X hits on this document





145 / 159

34.Retirement benefit schemes

The Group has established various retirement benefit schemes for the benefit of its staff in Hong Kong and overseas. In Hong Kong, the Group operates several defined contribution schemes for qualifying employees. The schemes are registered under the Occupational Retirement Schemes Ordinance. The assets of the schemes are administered by independent third parties and are held separately from the Groups assets. The schemes are funded by contributions from both employees and employers at rates ranging from 5% to 10% of the employees basic monthly salary. Arrangements for staff retirement benefits of overseas employees vary from country to country and are made in accordance with local regulations and custom.

The Occupational Retirement Scheme in Hong Kong had been closed to new employees as a consequence of the new Mandatory Provident Fund Pension Legislation introduced by The Government of Hong Kong Special Administration Region in 2000.

From 1 December 2000 onwards, new staff in Hong Kong joining the Group are required to join the new Mandatory Provident Fund Scheme. The Group is required to contribute 5% to 10%, while the employees are required to contribute 5% of their salaries to the Scheme.

Forfeited contributions to retirement schemes for the year ended 31 December 2010 amounting to HK$572,000 (2009: HK$1,333,000) have been used to reduce the existing level of contributions. Total contributions to retirement fund schemes for the year ended 31 December 2010 charged to the consolidated income statement amounted to HK$42,443,000 (2009: HK$40,090,000). As at 31 December 2010, contributions of HK$254,000 (2009: HK$414,000) due in respect of the year had not been paid over to the schemes.

  • 35.

    Major non-cash transactions

    • (a)

      During the year ended 31 December 2010, as explained in note 18 (b), the Group was able to exert significant influence over Champion REIT and reclassified available-for-sale investment of HK$9,290,443,000 (2009: nil) and held-for-trading investments of HK$136,335,000 (2009: nil) to the investment in an associate thereafter.

  • (b)

    During the year ended 31 December 2010, 112,859 (2009: 12,162,356) shares of HK$0.50 each in the Company were issued at HK$19.94 (2009: HK$12.87) per share as scrip dividends.

  • (c)

    During the year ended 31 December 2010, management service income of HK$181,042,000 (2009: HK$205,107,000) was earned as manager of Champion REIT in which HK$113,063,000 (2009: HK$205,107,000) is required to be settled in the form of units of Champion REIT. An amount of HK$59,311,000 (2009: HK$105,194,000) and HK$34,306,000 (2009: nil) were settled through receipt of units issued by Champion REIT and by cash, respectively. The remaining balance of HK$87,425,000 (2009: HK$99,913,000) and HK$33,673,000 (2009: nil) will be settled through receipt of units issued by Champion REIT and by cash, respectively, subsequent to the year end.


During the year ended 31 December 2010, 37,160,820 (2009: 187,156,545) units of Champion REIT were received in lieu of cash in regards of the distributions for the year ended 31 December 2009 amounting to HK$129,632,000 (2009: HK$440,775,000) on initial recognition. The units were classified as available-for-sale investments and are held for long term purpose prior to July 2010 and reclassified to interests in associates thereafter (note 18(b)).

Annual Report 2010


Document info
Document views616
Page views616
Page last viewedSun Jan 22 17:35:12 UTC 2017