irasia.com - Yue Yuen Industrial (Holdings) Limited

Yue Yuen Industrial (Holdings) Limited
(incorporated in Bermuda with limited liabiltiy)

Notes on the Accounts
For the year ended 30th September 1998

Note: [3] [4] [5] [6] [7] [8] [9] [10] [11] [12]

3. OPERATING PROFIT

4. DIRECTORS' EMOLUMENTS AND EMPLOYEES EMOLUMENTS

The directors' emoluments disclosed above include the rateable value of a property which is owned by the Group and occupied by an executive director of the Company. The rateable value of the residential accommodation provided to the director is US$17,000. (1997: US$17,000).
The emoluments of the directors were within the following bands:

During the year, no emoluments were paid by the Group to the directors as an inducement to join or upon joining the Group or as compensation for loss of office. None of the directors has waived any emoluments during the year.
All the five highest paid employees of the Group in both years were executive directors of the Company. Details of their emoluments were disclosed above.

5. TAXATION

A substantial portion of the Group's profits neither arose in, nor was derived from, Hong Kong and therefore was not subject to Hong Kong Profits Tax.
Overseas taxation is calculated at the rates prevailing in the respective jurisdictions.
The Group had no significant unprovided deferred taxation for the year.

6. PROFIT ATTRIBUTABLE TO SHAREHOLDERS

The Group's profit attributable to shareholders includes profit of US$91,888,000 (1997: US$47,824,000) which has been dealt with in the financial statements of the Company and profits of US$1,285,000 (1997: US$588,000) are retained by the associated companies.

7. DIVIDENDS

The amount of the final dividend proposed for the year ended 30th September, 1998 has been calculated by reference to 670,382,953 ordinary shares in issue as at the date of this report.

8. EARNINGS PER SHARE

The calculation of the basic and diluted earnings per share for the year is based on the following data:

The adoption of the revised Statement of Standard Accounting Practice No. 5 "Earnings per share" issued by the Hong Kong Society of Accountants ("SSAP 5") has resulted in some modifications to the basis of calculation of earnings per share amounts and to the disclosures presented for earnings per share. Amounts presented for the prior year have been restated to reflect the requirement of the revised SSAP 5.

9. FIXED ASSETS

The investment properties which are rented out under operating leases were revalued at 30th September, 1998 by Knight Frank, an independent firm of professional property valuers, on an open market value basis. The surplus arising on revaluation has been credited to the investment properties revaluation reserve.
The land and buildings stated at 1995 valuation were valued at 30th September, 1995 by Knight Frank & Kan (now known as “Knight Frank”), an independent firm of professional property valuers, on an open market value basis before being transferred from investment properties. No further valuation will be carried out on these land and buildings.
At the balance sheet date, the land use rights certificates and the property ownership certificates in respect of properties in Mainland China (the “PRC”) with an aggregate net book value of US$29,246,000 (1997: US$29,492,000) have not been issued by the relevant PRC government authority. The Group has paid substantially the full amount of the purchase consideration and in the opinion of the directors, such certificates will be issued in due course.
In addition, at the balance sheet date, the property ownership certificates in respect of properties in Indonesia with an aggregate net book value of US$11,865,000 (1997: US$10,959,000) have not been issued by the relevant Indonesian government authority. The Group has paid the full amount of the purchase consideration and in the opinion of the directors, such certificates will be issued in due course. Also, at the balance sheet date, the transfer of the ownership title of certain pieces of land situated in Indonesia with an aggregate net book value of US$3,350,000 (1997: US$3,350,000) is pending approval from the relevant Indonesian government authority.

Included in buildings under construction as at 30th September, 1998 was interest capitalised amounting to approximately US$2.0 million (1997: US$1.1 million).

10. INTERESTS IN SUBSIDIARIES

Details of the Company's principal subsidiaries at 30th September, 1998 are set out in note 30.

11. INTERESTS IN ASSOCIATED COMPANIES

Details of the Group's principal associated companies at 30th September, 1998 are set out in note 31.

12. OTHER LONG-TERM ASSETS

Notes:
(a) The deposits were paid by the Company in connection with the acquisition of a long-term investment outside Hong Kong in which the Company is expected to own less than 5% equity interest. The amount committed at 30th September, 1998 is shown as a capital commitment in note 26.
(b) The deposits were paid by the Group in connection with the acquisition of properties in the PRC. The amount committed at 30th September, 1998 is shown as a capital commitment in note 26.
(c) The receivable is due from a minority shareholder of a subsidiary (the "MI Shareholder"). It is secured by the MI Shareholder's equity interests in the subsidiary, carries interest which is equivalent to the rate of dividend distributed by the subsidiary and has no fixed repayment terms. The Group has an option to acquire, at any time, the MI Shareholder's interests for a consideration equivalent to the outstanding receivable upon exercise of the option. In the opinion of the directors, the receivable is unlikely to be repaid within one year and is therefore shown in the balance sheet as non-current.
(d) This represents the Group's cost of investment in 3.5% equity interest in an overseas unlisted company.
In the opinion of the directors, the value of these long-term assets is at least equal to their carrying values.

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3.	OPERATING PROFIT

4.	DIRECTORS' EMOLUMENTS AND EMPLOYEES EMOLUMENTS The directors' emoluments disclosed above include the rateable value of a property which is owned by the Group and occupied by an executive director of the Company. The rateable value of the residential accommodation provided to the director is US$17,000. (1997: US$17,000). The emoluments of the directors were within the following bands: During the year, no emoluments were paid by the Group to the directors as an inducement to join or upon joining the Group or as compensation for loss of office. None of the directors has waived any emoluments during the year. All the five highest paid employees of the Group in both years were executive directors of the Company. Details of their emoluments were disclosed above.

5.	TAXATION A substantial portion of the Group's profits neither arose in, nor was derived from, Hong Kong and therefore was not subject to Hong Kong Profits Tax. Overseas taxation is calculated at the rates prevailing in the respective jurisdictions. The Group had no significant unprovided deferred taxation for the year.

6.	PROFIT ATTRIBUTABLE TO SHAREHOLDERS The Group's profit attributable to shareholders includes profit of US$91,888,000 (1997: US$47,824,000) which has been dealt with in the financial statements of the Company and profits of US$1,285,000 (1997: US$588,000) are retained by the associated companies.

7.	DIVIDENDS The amount of the final dividend proposed for the year ended 30th September, 1998 has been calculated by reference to 670,382,953 ordinary shares in issue as at the date of this report.

8.	EARNINGS PER SHARE The calculation of the basic and diluted earnings per share for the year is based on the following data: The adoption of the revised Statement of Standard Accounting Practice No. 5 "Earnings per share" issued by the Hong Kong Society of Accountants ("SSAP 5") has resulted in some modifications to the basis of calculation of earnings per share amounts and to the disclosures presented for earnings per share. Amounts presented for the prior year have been restated to reflect the requirement of the revised SSAP 5.

9.	FIXED ASSETS The investment properties which are rented out under operating leases were revalued at 30th September, 1998 by Knight Frank, an independent firm of professional property valuers, on an open market value basis. The surplus arising on revaluation has been credited to the investment properties revaluation reserve. The land and buildings stated at 1995 valuation were valued at 30th September, 1995 by Knight Frank & Kan (now known as “Knight Frank”), an independent firm of professional property valuers, on an open market value basis before being transferred from investment properties. No further valuation will be carried out on these land and buildings. At the balance sheet date, the land use rights certificates and the property ownership certificates in respect of properties in Mainland China (the “PRC”) with an aggregate net book value of US$29,246,000 (1997: US$29,492,000) have not been issued by the relevant PRC government authority. The Group has paid substantially the full amount of the purchase consideration and in the opinion of the directors, such certificates will be issued in due course. In addition, at the balance sheet date, the property ownership certificates in respect of properties in Indonesia with an aggregate net book value of US$11,865,000 (1997: US$10,959,000) have not been issued by the relevant Indonesian government authority. The Group has paid the full amount of the purchase consideration and in the opinion of the directors, such certificates will be issued in due course. Also, at the balance sheet date, the transfer of the ownership title of certain pieces of land situated in Indonesia with an aggregate net book value of US$3,350,000 (1997: US$3,350,000) is pending approval from the relevant Indonesian government authority. Included in buildings under construction as at 30th September, 1998 was interest capitalised amounting to approximately US$2.0 million (1997: US$1.1 million).

10.	INTERESTS IN SUBSIDIARIES Details of the Company's principal subsidiaries at 30th September, 1998 are set out in note 30.

11.	INTERESTS IN ASSOCIATED COMPANIES Details of the Group's principal associated companies at 30th September, 1998 are set out in note 31.

12.	OTHER LONG-TERM ASSETS Notes: (a) The deposits were paid by the Company in connection with the acquisition of a long-term investment outside Hong Kong in which the Company is expected to own less than 5% equity interest. The amount committed at 30th September, 1998 is shown as a capital commitment in note 26. (b) The deposits were paid by the Group in connection with the acquisition of properties in the PRC. The amount committed at 30th September, 1998 is shown as a capital commitment in note 26. (c) The receivable is due from a minority shareholder of a subsidiary (the "MI Shareholder"). It is secured by the MI Shareholder's equity interests in the subsidiary, carries interest which is equivalent to the rate of dividend distributed by the subsidiary and has no fixed repayment terms. The Group has an option to acquire, at any time, the MI Shareholder's interests for a consideration equivalent to the outstanding receivable upon exercise of the option. In the opinion of the directors, the receivable is unlikely to be repaid within one year and is therefore shown in the balance sheet as non-current. (d) This represents the Group's cost of investment in 3.5% equity interest in an overseas unlisted company. In the opinion of the directors, the value of these long-term assets is at least equal to their carrying values.

Yue Yuen Industrial (Holdings) Limited(incorporated in Bermuda with limited liabiltiy)

Yue Yuen Industrial (Holdings) Limited
(incorporated in Bermuda with limited liabiltiy)