CHINA MERCHANTS HOLDINGS (PACIFIC) LTD Full Year Financial Statement And Dividend Announcement for the Year Ended 31 December 2015
Consolidated Income Statement
Cost of sales
Other operating income Administrative expenses
Group | ||
Year ended 31 December | ||
2015 | 2014 | Change |
HK$'000 | HK$'000 | % |
2,207,801 | 2,019,494 | 9 |
(910,173) | (906,503) | 0 |
1,297,628 | 1,112,991 | 17 |
65,328 | 113,416 | (42) |
(118,656) | (103,927) | 14 |
(34,748) | (1,574) | 2,108 |
(168,023) | (124,953) | 34 |
22,042 | 23,652 | (7) |
232,577 | 264,417 | (12) |
1,296,148 | 1,284,022 | 1 |
(338,176) | (288,500) | 17 |
957,972 | 995,522 | (4) |
- | 64,092 | N.M. |
957,972 | 1,059,614 | (10) |
597,221 | 739,415 | (19) |
360,751 | 320,199 | 13 |
957,972 | 1,059,614 | (10) |
(i)
(i)
(ii)
(iii)
Other operating expenses
(iv)
Finance costs
(v)
Subsidy income
(vi)
Share of results of joint ventures, net of tax
(vii)
Income tax expense
Profit from continuing operations, net of tax
(viii)
Profit from discontinued operation, net of tax
Consolidated Statement Of Comprehensive Income
Group | ||
Year ended 31 December | ||
2015 | 2014 | Change |
HK$'000 | HK$'000 | % |
957,972 | 1,059,614 | (10) |
(832,846) | (44,125) | 1,787 |
- | (80,960) | (100) |
(832,846) | (125,085) | 566 |
125,126 | 934,529 | (87) |
(83,290) | 626,521 | (113) |
208,416 | 308,008 | (32) |
125,126 | 934,529 | (87) |
Translation differences arising on consolidation
Reclassification to income statement upon disposal of discontinued operations
N.M.: Not Meaningful
On 27 September 2013, the Company entered into a conditional sale and purchase agreement with China Merchants Properties Development Limited, an indirect wholly-owned subsidiary of China Merchants Group, to dispose of its entire interests in CMPNZ. The property business in New Zealand had been accounted for as disposal group classified as held-for-sale since 2012. The disposal was completed on 16 April 2014.
On 21 July 2014, the Company entered into a conditional sale and purchase agreement to indirectly acquire a 100 per cent. equity interest in Honest Queen International (Jiangxi) Jiurui Expressway Development Co., Ltd through Hong Kong Honest Queen International Investment Limited, a company incorporated in Hong Kong. Honest Queen International (Jiangxi) Jiurui Expressway Development Co., Ltd owns the rights to operate the Jiurui Expressway (Jiujiang-Ruichang Section), an expressway located in Jiangxi Province, People's Republic of China.
Pursuant to the sale and purchase agreement, the acquisition of Jiurui Expressway was completed on 9 September 2014 and the financial results of Jiurui Expressway have been consolidated to the Group's accounts as a subsidiary since then.
On 23 June 2015, three directly wholly-owned subsidiaries of the Company entered into three conditional sale and purchase agreements to acquire 100 per cent equity interests in Guangxi Guixing Expressway Investment and Construction Co., Ltd. (the "Guixing Target"), Guangxi Guiwu Expressway Guiyang Section Investment and Construction Co., Ltd. (the "Guiyang Target") and Guangxi Huatong Expressway Co., Ltd. (the "Yangping Target"). Guixing Target owns the rights to operate the Guilin - Xing'an Expressway ("Guixing Expressway"). Guiyang Target owns the rights to operate the Guilin - Yangshuo Expressway ("Guiyang Expressway"). Yangping Target owns the rights to operate the Yangshuo - Pingle Expressway ("Yangping Expressway").
Pursuant to the sale and purchase agreement in relation to the acquisition of Yangping Expressway, the acquisition of Yangping Expressway was completed on 23 September 2015 and the financial results of Yangping Expressway have been consolidated to the Group's accounts as a subsidiary since then.
Pursuant to the sale and purchase agreement in relation to the acquisition of Guixing Expressway, the acquisition of Guixing Expressway was completed on 16 October 2015 and the financial results of Guixing Expressway have been consolidated to the Group's accounts as a subsidiary since then. |
Pursuant to the sale and purchase agreement in relation to the acquisition of Guiyang Expressway, the acquisition of Guiyang Expressway was completed on 16 October 2015 and the financial results of Guiyang Expressway have been consolidated to the Group's accounts as a subsidiary since then. |
Notes to Income Statement |
The Group currently operates eight toll roads, they are Yongtaiwen Expressway, Beilun Port Expressway, Jiurui Expressway, three Guangxi Expressways, Gui Liu Expressway and Gui Huang Highway. Yongtaiwen Expressway, Beilun Port Expressway, Jiurui Expressway, three Guangxi Expressways are accounted for as subsidiaries and contribute most of the Group revenue. Gui Liu Expressway and Gui Huang Highway are accounted for as joint ventures using the equity method. Toll revenue from these joint ventures is not included in Group revenue and contribution from them is mainly recognised below the operating level. |
(i). Group revenue and gross profit for the year ended 31 December 2015 increased 9% and 17% respectively compared to the previous year. The increase in Group revenue was largely attributable to the consolidation of three Guangxi Expressways within the year, the revenue growth of Yongtaiwen Expressway, and full year revenue contribution from Jiurui Expressway in 2015, offset by contribution decrease slightly from Beilun Port Expressway. Group gross profit was up mainly due to aforesaid increased revenue contribution and stable cost of sales against revenue increase. |
(ii). Other operating income decreased mainly due to absence of exchange gain recorded in 2014, lesser bargain purchase gain arose from the acquisitions of three Guangxi Expressways in 2015 compared to bargain purchase gain of HK$22.7 million arose from the acquisition of Jiurui Expressway in 2014, lower deferred income and effective interest income on other receivables relating to compensation granted by local government authorities as a result of the relocation and removal of certain toll stations along Gui Huang Highway (Please refer to the announcement dated 23 January 2014 for details). |
(iii). Administrative expenses increased mainly due to cost increase in relation to acquisitions of three Guangxi Expressways, consolidation result from the thee Guangxi Expressways, and full year result presentation of Jiurui Expressway. |
(iv). Other operating expenses increased mainly due to higher exchange loss as a result of RMB currency depreciation against HK$ in translation at consolidation level. |
(v). Finance costs increased mainly due to higher bank borrowing amount and higher USD interest rate. |
(vi). Subsidy income is granted by the Sino joint venture partner of Gui Huang joint ventures from 1 January 2001 to 31 December 2015 in accordance to the original joint venture agreement and is extended to 31 October 2017 subsequently according to the supplemental contract signed in December 2013 in view of the reduction of concession period by six years for Gui Huang Class 1 Highway (Please refer to the Company's announcement dated 20 December 2013 for further details). Subsidy income, calculated based on 40% of the non-cash expenses (mainly depreciation and amortisation charges) of the joint ventures, decreased as a result of the decrease in amortisation of toll road operating rights in the current period following the change in the concession period. |
(vii). Share of results of joint ventures relates to the contributions from the Group's two toll roads, namely Gui Liu Expressway and Gui Huang Highway. The details are set out in item 8. |
(viii). Income tax expense increased as a result of higher income tax expense registered by Yongtaiwen Expressway, Beilun Port Expressway, and Jiurui Expressway and the consolidation of results of three Guangxi Expressways. |
(ix) Additional disclosures
Group | ||
Year ended 31 December | ||
2015 | 2014 | Change |
HK$'000 | HK$'000 | % |
34,022 | 25,180 | 35 |
(544,156) | (480,415) | 13 |
(22,215) | (25,323) | (12) |
(798) | (57) | 1,300 |
- | (185) | (100) |
(30,386) | 31,068 | (198) |
- | 66,319 | (100) |
Interest income*
Amortisation of intangible assets**
Depreciation of property, plant and equipment
(Loss)/Gain on disposal of property, plant and equipment***
Intangible assets written off
Foreign exchange gain/(loss)****
Gain on disposal of discontinued operation
*Interest income increased due to higher fixed deposit savings amount and higher fixed deposit saving interest rate.
**Amortisation expenses increased mainly due to consolidation of three Guangxi Expressways, and the increase in amortisation expenses by other toll road subsidiaries based on a units-of-usage basis.
***Loss on disposal of property, plant and equipment increased mainly due to loss on disposal of equipment from Yongtaiwen Expressway.
****Foreign exchange loss arose from the depreciation of RMB against Hong Kong dollar.
China Merchants Holdings (Pacific) Ltd. issued this content on 25 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 10 March 2016 01:57:15 UTC
Original Document: http://www.cmhp.com.sg/resources/ck/files/FY2015-Results.pdf
