REG - Aseana Prop Ltd - Final Results <Origin Href="QuoteRef">ASPL.L</Origin> - Part 2
27/04/2017 07:08
- Part 2: For the preceding part double click ID:nRSa4683Da
- * - - - - - - - -*
Changes in ownership interests in subsidiaries (Note 25) - - - - - - (585) (585) (5,340) (5,925)
Non-controlling interests contribution - - - - - - - - 2,498 2,498
Loss for the year - - - - - - (15,784) (15,784) (6,146) (21,930)
Total other comprehensive expense - - - - (16,154) 2,190 - (13,964) 234 (13,730)
Total comprehensive loss - - - - (16,154) 2,190 (15,784) (29,748) (5,912) (35,660)
At 31 December 2015/ 1 January 2016 10,601 - * 218,926 1,899 (26,401) 2,441 (77,301) 130,165 1,433 131,598
Changes in ownership interests in subsidiaries (Note 25) - - - - - - (477) (477) 477 -
Non-controlling interests contribution - - - - - - - - 113 113
Profit for the year - - - - - - 18,856 18,856 (3,378) 15,478
Total other comprehensive expense - - - - (2,741) (2,441) - (5,182) 207 (4,975)
Total comprehensive profit - - - - (2,741) (2,441) 18,856 13,674 (3,171) 10,503
Shareholders' equity at 31 December 2016 10,601 -* 218,926 1,899 (29,142) - (58,922) 143,362 (1,148) 142,214
* represents 2 management shares at US$0.05 each
CONSOLIDATED Statement OF Cash FlowS
For the year ended 31 december 2016
2016 2015
Notess US$'000 US$'000
Restated*
Cash Flows from Operating Activities
Net profit /(loss) before taxation 16,164 (20,652)
Finance income (401) (355)
Finance costs 9,616 11,031
Unrealised foreign exchange loss 4,939 2,544
Write down/Impairment of intangible assets 152 1,565
Depreciation of property, plant and equipment 98 105
Gain on disposal of available-for-sale investments (2,285) (806)
Gain on disposal of property, plant and equipment (5) -
Fair value loss on amount due to non-controlling interests - 320
Operating profit/(loss)before changes in working capital 28,278 (6,248)
Changes in working capital:
Decrease in inventories 55,303 7,424
Decrease/(Increase) in trade and other receivables and prepayments 6,103 (4,105)
Increase in trade and other payables 15,426 7,249
Cash generated from operations 105,110 4,320
Interest paid (9,616) (11,031)
Tax paid (318) (4,321)
Net cash from/ (used in) operating activities 95,176 (11,032)
Cash Flows from Investing Activities
Proceeds from disposal of available-for-sale investments (iii) 8,955 5,359
Proceeds from disposal of property, plant and equipment 5 -
Disposal of held-for-trading financial instrument - 3,291
Finance income received 401 355
Net cash from investing activities 9,361 9,005
* see note 29
CONSOLIDATED Statement OF Cash FlowS
2016 2015
Notes US$'000 US$'000
Restated*
Cash Flows from Financing Activities
Advances from non-controlling interests 2,819 1,067
Issuance of ordinary shares of subsidiaries to non-controlling interests (ii) 113 1,058
Issuance of management shares - - #
Repayment of loans and borrowings (104,880) (15,854)
Drawdown of loans and borrowings 1,571 16,046
Increase in pledged deposits placed in licensed banks (698) (1,537)
Net cash (used in)/generated from financing activities (101,075) 780
Net changes in cash and cash equivalents during the year 3,462 (1,247)
Effect of changes in exchange rates (155) (1,632)
Cash and cash equivalents at the beginning of the year (i) 13,332 16,211
Cash and cash equivalents at the end of the year (i) 16,639 13,332
(i) Cash and Cash Equivalents
Cash and cash equivalents included in the consolidated statement of cash flows comprise the following consolidated
statement of financial position amounts:
Cash and bank balances 14,858 9,143
Short term bank deposits 11,792 13,835
26,650 22,978
Less: Deposits pledged (10,011) (9,646)
Cash and cash equivalents 16,639 13,332
(ii) During the financial year, US$113,000 (2015: US$2,498,000) of ordinary shares of subsidiaries were issued to
non-controlling shareholders which was satisfied via cash consideration (2015: US$1,058,000 was satisfied via cash
consideration). In 2015, the remaining amount of US$1,440,000 was satisfied via capitalisation of amount due to
non-controlling interests.
(iii) During the financial year, the Group disposed the entire balance representing 9,784,653 (2015: 5,800,000) shares in
Nam Long for a consideration of US$9,848,000 (2015: US$5,359,000) of which US$8,955,000 was received during the year. The
balance consideration recoverable of US$ 893,000 was received on 23 February 2017.
# represents 2 management shares at US$0.05 each
* see note 29
The notes to the financial statements form an integral part of the financial statements.
Notes to the Financial Statements
1 General Information
The principal activities of the Group are development of upscale residential and hospitality projects, sale of development
land and operation of hotel, mall and hospital in Malaysia and Vietnam.
2 BASIS OF PREPARATION
2.1 Statement of compliance and going concern
The Group and the Company financial statements have been prepared in accordance with International Financial Reporting
Standards ("IFRS"), and IFRIC interpretations issued, and effective, or issued and early adopted, at the date of these
financial statements.
The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses
during the reporting period. Although these estimates are based on management's best knowledge of the amount, event or
actions, actual results ultimately may differ from those estimates. The Board has reviewed the accounting policies set out
below and considers them to be the most appropriate to the Group's business activities.
The financial statements have been prepared on the historical cost basis except for available-for-sale investments which
are measured at fair value and on the assumption that the Group and the Company are going concerns.
The Group has prepared and considered prospective financial information based on assumptions and events that may occur for
at least 12 months from the date of approval of the financial statements and the possible actions to be taken by the Group.
Prospective financial information includes the Group's profit and cash flow forecasts for the ongoing projects. In
preparing the cash flow forecasts, the Directors have considered the availability of cash, adequacy of bank loans and
medium term notes and also the refinancing of the medium term notes (as described in Notes 23 and 24) and the Directors
believe that the business will be able to realise its assets and discharge its liabilities in the normal course of business
for at least 12 months from the date of the approval of these financial statements.
The Directors expect to raise sufficient funds to finance the completion of the Group's existing project and the necessary
working capital via the disposal of its development lands in Vietnam and East Malaysia, its existing units of condominium
inventories in West Malaysia, and through the disposals of the CIH, FPSS and the HMS.
Should the planned disposals of the assets not materialise, or are delayed, the Directors expect to "roll-over" the medium
term notes which are due to expire in the next 12 months, given that the notes are "AAA" rated (a highly sought after
investment in Malaysia) and secured by two completed inventories of the Group with carrying amount of US$74.12 million as
at 31 December 2016. Included in the terms of the medium term notes programme is an option for the Group to refinance the
notes, as and when they expire. This option to refinance is available until 2021.
The Group also has significant borrowings in Vietnam secured by the CIH and development lands. The Directors expect to
repay the short term portion of the borrowings via sale of land in Vietnam. The remaining scheduled installments are due
only in 2019 and 2020.
The forecasts also incorporate current payables, committed expenditure and other future expected expenditure, along with
sales of all completed inventories and disposal of all development lands.
When the Company was launched in 2007 the Board considered it desirable that Shareholders should have an opportunity to
review the future of the Company at appropriate intervals. Accordingly, and as required under the Company's Articles, at
the 2015 AGM the Company proposed an ordinary resolution for it to cease trading (the "Discontinuation Resolution").
At an extraordinary general meeting of the Company held on 22 June 2015, Shareholders voted in favour of the Board's
proposals to amend the Company's investment policy to enable a realisation of the Company's assets in a controlled, orderly
and timely manner, with the objective of achieving a balance between periodically returning cash to Shareholders and
maximising the realisation value of the Company's investments. Shareholders also supported the Board's recommendation to
vote against the Discontinuation Resolution proposed at the 2015 AGM, in order to allow a policy of orderly realisation of
the Company's assets over a period of up to three years in order to maximise the value of the Company's assets and returns
to Shareholders, both up to and upon the eventual liquidation of the Company.
To the extent that the Company has not disposed of all of its assets by the time of the AGM in 2018, in accordance with the
Articles, Shareholders will be provided with an opportunity to review the future of the Company, which would include the
option for Shareholders to vote for the continuation of the Company.
The directors have considered the appropriateness of preparing the accounts on a going concern basis in light of the
decision to realise the Group's investments in an orderly manner. There is no certainty over the timeframe over which the
investments will be realised. The directors note that other viable alternative strategies to a wind-down remain available
and they will continue to evaluate whether to propose continuation of the current divestment investment policy or a change
to an alternative strategy. Accordingly, the financial statements have been prepared on the going concern basis.
The Group and the Company have not applied the following new/revised accounting standards that have been issued by
International Accounting Standards Board but are not yet effective.
New/Revised International Financial Reporting Standards Issued/Revised Effective Date
IFRS 9 Financial Instruments Finalised version, incorporating requirements for classification and measurement, impairment, general hedge accounting and derecognition July 2014 Effective for annual periods beginning on or after 1 January 2018
IFRS 10 Consolidated Financial Statements Amendments regarding the sale or contribution of assets between an investor and its associate or joint venture December 2015 Deferred indefinitely
IFRS 15 Revenue from Contracts with Customers IASB defers effective date to annual periods beginning on or after 1 January 2018 April 2016 Effective for annual periods beginning on or after 1 January 2018
IFRS 16 Leases Original Issue January 2016 Effective for annual periods beginning on or after 1 January 2019
IAS 7 Statement of Cash Flows Amendments resulting from the disclosure initiative January 2016 Effective for annual periods beginning on or after 1 January 2017
IAS 12 Income Taxes Amendments regarding the recognition of deferred tax assets for unrealised losses January 2016 Effective for annual periods beginning on or after 1 January 2017
The Directors anticipate that the adoption of the above standards, amendments and interpretations in future periods will
have no material impact on the financial information of the Group or Company except as mentioned below.
(a) IFRS 9, Financial instruments
IFRS 9, which becomes mandatory for the Group's 2018 Consolidation Financial Statements, could change the classification
and measurement of financial assets. The Directors are currently determining the impact of IFRS 9.
(b) IFRS 15, Revenue from contracts with customers
IFRS 15 replaces the guidance in IFRS 11, Construction Contracts, IFRS 18, Revenue, IC Interpretation 13, Customer Loyalty
Programmes, IC Interpretation 15, Agreements for Construction of Real Estate, IC Interpretation 18, Transfer of Assets from
Customers and IC Interpretation 131, Revenue - Barter Transactions Involving Advertising Services. The Directors are
currently determining the impact of IFRS 15.
(c) IFRS 16, Leases
IFRS 16 replaces, the guidance in IAS 17, Leases, IC Interpretation 4, Determining whether an arrangement contains a Lease,
IC interpretation ILS, Operating Leases-Incentive and IC interpretation 127, Evaluating the Substance of Transactions
Involving The Legal Form of a Lease. The Directors are currently determining the impact of IFRS 16.
3 revenue AND SEGmeNTAL information
The gross revenue represents the sales value of development properties where the effective control of ownership of the
properties is transferred to the purchasers when the completion certificate or occupancy permit has been issued.
The Company is an investment holding company and has no operating revenue. The Group's operating revenue for the year was
mainly attributable to the sale of completed units in Malaysia and land held for property development in Vietnam.
3.1 Revenue recognised during the year as follows:
Group
2016 2015
US$'000 US$'000
Restated
Sale of land held for property development 411 8,227
Sale of completed units 112,124 22,096
112,535 30,323
3.2 Segmental Information
The Group's assets and business activities are managed by Ireka Development Management Sdn. Bhd. ("IDM") as the Development
Manager under a management agreement dated 27 March 2007.
Segmental information represents the level at which financial information is reported to the Executive Management of IDM,
being the chief operating decision maker as defined in IFRS 8. The Executive Management consists of the Chief Executive
Officer, the Chief Financial Officer, Chief Operating Officer and Chief Investment Officer of IDM. The management
determines the operating segments based on reports reviewed and used by the Executive Management for strategic decision
making and resource allocation. For management purposes, the Group is organised into project units.
The Group's reportable operating segments are as follows:
(i) Investment Holding Companies - investing activities;
(ii) Ireka Land Sdn. Bhd. - develops Tiffani ("Tiffani") by i-ZEN;
(iii)ICSD Ventures Sdn. Bhd. - owns and operates Harbour Mall Sandakan ("HMS") and Four Points by Sheraton Sandakan Hotel
("FPSS");
(iv) Amatir Resources Sdn. Bhd. - develops SENI Mont' Kiara ("SENI");
(v) Iringan Flora Sdn. Bhd. - owns and operates Aloft Kuala Lumpur Sentral Hotel ("AKLS");
(vi) Urban DNA Sdn. Bhd.- develops The RuMa Hotel and Residences("The Ruma");
(vii)Hoa Lam-Shangri-La Healthcare Group - master developer of International Healthcare Park ("IHP"); owns and operates the
City International Hospital ("CIH"); and
(viii)ASPL PLB-Nam Long Limited Liability Co - developer of Waterside Estates residential project.
Other non-reportable segments comprise the Group's development projects. None of these segments meets any of the
quantitative thresholds for determining reportable segments in 2016 and 2015.
Information regarding the operations of each reportable segment is included below. The Executive Management monitors the
operating results of each segment for the purpose of performance assessments and making decisions on resource allocation.
Performance is based on segment gross profit/(loss) and profit/(loss) before taxation, which the Executive Management
believes are the most relevant in evaluating the results relative to other entities in the industry. Segment assets
presented are inclusive of inter-segment balances and inter-segment pricing is determined on an arm's length basis.
The Group's revenue generating development projects are in Malaysia and Vietnam.
3.3 Analysis of the group's reportable operating segments are as follows:-
Operating Segments - ended 31 December 2016
Investment Holding Companies Ireka Land Sdn. Bhd. ICSD Ventures Sdn. Bhd. Amatir Resources Sdn. Bhd. Iringan Flora Sdn. Bhd. UrbanDNASdn. Bhd. Hoa Lam-Shangri-La Healthcare Group Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Segment profit/ (loss) before taxation (4,410) 135 (6,237) 515 37,223 (1,338) (9,359) 16,529
Included in the measure of segment profit/ (loss) are:
Revenue - 1,306 - 6,529 104,289 - 411 112,535
Revenue from hotel operations - - 3,435 - 8,762 - - 12,197
Revenue from mall operations - - 1,041 - - - - 1,041
Revenue from hospital operations - - - - - - 5,754 5,754
Impairment of inventory * - - (2,408) - - - - (2,408)
Write down of intangible assets - - - (79) - - (73) (152)
Marketing expenses - - - - - (193) - (193)
Expenses from hotel operations - - (3,763) - (5,719) - - (9,482)
Expenses from mall operations - - (1,399) - - - - (1,399)
Expenses from hospital operations - - - - - - (9,039) (9,039)
Depreciation of property, plant and equipment - - (6) - (3) - (89) (98)
Finance costs - - (2,992) - (1,957) - (4,363) (9,312)
Finance income 57 2 258 9 2 7 66 401
Segment assets 12,160 1,843 76,174 18,722 - 69,618 97,833 276,350
* The amount relates to impairment of FPSS as the recoverable amount, estimated based on its net realisable value, is below
its carrying amount (see note 17).
Reconciliation of reportable segment revenues, profit or loss, assets and liabilities and other material items
Profit or loss US$'000
Total profit for reportable segments 16,529
Other non-reportable segments (61)
Finance cost (304)
Consolidated profit before taxation 16,164
Operating Segments - ended 31 December 2015 (Restated)
Investment Holding Companies Ireka Land Sdn. Bhd. ICSD Ventures Sdn. Bhd. Amatir Resources Sdn. Bhd. Iringan Flora Sdn. Bhd. UrbanDNASdn. Bhd. Hoa Lam-Shangri-La Healthcare Group ASPL PLB Limited Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Segment profit/ (loss) before taxation (297) 79 (9,168) 4,156 1,621 (863) (16,090) (4) (20,566)
Included in the measure of segment profit/ (loss) are:
Revenue - 1,322 - 20,774 - - - 8,227 30,323
Revenue from hotel operations - - 3,701 - 18,314 - - - 22,015
Revenue from mall operations - - 1,033 - - - - - 1,033
Revenue from hospital operations - - - - - - 4,244 - 4,244
Impairment of inventory * - - (3,200) - - - - - (3,200)
Write down/impairment of intangible assets - - (1,397) (168) - - - - (1,565)
Marketing expenses - - - (57) - (231) - - (288)
Expenses from hotel operations - - (4,256) - (12,351) - - - (16,607)
Expenses from mall operations - - (1,401) - - - - - (1,401)
Expenses from hospital operations - - - - - - (11,110) - (11,110)
Depreciation of property, plant and equipment - - (7) - (7) - (90) - (104)
Finance costs - - (3,635) - (4,133) - (3,263) - (11,031)
Finance income 19 2 268 19 4 7 34 - 353
Segment assets 26,589 3,903 80,392 22,271 62,112 56,776 98,362 - 350,405
* The amount relates to impairment of FPSS as the recoverable amount, estimated based on its net realisable value, is below
its carrying amount (see note 17).
Reconciliation of reportable segment revenues, profit or loss, assets and liabilities and other material items
Profit or loss US$'000Restated
Total loss for reportable segments (20,566)
Other non-reportable segments (87)
Depreciation (1)
Finance income 2
Consolidated loss before taxation (20,652)
There are no additions to non-current assets other than financial instruments and deferred tax assets for the financial year ended 2016 and 2015 respectively.
2016US$'000 Revenue Depreciation Finance costs Finance income Segment assets
Total reportable segment 112,535 (98) (9,312) 401 276,350
Other non-reportable segments - - (304) - 18,030
Consolidated total 112,535 (98) (9,616) 401 294,380
2015US$'000 (Restated) Revenue Depreciation Finance costs Finance income Segment assets
Total reportable segment 30,323 (104) (11,031) 353 350,405
Other non-reportable segments - (1) - 2 18,568
Consolidated total 30,323 (105) (11,031) 355 368,973
There are no additions to non-current assets other than financial instruments and deferred tax assets for the financial year ended 2016 and 2015 respectively.
Geographical Information - ended 31 December 2016
Malaysia Vietnam Consolidated
US$'000 US$'000 US$'000
Revenue 112,124 411 112,535
Non-current assets 2,359 7,088 9,447
Included in the revenue of the Group for the financial year ended 31 December 2016 is revenue from the sale of AKLS and a
plot of land (GD1) at the IHP.
For the year ended 31 December 2016, one customer exceeded 10% of the Group's total revenue
as follows:
US$'000 Segments
Prosper Group Holdings Limited 104,289 Iringan Flora
Sdn Bhd
Geographical Information - ended 31 December 2015 (Restated)
Malaysia Vietnam Consolidated
US$'000 US$'000 US$'000
Revenue 22,096 8,227 30,323
Non-current assets 2,172 17,176 19,348
For the year ended 31 December 2015, one customer exceeded 10% of the Group's total revenue as follows:
US$'000 Segments
Nam Long Investment Corporation("Nam Long") and Nam Khang Construction InvestmentDevelopment Limited Liability Company ("Nam Khang") 8,227 ASPL PLB-Nam Long Limited Liability Co.
4 SEASONALITY
The Group's business operations are not materially affected by seasonal factors for the period under review.
5 Cost of Sales
2016 2015
US$'000 US$'000
Restated
Direct costs attributable to: Completed units 74,796 16,847
Sales of Land held for property development (Note 17) 191 7,552
Impairment of inventory (Note 17) 2,408 3,200
Write down/Impairment of intangible assets (Note 15) 152 1,565
77,547 29,164
Included in the cost of sales of the Group for the financial year ended 31 December 2016 is cost of sales related to the
sale of AKLS and a plot of land (GD1) at the IHP (2015: Sale of Waterside Estates residential project).
6 Other Income
2016 2015
Group US$'000 US$'000
Restated
Dividend income 208 293
Gain on disposal of available-for-sale investments 2,285 806
Gain on disposal of property, plant and equipment 5 -
Rental income 211 115
Revenue from hotel operation (a) 12,197 22,015
Revenue from mall operation (b) 1,041 1,033
Revenue from hospital operation (c) 5,754 4,244
Sundry income 262 380
21,963 28,886
(a) Revenue from hotel operations
The revenue relates to the operations of two hotels - FPSS and AKLS, which are owned by subsidiaries of the Company, ICSD
Ventures Sdn. Bhd. and Iringan Flora Sdn. Bhd. respectively. The revenue earned from hotel operations is included in other
income in line with management's intention to dispose of the hotels.
(b) Revenue from mall operations
The revenue relates to the operation of HMS which is owned by a subsidiary of the Company, ICSD Ventures Sdn. Bhd. The
revenue earned from mall operations is included in other income in line with management's intention to dispose of the
mall.
(c) Revenue from hospital operations
The revenue relates to the operation of CIH which is owned by a subsidiary of the Company, City International Hospital
Company Limited. The revenue earned from hospital operations is included in other income in line with management's
intention to dispose of the hospital.
7 Foreign exchange LOSS
2016 2015
US$'000 US$'000
Foreign exchange loss comprises:
Realised foreign exchange loss (112) (371)
Unrealised foreign exchange loss (4,939) (2,544)
(5,051) (2,915)
8 Management Fees
2016 2015
US$'000 US$'000
Management fees 3,331 3,115
The management fees payable to the Development Manager are based on 2% per annum of the Group's net asset value calculated
on the last business day of June and December of each calendar year and payable quarterly in advance. The management fees
were allocated to the subsidiaries and the Company based on where the service was provided.
In addition to the annual management fee, the Development Manager is entitled to a performance fee calculated at 20% of the
out performance of the net asset value over a total compounded return hurdle rate of 10% per annum. No performance fee has
been paid or accrued during the year (2015: US$Nil).
9 Finance (Costs)/ INCOME
2016 2015
US$'000 US$'000
Interest income from banks 401 355
Agency fees (194) (83)
Arrangement fee (621) -
Bank guarantee commission (50) (49)
Interest on bank loans (4,313) (3,214)
Interest on financial liabilities at amortised cost (1) (2)
Interest on medium term notes (4,437) (7,683)
(9,215) (10,676)
10 net PROFIT /(Loss) BEFORE TAXATION
2016 2015
US$'000 US$'000
Net profit /(loss) before taxation is stated after charging/(crediting):
Auditor's remuneration
- current year 205 226
Directors' fees 297 317
Depreciation of property, plant and equipment 98 105
Expenses of hotel operations 9,482 16,607
Expenses of mall operations 1,399 1,401
Expenses of hospital operations 9,039 11,110
Fair value loss on amount due to non-controlling interests - 320
Unrealised foreign exchange loss 4,939 2,544
Realised foreign exchange loss 112 371
Write down/impairment of intangible assets 152 1,565
Gain on disposal of available-for-sale investments (2,285) (806)
Gain on disposal of property, plant and equipmentTax services (5)8 -15
11 TAXATION
2016 2015
US$'000 US$'000
Current tax- Current year 796 1,468
- Prior year 262 (227)
Deferred tax (credit) /expense- Current year (354) 678
- Prior year (18) (641)
Total tax expense for the year 686 1,278
The numerical reconciliation between the income tax expenses and the product of accounting results multiplied by the
applicable tax rate is computed as follows:
2016 2015
US$'000 US$'000
Net profit/(loss) before taxation 16,164 (20,652)
Income tax at a rate of 24% (2015:25%) 3,879 (5,163)
Add :
Tax effect of expenses not deductible in determining taxable profit 6,854 3,689
Current year losses and other tax benefits for which no deferred tax asset was recognised 2,059 2,449
Tax effect of different tax rates in subsidiaries 1,521 2,703
Less :
Tax effect of income not taxable in determining taxable profit (13,841) (1,532)
Under/(over) provision in respect of prior years 244 (868)
Total tax expense for the year 686 1,278
The applicable corporate tax rate in Malaysia is 24% (2015: 25%).
The Company is treated as a tax resident of Jersey for the purpose of Jersey tax laws and is subject to a tax rate of 0%.
The applicable corporate tax rates in Singapore and Vietnam are 17% and 20% (2015: 22%) respectively.
A subsidiary of the Group, CIH is granted preferential corporate tax rate of 10% for the results of the hospital
operations. The preferential income tax is given by the government of Vietnam due to the subsidiary's involvement in the
healthcare industry.
A Goods and Services Tax was introduced in Jersey in May 2008. The Company has been registered as an International Services
Entity so it does not have to charge or pay local GST. The cost for this registration is £200 per annum.
The tax effect of income not taxable in determining taxable profit are mainly relates to the net gain on disposal from the
sale of the AKLS.
The Directors intend to conduct the Group's affairs such that the central management and control is not exercised in the
United Kingdom and so that neither the Company nor any of its subsidiaries carries on any trade in the United Kingdom. The
Company and its subsidiaries will thus not be residents in the United Kingdom for taxation purposes. On this basis, they
will not be liable for United Kingdom taxation on their income and gains other than income derived from a United Kingdom
source.
12 OTHER COMPREHENSIVE EXPENSE
Items that are or may be reclassified subsequently to profit or loss, net of tax 2016US$'000 2015US$'000
Foreign currency translation differences for foreign operation
Loss arising during the year (3,522) (15,374)
Reclassification to profit or loss on disposal of subsidiary 988 (546)
(2,534) (15,920)
Fair value of available-for-sale investment
(Loss)/Gain arising during the year (233) 2,680
Reclassification adjustments for gain on disposal included
in profit or loss (2,208) (490)
(2,441) 2,190
(4,975) (13,730)
13 EARNINGS /(LOSS) Per Share
Basic and diluted earnings /(loss) per ordinary share
The calculation of basic and diluted earnings/(loss) per ordinary share for the year ended 31 December 2016 was based on
the profit/(loss) attributable to equity holders of the parent and a weighted average number of ordinary shares
outstanding, calculated as below:
2016US$'000 2015US$'000
Profit/(loss) attributable to equity holders of the parent 18,856 (15,784)
Weighted average number of shares 212,025 212,025
Profit/(loss) for the year Basic and diluted (US cents) 8.89 (7.44)
14 Available-for-Sale Investments
The available-for-sale investments represent the investment in shares of Nam Long Investment Corporation ("Nam Long") which the Group acquired over four tranches in 2008 and 2009.
2016 Quoted SharesUS$'000
1 January - fair value 9,917
Disposal (7,562)
Exchange adjustments 86
Recognised in other comprehensive expense (233)
Reclassified from equity to profit or loss (2,208)
At 31 December - fair value -
2015 Quoted SharesUS$'000
1 January - fair value 12,822
Disposal (4,553)
Exchange adjustments (542)
Recognised in other comprehensive income 2,680
Reclassified from equity to profit or loss (490)
At 31 December - fair value 9,917
During the financial year, the Group disposed of the entire balance representing 9,784,653 (2015: 5,800,000) numbers of
shares in Nam Long for a consideration of US$9,850,945 (2015: US$5,359,000) at an average market price of US$1.01 (2015:
US$0.92) per share. The Group recognised a gain on disposal of US$ 2,285,000 during the year (2015: US$806,000).
15 Intangible Assets
Licence Contracts and Related Relationships Goodwill Total
Group US$'000 US$'000 US$'000
Cost
At 1 January 2015/ 31 December 2015 / 31 December 2016 10,695 6,479 17,174
Accumulated impairment losses
At 1 January 2015 4,276 4,100 8,376
Impairment - 1,397 1,397
Write down - 168 168
At 31 December 2015 / 1 January 2016 4,276 5,665 9,941
Write down 73 79 152
At 31 December 2016 4,349 5,744 10,093
Carrying amounts
At 31 December 2015 6,419 814 7,233
At 31 December 2016 6,346 735 7,081
The licence contracts and related relationships represent the land use rights ("LUR") for the Group's land in Vietnam. LUR
represents the rights to develop the IHP within a lease period ending on 9 July 2077. In 2016, the Group sold a selected
plot of its undeveloped land in the IHP Lot, GD1 to third party purchasers.
For the purpose of impairment testing, goodwill and licence contracts and related relationships are allocated to the
Group's operating divisions which represent the lowest level within the Group at which the goodwill and licence contracts
and related relationships are monitored for internal management purposes.
The aggregate carrying amounts of intangible assets allocated to each unit are as follows:
2016US$'000 2015US$'000
Licence contracts and related relationships
International Healthcare Park 6,346 6,419
Goodwill
SENI Mont' Kiara 185 264
Sandakan Harbour Square 550 550
735 814
The recoverable amount of licence contracts and related relationships has been tested based on the net realisable value of
the Land Use Rights ("LUR") owned by the subsidiaries. The key assumption used is the expected market value of the LUR. The
Group believes that any reasonably possible changes in the above key assumptions applied is not likely to materially cause
the recoverable amount to be lower than its carrying amounts.
The recoverable amount of goodwill has been tested by reference to underlying profitability of the ongoing operations of
the developments using discounted cash flow projections (Refer Note 17).
In the previous financial year, impairment losses of US$1,397,000 in relation to the FPSS, have been recognised as the
recoverable amount of the cash generating unit, estimated based on net realisable value, is below its carrying amount.
Intangible assets of US$79,000 (2015: US$168,000) and US$73,000 (2015: US$Nil) in relation to SENI and IHP projects
respectively were written down as certain components from the developments were sold during the year.
16 Deferred Tax Assets
2016US$'000 2015US$'000
At 1 January 1,337 1,683
Exchange adjustments (86) (309)
Deferred tax credit relating to origination and reversal of temporary differences during the year 372 (37)
At 31 December 1,623 1,337
The deferred tax assets comprise:
2016US$'000 2015US$'000
Taxable temporary differences between accounting profit and taxable profit of property development units sold 1,623 1,337
At 31 December 1,623 1,337
Deferred tax assets have not been recognised in respect of unused tax losses of US$65,440,000 (2015: US$55,000,000) and
other tax benefits which includes temporary differences between net carrying amount and tax written down value of property,
plant and
- More to follow, for following part double click ID:nRSa4683DcRecent news on Aseana Properties
See all newsREG - Aseana Prop Ltd - Extension of Medium Term Notes Repayment Date
AnnouncementREG - Aseana Prop Ltd - Result of AGM and GM
AnnouncementREG - Official List Aseana Prop Ltd - Restoration - Aseana Properties Limited
AnnouncementREG - Aseana Prop Ltd - Lifting of Suspension
AnnouncementREG - Aseana Prop Ltd - Posting of 2024 Annual Report, Notice of AGM & GM
Announcement