TIDMVNL
RNS Number : 8727A
VinaLand Limited
29 March 2017
29 March 2017
VinaLand Limited
Interim results for the six months ended 31 December 2016
VinaLand Limited ("the Company" or "VNL"), the AIM-quoted
investment vehicle established to target strategic segments within
Vietnam's emerging real estate market, today announces its interim
results for the six months ended 31 December 2016 ("the
Period").
Financial highlights:
-- Net Asset Value ("NAV") of USD 318.2 million (30 June 2016: USD336.8 million); and,
-- NAV per share of USD0.89 (30 June 2016: USD0.86).
Operational highlights:
During the Period, VNL has completed the divestment of three
projects and made considerable progress on other pending disposals.
The three projects sold were:
-- The Resort Project, located in Danang, resulting in net cash
proceeds of USD7.0 million to the Company;
-- Project Ceana in Quang Nam, resulting in net cash proceeds of
USD7.6 million to the Company; and,
-- Project BD in Binh Duong, resulting in net cash proceeds of
USD10.9 million to the Company.
Notes to Editors:
VinaCapital is a leading investment management and real estate
development firm headquartered in Vietnam, with a diversified
portfolio of USD1.8 billion in assets under management.
Founded in 2003, VinaCapital boasts an unrivalled local network,
providing the company with access to unique investment
opportunities. VinaCapital's mission is to continue to offer
institutional solutions for a variety of clients that can best
extract the dynamic development taking place in Vietnam and the
ASEAN region as a whole. This mission is instilled in each of
VinaCapital's industry-leading asset class teams covering capital
markets, private equity, fixed income, venture capital, real estate
and infrastructure.
VinaCapital has managed three closed-end funds trading on the
AIM Market of the London Stock Exchange, VinaCapital Vietnam
Opportunity Fund Limited, VinaLand Limited and Vietnam
Infrastructure Limited. In addition, VinaCapital co-manages the DFJ
VinaCapital L.P. technology venture capital fund with Draper Fisher
Jurvetson and also holds a stake in VinaWealth, a locally
incorporated fund management company. Further, VinaCapital manages
an open ended UCITS fund called the Forum One - VCG Partners
Vietnam Fund, Vietnam's largest open-ended UCITS-compliant
fund.
VinaCapital employs a bottom-up, fundamental analysis approach
to valuation within a disciplined risk management framework, and
possesses one of Vietnam's leading in-house research teams to
uncover value opportunities.
With offices in Ho Chi Minh City, Hanoi, Danang and Singapore,
VinaCapital offers insight, expertise and an on the ground presence
unrivalled in the ASEAN region. For more information about
VinaCapital, please visit www.vinacapital.com or reach out directly
to info@vinacapital.com.
The financial statements will be posted to shareholders and are
available on the Company's website at www.vnl-fund.com
Enquiries:
Jonathan Viet Luu
VinaCapital Investment Management Limited
Investor Relations
+84 8 3821 9930
jonathan.luu@vinacapital.com
Joel Weiden
VinaCapital Investment Management Limited
Communications
+84 8 3821 9930
joel.weiden@vinacapital.com
Philip Secrett
Grant Thornton UK LLP, Nominated Adviser
+44 (0)20 7383 5100
philip.j.secrett@uk.gt.com
David Benda / Hugh Jonathan
Numis Securities Limited, Broker
+44 (0)20 7260 1000
funds@numis.com
Daniel Jason
Peregrine Communications, Public Relations (London)
+44 (0) 20 3040 0872
daniel.jason@peregrinecommunications.com
Chairman's Statement
Dear Shareholders,
I am pleased to report that VinaLand Limited (the "Company",
"VNL") has continued to make steady progress during the interim
period from 1 July 2016 to 31 December 2016, both in terms of
securing shareholder approval for a new strategy at the EGM, as
well as in disposing of projects and making distributions to
shareholders.
EGM/AGM
In November, the Company held an Extraordinary General Meeting
("EGM") and an Annual General Meeting ("AGM"). Shareholders
approved all four AGM resolutions, while at the EGM shareholders
supported Resolutions 1, 2, and 3, but not Resolution 4, and as a
result Resolution 5 was not put to a vote. In summary, shareholders
supported the Company's new continuation strategy, under which the
divestment of projects will continue in a controlled and orderly
manner and the funds received will be distributed to
shareholders.
Project divestments and distributions
During the period the Company made good progress with the
complete disposal of three projects and considerable work
undertaken on several other pending disposals. The three projects
sold were:
-- The Resort Project (August 2016): the Company disposed of its
entire stake at a total valuation 1.0% below the 30 June 2016
unaudited net asset value ("NAV"). The Company received net cash
proceeds of USD7.0 million from the sale.
-- Project Ceana (November 2016): the Company disposed of its
stake in this project at a valuation 12.9% above the 30 September
2016 unaudited NAV. VNL received net proceeds of USD7.6 million
from the sale.
-- Project BD (December 2016): the Company disposed of its stake
in this project at a valuation 17.4% below the unaudited net asset
value at the time of VNL's recent extraordinary general meeting
(EGM) in November 2016. VNL received net proceeds of USD10.9
million from the sale.
Furthermore, during the six-month period, VNL distributed
USD23.6 million to shareholders by way of share buybacks undertaken
at an average share price discount to NAV of 24%.
ZDP redemption
The full redemption of the VinaLand Zero Dividend Preference
(ZDP) shares occurred in December 2016, and the ZDP shares are no
longer traded. Following the redemption, the Company's debt is
limited to loans obtained at the project level. These will continue
to decline as projects are sold.
Fund performance
The NAV per share (reviewed by the auditors) was USD0.89 at 31
December 2016, an increase of 3.95% from the audited NAV per share
at 30 June 2016. During this period, the Company's share price
increased to USD0.69, narrowing the share price discount to NAV to
24% from 33% at 30 June 2016.
Board changes
During the period, Board Directors Nicholas Allen and Nicholas
Brooke announced their resignations effective on 20 October 2016
and 31 December 2016, respectively. I would like to thank them for
their diligence and support over the last few years.
As the Company's portfolio is reducing the Board has decided
that four directors are sufficient to enable the Board to carry out
its duties. With this consideration in mind, Ian Lydall joined the
Board in October 2016.
Vietnam's property market continues to remain buoyant and the
Company continues to evaluate opportunities to dispose of projects
when appropriate and practicable. We are confident that the
Company's new strategy is aligned with the current positive trends
in both the Vietnam economy and real estate markets and that, as a
result, we can maximise returns to shareholders over the coming
years. On behalf of the Board, I appreciate your continued feedback
and support.
Michel Casselman
Chairman
VinaLand Limited
28 March 2017
CONDENSED INTERIM CONSOLIDATED BALANCE SHEET
31 December 30 June
2016 2016
Note USD'000 USD'000
ASSETS
Non-current
Investment properties 6 424,231 389,700
Property, plant and equipment 7 461 500
Intangible assets 2 3
Investments in associates 8 49,285 47,713
Prepayments for acquisitions
of investments 9 26,550 27,772
Deferred income tax assets 10 3,212 3,638
Other non-current assets 94 1,024
-------------- --------------
Total non-current assets 503,835 470,350
Current
Inventories 11 43,141 54,442
Trade and other receivables 12 4,509 17,581
Tax receivables 2,563 1,985
Receivables from related
parties 30 1,348 1,044
Short-term investments 2,235 9,806
Financial assets at fair
value through profit or
loss 268 384
Restricted cash 13 - 3,392
Cash and cash equivalents 14 58,416 76,903
-------------- --------------
Total current assets 112,480 165,537
Assets classified as held
for sale 15 3,784 18,628
-------------- --------------
Total assets 620,099 654,515
31 December 30 June
2016 2016
Note USD'000 USD'000
EQUITY AND LIABILITIES
EQUITY
Equity attributable to equity
shareholders of the parent
Share capital 16 3,579 3,938
Additional paid-in capital 17 422,067 452,680
Equity reserve 49,384 42,115
Other reserve (67) (67)
Translation reserve (67,106) (71,877)
Accumulated losses (89,615) (89,953)
-------------- --------------
318,242 336,836
Non-controlling interests 126,342 128,413
-------------- --------------
444,584 465,249
Total equity -------------- --------------
LIABILITIES
Non-current
Borrowings and debts 18 81,309 47,416
Deferred income tax liabilities 19 21,795 16,358
-------------- --------------
Total non-current liabilities 103,104 63,774
Current
Borrowings and debts 18 2,080 25,704
Trade and other payables 20 68,888 77,174
Payables to related parties 30 984 10,228
Financial liabilities at
fair value through profit
or loss - 6,945
Tax payables 55 176
-------------- --------------
Total current liabilities 72,007 120,227
Liabilities classified as
held for sale 15 404 5,265
-------------- --------------
Total liabilities 175,515 189,266
-------------- --------------
Total equity and liabilities 620,099 654,515
Net assets per share attributable
to equity
shareholders of the parent
(USD per share) 28(c) 0.89 0.86
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
Equity attributable to equity shareholders
of the Company
Total
equity
attributable
Additional to owners Non-
Share paid-in Equity Other Translation Accumulated of the controlling Total
capital capital reserve reserve reserve losses Company interests equity
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
Balance at 1 July
2016 3,938 452,680 42,115 (67) (71,877) (89,953) 336,836 128,413 465,249
Profit for the
period - - - - - 338 338 10,486 10,824
Currency
translation - - - - (4,007) - (4,007) (2,887) (6,894)
Reclassification
of currency
translation
reserve on
disposal
of subsidiaries - - - - 8,778 8,778 - 8,778
---------- ---------- ---------- ---------- ---------- ---------- ------------ -------------- ------------
Total
comprehensive - - - 4,771 338 5,109 7,599 12,708
income ---------- ---------- ---------- - ---------- ---------- ---------- ------------ ------------ ------------
Transactions with
owners in their
capacity as
owners:
Repurchase and
cancellation
of shares (359) (30,613) 7,269 - - - (23,703) - (23,703)
Disposal of
subsidiaries - - - - - - - (3,903) (3,903)
Capital
contribution
in a subsidiary - - - - - - - 41 41
Distribution to
non-controlling
interests - - - - - - - (5,808) (5,808)
---------- -------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------
Balance at 31
December
2016 3,579 422,067 49,384 (67) (67,106) (89,615) 318,242 126,342 444,584
Equity attributable to equity shareholders
of the Company
Total
Additional equity Non-
Share paid-in Equity Other Translation Accumulated attributable controlling Total
capital capital reserve reserve reserve losses to owners interests equity
of the
Company
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
Balance at 1 July
2015 4,301 521,088 30,706 (57) (83,209) (81,638) 391,191 182,821 574,012
Profit for the
period - - - - - 5,966 5,966 5,878 11,844
Currency
translation - - - - (8,523) - (8,523) (2,566) (11,089)
Reclassification
of currency
translation
reserve on
disposal
of subsidiaries - - - - 3,022 - 3,022 - 3,022
---------- ---------- ---------- ---------- ---------- -------------- ---------------- ------------ ------------
Total
comprehensive - - - - (5,501) 5,966 465 3,312 3,777
(loss)/income ---------- ---------- ---------- ---------- ---------- -------------- ---------------- ------------ ------------
Transactions with
owners in their
capacity
as owners:
Repurchase and
cancellation
of shares (133) (11,978) 4,111 - - - (8,000) - (8,000)
Disposal of
subsidiaries - - - - - - - (14,641) (14,641)
Capital
contributions
in subsidiaries - - - - 2,947 2,947
Distribution to
non-controlling
interests - - - - - - - (518) (518)
Acquisition of
non-controlling
interests in a
subsidiary - - - (10) - - (10) (890) (900)
---------- -------------- ------------ ------------ ------------ -------------- -------------- -------------- ------------
Balance at 31
December
2015 4,168 509,110 34,817 (67) (88,710) (75,672) 383,646 173,031 556,677
CONDENSED INTERIM CONSOLIDATED INCOME STATEMENT
Six months ended
----------------------------
31 December 31 December
2016 2015
Note USD'000 USD'000
Revenue 21 4,508 30,384
Cost of sales 22 (5,338) (24,848)
------------ ------------
Gross (loss)/profit (830) 5,536
Net gain on fair value adjustments
of investment properties
and revaluations of property,
plant and equipment 23 41,667 20,485
Selling and administration
expenses 24 (5,188) (8,905)
Net change in fair value
of financial assets at fair
value through profit or loss - (173)
Net (loss)/gain on disposals
of investments 8 (13,852) 7,609
Reversal of impairment/(impairment)
of assets 25 682 (15,470)
Finance income 365 536
Finance expenses 26 (4,302) (3,403)
Share of (losses)/gains of
associates, net 8 (1,921) 1,573
Gain due to dilution of ownership
in an associate 8 1,613 -
Other income 330 1,781
Other expenses (1,078) (155)
------------ ------------
Income from operations before
income tax 17,486 9,414
Income tax 27 (6,662) 2,430
------------ ------------
Income from operations 10,824 11,844
Attributable to equity shareholders
of the Company 338 5,966
Attributable to non-controlling
interests 10,486 5,878
------------ ------------
Net income for the period 10,824 11,844
Earning per share
* basic and diluted (USD per share) 28(a) 0.00 0.01
------------ ------------
CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
Six months ended
----------------------------
31 December 31 December
2016 2015
USD'000 USD'000
Net income for the period 10,824 11,844
Other comprehensive income
Items that may be reclassified
subsequently to profit or loss:
Reclassification of currency
translation reserve on
disposal of subsidiaries 8,778 3,022
Exchange differences on translating
foreign operations (6,894) (11,089)
------------ ------------
Other comprehensive income/(loss)
for the period 1,884 (8,067)
------------ ------------
Total comprehensive income for
the period 12,708 3,777
Attributable to equity shareholders
of the Company 5,109 465
Attributable to non-controlling
interests 7,599 3,312
------------ ------------
12,708 3,777
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
Six months ended
------------------------------
31 December 31 December
2016 2015
Note USD'000 USD'000
Operating activities
Net operating profit before
tax 17,486 9,414
Adjustments for:
Depreciation and amortisation 27 333
Net change in fair values
of financial assets at fair
value
through profit or loss (6,831) 173
Net gain on fair value adjustments
of investment properties
and revaluations of property,
plant and equipment 23 (41,667) (20,485)
Loss/(gain) on disposals of
investments, net 8 13,852 (7,609)
(Reversal)/allowance for impairment
of assets 25 (682) 15,470
Share of losses/(gain) of
associates, net 8 1,921 (1,573)
Gain due to dilution in ownership
of associate 8 (1,613) -
Net loss on disposals of fixed
assets - 56
Unrealised foreign exchange
losses 2 855
Interest expense 4,130 2,519
Interest income (239) (474)
Net loss before changes in ------------ ------------
working capital (13,614) (1,321)
Change in trade receivables
and other current assets (852) 1,510
Change in inventories 1,953 18,347
Change in trade payables and
other current liabilities (4,179) (1,402)
Income tax paid - (278)
------------ ------------
Net cash (outflow)/inflow (16,692) 16,856
from operating activities ------------ ------------
Investing activities
Interest received 206 467
Purchases of investment properties,
property, plant and
equipment, and other non-current
assets (12,980) (14,265)
Additional investments in
associates (1,880) (668)
Proceeds from disposals of
assets/liabilitites classified
as held for sale 1,954 10,500
Proceeds from sales of subsidiaries 26,357 29,412
Collection of prepayment for 2,955 -
acquisition
Net proceeds in short-term
deposits 7,352 94
Net proceeds in long-term
deposits - 14
------------ ------------
Net cash inflow from investing 23,964 25,554
activities ------------ ------------
Six months ended
------------------------------
31 December 31 December
2016 2015
Note USD'000 USD'000
Financing activities
Additional capital contributions
from non-controlling interests 41 2,947
Loan proceeds from banks 36,309 13,793
Loan repayments to banks (1,028) (9,471)
ZDP repayment (25,118) -
Ordinary shares acquired by
the Company 16 (23,703) (8,000)
Interest paid (6,514) (5,223)
Acquisition of non-controlling
interests in a subsidiary - (900)
Capital refunded to non-controlling
interests (5,808) (518)
------------ ------------
Net cash outflow to financing (25,821) (7,372)
activities ------------ ------------
Net changes in cash and cash
equivalents for the period (18,549) 35,038
Cash and cash equivalents
at the beginning of the period 76,903 21,820
Cash and cash equivalents
classified as held for sale - (862)
Exchange differences on cash 62 -
and cash equivalents
Cash and cash equivalents ------------ ------------
at the end of the period 14 58,416 55,996
During the period, major non-cash transactions included capital
gains tax of USD0.8 million which crystalised during the period
(six months ended 31 December 2016: USD2.6 million) resulting from
realised gains on divestments. The tax amounts due were withheld
from disposal proceeds due to the Group by the buyers and remitted
to the tax authorities and as a result these amounts are excluded
from proceeds from disposal of subsidiaries, and disposals of
investment properties and investments in associates, included in
the consolidated statement of cash flows.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL
STATEMENTS
1 GENERAL INFORMATION
VinaLand Limited ("the Company") is a limited liability company
incorporated in the Cayman Islands. The registered office of the
Company is PO Box 309GT, Ugland House, South Church Street, George
Town, Grand Cayman, Cayman Islands. The original objective of the
Company was to focus on key growth segments within Vietnam's
emerging real estate market, namely residential, office, retail,
industrial and leisure projects in Vietnam and the surrounding
countries in Asia. The Company is listed on the AIM Market of the
London Stock Exchange under the ticker symbol VNL.
At an Extraordinary General Meeting ("EGM") held on 21 November
2012 the shareholders approved a proposal that the Company make no
new investments and dispose of a portion of its investments in a
controlled and orderly manner so as to maximise returns to
shareholders. At a subsequent EGM held on 18 November 2016 this
strategy was expanded to include the disposal of all remaining
investments. The key changes impacting these financial statements
are summarised as follows:
-- The new strategy involves the orderly sell down of
investments in conjunction with ongoing development of selected
projects to maximise returns to shareholders. All projects will be
realised over a period of approximately three years and the
proceeds collected, less operating costs, will be returned to
shareholders.
-- The Third Amended and Restated Investment Management
Agreement introduces a new fee structure composed of disposal and
alignment fees, prepayment advances and a retention account to
ensure that the Investment Manager is incentivised to meet the
investing policy (Note 30).
The condensed interim consolidated financial statements for the
six months ended 31 December 2016 were approved for issue by the
Company's Board of Directors on 28 March 2017.
These condensed interim consolidated financial statements have
been reviewed, not audited.
2 BASIS OF PREPARATION
The Company and its subsidiaries herein are referred to as the
Group.
These condensed interim consolidated financial statements are
for the six months ended 31 December 2016. They have been prepared
in accordance with International Accounting Standard 34, "Interim
Financial Reporting" as issued by the International Accounting
Standards Board ("IASB"). They do not include all of the
information required in the annual consolidated financial
statements which are prepared in accordance with International
Financial Reporting Standards ("IFRSs"). Accordingly, these
financial statements are to be read in conjunction with the annual
consolidated financial statements of the Group for the year ended
30 June 2016, which have been prepared in accordance with
IFRSs.
3 ACCOUNTING POLICIES
These condensed interim consolidated financial statements (the
"interim financial statements") have been prepared in accordance
with the accounting policies, methods of computation and
presentation adopted in the last annual consolidated financial
statements for the year ended 30 June 2016.
4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
When preparing the condensed interim consolidated financial
statements, management undertakes a number of judgements, estimates
and assumptions about recognition and measurement of assets,
liabilities, income and expenses. The actual results may differ
from the judgements, estimates and assumptions made by management,
and may not equal the estimated results.
Information about significant judgements, estimates and
assumptions that have the most effect on recognition and
measurement of assets, liabilities, income and expenses were the
same as those that applied to the last annual consolidated
financial statements for the year ended 30 June 2016.
4.1 Fair value of investment properties
The investment properties of the Group are stated at fair value
in accordance with accounting policies 2.5 of the annual
consolidated financial statements for the year ended 30 June 2016.
The fair values of investment properties are based on valuations by
independent professional valuers including CB Richard Ellis,
Savills, Jones Lang LaSalle and Cushman & Wakefield. These
valuations are based on certain assumptions which are subject to
uncertainty and might materially differ from the actual results.
The estimated fair values provided by the independent professional
valuers are used by the Valuation Committee as the primary basis
for estimating each property's fair value for recommendation to the
Board.
In making its judgement, the Valuation Committee considers
information from a variety of sources including:
(i) current prices in an active market for properties of
different nature, condition or location (or subject to different
lease or other contracts), adjusted to reflect those
differences;
(ii) recent prices of similar properties in less active markets,
with adjustments to reflect any changes in economic conditions
since the dates of those transactions;
(iii) recent developments and changes in laws and regulations
that might affect zoning and/or the Group's ability to exercise its
rights in respect to properties and therefore fully realise the
estimated values of such properties;
(iv) discounted cash flow projections based on reliable
estimates of future cash flows, derived from the terms of external
evidence such as current market rents and sales prices for similar
properties in the same location and condition, and using discount
rates that reflect current market assessments of the uncertainty in
the amount and timing of the cash flows; and
(v) recent compensation prices made public by the local
authority at the province where the property is located.
As at 31 December 2016, if the discount rates used had been 1%
higher/lower (30 June 2016: 1%), the total carrying values of the
Group's investment properties would have been USD13.6 million
lower/USD14.7 million higher (30 June 2016: USD13.6 million
lower/USD15.2 million higher).
4.2 Prepayments for acquisitions of investments
The Group estimates the recoverable amounts of significant
prepayments for acquisitions of investments either based on
management's internal assessment or by engaging independent valuers
in accordance with the valuation methods and processes as set out
in Notes 2.5 and 3.1 of the annual consolidated financial
statements for the year ended 30 June 2016.
5 SEGMENT ANALYSIS
In identifying its operating segments, management generally
follows the Group's sectors of investment which are based on
internal management reporting information for the Investment
Manager's management, monitoring of investments and decision
making. The operating segments by investment portfolio include
commercial, residential and office buildings, hospitality,
mixed-use segments and cash and short-term investments.
Detail of activities undertaken by each segment and how each
segment is managed and monitored, can be found in Note 4 to the
annual consolidated financial statements of the Group for the year
ended 30 June 2016.
There is no measure of segment liabilities regularly reported to
the Investment Manager; therefore, liabilities are not disclosed in
the sector analysis. Segment information can be analysed as follows
for the reporting periods under review:
(a) Condensed Interim Consolidated Income Statement
Six months ended 31 December 2016
---------------------------------------------------------------------------------------
Commercial Residential and office Hospitality Mixed use Total
buildings
USD'000 USD'000 USD'000 USD'000 USD'000
Revenue - 4,508 - - 4,508
Cost of sales - (5,338) - - (5,338)
------------ ------------ ---------- ---------- ------------
Gross profit - (830) - - (830)
Net loss on disposals of
investments - (13,852) - - (13,852)
Finance income - 205 3 157 365
Net (loss)/gain on fair
value adjustments of
investment properties and
revaluations of property,
plant and equipment (1,045) 8,950 - 33,762 41,667
Share of gains/(losses) of
associates, net 102 (2,068) 45 - (1,921)
Loss due to dilution in
ownership of associate - 1,613 - - 1,613
(Impairment)/reversal of
impairment of assets - 74 - 608 682
Other income 8 286 - 36 330
------------ ------------ ---------- ---------- ------------
Total (loss)/profit before
unallocatable expenses (935) (5,622) 48 34,563 28,054
Selling and administration
expenses (5,188)
Finance expenses (4,302)
Other expenses (1,078)
----------
Income before tax 17,486
Income tax (6,662)
----------
Net income for the period 10,824
Six months ended 31 December 2015
---------------------------------------------------------------------------------------
Commercial Residential and office Hospitality Mixed use Total
buildings
USD'000 USD'000 USD'000 USD'000 USD'000
Revenue - 30,384 - - 30,384
Cost of sales - (24,848) - - (24,848)
------------ ------------ ---------- ---------- ------------
Gross profit - 5,536 - - 5,536
Net gain on disposals of
investments - 1,149 6,460 - 7,609
Finance income - 286 73 177 536
Net (loss)/gain on fair
value adjustments of
investment properties and
revaluations of property,
plant and equipment (20) 15,866 77 4,562 20,485
Share of (losses)/gains of
associates, net (322) 2,574 40 (719) 1,573
Impairment of assets - (15,470) - - (15,470)
Other income 4 1,031 687 59 1,781
------------ ------------ ---------- ---------- ------------
Total (loss)/profit before
unallocatable expenses (338) 10,972 7,337 4,079 22,050
Net change in fair value
of financial assets at
fair value through profit
or loss (173)
Selling and administration
expenses (8,905)
Finance expenses (3,403)
Other expenses (155)
----------
Profit before tax 9,414
Income tax 2,430
----------
Net profit for the period 11,844
Condensed Interim Consolidated Balance Sheet
As at 31 December 2016
----------------------------------------------------------------------------------------------
Commercial Residential Hospitality Mixed Cash and Total
and office use deposits
buildings
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
Investment properties 3,200 217,981 - 203,050 - 424,231
Property, plant and
equipment - 53 - 408 - 461
Intangible assets - - - 2 - 2
Investments in
associates 16,471 28,337 4,477 - - 49,285
Prepayments for
acquisitions of
investments - 26,550 - - - 26,550
Inventories - 42,879 - 262 - 43,141
Trade, tax and other
receivables 26 6,574 - 1,820 - 8,420
Short-term investments - - - - 2,235 2,235
Financial assets at
fair value through
profit or loss - - - 268 - 268
Cash and cash
equivalents - - - - 58,416 58,416
Assets classified as
held for sale - 3,784 - - - 3,784
Other assets 14 3,258 - 34 - 3,306
------------ -------------- ------------ -------------- ------------ --------------
Total assets 19,711 329,416 4,477 205,844 60,651 620,099
Total assets include:
Addition to
non-current assets
(other than financial
instruments and
deferred tax assets) 1,880 20,063 - 1,505 - 23,448
As at 30 June 2016
----------------------------------------------------------------------------------------------
Commercial Residential Hospitality Mixed Cash and Total
and office use deposits
buildings
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
Investment properties 4,350 211,200 - 174,150 - 389,700
Property, plant and
equipment - 66 - 434 - 500
Intangible assets - - - 3 - 3
Investments in associates 17,513 25,768 4,432 - - 47,713
Prepayments for
acquisitions of
investments - 25,425 - 2,347 - 27,772
Inventories - 51,550 - 2,892 - 54,442
Trade, tax and other
receivables 98 12,955 5,344 2,213 - 20,610
Short-term investments - - - - 9,806 9,806
Financial assets at fair
value through profit or
loss - - - 269 - 269
Restricted cash - - - - 3,392 3,392
Cash and cash equivalents - - - - 76,903 76,903
Assets classified as held
for sale - 18,628 - - - 18,628
Other assets 197 4,432 - 33 - 4,662
------------ -------------- ------------ -------------- ------------ --------------
Total assets 22,158 350,024 9,776 182,341 90,101 654,400
Total assets include:
Addition to
non-current assets
(other than financial
instruments and
deferred tax assets) 1,950 16,064 - 10,341 - 28,355
6 INVESTMENT PROPERTIES
31 December 2016 30 June
2016
USD'000 USD'000
Opening balance (1 July 2016/1 July 2015) 389,700 479,454
Additions 17,926 25,697
Disposals (18,647) (119,738)
Transfers to inventories (Note 11) - (9,240)
Exchange of inventories for investment properties - 2,969
Transfers to non-current assets classified as held for sale (Note 15) - (5,586)
Net gain from fair value adjustments (Note 23) 41,667 24,187
Translation differences (6,415) (8,043)
-------------- --------------
Closing balance 424,231 389,700
The Group's investment properties were revalued during the
period by independent professionally qualified valuers who hold
recognised relevant professional qualifications and have recent
experience in the locations and categories of the investment
properties valued.
Bank borrowings are secured by investment properties with a fair
value of USD235.5 million (30 June 2016: USD102.9 million). During
the period, the Group capitalised borrowing costs amounting to
USD2.2 million (year ended 30 June 2016: USD4.9 million) in
investment properties.
At 31 December 2016, land use rights certificates have not been
fully issued for certain portions of the Group's investment
properties as final issuance is subject to the completion of a
number of administrative steps required by local authorities and/or
the settlement of any outstanding land taxes. In the Investment
Manager's view, the lack of land use rights certificates does not
have any material impact on the existence and valuation of the
investment properties as land use rights over the land area for
each project have been specifically granted under each investment
licence.
The Group's policy is to recognise transfers into and out of
fair value hierarchy levels as of the date of the event or change
in circumstances that caused the transfer. All of the Group's
investment properties are in Level 3 of the fair value hierarchy.
There were no transfers between levels during the period (year
ended 30 June 2016: none).
Information about fair value measurements using unobservable
inputs (Level 3) is set out below:
Level 3 - Range of unobservable inputs Sensitivity on management's estimates
(probability-weighted average)
------------- ------------- ------------------------------------------------------- ---------------------------- -------------------------------------------
Segment Adopted Valuation Discount Cap Valuation per square Sensitivities in sales Sensitivities in discount and cap rates
valuation (USD'000) rate rate metre (USD) price per square metre (USD'000)
technique (USD'000)
------------- ------------- ---------- ------------ ----- ---------------------- ---------------------------- -------------------------------------------
Change in discount rate
Residential
and office
buildings Discounted
(*) cash flows 92,028 19% - 20.5% N/A N/A -1% 0 1%
-------- -------- --------
94,634 92,028 89,542
--------------------------- ---------- ------------ ----- ---------------------- -------- -------- -------- ------- ---- -------- -------- --------
Residential
and office Direct Change in sales price per
buildings comparisons 125,953 N/A N/A 30 - 6,853 square metre
----------------------------
-10% 0 10% N/A
-------- -------- --------
113,358 125,953 138,548
--------------------------- ---------- ------------ ----- ---------------------- -------- -------- -------- ------- ---- -------- -------- --------
Mixed use Change in discount rate
Discounted cash flows 118,100 17% 8.5% N/A -1% 0 1%
-------- -------- --------
Change
in cap
rate -1% 142,300 129,100 117,100
-------
0% 130,200 118,100 107,000
-------
1% 120,700 109,400 98,900
--------------------------- ---------- ------------ ----- ---------------------- -------- -------- -------- ------- ---- -------- -------- --------
Direct Change in sales price per
Mixed use comparisons 84,950 N/A N/A 117 - 1,350 square metre
----------------------------
-10% 0 10% N/A
-------- -------- --------
76,455 84,950 93,445
--------------------------- ---------- ------------ ----- ---------------------- -------- -------- -------- ------- ---- -------- -------- --------
Direct Change in sales price per
Commercial comparisons 3,200 N/A N/A 1,293 square metre
----------------------------
-10% 0 10% N/A
-------- -------- --------
2,880 3,200 3,520
--------------------------- ---------- ------------ ----- ---------------------- -------- -------- -------- ------- ---- -------- -------- --------
For the comparative balance sheet date:
Level 3 - Range of
unobservable inputs Sensitivity on management's estimates
(probability-weighted
average)
------------- ------------- ---------------------------------------- ------------------------------------------------------------------------
Segment Valuation Valuation Discount Cap Valuation Sensitivities Sensitivities in discount
technique (USD'000) rate rate per in sales price and cap rates (USD'000)
square per
metre square metre
(USD) (USD'000)
------------- ------------- ---------- --------- ----- ---------- --------------------------- -------------------------------------------
Change in discount
rate
Residential
and office Discounted
buildings cash 19%
(*) flows 102,140 - 21.5% N/A N/A -1% 0% 1%
-------- -------- --------
105,031 102,140 99,202
Residential Change in sales
and office Direct 30 - price per
buildings comparisons 109,060 N/A N/A 5,845 square metre
---------------------------
-10% 0% 10%
------- -------- --------
98,154 109,060 119,966
--------------------------- ---------- --------- ----- ---------- ------- -------- -------- ------- ---- -------- -------- --------
Mixed use Discounted Change in discount
cash rate
flows
103,350 17% 8.5% N/A -1% 0% 1%
Change
in
cap
rate -1% 127,815 114,762 102,915
-------
0% 115,666 103,350 92,673
-------
1% 106,127 94,882 84,641
--------------------------- ---------- --------- ----- ---------- ------- -------- -------- ------- ---- -------- -------- --------
Change in sales
Direct 258 price per
Mixed use comparisons 70,800 N/A N/A - 1,040 square metre
---------------------------
-10% 0% 10%
------- -------- --------
63,720 70,800 77,880
--------------------------- ---------- --------- ----- ---------- ------- -------- -------- ------- ---- -------- -------- --------
Change in sales
Direct price per
Commercial comparisons 4,350 N/A N/A 1,758 square metre
---------------------------
-10% 0% 10%
------- -------- --------
3,915 4,350 4,785
--------------------------- ---------- --------- ----- ---------- ------- -------- -------- ------- ---- -------- -------- --------
(*) The valuations of these investment properties assume that
they will be developed and sold within a definite time period;
therefore, no capitalisation rates are used in such valuations.
7 PROPERTY, PLANT AND EQUIPMENT
Furniture,
Machinery, fixtures
plant and office Motor
Buildings and equipment equipment vehicles Total
USD'000 USD'000 USD'000 USD'000 USD'000
Gross carrying
amount
At 1 July 2016 517 54 44 207 822
Disposals - - (15) - (15)
Translation differences (10) (1) (1) (4) (16)
---------- -------- -------- -------- ----------
At 31 December 507 53 28 203 791
2016 ---------- -------- -------- -------- ----------
Depreciation
At 1 July 2016 (104) (53) (43) (122) (322)
Charge for the
period (12) - - (15) (27)
Disposals - - 14 - 14
Translation differences 2 1 1 1 5
---------- -------- -------- -------- ----------
At 31 December (114) (52) (28) (136) (330)
2016 ---------- -------- -------- -------- ----------
Carrying value
At 1 July 2016 413 1 1 85 500
At 31 December
2016 393 1 - 67 461
There was no impairment charge to property, plant and equipment
during the period ended 31 December 2016 (the year ended 30 June
2016: USD0.8 million).
For the comparative balance sheet date:
Buildings Furniture,
and Machinery, fixtures
golf plant and office Motor
course and equipment equipment vehicles Total
USD'000 USD'000 USD'000 USD'000 USD'000
Gross carrying
amount
At 1 July 2015 12,040 274 678 867 13,859
Additions 567 18 8 - 593
Impairment charges (819) - - - (819)
Disposals (10,217) (196) (587) (598) (11,598)
Write-offs (399) (5) (5) - (409)
Transfers to assets
classified as
held for sale (606) (35) (46) (56) (743)
Translation differences (49) (2) (4) (6) (61)
---------- -------- -------- -------- ----------
517 54 44 207 822
At 30 June 2016 ---------- -------- -------- -------- ----------
Depreciation
At 1 July 2015 (4,037) (105) (212) (242) (4,596)
Charge for the
year (1,037) (11) (21) (41) (1,110)
Disposals 4,297 38 161 130 4,626
Write-offs 304 5 5 - 314
Transfers to assets
classified as
held for sale 356 19 22 28 425
Translation differences 13 1 2 3 19
---------- -------- -------- -------- ----------
(104) (53) (43) (122) (322)
At 30 June 2016 ---------- -------- -------- -------- ----------
Carrying value
At 1 July 2015 8,003 169 466 625 9,263
At 30 June 2016 413 1 1 85 500
8 SUBSIDIARIES AND ASSOCIATES
(a) Investments in associates
31 December 30 June
2016 2016
USD'000 USD'000
Opening balance (1 July
2016/1 July 2015) 47,713 165,205
Additions 1,880 1,829
Disposals - (115,758)
Share of losses of associates (1,921) (3,563)
Gain due to dilution of
ownership in an associate 1,613 -
-------------- --------------
Closing balance 49,285 47,713
Particulars of material operating associates and their
summarised financial information, extracted from their financial
statements as at 31 December 2016 and 30 June 2016, are as
follows:
As at 31 December 2016
Share Equity
of interest
Principal (Loss)/ (losses)/ held
Incorporation activity Assets Liabilities Revenue profit profits
to
the
Group
USD'000 USD'000 USD'000 USD'000 USD'000 %
Aqua City
Joint
Stock
Company Vietnam Property 53,107 1,538 - (4,320) (2,068) 48
Other Property/
associates Vietnam Hospitality 67,009 24,814 3,098 38 147
120,116 26,352 3,098 (4,282) (1,921)
=========================================== ========= ============= ========= ============= =========== ==========
As at 30 June 2016
Share Equity
of interest
Principal (Loss)/ (losses)/ held
Incorporation activity Assets Liabilities Revenue profit profits
to
the
Group
USD'000 USD'000 USD'000 USD'000 USD'000 %
Aqua City
Joint
Stock
Company Vietnam Property 59,232 8,942 - (2,866) (1,433) 50
Other Property/
associates Vietnam Hospitality 65,501 25,872 3,984 (3,138) (1,946)
124,733 34,814 3,984 (6,004) (3,379)
=========================================== ========= ============= ========= ========== =========== ==========
Reconciliation of summarised financial information for a
material associate:
Aqua City Joint
Stock Company
For the period/year
ended
----------------------------------
31 December 30 June
2016 2016
USD'000 USD'000
Summarised balance sheet
Current assets
Cash and cash equivalents 78 5
Other current assets 1 -
------------ ------------
Total current assets 79 5
Non-current assets 53,028 59,227
Current liabilities
Other current liabilities 1,538 8,942
------------ ------------
Total current liabilities 1,538 8,942
Net assets 51,569 50,290
------------ ------------
Reconciliation to carrying amounts:
Opening net assets 50,290 53,156
Capital contribution 5,599 -
Loss for the period/year (4,320) (2,866)
------------ ------------
51,569 50,290
------------ ------------
Group's share in % 48% 50%
Group's share in USD 24,690 25,145
------------ ------------
Carrying amount 24,690 25,145
------------ ------------
Summarised statement of comprehensive
income
General and administration expenses (4,320) (27)
Loss on fair value adjustments
of investment properties - (2,794)
Other expenses - (45)
------------ ------------
Loss for the period/year (4,320) (2,866)
------------ ------------
(b) Principal subsidiaries
The Group had the following principal subsidiaries which are
held through special purpose vehicles established outside of
Vietnam as at at 31 December 2016 and 30 June 2016:
31 December 2016 30 June 2016
------------------------------ ------------------------------
Percentage Percentage
Country Percentage interest Percentage interest
of incorporation interest held by interest held by
and place held by non-controlling held by non-controlling Nature
Name of business the Group interests the Group interests of business
VinaCapital Hoi
An
Resort Limited Vietnam - - 100.0% - Hospitality
VinaCapital
Danang Property
Resort Limited Vietnam - - 75.0% 25.0% investment
VinaCapital
Commercial
Center Limited Property
(*() Vietnam 38.2% 61.8% 38.2% 62.0% investment
Mega Assets
Company Property
Limited Vietnam 75.0% 25.0% 75.0% 25.0% investment
SIH Real Estate
Limited Property
Company Vietnam 75.0% 25.0% 75.0% 25.0% investment
Dien Phuoc Long
Real
Estate Company Property
Limited Vietnam 100.0% - 100.0% - investment
VinaCapital
Phuoc
Dien Company Property
Limited Vietnam 100.0% - 100.0% - investment
Dong Binh Duong
Urban
Development
Company Property
Limited Vietnam - - 70.0% 30.0% investment
Vina Dai Phuoc
Corporation Property
Limited Vietnam 54.0% 46.0% 54.0% 46.0% investment
Viet Land
Development
Corporation Property
Limited Vietnam 90.0% 10.0% 90.0% 10.0% investment
Vinh Thai Urban
Development
Corporation Property
Limited Vietnam 53.3% 46.7% 53.3% 46.7% investment
Thang Long
Property Property
Company Limited Vietnam 65.0% 35.0% 65.0% 35.0% investment
Hoang Phat
Investment
Joint Stock
Company Vietnam 60.0% 40.0% 60.0% 40.0% Hospitality
AA VinaCapital
Co. Property
Limited Vietnam 83.2% 16.8% 83.2% 16.8% investment
Vina Alliance
Company Property
Limited (*() Vietnam 46.5% 53.5% 46.5% 53.5% investment
Phu Hoi City
Company Property
Limited Vietnam 52.5% 47.5% 52.5% 47.5% investment
(*) At the reporting date, the Group has 38.2% and 46.5% equity
interests in VinaCapital Commercial Center Limited (Vietnam) and
Vina Alliance Company Limited, respectively. Management considers
these companies as subsidiaries as the Group has control because it
is exposed to variable returns from its involvement with these
companies and can affect those returns through its power over
them.
All subsidiary undertakings are included in the consolidation.
The proportion of the voting rights in the subsidiary undertakings
held directly by the Group does not differ from the proportion of
ordinary shares held except the cases mentioned above. The Group
further does not have any shareholding in the preference shares of
subsidiary undertakings included in the Group.
During the period, the Group sold several subsidiaries, details
of which are provided on the following pages. The assets and
liabilities held by the subsidiaries sold were as follows:
As at the
date of
disposal
USD'000
Current assets
Cash and cash equivalents 15,385
Inventories 4,920
Trade and other receivables 23,921
Other current assets 347
------------
Total current assets 44,573
Non-current assets
Investment properties 18,669
Property, plant and equipment 7,638
Other non-current assets 1,309
------------
Total non-current assets 27,616
Current liabilities
Trade and other payables (24,656)
Other current liabilities (319)
------------
Total current liabilities (24,975)
Non-current liabilities
Long-term trade and other payables (8,579)
------------
Total non-current liabilities (8,579)
------------
Net assets at the date when
subsidiaries were sold 38,635
------------
Net assets attributable to the
Company 33,368
Net assets attributable to non-controlling
interests 5,267
------------
Total consideration 28,294
Capital gains tax withheld by
buyers (799)
Consideration not yet received
as at 31 December 2016 (1,760)
------------
Consideration received from sales of
subsidiaries 25,735
Period ended
31 December
2016
USD'000
Consideration received from
sales of subsidiaries 25,735
Less: Cash and cash equivalents
of subsidiaries sold (15,385)
------------
Cash received from sales of subsidiaries 10,350
------------
Details of the losses from sales of subsidiaries are as
follows:
Period ended
31 December 2016
USD'000
Total consideration 28,294
Carrying amount of net assets sold attributable
to the Company (33,368)
------------
Loss on sales of subsidiaries before
reclassification of currency translation
reserve (5,074)
Reclassification of currency translation
reserve (8,778)
------------
Loss on sales of subsidiaries (13,852)
------------
Sale of VinaCapital Danang Resort Limited
During the period the Group sold its 75% equity interest in
VinaCapital Danang Resort Limited for a total consideration of
USD7.0 million. The book value of the net assets at the sale date
was USD10.5 million and the reclassification of translation reserve
on disposal was USD1.5 million, resulting in a loss of USD5.0
million.
Sale of VinaCapital Hoi An Resort Limited
During the period the Group sold its 100% equity interest in
VinaCapital Hoi An Resort Limited for a total consideration of
USD7.8 million. The book value of the net assets at the sale date
was USD6.6 million and the reclassification of translation reserve
on disposal was USD1.2 million, resulting in no gain/(loss) on this
disposal.
Sale of Dong Binh Duong Urban Development Company Limited
During the period the Group sold its 70% equity interest in Dong
Binh Duong Urban Development Company Limited for a total
consideration of USD13.5 million. The book value of the net assets
at the sale date was USD16.3 million and the reclassification of
translation reserve on disposal was USD6.1 million, resulting in a
loss of USD8.9 million.
Summarised financial information of subsidiaries with material
non-controlling interests
The total non-controlling interests as at 31 December 2016 is
USD126.3 million (30 June 2016: USD128.4 million), allocated as
below:
31 December 30 June
2016 2016
USD'000 USD'000
Vina Alliance Company Limited
("Vina Square") 44,232 40,613
Vina Dai Phuoc Corporation
Limited ("Dai Phuoc Lotus") 32,591 30,529
Thang Long Property Company
Limited ("Times Square") 17,756 14,361
Phu Hoi City Company Limited
("Phu Hoi") 14,549 14,563
Others 17,214 28,347
-------------- --------------
126,342 128,413
Set out below is summarised financial information for each of
the subsidiaries with non-controlling interests that are material
to the Group.
Summarised balance sheets
Dai Phuoc
Vina Square Lotus Phu Hoi Times Square
-------------------------- ------------------------- -------------------------- --------------------------
As at As at As at As at
31.12.2016 30.06.2016 31.12.2016 30.06.2016 31.12.2016 30.06.2016 31.12.2016 30.06.2016
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
Current
Assets 2,460 26 19,612 21,134 2,122 118 13,712 8,944
Liabilities (44,820) (67,250) (16,838) (16,951) (2,495) (468) (36,543) (31,476)
Total current
net
(liabilities)/assets (42,360) (67,224) 2,774 4,183 (373) (350) (22,831) (22,532)
----------- ------------- ----------- ------------ ----------- ------------- ----------- -------------
Non-current
----------- ------------- ----------- ------------ ----------- ------------- ----------- -------------
Assets 118,114 103,368 70,664 62,740 28,412 28,418 54,007 41,610
Liabilities (34,326) (4,920) (938) (2) - - (5,762) (3,259)
Total non-current
net assets 83,788 98,448 69,726 62,738 28,412 28,418 48,245 38,351
----------- ------------- ----------- ------------ ----------- ------------- ----------- -------------
Net assets 41,428 31,224 72,500 66,921 28,039 28,068 25,414 15,819
----------- ------------- ----------- ------------ ----------- ------------- ----------- -------------
Summarised income statements
Dai Phuoc Times
Vina Square Lotus Phu Hoi Square
Period Period Period
ended Period ended ended ended
31 December 31 December 31 December 31 December
2016 2015 2016 2015 2016 2015 2016 2015
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
Revenue - - 1,593 3,301 - - - -
Profit before
income tax 15,222 2,376 7,866 1,122 674 3,425 13,011 16,742
Income tax
expense (3,493) (336) (938) (316) (206) (813) (2,503) (8)
Post-tax
profit from
continuing
operations 11,729 2,040 6,928 806 468 2,612 10,508 16,734
Other comprehensive
loss (1,525) (2,123) (1,349) (1,813) (497) (664) (913) (1,341)
Total comprehensive
income/(loss) 10,204 (83) 5,579 (1,007) (29) 1,948 9,595 15,393
-------- -------- ---------- -------- -------- -------- -------- --------
Total comprehensive
income/(loss)
allocated
to non-controlling
interests 5,464 (44) 2,062 (633) (14) 924 3,395 4,286
-------- -------- ---------- -------- -------- -------- -------- --------
Summarised cash flow statements
Dai Phuoc Times
Vina Square Lotus Phu Hoi Square
Period Period Period Period
ended ended ended ended
31 December 31 December 31 December 31 December
2016 2015 2016 2015 2016 2015 2016 2015
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
Net cash
flows from
operating
activities (1,641) 196 (97) 1,221 (21) 36 670 54
Net cash
flows from
investing
activities (24,034) (273) (663) (420) 1,954 (19) 880 (27)
Net cash
flows from
financing
activities 27,981 - - (558) 72 - - -
Net increase/(decrease)
in cash and
cash equivalents 2,306 (77) (760) 243 2,005 17 1,550 27
--------- -------- -------- -------- -------- -------- -------- --------
The information above is before inter-company eliminations.
9 PREPAYMENTS FOR ACQUISITIONS OF INVESTMENTS
31 December 30 June
2016 2016
USD'000 USD'000
Prepayments for acquisitions
of investments 35,663 43,839
Allowance for impairment (9,113) (16,067)
------------ ------------
26,550 27,772
Prepayments are made by the Group to property vendors where the
final transfer of the property is pending the approval of the
relevant authorities and/or is subject to either the Group or the
vendor completing certain performance conditions set out in
agreements.
As at 31 December 2016, the accumulated impairment allowances
amounted to USD9.1 million (30 June 2016: USD16.1 million). During
the period, there was a reversal of USD2.5 million due to
improvement of market conditions. The relevant recoverable amounts
are the fair values of the underlying properties less the costs to
sell which have been estimated by independent professional
qualified valuers who hold recognised relevant professional
qualifications and have recent experience in the locations and
categories of the properties upon which these prepayments have been
made.
The valuations performed by the independent valuation companies,
as adopted by the Group, are prepared using the direct comparison
method. All of these fair value less the costs to sell valuations
are in Level 3 of the fair value hierarchy and there were no
transfers between levels during the period (year ended 30 June
2016: none). As at 31 December 2016, the sales prices per square
meter used ranged from USD21 to USD67 (30 June 2016: USD21 to
USD64). If the sales prices of similar properties have
increased/decreased, it is expected that the recoverable amounts of
these prepayments would have moved up/down accordingly.
Management's view is that all of the Group's prepayments for
acquisitions of investments are in Level 3 of the fair value
hierarchy. Movements in the balance during the period/year were as
follows:
31 December 30 June
2016 2016
USD'000 USD'000
Opening balance (1 July 2016/1
July 2015) 27,772 26,572
Additions 191 128
Reversal of impairment (Note
25) 2,487 1,560
Collection of prepayment (2,955) -
Other decrease (326) -
Translation differences (619) (488)
------------ ------------
Closing balance 26,550 27,772
10 DEFERRED TAX ASSETS
31 December 30 June
2016 2016
USD'000 USD'000
Opening balance (1 July 2016/1
July 2015) 3,638 6,572
Net change in the period/year
(*) (426) (2,779)
Reclassified to non-current
assets classified as held for
sales (Note 15) - (155)
---------- ----------
Closing balance 3,212 3,638
Deferred income tax assets
to be recovered after more
than
12 months - 3,638
Deferred income tax assets
to be recovered after within
12 months 3,212 -
---------- ----------
3,212 3,638
(*) The net change mainly arose from changes for tax provisions
on fair value adjustments of investment properties during the
period/year.
11 INVENTORIES
31 December 30 June
2016 2016
USD'000 USD'000
Opening balance (1 July 2016/1
July 2015) 54,442 98,911
Additions 3,110 9,744
Transferred to cost of sales (4,754) (30,868)
Write-down (Note 25) (1,805) (18,951)
Sold as part of property
disposals (Note 8(b)) (6,600) (4,774)
Transferred from investment
properties (Note 6) - 9,240
Exchanged for investment
property - (2,969)
Reclassified as held for
sale (Note 15) - (4,585)
Translation differences (1,252) (1,306)
-------------- --------------
43,141 54,442
During the period, the Group capitalised borrowing costs
amounting to USD0.3 million (year ended 30 June 2016: 0.8 million)
into the value of inventories.
Inventories which belong to Vinh Thai Urban Development
Corporation Limited with a total carrying value of USD25.4 million
as at 31 December 2016 (30 June 2016: USD21.2 million) are pledged
as security for bank borrowings of USD5.2 million disclosed in Note
18.
12 TRADE AND OTHER RECEIVABLES
31 December 30 June
2016 2016
USD'000 USD'000
Trade receivables 976 1,409
Receivables from disposals
of subsidiaries (*) 2,302 14,806
Interest receivables 60 27
Prepayments to suppliers 583 726
Short-term prepaid expenses - 434
Advances to employees 452 20
Other receivables 136 159
------------ ------------
4,509 17,581
(*) Receivables from disposals of subsidiaries represent the
final settlements upon completion of the transfer of ownership of
subsidiaries to the buyers in accordance with the relevant sale and
purchase agreements.
All current trade and other receivables are short-term in nature
and their carrying values, after allowances for impairment,
approximate their fair values at the date of the condensed interim
consolidated balance sheet.
13 RESTRICTED CASH
The balance represents property buyers' deposits. They are held
in the accounts of several subsidiaries of the Group. These funds
are not available for use until the terms of the relevant property
sales agreements have been fulfilled.
In cases where sales of properties have not yet been finalised
pending the completion of certain conditions set out in the
relevant sales and purchase agreements, property buyers' deposits
which are placed in third party escrow bank accounts are not part
of the Group's assets and are therefore not included in either
restricted cash or cash and cash equivalents in the consolidated
balance sheet.
14 CASH AND CASH EQUIVALENTS
31 December 30 June
2016 2016
USD'000 USD'000
Cash on hand 49 44
Cash at banks 51,618 70,510
Cash equivalents 6,749 6,349
------------ ------------
58,416 76,903
Cash equivalents include short-term highly liquid investments
with original maturities of three months or less.
At 31 December 2016, cash and cash equivalents held at the
Company level amounted to USD46.5 million (30 June 2016: USD69
million). The remaining balance of cash and cash equivalents is
held by subsidiaries in Vietnam. Cash held in Vietnam is subject to
restrictions imposed by co-investors and the Vietnamese government
and therefore it cannot be transferred out of Vietnam unless those
restrictions are satisfied.
15 ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE
31 December 2016
----------------------------------------------------------------------------------
Attributable
to
Assets classified Liabilities Net assets Non-controlling Equity
as held for classified classified interests shareholders
sale as held for as held for of the
sale sale parent
USD'000 USD'000 USD'000 USD'000 USD'000
Vinh Thai
Parcel 3 3,784 (404) 3,380 1,580 1,800
The assets and liabilities of Parcel 3 of Vinh Thai Urban
Development Corporation Limited have been presented as held for
sale following the signing of relevant sale and purchase
agreements.
It is the Group's view that all of its assets and liabilities
classified as held for sales are in Level 3 of the fair value
hierarchy. The major classes of assets and liabilities and their
movements during the period/year are as follows:
1 July 31 December
2016 Disposals 2016
USD'000 USD'000 USD'000
Assets classified as held
for sale
Available for sales financial - - -
assets
Investment properties 3,784 - 3,784
Property, plant and equipment
(net of accumulated depreciation) 318 (318) -
Intangible assets (net
of accumulated amortisation) 9 (9) -
Deferred income tax assets 155 (155) -
Other current assets 41 (41) -
Other non-current assets 468 (468) -
Inventories 4,585 (4,585) -
Trade and other receivables 860 (860) -
Short term investments 219 (219) -
Cash and cash equivalents 8,189 (8,189) -
---------- ---------- ----------
18,628 (14,844) 3,784
---------- ---------- ----------
Liabilities classified
as held for sale
Long-term trade and other
payable 2,602 (2,602) -
Accruals and other current
liabilities 319 (319) -
Trade and other payables 2,344 (1,940) 404
---------- ---------- ----------
5,265 (4,861) 404
---------- ---------- ----------
Net assets classified
as held for sale 13,363 (9,983) 3,380
For the comparative year:
30 June 2016
----------------------------------------------------------------------------
Attributable
to
--------------------------------
Assets Liabilities Net Non-controlling Equity
classified classified assets interests shareholders
as held as held classified of the
for for as held parent
sale sale for
sale
USD'000 USD'000 USD'000 USD'000 USD'000
VinaCapital
Danang Resort
Limited 14,844 (4,861) 9,983 3,045 6,938
Vinh Thai Parcel
3 3,784 (404) 3,380 1,580 1,800
------------ ---------- ------------ ---------- ------------
18,628 (5,265) 13,363 4,625 8,738
1 July Transferred Fair 30 June
2015 in value Disposals 2016
adjustment
USD'000 USD'000 USD'000 USD'000 USD'000
Assets classified
as held for sale
Available for
sales financial
assets 851 - - (851) -
Investment properties
(Note 6) 12,080 5,587 (1,803) (12,080) 3,784
Property, plant
and equipment
(net of accumulated
depreciation)
(Note 7) - 318 - - 318
Intangible assets
(net of accumulated
amortisation) - 9 - - 9
Deferred income
tax assets (Note
10) - 155 - - 155
Other current
assets - 41 - - 41
Other non-current
assets - 468 - - 468
Inventories (Note
11) - 4,585 - - 4,585
Trade and other
receivables 172 860 - (172) 860
Short term investments - 219 - - 219
Cash and cash
equivalents 130 8,189 - (130) 8,189
------------ ------------ ------------ -------------- ------------
13,233 20,431 (1,803) (13,233) 18,628
------------ ------------ ------------ -------------- ------------
Liabilities classified
as held for sale
Long-term trade
and other payable - 2,602 - - 2,602
Accruals and
other current
liabilities 17 319 - (17) 319
Trade and other
payables 501 2,344 - (501) 2,344
------------ ------------ ------------ -------------- ------------
518 5,265 - (518) 5,265
------------ ------------ ------------ -------------- ------------
Net assets classified
as held for sale 12,715 15,166 (1,803) (12,715) 13,363
16 SHARE CAPITAL
31 December 30 June 2016
2016
-------------------------------------- --------------------------------------
Number Number
of shares USD'000 of shares USD'000
Authorised:
Ordinary shares 500,000,000 5,000 500,000,000 5,000
of USD0.01 each -------------------- ---------- -------------------- ----------
Issued and fully
paid:
Opening balance
(1 July 2016/
1 July 2015) 393,808,479 3,938 430,132,220 4,301
Shares purchased
and cancelled (35,869,000) (359) (36,323,741) (363)
-------------------- ---------- -------------------- ----------
Closing balance 357,939,479 3,579 393,808,479 3,938
The Company considers investors holding more than a 10%
beneficial interest in the ordinary shares of the Company as major
shareholders. As at 31 December 2016, there were two investors that
held more than 10% of the ordinary shares of the Company (30 June
2016: two).
During the period, the Company purchased and cancelled
35,869,000 of its ordinary shares (year ended 30 June 2016:
36,323,741 shares) for a total cash consideration of USD23.7
million (year ended 30 June 2016: USD22.3 million) at an average
cost USD0.661 per share (year ended 30 June 2016: USD0.614 per
share). The difference between the cost of the shares repurchased
and their net asset value has been recorded in an equity
reserve.
17 ADDITIONAL PAID-IN CAPITAL
Additional paid-in capital represents the excess of
consideration received over the par value of shares issued.
31 December 30 June
2016 2016
USD'000 USD'000
Opening balance (1 July
2016/1 July 2015) 452,680 521,088
Shares repurchased and cancelled (30,613) (33,348)
Distribution to shareholders - (35,060)
-------------- --------------
Closing balance 422,067 452,680
18 BORROWINGS AND DEBTS
31 December 30 June
2016 2016
USD'000 USD'000
Long-term borrowings:
Bank borrowings 82,135 48,276
Loans from non-controlling
interests 475 804
Less:
Current portion of long-term
borrowings (1,301) (1,664)
------------ ------------
81,309 47,416
------------ ------------
Short-term borrowings:
Loans from non-controlling
interests 779 -
Zero dividend preference
shares - 24,040
Current portion of long-term
borrowings 1,301 1,664
------------ ------------
2,080 25,704
------------ ------------
Total borrowings and debts 83,389 73,120
Borrowings
Borrowings mature on a range of dates until December 2019 and
bear average annual interest rates of 9.8% for amounts in VND (30
June 2016: 10.1% for amounts in VND). USD46.6 million of the
Group's borrowings bears fixed interest rates, while the remaining
is subject to floating interest rates (30 June 2016: USD38.2
million).
All borrowings are secured by certain investment properties and
inventories of the Group (Notes 6 and 11).
During the period, the Group capitalised borrowing costs
amounting to USD2.5 million in qualifying assets (year ended 30
June 2016: USD5.7 million) (Notes 6 and 11).
The maturity of the Group's borrowings at the end of the
reporting period is as follows:
31 December 30 June
2016 2016
USD'000 USD'000
6 months or less 528 539
6-12 months 1,552 1,125
1-5 years 81,309 47,416
------------ ------------
83,389 49,080
The fair value of current borrowings equals their carrying
amounts, as the impact of discounting is not significant. The fair
value of long-term borrowings is USD81.3 million (30 June 2016:
USD47.4 million). These are Level 2 fair values which are estimated
using the discounted cash flow method.
The Group's borrowings are denominated in Vietnamese Dong.
During the period, the Group's subsidiaries borrowed USD36.3
million (six months ended 31 December 2015: USD13.8 million) from
banks to finance working capital and property development
activities.
The Group fully paid off its zero dividend preference shares on
19 December 2016.
19 DEFERRED TAX LIABILITIES
31 December 30 June
2016 2016
USD'000 USD'000
Opening balance (1 July 2016/1
July 2015) 16,358 28,184
Net change during the period/year
from fair value adjustments
of investment properties and
property, plant and equipment 5,437 (11,826)
------------ ------------
Closing balance 21,795 16,358
Deferred income tax liabilities
to be recovered after more
than 12 months 3,996 7,211
Deferred income tax liabilities
to be recovered within 12
months 17,799 9,147
------------ ------------
21,795 16,358
Deferred tax liabilities are the amounts of income tax to be
settled in future periods in respect of temporary differences
between the carrying amounts of revalued assets and their tax
bases.
20 CURRENT TRADE AND OTHER PAYABLES
31 December 30 June
2016 2016
USD'000 USD'000
Trade payables 1,343 1,388
Payables for property acquisitions
and land compensation 14,600 36,636
Proceeds payables to a co-investor
on disposal of an investment - 1,603
Deposits from property buyers 22,239 4,952
Deposits from customers of
residential projects 28,988 28,370
Interest payable 526 1,557
Other accrued liabilities - 501
Other payables 1,192 2,167
------------ ------------
68,888 77,174
All trade and other payables are short-term in nature. Their
carrying values approximate their fair values as at the date of the
condensed interim consolidated balance sheet.
21 REVENUE
Six months ended
--------------------------
31 December 31 December
2016 2015
USD'000 USD'000
Sales of residential projects 4,508 30,384
22 COST OF SALES
Six months ended
--------------------------
31 December 31 December
2016 2015
USD'000 USD'000
Residential projects 5,338 24,848
Cost of sales include raw materials and consumables used,
construction costs, land lease payments, depreciation and
amortisation, staff costs, outside service costs and other
expenses.
23 NET GAIN ON FAIR VALUE ADJUSTMENTS OF INVESTMENT PROPERTIES
AND REVALUATIONS OF PROPERTY, PLANT AND EQUIPMENT
Six months ended
----------------------------
31 December 31 December
2016 2015
USD'000 USD'000
Investment properties
By real estate sector:
- Commercial (1,045) (20)
- Residential and office
buildings 8,950 15,866
- Mixed use 33,762 4,562
------------ ------------
41,667 20,408
Property, plant and equipment
Hospitality - 77
Net gain on fair value adjustments ------------ ------------
of investment properties
and revaluations of property,
plant and equipment 41,667 20,485
24 SELLING AND ADMINISTRATION EXPENSES
Six months ended
--------------------------
31 December 31 December
2016 2015
USD'000 USD'000
Management fees (Note 30) 1,822 2,968
Fees paid to the Investment 266 -
Manager (Note 30)
Professional fees (*) 1,586 2,307
Depreciation and amortisation
(**) 56 326
General and administration
expenses (**) 767 2,190
Staff costs (**) 328 764
Outside service costs (**) 363 350
---------- ----------
5,188 8,905
(*) These expenses primarily relate to the operating activities
of the Company such as legal and professional fees, audit fees,
valuation fees, fund administrative and custodian fees, directors
fees.
(**) These expenses primarily relate to the operating activities
of the Group's subsidiaries.
25 REVERSAL OF IMPAIRMENT/(IMPAIRMENT) OF ASSETS
Six months ended
--------------------------
31 December 31 December
2016 2015
USD'000 USD'000
Reversal of impairment of
prepayments for acquisitions
of investments (Note 9) 2,487 1,822
Impairment of property, plant
and equipment (Note 7) - (1,112)
Write-down on inventories
(Note 11) (1,805) (16,059)
Impairment of non-current
assets classified as held
for sale (Note 15) - (121)
---------- ----------
682 (15,470)
26 FINANCIAL EXPENSES
Six months ended
--------------------------
31 December 31 December
2016 2015
USD'000 USD'000
Realised foreign exchange
losses 170 29
Unrealised foreign exchange
losses 2 855
Interest expense 4,130 2,519
---------- ----------
4,302 3,403
27 INCOME TAX
VinaLand Limited is domiciled in the Cayman Islands. Under the
current laws of the Cayman Islands, there are no income,
corporation, capital gains or other taxes payable by the
Company.
The majority of the Group's subsidiaries are domiciled in the
British Virgin Islands ("BVI") and so have a tax exempt status. A
number of subsidiaries are established in Vietnam and Singapore and
are subject to corporate income tax in those countries. Deferred
tax assets/liabilities of these subsidiaries are estimated based on
the tax legislation of each jurisdiction and included in the
deferred income tax assets/liabilities on the balance sheet.
As is the case with many other developing countries, Vietnam is
in the process of implementing comprehensive tax regulations. As a
result, the administration of tax regulations by government
agencies may be subject to considerable discretion, and in many
areas, the legal framework is uncertain and subject to
interpretation. The Group has provided for all taxes expected to be
payable by it under the current tax regulations in Vietnam. There
is, however, an ongoing risk that government agencies might seek to
impose additional taxes on the Group based on different
interpretations of the regulations or through the restrospective
application of new regulations.
On 19 June 2014, the Vietnamese National Assembly approved a new
corporate income tax law. Under the new law, the standard corporate
income tax was reduced from 25% to 22% effective 1 January 2015. A
further reduction in tax rate to 20% became effective on 1 January
2016. No provision has been made for corporate income tax payable
by the Vietnamese subsidiaries for the period because these
subsidiaries do not have taxable income in Vietnam (period from 01
July 2015 to 31 December 2015: USD9 thousand).
The relationship between the expected tax expense based on the
applicable tax rate of 0% and the tax expense actually recognised
in the condensed interim consolidated income statement can be
reconciled as follows:
Six months ended
--------------------------
31 December 31 December
2016 2015
USD'000 USD'000
Current income tax
Group's gain before tax 17,486 9,414
Group's gain multiplied - -
by applicable tax rate (0%)
Effect of higher tax rate
in Vietnam - (9)
Capital gains tax (799) -
---------- ----------
Total current tax expense (799) (9)
---------- ----------
Deferred income tax
Decrease in deferred tax
assets (*) (426) (1,550)
(Increase)/decrease in deferred
tax liabilitites (*) (5,437) 3,989
---------- ----------
Deferred income tax (5,863) 2,439
---------- ----------
Tax (expense)/income (6,662) 2,430
(*) This amount represents the net deferred income tax
income/(expense) which arose from the gains/(losses) on fair value
adjustments of investment properties and property, plant and
equipment and the reversal of deferred tax assets/liabilities as a
result of changes to valuation assumptions during the period.
28 EARNINGS AND NET ASSET VALUE PER SHARE
(a) Basic
Six months ended
--------------------------------------------
31 December 31 December
2016 2015
Net income attributable to owners of the Company
from continuing and total operations (USD'000) 338 5,966
Weighted average number of ordinary shares in issue 386,050,076 428,515,232
Basic earnings per share from continuing and total
operations (USD per share) 0.00 0.01
-------------------- --------------------
(b) Diluted
Diluted earnings per share is calculated by adjusting the
weighted average number of ordinary shares outstanding to assume
conversion of all dilutive potential ordinary shares. The Group has
no category of potential dilutive ordinary shares. Therefore,
diluted earnings per share is equal to basic earnings per
share.
(c) Net asset value per share
31 December 30 June
2016 2016
Net asset value (USD'000) 318,242 336,836
Number of outstanding ordinary shares in issue 357,939,479 393,808,479
Net asset value per share (USD/share) 0.89 0.86
-------------------- --------------------
29 COMMITMENTS
As at 31 December 2016, the Group was committed under lease
agreements to paying the following future amounts:
31 December 30 June
2016 2016
USD'000 USD'000
Within one year 340 52
From two to five years 170 306
Over five years - 2,284
---------- ----------
510 2,642
As at 31 December 2016, the Group was also committed under
construction agreements to pay USD18.6 million (30 June 2016:
USD12.7 million) for future construction work of the Group's
properties held by its subsidiaries
The Company's subsidiaries and associates have a broad range of
commitments relating to investment projects under agreements it has
entered into and investment licences it has received. Further
investment in many of these arrangements is at the Group's
discretion. The Investment Manager has estimated that, based on the
agreements signed and the development plan for each project,
approximately USD26.3 million (30 June 2016: USD32.1 million) will
be used to fund these projects over the next three years.
30 RELATED PARTY TRANSACTIONS AND BALANCES
Management fees
The Group is managed by VinaCapital Investment Management
Limited (the "Investment Manager"), an investment management
company incorporated in the Cayman Islands, under a management
agreement effective 21 November 2012 (the "Amended Management
Agreement").
Under this agreement the management fee from 21 November 2012
was fixed at USD8.25 million for the subsequent 12 months, USD7.5
million for the next 12 months and USD6.5 million for the next 12
months.
Under the Second Amended and Restated Investment Management
Agreement effective from 21 November 2015 (the "Second Amended
Management Agreement") the management fee from 21 November 2015
until 21 November 2016 was revised to USD390,000 per month.
Total management fees for the period amounted to USD1.8 million
(six months ended 31 December 2015: USD3.0 million) which had been
fully settled by the date of the condensed interim consolidated
balance sheet. Under the Third Amended and Restated Investment
Management Agreement effective from 14 December 2016 no further
management fees shall be charged by the Investment Manager to the
Company.
Realisation fees
In accordance with the Amended Management Agreement and Seconded
Amended Management Agreement, the Investment Manager is entitled to
a realisation fee of up to USD28,218,000 based upon the level of
distributions made to shareholders from contracted divestments of
assets which were signed prior to 21 November 2015 and the proceeds
of which were received by 21 November 2016.
Of the USD28.2 million realisation fees, USD27.3 million had
been paid to the Investment Manager, leaving USD0.9 million
outstanding as at 31 December 2016 (30 June 2016: USD7.4
million).
Disposal fees and alignment fees
Under the Third Amended and Restated Investment Management
Agreement effective from 14 December 2016 the Investment Manager
will receive a disposal fee and an alignment fee. The disposal fee
is calculated at the rate of 3.00% of distributable funds realised
in the year starting 22 November 2016, 2.75% in the second year and
2.25% in the third year. The alignment fee is calculated on
distributions to shareholders over USD265.0 million during the
3-year period starting 22 November 2016. The Investment Manager
will receive 10% of distributions over USD265.0 million and up to
USD279.0 million, 15% of distributions over USD279.0 million, and
up to USD313.0 million, and 20% of distributions over USD313.0
million. A non-refundable monthly advance of USD200,000 in the year
starting 22 November 2016, USD150,000 in the second year, and
USD100,000 in the third year, will be paid to the Investment
Manager. These advances will be offset against disposal fees and
alignment fees. During the period advances of USD0.3 million (30
June 2016: nil) were paid to the Investment Manager.
Details of payables to related parties at the date of the
condensed interim consolidated balance sheet are as below:
31 December 30 June
2016 2016
Relationship Balances USD'000 USD'000
VinaCapital
Investment
Management Investment Realisation
Ltd. Manager fees 902 7,428
Disposal
fees - 139
Development
fees and
advances
for real
estate
projects 50 391
Under
common Payments
management on behalf 32 31
VinaCapital
Vietnam Disposals
Opportunity of real
Fund Limited estate
("VOF") projects - 2,239
------------ ------------
984 10,228
As at 31 December 2016 and 30 June 2016, receivables from
related parties mainly comprise of amounts due from VOF as advance
to jointly invested real estate projects.
The interests of the related parties in the shares, underlying
shares and debentures of the Company are as follows:
As at
----------------------------------------
31 December 30 June
2016 2016
Number of shares
Vietnam Master Holding 2 Limited (*) 28,666,326 36,216,326
Asia Investment and Finance Limited (**) 19,860,250 2,372,500
VinaCapital Group Limited 993,333 993,333
VinaCapital Investment Management Limited 79,250 79,250
------------------ ------------------
(*) Vietnam Master Holding 2 Limited is a wholly-owned subsidiary of VOF.
(**) In accordance with the Second Amended Management Agreement,
the Investment Manager is required to use 50% of the realisation
fee arising from the contracted divestment proceeds collected by 21
May 2016 to make market purchases of the Company's ordinary shares
within three months of the receipt of the realisation fee. As of 31
December 2016, a subsidiary of the Investment Manager, Asia
Investment and Finance Limited, had bought a total of 19,860,250
ordinary shares of the Company (30 June 2016: 2,372,500 ordinary
shares).
31 FINANCIAL RISK MANAGEMENT
(a) Financial risk factors
The Group holds a diversified property portfolio in Vietnam. As
a result the Group is exposed to a variety of financial risks:
market risk (including price risk, currency risk and interest rate
risk); credit risk; and liquidity risk. The Group's overall risk
management programme focuses on the unpredictability of financial
markets and seeks to minimise potential adverse effects on the
Group's financial performance. The Group's risk management is
coordinated by its Investment Manager who manages the distribution
of the assets to achieve the investment objectives.
The condensed interim consolidated financial statements do not
include all financial risk management information and disclosures
required in the annual consolidated financial statements, and
should be read in conjunction with the Group's annual consolidated
financial statements as at 30 June 2016. There have been no major
changes in the risk management department of the Investment Manager
and risk management policies since the most recent year end.
(b) Fair value estimation
The table below analyses financial instruments carried at fair
value by valuation method. The different levels have been defined
as follows:
-- Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
-- Inputs other than quoted prices included within Level 1 that
are observable for the asset or liability, either directly (that
is, as prices) or indirectly (that is, derived from prices) (Level
2); and
-- Inputs for the asset or liability that are not based on
observable market data (that is, unobservable inputs) (Level
3).
The following table presents the Group's assets and liabilities
that are measured at fair value at 31 December 2016:
Level Level Level Total
1 2 3
As at 31 December USD'000 USD'000 USD'000 USD'000
2016
Financial assets
held at fair value
through profit
or loss
* Ordinary shares - unlisted - 269 - 269
Level Level Level Total
1 2 3
As at 30 June USD'000 USD'000 USD'000 USD'000
2016
Financial assets
held at fair value
through profit
or loss
* Ordinary shares - unlisted - 269 - 269
* Derivatives - 115 - 115
Financial liabilities
* Derivatives - (6,945) - (6,945)
There were no significant transfers between levels during the
period (year ended 30 June 2016: none).
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UKOWRBRAOURR
(END) Dow Jones Newswires
March 29, 2017 04:44 ET (08:44 GMT)
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