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REG - Worldsec Ld - Annual Financial Report 2015 <Origin Href="QuoteRef">WSL.L</Origin> - Part 2

- Part 2: For the preceding part double click  ID:nRSc9102Wa 

                                                                                          
 Total comprehensive income attributable to:                                                                                                                                              
 Owners of the Company                                                                                                           (666)                                    (481)           
                                                                                                                                                                                          
 Loss per share - basic and diluted                                                                                       12     US (1.14)  cent                          US (0.84) cent  
 
 
The accompanying notes form an integral part of these consolidated financial
statements. 
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
 
AT 31 DECEMBER 2015 
 
                                        Notes  2015       2014     
                                               US$'000    US$'000  
 Non-current assets                                                
 Property, plant and equipment          13     44         67       
 Interest in a joint venture            14     137        209      
 Available-for-sale financial assets    15     1,125      800      
                                               1,306      1,076    
                                                                   
 Current assets                                                    
 Other receivables                             -          8        
 Deposits                                      21         21       
 Amount due from a joint venture        14     257        257      
 Cash and cash equivalents              17     1,988      2,769    
                                               2,266      3,055    
                                                                   
 Current liabilities                                               
 Other payables and accruals            18     441        368      
                                                                   
 Net current assets                            1,825      2,687    
                                                                   
 Net assets                                    3,131      3,763    
                                                                   
 Capital and reserves                                              
 Share capital                          19     57         57       
 Reserves                               20     3,074      3,706    
                                                                   
 Total equity                                  3,131      3,763    
 
 
The consolidated financial statements on pages 17 to 52 were approved and
authorised for issue by the Board of Directors on 29 April 2016 and signed on
its behalf by: 
 
                                                                  
 Alastair Gunn-Forbes Director    Henry Ying Chew CheongDirector  
 
 
The accompanying notes form an integral part of these consolidated financial
statements. 
 
CONSOLIDATED STATEMENT OF changes in equity 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
                                                                       Equity attributable to owners of the Company    
                                                                                                                                                 Foreign                                               
                                                                                                                       Contri-      Share        currency                                              
                                                          Share        Share                                           buted        option       translation    Special      Accumulated               
                                                          capital      premium                                         surplus      reserve      reserve        reserve      losses         Total      
                                                          US$'000      US$'000                                         US$'000      US$'000      US$'000        US$'000      US$'000        US$'000    
                                                          (note 19)    (note 20)                                       (note 20)    (note 20)    (note 20)      (note 20)    (note 20)                 
                                                                                                                                                                                                       
 Balance at 1 January 2014                                57           3,837                                           9,646        -            (2)            625          (9,919)        4,244      
                                                                                                                                                                                                       
 Loss for the year                                        -            -                                               -            -            -              -            (475)          (475)      
                                                                                                                                                                                                       
 Other comprehensive income for the year                                                                                                                                                               
 Exchange differences on translating foreign operations   -            -                                               -            -            (6)            -            -              (6)        
 Total comprehensive  income for the year                 -            -                                               -            -            (6)            -            (475)          (481)      
                                                                                                                                                                                                       
 Balance at 31 December 2014 and 1 January 2015           57           3,837                                           9,646        -            (8)            625          (10,394)       3,763      
 Loss for the year                                        -            -                                               -            -            -              -            (644)          (644)      
                                                                                                                                                                                                       
 Other comprehensive income for the year                                                                                                                                                               
 Exchange differences on translating foreign  operations  -            -                                               -            -            (3)            -            -              (3)        
 Share of other comprehensive income of a joint venture   -            -                                               -            -            (19)           -            -              (19)       
 Total comprehensive  income for the year                 -            -                                               -            -            (22)           -            (644)          (666)      
 Recognition of share-based payments                      -            -                                               -            34           -              -            -              34         
                                                                                                                                                                                                       
 Balance at 31 December 2015                              57           3,837                                           9,646        34           (30)           625          (11,038)       3,131      
                                                                                                                                                                                                           
 
 
The accompanying notes form an integral part of these consolidated financial
statements. 
 
CONSOLIDATED STATEMENT OF CASH FLOWS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
                                                                                         Year ended 31 December  
                                                                                         2015                         2014     
                                                                                         US$'000                      US$'000  
                                                                                         
 Cash flows from operating activities                                                    
 Loss for the year                                              (644)           (475)    
 Adjustments for:                                                                        
 Depreciation of property, plant and equipment                  23              2        
 Share of losses of a joint venture                             53              48       
 Share-based payment expenses                                   34              -        
                                                                                
 Operating loss before working capital changes                  (534)           (425)    
 Decrease/(increase) in other receivables                       8               (8)      
 Increase in deposits                                           -               (21)     
 Increase/(decrease) in other payables and accruals             73              (90)     
                                                                                
 Net cash used inoperating activities                           (453)           (544)    
                                                                                         
 Cash flows from investing activities                                                    
 Acquisition of property, plant and equipment                   -               (69)     
 Acquisition of a joint venture                                 -               (257)    
 Purchase of available-for-sale financial assets                (325)           (800)    
 Advance to a joint venture                                     -               (257)    
                                                                                
 Net cash used ininvesting activities                    (325)         (1,383)  
                                                                                                                      
 Net decrease in cash and cash equivalents                      (778)           (1,927)  
                                                                                                                      
 Cash and cash equivalents at the beginning of the year         2,769           4,702    
 Effects of exchange rate changes                                               (3)                              (6)  
                                                                                                                      
 Cash and cash equivalents at the end of the year               1,988           2,769    
                                                                                                                                   
 
 
The accompanying notes form an integral part of these consolidated financial
statements. 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
1.      GENERAL INFORMATION 
 
Worldsec Limited (the "Company") is a public listed company incorporated in
Bermuda and its shares are listed on the Main Market of the London Stock
Exchange. The address of the registered office of the Company is Canon's
Court, 22 Victoria Street, Hamilton HM12, Bermuda. Its principal place of
business address is Unit 607, 6th Floor, FWD Financial Centre, 308 Des Voeux
Road Central, Sheung Wan, Hong Kong. 
 
The principal activity of the Company is investment holding. The principal
activities of the Company's subsidiaries are set out in note 16 to the
consolidated financial statements. 
 
The functional currency of the Company is Hong Kong Dollars ("HK$"). The
consolidated financial statements of the Company and its subsidiaries
(collectively referred to as the "Group") are presented in United States
Dollars ("US$" or "USD"). 
 
The consolidated financial statements have been prepared in accordance with
all applicable International Financial Reporting Standards ("IFRS"),
International Accounting Standards ("IAS")  and  Interpretations adopted by
the European Union ("EU") (collectively  referred  to  as  the  "IFRSs"). 
 
2.      APPLICATION OF NEW AND REVISED IFRSs 
 
2.1    New and revised IFRSs applied with no material effect on the
consolidated financial statements 
 
The following new and revised IFRSs have been applied by the Group in the
current year and have affected the presentation and disclosures set out in
these consolidated financial statements. The application of these new and
revised IFRSs has not had any material impact on the amounts reported for the
current and prior years. 
 
 IFRSs (Amendments)  Annual Improvements 2011-2013 Cycle  
 
 
The application of the above new and revised IFRSs in the current year had no
material impact on the Group's financial performance and financial position
for the current and prior years and/or on the disclosures set out in these
consolidated financial statements. 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
2.      APPLICATION OF NEW AND REVISED IFRSs (CONTINUED) 
 
2.2    New and revised IFRSs in issue but not yet effective 
 
The Group has not applied the following new and revised IFRSs that have been
issued but are not yet effective: 
 
 IFRSs (Amendments)               Annual Improvements 2010-2012 Cycle1                                   
 IFRSs (Amendments)               Annual Improvements 2012-2014 Cycle2                                   
 Amendments to IAS 1              Disclosure Initiative2                                                 
 Amendments to IAS 16 and IAS 38  Clarification of Acceptable Methods of Depreciation and Amortisation2  
 Amendments to IAS 19             Defined Benefit Plans: Employee Contributions1                         
 Amendments to IAS 27             Equity Method in Separate Financial Statements2                        
 Amendments to IFRS 11            Accounting for Acquisitions of Interests in Joint Operations2          
 
 
 1  Effective in the EU for annual periods beginning on or after 1 February 2015  
 2  Effective in the EU for annual periods beginning on or after 1 January 2016   
 
 
Annual Improvements 2010-2012 Cycle and 2012-2014 Cycle 
 
The amendments issued under the annual improvements process make small,
non-urgent changes to a number of standards where they are currently unclear. 
 
Amendments to IAS 1 - Disclosure Initiative 
 
The amendments to IAS 1 are designed to further encourage companies to apply
professional judgement in determining what information to disclose in their
financial statements. For example, the amendments make clear that materiality
applies to the whole of financial statements and that the inclusion of
immaterial information can inhibit the usefulness of financial disclosures,
and the amendments clarify that companies should use professional judgement in
determining where and in what order information is presented in the financial
disclosures. 
 
Amendments to IAS 16 and IAS 38 - Clarification of Acceptable Methods of
Depreciation and Amortisation 
 
The amendments to IAS 16 prohibit the use of a revenue-based depreciation
method for items of property, plant and equipment.  The amendments to IAS 38
introduce a rebuttable presumption that amortisation based on revenue is not
appropriate for intangible assets.  The presumption can be rebutted if either
the intangible asset is expressed as a measure of revenue or revenue and the
consumption of the economic benefits of the intangible asset are highly
correlated. 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
2.      APPLICATION OF NEW AND REVISED IFRSs (CONTINUED) 
 
2.2    New and revised IFRSs in issue but not yet effective (Contiuned) 
 
Amendments to IAS 19 - Defined Benefit Plans: Employee Contributions 
 
The amendments to IAS 19 clarify how an entity should account for
contributions made by employees or third parties to defined benefit plans,
based on whether those contributions are dependent on the number of years of
service provided by the employee. 
 
For contributions that are independent of the number of years of service, the
entity may either recognise the contributions as a reduction in the service
cost in the period in which the related service is rendered, or to attribute
them to the employees' periods of service using the projected unit credit
method; whereas for contributions that are dependent on the number of years of
service, the entity is required to attribute them to the employees' periods of
service. 
 
Amendments to IAS 27 - Equity Method in Separate Financial Statements 
 
The amendments to IAS 27 allow an entity to apply the equity method in
accounting for its investments in subsidiaries, joint ventures and associates
in its separate financial statements. 
 
Amendments to IFRS 11- Accounting for Acquisitions of Interests in Joint
Operations 
 
The amendments to IFRS 11 require an entity to apply all of the principles of
IFRS 3 Business Combinations when it acquires an interest in a joint operation
that constitutes a business as defined in that standard. 
 
The principles of IFRS 3 are also applied upon the formation of a joint
operation if an existing business as defined in that standard is contributed
by at least one of the parties. 
 
The Group has already commenced an assessment of the impact of adopting the
above standards and amendments to existing standards to the Group. The Group
is not yet in a position to state whether these new pronouncements will result
in substantial changes to the accounting policies and consolidated financial
statements of the Group. 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
3.      SIGNIFICANT ACCOUNTING POLICIES 
 
Statement of compliance 
 
The consolidated financial statements of the Group have been prepared in
accordance with all applicable IFRSs issued by the International Accounting
Standards Board as adopted by the EU. 
 
Basis of preparation 
 
The consolidated financial statements have been prepared on a going concern
basis using the historical cost convention. 
 
Basis of consolidation 
 
The consolidated financial statements comprise the financial statements of the
Company and its subsidiaries. Inter-company transactions and balances between
group companies together with unrealised profits are eliminated in full in
preparing the consolidated financial statements. Unrealised losses are also
eliminated unless the transaction provides evidence of impairment on the asset
transferred, in which case the loss is recognised in profit or loss. 
 
Subsidiaries 
 
A subsidiary is an investee over which the Company is able to exercise
control. The Company controls an investee if all three of the following
elements are present: (1) power over the investee, (2) exposure, or rights, to
variable returns from the investee, and (3) the ability to use its power to
affect those variable returns. Control is reassessed whenever facts and
circumstances indicate that there may be a change in any of these elements of
control. 
 
Joint arrangements 
 
The Group is a party to a joint arrangement where there is a contractual
arrangement that confers joint control over the relevant activities of the
arrangement to the Group and at least one other party. Joint control is
assessed under the same principles as control over subsidiaries. 
 
The Group classifies its interests in joint arrangements as either: 
 
-      Joint ventures: where the Group has rights to only the net assets of
the joint arrangement; or 
 
-      Joint operations: where the Group has both the rights to assets and
obligations for the liabilities of the joint arrangement. 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
3.      SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 
 
Joint arrangements (Continued) 
 
In assessing the classification of interests in joint arrangements, the Group
considers: 
 
-      The structure of the joint arrangement; 
 
-      The legal form of the joint arrangement structured through a separate
vehicle; 
 
-      The contractual terms of the joint arrangement agreement; and 
 
-      Any other facts and circumstances (including any other contractual
arrangements). 
 
Joint ventures are accounted for using the equity method whereby they are
initially recognised at cost and thereafter, their carrying amount are
adjusted for the Group's share of the post-acquisition change in the joint
ventures' net assets except that losses in excess of the Group's interest in
the joint venture are not recognised unless there is a legal and constructive
obligation to make good those losses. 
 
Profits and losses arising on transactions between the Group and its joint
ventures are recognised only to the extent of unrelated investors' interests
in the joint ventures.  The investors' share in the joint venture's profits
and losses resulting from these transactions is eliminated against the
carrying value of the joint venture. 
 
Any premium paid for an investment in a joint venture above the fair value of
the Group's share of the identifiable assets, liabilities and contingent
liabilities acquired is capitalised and included in the carrying amount of the
investment in the joint venture. Where there is objective evidence that the
investment in a joint venture has been impaired the carrying amount of the
investment is tested for impairment in the same way as other non-financial
assets. 
 
The Group accounts for its interests in joint operations by recognising its
share of assets, liabilities, revenues and expenses in accordance with its
contractually conferred rights and obligations. 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
3.      SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 
 
Property, plant and equipment 
 
Property, plant and equipment are stated at cost less accumulated depreciation
and accumulated impairment losses. The cost of property, plant and equipment
includes their purchase price and the costs directly attributable to the
acquisition of the items. 
 
Subsequent costs are included in the asset's carrying amount or recognised as
a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Group and the cost
of the item can be measured reliably. The carrying amount of the replaced part
is derecognised. All other repairs and maintenance are recognised as an
expense in profit or loss during the financial period in which they are
incurred. 
 
Property, plant and equipment are depreciated so as to write off their cost
net of expected residual value over their estimated useful lives on a
straight-line basis. The useful lives, residual value and depreciation method
are reviewed, and adjusted if appropriate, at the end of each reporting
period. The useful lives are as follows: 
 
Leasehold improvements                                                        
                  over the lease terms 
 
An asset is written down immediately to its recoverable amount if its carrying
amount is higher than the asset's estimated recoverable amount. 
 
The gain or loss on disposal of an item of property, plant and equipment is
the difference between the net sale proceeds and its carrying amount, and is
recognised in profit or loss on disposal. 
 
Leasing 
 
Leases are classified as finance leases whenever the terms of the lease
transfer substantially all the risks and rewards of ownership to the lessee.
All other leases are classified as operating leases. 
 
The Group as lessee 
 
The total rentals payable under the operating leases are recognised in profit
or loss on a straight-line basis over the lease term. Lease incentives
received are recognised as an integrated part of the total rental expense,
over the term of the lease. 
 
Revenue recognition 
 
Dividend income is recognised when the right to receive payment is
established. 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
3.      SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 
 
Foreign currencies 
 
Transactions entered into by the group entities in currencies other than the
currency of the primary economic environment in which they operate are
recorded at the rates ruling when the transactions occur. Foreign currency
monetary assets and liabilities are translated at the rates ruling at the end
of reporting period.  Non-monetary items that are measured in terms of
historical cost in a foreign currency are not retranslated. 
 
Exchange differences arising on the settlement of monetary items, and on the
translation of monetary items, are recognised in profit or loss in the period
in which they arise. 
 
On consolidation, income and expense items of foreign operations are
translated into the presentation currency of the Group (i.e. US$) at the
average exchange rates for the year, unless exchange rates fluctuate
significantly during the period, in which case, the rates approximating to
those ruling when the transactions took place are used.  All assets and
liabilities of foreign operations are translated at the rate ruling at the end
of reporting period.  Exchange differences arising, if any, are recognised in
other comprehensive income and accumulated in equity as foreign currency
translation reserve (attributed to minority interests as appropriate). 
Exchange differences recognised in profit or loss of group entities' separate
financial statements on the translation of long-term monetary items forming
part of the Group's net investment in the foreign operation concerned are
reclassified to other comprehensive income and accumulated in equity as
foreign currency translation reserve. 
 
On disposal of a foreign operation, the cumulative exchange differences
recognised in the foreign currency translation reserve relating to that
operation up to the date of disposal are reclassified to profit or loss as
part of the profit or loss on disposal. 
 
Goodwill and fair value adjustments on identifiable assets acquired arising on
an acquisition of a foreign operation on or after 1 January 2005 are treated
as assets and liabilities of that foreign operation and translated at the rate
of exchange prevailing at the end of reporting period. Exchange differences
arising are recognised in the foreign currency translation reserve. 
 
Share-based payments 
 
The Group operates equity-settled share-based compensation plans and the
options are awarded to employees and directors providing services to the
Group. 
 
All services received in exchange for the grant of any share-based
compensation are measured at their fair values. These are indirectly
determined by reference to the equity instruments awarded. Their value is
appraised at the grant date and excludes the impact of any non-market vesting
conditions. 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
3.      SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 
 
Share-based payments (Continued) 
 
All share-based compensation is recognised as an expense in profit or loss
over the vesting period if vesting conditions apply, or recognised as an
expense in full at the grant date when the equity instruments granted vest
immediately unless the compensation qualifies for recognition as an asset,
with a corresponding increase in the share option reserve in equity. If
vesting conditions apply, the expense is recognised over the vesting period,
based on the best available estimate of the number of equity instruments
expected to vest. Non-market vesting conditions are included in assumptions
about the number of equity instruments that are expected to vest. Estimates
are subsequently revised, if there is any indication that the number of equity
instruments expected to vest differs from previous estimates. 
 
At the time when the share options are exercised, the amount previously
recognised in share option reserve will be transferred to share premium. After
the vesting date, when the vested share options are forfeited or are still not
exercised at the expiry date, the amount previously recognised in share option
reserve will be transferred to retained profits. 
 
Taxation 
 
Income tax expense represents the sum of the tax currently payable and
deferred tax. 
 
Current tax 
 
The tax currently payable is based on taxable profit for the year. Taxable
profit differs from 'loss before tax' as reported in the consolidated
statement of profit or loss and other comprehensive income because of items of
income or expense that are taxable or deductible in other years and items that
are never taxable or deductible. The Group's current tax is calculated using
tax rates that have been enacted or substantively enacted by the end of the
reporting period. 
 
Deferred tax 
 
Deferred tax is recognised on temporary differences between the carrying
amounts of assets and liabilities in the consolidated financial statements and
the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognised for all taxable temporary
differences. Deferred tax assets are generally recognised for all deductible
temporary differences to the extent that it is probable that taxable profits
will be available against which those deductible temporary differences can be
utilised. Such deferred tax assets and liabilities are not recognised if the
temporary difference arises from initial recognition (other than in a business
combination) of assets and liabilities in a transaction that affects neither
the taxable profit nor the accounting profit. In addition, deferred tax
liabilities are not recognised if the temporary difference arises from the
initial recognition of goodwill. 
 
The carrying amount of deferred tax assets is reviewed at the end of each
reporting period and reduced to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or part of the asset
to be recovered. 
 
Deferred tax assets and liabilities are measured at the tax rates that are
expected to apply in the period in which the liability is settled or the asset
realised, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
3.      SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 
 
Taxation (Continued) 
 
Deferred tax (Continued) 
 
The measurement of deferred tax liabilities and assets reflects the tax
consequences that would follow from the manner in which the Group expects, at
the end of the reporting period, to recover or settle the carrying amount of
its assets and liabilities. 
 
Provisions 
 
Provisions are recognised when the Group has a present obligation (legal or
constructive) as a result of a past event, it is probable that the Group will
be required to settle the obligation, and a reliable estimate can be made of
the amount of the obligation. 
 
The amount recognised as a provision is the best estimate of the consideration
required to settle the present obligation at the end of the reporting period,
taking into account the risks and uncertainties surrounding the obligation.
When a provision is measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present value of those cash
flows (where the effect of the time value of money is material). 
 
When some or all of the economic benefits required to settle a provision are
expected to be recovered from a third party, a receivable is recognised as an
asset if it is virtually certain that reimbursement will be received and the
amount of the receivable can be measured reliably. 
 
Cash and cash equivalents 
 
For the purposes of the consolidated statement of cash flows, cash and cash
equivalents included cash on hand and in banks. 
 
Financial instruments 
 
Financial assets and financial liabilities are recognised when a group entity
becomes a party to the contractual provisions of the instruments. 
 
Financial assets and financial liabilities are initially measured at fair
value. Transaction costs that are directly attributable to the acquisition or
issue of financial assets and financial liabilities (other than financial
assets and financial liabilities at fair value through profit or loss) are
added to or deducted from the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition. 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
3.      SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 
 
Financial instruments (Continued) 
 
Financial assets 
 
The Group classifies its financial assets at initial recognition, depending on
the purpose for which the asset was acquired.   Regular way purchases or sales
of financial assets are recognised and derecognised on a trade date basis.  A
regular way purchase or sale is a purchase or sale of a financial asset under
a contract whose terms require delivery of the asset within the time frame
established generally by regulation or convention in the marketplace
concerned. 
 
Loans and receivables 
 
Loans and receivables are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market. Loans and
receivables (including cash and bank balance) are measured at amortised cost
using the effective interest method, less any impairment. 
 
Interest income is recognised by applying the effective interest rate, except
for short-term receivables when the effect of discounting is immaterial. 
 
Available-for-sale financial assets 
 
These assets are non-derivative financial assets that are designated as
available-for-sale or are not included in other categories of financial
assets. When the fair value of unlisted equity securities cannot be reliably
measured because (a) the variability in the range of reasonable fair value
estimates is significant for that investment or (b) the probabilities of the
various estimates within the range cannot be reasonably assessed and used in
estimating fair value, such securities are stated at cost less any impairment
losses. 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
3.      SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 
 
Financial instruments (Continued) 
 
Impairment of financial assets 
 
The Group assesses, at the end of each reporting period, whether there is any
objective evidence that a financial asset is impaired. A financial asset is
impaired if there is objective evidence of impairment as a result of one or
more events that has occurred after the initial recognition of the asset and
that event has an impact on the estimated future cash flows of the financial
asset that can be reliably estimated. 
 
Evidence of impairment may include: 
 
•  significant financial difficulty of the debtor; 
 
•  a breach of contract, such as a default or delinquency in interest or
principal payments; 
 
•  granting concession to a debtor because of debtor's financial difficulty;
or 
 
•  it becoming probable that the debtor will enter bankruptcy or other
financial reorganisation. 
 
For loans and receivables 
 
An impairment loss is recognised in profit or loss when there is objective
evidence that the asset is impaired, and is measured as the difference between
the asset's carrying amount and the present value of the estimated future cash
flows discounted at the original effective interest rate. The carrying amount
of a financial asset is reduced through the use of an allowance account. When
any part of a financial asset is determined as uncollectible, it is written
off against the allowance account for the relevant financial asset. 
 
Impairment losses are reversed in subsequent periods when an increase in the
asset's recoverable amount can be related objectively to an event occurring
after the impairment was recognised, subject to a restriction that the
carrying amount of the asset at the date the impairment is reversed does not
exceed what the amortised cost would have been had the impairment not been
recognised. 
 
For available-for-sale financial assets 
 
For available-for-sale equity investments that are carried at cost, the amount
of impairment loss is measured as the difference between the carrying amount
of the asset and the present value of estimated future cash flows discounted
at the current market rate of return for a similar financial asset. Such
impairment loss shall not be reversed. 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
3.      SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 
 
Financial instruments (Continued) 
 
Derecognition of financial assets 
 
Financial assets are derecognised when the contractual rights to receive cash
flows from the assets expire, or the financial assets are transferred and the
Group has transferred substantially all the risks and rewards of ownership of
the financial assets. 
 
On derecognition of a financial asset, the difference between the asset's
carrying amount and the sum of the consideration received and receivable, for
available-for-sale investments, and the cumulative gain or loss that had been
recognised in other comprehensive income is reclassified to profit or loss. 
 
Financial liabilities and equity instruments 
 
Classification as debt or equity 
 
Debt and equity instruments issued by a group entity are classified as either
financial liabilities or as equity in accordance with the substance of the
contractual arrangements and the definitions of a financial liability and an
equity instrument. 
 
Equity instruments 
 
An equity instrument is any contract that evidences a residual interest in the
assets of an entity after deducting all of its liabilities. Equity instruments
issued by the Company are recognised at the proceeds received, net of direct
issue costs. 
 
Financial liabilities 
 
Financial liabilities (including other payables and accruals) are subsequently
measured at amortised cost using the effective interest method. 
 
The effective interest method is a method of calculating the amortised cost of
a financial liability and of allocating interest expense over the relevant
period. The effective interest rate is the rate that exactly discounts
estimated future cash payments (including all fees and points paid or received
that form an integral part of the effective interest rate, transaction costs
and other premiums or discounts) through the expected life of the financial
liability, or where appropriate a shorter period, to the net carrying amount
on initial recognition. 
 
Derecognition of financial liabilities 
 
The Group derecognises financial liabilities when, and only when, the Group's
obligations are discharged, cancelled or they expire. The difference between
the carrying amount of the financial liability derecognised and the
consideration paid and payable is recognised in profit or loss. 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
3.      SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 
 
Impairment of other assets 
 
At the end of each reporting period, the Group reviews the carrying amounts of
the following assets to determine whether there is any indication that those
assets have suffered an impairment loss or an impairment loss previously
recognised no longer exists or may have decreased: 
 
•  property, plant and equipment; and 
 
•  interest in joint venture 
 
If the recoverable amount (i.e. the greater of fair value less costs to
disposal and value in use) of an asset is estimated to be less than its
carrying amount, the carrying amount of the asset is reduced to its
recoverable amount. An impairment loss is recognised as an expense
immediately. 
 
Where an impairment loss subsequently reverses, the carrying amount of the
asset is increased to the revised estimate of its recoverable amount, but so
that the increased carrying amount does not exceed the carrying amount that
would have been determined had no impairment loss been recognised for the
asset in prior years. 
 
A reversal of an impairment loss is recognised in the consolidated statement
of profit or loss immediately. 
 
Related parties 
 
(a)     A person or a close member of that person's family is related to the
Group if that person: 
 
(i)   has control or joint control over the Group; 
 
(ii)   has significant influence over the Group; or 
 
(iii)  is a member of key management personnel of the Group or the Company's
parent. 
 
(b)     An entity is related to the Group if any of the following conditions
apply: 
 
(i)  The entity and the Group are members of the same group (which means that
each
   parent, subsidiary and fellow subsidiary is related to the others); 
 
(ii)  One entity is an associate or joint venture of the other entity (or an
associate or joint
    venture of a member of a group of which the other entity is a member); 
 
(iii)  Both entities are joint ventures of the same third party; 
 
(iv)  One entity is a joint venture of a third entity and the other entity is
an associate of the
    third entity; 
 
(v)  The entity is a post-employment benefit plan for the benefit of the
employees of the
    Group or an entity related to the Group; 
 
(vi)  The entity is controlled or jointly controlled by a person identified in
(a); or 
 
(vii)  A person identified in (a)(i) has significant influence over the entity
or is a member of
    key management personnel of the entity (or of a parent of the entity). 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
3.      SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 
 
Related parties (Continued) 
 
Close members of the family of a person are those family members who may be
expected to influence, or be influenced by, that person in their dealings with
the entity and include: 
 
(i)      that person's children and spouse or domestic partner; 
 
(ii)      children of that person's spouse or domestic partner; and 
 
(iii)     dependents of that person or that person's spouse or domestic
partner. 
 
Earnings per share 
 
Basic earnings per share are calculated by dividing the profit attributable to
owners of the Company by the weighted average number of ordinary shares in
issue during the year. 
 
4.      CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION
UNCERTAINTY 
 
In the application of the Group's accounting policies, which are described in
note 3, management is required to make judgements, estimates and assumptions
about the carrying amounts of assets and liabilities that are not readily
apparent from other sources. The estimates and underlying assumptions are
based on historical experience and other factors that are considered to be
relevant. Actual results may differ from these estimates. 
 
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and
future periods. 
 
Key sources of estimation uncertainty 
 
The key sources of estimation uncertainty that have a significant risk of
resulting in a material adjustment to the carrying amounts of assets and
liabilities within the next financial year are as follows: 
 
(i)      Depreciation 
 
The Group depreciates property, plant and equipment using the straight-line
method over the estimated useful lives, starting from the date on which the
assets are available for use. The estimated useful lives reflect the
directors' estimate of the periods that the Group intends to derive future
economic benefits from the use of the property, plant and equipment of the
Group. The carrying amount of property, plant and equipment is disclosed in
note 13. 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
4.      CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION
UNCERTAINTY (CONTINUED) 
 
(ii)      Impairment of receivables 
 
The Group maintains an allowance for estimated loss arising from the inability
of its debtors to make the required payments.  The Group makes its estimates
based on the ageing of its receivable balances, debtors' creditworthiness, and
historical write-off experience.  If the financial condition of its debtors
was to deteriorate so that the actual impairment loss might be higher than
expected, the Group would be required to revise the basis of making the
allowance and its future results would be affected. 
 
(iii)     Impairment of non-financial assets 
 
The Group assesses whether there are any indications of impairment for all
non-financial assets at each reporting date. Other non-financial assets are
tested for impairment when there are indications that the carrying amounts may
not be recoverable. 
 
(iv)     Impairment of available-for-sale financial assets 
 
The directors review available-for-sale investments at the end of each
reporting period to assess whether they are impaired. The Group records
impairment charges on available-for-sale equity investments when there is
objective evidence that an impairment indicator exists. The determination of
whether the impairment indicator exists requires judgement. In making this
judgement, management of the Group takes into account factors such as
significant changes with an adverse effect that has taken place in
technological, market, economic or legal environment in which the investee
operates, and that indicates that the cost of the investment in the equity
instrument may not be recovered. 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
5.      FINANCIAL instruments 
 
(a)  Categories of financial instruments 
 
                                                   2015       2014     
                                                   US$'000    US$'000  
 Financial assets                                                      
                                                                       
 Loans and receivables                             2,266      3,055    
 Available-for-sale financial assets               1,125      800      
                                                   3,391      3,855    
                                                                       
 Financial liabilities                                                 
                                                                       
 Financial liabilities measured at amortised cost  441        368      
 
 
(b)  Financial risk management objectives 
 
Management monitors and manages the financial risks relating to the operations
of the Group through internal risk reports which analyse exposures by degree
and magnitude of risks. These risks include market risks (including foreign
currency risk, interest rate risk and price risk), credit risk and liquidity
risk. The policies on how to mitigate these risks are set out below. The Group
does not enter into or trade derivative financial instruments for speculative
purposes. 
 
Market risks 
 
The Group's activities expose it primarily to the financial risks of changes
in foreign currency exchange rates, interest rates and price risk. 
 
There has been no change to the Group's exposure to market risks or the manner
in which these risks are managed and measured. 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
5.      FINANCIAL instruments (CONTINUED) 
 
(b)  Financial risk management objectives (Continued) 
 
Market risks (Continued) 
 
(i)      Foreign currency risk 
 
Certain financial assets and financial liabilities of the Group are
denominated in foreign currencies other than the functional currency of the
relevant group entities, which exposes the Group to foreign currency risk. The
Group currently does not have a foreign currency hedging policy. However,
management monitors foreign exchange exposure and will consider hedging
significant foreign currency exposure should the need arise. Under the Linked
Exchange Rate System in Hong Kong, HK$ is currently pegged to the USD within a
narrow range, the directors therefore consider that there are no significant
foreign exchange risk with respect to the USD. 
 
The currencies giving rise to this risk are primarily Euro ("EUR") and British
Pound Sterling ("GBP"). The carrying amounts of the Group's foreign currency
denominated monetary assets and monetary liabilities at the end of reporting
period were as follows: 
 
        Liabilities    Assets   
        2015           2014       2015       2014     
        US$'000        US$'000    US$'000    US$'000  
                                                      
   EUR  83             2          13         18       
   GBP  84             88         -          9        
 
 
The following table details the Group's sensitivity to a 10% (2014: 10%)
increase and decrease in USD against the relevant foreign currencies. 10% is
the sensitivity rate used when reporting foreign currency risk internally to
key management personnel and represents management's assessment of the
reasonably possible change in foreign exchange rates. The sensitivity analysis
includes only outstanding foreign currency denominated monetary items and
adjusts its translation as at year end for a 10% (2014: 10%) change in the
relevant foreign currencies rates. A positive number below indicates a
decrease in loss for the year where USD strengthens 10% (2014: 10%) against
the relevant foreign currency. For a 10% (2014: 10%) weakening of USD against
the relevant foreign currencies there would be an equal and opposite impact on
the loss for the year. 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
5.      FINANCIAL instruments (CONTINUED) 
 
(b)  Financial risk management objectives (Continued) 
 
Market risks (Continued) 
 
(i)      Foreign currency risk (Continued) 
 
                                                  2015          2014     
                                                  US$'000       US$'000  
                                                                         
 Change in post-tax loss for the year          
 EUR impact                                    7           (2)  
 GBP impact                                    8           8    
 
 
(ii)     Interest rate risk 
 
The Group's exposure to changes in interest rates is mainly attributable to
its bank deposits at variable interest rates. Bank deposits at variable rates
expose the Group to cash flow interest rate risk. 
 
The directors consider that the exposure to cash flow interest rate risk was
insignificant. Hence, no sensitivity analysis on the exposure to the Group's
cash flow interest rate risk is presented. 
 
(iii)    Price risk 
 
Price risk is the risk that the value of a financial instrument will fluctuate
as a result of changes in market prices (other than those arising from foreign
currency risk), whether caused by factors specific to an individual investment
or its issuer, or factors affecting all instruments. 
 
All of the Group's unquoted investments are held for long term strategic
purposes. Their performance is assessed at least annually against performance
of any similar listed entities, based on the limited information available to
the Group, together with an assessment of their relevance to the Group's long
term strategic plans. 
 
The directors consider that the exposure to price risk was insignificant.
Hence, no sensitivity analysis on the exposure to the Group's price risk is
presented. 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
5.      FINANCIAL instruments (CONTINUED) 
 
(b)  Financial risk management objectives (Continued) 
 
Credit risk 
 
The Group's maximum exposure to credit risk which could cause a financial loss
to the Group due to failure to discharge an obligation by the counterparties
arises from the carrying amount of the respective recognised financial assets
as stated in the consolidated statement of financial position. 
 
The credit risk on liquid funds is limited because the major counterparties
are banks with high credit ratings assigned by international credit-rating
agencies. As at 31 December 2015, approximately 98% (2014: 98%) of the bank
balances were deposited with a bank with a high credit rating. Other than
concentration of credit risk on liquid funds deposited with that bank, the
Group does not have any other significant concentration of credit risk. 
 
Liquidity risk 
 
Ultimate responsibility for liquidity risk management rests with the Board of
Directors, which has established an appropriate liquidity risk management
framework to meet the Group's short, medium and long-term funding and
liquidity management requirements. The Group manages liquidity risk by
maintaining adequate reserves, by regularly monitoring forecast and actual
cash flows and by matching the maturity profiles of financial assets and
liabilities. 
 
Liquidity table 
 
The following table details the Group's remaining contractual maturity for its
non-derivative financial liabilities with agreed repayment periods. The table
has been drawn up based on the undiscounted cash flows of financial
liabilities based on the earliest date on which the Group can be required to
pay. 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
5.      FINANCIAL instruments (CONTINUED) 
 
(b)  Financial risk management objectives (Continued) 
 
Liquidity table 
 
                                  On demand or      
                                  less than 1 year  
                                  2015                2014     
                                  US$'000             US$'000  
                                                               
 Other payables and accruals      441                 368      
                                                               
 
 
(c)  Fair value of financial instruments 
 
The directors consider that the carrying amounts of loans and receivables and
financial liabilities recognised in the consolidated financial statements
approximated their fair values. 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
6.      Capital risk management 
 
The Group's objective of managing capital is to safeguard the Group's ability
to continue as a going concern in order to provide returns for shareholders
and benefits for other stakeholders and to maintain an optimal capital
structure to reduce cost of capital. 
 
In order to maintain or adjust the capital structure, the Group may return
capital to shareholders, issue new shares or sell assets to reduce debts. 
 
The capital structure of the Group consists of equity attributable to owners
of the Company only, comprising share capital and reserves. 
 
7.      REVENUE 
 
The Group's revenue represents dividend income from available-for-sale
financial assets for the year.  An analysis of the Group's revenue from
principal activities is as follows: 
 
                                          Year ended 31December  
                                                                 2015       2014     
                                                                 US$'000    US$'000  
 Dividend income from available-for-sale                                             
 financial assets                                                96         8        
 
 
8.      SEGMENTInformation 
 
An operating segment is a component of the Group that is engaged in business
activities from which the Group may earn revenue and incur expenses, and is
identified on the basis of the internal management reporting information that
is provided to and regularly reviewed by the Group's chief operating decision
makers in order to allocate resources and assess performance of the segment.
For the years ended 31 December 2015 and 2014, the executive directors, who
were the chief operating decision makers for the purpose of resource
allocation and assessment of performance, have determined that the Group had
only one single business component / reportable segment as the Group was only
engaged in investment holding. The executive directors allocated resources and
assessed performance on an aggregated basis. Accordingly, no operating segment
is presented. 
 
The major operations and the revenue of the Group arise from Hong Kong. The
Board of Directors considers that most of the assets of the Group are located
in Hong Kong. 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 DECEMBER 2015 
 
9.      STAFF COSTS 
 
The aggregate staff costs (including directors' remuneration) of the Group
were as follows: 
 
                                                           Year ended 31 December  
                                                           2015                      2014     
                                                           US$'000                   US$'000  
                                                                                              
 Wages and salaries                                        188                       75       
 Contributions to pension and provident fund               3                         -        
 Share-based payment expenses (note 21)                    34                        -        
                                                           225                       75       
                                                                                              
 Compensation of key management personnel was as follows:  
                                                           Year ended 31 December  
                                                           2015                      2014     
                                                           US$'000                   US$'000  
                                                                                              
 Directors' fees                                           75                        75       
 Share-based payment expenses                              30                     

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