CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2021 FINANCIALS 210 211 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021 YEAR ENDED 31 DECEMBER 2021 38 RELATED PARTIES Other than as disclosed elsewhere in the financial statements, the transactions with related parties based on terms agreed between the parties are as follows: Group 2021 2020 $’000 $’000 Insurance premium paid and payable to an associate of the ultimate holding company (100) (1,117) Management services fees received and receivable from: – fellow subsidiaries 2,529 601 – associates 186 765 – joint ventures 6,624 5,249 9,339 6,615 Maintenance services fees received and receivable from: – fellow subsidiaries 355 282 – associates 214 227 – joint ventures 893 809 1,462 1,318 Rental and rental-related income received and receivable from: – a fellow subsidiary 342 291 – associates 2,758 4,952 – joint ventures 5,943 67 9,043 5,310 Management services fees paid and payable to a fellow subsidiary (1,022) (1,295) Rental and rental-related expenses paid and payable to a joint venture (1,739) (1,756) Purchase of property, plant and equipment from an associate (88) (438) Purchase consideration for investment acquired paid and payable to a joint venture (54,571) – Compensation paid and payable to key management personnel: – short-term employee benefits 16,020 15,641 – other long-term benefits 256 205 16,276 15,846 39 ACQUISITION OF AND LOSS OF CONTROL IN SUBSIDIARIES, AND CHANGES IN INTERESTS IN SUBSIDIARIES WITHOUT LOSS OF CONTROL (I) Acquisition of subsidiaries 2021 In February 2021, the Group through its indirect wholly-owned subsidiary, Chenghao (Shanghai) Investment Co., Ltd., acquired 84.6% of the shares and voting interest in Shenzhen Tusincere Technology Park Development Co. Ltd. (“Shenzhen Tusincere”), which holds a 65% equity interest in Shenzhen Longgang District Qidixiexin Science and Technology Development Park Co., Ltd. (“Shenzhen Longgang”), from Sincere Property Group, a then joint venture of the Group, and two third parties, for a consideration of approximately $174.3 million (RMB853.4 million), together with the assumption of proportionate existing shareholder loans of approximately $173 million (RMB 847 million). The acquisition provided the Group an opportunity to enhance its property portfolio in China. The acquisition was accounted for as a business combination. From the date of acquisition to 31 December 2021, Shenzhen Tusincere contributed revenue of $222.8 million and profit before tax of $44.0 million to the Group’s results. If the acquisition had occurred on 1 January 2021, management estimated the Group’s revenue for the period would have been $2,654.4 million, with no significant change to the Group’s profit before tax. Identifiable assets acquired and liabilities assumed The following table summarises the recognised amounts of assets acquired and liabilities assumed at the acquisition date. Note Recognised amounts $’000 Property, plant and equipment 4 21,304 Investment properties 5 341,753 Development properties 948,309 Trade and other receivables 17,356 Contract costs 1,003 Cash at bank 5,564 Trade and other payables (145,525) Shareholder loans (297,972) Contract liabilities (166,443) Employee benefits (813) Lease liabilities (2,876) Provision for tax (59,567) Provisions (4,108) Interest-bearing borrowings (194,016) Deferred tax liabilities 29 (80,081) Net identifiable assets acquired 383,888
RkJQdWJsaXNoZXIy ODIwNTc=