total comprehensive income for the year</td><td>–</td><td>–</td><td>–</td><td>1.9</td><td>514.9</td><td>516.8</td><td>516.8</td></tr><tr><td>Transactions with equity holders of the Company,
recognised directly in equity</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Contributions by and distributions to equity holders
of the Company</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Issue of shares pursuant to share plans</td><td>10.9</td><td>–</td><td>(10.6)</td><td>–</td><td>–</td><td>(10.6)</td><td>0.3</td></tr><tr><td>Share-based payment expenses</td><td>–</td><td>–</td><td>9.5</td><td>–</td><td>–</td><td>9.5</td><td>9.5</td></tr><tr><td>Dividends paid (Note 29)</td><td>–</td><td>–</td><td>–</td><td>–</td><td>(345.9)</td><td>(345.9)</td><td>(345.9)</td></tr><tr><td>Total transactions with equity holders of the Company</td><td>10.9</td><td>–</td><td>(1.1)</td><td>–</td><td>(345.9)</td><td>(347.0)</td><td>(336.1)</td></tr><tr><td>At 31 December 2015</td><td>293.5</td><td>276.5</td><td>12.3</td><td>0.5</td><td>992.2</td><td>1,281.5</td><td>1,575.0</td></tr></table> |
11764847_148.pdf | en | Financials
<table><tr><td rowspan="2">Company</td><td>Share
capital</td><td>Treasury
shares</td><td>Merger/
capital
reserve</td><td>Share-based
payments
reserve</td><td>Fair value
reserve</td><td>Hedging
reserve</td><td>Retained
profits</td><td>Total
reserves</td><td>Total
equity</td></tr><tr><td>$m</td><td>$m</td><td>$m</td><td>$m</td><td>$m</td><td>$m</td><td>$m</td><td>$m</td><td>$m</td></tr><tr><td>At 1 January 2016</td><td>293.5</td><td>–</td><td>276.5</td><td>12.3</td><td>–</td><td>0.5</td><td>992.2</td><td>1,281.5</td><td>1,575.0</td></tr><tr><td>Total comprehensive income for the year
Profit for the year</td><td>–</td><td>–</td><td>–</td><td>–</td><td>–</td><td>–</td><td>497.1</td><td>497.1</td><td>497.1</td></tr><tr><td>Other comprehensive income</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net change in fair value of
available-for-sale financial assets</td><td>–</td><td>–</td><td>–</td><td>–</td><td>12.5</td><td>–</td><td>–</td><td>12.5</td><td>12.5</td></tr><tr><td>Effective portion of changes in fair value
of cash flow hedges, net of taxation</td><td>–</td><td>–</td><td>–</td><td>–</td><td>–</td><td>(0.5)</td><td>–</td><td>(0.5)</td><td>(0.5)</td></tr><tr><td>Total comprehensive income
for the year</td><td>–</td><td>–</td><td>–</td><td>–</td><td>12.5</td><td>(0.5)</td><td>497.1</td><td>509.1</td><td>509.1</td></tr><tr><td>Transactions with equity holders of the
Company, recognised directly
in equity</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Contributions by and distributions
to equity holders of the Company</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Treasury shares purchased by the Company</td><td>–</td><td>(12.3)</td><td>–</td><td>–</td><td>–</td><td>–</td><td>–</td><td>(12.3)</td><td>(12.3)</td></tr><tr><td>Issue of shares pursuant to share plans</td><td>6.2</td><td>–</td><td>–</td><td>(6.2)</td><td>–</td><td>–</td><td>–</td><td>(6.2)</td><td>–</td></tr><tr><td>Share-based payment expenses</td><td>–</td><td>–</td><td>–</td><td>7.2</td><td>–</td><td>–</td><td>–</td><td>7.2</td><td>7.2</td></tr><tr><td>Tax impact on transfer of treasury shares</td><td>–</td><td>–</td><td>–</td><td>0.8</td><td>–</td><td>–</td><td>–</td><td>0.8</td><td>0.8</td></tr><tr><td>Dividends paid (Note 29)</td><td>–</td><td>–</td><td>–</td><td>–</td><td>–</td><td>–</td><td>(346.2)</td><td>(346.2)</td><td>(346.2)</td></tr><tr><td>Total transactions with equity holders
of the Company</td><td>6.2</td><td>(12.3)</td><td>–</td><td>1.8</td><td>–</td><td>–</td><td>(346.2)</td><td>(356.7)</td><td>(350.5)</td></tr><tr><td>At 31 December 2016</td><td>299.7</td><td>(12.3)</td><td>276.5</td><td>14.1</td><td>12.5</td><td>–</td><td>1,143.1</td><td>1,433.9</td><td>1,733.6</td></tr></table> |
11759555_187.pdf | en | # 21 AVAILABLE-FOR-SALE INVESTMENTS
<table><tr><td rowspan="2"></td><td>2017</td><td>2016</td></tr><tr><td>HK$’000</td><td>HK$’000</td></tr><tr><td>Listed equity securities, at fair value</td><td>61,501</td><td>51,408</td></tr><tr><td>Unlisted equity securities, at fair value (note)</td><td>5,282,793</td><td>4,804,782</td></tr><tr><td></td><td>5,344,294</td><td>4,856,190</td></tr></table>
Note: In 2016, the Group acquired an indirect equity interest of approximately 24.4% in Shanghai Krupp Stainless Co. Ltd. (“SKS”), which owns a project site in Pudong New Area, Shanghai (the “Project”). As the Group does not have any significant influence over financial and operating policies to Shanghai Krupp, the Group recorded its investments as available-for-sale investments. The investment cost in SKS amounting to HK\$3,425 million as at 31 December 2017 was included in the balance of unlisted equity securities.
The Group’s investment was made based on a public notice issued and approved in May 2016 by the Municipal Government on city planning regarding the conversion of the land usage from industrial to commercial and residential use. However, in August 2017, the Municipal Government issued and approved another development plan of Pudong Expo Cultural Park of which the underlying Project held by SKS fell within the area of park development.
As of the date of this report, there is no verbal or written notice issued by the government to SKS regarding the development of the site area and the rationale of the change in the development plan of the area and its implication to the original development plan of the Project. As of the date of this report, SKS remains as the registered owner of the land with all the rights conferred as per the original land grant.
Based on the above-mentioned situation and after taking into consideration the legal advice from an independent legal counsel, together with the current status of the project site, management considered SKS maintains reasonable grounds to negotiate with the Municipal Government in respect of the latest development plan of the Project including but not limited to explore a mutually acceptable solution and/or to pursue a negotiation for its damages and loss of profits, if any. Management has then engaged independent valuers, Cushman & Wakefield Limited, who hold a recognised relevant professional qualification, to estimate the fair value of the Group’s available-for-sale investments as at 31 December 2017 based on the original development plan of the Project as set out in the public notice issued in May 2016.
Cushman & Wakefield Limited adopted an asset-based valuation approach on the investment, which is a means of estimating the value of a business using methods based on the market value of individual business assets less liabilities and judgement was required to determine the fair value. |
11759555_188.pdf | en | # 22 MORTGAGE LOANS RECEIVABLE
<table><tr><td rowspan="2"></td><td>2017</td><td>2016</td></tr><tr><td>HK$’000</td><td>HK$’000</td></tr><tr><td>Non-current mortgage loans receivable</td><td>3,641,905</td><td>1,001,386</td></tr><tr><td>Current portion of mortgage loans receivable</td><td>30,025</td><td>13,663</td></tr><tr><td>Total mortgage loans receivable</td><td>3,671,930</td><td>1,015,049</td></tr></table>
The balance included first mortgage loans of HK\$2,442,536,000 (2016: HK\$611,329,000) offered to buyers of certain properties developed by the Group in Hong Kong. For these first mortgage loans receivable, the fair value was calculated based on cash flows discounted using lending rates from financial institutions and assuming the loans will be repaid according to the contract terms. The valuation process of the Group is set out in note 3(c)(iv) to the consolidated financial statements.
The remaining amounts mostly represented the second mortgage loans receivable which are carried at amortised cost.
Mortgage loans receivable are denominated in Hong Kong dollars.
# 23 ACCOUNTS RECEIVABLE, PREPAYMENTS AND DEPOSITS
<table><tr><td rowspan="2"></td><td>2017</td><td>2016</td></tr><tr><td>HK$’000</td><td>HK$’000</td></tr><tr><td>Trade receivables (note (a))</td><td>4,332,017</td><td>347,788</td></tr><tr><td>Prepayments</td><td>223,230</td><td>928,753</td></tr><tr><td>Land bidding deposit (note (b))</td><td>–</td><td>168,652</td></tr><tr><td>Others</td><td>3,010,964</td><td>1,033,423</td></tr><tr><td></td><td>7,566,211</td><td>2,478,616</td></tr></table>
The carrying amounts of accounts receivable approximate their fair value.
The carrying amounts of the Group’s accounts receivable, prepayments and deposits are denominated in the following currencies:
<table><tr><td rowspan="2"></td><td>2017</td><td>2016</td></tr><tr><td>HK$’000</td><td>HK$’000</td></tr><tr><td>Hong Kong dollar</td><td>6,957,831</td><td>1,831,154</td></tr><tr><td>Renminbi</td><td>507,694</td><td>646,858</td></tr><tr><td>Other currencies</td><td>100,686</td><td>604</td></tr><tr><td></td><td>7,566,211</td><td>2,478,616</td></tr></table> |
11711012_249.pdf | en | The Dongguan Public Security Fire Bureau Zhangmutou Brigade\* (東莞市公安消防局樟木頭大隊) conducted an investigation into this incident and issued a report on 7 September 2017 (the “Report”). The Report stated that the fire was caused by short circuit in the storage area of finished products, which ignited sparks and caused fire to the inflammable products nearby. The estimated loss on finished goods was HK\$14.9 million, which was covered by our insurance policies. Based on our inventory system which enables us to track the movement and location of our inventory, we were able to estimate the value of the inventory stored in the relevant warehouse. We also conducted stock take on our other warehouse in Dongguan Factory, and compared the value of such inventory against our record on overall inventory, in order to ensure the accuracy of the estimated loss on finished goods. Except for an administrative penalty amounting to RMB30,000 imposed on Dongguan Zensee, no criminal liability and/or other administrative penalty was imposed on any member of our Group or any of its directors. After the incident, we enhanced our fire prevention equipment in our factory buildings, including but not limited to installing sprinklers, fire-proof doors, fire hydrant boxes, fire hydrants and smoke ventilation systems. In addition, we engaged a qualified fire safety system company, which is an Independent Third Party, to conduct site visit and review our facilities in order to identify areas of high risk of fire. We also installed a smoke detection system which allows remote monitoring of the relevant facilities.
Our PRC Legal Advisers are of the opinion that, according to the written confirmations provided by the relevant competent fire protection authorities of PRC and/or public online search on the relevant websites of PRC fire protection bureaus, during the Track Record Period, saved for the above disclosed, no administrative penalties have been found to be imposed on us for the violation of relevant fire protection laws and regulations.
Our Directors confirm that there were no incident that resulted in death or serious injury of our employees during the Track Record Period. Although we have maintained insurance policy relating to our production facilities and the safety of our employees working in our production plants, there is no assurance that our insurance policies will be adequate to cover all losses incurred in the event of an incident or other unexpected event in the future. In such event, if the coverage of our existing insurance policies is not adequate, our financial condition and results of operations may be materially adversely affected. For the associated risks, see “Risk Factors – Risks relating to our business – Our insurance coverage may not be adequate.”.
# INFORMATION TECHNOLOGY
We rely on our integrated IT systems to support the important aspects of our business. As at the Latest Practicable Date, we had two sets of information systems in place, namely MES and the MRP System, which were developed by ourselves.
Our MRP System and MES support the daily operations of our Group by gathering data related to order processing, engineering, procurement, material and production planning, production, quality control, delivery, inventories and finance. The systems also enable us to monitor the operational processes and order status real time, which allow transparency and facilitate management of our operation. |
11711012_250.pdf | en | Our MRP System regulates our supply chain and financial management, collects and combines data in relation to procurement of raw materials, production, product delivery and inventories. Our MES supports production and materials tracking which allows us to trace the use of raw materials in production and check the production status of each purchase order we receive. All of the operational information can be monitored in real time and updated through our MRP System and MES, which allow transparency and control of our production processes. These systems are managed by our information technology team, which comprised 49 staff as at the Latest Practicable Date.
Q P (SZ) is responsible for supporting our websites, including the development of our websites and online personalisation and design features, online ordering management and automatic imposition processes for digital printing. Linking up online ordering and manufacturing management, the websites feature online personalisation and ordering functions and enable automatic imposition processes for digital printing. The websites are integrated with our MRP System so that the online orders are processed with minimal human effort.
In 2019, Q P Printing was awarded the Certificate of Industry 4.0 Maturity Recognition for achieving a maturity level 1i Real Time Information Generation (equivalent to a Maturity Level 3 of the acatech Industry 4.0 Maturity Model) for its achievement in having real-time information in the digital production shop floor for playing card business including web to print operation, production processes including cutting, priming, digital printing, coating and kitting.
During the Track Record Period and up to the Latest Practicable Date, we had not experienced any material malfunction of our IT systems.
As part of our business strategies, we intend to leverage our technological capabilities and upgrade our IT infrastructure. For details, see “– Our business strategies – Leverage our technological capability to capture more business opportunities in Internet retailing and upgrade our IT infrastructure” and “Future Plans and Use of Proceeds”. |
11711012_268.pdf | en | Measure”), approximately 66.1% and 77.1% of our revenue derived from the U.S. by destination of delivery will be produced by our subcontractors in Vietnam. We also expect to incur additional costs for subcontracting further production to Vietnam of approximately HK\$4.4 million and HK\$5.1 million in the first year and second year, respectively, upon the implementation of Contingency Measure.
Based on the assumptions that our Group’s revenue derived from the U.S. by destination of delivery by FY2020 upon full implementation of Immediate Measures and in each of the first and second year upon activation of Contingency Measure would be the same as our revenue derived from the U.S. by destination of delivery in FY2018 (“U.S. FY2018 Revenue”), we expect to achieve revenue equal to the full amount of the U.S. FY2018 Revenue without being subject to the U.S. tariffs by the second year of fully implementing the Contingency Measure. The table below sets out the breakdown of the estimated percentage of the U.S. FY2018 Revenue to be achieved under each relevant Immediate Measure and/or Contingency Measure and remain to be subject to the U.S. tariffs upon implementation of such measures.
<table><tr><td rowspan="3"></td><td colspan="3">U.S. FY2018 Revenue to be achieved</td></tr><tr><td>By FY2020
upon full
imlipementaton
of Immediate
(NtMoe)easures</td><td>By first year
upon full
imlpementation
of Contingency
Measure</td><td>By second year
upon full
imlpementation
of Contingency
Measure</td></tr><tr><td>%</td><td>%</td><td>%</td></tr><tr><td>1. Immediate Measure 1A
and/or Contingency Measure
– enigagng and further
expanding the engagement of
subcontractors in Vietnam</td><td>55.9</td><td>66.1</td><td>77.1</td></tr><tr><td>2. Immediate Measure 1B –
enbgaigng sucontractor in
Hong Kong</td><td>15.3</td><td>15.3</td><td>15.3</td></tr><tr><td>3. Immediate Measure 2 –
alifppyng or
De Minimis value exemption
for web sales customers
based in the U.S.</td><td>7.5</td><td>7.5</td><td>7.5</td></tr><tr><td>4. Revenue generated from our
laboratory testing services
which are not subject to the
U.S. tariffs</td><td>0.1</td><td>0.1</td><td>0.1</td></tr><tr><td>5. Revenue remaining to be
subject to the U.S. tariffs</td><td>21.2</td><td>11.0</td><td> Nil</td></tr><tr><td>Total</td><td>100.0</td><td>100.0</td><td>100.0</td></tr></table>
---
Note: The table aims to show the estimated percentage of U.S. FY2018 Revenue to be achieved by FY2020. As such, the effect of Immediate Measures other than Immediate Measures 1A, 1B and 2 are not taken into account. |
11711012_269.pdf | en | We will further negotiate with our customers to further take up the increased U.S. tariffs payable by our customers during the two-year transition period on a case-by-case basis. The following sensitivity analysis illustrates, based on the U.S. FY2018 Revenue, the impact on our revenue and net profit for FY2020 upon full implementation of the Immediate Measures and for the first year and second year upon implementation of the Contingency Measure assuming the Section 301 List 4 Additional Tariff of 25% is imposed and our Group was to bear all such U.S. tariffs:
<table><tr><td rowspan="2"></td><td>FY2020
following
imlpementation
of Immediate
Measures</td><td>First year
following
imlipementaton
of Contingency
Measure</td><td>Second year
following
imlipementaton
of Contingency
Measure</td></tr><tr><td>HK$’000</td><td> HK$’000</td><td> HK$’000</td></tr><tr><td>Decrease in revenue</td><td>42,672</td><td>11,285</td><td>3,023</td></tr><tr><td>Decrease in net profit</td><td>35,999</td><td>9,523</td><td>2,551</td></tr></table>
In light of the Contingency Measure our Group have in place, our Directors believe that we will continue to be able to maintain our customer relationships and our business operation and financial performance will not be materially affected by the potential increase of the Section 301 List 4 Additional Tariff to 25% in the imminent future. Our Directors confirm that the implementation costs of the Contingency Measure would be funded by our internal resources and/or bank loan(s). Our Directors undertake that our Group will implement the Contingency Measure in parallel with the Immediate Measures as listed in the above if the Section 301 List 4 Additional Tariff is increased from 15% to 25% or above anytime in the future. In the event that the Contingency Measure has to be activated in the future, our Directors will continue to closely monitor the market and economic environment as well as our business and financial conditions to ensure any material adverse effect on our Group’s business and operations will be minimised as a whole. Our Directors also undertake to keep reviewing the relevant laws and regulations in relation to the U.S. tariffs and will seek legal advice as and when appropriate.
# Relocation of sales upon full implementation of Immediate Measures 1A, 1B and 2 and Contingency Measure to shift our production outside the PRC
We expect that by the end of FY2020, our Group will be able to fully implement Immediate Measures 1A, 1B and 2. The following tables set out the breakdown of revenue and sales volume attributable to our U.S. sales products by production channels in different geographical locations (i) during the Track Record Period; and (ii) upon full implementation of Immediate Measures 1A, 1B and 2 and Contingency Measures (in terms of our sales amount and sales volume attributable to our U.S. sales products by production channels in different geographical locations for FY2018): |
9278898_18.pdf | en | # EVENTS AFTER THE REPORTING PERIOD
# Back-to-back Guarantee Agreement
Reference were made to the announcements of the Company dated 30 July 2018, 29 July 2019, 24 July 2020 and 28 July 2021 in relation to the provisional of financial guarantee services. A Renewal Agreement to renew the Back-to-back Guarantee Agreement was entered by Wuhu Feishang Non-metal Material Co., Limited\*（蕪湖飛尚非金屬材料有限公司）, a wholly-owned subsidiary of the Company established in the PRC (the “Wuhu Subsidiary”), pursuant to which the Wuhu Subsidiary has agreed to provide financial guarantee to the Borrower by means of pledging its deposit in the sum of CNY20 million for procuring the Borrower to obtain the loan of CNY19 million provided by the lending bank. In return, the Wuhu Subsidiary shall receive a guarantee fee of 6% of the amount of deposit pledged by the Wuhu Subsidiary. The Board considers that the Group has surplus cash in CNY in excess of the working capital needs for its business operation in the PRC. The provision of Guarantee in favour of the Borrower will better utilize the Group’s surplus cash with reasonable return.
# Proposed (i) share consolidation; and (ii) rights issue
The Company proposed to implement (i) the share consolidation on the basis that every ten (10) issued and unissued existing shares into one (1) consolidated share (“Consolidated Share(s)”) and (ii) the rights issue on the basis of one (1) rights shares for every one (1) Consolidated Shares held on the record date at the subscription price of HK\$0.350 per rights share, to raise gross proceeds of approximately HK\$27.8 million before expenses (assuming no other change in the number of Shares in issue save for the share consolidation on or before the record Date) by issuing 79,557,200 rights shares. Details were set out in the Company’s announcements dated 16 July 2021 and 6 August 2021.
As save as above, there is no material event undertaken by the Company or the Group subsequent to 30 June 2021 and up to the date of this report. |
9278898_19.pdf | en | # OUTLOOK
The PRC has generally kept COVID-19 under control, and economic activities and confidence have rapidly recovered. The Chinese government has implemented strong fiscal and monetary stabilizing policies to further boost the PRC ‘s GDP growth by building a strong domestic market and supporting the domestic and international “dual circulation” strategy. Investment in fixed assets, real estate and infrastructure construction is expected to maintain solid growth, which will then support bentonite demand from downstream industries including the iron and steel and the energy sectors. Nevertheless, it would be difficult to gauge the longer term impact of such events as the situation is dynamically revolving. The Group has been proactive in closely monitoring the market conditions and taking appropriate measures to respond to the challenges. The Group will also continue to strengthen its cost control and resources management as well as to actively participate in project tenders, in order to maintain its competitiveness in the market.
Within the bentonite industry, uncertainties due to COVID-19 and international trade conflicts will cause market competition to further intensify and prices to fluctuate. Meanwhile, the new series of real estate market regulation and control policies and the PRC ‘s ambitious target to achieve carbon neutrality by 2060 are expected to adversely affect the iron and steel and the traditional energy industries in the long term, which will negatively impact the Group’s business by imposing pressures on demand for pelletising clay and drilling mud. The Group strives to maintain the sales volume of its bentonite products by improving product quality and adhering to the “selling more with lower margin” strategy, and yet the Group may not be able to maintain the current level of gross profit margin in the coming months. The Group intends to continue expanding its customer base and market share by boosting product awareness of its bentonite products, refining its production technology and developing new products with a view to enhance the Group’s overall competitiveness to cope with the risks and uncertainties of the business environment.
In view of the COVID-19 pandemic situation in Hong Kong, the Group expects that the business environment in financial services, including wealth management and money lending business, would be challenging in the year 2021. However, with the expectation of increasing awareness in wealth management in recent years, as well as the probable easing of travel restrictions between Hong Kong and the PRC, the Group remains cautiously optimistic in the medium and long-term development of this business segment in Hong Kong. Meanwhile, the Group will cautiously monitor market change and impose robust control measures to improve cost efficiency and risk management in order to provide a solid foundation for sustainable growth in the future. |
11783128_259.pdf | en | the preceding assignment should behave properly when compiled with any standard C compiler. If you declare d as some other integer type, such as
the assignment might provoke a warning from the compiler, or worse, silently truncate the assigned value at runtime, for example, if ptrdiff\_t were an alias for long long int for that implementation.
The lower and upper limits of ptrdiff\_t are defined by PTRDIFF\_MIN and PTRDIFF\_MAX respectively. The minimum acceptable limits defined by the C Standard are
These limits require that any 16-bit implementation must have at least a 17-bit ptrdiff\_t to represent all possible differences of 16-bit pointers.
Although the standard does not explicitly guarantee that sizeof(ptrdiff\_t) equals sizeof(size\_t), it typically is the case on 32-bit or 64-bit implementa-tions. This may seem somewhat surprising because a signed integer type may not be able to represent the difference between two pointers on such a system.
For example, on a system that supports objects up to \( 2 ^ { 3 2 } \mathrm { ~ - ~ } \) 1 bytes, the sizeof operator can yield values only from 0 to \( 2 ^ { 3 2 } - 1 \), so 32 bits are sufficient. However, pointer subtraction for pointers to elements of an array of \( 2 ^ { 3 2 } \mathrm { ~ - ~ } 1 \) bytes could yield values from −(232 − 1) to +(232 − 1). Consequently, ptrdiff\_t would have to be at least 33 bits to represent all possible differences. How-ever, C allows an implementation in which ptrdiff\_t is 32 bits by making it undefined behavior if the result of subtracting two pointers is not represent-able in an object of type ptrdiff\_t. In most cases, a ptrdiff\_t overflow on a two’s complement machine with quiet wraparound on overflow does not affect the result of the operation. To program securely, however, you should care-fully consider the consequences of your operation when the subtraction of two pointers may result in such large values.
intmax\_t and uintmax\_t. intmax\_t and uintmax\_t are integer types with the greatest width and can represent any value representable by any other inte-ger types of the same signedness. Among other applications, intmax\_t and uintmax\_t can be used for formatted I/O on programmer-defined integer types. For example, given an implementation that supports 128-bit unsigned integers and provides a uint\_fast128\_t type, a programmer may define the following type: |
11783128_260.pdf | en | This creates a problem with using these types with formatted output functions, such as printf(), and formatted input functions, such as scanf(). For example, the following code prints the value of x as an unsigned long long, even though the value is of a programmer-defined integer type:
There is no guarantee that this code prints the correct value of x because x may be too large to represent as an unsigned long long.
The intmax\_t and uintmax\_t types are capable of representing any value representable by any other integer types of the same signedness, allowing conversion between programmer-defined integer types (of the same signed-ness) and intmax\_t and uintmax\_t:
Formatted I/O functions can be used to input and output greatest-width integer typed values. The j length modifier in a format string indicates that the following d, i, o, u, x, X, or n conversion specifier will apply to an argument with type intmax\_t or uintmax\_t. The following code guarantees that the cor-rect value of x is printed, regardless of its length, provided that mytypedef\_t is an unsigned type:
In addition to programmer-defined types, there is no requirement that an implementation provide format length modifiers for implementation-defined integer types. For example, a machine with an implementation-defined 48-bit integer type may not provide format length modifiers for the type. Such a machine would still have to have a 64-bit long long, with intmax\_t being at least that large. The CERT C Secure Coding Standard [Seacord 2008], “INT15-C. Use intmax\_t or uintmax\_t for formatted IO on programmer-defined integer types,” provides further examples of this use of the intmax\_t and uintmax\_t types. |
8279661_10.pdf | en | We have established a talent pool management system. Through our new employee training program and mentoring program, we assign mentors to provide trainings to our new employees and help them understand their tasks and integrate into our corporate culture. We train up our employees to follow our standardised operational procedures to ensure our service quality and efficiency. We also have a human resource succession plan under which we identify and train up our employees to step into more challenging roles. During the Year, the Group has provided different types of training for its employees, such as the knowledge of property management, services requirement and market situation for the general employees and the knowledge of business communication, customer demands and risk management for the supervisory employees. In addition, we encourage and support employees to participate in external training by providing subsidies.
# OPERATING PRACTICES
Effective management of environmental, social and economic performance throughout the daily operation is considered as the core value of the Group. The Group displays commitment toward sustainable development by maintaining a close relationship with its suppliers and ensuring meticulous standards on its operation and business conduct.
# Supply Chain Management
The Group values the partnership with suppliers and aims to collectively promote sustainable development. The Group is devoted to enhancing operation throughout its supply chains by maximising operational efficiency and minimising ESG risks.
The Group has established the tender procurement management system for the effective management of the procurement process. For the selection of new contractors/suppliers, an evaluation and review mechanism is in place to ensure the compliance of suppliers and supplies quality. For example, we conduct reviews on new contractors/suppliers and verify their basic profile, credit certificates and other documents to ensure the compliance of the suppliers. In addition, the contracts signed between the Group and the contractors/suppliers clearly listed the expectations, policies and requirements of the Group. A safety management guideline is also included in the contract, which requires the contractors/suppliers to provide a safe working environment and sufficient training, information and supervision to their employees. Meanwhile, we regularly evaluate existing contractors/suppliers based on price, quality and other aspects. Unqualified contractors/suppliers will be opt-out to ensure the quality of products and services provided by the suppliers.
Environmental and social risks along the supply chain are also a key concern of the Group. The Group assigns specific personnel to check for the latest development in local supply chain-related policies and identify the potential environmental and social risks. When selecting suppliers, priority is given to those with more outstanding environmental and social performance regarding aspects such as energy conservation, occupational health and safety, supply chain management and anti-corruption. Suppliers having relevant certification or international recognition are usually more highly valued, but on the other hand, those involving in major corruption or safety incident are always downgraded. |
8279661_11.pdf | en | Besides, the Group fosters sustainability by implementing green procurement and encouraging the use of eco-friendly products. We use and give priority to eco-friendly products, such as those with water or energy efficiency labels, use fewer packaging materials, have a longer shelf life or are made of recyclable materials. We also select suppliers that are able to deliver materials with short delivery time and delivery distance, where appropriate, to lower carbon emissions from transportation. We also remind our employees to use products purchased earlier to avoid wastage due to products expiring.
During the Year, the Group had a total of 73 major suppliers, divided by region as follows:
<table><tr><td>Number of Suppliers</td><td>2021</td></tr><tr><td>Northeast China</td><td>7</td></tr><tr><td>Central China</td><td>2</td></tr><tr><td>South China</td><td>7</td></tr><tr><td>Southwest China</td><td>49</td></tr><tr><td>Northwest China</td><td>8</td></tr></table>
# Service Quality and Customer Health and Safety
The Group believes that quality control is crucial to the long-term development of the business. The Group achieves responsible operation through the maintenance of quality services and the assurance of the health and safety of the customers. Different policies and measures for controlling and improving service quality and customer health and safety have been adopted in the Group’s property management businesses. Due to the business nature of the Group, it is not involved in any matters related to advertising, product labeling and product recall.
The Group has established the customer relationship management system and acquired ISO 9001:2015 Quality Management System Certification, which provides a quality control guidance to its daily operation. The Group has a professional quality control team which primarily focuses on maintaining service standards, standardising service procedures and supervising service quality throughout the operational processes. To ensure service and consumer satisfaction, we conduct internal reviews on consumer satisfaction at all properties under our management on an annual basis. The quality check and consumer satisfaction results factor in the performance review of project companies and regional companies.
To provide better customer experience and enhance customer service, the Group offers a service hotline for its customers. Through the hotline, our customers can inquire about our services, provide us with their complaints and feedback, and we can follow up and respond in time to provide timely and efficient solutions to the problems of our clients. In addition, residents and property owners can request repair and maintenance services, provide their feedbacks, suggestions and complaints through our Shi Xiang Yue (時相悅) mobile application and the online official account the Group registered with WeChat. The Group has established the customer reporting and complaint management practice guideline and the call center management system, which specified the standards and processes on receiving and handling complaints. The Group records all the complaints received and the complaints received are classified based on their nature, specialization and importance. The relevant department would be informed about the complaints and is responsible for assigning and handling the complaint. During the Year, 15 complaints were received, which were all handled according to the abovementioned procedure. |
11696475_32.pdf | en | Economic and political pressures to increase tax revenues in various jurisdictions may make resolving tax disputes more difficult. For example, in recent years, the tax authorities in Europe have disagreed with our tax positions related to hybrid debt, research and development credits, transfer pricing and indirect taxes, among others. We regularly assess the likelihood of the outcome resulting from these examinations to determine the adequacy of our provision for income taxes. Although we believe our tax estimates are reasonable, the final determination of tax audits and any related litigation could be materially different from our historical income tax provisions and accruals.
The results from various tax examinations, audits and litigation may differ from the liabilities recorded in our financial statements and could materially and adversely affect our financial results and cash flows in the period or periods for which that determination is made.
# Changes in tax laws or rates, changes in the interpretation of tax laws or changes in the jurisdictional mix of our earnings could adversely affect our financial position and results of operations.
On December 22, 2017, the U.S. enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act made a number of substantial changes, including the imposition of a one-time mandatory deemed repatriation tax on the 2017 unrepatriated earnings accumulated offshore since 1986, the establishment of global minimum income tax and base erosion tax provisions related to offshore activities and affiliated party payments, and the reduction of the corporate tax rate from 35% to 21% for U.S. taxable income, resulting in a one-time remeasurement of deferred taxes to reflect their value at a lower tax rate of 21%. These changes to U.S. tax laws will significantly impact how U.S. multinational corporations are taxed on foreign earnings.
The U.S Treasury, Internal Revenue Service and other standard setting bodies are continuing to issue guidance and interpretation relating to the Tax Act. As future guidance is issued, we may make adjustments to amounts previously reported that could materially impact our financial statements.
Our global operations subject us to income and other taxes in the U.S. and in numerous foreign jurisdictions, each with different tax schemes and tax rates. In addition to the changes in tax laws and the interpretation of tax laws and tax rates in these jurisdictions, the jurisdictional mix of our earnings in countries with differing statutory tax rates can have a significant impact on our effective tax rate from period to period.
The tax effect of our investment in Sartorius AG and the jurisdictional mix of our earnings could continue to materially affect our financial results and cash flow.
In addition, the adoption of some or all of the recommendations set forth in the Organization for Economic Co-operation and Development’s project on “Base Erosion and Profit Shifting” (BEPS) by tax authorities in the countries in which we operate, could negatively impact our effective tax rate. These recommendations focus on payments from affiliates in high tax jurisdictions to affiliates in lower tax jurisdictions and the activities that give rise to a taxable presence in a particular country.
# Our reported financial results may be materially affected by changes in accounting principles generally accepted in the United States.
Generally accepted accounting principles in the United States, or U.S. GAAP, are subject to interpretation by the Financial Accounting Standards Board, or FASB, the U.S. Securities and Exchange Commission, or SEC, and various bodies formed to promulgate and interpret appropriate accounting principles. A change in these principles or interpretations could have a significant effect on our reported financial results, and could affect the reporting of transactions completed before the announcement of a change. |
11696475_33.pdf | en | For example, in January 2016, the FASB issued Accounting Standards Update No. (ASU) 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities." Amendments under ASU 2016-01, among other items, require that all equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting), such as our investment in Sartorius AG, will be measured at fair value through earnings. The impact of adoption of ASU 2016-01 in the first quarter of 2018 materially impacted our Consolidated Statement of Income due to our investment in Sartorius AG. In future periods, changes in the market value of our investment in Sartorius AG may continue to materially impact our Consolidated Statement of Income.
Also for example, in February 2016, the FASB issued ASU 2016-02, "Leases," which will require, among other items, lease accounting to recognize most leases as assets and liabilities on the balance sheet. We will adopt ASU 2016-02 on a modified retrospective basis effective January 1, 2019 with practical expedients. Where we act as a lessee, the adoption of the standard will result in material additions to the balance sheet for right-of-use assets and the associated liabilities. Where we act as a lessor in reagent rental arrangements, we estimate an insignificant impact to our consolidated financial statements.
# We may incur losses in future periods due to write-downs in the value of financial instruments.
We have positions in a variety of financial instruments including asset backed securities and other similar instruments. Financial markets are volatile and the markets for these securities can be illiquid. The value of these securities will continue to be impacted by external market factors including default rates, changes in the value of the underlying property, such as residential or commercial real estate, rating agency actions, the prices at which observable market transactions occur and the financial strength of various entities, such as financial guarantors who provide insurance for the securities. Should we need to convert these positions to cash, we may not be able to sell these instruments without significant losses due to current debtor financial conditions or other market considerations.
We also have positions in equity securities, including our investment in Sartorius AG. Financial markets are volatile and the markets for these equity securities can be illiquid as well. A decline in the market value of our investment in Sartorius AG or in the market value of the other equity securities that we own could result in significant losses due to write-downs in the value of the equity securities. In addition, if we need to convert these positions to cash, we may not be able to sell these equity securities without significant losses.
# Environmental, health and safety regulations and enforcement proceedings may negatively impact our business, results of operations and financial condition.
Our operations are subject to federal, state, local and foreign environmental laws and regulations that govern such activities as transportation of goods, emissions to air and discharges to water, as well as handling and disposal practices for solid, hazardous and medical wastes. In addition to environmental laws that regulate our operations, we are also subject to environmental laws and regulations that create liability and clean-up responsibility for spills, disposals or other releases of hazardous substances into the environment as a result of our operations or otherwise impacting real property that we own or operate. The environmental laws and regulations also subject us to claims by third parties for damages resulting from any spills, disposals or releases resulting from our operations or at any of our properties. We must also comply with various health and safety regulations in the United States and abroad in connection with our operations.
We may in the future incur capital and operating costs to comply with currently existing laws and regulations, and possible new statutory enactments, and these expenditures may be significant. We have incurred, and may in the future incur, fines related to environmental matters and/or liability for costs or damages related to spills or other releases of hazardous substances into the environment at sites where we have operated, or at off-site locations where we have sent hazardous substances for disposal. We cannot assure you, however, that such matters or any future obligations to comply with environmental or health and safety laws and regulations will not adversely affect our business, results of operations or financial condition. |
20740853_5.pdf | en | # Supplemental Materials
Proof of The Maximization of The Mutual Information, \( \operatorname { I } [ x ^ { t } ; y ^ { t } ] : \) In this section, we prove that the maximization of the mutual information,\( \operatorname { I } [ x ^ { t } ; y ^ { t } ] \), and Eq.(8) are equivalent to equality in Eq.(3), under suitable conditions. First, we note that we can replace \( \ensuremath { \dot { \nu } } ( x ^ { t } | x ^ { t + 1 } , y ^ { t } ) \) by \( \nu ( x ^ { t } | x ^ { t + 1 } , y ^ { t } , y ^ { t + 1 } ) \) in Eqs.(3), (4), (5), (6) and (7). In this case, equality in Eq.(3) follows from equality in the Jensen inequality \( ( \exp F ( Z ) = \operatorname { E } [ \exp F ( Z ) ] \) with probability 1):
\[ e ^ { - I _ { t r } ^ { t + 1 } - \widehat { \Theta } _ { \nu } ^ { t } } = \mathrm { E } [ e ^ { - I _ { t r } ^ { t + 1 } - \widehat { \Theta } _ { \nu } ^ { t } } ] = 1 . \eqno ( 1 4 ) \]
This implies −It+1 bttr −Θν = 0 with probability 1. By rearranging terms, we have
\[ \nu ( x ^ { t } | x ^ { t + 1 } , y ^ { t } , y ^ { t + 1 } ) = p _ { s } ( x ^ { t } | y ^ { t + 1 } , y ^ { t } , x ^ { t + 1 } ) . \eqno ( 1 5 ) \]
Hence, by including \( y ^ { t + 1 } \) as a conditioning variable of \( \nu \), we can easily obtain the equality. However, by reducing the number of conditioning variables, we can also obtain the maximization of the mutual information,\( \operatorname { I } [ x ^ { t } ; y ^ { t } ] \), as we noted in the main text. We prove this in the following.
First, we obtain an explicit expression of the optimal \( \nu ( x ^ { t } | x ^ { t + 1 } , y ^ { t } ) \) in Eq.(8) from the following inequality:
\[ \mathbb { E } \left[ \log \frac { \nu ( x ^ { t } | y ^ { t } , x ^ { t + 1 } ) } { p _ { s } ( x ^ { t } | y ^ { t } , x ^ { t + 1 } ) } \right] = \sum _ { u ^ { t } , x ^ { t + 1 } } p _ { s } ( y ^ { t } , x ^ { t + 1 } ) \sum _ { x ^ { t } } p _ { s } ( x ^ { t } | y ^ { t } , x ^ { t + 1 } ) \log \frac { \nu ( x ^ { t } | y ^ { t } , x ^ { t + 1 } ) } { p _ { s } ( x ^ { t } | y ^ { t } , x ^ { t + 1 } ) } \leq 0 . \qquad \qquad \qquad ( 1 6 ) \]
The above inequality is derived from the inequality \( F - 1 \geq \log F \) for positive real F, and thus, the optimality condition in Eq.(8) is obtained from the equality, \( F - 1 = \log F \leftrightarrow F = 1 \) with probability 1:
\[ \nu ( x ^ { t } | x ^ { t + 1 } , y ^ { t } ) = p _ { s } ( x ^ { t } | y ^ { t } , x ^ { t + 1 } ) . \eqno ( 1 7 ) \]
Then, in order to analyze the equality condition of Eq.(3) for \( \nu ( x ^ { t } | x ^ { t + 1 } , y ^ { t } ) \), we calculate the difference \( \Delta \) between the values of −E[Θtν] as calculated with Eqs. (17) and (15), writing
\[ \Delta = \operatorname { E } \left[ \log { \frac { p _ { s } ( x ^ { t } | y ^ { t } , y ^ { t + 1 } , x ^ { t + 1 } ) } { p _ { s } ( x ^ { t } | y ^ { t } , x ^ { t + 1 } ) } } \right] = \operatorname { I } [ y ^ { t + 1 } ; x ^ { t } | x ^ { t + 1 } , y ^ { t } ] . \eqno ( 1 8 ) \]
Because −E[Θtν] = Ix→y in the case with Eq.(15), we obtain
\[ \begin{array} { r } { \mathrm { I } _ { x \to y } + \mathrm { E } [ \Theta _ { \nu } ^ { t } ] = \mathrm { I } [ y ^ { t + 1 } ; x ^ { t } | x ^ { t + 1 } , y ^ { t } ] , \eqno ( 1 9 ) } \end{array} \]
in the case with Eq.(17).
Next, we show that the condition
\[ \begin{array} { r } { \mathrm { I } [ y ^ { t + 1 } ; x ^ { t } | x ^ { t + 1 } , y ^ { t } ] = 0 , \eqno ( 2 0 ) } \end{array} \]
is equivalent to the maximization of the mutual information,
\[ \begin{array} { r } { \mathrm { I } [ x ^ { t } ; y ^ { t } ] = \mathrm { H } [ y ^ { t } ] , \eqno ( 2 1 ) } \end{array} \]
on the assumption that the environmental state space Y is not too finely partitioned in comparison with the precision of neural control over the environment. Precisely, we assume that there is no coarse-grained partition \( y ^ { \prime } \) of Y such that the neural control has the same precision on the two partitions Y and \( \mathcal { V } ^ { \prime } \) of the environmental state space. We also assume that \( p _ { s } ( y ^ { t + 1 } | y ^ { t } ) \neq 1 \) for all \( y ^ { t } \) and \( y ^ { t + 1 } \), which holds for most sets of values of the model parameters in a general model. A coarse-grained partition \( y ^ { \prime } \) is a set of subcollections of Y such that \( y ^ { \prime } \cap y ^ { \prime \prime } = \emptyset \) for any \( y ^ { \prime } \neq y ^ { \prime \prime } \in \mathcal { y } ^ { \prime } \) and \( \cup _ { y ^ { \prime } \in \mathcal { y ^ { \prime } } } y ^ { \prime } = \mathcal { y } \). For any such coarse-grained partition \( \mathcal { V } ^ { \prime } \), we require |
20740853_6.pdf | en | \[ \begin{array} { r } { \mathrm { I } [ y ^ { t + 1 , \prime } ; x ^ { t } | y ^ { t } ] \neq \mathrm { I } [ y ^ { t + 1 } ; x ^ { t } | y ^ { t } ] , \; y ^ { t + 1 } \in y ^ { t + 1 , \prime } \in \mathcal { Y } ^ { \prime } , \eqno ( 2 2 ) } \end{array} \]
where we have defined the random variable \( y ^ { t + 1 , \prime } \), which takes values in \( \mathcal { V } ^ { \prime } \) with \( y ^ { t + 1 } \in y ^ { t + 1 , \prime } . \). Under this assump-tion, we first show that the conditional mutual information,
\[ \mathrm { I } [ y ^ { t + 1 } ; x ^ { t + 1 } | y ^ { t } ] = \sum _ { x ^ { t + 1 } , y ^ { t + 1 } , y ^ { t } } p _ { s } ( y ^ { t } , y ^ { t + 1 } , x ^ { t + 1 } ) \log \frac { p _ { s } ( y ^ { t + 1 } | x ^ { t + 1 } , y ^ { t } ) } { p _ { s } ( y ^ { t + 1 } | y ^ { t } ) } , \eqno ( 2 3 ) \]
must be maximal. Note that the conditional mutual information takes its maximal value and hence satisfies
\[ \begin{array} { r } { \mathrm { I } [ x ^ { t + 1 } ; y ^ { t + 1 } | y ^ { t } ] = \mathrm { H } [ y ^ { t + 1 } | y ^ { t } ] \eqno ( 2 4 ) } \end{array} \]
if and only if \( p _ { s } ( y ^ { t + 1 } | x ^ { t + 1 } , y ^ { t } ) \ = \ 1 \) with probability 1. Thus, to obtain the desired result, we show that \( p _ { s } ( y ^ { t + 1 } | x ^ { t + 1 } , y ^ { t } ) > 0 \) for multiple \( y ^ { t + 1 } \) with some \( y ^ { t } = y _ { 0 } \) and \( { \boldsymbol { x } } ^ { t + 1 } = { \boldsymbol { x } } _ { 0 } \) contradicts Eq.(20).
First, we define the set
\[ \overline { { y } } = \{ y ^ { t + 1 } \in \mathcal { Y } | p _ { s } ( y ^ { t + 1 } | x ^ { t + 1 } = x _ { 0 } , y ^ { t } = y _ { 0 } ) > 0 \} , \eqno ( 2 5 ) \]
and a coarse-grained partition of \( _ { 3 } \) as
\[ \mathcal { V } = \{ \{ y \} \} _ { y \in \mathcal { V } \backslash \overline { { y } } } \cup \{ \overline { { y } } \} . \eqno ( 2 6 ) \]
Here, \( y \setminus \overline { y } \) is the relative complement of \( \overline { { y } } \) in \( y \), which consists of all the elements of \( y \) that are not contained in y. The assumption in Eq.(22) requires
\[ \begin{array} { r l r } { \operatorname { I } [ y ^ { t + 1 } ; x ^ { t } | y ^ { t } ] - \operatorname { I } [ y ^ { t + 1 , \prime } ; x ^ { t } | y ^ { t } ] = \operatorname { I } [ y ^ { t + 1 } , y ^ { t + 1 , \prime } ; x ^ { t } | y ^ { t } ] - \operatorname { I } [ y ^ { t + 1 , \prime } ; x ^ { t } | y ^ { t } ] } & { } & \\ { = \operatorname { I } [ y ^ { t + 1 } ; x ^ { t } | y ^ { t + 1 , \prime } , y ^ { t } ] } & { } & { } \\ { > 0 . } & { } & { \qquad \qquad \qquad \qquad \qquad ( 2 7 \times ( 3 \times 3 ) + 1 ) } \end{array} \]
where the first equality holds because \( y ^ { t + 1 } \) uniquely determines \( y ^ { t + 1 , \prime } \) and thus the additional inclusion of \( y ^ { t + 1 , \prime } \) in the first term does not affect the value of the conditional mutual information. Also, Eq.(20) implies
\[ \begin{array} { r l r } { { \mathrm { I } } [ y ^ { t + 1 } ; x ^ { t } | y ^ { t } , x ^ { t + 1 } ] = { \mathrm { I } } [ y ^ { t + 1 } ; x ^ { t } | y ^ { t + 1 , \prime } , y ^ { t } , x ^ { t + 1 } ] = 0 . \eqno ( 2 8 ) } \end{array} \]
Now, recall that the inclusion of additional conditioning variables (in this case, \( y ^ { t + 1 , \prime } ) \) always reduces the value of the conditional mutual information. The right-hand side of the above equation can be written as
\[ \begin{array} { r l } & { \quad \mathrm { E } \left[ \log \frac { p _ { s } ( y ^ { t + 1 } | x ^ { t } , y ^ { t + 1 , \prime } , y ^ { t } , x ^ { t + 1 } ) } { p _ { s } ( y ^ { t + 1 } | y ^ { t + 1 , \prime } , y ^ { t } , x ^ { t + 1 } ) } \right] } \\ & { = \mathrm { E } \left[ \log \left\{ \frac { p _ { s } ( x ^ { t + 1 } | y ^ { t + 1 } ) p _ { s } ( y ^ { t + 1 } | y ^ { t + 1 , \prime } , y ^ { t } , x ^ { t } ) } { \sum _ { \tilde { y } ^ { t + 1 } \in \mathcal { Y } } p _ { s } ( x ^ { t + 1 } | y ^ { t + 1 } ) p _ { s } ( \tilde { y } ^ { t + 1 } | y ^ { t + 1 , \prime } , y ^ { t } ) } \right\} \right] } \\ & { = 0 , } \end{array} \]
with the dummy variables \( \widetilde { \boldsymbol { y } } ^ { t + 1 } \) and \( \widehat { y } ^ { t + 1 } \) having the same (conditional) distributions as \( y ^ { t + 1 } \). The above equality requires that the argument of the logarithm be 1 with probability 1, since \( F - 1 \geq \log F \), \( F - 1 = \log F \leftrightarrow F = 1 \) and
\[ \begin{array} { r l } & { \quad - \mathrm { E } \left[ \log \frac { p _ { s } ( y ^ { t + 1 } | x ^ { t } , y ^ { t + 1 , \prime } , y ^ { t } , x ^ { t + 1 } ) } { p _ { s } ( y ^ { t + 1 } | y ^ { t + 1 , \prime } , y ^ { t } , x ^ { t + 1 } ) } \right] } \\ & { = \underbrace { \sum _ { x ^ { t } , y ^ { t + 1 , \prime } , y ^ { t } , x ^ { t + 1 } , y ^ { t } , x ^ { t + 1 } \} \sum _ { y ^ { t + 1 } } p _ { s } ( y ^ { t + 1 } | x ^ { t } , y ^ { t + 1 , \prime } , y ^ { t } , x ^ { t + 1 } ) \log \frac { p _ { s } ( y ^ { t + 1 } | y ^ { t + 1 , \prime } , y ^ { t } , x ^ { t + 1 } ) } { p _ { s } ( y ^ { t + 1 } | x ^ { t } , y ^ { t + 1 , \prime } , y ^ { t } , x ^ { t + 1 } ) } } \\ & { \leq \underbrace { \sum _ { x ^ { t } , y ^ { t + 1 , \prime } , y ^ { t } , x ^ { t + 1 } } p _ { s } ( x ^ { t } , y ^ { t + 1 , \prime } , y ^ { t } , x ^ { t + 1 } ) \sum _ { y ^ { t + 1 } } p _ { s } ( y ^ { t + 1 } | x ^ { t } , y ^ { t + 1 , \prime } , y ^ { t } , x ^ { t + 1 } ) \left( \frac { p _ { s } ( y ^ { t + 1 } | y ^ { t + 1 , \prime } , y ^ { t } , x ^ { t + 1 } ) } { p _ { s } ( y ^ { t + 1 } | x ^ { t } , y ^ { t + 1 , \prime } , y ^ { t } , x ^ { t + 1 } ) } - 1 \right) } _ { ( 3 0 ) } } \\ & { = 0 . } \end{array} \] |
11792465_150.pdf | en | # 13 Investments Accounted for Using Equity Method (Continued)
# (a) Investment in a Joint Venture (Continued)
O-Net WaveTouch was incorporated by the Group for the purpose of development of the wave touch technology, together with an independent third party, pursuant to an investment agreement signed on 4 June 2013. According to the Memorandum and Article of Association of O-Net WaveTouch (“O-Net WaveTouch M&A”), the Group has joint control with the counter party over O-Net WaveTouch as unanimous consent is required from both parties for all significant day-to-day operating activities, future capital fund raising as well as future business development. Despite the Group was granted an option to acquire from the counter party an additional 35% of the shares of O-Net WaveTouch (“Original Call Option”) at fixed purchase price of USD10,000,000 from 4 June 2013 to 4 June 2017, unanimous consent is still required from both parties for all above-mentioned business activities. Accordingly, the investment in O-Net WaveTouch has been accounted for as a joint venture by the Group in 2015.
According to a share swap agreement dated 19 October 2016 (“Share Swap Agreement”), the Group transferred its shareholding interests in O-Net WaveTouch to WaveTouch Group Limited (“WaveTouch Group”), a company located in UK, in return for WaveTouch Group’s 8,000,000 shares. As a result of the share swap, the investment in O-Net WaveTouch and Original Call Option was disposed of. In return, the Group obtained investment in WaveTouch Group (approximately 33% of interests) and a call option to acquire additional 7,000,000 shares in WaveTouch Group (“Revised Call option”). Pursuant to the Share Swap Agreement, the Group has also granted PASINIKA SARL (“PKA”), a third party, a call option (“Call Option”) to buy the Group’s interest in WaveTouch Group (including the interests and Revised Call Option), at a consideration of a cash of USD3,000,000 or certain interests in Windar Photonics PLC (“Windar”), a UK listed company, with the market value not less than USD2,500,000, or a cash payment of USD1,500,000 and 750,000 shares of Windar. The certain interests in Windar will be satisfied by 1,000,001 to 2,000,000 shares of Windar dependent upon the price of Windar’s share. At the same time, PKA granted the Group a put option (“Put Option”) to sell the Group’s interests in WaveTouch Group (including the interest and Call Option), at a consideration of 1,000,000 Windar shares if the market value of such Windar Shares is not less than USD2,500,000, or up to 2,000,000 Windar shares if the market value of 1,000,000 Windar Shares is less than USD2,500,000. The Call Option and Put Option could be exercised any time during the period from 1 October 2016 to 30 June 2018. Given the Group has no significant influence on WaveTouch Group, and it managed the investment in WaveTouch Group on a fair value basis, the Group designated the investment in WaveTouch Group together with other financial assets related to the Share Swap Agreement as financials assets at fair value through profit or loss (Note 17). A disposal gain regarding the investment in O-Net WaveTouch amounting to HKD2,980,000 (including HKD4,205,000 gain on disposal of investments accounted for using equity method and HKD1,225,000 loss on disposal of call option in equity investment) was recognized in 2016.
On 2 August 2017, O-Net Coating and Materials Technologies (HK) Limited (“O-Net Coating”) entered into an Agreement with OB Technologies (Hong Kong) Limited, formerly known as Butterfly Technologies (Hong Kong) Limited (“OB”) in relation to the formation of OB Technologies (Shenzhen) Limited, formerly known as O-Net Butterfly Technologies (Shenzhen) Limited (“the JV Company”). The total registered capital of the JV Company is HKD10,000,000 with each of O-Net Coating and OB investing HKD5,000,000. As stipulated in the joint venture agreement, the financial and operational policies of the JV Company must be decided jointly by O-Net Coating and OB. |
11792465_151.pdf | en | # 14 Inventories
<table><tr><td rowspan="2"></td><td>2017</td><td>2016</td></tr><tr><td>HKD’000</td><td>HKD’000</td></tr><tr><td>Cost:</td><td></td><td></td></tr><tr><td>Raw materials</td><td>234,829</td><td>167,579</td></tr><tr><td>Work-in-progress</td><td>80,846</td><td>69,469</td></tr><tr><td>Finished goods</td><td>82,008</td><td>52,101</td></tr><tr><td></td><td>397,683</td><td>289,149</td></tr><tr><td>Less: provision for write-down of inventories to net realizable values</td><td>20,212</td><td>(19,370)</td></tr><tr><td></td><td>377,471</td><td>269,779</td></tr></table>
For the year ended 31 December 2017, the cost of inventories recognized as cost of sales, selling and marketing costs, research and development expenses, administrative expenses and capitalised expenditure of development costs amounted to HKD1,016,100,000 (2016: HKD806,135,000).
For the year ended 31 December 2017, the Group wrote back provision for write-down of inventories of HKD323,000 (2016: the Group made provision for write-down of inventories of HKD11,796,000).
# 15 Trade and Other Receivables
<table><tr><td rowspan="2"></td><td>2017</td><td>2016</td></tr><tr><td>HKD’000</td><td>HKD’000</td></tr><tr><td>Trade receivables (a)</td><td>708,062</td><td>461,778</td></tr><tr><td>Less: provision for impairment of receivables (b)</td><td>(752)</td><td>(1,106)</td></tr><tr><td>Trade receivables — net</td><td>707,310</td><td>460,672</td></tr><tr><td>Amounts due from related parties (a) (Note 36(d))</td><td>379</td><td>393</td></tr><tr><td>Bills receivable (c)</td><td>193,062</td><td>148,873</td></tr><tr><td>Prepayments</td><td>30,425</td><td>12,062</td></tr><tr><td>Interest receivables</td><td>940</td><td>1,675</td></tr><tr><td>Other receivables (d)</td><td>116,145</td><td>49,698</td></tr><tr><td></td><td>1,048,261</td><td>673,373</td></tr><tr><td>Less non-current portion: other receivables (d)</td><td>(73,213)</td><td>(26,139)</td></tr><tr><td>Current portion</td><td>975,048</td><td>647,234</td></tr></table> |
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