TIDMCHWI
RNS Number : 7167U
China Western Investments PLC
30 June 2009
China Western Investments plc
30 June 2009
For Immediate Release
China Western Investments plc ("the Company")
Final results for the year ended 31 December 2008
Chairman's Statement
Last year I reported that no satisfactory investment funding had been identified
to enable development of the Lanzhou and Tian Shui projects to progress. Despite
consideration of a number of areas I regret that no satisfactory avenue of
investment funds has been identified. We shall continue to assess all
possibilities to enable development, particularly of the Lanzhou property, to
progress.
However, we are pleased to report that the Group continues to receive the
support of some major shareholders who have made loans to support the position
of the Company. There are also guarantees in place to ensure that the cash flow
remains positive whilst the investment capital is sought. Interest on
shareholder loans is being accrued but not paid. Your Directors fees have been
provided but, as in past years, no fees have been drawn down.
The result for the year is impacted by the cost of finance which contributed
GBP1.17 million of the GBP1.55 million loss for the year.
It was anticipated that trading for the year would break even before finance
costs but, unfortunately, this was not the case. Property costs were high in
2008 which reduced the trading results. However, we are pleased to report that
we are enjoying the benefit of some long term new tenants which should improve
revenue.
Because of the global recessive nature of economies particularly in the latter
half of the year property values in China have also been impacted. The annual
valuation by Vigers has necessitated writing down the property value by a
relatively small amount of GBP50,000.
The reduction in the value of sterling has had an impact on the asset and
liability values so that an increase of GBP7.1million in net assets is shown due
to this sterling devaluation.
Profitability will not be achieved without investment in the property under
construction and the Group continues to examine all avenues of investment
opportunities to enable the development to take place. As previously reported no
satisfactory investment funding has been identified which satisfies the Group's
requirements but we continue to monitor all possible opportunities.
Michael A Shields
Chairman
29th June 2009
Enquiries:
+---------------------------------------+---------------------------------------+
| China Western Investments plc | Tel: +44 01539 723233 |
| Harry Jeffs | |
| | |
+---------------------------------------+---------------------------------------+
| Nominated Adviser, | Tel: +44 020 7408 4090 |
| Shore Capital, Pascal Keane | |
+---------------------------------------+---------------------------------------+
CHINA WESTERN INVESTMENTS PLC
31 December 2008
Group Income Statement
+-------------------------------------------+-------+---------------+---------------+
| | | Year ended 31 | Period ended |
| | | December 2008 | 31 December |
| | | | 2007 |
+-------------------------------------------+-------+---------------+---------------+
| | Note | GBP000 | GBP000 |
+-------------------------------------------+-------+---------------+---------------+
| Revenue | 2 | 1,240 | 540 |
+-------------------------------------------+-------+---------------+---------------+
| | | | |
+-------------------------------------------+-------+---------------+---------------+
| Cost of sales | | (162) | (150) |
+-------------------------------------------+-------+---------------+---------------+
| | | ------------- | ------------- |
+-------------------------------------------+-------+---------------+---------------+
| Gross profit | | 1,078 | 390 |
+-------------------------------------------+-------+---------------+---------------+
| | | | |
+-------------------------------------------+-------+---------------+---------------+
| Administrative expenses | | (1,406) | (117) |
+-------------------------------------------+-------+---------------+---------------+
| | | | |
+-------------------------------------------+-------+---------------+---------------+
| Finance costs | 5 | (1,173) | (1,164) |
+-------------------------------------------+-------+---------------+---------------+
| | | | |
+-------------------------------------------+-------+---------------+---------------+
| Deficit on property revaluation | | (50) | - |
+-------------------------------------------+-------+---------------+---------------+
| | | ------------- | ------------- |
+-------------------------------------------+-------+---------------+---------------+
| (Loss) before taxation | | (1,551) | (891) |
+-------------------------------------------+-------+---------------+---------------+
| | | | |
+-------------------------------------------+-------+---------------+---------------+
| Income tax expense | 7 | (39) | (30) |
+-------------------------------------------+-------+---------------+---------------+
| | | ------------- | ------------- |
+-------------------------------------------+-------+---------------+---------------+
| (Loss) for the financial year | | (1,590) | (921) |
+-------------------------------------------+-------+---------------+---------------+
| | | ------------- | ------------- |
+-------------------------------------------+-------+---------------+---------------+
| Attributable to parent company's equity | | (1,588) | (921) |
| shareholders | | | |
+-------------------------------------------+-------+---------------+---------------+
| | | | |
+-------------------------------------------+-------+---------------+---------------+
| Attributable to minority interests | | (2) | - |
+-------------------------------------------+-------+---------------+---------------+
| | | ------------- | ------------- |
+-------------------------------------------+-------+---------------+---------------+
| (Loss) for the financial year | | (1,590) | (921) |
+-------------------------------------------+-------+---------------+---------------+
| | | ------------- | ------------- |
+-------------------------------------------+-------+---------------+---------------+
| (Loss) per share | | | |
+-------------------------------------------+-------+---------------+---------------+
| Basic (p) | | (0.21) | (0.13) |
+-------------------------------------------+-------+---------------+---------------+
| Diluted (p) | | (0.21) | (0.13) |
+-------------------------------------------+-------+---------------+---------------+
The Company has taken advantage of the exemption in section 230 of the Companies
Act 1985 and not published its own Income Statement.
CHINA WESTERN INVESTMENTS PLC
31 December 2008
Group Statement of Changes in Equity
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| | Share | Share | Revaluation | Merger | Retained | Minority | Total |
| | capital | premium | reserve | reserve | earnings | Interests | GBP'000 |
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | |
| | | | | | | | |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| | | | | | | | |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| Balance as at 1 | 7,283 | 32,919 | 18,262 | 3 | (29,012) | 212 | 29,667 |
| January 2008 | | | | | | | |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| Exchange | - | - | - | - | 7,125 | - | 7,125 |
| differences on | | | | | | | |
| translating | | | | | | | |
| foreign | | | | | | | |
| operations | | | | | | | |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| | ------------- | ------------- | ------------- | ------------- | ------------- | ------------- | ------------- |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| Net income | - | - | - | - | 7,125 | - | 7.125 |
| recognised | | | | | | | |
| directly in | | | | | | | |
| equity | | | | | | | |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| Loss for the | - | - | - | - | (1,588) | (2) | (1,590) |
| period | | | | | | | |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| | ------------- | ------------- | ------------- | ------------- | ------------- | ------------- | ------------- |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| Total recognised | - | - | - | - | 5,537 | (2) | 5,535 |
| income and | | | | | | | |
| expense | | | | | | | |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| | ------------- | ------------- | ------------- | ------------- | ------------- | ------------- | ------------- |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| Balance at 31 | 7,283 | 32,919 | 18,262 | 3 | (23,475) | 210 | 35,202 |
| December 2008 | | | | | | | |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| | ------------- | ------------- | ------------- | ------------- | ------------- | ------------- | ------------- |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
CHINA WESTERN INVESTMENTS PLC
31 December 2008
Group Statement of Changes in Equity
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| | Share | Share | Revaluation | Merger | Retained | Minority | Total |
| | capital | premium | reserve | reserve | earnings | Interests | GBP'000 |
| | GBP'000 | GBP'000 | (restated) | GBP'000 | (restated) | GBP'000 | |
| | | | GBP'000 | | GBP'000 | | |
| | | | | | | | |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| | | | | | | | |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| Balance as at 1 | 7,283 | 32,919 | 19,439 | 3 | (30,348) | 212 | 29,508 |
| April 2007 as | | | | | | | |
| previously | | | | | | | |
| reported | | | | | | | |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| Transfer | - | - | (1,177) | - | 1,177 | - | - |
| revaluation in | | | | | | | |
| previous year | | | | | | | |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| | ------------- | ------------- | ------------- | ------------- | ------------- | ------------- | ------------- |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| Balance as at 1 | 7,283 | 32,919 | 18,262 | 3 | (29,171) | 212 | 29,508 |
| April 2007 | | | | | | | |
| restated | | | | | | | |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| Exchange | - | - | - | - | 1,080 | - | 1,080 |
| differences on | | | | | | | |
| translating | | | | | | | |
| foreign | | | | | | | |
| operations | | | | | | | |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| | ------------- | ------------- | ------------- | ------------- | ------------- | ------------- | ------------- |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| Net income | - | - | - | - | 1,080 | - | 1,080 |
| recognised | | | | | | | |
| directly in | | | | | | | |
| equity | | | | | | | |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| Loss for the | - | - | - | - | (921) | - | (921) |
| period | | | | | | | |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| | ------------- | ------------- | ------------- | ------------- | ------------- | ------------- | ------------- |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| Total recognised | - | - | - | - | 159 | - | 159 |
| income and | | | | | | | |
| expense | | | | | | | |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| | ------------- | ------------- | ------------- | ------------- | ------------- | ------------- | ------------- |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| Balance at 31 | 7,283 | 32,919 | 18,262 | 3 | (29,012) | 212 | 29,667 |
| December 2007 | | | | | | | |
| restated | | | | | | | |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| | ------------- | ------------- | ------------- | ------------- | ------------- | ------------- | ------------- |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
| The revaluation gain in the year ended 31st March 2007 has been transferred from revaluation |
| reserve to retained |
| earnings. |
+-------------------+---------------+---------------+---------------+---------------+---------------+---------------+---------------+
+-------------------------------+---------------+---------------+---------------+---------------+
| | Share | Share | Retained | Total |
| | capital | premium | earnings | GBP'000 |
| | GBP'000 | GBP'000 | GBP'000 | |
| | | | | |
+-------------------------------+---------------+---------------+---------------+---------------+
| Balance as at 1 April 2007 | 7,283 | 32,919 | (6,652) | 33,550 |
+-------------------------------+---------------+---------------+---------------+---------------+
| |------------- |------------- |------------- |------------- |
+-------------------------------+---------------+---------------+---------------+---------------+
| Loss for the period | - | - | (305) | (305) |
+-------------------------------+---------------+---------------+---------------+---------------+
| |------------- |------------- |------------- |------------- |
+-------------------------------+---------------+---------------+---------------+---------------+
| Total recognised income and | - | - | (305) | (305) |
| expense | | | | |
+-------------------------------+---------------+---------------+---------------+---------------+
| |------------- |------------- |------------- |------------- |
+-------------------------------+---------------+---------------+---------------+---------------+
| Balance at 31 December 2007 | 7,283 | 32,919 | (6,957) | 33,245 |
+-------------------------------+---------------+---------------+---------------+---------------+
| |------------- |------------- |------------- |------------- |
+-------------------------------+---------------+---------------+---------------+---------------+
+-------------------------------+---------------+---------------+---------------+---------------+
| | Share | Share | Retained | Total |
| | capital | premium | earnings | GBP'000 |
| | GBP'000 | GBP'000 | GBP'000 | |
| | | | | |
+-------------------------------+---------------+---------------+---------------+---------------+
| Balance as at 1 January 2008 | 7,283 | 32,919 | (6,957) | 33,245 |
+-------------------------------+---------------+---------------+---------------+---------------+
| |------------- |------------- |------------- |------------- |
+-------------------------------+---------------+---------------+---------------+---------------+
| Loss for the period | - | - | (1,243) | (1,243) |
+-------------------------------+---------------+---------------+---------------+---------------+
| |------------- |------------- |------------- |------------- |
+-------------------------------+---------------+---------------+---------------+---------------+
| Total recognised income and | - | - | (1,243) | (1,243) |
| expense | | | | |
+-------------------------------+---------------+---------------+---------------+---------------+
| |------------- |------------- |------------- |------------- |
+-------------------------------+---------------+---------------+---------------+---------------+
| Balance at 31 December 2008 | 7,283 | 32,919 | (8,200) | 32,002 |
+-------------------------------+---------------+---------------+---------------+---------------+
| |------------- |------------- |------------- |------------- |
+-------------------------------+---------------+---------------+---------------+---------------+
CHINA WESTERN INVESTMENTS PLC
31 December 2008
Group Balance Sheet
+-------------------------------------+---------+---------------+----------------+
| | | 31 December | 31 December |
| | | 2008 | 2008 |
| | | | (restated) |
+-------------------------------------+---------+---------------+----------------+
| | Note | GBP000 | GBP000 |
+-------------------------------------+---------+---------------+----------------+
| ASSETS | | | |
+-------------------------------------+---------+---------------+----------------+
| Non-current assets | | | |
+-------------------------------------+---------+---------------+----------------+
| Investment property | 10 | 40,616 | 30,698 |
+-------------------------------------+---------+---------------+----------------+
| Property, plant and equipment | 11 | 1,033 | 760 |
+-------------------------------------+---------+---------------+----------------+
| | | ------------- | ------------- |
+-------------------------------------+---------+---------------+----------------+
| Total non-current assets | | 41,649 | 31,458 |
+-------------------------------------+---------+---------------+----------------+
| | | ------------- | ------------- |
+-------------------------------------+---------+---------------+----------------+
| Non-current assets held for sale | 13 | 1,150 | - |
| | | | |
+-------------------------------------+---------+---------------+----------------+
| Current assets | | | |
+-------------------------------------+---------+---------------+----------------+
| Trade and other receivables | 14 | 190 | 223 |
+-------------------------------------+---------+---------------+----------------+
| Property under construction | 15 | 19,397 | 18,825 |
+-------------------------------------+---------+---------------+----------------+
| Inventories | 16 | 30 | 20 |
+-------------------------------------+---------+---------------+----------------+
| Cash and cash equivalents | | 30 | 20 |
+-------------------------------------+---------+---------------+----------------+
| | | ------------- | ------------- |
+-------------------------------------+---------+---------------+----------------+
| Total current assets | | 19,647 | 19,088 |
+-------------------------------------+---------+---------------+----------------+
| | | ------------- | ------------- |
+-------------------------------------+---------+---------------+----------------+
| TOTAL ASSETS | | 62,446 | 50,546 |
+-------------------------------------+---------+---------------+----------------+
| | | ------ | ------ |
+-------------------------------------+---------+---------------+----------------+
| EQUITY AND LIABILITIES | | | |
+-------------------------------------+---------+---------------+----------------+
| Share capital | 24 | 7,283 | 7,283 |
+-------------------------------------+---------+---------------+----------------+
| Share premium | | 32,919 | 32,919 |
+-------------------------------------+---------+---------------+----------------+
| Other reserves | | 18,265 | 18,265 |
+-------------------------------------+---------+---------------+----------------+
| Retained earnings | | (23,475) | (29,012) |
+-------------------------------------+---------+---------------+----------------+
| | | ------------- | ------------- |
+-------------------------------------+---------+---------------+----------------+
| | | 34,992 | 29,455 |
+-------------------------------------+---------+---------------+----------------+
| Minority interest | | 210 | 212 |
+-------------------------------------+---------+---------------+----------------+
| | | ------------- | ------------- |
+-------------------------------------+---------+---------------+----------------+
| Total equity | | 35,202 | 29,667 |
+-------------------------------------+---------+---------------+----------------+
| | | ---- | ------------- |
+-------------------------------------+---------+---------------+----------------+
| Non-current liabilities | | | |
+-------------------------------------+---------+---------------+----------------+
| Financial liabilities | 18 | 270 | 270 |
+-------------------------------------+---------+---------------+----------------+
| Long term borrowings | 18 | - | 24 |
+-------------------------------------+---------+---------------+----------------+
| Deferred tax liability | 19 | 5,585 | 5,600 |
+-------------------------------------+---------+---------------+----------------+
| | | ------------- | ------------- |
+-------------------------------------+---------+---------------+----------------+
| Total non-current liabilities | | 5,855 | 5,894 |
+-------------------------------------+---------+---------------+----------------+
| | | ------------- | ------------- |
+-------------------------------------+---------+---------------+----------------+
| Current liabilities | | | |
+-------------------------------------+---------+---------------+----------------+
| Trade and other payables | 17 | 5,154 | 3,794 |
+-------------------------------------+---------+---------------+----------------+
| Short term borrowings | 18 | 16,042 | 11,029 |
+-------------------------------------+---------+---------------+----------------+
| Current tax liabilities | | 193 | 162 |
+-------------------------------------+---------+---------------+----------------+
| | | ------------- | ------------- |
+-------------------------------------+---------+---------------+----------------+
| Total current liabilities | | 21,389 | 14,985 |
+-------------------------------------+---------+---------------+----------------+
| | | ------------- | ------------- |
+-------------------------------------+---------+---------------+----------------+
| Total liabilities | | 27,244 | 20,879 |
+-------------------------------------+---------+---------------+----------------+
| | | ------------- | ------------- |
+-------------------------------------+---------+---------------+----------------+
| TOTAL EQUITY AND LIABILITIES | | 62,446 | 50,546 |
+-------------------------------------+---------+---------------+----------------+
| | | ----- | ----- |
+-------------------------------------+---------+---------------+----------------+
| | | | |
+-------------------------------------+---------+---------------+----------------+
These financial statements were approved by the board of directors and
authorised for issue on the 29th June 2009
and are signed on their behalf by:
____________________ ____________________
Michael A Shields J Ho
CHINA WESTERN INVESTMENTS PLC
31 December 2008
Company Balance Sheet
+-------------------------------------+---------+---------------+-----------------+
| | | 31 December | 31 December |
| | | 2008 | 2008 (restated) |
+-------------------------------------+---------+---------------+-----------------+
| | Note | GBP000 | GBP000 |
+-------------------------------------+---------+---------------+-----------------+
| ASSETS | | | |
+-------------------------------------+---------+---------------+-----------------+
| Non-current assets | | | |
+-------------------------------------+---------+---------------+-----------------+
| Investments | 12 | 35,640 | 35,640 |
+-------------------------------------+---------+---------------+-----------------+
| | | ----- | ----- |
+-------------------------------------+---------+---------------+-----------------+
| Total non-current assets | | 35,640 | 35,640 |
+-------------------------------------+---------+---------------+-----------------+
| | | ----- | ----- |
+-------------------------------------+---------+---------------+-----------------+
| Current assets | | | |
+-------------------------------------+---------+---------------+-----------------+
| Trade and other receivables | 14 | 1,080 | 796 |
+-------------------------------------+---------+---------------+-----------------+
| Cash and cash equivalents | | 9 | 1 |
+-------------------------------------+---------+---------------+-----------------+
| | | ----- | ----- |
+-------------------------------------+---------+---------------+-----------------+
| Total current assets | | 1,089 | 797 |
+-------------------------------------+---------+---------------+-----------------+
| | | ----- | ----- |
+-------------------------------------+---------+---------------+-----------------+
| TOTAL ASSETS | | 36,729 | 36,437 |
+-------------------------------------+---------+---------------+-----------------+
| | | ----- | ----- |
+-------------------------------------+---------+---------------+-----------------+
| EQUITY AND LIABILITIES | | | |
+-------------------------------------+---------+---------------+-----------------+
| Share capital | 24 | 7,283 | 7,283 |
+-------------------------------------+---------+---------------+-----------------+
| Share premium | | 32,919 | 32,919 |
+-------------------------------------+---------+---------------+-----------------+
| Retained earnings | | (8,200) | (6,957) |
+-------------------------------------+---------+---------------+-----------------+
| | | ----- | ----- |
+-------------------------------------+---------+---------------+-----------------+
| Total equity | | 32,002 | 33,245 |
+-------------------------------------+---------+---------------+-----------------+
| | | ----- | ----- |
+-------------------------------------+---------+---------------+-----------------+
| Non-current liabilities | | | |
+-------------------------------------+---------+---------------+-----------------+
| Financial liabilities | 18 | 270 | 270 |
+-------------------------------------+---------+---------------+-----------------+
| | | ----- | ----- |
+-------------------------------------+---------+---------------+-----------------+
| Total non-current liabilities | | 270 | 270 |
+-------------------------------------+---------+---------------+-----------------+
| | | ----- | ----- |
+-------------------------------------+---------+---------------+-----------------+
| Current liabilities | | | |
+-------------------------------------+---------+---------------+-----------------+
| Trade and other payables | 17 | 1,417 | 945 |
+-------------------------------------+---------+---------------+-----------------+
| Short term borrowings | 18 | 3,040 | 1,977 |
+-------------------------------------+---------+---------------+-----------------+
| | | ----- | ----- |
+-------------------------------------+---------+---------------+-----------------+
| Total current liabilities | | 4,457 | 2,922 |
+-------------------------------------+---------+---------------+-----------------+
| | | ----- | ----- |
+-------------------------------------+---------+---------------+-----------------+
| Total liabilities | | 4,727 | 3,192 |
+-------------------------------------+---------+---------------+-----------------+
| | | ----- | ----- |
+-------------------------------------+---------+---------------+-----------------+
| TOTAL EQUITY AND LIABILITIES | | 36,729 | 36,437 |
+-------------------------------------+---------+---------------+-----------------+
| | | ----- | ----- |
+-------------------------------------+---------+---------------+-----------------+
These financial statements were approved by the board of directors and
authorised for issue on the 29th June 2009 and
are signed on their
behalf by:
____________________ ____________________
Michael A Shields J Ho
CHINA WESTERN INVESTMENTS PLC
Year ended 31 December 2008
Cash Flow Statement
+------------------------------------+---------+---------------+----------------+
| | | Year ended 31 | Period ended |
| | | December 2008 | 31 December |
| | | | 2007 |
+------------------------------------+---------+---------------+----------------+
| | Note | GBP000 | GBP000 |
+------------------------------------+---------+---------------+----------------+
| Group Cash Flow | | | |
+------------------------------------+---------+---------------+----------------+
| | | | |
+------------------------------------+---------+---------------+----------------+
| Cash flows from operating | | | |
| activities | | | |
+------------------------------------+---------+---------------+----------------+
| Loss before tax | | (1,551) | (891) |
+------------------------------------+---------+---------------+----------------+
| Adjustments for: | | | |
+------------------------------------+---------+---------------+----------------+
| Depreciation | | 146 | 52 |
+------------------------------------+---------+---------------+----------------+
| Exchange losses/(gains) | | 148 | (516) |
+------------------------------------+---------+---------------+----------------+
| Deficit on revaluation | | 50 | - |
+------------------------------------+---------+---------------+----------------+
| Increase in inventories | | (2) | (76) |
+------------------------------------+---------+---------------+----------------+
| Decrease/(increase) in trade and | | 112 | (3) |
| other receivables | | | |
+------------------------------------+---------+---------------+----------------+
| Increase in trade and other | | 555 | 454 |
| payables | | | |
+------------------------------------+---------+---------------+----------------+
| | | ------ | ------ |
+------------------------------------+---------+---------------+----------------+
| Cash used in operations | | (542) | (980) |
+------------------------------------+---------+---------------+----------------+
| | | | |
+------------------------------------+---------+---------------+----------------+
| Income taxes paid | | (54) | (31) |
+------------------------------------+---------+---------------+----------------+
| | | ------ | ------ |
+------------------------------------+---------+---------------+----------------+
| Net cash used in operating | | (596) | (1,011) |
| activities | | | |
+------------------------------------+---------+---------------+----------------+
| | | | |
+------------------------------------+---------+---------------+----------------+
| | | | |
+------------------------------------+---------+---------------+----------------+
| Cash flows from investing | | | |
| activities | | | |
+------------------------------------+---------+---------------+----------------+
| Purchase of property, plant and | | (184) | (159) |
| equipment | | | |
+------------------------------------+---------+---------------+----------------+
| | | ------ | ------ |
+------------------------------------+---------+---------------+----------------+
| Net cash used in investing | | (184) | (159) |
| activities | | | |
+------------------------------------+---------+---------------+----------------+
| | | | |
+------------------------------------+---------+---------------+----------------+
| | | | |
+------------------------------------+---------+---------------+----------------+
| Cash flows from financing | | | |
| activities | | | |
+------------------------------------+---------+---------------+----------------+
| Increase in borrowings | | 790 | 1,071 |
+------------------------------------+---------+---------------+----------------+
| Repayment of finance lease | | - | 134 |
| liabilities | | | |
+------------------------------------+---------+---------------+----------------+
| Capital element of finance lease | | - | (62) |
| liabilities | | | |
+------------------------------------+---------+---------------+----------------+
| | | ------ | ------ |
+------------------------------------+---------+---------------+----------------+
| Net cash generated from financing | | 790 | 1,143 |
| activities | | | |
+------------------------------------+---------+---------------+----------------+
| | | | |
+------------------------------------+---------+---------------+----------------+
| | | | |
+------------------------------------+---------+---------------+----------------+
| Net increase/(decrease) in cash | | 10 | (27) |
| and cash equivalents | | | |
+------------------------------------+---------+---------------+----------------+
| | | | |
+------------------------------------+---------+---------------+----------------+
| Cash and cash equivalents at | | 20 | 47 |
| beginning of year | | | |
+------------------------------------+---------+---------------+----------------+
| | | ----- | ----- |
+------------------------------------+---------+---------------+----------------+
| Cash and cash equivalents at end | | 30 | 20 |
| of year | | | |
+------------------------------------+---------+---------------+----------------+
| | | ----- | ----- |
+------------------------------------+---------+---------------+----------------+
| | | | |
+------------------------------------+---------+---------------+----------------+
| | | | |
+------------------------------------+---------+---------------+----------------+
| Company Cash Flow | | | |
+------------------------------------+---------+---------------+----------------+
| | | | |
+------------------------------------+---------+---------------+----------------+
| Cash flows from operating | | | |
| activities | | | |
+------------------------------------+---------+---------------+----------------+
| Loss before tax | | (1,242) | (305) |
+------------------------------------+---------+---------------+----------------+
| Adjustments for: | | | |
+------------------------------------+---------+---------------+----------------+
| Exchange losses/(gains) | | 520 | (130) |
+------------------------------------+---------+---------------+----------------+
| Decrease in trade and other | | 3 | 51 |
| receivables | | | |
+------------------------------------+---------+---------------+----------------+
| Increase in trade and other | | 184 | 342 |
| payables | | | |
+------------------------------------+---------+---------------+----------------+
| | | ------ | ------ |
+------------------------------------+---------+---------------+----------------+
| Cash used in operations | | (535) | (42) |
+------------------------------------+---------+---------------+----------------+
| | | | |
+------------------------------------+---------+---------------+----------------+
| | | | |
+------------------------------------+---------+---------------+----------------+
| Cash flows from financing | | | |
| activities | | | |
+------------------------------------+---------+---------------+----------------+
| Increase in borrowings | | 543 | 28 |
+------------------------------------+---------+---------------+----------------+
| | | ------ | ------ |
+------------------------------------+---------+---------------+----------------+
| Net cash generated from financing | | 543 | 28 |
| activities | | | |
+------------------------------------+---------+---------------+----------------+
| | | | |
+------------------------------------+---------+---------------+----------------+
| | | | |
+------------------------------------+---------+---------------+----------------+
| Net increase/(decrease) in cash | | 8 | (14) |
| and cash equivalents | | | |
+------------------------------------+---------+---------------+----------------+
| | | | |
+------------------------------------+---------+---------------+----------------+
| Cash and cash equivalents at | | 1 | 15 |
| beginning of year | | | |
+------------------------------------+---------+---------------+----------------+
| | | ----- | ----- |
+------------------------------------+---------+---------------+----------------+
| Cash and cash equivalents at end | | 9 | 1 |
| of year | | | |
+------------------------------------+---------+---------------+----------------+
| | | ----- | ----- |
+------------------------------------+---------+---------------+----------------+
CHINA WESTERN INVESTMENTS PLC
Notes to the Financial Statements
Year ended 31 December 2008
1.Accounting policies
The consolidated financial statements of the Group for the year ended 31
December 2008 comprise the company and its subsidiaries (together referred to as
the 'Group' and individually as the 'Group entities'. The Company is a public
limited company which is listed on AIM, incorporated in the UK and domiciled in
the United Kingdom. However, the principal place of business is in the People's
Republic of China.
The following accounting policies have been applied consistently in dealing with
items which are considered material in relation to the financial information of
China Western Investments plc and its subsidiaries.
Basis of preparation
The Directors have concluded that the financial statements present the entity's
financial position, financial performance and cash flows fairly. The
consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) and IFRICs issued by the
International Accounting Standards Board (IASB), as adopted for use in the EU
except for a departure from the requirements of International Accounting
Standard 2 "Inventories". This departure is explained below in the accounting
policy for properties. In the Directors' opinion, this departure is necessary in
order to achieve a fair presentation. The financial statements have also been
prepared in accordance with the parts of the Companies Act 1985 relevant to
companies adopting IFRSs.
The comparative amounts shown on the Income Statement, Statement of Changes in
Equity, Cash Flow Statement and the related notes are for nine months, due to
last year's change in accounting date, and are therefore not directly
comparable.
The financial statements have been prepared on a historical cost basis except
where IFRS requires an alternative treatment. The principal variations from the
historical cost basis relate to IAS 40 "Investment properties", where the
standard allows a choice in presentation of historic cost or fair value. The
Group has chosen the fair value presentation as noted in note 10 in accounting
for investment properties.
The Group's principal accounting policies are set out below. These accounting
policies have been applied consistently to all periods presented in the
consolidated financial statements.
Basis of consolidation
The consolidated financial statements include the financial statements of the
Company and its subsidiary undertakings made up to 31 December each year.
Control is achieved where the Company has the power to govern the financial and
operating policies of an investee entity so as to obtain benefits from its
activities.
The profits or losses of subsidiaries are included in the consolidated income
statement. .
All intra group transactions are eliminated on consolidation.
Going concern
United Kingdom law requires the Company's directors to consider whether it is
appropriate to prepare financial statements on the basis that the Group and
Company is a going concern. In considering this matter the directors have
reviewed the Group's budget for 2009 and 2010. This involved consideration of
the cash flow implications of the budget and the plan. The directors see no
reason why the Group and Company should not continue in operational existence
for the foreseeable future, given the subordinated loan and shareholder loans
secured as noted on note 18 of these accounts. For this reason they have adopted
the going concern basis in preparing the Group's and Company's financial
statements.
Standards and interpretations
At the authorisation of these financial statements, the following standards and
interpretations, which have not been applied in these financial statements, were
in issue but not yet effective. The directors anticipate that the adoption of
these standards and interpretations will have no material impact on the Group's
financial statements. The directors anticipate that the Group will adopt these
standards and interpretations on their effective dates:
* IFRS 8 "Operating Segments" requires adoption of a management approach to
reporting on their operating segments, effective for periods beginning on or
after 1 January 2009 .
* A revised version of IAS 1 "Presentation of Financial Statements" will require
information in financial statements to be aggregated on the basis of shared
characteristics, and introduce a statement of comprehensive income, effective
for periods beginning on or after 1 January 2009 .
* A revised version of IAS 23 "Borrowing Costs" removes the option of immediately
recognising as an expense borrowing costs that relate to assets that take a
substantial period of time to get ready for use or sale, effective for periods
beginning on or after 1 January 2009 .
* An amendment to IFRS 2 "Share-based Payment" effective for periods beginning on
or after 1 January 2009 .
* A revised version of IFRS 3 "Business Combinations" and amendments to IAS 27
"Consolidated and Separate Financial Statements" ensure that the accounting for
business combinations is the same whether an entity is applying IFRSs or US
GAAP, effective for periods beginning on or after 1 January 2009.
* Amendments to IFRS 1 "First-time Adoption of International Financial Reporting
Standards" and IAS 27 "Consolidated and Separate Financial Statements" address
concerns that retrospectively determining the cost of an investment in separate
financial statements and applying the cost method in accordance with IAS 27 on
first-time adoption of IFRS cannot, in some circumstances, be achieved without
undue cost or effort, effective for periods beginning on or after 1 January 2009
.
* Amendments to IFRS 7 "Financial Instruments: Disclosures" require enhanced
disclosures about fair value measurements and liquidity risk, effective for
periods beginning on or after 1 January 2009, subject to EU endorsement.
* Amendments to IAS 32 "Financial Instruments: Presentation" and IAS 1
"Presentation of Financial Statements - Puttable Financial Instruments and
Obligations Arising on Liquidation" , effective for periods beginning on or
after 1 January 2009.
Standards and interpretations continued
* Amendments to IAS 39 "Financial Instruments: Recognition and Measurement,
effective for periods beginning on or after 1 July 2009, subject to EU
endorsement.
* Amendments to IFRIC 9 "Reassessment of Embedded Derivatives" and IAS 39
"Financial Instruments: Recognition and Measurement", effective for periods
ending on or after 30 June 2009, subject to EU endorsement.
* IFRIC 12 "Service Concession Arrangements", effective for periods beginning on
or after 1 January 2009, subject to EU endorsement.
* IFRIC 13 "Customer Loyalty Programmes", effective for periods beginning on or
after 1 January 2009, subject to EU endorsement.
* IFRIC 15 "Agreements for the Construction of Real Estate" provides guidance on
how to determine whether an agreement for the construction of real estate is
within the scope of IAS 11 Construction Contracts or IAS 18 Revenue and when
revenue from the construction should be recognised, effective for periods
beginning on or after 1 January 2009, subject to EU endorsement.
* IFRIC 16 "Hedges of a Net Investment in a Foreign Operation", effective for
periods beginning on or after 1 October 2008, subject to EU endorsement,
* IFRIC 17 "Distributions of Non-cash Assets to Owners" , effective for periods
beginning on or after 1 July 2009, subject to EU endorsement.
* IFRIC 18 "Transfers of Assets from Customers", effective for transfers of assets
from customers received on or after 1 July 2009, subject to EU endorsement..
Functional currency
The main trading is effected in the currency of the People's Republic of China.
The accounts are converted into sterling due to the company being incorporated
in England and Wales and listed on the Alternative Investment Market of the
London Stock Exchange.
Foreign currency
Transactions in foreign currencies are translated into Sterling at the rate
ruling at the date of the transaction. Assets and liabilities denominated in
foreign currencies are retranslated into Sterling at the rates prevailing at the
balance sheet date. Resultant gains and losses are recognised in the income
statement.
Where subsidiary undertakings prepare their financial statements in a currency
other than Sterling, all revenue, expenses, assets and liabilities are
translated at the rate of exchange ruling at the balance sheet date.
Differences arising on the restatement of opening balance sheets of overseas
subsidiary undertakings are taken directly to reserves.
Properties
The Company acquired a 99% interest in Lanzhou International Trade Building
Company Limited ("LITBC") in 2004. The acquisition value was established based
on an independent valuation of LITBC's property interests. These interests
include both investment properties and property under construction.
Investment properties
Investment properties are accounted for using the fair value model in accordance
with IAS 40 "Investment properties", under which an investment property is
measured, after initial measurement, at fair value with changes in fair value
recognised in the profit or loss. This is contrary to the Companies Act 1985
which states that, subject to any provision for depreciation or diminution in
value, Property, Plant and Equipment are normally to be stated at purchase price
or production cost. Current cost accounting or the revaluation of specific
assets to market value, as determined at the date of the last valuation, is also
permitted.
The treatment of investment properties under the Companies Act does not give a
true and fair view as these assets are not held for consumption in the business
but as investments, the disposal of which would not materially affect the
trading operations of the enterprise. In such a case it is the current value of
these investments, and changes in that current value, which are of prime
importance. Consequently, for the proper appreciation of the financial position,
the accounting treatment required by IAS 40 is considered appropriate for
investment properties.
Investment properties acquired are recognised only on practical completion.
The direct costs of the property and associated costs of acquisition are
capitalised. Interest is written off to profit and loss.
Revaluations of investment properties are undertaken annually.
Property under construction
The property under construction is carried at its valuation at the date of
acquisition of LITBC, being RMB 20,569,000 as the historical cost together with
subsequent movements and a revaluation at the date of acquisition of
GBP17,313,000. The historical cost carried in the balance sheet of LITBC is
translated into sterling at the rate ruling at each balance sheet date, and the
total valuation carried in the balance sheet is subject to an annual impairment
review. This is a departure from the requirement of International Accounting
Standard 2 "Inventories" for inventories to be measured at the lower of cost and
net realisable value. Were the property under construction to be measured at the
historic cost incurred by LITBC (as opposed to the higher valuation figure),
this would result in the recognition of goodwill in the consolidated balance
sheet. In the Directors' opinion,no goodwill should be recorded, as no premium
over market value was paid by the Company on acquisition of LITBC.
Had this requirement of IAS2 been followed, goodwill of GBP17,313,000 would have
been recognised in the consolidated balance sheet, and property under
construction would have been reduced by a corresponding amount. There would
therefore have been no effect on results or total assets.
Property, plant and equipment
All property, plant and equipment is stated in the balance sheet at historical
cost less accumulated depreciation and accumulated impairment losses.
Depreciation is charged so as to write off the cost over their estimated useful
lives using the straight line method of depreciation, as follows:
Motor vehicles 9 - 18%
Fixtures and fittings 9 - 18%
Office Equipment 9 - 18%
The gain or loss arising on disposal of an asset is determined as the difference
between the sales proceeds and the carrying amount of the asset and is
recognised in profit or loss for the period.
Impairment of non-financial assets
The Group assesses at each reporting date whether an asset may be impaired. If
any such indicator exists, the Group tests the asset for impairment by
estimating the recoverable amount. If the recoverable amount is less than the
carrying value of the asset, an impairment loss is required. In addition to
this, assets with indefinite lives and goodwill are tested for impairment at
least annually.
Investments
In the Company's accounts, investments in subsidiary undertakings are stated at
cost. As permitted by section 133 of the Companies Act 1985, where the merger
relief afforded under section 131 of the Companies Act 1985 applies, cost is the
aggregate of the nominal value of the relevant number of the Company's shares
and the fair value of any other consideration given to acquire the share capital
of the subsidiary undertakings. Provision is made where there is an impairment
in the value of the investment.
Non-current assets held for sale
Property held-for-sale is measured at the lower of its carrying value
immediately prior to its classification as property held-for-sale and its fair
value less costs of sale. Property classified as held-for-sale is not subject to
amortisation or depreciation.
Inventories
Inventories include medical supplies which are valued at the lower of cost and
net realisable value.
Cash and cash equivalents
Cash and cash equivalents include cash at bank and in hand.
Borrowings
Borrowing costs are recognised in profit or loss in the period in which they
occur.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred
tax.
Current tax is provided at amounts expected to be paid (or recovered) using the
tax rates and laws that have been enacted or substantially enacted at the
balance sheet date.
Deferred tax is recognised between the carrying amount of assets and liabilities
in the financial statements and the corresponding tax bases used in the
computation of taxable profit, and is accounted for using the balance sheet
liability method. Deferred tax liabilities are generally recognised for all
taxable temporary differences and deferred tax assets are recognised to the
extent that it is probable that the future taxable profit will be available
against which the temporary differences can be utilised.
Deferred tax liabilities are recognised for taxable temporary differences
arising on investments in subsidiaries except where the group is able to control
the reversal of the temporary difference and it is probable that the temporary
difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that it is no longer probable that the temporary
difference will not reverse in the foreseeable future.
Deferred tax is calculated at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realised. Deferred tax is
credited or charged to the income statement, except where it relates to items
charged or credited directly to equity, in which case the deferred tax is also
dealt with in equity.
Deferred tax is recognised in respect of all timing differences that have
originated but not reversed at the balance sheet date. Deferred tax assets are
recognised only to the extent that, in the opinion of the directors, they are
expected to be fully recoverable.
Revenue recognition
Revenue comprises the value of rental income invoiced by the Group, net of
relevant local taxes.
Employee benefits
The Group operates a defined contribution pension scheme for its employees. The
assets of the scheme are held separately from those of the Company. The annual
contributions payable are charged to the consolidated income statement.
Leasing
Leases are classified as finance leases whenever the terms of the lease transfer
all the risks or rewards of ownership to the lessee. All other leases are
classified as operating leases.
Rental payments under operating leases are charged to profit or loss on a
straight-line basis over the term of the lease.
The Company acts as a lessor. Lease income is recognised over the term of the
lease using the net investment method which reflects a constant periodic rate of
return.
When assets are leased out under an operating lease the asset is included in the
balance sheet based the nature of the nature of the asset.
Leasing continued
Lease income is recognised over the term of the lease on a straight line basis.
Financial risk management and financial instruments
Financial instruments are classified and accounted for, according to the
substance of the contractual arrangement, as either financial assets, financial
liabilities or equity instruments. An equity instrument is any contract that
evidences a residual interest in the assets of the company after deducting all
of its liabilities
The Group's financial instruments comprise cash, overdraft facilities, loans and
various items such as
short-term receivables that arise from its operations. The main purpose of these
financial instruments is to fund the short term working capital requirements of
the business. The Group has no derivatives.
The main risks arising for the Group's financial instruments are interest and
liquidity risk. The Board reviews and agrees policies for managing each of these
risks and they are summarised below. These policies have remained unchanged
throughout the year.
Capital risk management
The Group's objectives when managing capital are to safeguard the Group's
ability to continue as a going concern. The present strategy, until investment
capital is secured, is to maintain working capital through shareholder loans.
Interest rate risk
The Group finances its operations through retained earnings, the use of
overdraft facilities and loans. The Group places its cash on deposit at which
interest rates are fixed in the short term but for sufficiently short periods
that there is no need to hedge against the implied risk.
Liquidity risk
Short term flexibility is achieved by overdraft facilities. These were used
during the year, for short periods of time. It is the Group's policy to keep
facilities in place in order to provide flexibility in the management of the
Group's liquidity.
Currency risk
The Group is exposed to currency risk in its Chinese operations. All trading
assets and liabilities are denominated in the currency of China or in Hong Kong
dollars. The risk is managed by maintaining bank accounts denominated in those
currencies. The Group does not hedge its exposure.
Fair values and maturity of financial instruments
There is no material difference between the book value and the fair value of
the financial assets or liabilities.
Critical accounting estimates, judgments and assumptions
.
The Company makes estimates, judgments and assumptions concerning the future.
The resulting accounting estimates will, by definition, seldom equal the related
actual results. The assumptions and judgments that have a significant risk of
causing a material adjustment to the carrying value of assets and liabilities
within the financial statements are detailed below.
Critical accounting estimates, judgments and assumptions continued
Working capital
Note 18 to the Financial Statements details the position regarding the Group's
loan facilities. A significant element of the loan facilities relate to
shareholder and related party loans. Both lender categories have given their
commitment to maintaining their loan facilities and will not seek repayment of
capital or interest until the Group is able to make such repayments.
Deferred tax asset
The Group has not taken into account the deferred tax asset that could be offset
against future profits. The details are shown under note 7.
2.Segmental information
During the period, the Group operated two principal classes of business, that of
property investment and hospital operations. All of the Group's activities are
conducted and based in the People's Republic of China.
An analysis of revenue is given below:
+--------------------------------------------------+---------------+----------------+
| | 2008 | 2007 |
+--------------------------------------------------+---------------+----------------+
| | GBP000 | GBP000 |
+--------------------------------------------------+---------------+----------------+
| People's Republic of China | | |
+--------------------------------------------------+---------------+----------------+
| Property revenues | 367 | 308 |
+--------------------------------------------------+---------------+----------------+
| Hospital revenues | 873 | 232 |
+--------------------------------------------------+---------------+----------------+
| | ------------- | -------------- |
+--------------------------------------------------+---------------+----------------+
| | 1,240 | 540 |
+--------------------------------------------------+---------------+----------------+
| | ========= | ========== |
+--------------------------------------------------+---------------+----------------+
All assets and liabilities of the Group relate to the activities in the People's
Republic of China.
3.Net loss before tax
Net loss is stated after charging:
+--------------------------------------------------+-----------+-----------+
| | | 2007 |
| | 2008 | |
+--------------------------------------------------+-----------+-----------+
| | GBP000 | GBP000 |
+--------------------------------------------------+-----------+-----------+
| Depreciation of property, plant and equipment | 146 | 52 |
+--------------------------------------------------+-----------+-----------+
| Auditors' remuneration | | |
+--------------------------------------------------+-----------+-----------+
| Fees payable to the company's auditor for the | 15 | 15 |
| audit of the company's annual accounts | | |
+--------------------------------------------------+-----------+-----------+
| Fees payable to the company's auditors and its | | |
| associates for other services provided to the | | |
| company and its subsidiaries | | |
+--------------------------------------------------+-----------+-----------+
| The audit of the company's subsidiaries under | 30 | 65 |
| legislative requirements | | |
+--------------------------------------------------+-----------+-----------+
| Tax services | 2 | 2 |
+--------------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------------+-----------+-----------+
4.Directors' emoluments
The directors' aggregate emoluments in respect of qualifying services were:
+--------------------------------------------------+------------+------------+
| | | 2007 |
| | 2008 | |
+--------------------------------------------------+------------+------------+
| | GBP000 | GBP000 |
+--------------------------------------------------+------------+------------+
| Emoluments receivable | 112 | 106 |
+--------------------------------------------------+------------+------------+
| | ========== | ========== |
+--------------------------------------------------+------------+------------+
5.Finance costs
+--------------------------------------------------+-------------------+--------------------+
| | | 2007 |
| | 2008 | |
+--------------------------------------------------+-------------------+--------------------+
| | GBP000 | GBP000 |
+--------------------------------------------------+-------------------+--------------------+
| Interest payable on bank borrowing | - | 120 |
+--------------------------------------------------+-------------------+--------------------+
| Interest payable on other loans | 1,173 | 1,044 |
+--------------------------------------------------+-------------------+--------------------+
| | ----------------- | ------------------ |
+--------------------------------------------------+-------------------+--------------------+
| | 1,173 | 1,164 |
+--------------------------------------------------+-------------------+--------------------+
| | =========== | ============ |
+--------------------------------------------------+-------------------+--------------------+
6.Particulars of employees
The aggregate payroll costs of the above were:
+--------------------------------------------------+-----------------+-----------------+
| | | 2007 |
| | 2008 | |
+--------------------------------------------------+-----------------+-----------------+
| | GBP000 | GBP000 |
+--------------------------------------------------+-----------------+-----------------+
| Wages and salaries | 261 | 148 |
+--------------------------------------------------+-----------------+-----------------+
| Social security costs | 1 | 1 |
+--------------------------------------------------+-----------------+-----------------+
| Other pension costs | 29 | 1 |
+--------------------------------------------------+-----------------+-----------------+
| | --------------- | --------------- |
+--------------------------------------------------+-----------------+-----------------+
| | 291 | 150 |
+--------------------------------------------------+-----------------+-----------------+
| | ========== | ========== |
+--------------------------------------------------+-----------------+-----------------+
| Average number of employees | 234 | 151 |
+--------------------------------------------------+-----------------+-----------------+
| | ========== | ========== |
+--------------------------------------------------+-----------------+-----------------+
7.Income tax expense
(a) Analysis of charge in the period
+--------------------------------------------------+-----------------+-----------------+
| | | 2007 |
| | 2008 | |
+--------------------------------------------------+-----------------+-----------------+
| | GBP000 | GBP000 |
+--------------------------------------------------+-----------------+-----------------+
| Overseas tax based on the results for the period | 54 | 30 |
| at 30% (2007 - 30%) | | |
+--------------------------------------------------+-----------------+-----------------+
| Deferred tax credit on valuation deficit | (15) | - |
+--------------------------------------------------+-----------------+-----------------+
| | --------------- | --------------- |
+--------------------------------------------------+-----------------+-----------------+
| Total tax | 39 | 30 |
+--------------------------------------------------+-----------------+-----------------+
| | ========== | ========== |
+--------------------------------------------------+-----------------+-----------------+
The Group has estimated tax losses carried forward of GBP5,800,000 (2007:
GBP5,150,000) that are available for offset against future taxable profits.
These losses would give rise to a deferred tax asset of GBP1,600,000 (2007:
GBP1,545,000), however deferred tax assets are only recognised on the basis that
the recoverability of the deferred tax asset is more likely than not.
(b) Factors affecting current tax charge
The tax assessed on the (loss) on ordinary activities for the year is higher
than the standard rate of corporation tax in the UK of 28% (2007 - 30%).
+--------------------------------------------------+--------------+--------------+
| | | 2007 |
| | 2008 | |
+--------------------------------------------------+--------------+--------------+
| | GBP000 | GBP000 |
+--------------------------------------------------+--------------+--------------+
| | | |
+--------------------------------------------------+--------------+--------------+
| (Loss) on ordinary activities before taxation | (1,551) | (891) |
+--------------------------------------------------+--------------+--------------+
| | ======== | ======= |
+--------------------------------------------------+--------------+--------------+
| (Loss) on ordinary activities by rate of tax | (435) | (267) |
+--------------------------------------------------+--------------+--------------+
| Expenses not deductible for tax purposes | 60 | 17 |
+--------------------------------------------------+--------------+--------------+
| | ------------ | ------------ |
+--------------------------------------------------+--------------+--------------+
| (Loss) carried forward | (375) | (250) |
+--------------------------------------------------+--------------+--------------+
| | ------------ | ------------ |
+--------------------------------------------------+--------------+--------------+
| Overseas tax | 54 | 30 |
+--------------------------------------------------+--------------+--------------+
| | ------------ | ------------ |
+--------------------------------------------------+--------------+--------------+
| Total tax (note 7 (a)) | 54 | 30 |
+--------------------------------------------------+--------------+--------------+
| | ======== | ======== |
+--------------------------------------------------+--------------+--------------+
8.Loss attributable to members of the parent company
The loss dealt with in the accounts of the parent company was GBP1,243,000 (2007
- GBP305,000).
9.Loss per share
+--------------------------------------------------+-----------+-----------+
| | | 2007 |
| | 2008 | |
+--------------------------------------------------+-----------+-----------+
| | Pence | Pence |
+--------------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------------+-----------+-----------+
| Loss per ordinary share - total operations | (0.21) | (0.13) |
+--------------------------------------------------+-----------+-----------+
| | ======== | ======== |
+--------------------------------------------------+-----------+-----------+
Loss per share is based on the loss for the year ended 31 December 2008:
GBP1,590,000 and the loss for the period ended 31 December 2007: GBP921,000
divided by the weighted average number of shares issued during the year ended 31
December 2008: 728,375,495 and the period ended 31 December 2007: 728,375,495.
As the company has made a loss for the year no option is potentially dilutive
and hence both basic and diluted loss per share are the same.
10. Investment properties
+--------------------------------------------------+--------------------------+--------------------------+
| Group | Land use | Total |
| | rights | |
+--------------------------------------------------+--------------------------+--------------------------+
| | GBP000 | GBP000 |
+--------------------------------------------------+--------------------------+--------------------------+
| Fair Value | | |
+--------------------------------------------------+--------------------------+--------------------------+
| At 1 January 2008 | 30,698 | 30,698 |
+--------------------------------------------------+--------------------------+--------------------------+
| Write down in value | (50) | (50) |
+--------------------------------------------------+--------------------------+--------------------------+
| Transfer to property held for sale | (1,150) | (1,150) |
+--------------------------------------------------+--------------------------+--------------------------+
| Exchange Variance | 11,118 | 11,118 |
+--------------------------------------------------+--------------------------+--------------------------+
| | ------------------------ | ------------------------ |
+--------------------------------------------------+--------------------------+--------------------------+
| At 31 December 2008 | 40,616 | 40,616 |
+--------------------------------------------------+--------------------------+--------------------------+
| | =============== | =============== |
+--------------------------------------------------+--------------------------+--------------------------+
All of the investment property assets are held in the People's Republic of
China. The land use rights of the land related to the investment property is
vested in Lanzhou International Trade Building Company Limited (LITBC) for a
term between 1993 and 2032.
In accordance with "IAS 40 Investment Property", the Group has chosen to use
the fair value model in determining the value of investment properties.
Fair value has been determined by reference to the external valuation performed
by Vigers Appraisal & Consulting Limited (Independent professional valuers) as
at 31 December 2008.
Investment properties generating the following rental income and direct
operating expenses:
+--------------------------------------------------+-----------+-----------+
| Group | 2008 | 2007 |
+--------------------------------------------------+-----------+-----------+
| | GBP000 | GBP000 |
+--------------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------------+-----------+-----------+
| Rental income | 366 | 208 |
+--------------------------------------------------+-----------+-----------+
| | ======== | ======== |
+--------------------------------------------------+-----------+-----------+
| Wages | (44) | (24) |
+--------------------------------------------------+-----------+-----------+
| Direct operating expenses relating to generating | (370) | (108) |
| rental income | | |
+--------------------------------------------------+-----------+-----------+
| | ======== | ======== |
+--------------------------------------------------+-----------+-----------+
| Net rental (expense) / income from rented | (48) | 76 |
| properties | | |
+--------------------------------------------------+-----------+-----------+
| | ======== | ======== |
+--------------------------------------------------+-----------+-----------+
11. Property, Plant and Equipment
+-------------------------------+----------------------+----------------------+----------------------+--------------------+
| Group | Motor | Fixtures | Office | Total |
| | Vehicles | & Fittings | Equipment | GBP'000 |
| | GBP'000 | GBP'000 | GBP'000 | |
+-------------------------------+----------------------+----------------------+----------------------+--------------------+
| Cost | | | | |
+-------------------------------+----------------------+----------------------+----------------------+--------------------+
| At 1 | 138 | 791 | 26 | 955 |
| April | | | | |
| 2007 | | | | |
+-------------------------------+----------------------+----------------------+----------------------+--------------------+
| Exchange | 18 | 33 | 2 | 53 |
| translation | | | | |
+-------------------------------+----------------------+----------------------+----------------------+--------------------+
| Additions | - | 138 | - | 138 |
+-------------------------------+----------------------+----------------------+----------------------+--------------------+
| | -------------------- | -------------------- | -------------------- | ------------------ |
+-------------------------------+----------------------+----------------------+----------------------+--------------------+
| At 31 | 156 | 962 | 28 | 1,146 |
| December | | | | |
| 2007 | | | | |
+-------------------------------+----------------------+----------------------+----------------------+--------------------+
| | | | | |
+-------------------------------+----------------------+----------------------+----------------------+--------------------+
| Exchange | 58 | 360 | 14 | 432 |
| translation | | | | |
+-------------------------------+----------------------+----------------------+----------------------+--------------------+
| Additions | - | 115 | - | 115 |
+-------------------------------+----------------------+----------------------+----------------------+--------------------+
| Disposals | - | (87) | - | (87) |
+-------------------------------+----------------------+----------------------+----------------------+--------------------+
| | -------------------- | -------------------- | -------------------- | ------------------ |
+-------------------------------+----------------------+----------------------+----------------------+--------------------+
| At 31 | 214 | 1,350 | 42 | 1,606 |
| December | | | | |
| 2008 | | | | |
+-------------------------------+----------------------+----------------------+----------------------+--------------------+
| | ============= | ============= | ============= | ============ |
+-------------------------------+----------------------+----------------------+----------------------+--------------------+
+--------------------------------+----------------------+----------------------+----------------------+--------------------+
| Depreciation | | | | |
| | | | | |
+--------------------------------+----------------------+----------------------+----------------------+--------------------+
| At 1 | 90 | 225 | 2 | 317 |
| April | | | | |
| 2007 | | | | |
+--------------------------------+----------------------+----------------------+----------------------+--------------------+
| Charge | 9 | 40 | 3 | 52 |
| for | | | | |
| the | | | | |
| period | | | | |
+--------------------------------+----------------------+----------------------+----------------------+--------------------+
| Exchange | 6 | 11 | - | 17 |
| translation | | | | |
+--------------------------------+----------------------+----------------------+----------------------+--------------------+
| | -------------------- | -------------------- | -------------------- | ------------------ |
+--------------------------------+----------------------+----------------------+----------------------+--------------------+
| At 31 | 105 | 276 | 5 | 386 |
| December | | | | |
| 2007 | | | | |
+--------------------------------+----------------------+----------------------+----------------------+--------------------+
| | | | | |
+--------------------------------+----------------------+----------------------+----------------------+--------------------+
| Charge | 41 | 98 | 7 | 146 |
| for | | | | |
| the | | | | |
| period | | | | |
+--------------------------------+----------------------+----------------------+----------------------+--------------------+
| Exchange | 16 | 74 | 8 | 98 |
| translation | | | | |
+--------------------------------+----------------------+----------------------+----------------------+--------------------+
| Disposals | - | (57) | - | (57) |
+--------------------------------+----------------------+----------------------+----------------------+--------------------+
| | -------------------- | -------------------- | -------------------- | ------------------ |
+--------------------------------+----------------------+----------------------+----------------------+--------------------+
| At 31 | 162 | 391 | 20 | 573 |
| December | | | | |
| 2008 | | | | |
+--------------------------------+----------------------+----------------------+----------------------+--------------------+
| | ============= | ============= | ============= | ============ |
+--------------------------------+----------------------+----------------------+----------------------+--------------------+
| Net | | | | |
| book | | | | |
| value | | | | |
+--------------------------------+----------------------+----------------------+----------------------+--------------------+
| At 31 | 51 | 686 | 23 | 760 |
| December | | | | |
| 2007 | | | | |
+--------------------------------+----------------------+----------------------+----------------------+--------------------+
| | | | | |
+--------------------------------+----------------------+----------------------+----------------------+--------------------+
| At 31 | 52 | 959 | 22 | 1,033 |
| December | | | | |
| 2008 | | | | |
+--------------------------------+----------------------+----------------------+----------------------+--------------------+
| | ============ | ============ | ============= | ============ |
+--------------------------------+----------------------+----------------------+----------------------+--------------------+
The net book value of assets held under hire purchase agreements is:
+----------------------------+--------------+--------------+---------------+--------------+
| At 31 | - | 213 | - | 213 |
| December | | | | |
| 2007 | | | | |
+----------------------------+--------------+--------------+---------------+--------------+
| | | | | |
+----------------------------+--------------+--------------+---------------+--------------+
| At 31 | - | 312 | - | 312 |
| December | | | | |
| 2008 | | | | |
+----------------------------+--------------+--------------+---------------+--------------+
| | ============ | ============ | ============= | ============ |
+----------------------------+--------------+--------------+---------------+--------------+
The Company itself has no property, plant and equipment
12. Investments
+---------------------------------------------------+--------------+-------------+
| Company | 2008 | 2007 |
+---------------------------------------------------+--------------+-------------+
| | GBP000 | GBP000 |
+---------------------------------------------------+--------------+-------------+
| Cost and Net Book Values | | |
+---------------------------------------------------+--------------+-------------+
| At 1 January and 31 December | 35,640 | 35,640 |
+---------------------------------------------------+--------------+-------------+
| |============ |=========== |
+---------------------------------------------------+--------------+-------------+
Subsidiary undertakings
+--------------------------------+----------+------------+-------------------+
| Name of Company | Holding | % held | Nature of |
| | | | Business |
+--------------------------------+----------+------------+-------------------+
| | | | |
+--------------------------------+----------+------------+-------------------+
| Hemisphere Properties | Ordinary | 100% | Property |
| (Southern) Limited | | | investment |
+--------------------------------+----------+------------+-------------------+
| | | | |
+--------------------------------+----------+------------+-------------------+
| Bemacroft Limited* | Ordinary | 100% | Property |
| | | | investment |
+--------------------------------+----------+------------+-------------------+
| | | | |
+--------------------------------+----------+------------+-------------------+
| Punch Properties Limited* | Ordinary | 100% | Property |
| | | | investment |
+--------------------------------+----------+------------+-------------------+
| | | | |
+--------------------------------+----------+------------+-------------------+
| Hemisphere Properties | Ordinary | 100% | Property |
| (Northern) Limited | | | investment |
+--------------------------------+----------+------------+-------------------+
| | | | |
+--------------------------------+----------+------------+-------------------+
| Uniplan Assets Limited | Ordinary | 100% | Property |
| | | | investment |
+--------------------------------+----------+------------+-------------------+
| | | | |
+--------------------------------+----------+------------+-------------------+
| Fu Keung Venture Limited | Ordinary | 100% | Property |
| | | | Investment |
+--------------------------------+----------+------------+-------------------+
| | | | |
+--------------------------------+----------+------------+-------------------+
| Lanzhou International Trade | Ordinary | 99% | Property |
| Building Company Limited ** | | | Investment |
+--------------------------------+----------+------------+-------------------+
| | | | |
+--------------------------------+----------+------------+-------------------+
| Ming Kong Property Limited*** | Ordinary | 100% | Property |
| | | | Investment |
+--------------------------------+----------+------------+-------------------+
| | | | |
+--------------------------------+----------+------------+-------------------+
*Held by Hemisphere Properties (Southern) Limited.
** 75% held by Ming Kong Property Limited and 24% held by Fu Keung Venture
Limited.
*** Held by Uniplan Limited
Uniplan Assets Limited and Fu Keung Venture Limited are incorporated in the
British Virgin Islands. Lanzou International Trade Building Company Limited is
formed under the law of the People's Republic of China and Ming Kong Property
Limited is formed under the law of Hong Kong. All other companies are
incorporated in the United Kingdom. All companies are consolidated in the Group
Financial Statements.
13. Non-current assets held for sale
+-----------------------------+-------------+------------+------------+------------+
| | Group | Company |
+-----------------------------+--------------------------+-------------------------+
| | | 2007 | | 2007 |
| | 2008 | | 2008 | |
+-----------------------------+-------------+------------+------------+------------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+-----------------------------+-------------+------------+------------+------------+
| | | | | |
+-----------------------------+-------------+------------+------------+------------+
| Transfer from investment | 1,150 | - | - | - |
| properties | | | | |
+-----------------------------+-------------+------------+------------+------------+
| | =========== | ========== | ========== | ========== |
+-----------------------------+-------------+------------+------------+------------+
The Group is negotiating the sale of part of a floor of the LITBC building.
The carrying value previously included in investment properties has been
transferred to non-current assets held for sale, the consideration for the sale
will be settled by a lender to LITBC accepting the part floor against a loan and
accrued interest at an amount to be agreed
14.Trade and other receivables
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| | Group | Company |
+-----------------------------+---------------------------------------------+---------------------------------------------+
| | 2008 | 2007 | 2008 | 2007 |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| | | | | |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| Trade receivables | 87 | 2 | - | - |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| Amounts owed by group | - | - | 1,071 | 784 |
| undertakings | | | | |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| Other receivables | 94 | 208 | - | - |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| Prepayments and accrued | 9 | 13 | 9 | 12 |
| income | | | | |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| | -------------------- | -------------------- | -------------------- | -------------------- |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| | 190 | 223 | 1,080 | 796 |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| | ========== | ========== | =========== | =========== |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| Trade receivables due | | | | |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| Less than 30 days | 20 | 2 | - | - |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| 30 to 60 days | 37 | - | - | - |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| 61 to 90 days | - | - | - | - |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| Over 90 days | 30 | - | - | - |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| | | | | |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
No debts have been impaired.
15. Property under construction
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| | Group | Company |
+-----------------------------+---------------------------------------------+---------------------------------------------+
| | | 2007 | | 2007 |
| | 2008 | | 2008 | |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| | | | | |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| Property under construction | 19,397 | 18,825 | - | - |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| | -------------------- | -------------------- | -------------------- | -------------------- |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| | 19,397 | 18,825 | - | - |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
| | ============= | ============= | ========== | ============= |
+-----------------------------+----------------------+----------------------+----------------------+----------------------+
16. Inventories
+-----------------------------+--------------------+--------------------+--------------------+--------------------+
| | Group | Company |
+-----------------------------+-----------------------------------------+-----------------------------------------+
| | | 2007 | | 2007 |
| | 2008 | | 2008 | |
+-----------------------------+--------------------+--------------------+--------------------+--------------------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+-----------------------------+--------------------+--------------------+--------------------+--------------------+
| | | | | |
+-----------------------------+--------------------+--------------------+--------------------+--------------------+
| Materials | 30 | 20 | - | - |
+-----------------------------+--------------------+--------------------+--------------------+--------------------+
| | ------------------ | ------------------ | ------------------ | ------------------ |
+-----------------------------+--------------------+--------------------+--------------------+--------------------+
| | 30 | 20 | - | - |
+-----------------------------+--------------------+--------------------+--------------------+--------------------+
| | ============ | ============ | ========= | ============ |
+-----------------------------+--------------------+--------------------+--------------------+--------------------+
Goods charged to profit and loss account in the year amounted to GBP101,000
(2007 - GBP70,000)
17.Trade and other payables
+-----------------------------+---------------------+------------------+-------------------+---------------------+
| | Group | Company |
+-----------------------------+----------------------------------------+-----------------------------------------+
| | | 2007 | 2008 | 2007 |
| | 2008 | | | |
+-----------------------------+---------------------+------------------+-------------------+---------------------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+-----------------------------+---------------------+------------------+-------------------+---------------------+
| | | | | |
+-----------------------------+---------------------+------------------+-------------------+---------------------+
| Trade payables | 1,770 | 1,235 | - | - |
+-----------------------------+---------------------+------------------+-------------------+---------------------+
| Other payables | 1,165 | 1,152 | 100 | 108 |
+-----------------------------+---------------------+------------------+-------------------+---------------------+
| Accruals and deferred | 2,219 | 1,407 | 1,317 | 837 |
| income | | | | |
+-----------------------------+---------------------+------------------+-------------------+---------------------+
| | ------------------- | ---------------- | ----------------- | ------------------- |
+-----------------------------+---------------------+------------------+-------------------+---------------------+
| | 5,154 | 3,794 | 1,417 | 945 |
+-----------------------------+---------------------+------------------+-------------------+---------------------+
| | ============ | ========== | =========== | ============ |
+-----------------------------+---------------------+------------------+-------------------+---------------------+
18.Borrowings
+---------------+------------------+---------------+----------------+------------------+------------------+
| Group | | | | | |
+---------------+------------------+---------------+----------------+------------------+------------------+
| | Bank loans | Shareholder | Convertible | Other | Total |
| | and | Loans | Loans | Loans | |
| | overdrafts | | | | |
+---------------+------------------+---------------+----------------+------------------+------------------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------+------------------+---------------+----------------+------------------+------------------+
| Within one | 2,575 | 3,040 | - | 10,427 | 16,042 |
| year | | | | | |
+---------------+------------------+---------------+----------------+------------------+------------------+
| Between one | - | - | - | - | - |
| and two years | | | | | |
+---------------+------------------+---------------+----------------+------------------+------------------+
| Between two | - | - | - | - | - |
| and five | | | | | |
| years | | | | | |
+---------------+------------------+---------------+----------------+------------------+------------------+
| Over 5 years | - | - | 270 | - | 270 |
+---------------+------------------+---------------+----------------+------------------+------------------+
| | ---------------- | ------------- | -------------- | ---------------- | ---------------- |
+---------------+------------------+---------------+----------------+------------------+------------------+
| | 2,575 | 3,040 | 270 | 10,427 | 16,312 |
+---------------+------------------+---------------+----------------+------------------+------------------+
| | ========== | ======== | ========= | ========== | ========= |
+---------------+------------------+---------------+----------------+------------------+------------------+
The bank loans are secured over the related investment properties.
+---------------+------------------+----------------+-----------------+--------------------+------------------+
| Company | | | | | |
+---------------+------------------+----------------+-----------------+--------------------+------------------+
| | Bank loans | Shareholder | Convertible | Other | Total |
| | and | Loans | Loans | Loans | |
| | overdrafts | | | | |
+---------------+------------------+----------------+-----------------+--------------------+------------------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------+------------------+----------------+-----------------+--------------------+------------------+
| Within one | - | 3,040 | - | - | 3,040 |
| year | | | | | |
+---------------+------------------+----------------+-----------------+--------------------+------------------+
| Between one | - | - | - | - | - |
| and two years | | | | | |
+---------------+------------------+----------------+-----------------+--------------------+------------------+
| Between two | - | - | - | - | - |
| and five | | | | | |
| years | | | | | |
+---------------+------------------+----------------+-----------------+--------------------+------------------+
| Over 5 years | - | - | 270 | - | 270 |
+---------------+------------------+----------------+-----------------+--------------------+------------------+
| | ---------------- | -------------- | --------------- | ------------------ | ---------------- |
+---------------+------------------+----------------+-----------------+--------------------+------------------+
| | - | 3,040 | 270 | - | 3,310 |
+---------------+------------------+----------------+-----------------+--------------------+------------------+
| | ========== | ========= | ========= | =========== | ========= |
+---------------+------------------+----------------+-----------------+--------------------+------------------+
Creditors include finance capital which is due for repayment as follows:
+-------------------------------+----------------+--------------+-----------+-----------+
| | Group | Company |
+-------------------------------+-------------------------------+-----------------------+
| | | 2007 | 2008 | 2007 |
| | 2008 | | | |
+-------------------------------+----------------+--------------+-----------+-----------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+-------------------------------+----------------+--------------+-----------+-----------+
| Amounts repayable: | | | | |
+-------------------------------+----------------+--------------+-----------+-----------+
| In one year or less or on | 16,042 | 11,029 | 3,040 | 1,977 |
| demand | | | | |
+-------------------------------+----------------+--------------+-----------+-----------+
| In more than one year but | - | 24 | - | - |
| less than two | | | | |
+-------------------------------+----------------+--------------+-----------+-----------+
| In more than five years | 270 | 270 | 270 | 270 |
+-------------------------------+----------------+--------------+-----------+-----------+
| | -------------- | ------------ | --------- | --------- |
+-------------------------------+----------------+--------------+-----------+-----------+
| | 16,312 | 11,323 | 3,310 | 2,247 |
+-------------------------------+----------------+--------------+-----------+-----------+
| | ========= | ======== | ====== | ====== |
+-------------------------------+----------------+--------------+-----------+-----------+
| Bank Loan Floating rate 8% to | 2,575 | 1,871 | - | - |
| 12% | | | | |
+-------------------------------+----------------+--------------+-----------+-----------+
| Shareholder loans 12% | 3,040 | 1,977 | 3,040 | 1,977 |
+-------------------------------+----------------+--------------+-----------+-----------+
| Related party loan floating | 10,347 | 7,133 | - | - |
| rate 8% to 12% | | | | |
+-------------------------------+----------------+--------------+-----------+-----------+
| Convertible notes bank base | 270 | 270 | 270 | 270 |
| rate | | | | |
+-------------------------------+----------------+--------------+-----------+-----------+
| Hire Purchase loans | 80 | 72 | - | - |
+-------------------------------+----------------+--------------+-----------+-----------+
| | -------------- | ------------ | --------- | --------- |
+-------------------------------+----------------+--------------+-----------+-----------+
| | 16,312 | 11,323 | 3,310 | 2,247 |
+-------------------------------+----------------+--------------+-----------+-----------+
| | ========= | ======== | ====== | ====== |
+-------------------------------+----------------+--------------+-----------+-----------+
Borrowings continued
Shareholder loans are unsecured. No specific date is set for repayment. Interest
is accruing, but is not being paid.
The convertible redeemable loan is unsecured, and subject to certain
restrictions, is convertible into ordinary shares at 6p per share. If the holder
has not had an opportunity to convert within 12 months of issue the holder is
entitled to redeem the loan note on giving notice. Interest is payable
bi-annually at the base rate of Barclays Bank and the final redemption date is
31 December 2020. No equity element is shown in the accounts as this is deemed
to be immaterial.
19. Deferred Tax
+------------------------------------+----------------+--------------+-----------+-----------+
| | Group | Company |
+------------------------------------+-------------------------------+-----------------------+
| | | 2007 | 2008 | 2007 |
| | 2008 | | | |
+------------------------------------+----------------+--------------+-----------+-----------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
| | | | | |
+------------------------------------+----------------+--------------+-----------+-----------+
| | | | | |
+------------------------------------+----------------+--------------+-----------+-----------+
| As at 1 January | 5,600 | 5,600 | - | - |
+------------------------------------+----------------+--------------+-----------+-----------+
| Deferred tax of deficit in | (15) | - | - | - |
| valuation | | | | |
+------------------------------------+----------------+--------------+-----------+-----------+
| | -------------- | ------------ | --------- | --------- |
+------------------------------------+----------------+--------------+-----------+-----------+
| As at 31 December | 5,585 | 5,600 | - | - |
+------------------------------------+----------------+--------------+-----------+-----------+
| | ========= | ======== | ====== | ====== |
+------------------------------------+----------------+--------------+-----------+-----------+
| | | | | |
+------------------------------------+----------------+--------------+-----------+-----------+
| The elements of the deferred tax provision are as follows: | |
+--------------------------------------------------------------------------------+-----------+
| | | | | |
+------------------------------------+----------------+--------------+-----------+-----------+
| Property under construction | 5,247 | 5,247 | - | - |
+------------------------------------+----------------+--------------+-----------+-----------+
| Revalued investment property | 338 | 353 | - | - |
+------------------------------------+----------------+--------------+-----------+-----------+
| | -------------- | ------------ | --------- | --------- |
+------------------------------------+----------------+--------------+-----------+-----------+
| | 5,585 | 5,600 | - | - |
+------------------------------------+----------------+--------------+-----------+-----------+
| | ========= | ======== | ====== | ====== |
+------------------------------------+----------------+--------------+-----------+-----------+
| | | | | |
+------------------------------------+----------------+--------------+-----------+-----------+
20 Operating leases
Receivable
The Group leases the investment property to various tenants. Terms vary from 5
to 10 years with one small area on a month to month tenancy. Rentals are subject
to regular reviews.
The future minimum lease payments receivable under the operating leases are
as follows:
+--------------------------------------------------+----------------------+----------------------+
| | 2008 | 2007 |
+--------------------------------------------------+----------------------+----------------------+
| | GBP000 | GBP000 |
+--------------------------------------------------+----------------------+----------------------+
| | | |
+--------------------------------------------------+----------------------+----------------------+
| Not later than 1 year | 658 | 377 |
+--------------------------------------------------+----------------------+----------------------+
| Between two and five years | 1,574 | 1,021 |
+--------------------------------------------------+----------------------+----------------------+
| Later than five years | 262 | 332 |
+--------------------------------------------------+----------------------+----------------------+
| | -------------------- | -------------------- |
+--------------------------------------------------+----------------------+----------------------+
| | 2,494 | 1,730 |
+--------------------------------------------------+----------------------+----------------------+
| | =============== | =============== |
+--------------------------------------------------+----------------------+----------------------+
20 Operating leases continued
Payable
The Group lease the hospital property under a fiver year lease with a review at
the end of five years.
The future minimum lease payments payable under the operating leases are as
follows:
+--------------------------------------------------+------------------+------------------+
| | 2008 | 2007 |
+--------------------------------------------------+------------------+------------------+
| | GBP000 | GBP000 |
+--------------------------------------------------+------------------+------------------+
| | | |
+--------------------------------------------------+------------------+------------------+
| Not later than 1 year | 143 | 115 |
+--------------------------------------------------+------------------+------------------+
| Between two and five years | 547 | 671 |
+--------------------------------------------------+------------------+------------------+
| Later than five years | - | - |
+--------------------------------------------------+------------------+------------------+
| | ---------------- | ---------------- |
+--------------------------------------------------+------------------+------------------+
| | 690 | 786 |
+--------------------------------------------------+------------------+------------------+
| | ======== | ======== |
+--------------------------------------------------+------------------+------------------+
21 Finance leases and hire purchase contracts
The future minimum payments payable under hire purchase contracts are:
+--------------------------------------------------+-------------------+-------------------+
| | 2008 | 2007 |
+--------------------------------------------------+-------------------+-------------------+
| | GBP000 | GBP000 |
+--------------------------------------------------+-------------------+-------------------+
| | | |
+--------------------------------------------------+-------------------+-------------------+
| Not later than 1 year | 80 | 50 |
+--------------------------------------------------+-------------------+-------------------+
| Between two and five years | - | 24 |
+--------------------------------------------------+-------------------+-------------------+
| Later than five years | - | - |
+--------------------------------------------------+-------------------+-------------------+
| | ----------------- | ----------------- |
+--------------------------------------------------+-------------------+-------------------+
| | 80 | 74 |
+--------------------------------------------------+-------------------+-------------------+
| | ========= | ========= |
+--------------------------------------------------+-------------------+-------------------+
22.Related party transactions
During the period, Wong Wing Hay, a shareholder of the Group continued to loan
monies to the Group. Interest of GBP299,164 (2007 - GBP148,953) was charged to
profit and loss. At the balance sheet date the Group owed GBP2,634,113 (2007 -
GBP1,679,448) to Wong Wing Hay.
John Ho, a director and shareholder of the Group, is also a shareholder of
Estrigeat Limited. During the period Estrigeat Limited continued to loan monies
to the group. Interest of GBP9,532 (2007 - GBP5,258) was charged to profit and
loss. At the balance sheet date the Group owed GBP79,438 (2007 - GBP58,161) to
Estrigeat Limited.
Zhan Chun Hu, a director, is a director and majority shareholder of Gansau
Ecnomic Co-operation Commerce Trade Company Limited (GECC). During the year
GECC continued to loan monies to the Group. Interest of GBP686,065 (2007 -
GBP978,335) was charged to profit and loss. At the balance sheet date the Group
owed GBP9,987,966 (2007 - GBP7,132,710) to GECC.
Two further loans to the Group are personally guaranteed by John Ho. Interest of
GBP31,775 (2007 GBP20,249) was charged to profit and loss. At the balance sheet
date the Group owed GBP264,793 (2007 - GBP239,105) to these lenders.
Directors' emoluments have been accrued in the accounts. The total amount due at
balance sheet date was GBP428,439 (2007 - GBP316,439)
23. Ultimate Controlling Party
In the opinion of the directors, there is no ultimate controlling party.
24.Share capital
Authorised share capital:
+--------------------------------------------------+-------------+-------------+
| | 2008 | 2007 |
+--------------------------------------------------+-------------+-------------+
| | GBP000 | GBP000 |
+--------------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------------+-------------+-------------+
| 1,500,000,000 Ordinary Shares of 1p each | 15,000 | 15,000 |
+--------------------------------------------------+-------------+-------------+
| | =========== | =========== |
+--------------------------------------------------+-------------+-------------+
Allotted and called up:
+--------------------------------------------------+-------------+-------------+
| | 2008 | 2007 |
+--------------------------------------------------+-------------+-------------+
| | GBP000 | GBP000 |
+--------------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------------+-------------+-------------+
| 728,375,495 Ordinary Shares of 1p each (2007: | 7,283 | 7,283 |
| 728,375,495 Ordinary Shares of 1p each) | | |
+--------------------------------------------------+-------------+-------------+
| | =========== | =========== |
+--------------------------------------------------+-------------+-------------+
.
25. Capital commitments
At 31 December 2008, the Group was contractually committed to GBPnil (2007 -
GBPnil) of future expenditure for the purchase, construction and development of
investment property.
1. Statutory information
The financial information set out in this announcement does not constitute the
Group's statutory financial statements for the year ended 31 December 2008 but
is derived from those financial statements.
The financial information is extracted from the audited financial statements of
the Group for the year ended 31 December 2008 which were approved by the Board
of Directors on 29 June 2009. The Company's auditors, Littlejohn LLP, have
reported on the accounts for the period ended 31 December 2008 under section 495
of the Companies Act 2006 ('Act'). Their report was unqualified and did not
contain statements made under section 498 (2) and section 498 (3) of the Act.
Copies of the full financial statements will be posted to shareholders today.
The financial statements for the year ended 31 December 2008 will be delivered
to the Registrar of Companies in July 2009.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UKVVRKRRNUAR
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