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119
Glorious Property
Annual Report 2011
Notes to the Consolidated Financial Statements
(Continued)
31 December 2011
10 Investment in a Jointly Controlled Entity
RMB’000
2011
2010
Investment in a jointly controlled entity
25,767
29,910
Loan to/amount due from a jointly controlled entity (a)
1,967,905
1,903,472
The Group’s investment in a jointly controlled entity represents the 60% equity interest in Glorious Jiangxu (Nanjing)
Property Development Co., Ltd.
㛬ସϪϛیԯגήପක೯Ϟࠢʮ̡
(“Nanjing Jiangxu”). Nanjing Jiangxu is an
entity established in the PRC.
The following amounts represent the Group’s share of the assets and liabilities, and income and results of the
jointly control entity. They are included in the Group’s consolidated balance sheet and consolidated statement of
comprehensive income:
RMB’000
2011
2010
Assets:
Non-current assets
3,571
2,156
Current assets
2,171,254
1,947,149
2,174,825
1,949,305
Liabilities:
Non-current liabilities
1,279,997
—
Current liabilities
869,061
1,919,395
2,149,058
1,919,395
Net assets
25,767
29,910
Income
—
—
Expenses, including income tax
(4,143)
(50,090)
Loss for the year
(4,143)
(50,090)
(a) The loan to/amount due from a jointly controlled entity is unsecured, has no fixed terms of repayment and
bears interest that is agreed with Nanjing Jiangxu and its joint venture partner by making references to the
interest rates of loans prevailing in the market of similar nature. As at 31 December 2011, the annual interest
rate is 10% (2010: 5.4%). In the year of 2011, Shanghai Xintai Property Development Co., Ltd., an indirectly
wholly-owned subsidiary of the Company and holds the 60% equity interest in Nanjing Jiangxu, committed to
Nanjing Jiangxu in written that a twelve-month prior notice will be given should it requires repayment of such
loan by Nanjing Jiangxu, thus the balance has been reclassified from current assets to non-current assets. The
carrying value of the loan to/amount due from a jointly controlled entity approximates its fair value.