Notes to the Consolidated Financial Statements
For the year ended 31 December 2010
19.Interest in a jointy controlled entity
Cost of investment in a jointly controlled entity Share of post acquisition results and other comprehensive income
On 15 October 2009, a subsidiary of Wealth Joy (defined in note 2) successfully tendered for a plot of land at a consideration of RMB734 million (equivalent to approximately HK$835 million) in Donggang area, Renmin Road East, which is the commercial and financial centre of Dalian, PRC (the “Land”). RMB520 million (equivalent to approximately HK$591 million) had been paid as a deposit for the leasehold land (the “Deposit”) as at 31 December 2009.
On 5 February 2010, a subscription and shareholders’ agreement (the “ Agreement”) was signed between Queenbrook Investments Limited (“Queenbrook”), the immediate holding company of Wealth Joy, and an independent third party investor (the “Investor”) for jointly developing the Land (the “Project”). Completion of the Agreement took place on 26 February 2010 and 50% of issued share capital of Wealth Joy was disposed to the Investor at a consideration of HK$295,500,000, which was equal to its share of net identifiable assets at the date of completion of the Agreement. Pursuant to the Agreement, the financial and operating policies of Wealth Joy require unanimous consent from the Group and the Investor. Since then, Wealth Joy became a jointly controlled entity (“JCE”) of the Group. After the disposal, each of the Group and the Investor had further injected capital of HK$224,612,000 to the JCE for funding the development of the Project during the period. The Group’s interest in the JCE amounted to HK$525,301,000 as at 31 December 2010.
Particulars regarding the jointly controlled entity are set out in note 42.
Great Eagle Holdings Limited