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Glorious Property
130
Annual Report 2011
Notes to the Consolidated Financial Statements
(Continued)
31 December 2011
19 Reserves
(a) COMPANY RESERVES
RMB’000
Other
reserve
Employee
share-based
compensation
reserve
Accumulated
losses
Total
(note (d))
Balance at 1 January 2010
264,317
69,898 (1,923,459)
(1,589,244)
Total comprehensive loss for the year
—
— (219,325)
(219,325)
Employee share-based compensation (note 39)
— 70,293
— 70,293
2009 final dividend
—
— (233,779)
(233,779)
Balance at 31 December 2010
264,317
140,191 (2,376,563)
(1,972,055)
Total comprehensive loss for the year
—
— (235,039)
(235,039)
Employee share-based compensation (note 39)
— 36,346
— 36,346
Balance at 31 December 2011
264,317
176,537 (2,611,602)
(2,170,748)
(b) MERGER RESERVE
Merger reserve arises from merger accounting for reorganisation of the Group completed in 2007.
(c) STATUTORY RESERVE
In accordance with the relevant regulations and their articles of association, the Company’s subsidiaries
incorporated in the PRC are required to allocate at least 10% of their after-tax profit according to PRC accounting
standards and regulations to the general statutory reserve until such reserve has reached 50% of registered capital.
Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the
respective board of directors of the subsidiaries. These reserves can only be used for specific purposes and are not
distributable or transferable in the form of loans, advances, or cash dividends. During the year ended 31 December
2011, appropriation to the general statutory reserve amounted to RMB131,260,000 (2010: RMB15,867,000).
(d) OTHER RESERVE
It represents the 0.7% and 0.5% equity interests in the Company contributed by Best Era International Limited, the
immediate holding company of the Company and is wholly-owned by Mr. Zhang Zhi Rong, in connection with the
Group’s financing activities in 2007 and 2009 respectively.