21. investments in...

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”)


RMB61,490,000 – 50%@ Property development

Shanghai International Shipping Service Center Co., Ltd. (“SISSC”)*


RMB3,150,000,000 50%# – Property development

Sinochem Franshion Real Estate (Zhuhai) Co., Ltd.***


RMB490,000,000 100% – Property development

Sinochem Franshion Property (Beijing) Co., Ltd.***


US$635,000,000 100% – Property development

Shanghai Yin Hui Real Estate Development Co., Ltd. (“Shanghai Yin Hui”)*


RMB1,355,000,000 50%# – Property development

Qingdao Franshion Development Co., Ltd. (“Qingdao Franshion”)**


RMB100,000,000 – 100% Investment holding

Chongqing Xingtuo development Co., Ltd.***


US$200,000,000 – 100% Property development

Franshion Properties (China) Limited Annual Report 2013224


Company name






Jin Mao (Shanghai) Real Estate Co., Ltd.**


RMB1,010,000,000 – 100% Property development

Beijing Chemsunny Property Company Limited***


US$102,400,000 50% 50% Property investment

Sinochem Jin Mao Property Management (Beijing)

Co., Ltd.*


RMB5,000,000 85% 15% Property management

Sinochem International Property and Hotels Management

Co., Ltd.***


RMB387,600,000 25% 75% Property management

Wangfujing Hotel Management Company Limited***


US$73,345,000 25% 75% Hotel operation

Sinochem Franshion (Shanghai) Properties Management Company Limited***


US$8,000,000 100% – Investment holding

China Jin Mao Group Co., Ltd.***


RMB2,635,000,000 – 100% Hotel operation and property investment

Shanghai Jin Mao Construction & Decoration Company Limited**


RMB10,000,000 – 100% Provision of building decoration services

Jin Mao (Beijing) Real Estate Company Limited**


RMB1,600,000,000 – 100% Hotel operation

Jin Mao Sanya Resort Hotel Company Limited**


RMB300,000,000 – 100% Hotel operation

Beijing Franshion Rongchuang Properties Limited** (“Franshion Rongchuang”)


RMB100,000,000 – 51% Property development

Changsha Jin Mao Meixi Lake International Plaza Properties Limited***


US$352,000,000 – 100% Property development

Changsha Meixi Lake International Research and Development Limited**



21. INVESTMENTS IN SUBSIDIARIES (Continued)



Company name






Changsha Xing Mao Development Limited**


RMB10,000,000 – 100% Land development

Sanya Yazhouwan Economic Development Company Limited (“Sanya Yazhouwan”)**


RMB160,000,000 – 51% Land development

Jin Mao Sanya Tourism Company Limited**



Jin Mao Shenzhen Hotel Investment Company Limited**



Jin Mao (Li Jiang) Zhi Ye Co., Ltd.**



Jin Mao (Li Jiang) Hotel Investment Co., Ltd.**



Jin Mao Investment (Changsha) Co., Ltd. (“Jin Mao Changsha”)**


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


Franshion Investment Limited British Virgin Islands/ Hong Kong


Franshion Brilliant Limited British Virgin Islands/ Hong Kong


Premier Action International Ltd. British Virgin Islands/Hong Kong


Enhanced Experience Limited British Virgin Island/Hong Kong





Company name






Changsha Franshion Shengrong Properties Limited**



Shanghai Yingtan Investment Limited**


RMB21,000,000 – 100% Investment holding

Changsha Jin Yue Development Limited**



Franshion Properties (Suzhou) Limited***


USD395,000,000 – 80% Property development

Franshion Properties (Ningbo) Limited***


USD146,300,000 – 60% Property development

Shanghai Xingwaitan Development and Construction Limited*


RMB6,000,000,000 – 50%# Property development

Beijing Franshion Yicheng Properties Limited (“Franshion Yicheng”)**


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**


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)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



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.

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