notes to the
financial statements
31 December 2015
26.
Other reserves (cont’d)
Statutory reserve fund
Group
Company
2015
$’000
2014
$’000
2015
$’000
2014
$’000
At beginning of the year
707
707
–
–
Appropriation from retained earnings
86
–
–
–
At end of the year
793
707
–
–
In accordance with the Foreign Enterprise Law applicable in the People’s Republic of China (“PRC”), the subsidiaries in
the PRC are required to make appropriations to the Statutory Reserve Fund (“SRF”). At least 10% of the statutory after tax
profits as determined in accordance with the applicable PRC accounting standards and regulations must be allocated
to the SRF until the cumulative total of the SRF reaches 50% of the subsidiary’s registered capital. Subject to approval
from the relevant PRC authorities, the SRF may be used to offset any accumulated losses or increase the registered
capital of the subsidiary. The SRF is not available for dividend distribution to shareholders.
Gain on reissuance of treasury shares
Group
Company
2015
$’000
2014
$’000
2015
$’000
2014
$’000
At beginning of the year
1,826
1,354
1,826
1,354
Gain on reissuance of treasury shares during the
year taken to equity pursuant to performance
share scheme
–
472
–
472
At end of the year
1,826
1,826
1,826
1,826
The Company reissued Nil (2014: 866,200) treasury shares during the reporting year pursuant to its performance
share scheme at an average fair value of $Nil (2014: $0.929) per share. The excess of the average fair value of $Nil
(2014: $0.929) per share over the weighted average cost of $Nil (2014: $0.385) per treasury share was recognised in
this reserve. This reserve is not available for dividend distribution to shareholders.
Premium paid on acquisition of non-controlling interests
Group
Company
2015
$’000
2014
$’000
2015
$’000
2014
$’000
At beginning of the year
(2,549)
(2,549)
–
–
Acquisition of non-controlling interest of
subsidiaries without a change in control
(1,278)
–
–
–
At end of the year
(3,827)
(2,549)
–
–
• e x p e r i e n c i n g
k i n g s m e n
9 8
