The financial year end of South China Morning Post, Limited is 30th June, 1985, and accordingly, the Group's portion of that company's profits and reserves has been partly determined by reference to unaudited published interim results.
Union Faith Company Limited, which is a 50% held associate of Hutchison Whampoa Limited with the other 50% being held by Hongkong Electric Holdings Limited, was set up for the purpose of acquiring the whole of the issued share capital of International City Holdings Limited during November, 1985. The total acquisition cost was HK$3,559 million which primarily represents property under development and for resale approximating HK$2,000 million, cash and other liquid assets approximating HK$1,000 million and cash held by solicitors on behalf of stakeholders approximating HK$500 million.
At the year end Union Faith Company Limited was financed partly by shareholders and partly by a bank loan of HK$2,000 million extended direct to that company. On 10th January, 1986, the financing of Union Faith Company Limited was restructured whereby further advances were made equally to that company by shareholders to repay the bank loan in full.
5. Other investments
Unquoted shares, at cost
Less: Provision for diminution in value
6. Current assets
Property under development for sale Less: Deposits on sales
Stocks
Debtors
Overseas quoted dealing investments
Bank balances and other liquid funds
Market value of quoted dealing investments
Group 1985 HK$Millions
Group
1984
HK$Millions
35.0
22.0
5.2
5.2
29.8
16.8
Company 1985
Company
Group
Group
HK$Millions
1984 HK$Millions
1985
1984
HK$Millions
HK$Millions
494.3
354.2
136.9
357.4
354.2
444.8
392.4
542.6
408.1
71.7
1.8
630.2
1,657.2
1.8
2,046.7
2,811.9
71.7
In addition to the amounts provided for in the accounts as at 31st December, 1985, there were Group commit- ments for property under development for sale as follows:
a. Contracted for
HK$388.5 million (1984 — HK$134.6 million).
b. Authorised but not contracted for - HK$1,061.7 million (1984 -— HK$2,058.6 million).
Bank balances and other liquid funds include short term deposits with licensed banks and companies registered under the Deposit-taking Companies Ordinance, amounting to HK$603.4 million (1984 - HK$1,628.2 million).
37
HUTCHISON WHAMPOA LIMITED
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