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Glorious Property
146
Annual Report 2011
Notes to the Consolidated Financial Statements
(Continued)
31 December 2011
37 Financial Guarantees
(Continued)
Pursuant to the terms of the guarantees, upon default in mortgage payments by these purchasers, the Group is
responsible to repay the outstanding mortgage principals together with accrued interest and penalty owed by
the defaulted purchasers to the banks and the Group is entitled to take over the legal title and possession of
the related properties. The Group’s guarantee period starts from the dates of grant of the mortgages. As at 31
December 2011, the amount of outstanding guarantees for mortgages were approximately RMB6,148,378,000
(2010: RMB4,389,538,000). The maximum credit risk exposure at balance sheet date is the amount of outstanding
guarantees.
The directors consider that the likelihood of default in payments by purchasers is minimal and therefore the
financial guarantees measured at fair value is immaterial.
38 Accounting of Acquisition
During the year ended 31 December 2011, the Group completed the acquisition of the shares of the following
companies:
% of
equity
acquired
Date of
incorporation
Place of
incorporation
Issued/paid-in/
registered capital Principal activities
Glorious Yangguang Xindi (Dalian)
Property Co., Ltd. (a)
㛬ସජΈ㒥ήɽஹໄุϞࠢʮ̡
(formerly known as Zhongchengjian
(Dalian) Property Development
Co., Ltd.
ʕ۬ܔɽஹגήପක೯Ϟࠢʮ̡
(referred as to “Glorious Yangguang
Dalian”)
70% 3 November 2009 the PRC
RMB300,000,000 Property
development
Wachovian II Co. Pte. Ltd. (a)
100% 14 August 2007
Singapore
SGD10 Investment holding
Jiangsu Chuangyi Cultural Property
Foundation Investment and
Construction Co., Ltd.
Ϫᘽ௴จ˖ʷପุਿήҳ༟ܔண
Ϟࠢʮ̡
(a)
100% 16 January 2007 the PRC
RMB88,670,000 Investment holding
Jiangsu Arts and Cultural Property
Holdings Ltd. (a)
Ϫᘽစᖵ˖ʷପٰุ΅Ϟࠢʮ̡
(collectively referred as to “Jiangsu
Cultural Property Group”)
54% 8 May 2004
the PRC
RMB50,000,000 Culture and property
development
Better Score Limited (b)
100% 25 February 2009 the BVI
US$1 Investment holding
Greater Base Limited (b)
ਿམϞࠢʮ̡
100% 3 March 2009
Hong Kong
HK$1 Investment holding
Nantong Jiju Foundation Facilities
Construction Co., Ltd. (b)
یஷਿམਿᓾண݄ܔணϞࠢʮ̡
100% 27 April 2009
the PRC
US$3,000,000 Investment holding