annual report 2014
I
Notes to the Financial Statements
31 December 2014 (Cont’d)
83
8.
LAND USE RIGHTS
Group
2014
2013
RMB’000
RMB’000
Carrying amount
At 1 January
52,764
53,982
Amortisation charge for the financial year
(1,217)
(1,218)
At 31 December
51,547
52,764
Cost
60,860
60,860
Accumulated amortisation
(9,313)
(8,096)
Carrying amount
51,547
52,764
(a)
The Group was granted land use rights for a period of fifty (50) years in relation to the lands situated in PRC.
(b)
During the financial year, land use rights with carrying amount of RMB46,174,000 (2013: RMB47,262,000) have
been charged to licensed banks for the banking facilities granted to the Group.
9.
INVESTMENTS IN SUBSIDIARIES
Company
2014
2013
RMB’000
RMB’000
Unquoted equity shares, at cost
194,712
204,915
Equity loan to a subsidiary
424,105
306,238
618,817
511,153
During the financial year, the Directors of the Company assessed the nature of the amount owing by a subsidiary and
determined a portion of the outstanding balance of the amount owing by a subsidiary amounting to RMB424,105,000
(2013: RMB306,238,000) shall constitute an equity loan to the subsidiary, which is unsecured, interest-free and is
considered to be part of the net investment in foreign operation of the Company.
The details of the subsidiaries are as follows:
Effective interest
Country of
in equity
Name of company
incorporation
2014
2013
Principal activities
Hong Kong
Hong Kong Special
100% 100% Investment holding
XinYuanChan
Administrative
International Holdings
Region (“HKSAR”)
Co., Limited
(“XinYuanChan”) #
Subsidiary of XinYuanChan
HongPeng (Fujian)
PRC
100% 100% Design, manufacturing and
Shoes & Garments
marketing of sports shoes as
Co., Ltd. (“HPFJ”) #
well as design and marketing
of sports apparel, accessories
and equipment
