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145
Glorious Property
Annual Report 2011
Notes to the Consolidated Financial Statements
(Continued)
31 December 2011
36 Related Party Transactions
(Continued)
(b) BALANCES WITH RELATED PARTIES
As at 31 December 2010 and 2011, the Group had the following significant balances with related parties:
RMB’000
2011
2010
Balances included in current assets:
Prepayments to related companies for construction costs or purchase
of services — included in “Prepayments”
— Shanghai Ditong
1,606,429
1,316,600
— Other related companies
1,991
599
1,608,420
1,317,199
Loan to/amount due from a jointly controlled entity
1,967,905
1,903,472
Balances included in current liabilities:
Trading balances — included in “Trade payables”
— Other related companies
3,524
5,510
Except for the loan to/amount due from a jointly controlled entity, the terms of which is disclosed in note 10(a), as
at 31 December 2010 and 2011, all other balances with related parties were unsecured, interest free and repayable
on demand.
(c) KEY MANAGEMENT COMPENSATION
RMB’000
2011
2010
Salaries and other short-term employee benefits
39,526
30,079
Share-based compensation expenses
30,446
64,955
69,972
95,034
(d) OTHER RELATED PARTY TRANSACTIONS
On 20 November 2009, the Group entered into a share purchase agreement with Jiangsu Rongsheng Shipbuilding
Co., Ltd. (“Jiangsu Rongsheng”), a company in which Mr. Zhang Zhi Rong, the Company’s director and ultimate
majority shareholder, holds a controlling stake, to acquire 100% of the equity interests in two subsidiaries of Jiangsu
Rongsheng, namely Shanghai Rongxiang Property Development Co., Ltd. (“Shanghai Rongxiang”) and Shanghai
Jinhao Property Development Co., Ltd. (“Shanghai Jinhao”), that acquired the land use rights for two parcels of land
located in Xuhui District, Shanghai, for a total consideration of RMB2.0 billion. The transaction was completed
during the year ended 31 December 2010.
37 Financial Guarantees
The Group has arranged bank financing for certain purchasers of the Group’s property units and provided
guarantees to secure obligations of such purchasers for repayments. Such guarantees terminate upon the earlier of
(i) issuance of the real estate ownership certificate which will generally be available within an average period of
one to two years upon the completion of guarantee registration; or (ii) the full repayment of mortgaged loan by the
purchasers of properties.