21. investments in...
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Franshion Properties (China) Limited Annual Report 2013 223
Notes to Financial Statements31 December 2013
21. INVESTMENTS IN SUBSIDIARIESCompany
2013 2012HK$’000 HK$’000
Unlisted investments, at cost 24,532,759 21,050,076
The amounts due from subsidiaries included in the Company’s current assets of HK$15,631,655,000 (2012: HK$5,640,277,000) are unsecured, interest-free and are repayable on demand or within one year. The amounts due to subsidiaries included in the Company’s non-current liabilities of HK$15,197,718,000 (2012: HK$11,377,681,000) are unsecured, interest-free and are not repayable within one year, except for the amounts of HK$3,673,460,000 (2012: Nil) and HK$3,858,698,000 (2012: Nil) which are interest-bearing at 5.1% and 7.78% per annum respectively.
Particulars of the principal subsidiaries are as follows:
Company name
Place of incorporation/ registration and operations
Nominal value of issued ordinary
share capital/ paid-up capital
Percentage of equity attributable to the
Company Principal activitiesDirect Indirect
Shanghai Pudong Jinxin Real Estate Development Co., Ltd.
(“Pudong Jinxin”)*
The PRC/ Mainland China
US$5,600,000 50%# – Investment holding
Shanghai Port International Cruise Terminal Development Co., Ltd. (“SPICT”)
The PRC/ Mainland China
RMB61,490,000 – 50%@ Property development
Shanghai International Shipping Service Center Co., Ltd. (“SISSC”)*
The PRC/ Mainland China
RMB3,150,000,000 50%# – Property development
Sinochem Franshion Real Estate (Zhuhai) Co., Ltd.***
The PRC/ Mainland China
RMB490,000,000 100% – Property development
Sinochem Franshion Property (Beijing) Co., Ltd.***
The PRC/ Mainland China
US$635,000,000 100% – Property development
Shanghai Yin Hui Real Estate Development Co., Ltd. (“Shanghai Yin Hui”)*
The PRC/ Mainland China
RMB1,355,000,000 50%# – Property development
Qingdao Franshion Development Co., Ltd. (“Qingdao Franshion”)**
The PRC/ Mainland China
RMB100,000,000 – 100% Investment holding
Chongqing Xingtuo development Co., Ltd.***
The PRC/ Mainland China
US$200,000,000 – 100% Property development
Franshion Properties (China) Limited Annual Report 2013224
Notes to Financial Statements31 December 2013
Company name
Place of incorporation/ registration and operations
Nominal value of issued ordinary
share capital/ paid-up capital
Percentage of equity attributable to the
Company Principal activitiesDirect Indirect
Jin Mao (Shanghai) Real Estate Co., Ltd.**
The PRC/ Mainland China
RMB1,010,000,000 – 100% Property development
Beijing Chemsunny Property Company Limited***
The PRC/ Mainland China
US$102,400,000 50% 50% Property investment
Sinochem Jin Mao Property Management (Beijing)
Co., Ltd.*
The PRC/ Mainland China
RMB5,000,000 85% 15% Property management
Sinochem International Property and Hotels Management
Co., Ltd.***
The PRC/ Mainland China
RMB387,600,000 25% 75% Property management
Wangfujing Hotel Management Company Limited***
The PRC/ Mainland China
US$73,345,000 25% 75% Hotel operation
Sinochem Franshion (Shanghai) Properties Management Company Limited***
The PRC/ Mainland China
US$8,000,000 100% – Investment holding
China Jin Mao Group Co., Ltd.***
The PRC/ Mainland China
RMB2,635,000,000 – 100% Hotel operation and property investment
Shanghai Jin Mao Construction & Decoration Company Limited**
The PRC/ Mainland China
RMB10,000,000 – 100% Provision of building decoration services
Jin Mao (Beijing) Real Estate Company Limited**
The PRC/ Mainland China
RMB1,600,000,000 – 100% Hotel operation
Jin Mao Sanya Resort Hotel Company Limited**
The PRC/ Mainland China
RMB300,000,000 – 100% Hotel operation
Beijing Franshion Rongchuang Properties Limited** (“Franshion Rongchuang”)
The PRC/ Mainland China
RMB100,000,000 – 51% Property development
Changsha Jin Mao Meixi Lake International Plaza Properties Limited***
The PRC/ Mainland China
US$352,000,000 – 100% Property development
Changsha Meixi Lake International Research and Development Limited**
The PRC/ Mainland China
RMB10,000,000 – 80% Property development
21. INVESTMENTS IN SUBSIDIARIES (Continued)
Franshion Properties (China) Limited Annual Report 2013 225
Notes to Financial Statements31 December 2013
Company name
Place of incorporation/ registration and operations
Nominal value of issued ordinary
share capital/ paid-up capital
Percentage of equity attributable to the
Company Principal activitiesDirect Indirect
Changsha Xing Mao Development Limited**
The PRC/ Mainland China
RMB10,000,000 – 100% Land development
Sanya Yazhouwan Economic Development Company Limited (“Sanya Yazhouwan”)**
The PRC/ Mainland China
RMB160,000,000 – 51% Land development
Jin Mao Sanya Tourism Company Limited**
The PRC/ Mainland China
RMB500,000,000 – 100% Hotel operation
Jin Mao Shenzhen Hotel Investment Company Limited**
The PRC/ Mainland China
RMB700,000,000 – 100% Hotel operation
Jin Mao (Li Jiang) Zhi Ye Co., Ltd.**
The PRC/ Mainland China
RMB100,000,000 – 100% Property development
Jin Mao (Li Jiang) Hotel Investment Co., Ltd.**
The PRC/ Mainland China
RMB100,000,000 – 100% Property development
Jin Mao Investment (Changsha) Co., Ltd. (“Jin Mao Changsha”)**
The PRC/ Mainland China
RMB3,750,000,000 – 80% Land development
Franshion Capital Limited British Virgin Islands/ Hong Kong
US$1 100% – Investment holding
Franshion Development Limited British Virgin Islands/ Hong Kong
US$1 100% – Investment holding
Franshion Investment Limited British Virgin Islands/ Hong Kong
US$1 100% – Investment holding
Franshion Brilliant Limited British Virgin Islands/ Hong Kong
US$1 100% – Investment holding
Premier Action International Ltd. British Virgin Islands/Hong Kong
US$100 80% – Investment holding
Enhanced Experience Limited British Virgin Island/Hong Kong
US$100 51% – Investment holding
21. INVESTMENTS IN SUBSIDIARIES (Continued)
Franshion Properties (China) Limited Annual Report 2013226
Notes to Financial Statements31 December 2013
Company name
Place of incorporation/ registration and operations
Nominal value of issued ordinary
share capital/ paid-up capital
Percentage of equity attributable to the
Company Principal activitiesDirect Indirect
Changsha Franshion Shengrong Properties Limited**
The PRC/ Mainland China
RMB50,000,000 – 100% Property development
Shanghai Yingtan Investment Limited**
The PRC/ Mainland China
RMB21,000,000 – 100% Investment holding
Changsha Jin Yue Development Limited**
The PRC/ Mainland China
RMB150,000,000 – 70% Property development
Franshion Properties (Suzhou) Limited***
The PRC/ Mainland China
USD395,000,000 – 80% Property development
Franshion Properties (Ningbo) Limited***
The PRC/ Mainland China
USD146,300,000 – 60% Property development
Shanghai Xingwaitan Development and Construction Limited*
The PRC/ Mainland China
RMB6,000,000,000 – 50%# Property development
Beijing Franshion Yicheng Properties Limited (“Franshion Yicheng”)**
The PRC/ Mainland China
RMB1,742,800,000 – 51% Property development
Leading Holdings Limited British Virgin Islands/ Hong Kong
US$40,000 – 51% Investment holding
Nanjing International Group Limited**
The PRC/ Mainland China
RMB1,246,237,500 – 49%@ Property development, Hotel operation and property investment
* Registered as Sino-foreign joint ventures under PRC law
** Registered as limited liability companies under PRC law
*** Registered as wholly-foreign-owned entities under PRC law
# The Group controls the boards of directors of these entities by virtue of its power to cast the majority of votes at meetings
of the boards, and therefore has the power to exercise control over the entities’ operating and financing activities.
@ The entity is being a subsidiary of a non-wholly-owned subsidiary of the Company and, accordingly, is accounted for as a
subsidiary by virtue of the Company’s control over it.
21. INVESTMENTS IN SUBSIDIARIES (Continued)
Franshion Properties (China) Limited Annual Report 2013 227
Notes to Financial Statements31 December 2013
21. INVESTMENTS IN SUBSIDIARIES (Continued)The English names of certain of the above companies represent the best efforts by management of the Company in directly translating the Chinese names of these companies as no English names have been registered or available.
During the year, the Group acquired Leading Holdings Limited and its subsidiaries from Bateson Investment Limited. Further details of this acquisition are included in note 39 to the financial statements.
The above table lists the subsidiaries of the Company which, in the opinion of the directors, principally affected the results for the year or formed a substantial portion of the net assets of the Group. To give details of other subsidiaries would, in the opinion of the directors, result in particulars of excessive length.
Details of the Group’s subsidiaries that have material non-controlling interests are set out below:
SISSCShanghai
Yin HuiFranshion
RongchuangJin Mao
ChangshaHK$’000 HK$’000 HK$’000 HK$’000
2013
Percentage of equity interest held by non-controlling interests 50% 50% 49% 20%
Profit/(loss) for the year allocated to non-controlling interests (2,226) 666,093 (28,311) 470,381
Dividends declared to non-controlling interests – 544,843 – 272,076Accumulated balances of non-controlling interests at the
reporting date 1,981,387 1,599,963 8,538 1,235,332
PudongJinxin& SISSC
Shanghai Yin Hui
FranshionRongchuang
Jin Mao Changsha
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
2012
Percentage of equity interest held by non-controlling interests 50% 50% 50% 49% 20%
Profit/(loss) for the year allocated to non-controlling interests 202,325 (5,572) 609,614 (24,181) 83,637
Dividends declared to non-controlling interests – – – – 162,118
Accumulated balances of non-controlling interests at the reporting date 702,766 1,923,448 1,431,940 36,173 1,002,451
Franshion Properties (China) Limited Annual Report 2013228
Notes to Financial Statements31 December 2013
21. INVESTMENTS IN SUBSIDIARIES (Continued)The following tables illustrate the summarised financial information of the above subsidiaries. The amounts disclosed are before any inter-company eliminations:
SISSCShanghai
Yin HuiFranshion
RongchuangJin Mao
ChangshaHK$’000 HK$’000 HK$’000 HK$’000
2013
Revenue – 3,799,024 – 8,382,622Total expenses (4,451) (2,466,838) (57,778) (6,030,715)Profit/(loss) for the year (4,451) 1,332,186 (57,778) 2,351,907Total comprehensive income for the year (115,879) 1,425,733 (56,399) 2,524,782
Current assets 5,350,090 3,453,711 7,602,538 14,630,871Non-current assets 1,536 1,921,328 37,206 1,673,579Current liabilities (1,134,471) (2,175,113) (7,378,747) (3,933,636)Non-current liabilities (254,380) – (243,573) (6,194,153)
Net cash flows from/(used in) operating activities (517,355) 1,342,749 916,039 4,797,084Net cash flows used in investing activities (383) (645,927) (1,193,133) (1,388,368)Net cash flows from/(used in) financing activities 522,387 (1,239,374) 132,440 (1,748,475)Net increase/(decrease) in cash and cash
equivalents 4,649 (542,552) (144,654) 1,660,241
PudongJinxin& SISSC
Shanghai Yin Hui
FranshionRongchuang
Jin Mao Changsha
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
2012
Revenue 1,539,234 – 2,973,768 – 2,810,303Total expenses (1,134,584) (11,145) (1,754,540) (49.350) (2,392,120)Profit/(loss) for the year 404,650 (11,145) 1,219,228 (49.350) 418,183Total comprehensive income for the year 405,771 (4,206) 1,223,627 (49,086) 450,460
Current assets 4,027,178 4,080,944 3,340,159 5,064,452 13,524,297Non-current assets 371,141 1,589 999,414 17,911 267,197Current liabilities (2,992,787) (235,637) (1,324,117) (4,638,550) (2,372,243)Non-current liabilities – – (151,576) (369,990) (6,406,994)
Net cash flows from/(used in) operating activities 587,784 (91,744) 1,640,695 (61,558) (689,090)
Net cash flows used in investing activities (362,064) (534) (850,977) (1,636) (263,158)
Net cash flows from/(used in) financing activities (407,171) 152,717 (13,894) 740,451 350,438
Net increase/(decrease) in cash and cash equivalents (181,451) 60,439 775,824 677,257 (601,810)
& The construction and sales work were fully completed before 2013, and the Group considered it would not be material
since 2013.