Annual Report 2011 - Wing Tai Holdings Limited

Wing Tai Holdings Limited
WT
the art of
the matter
annual report 
Contents
01
Top Elevation
Chairman’s Message
04
Perimeter
Property
07
Sensibilities
Hospitality
08
Urban Ensemble
Retail
10
Cross Section
Corporate Data
11
Composition
Board of Directors
14
Interconnecting
Key Management
15
Framework
Corporate Governance
20
Reflections
Calendar of Events
21
For the Year 2011
Financial Reports
Chairman’s Message
01
Top
Elevation
OVERVIEW
he Singapore economy grew by 14.5% in 2010. Given
the ongoing global economic uncertainty, the Singapore
economy is expected to grow at a range of 5 to 6% in 2011,
based on official forecast.
T
Property cooling off measures announced by the Singapore
Government in January 2011 have had the effect of moderating
the rapid rise in residential property prices. Growth in private
residential property prices has since continued to be moderated.
The URA residential property price index increased by 2.0%
in the second quarter of 2011, lower than the 2.2% increase
in the previous quarter. This has been the seventh consecutive
quarter in which the rate of increase in residential property
prices had moderated. The total number of new residential
units sold island-wide was 8,039 units in the first half of 2011,
comparable to the number of new units sold in the first half
of 2010. For the second half of 2011, 30 sites under confirmed
and reserve lists, have been planned for release under the
Government Land Sales Programme, potentially yielding
14,200 private residential units.
02
GROUP PERFORMANCE
For the financial year ended 30 June 2011, the Group recorded
a total revenue of S$649.1 million. This was 21% lower than
the S$821.9 million revenue recorded in the previous year.
Revenue from development properties for the current year was
mainly attributable to the progressive sales recognised from
Helios Residences and the additional units sold in Belle Vue
Residences in Singapore.
The Group’s operating profit rose 10% from S$254.4 million
to S$281.1 million. In the current year, the Group’s operating
profit includes fair value gains of S$74.6 million from
investment properties, as compared to S$5.1 million gained
in the previous year. The Group’s share of profits of associated
and joint venture companies increased from S$51.7 million
to S$164.2 million in the current year. This 218% increase is
primarily attributable to the higher contributions from Wing
Tai Properties Limited in Hong Kong and the Floridian project
in Singapore. The Group’s net profit attributable to shareholders
for the current year is S$314.2 million, an increase of 95% over
the net profit of S$160.8 million recorded in the previous year.
The Group’s net asset value per share as at 30 June 2011 was
S$2.46 as compared to S$2.18 as at 30 June 2010. The Group’s
net gearing ratio has been reduced from 0.44 times as at
30 June 2010 to 0.35 times as at 30 June 2011. The Board
of Directors recommended a first and final dividend of 3 cents
per share and a special dividend of 4 cents per share for the
current year.
In the current year, the Group sold a total of 683 residential
units in Singapore and Malaysia, with a total sales value of
S$899 million. The Group has always been disciplined in its
land acquisition, exercising care in selecting sites that would
add value to its portfolio.
In October 2010, a choice residential site at Petir Road in the
Bukit Timah precinct was successfully acquired through the
Group’s narrow 2% winning margin in the land tender bid.
The leasehold development, Foresque Residences, was launched
in May 2011, attracting good response. To date, 86% of the 220
units released in the first phase have been sold.
In Malaysia, the Group acquired a freehold residential site
along Jalan Langgak Golf within the U-Thant/Ampang Hilir
vicinity in January 2011, while in Hong Kong, we acquired two
prime residential sites in Mid-levels West and Causeway Bay
in the second half of 2010. In China, the Group entered
into a joint venture with Singbridge Guangzhou Pte Ltd
in April 2011, for residential property development in the
Sino-Singapore Guangzhou Knowledge City, a premier
landmark development that will become China’s leading
model of eco-smart city development.
The Group’s investment properties comprising commercial
developments and serviced apartments fared well, contributing
S$37.1 million for the current year. In retail, the Group
performed well, with 13% increase in revenue and a higher
increase in operating profit over the previous year.
CORPORATE BRANDING
In line with elevating the Group’s focus and commitment as
an integrated property developer, in November 2010 DNP
Holdings Berhad in Malaysia was renamed Wing Tai Malaysia
Berhad, following the rebranding of Wing Tai Properties
Limited in Hong Kong in the previous year. The Group’s
network of companies are now better aligned to capitalise on
the Wing Tai Asia branding and to strengthen their presence
in key markets.
PROSPECTS
The Group shall closely watch the market, and continue to
build its landbank with selective site acquisition and to market
its high-end properties such as Helios Residences, Belle Vue
Residences and L’VIV. Preview and release of two luxury
developments viz. the Le Nouvel Ardmore and Nouvel 18 will
be paced with market sentiments.
APPRECIATION
I would like to thank our shareholders, customers, bankers
and business partners for their support and confidence in the
Group. I would also like to thank Directors on the Board for
their counsel and dedication. To the management and staff,
I would like to acknowledge their commitment to growing
the Group’s business.
CHENG WAI KEUNG
Chairman
20 September 2011
A sanctuary of
sophistication for
the affluent class
03
04
Property
Nature’s
waywardness
and soulfulness
captured in
Belle Vue’s
curved geometry
Perimeter
SINGAPORE
aster architect Toyo Ito’s first and
only residential condominium project
in Asia, the freehold Belle Vue Residences
on Oxley Walk, has continued to receive
strong interest from homebuyers, with
approximately 80% of the total of 176 units
sold as of 30 June 2011. In September
2010, Mr Ito joined Mr Edmund Cheng in
presenting the nature-themed development
at a media event hosted for top media
representatives from the region on the
luxuriously lush grounds of the residences.
M
05
Helios Residences, a 140-unit freehold
development at Cairnhill Circle in Singapore’s
prime District 9 obtained its Temporary
Occupation Permit in January 2011. Over 70
units have been sold and vacant possession
of the apartments has commenced since
the third quarter of 2011. L’VIV, a 147-unit
freehold development at Newton Road sold
over 100 units, more than 70% of the available
units. Construction has commenced for this
development. Floridian, a 336-unit freehold
development at Bukit Timah has continued
to receive positive response from homebuyers,
and was 84% sold as of 30 June 2011.
In May 2011, the Group commenced the
Phase 1 launch of Foresque Residences, an
attractive site in the Upper Bukit Timah
precinct acquired in October 2010. The 496unit leasehold development on Petir Road was
welcomed by buyers; of the 200 units released,
163 were sold in just two months. Ascentia Sky
by Tanglin, a 373-unit leasehold development
launched in July 2009 sold 316 units as of June
2011. The 85% take-up rate of this leasehold
development has been positively regarded, in
consideration of its relatively larger apartment
size and higher quantum sum.
Construction of two high-end developments
designed by eminent Pritzker Prize laureate
Jean Nouvel has also commenced. The preview
and release of the Le Nouvel Ardmore at
Ardmore Park and Nouvel 18 at Anderson
Road will be paced in accordance to market
sentiments. Exclusive private previews have
commenced for the Le Nouvel Ardmore, with
the sale of one unit in June 2011.
Singapore continues to see strong demand
for office space with an excellent economic
performance of 14.5% growth rate achieved
last year. Occupancy rates remained healthy
despite the completion of 2.2 million square
feet new office space during the year. The
Group’s investment properties fared well, with
Winsland House I and II, and Burlington
Square achieving an average occupancy of 90%.
MALAYSIA
The Group’s property business activities in
Malaysia are conducted through its subsidiary
company, Wing Tai Malaysia Berhad, formerly
known as DNP Holdings Berhad. The name
change effective 12 November 2010 was part
of the company’s corporate rebranding and a
major step towards elevating the company’s
focus and commitment as an integrated
property developer.
In Kuala Lumpur, Verticas Residences,
a 423-unit freehold development at Bukit
Ceylon, is 64% sold and currently under
construction, with completion expected in
the middle of 2012. Nobleton Crest, U-Thant,
a 25-unit development located at Jalan
U-Thant is launch-ready. Construction works
are on-going, with completion targeted at the
end of 2013. At Sering Ukay, Phase 3, which
comprises 130 units of semi-detached and 22
units of detached houses, is pending layout
approval from the Malaysian authorities. The
Le Nouvel@KLCC, a high-end twin-tower
development at Jalan Ampang is currently
under construction.
The Group acquired the Bandar Sunway site
in April 2010, to build 76 units of semidetached houses. The project is currently
pending layout approval from the Malaysian
authorities and is expected to be launch-ready
by early 2012. In January 2011, the Group
further acquired a freehold residential site
along Jalan Langgak Golf within the U-Thant/
Ampang Hilir vicinity.
In Penang, Phases 4 and 5 of Taman Seri
Impian, comprising 123 units of 2-storey
terrace and semi-detached houses, are
completed and fully sold. Phase 2 of Taman
BM Utama, comprising 215 units of 2-storey
terrace and semi-detached houses, is 99%
06
completed and 91% sold, while 7 units of
2-storey commercial shops have recently
been completed and made available for lease.
Phase 3, comprising 138 units of 2 & 3-storey
terrace houses, is under construction, and
25% sold. BM Jesselton in Alma, a highend development, is 13% sold. Impiana
Commercial Hub, comprising 2-storey and
3-storey shop offices along Impiana Boulevard
and Impiana Avenue are 80% and 30%
completed, respectively.
HONG KONG
The Group’s property interests in Hong Kong
are represented by investments in its associated
company, Wing Tai Properties Limited.
Forfar, a 43-unit development at Forfar Road
in Kowloon is 93% sold and units have been
handed over to homeowners since the fourth
quarter of 2010. Seymour, an 82-unit high-end
development at Seymour Road in the Midlevels is 85% sold, with expected completion
in the second half of 2011. Providence Bay, the
Pak Shek Kok development at Tai Po Town is
expected to be completed in phases by 2012.
Two prime residential sites in Mid-levels West
and Causeway Bay were acquired in the second
half of 2010. These two sites, totaling a gross
floor area of approximately 108,000 square
feet, will be developed into low-density, luxury
boutique towers. Both projects are expected to
be completed between 2013 and 2014. The
two investment properties viz. Landmark East
in Kowloon East and W Square in Wan Chai
fared well, achieving occupancy of 89% and
87% respectively.
CHINA
The Group’s property business activities in
China are conducted through its subsidiary
company, Jiaxin (Suzhou) Property
Development Co., Ltd.
In April 2011, the Group entered into a joint
venture with Singbridge Guangzhou Pte
Ltd, a subsidiary of Singbridge International
Singapore Pte Ltd, for a residential property
development in the Sino-Singapore
Guangzhou Knowledge City. Designed by
world-renowned architect Foster + Partners,
the 10-hectare site adjacent to the Jiulong
Dadao will be developed in phases over
five years. The Group holds a 40% stake in
the project.
The Group will continue to strengthen
its China networks and seek investment
and marketing opportunities in the key
growth cities.
This page:
Enchanting ambience
of outdoor terrace and
private pool at the
majestic Forfar
Opposite page:
A private world
away from home
Hospitality
07
Sensibilities
T
he Group continues to expand its Lanson Place chain of
branded hospitality services in strategic locations in Asia.
In Hong Kong, Lanson Place Hotel achieved healthy
occupancy of 81% and won top awards for its design and
service. These included the “2010 Best Design Hotel” at the
Annual Travel Awards by Travel & Leisure magazine in January
2011 and “Highly Commended Hotel” at the inaugural Asia
Pacific Hotel Awards in association with Bloomberg Television
in June 2011.
In China, Lanson Place Central Park in Beijing and Lanson
Place Jinlin Tiandi in Shanghai Puxi achieved high occupancy
of 95% and 92% respectively, and held their place as the market
leaders in both cities. Lanson Place Jin Qiao in Shanghai
Pudong was fully opened in September 2010, having bagged
the “Best Serviced Apartment of China 2010” award in March
2011 for its excellent service and hospitality.
Singapore’s Lanson Place Winsland also recorded a high
occupancy of about 80%. In Malaysia, Lanson Place
Ambassador Row performed relatively well, despite the soft
conditions in a competitive market. Lanson Place Bukit Ceylon,
a brand new premier project in Kuala Lumpur with over
100 units, is currently under construction and scheduled to
operate by the end of 2012.
08
Retail
Urban Ensemble
T
he Group’s retail division anchored its
pole position among Singapore fashion
retailers, through a national recognition
awarded to it in June 2011, identifying Wing
Tai as one of four service excellence icons
handpicked by the GEMS (Go the Extra Mile
for Service) Up Committee comprising Spring
Singapore, NTUC, Workforce Development
Agency, Singapore Tourism Board and
Institute of Service Excellence at SMU,
in praise of its breakthroughs in achieving
customer service excellence.
Wing Tai Retail, the only retailer in Singapore
that is recognised as an Iconic Service
Organisation, presented a national showcase of
its Customer Centric Initiatives to the media,
government and industry partners. Minister for
Prime Minister’s Office and NTUC SecretaryGeneral Mr Lim Swee Say, who attended
the event, lauded Wing Tai’s commitment
to seek for continuous breakthroughs in the
transformations of its retail management
and people development. One example of
such is the initiative of creating a culture of
fashion consciousness and knowledge through
equipping all staff with the latest fashion and
product knowledge. Wing Tai Retail is also
the first retailer who will be collaborating
with Fashion Institute of Technology in
New York with a customised certification
programme on fashion styling which aims to
bring both service and professional standards
to new heights. Following the success of the
pilot programmes, similar customer-centric
programmes will also be rolled out to other
retail brands, such as Yoshinoya, which will
be introducing a customer self-ordering
kiosk system, targeted for launch in the
third quarter of 2011.
As of 30 June 2011, the Group’s retail square
footage exceeded 400,000 square feet with
over 200 stores across Singapore and Malaysia.
Its portfolio of leading fashion and lifestyle
brands – 18 in Singapore and 11 in Malaysia
– were boosted by the opening of two streetfronting Topshop/Topman flagship store on
Singapore’s Orchard Road in December 2010,
and the popular Japanese label Uniqlo in
Kuala Lumpur’s new mall Fahrenheit 88
in Bukit Bintang in November 2010.
Besides achieving positive results in its
customer satisfaction audits conducted
internally and by external media, the retail
division performed well financially, with 13%
increase in revenue and a higher increase in
operating profit over the previous year.
This page:
Standing out as
the singular girl
Opposite page:
The colour palette of
the fashion authority
09
10
Corporate Data
Cross Section
BOARD OF
DIRECTORS
Executive
Cheng Wai Keung
Chairman/Managing Director
REMUNERATION
COMMITTEE
Lee Han Yang
Chairman
Edmund Cheng Wai Wing
Deputy Chairman/
Deputy Managing Director
Tan Sri Dato’ Mohamed
Noordin bin Hassan
Tan Hwee Bin
Executive Director
Chng Chee Beow
Property Director
Non-Executive
Boey Tak Hap
Independent
Cheng Man Tak
Tan Sri Dato’ Mohamed
Noordin bin Hassan
Independent
Boey Tak Hap
NOMINATING
COMMITTEE
Loh Soo Eng
Chairman
Cheng Wai Keung
Tan Sri Dato’ Mohamed
Noordin bin Hassan
Phua Bah Lee
Lee Han Yang
Independent
Lee Kim Wah
Ooi Siew Poh
Phua Bah Lee
Independent
Paul Tong Hon To
Independent
AUDIT COMMITTEE
Paul Tong Hon To
Chairman
Boey Tak Hap
Lee Han Yang
Phua Bah Lee
Wing Tai Retail Pte Ltd
Helen Khoo
Executive Director
Loh Soo Eng
COMPANY
SECRETARIES
Gabrielle Tan
Loh Soo Eng
Independent
Wing Tai Property
Management Pte Ltd
Helen Chow
Director
EXECUTIVE OFFICERS
Len Siew Lian
General Manager, Property
Ng Kim Huat
Chief Financial Officer
Karine Lim
General Manager
Group Human Resource
SUBSIDIARY
COMPANIES
Wing Tai Malaysia Berhad
Dato’ Roger Chan
Wan Chung
Executive Director
REGISTERED OFFICE
3 Killiney Road
#10-01 Winsland House 
Singapore 239519
Tel: 6280 9111
Fax: 6732 9956
www.wingtaiasia.com.sg
REGISTRAR &
TRANSFER OFFICE
Tricor Barbinder Share
Registration Services
(A division of Tricor
Singapore Pte. Ltd.)
8 Cross Street
#11-00 PWC Building
Singapore 048424
AUDITORS
PricewaterhouseCoopers
LLP
Public Accountants and
Certified Public Accountants
8 Cross Street
#17-00 PWC Building
Singapore 048424
Audit Partner:
Choo Eng Beng
(Year of Appointment: 2011)
PRINCIPAL BANKERS
DBS Bank Limited
6 Shenton Way
DBS Building
Singapore 068809
The Hongkong and
Shanghai Banking
Corporation Limited
21 Collyer Quay
HSBC Building
Singapore 049320
Malayan Banking Berhad
2 Battery Road
Maybank Tower
Singapore 049907
Overseas-Chinese Banking
Corporation Limited
65 Chulia Street
OCBC Centre
Singapore 049513
The Bank of TokyoMitsubishi UFJ, Ltd
9 Raffles Place
#01-01 Republic Plaza
Singapore 048619
United Overseas
Bank Limited
80 Raffles Place
UOB Plaza
Singapore 048624
Board of Directors
11
Composition
CHENG WAI KEUNG is Chairman of the Board of Wing
Tai Holdings Limited (the “Company”), appointed since 1994.
He is also Managing Director of the Company and a member
of the Nominating Committee. Mr Cheng is Chairman of
Neptune Orient Lines Limited, a company listed on the
SGX-ST, Vice Chairman of Singapore-Suzhou Township
Development Pte Ltd and Managing Director of Wing Tai
Malaysia Berhad, a company listed on the Bursa Malaysia
Securities Berhad. He holds directorships in public and private
companies, including Temasek Holdings (Private) Limited and
has served on the boards of several government organisations.
He was awarded the Distinguished Service Order (DUBC) by
the Singapore Government in August 2007, and received the
Public Service Star (Bar) (BBM-Lintang) in 1997 and Public
Service Star (BBM) in 1987. He has been appointed Justice of
The Peace by the Singapore President since 2000. Mr Cheng
graduated with Masters of Business Administration from the
University of Chicago, after obtaining his Bachelor of Science
degree from Indiana University. Mr Cheng was re-elected
director on 28 October 2009.
EDMUND CHENG WAI WING has served as Deputy
Chairman and Deputy Managing Director of the Company,
and as Executive Director of Wing Tai Malaysia Berhad since
1984. He is also Chairman of SATS Limited, a company listed
on the SGX-ST; Mapletree Investments Pte Ltd; Singapore’s
National Arts Council; and DesignSingapore International
Advisory Panel. He is a member of Nanyang Technological
University’s Board of Trustees; The Esplanade Co Ltd; and
International Council for Asia Society. He was President of
REDAS (Real Estate Developers’ Association of Singapore)
and now serves as a member on its Presidential Council. For
his contribution to public service, he was awarded the Public
Service Star Award (Bar) in 2010, Public Service Star Award
(BBM) in 1999 and Outstanding Contributor to Tourism
Award in 2002 by the Singapore Government. Mr Cheng
graduated from Northwestern University and Carnegie
Mellon University in USA, with a Bachelor’s degree in Civil
Engineering and Master’s in Architecture, respectively.
Mr Cheng was re-elected director on 30 October 2008.
BOEY TAK HAP has served as a non-executive director since
2 May 1997. He is a member of both the Audit Committee
and Remuneration Committee. Mr Boey was formerly the
Chief of Army, Singapore Armed Forces and President and
CEO of Singapore Power Group. He was also President and
CEO of SMRT Corporation as well as Chief Executive of the
Public Utilities Board. Mr Boey graduated from the University
of Manchester Institute of Science and Technology with a
Bachelor of Science degree in Automatic Control and System
Engineering with Management Sciences. In January 2002, he
was conferred Honorary Doctor of Engineering by his alma
mater. He also holds a Diploma in Business Administration
from the National University of Singapore and has attended
the Harvard Business School’s Advanced Management
Programme in Boston, USA. Mr Boey was re-elected director
on 28 October 2009.
CHENG MAN TAK has served as a non-executive director
since 11 May 1981. He is Vice-Chairman of Federation of
Hong Kong Industries – Group 24, director of the Federation
of Hong Kong Garment Manufacturers and a member of
the Occupational Safety and Health Council of Hong Kong.
He is also a member of the Advisory Committee of Poly
University (Institute of Textile and Clothing Industries) and
a committee member of Federation of Hong Kong Industries
in Hong Kong. Mr Cheng graduated from the University of
Southern California with a Bachelor of Science degree and
holds a Masters in Business Administration from Pepperdine
University, USA. Mr Cheng was re-elected director on
25 October 2010.
12
TAN SRI DATO’ MOHAMED NOORDIN
BIN HASSAN has served as a non-executive director since
27 September 2002 and is a member of both the Nominating
Committee and Remuneration Committee. He has more than
40 years’ experience with the Malaysia Government, serving at
district, state and federal levels including as Deputy Secretary
General at the Ministry of Trade and Industry; Secretary
General at Ministry of Science, Technology and Environment;
and Secretary General at the Ministry of Education. After
retiring from the Malaysian civil service in September 1994,
he joined Petronas Berhad, as Vice President of Group Human
Resource and Vice President of Education until 31 August
2000. He is currently Chairman of Wing Tai Malaysia Berhad,
a company listed on the Bursa Malaysia Securities Berhad,
and also sits on the Board of several subsidiaries of Wing Tai
Malaysia Berhad as well as other companies in Malaysia. He
graduated from the University of Malaya with a Bachelor of
Arts (Honours) degree in Economics, and holds a Master’s
in Public and International Affairs from the University of
Pittsburgh, USA. Tan Sri Dato’ Mohamed Noordin was
re-elected director on 25 October 2010.
LEE HAN YANG has served as a non-executive director
since 3 January 1989. He is Chairman of the Remuneration
Committee and a member of the Audit Committee. He is a
Barrister-at-Law of Lincoln’s Inn, London and an Advocate
and Solicitor of the Supreme Court of Singapore. Mr Lee
currently sits on the Board of Low Keng Huat (Singapore)
Ltd, a company listed on the SGX-ST. He is also a director of
Tan Chong International Ltd, a company listed on the Stock
Exchange of Hong Kong. Mr Lee is an active member of the
Law Society of Singapore and has served on several committees
of the Law Society. He also serves on the Board of the Society
for the Physically Disabled and until recently he was on the
board of the National Council of Social Service. In August
2006, he was awarded the Public Service Star (BBM) by the
President of Singapore. Mr Lee was re-elected director on
25 October 2010.
LEE KIM WAH has been appointed Senior Advisor to
the Company since 5 December 2008 and remains on the
board as a non-executive director. He serves as a treasurer of
the Singapore National Employers’ Federation. Educated in
Accountancy in Australia, Mr Lee was a manager in a public
accounting firm before joining the Company, where he has
served for over 40 years, as Finance Director from May 1977
to December 2008. Mr Lee was conferred the Public Service
Medal (PBM) by the Singapore Government in 2000. In 2009,
he was awarded the prestigious Medal of Commendation
(Gold) for his significant contribution towards the Singapore
Labour Movement. Mr Lee was re-elected director on
25 October 2010.
LOH SOO ENG has served as a non-executive director
since 1 June 2004, after retiring as Director-Property. He
is Chairman of the Nominating Committee and a member
of the Remuneration Committee. Mr Loh is currently a
director of Wing Tai Properties Limited, a company listed
on the Stock Exchange of Hong Kong. He has experience in
power, oil, shipbuilding and ship repair industries, as well as in
banking, where he had been for 17 years with the DBS Group,
as Executive Director of Raffles City Pte Ltd and General
Manager of DBS Land. Mr Loh has served on Government
committees, including SAFTI Military College and Temasek
Polytechnic. He was Chairman of SLF Properties Pte Ltd and
SLF Management Services Pte Ltd and was President of Real
Estate Developers’ Association of Singapore (REDAS) from
2001 to 2003. He graduated with a Bachelor of Engineering
(Mechanical) degree from the University of Adelaide, Australia.
Mr Loh was re-elected director on 25 October 2010.
13
PHUA BAH LEE has served as a non-executive director
since 11 January 1989 and is a member of both the Audit
Committee and Nominating Committee. Mr Phua is currently
a director of GP Industries Limited, Metro Holdings Limited,
Singapura Finance Limited and Pan-United Corporation
Limited, all companies are listed on the SGX-ST. He also
holds directorships in a number of private companies. He
was the Singapore Parliamentary Secretary of the Ministry of
Communications from 1968 to 1971; Senior Parliamentary
Secretary of the Ministry of Defence from 1972 to 1988;
and an elected Member of Parliament for the Tampines
Constituency from 1968 to 1988. He graduated from
the Nanyang University in Singapore with a Bachelor of
Commerce degree. Mr Phua was re-elected director on
25 October 2010.
TAN HWEE BIN has been appointed Executive Director
of the Company since 5 December 2008. Prior to her
appointment to the board, she was the Chief Operating
Officer. Ms Tan is a Certified Public Accountant and graduated
with a Bachelor of Accountancy degree from the National
University of Singapore. In 2005, she completed the Advanced
Management Program at Harvard Business School. Ms Tan is
Chairman of NTUC Healthcare Co-operative Ltd. She is also
director of Singapore Labour Foundation, NTUC FairPrice
Co-operative Ltd and Agency for Integrated Care Pte Ltd. She
is a member of the Finance and Establishment Committee of
Chinese Development Assistance Council and Middle East
Business Group Singapore. She was awarded the Public Service
Medal (PBM) in 2011. Ms Tan was re-elected director on
28 October 2009.
PAUL TONG HON TO has served as a non-executive
director since 16 August 2007 and is a Chairman of the
Audit Committee. He is currently a non-executive director
of Chinney Investments, Limited, publicly listed on the
Stock Exchange of Hong Kong. Mr Tong has many years of
senior management experience in manufacturing and trading
businesses with global operations. He was formerly Executive
Vice President and General Counsel of Johnson Electric
Holdings Limited. He also served as a member on the Inland
Revenue Board of Review in Hong Kong. Mr Tong obtained
his Bachelor of Science (Economics) degree and postgraduate
Certificate of Management Studies from the University of
London and the University of Oxford in England, respectively.
He was admitted as Barrister of the Middle Temple in England,
the Supreme Court of Hong Kong, and the High Court of
Australia. He is also a CPA of The Hong Kong Institute of
Certified Public Accountants; and an Associate Member of
The Institute of Chartered Secretaries and Administrators.
Mr Tong was re-elected director on 25 October 2010.
CHNG CHEE BEOW has served as Property Director
of the Company since 5 December 2008. He has been with
the Company since October 1987 and sits on the boards of
several subsidiaries of the Company. A registered Architect
by profession, he is Honorary Assistant Secretary of REDAS
Management Committee. He is also a member of the BCA
Universal Design Awards Assessment Panel, Professional
Engineer Board Investigation Panel, BCA BIM Steering
Committee and MND Planning Appeal Inspector. Mr Chng
graduated with a Bachelor of Architecture degree and has a
postgraduate Diploma in Building Science from the National
University of Singapore. Mr Chng was re-elected director on
28 October 2009.
14
Key Management
Interconnecting
DATO’ ROGER CHAN WAN CHUNG joined Wing Tai
Malaysia Berhad (“WTMB”) as General Manager in
June 1971 and he is one of the pioneer staff of WTMB.
With over 40 years’ experience in the garment business, he
assists the Managing Director in overseeing the day-to-day
operation of the WTMB Group. He was appointed to the
WTMB Board on 18 August 1988 and currently sits on the
Board of several subsidiaries of WTMB Group and other
private limited companies.
HELEN CHOW is Director of Wing Tai Property
Management Pte Ltd appointed since November 1991, having
held various positions in the Company since 1975. She is
responsible for marketing and sales functions in the property
division. She develops and implements strategies to achieve
optimal marketing mix for property products, as well as
manages sales operations across geographies to achieve revenue
goals. She holds a Bachelor of Arts degree from Mills College,
Oakland, California, USA.
HELEN KHOO is Executive Director of Wing Tai
Retail Pte Ltd and oversees the Company’s retail and food
businesses. With close to 30 years of experience in retail and
F&B businesses, Mrs Khoo drives the growth and expansion
of the Company’s portfolio of retail brands and continually
leads her team to winning industry awards. She was conferred
the International Management Action Award (IMAA)
in 2007 and Retail Leadership Award in 2008. In 2011,
she was awarded by WDA as Singapore Workforce Skills
Qualifications Champion and chairing WDA’s Retail
Industry Skills and Training Council in the new 2011 term.
She is also appointed as a member of the Policy Advisory
Committee of Spring Singapore. As Honorary Secretary
of the Singapore Retailers Association and the Honorary
Treasurer of Orchard Road Business Association, she has
been involved in national committees to develop the local
retail industry. She graduated with a Bachelor of Arts
degree from the University of Hong Kong.
LEN SIEW LIAN is General Manager (Property) of
Wing Tai Holdings Limited. In addition to the portfolio
of residential marketing and project launches of development
properties for sale, she also oversees the asset management of
the commercial/investment properties. She joined the Company
in September 1989 where she was involved in commercial
leasing of both office and retail, having spent her early career
with an international property consultancy firm. Ms Len
graduated with a Bachelor of Science (Estate Management)
degree from the National University of Singapore and, in 2008,
completed the Advanced Management Program at Harvard
Business School.
NG KIM HUAT is Chief Financial Officer, Wing Tai
Holdings Limited. He has been with the Company since
December 2003, having more than 10 years of auditing
experience with an international public accounting firm in
Singapore as a Certified Public Accountant. He graduated
with a Bachelor of Accountancy (Honours) degree from the
National University of Singapore.
KARINE LIM is General Manager, Group Human Resource
and has been with the Company since March 2004, having
more than 18 years of human resource management experience
in the retail, property and public transport industries. She
graduated with a Bachelor of Arts (Honours) degree from the
National University of Singapore and has acquired a Diploma
in Human Resource Management from the Singapore Human
Resource Institute.
Corporate Governance
15
Framework
The Company believes that good corporate governance is vital
to its overall business integrity and performance. The Company
is committed to complying and maintaining high standards of
corporate governance to ensure corporate transparency and to
safeguard shareholders’ interests. The principles, structures and
processes of corporate governance as adopted by the Company
are set out in this report which is in line with the principles and
guidelines of the Code of Corporate Governance 2005.
BOARD MATTERS | The Board’s Conduct of its Affairs
The principal functions of the Board include approving
strategic business plans and major acquisitions or disposal of
assets, reviewing Management performance, reviewing the
Group’s corporate policies and financial performance, approving
quarterly and annual financial results of the Group, and
establishing a framework of prudent and effective controls to
assess and manage risk. The Board is responsible for the overall
management of the Company, and the Directors objectively
take decisions in the interests of the Company. The Board
continues to set the Company’s values and standards to ensure
obligations to shareholders and other stakeholders are properly
understood and met.
The Board conducts regular meetings on a quarterly basis and
as necessary when circumstances arise. A total of four Board
meetings were held in the current financial year. Details of
attendance of the directors at the Board and Board Committee
meetings for the year are as follows:
Name
Board
Audit
Committee
Remuneration
Committee
Nominating
Committee
Meetings
Held: 4
Meetings
Held: 4
Meetings
Held: 3
Meetings
Held: 1
Cheng Wai Keung
4
Edmund Cheng
Wai Wing
4
Boey Tak Hap
4
Cheng Man Tak
4
Tan Sri Dato’
Mohamed
Noordin
bin Hassan
4
1
4
3
3
Lee Han Yang
4
Lee Kim Wah
4
4
Loh Soo Eng
4
Phua Bah Lee
4
4
Paul Tong Hon To
4
4
Tan Hwee Bin
4
Chng Chee Beow
4
1
3
3
1
1
Matters which require the Board’s approval include those
involving material acquisitions and disposal of assets, dividends
and other returns to shareholders, fund raising exercises,
corporate and financial restructuring and interested person
transactions of a material nature.
A director’s contribution may extend beyond the confines
of formal Board meetings, through sharing of views, advice,
experience, and strategic networking relationships which would
further the interests of the Company.
The Board is responsible for the overall strategy and direction
of the Group and is regularly updated on changes to regulations
and accounting standards. Where regulatory changes have an
important bearing on the Company’s or directors’ disclosure
obligations, directors are briefed during Board meetings. Newly
appointed directors are given briefings by Management on the
Group’s business, directions and policies.
It is important that every director receives further relevant
training, particularly on relevant new laws, regulations and
changing commercial risks from time to time. The Company
Secretary keeps the Directors informed as and whenever
there are appropriate courses, conferences and seminars such
as those conducted by the Singapore Institute of Directors.
The Directors are encouraged to attend such training at the
Company’s expense. During FY2011, the seminars attended by
Directors were “Risk Management Essentials” and “Practical
Guide for Achieving Board Effectiveness”.
Board Composition and Balance | The Board currently
comprises a majority of non-executive directors, with one-half
of the Board being independent directors. The Nominating
Committee (“NC”) reviews the independence of each director
annually based on the definition of independence as stated in
the Code of Corporate Governance 2005 (“Code”) to ensure
that there is a strong and independent element on the Board.
According to the Code, an “independent” director is one who
has no relationship with the company, its related companies
or its officers that could interfere, or be reasonably perceived
to interfere, with the exercise of the director’s independent
business judgement with a view to the best interests of the
company. In addition, an independent director should have no
relationship with any substantial shareholder of the Company.
When considering the independence of the Directors, the
NC also reviews the annual declaration by the independent
non-executive Directors regarding their independence and the
Directors’ disclosures of interests in transactions. There are 12
16
members on the Board, four of whom are executive directors
and eight are non-executive directors (inclusive of six
independent directors).
The Board considers its current size and members whose core
competencies, qualifications, skills and experience are extensive
and complementary, to be appropriate. The Board will examine
its size and composition whenever circumstances require it. No
individual or smaller group of individuals dominates the Board’s
decision-making process.
Chairman and Managing Director | The Chairman is also
the Managing Director (“MD”) of the Group and has overall
responsibility for the management and operation of the Group
supported by the respective Heads of Departments. There is
adequate accountability and transparency as reflected by the
internal controls established within the Group. The Board is
also well balanced with a strong and independent group of nonexecutive directors to maintain its independence.
Mr Cheng Wai Keung’s primary role as Chairman is to assist
the Board in developing policies and strategies and ensuring
that they are implemented effectively. Mr Cheng also provides
leadership to the Board and ensuring that Board meetings are
held when necessary and that Board members are provided with
complete, adequate and timely information. As MD, he makes
key decisions on the management and operations of the Group
and is responsible for the conduct of the business and affairs of
the Group, supported by the respective Heads of Departments.
The sustained growth of the Company under Mr Cheng’s
leadership shows his ability to discharge the responsibilities of
both roles effectively.
BOARD COMMITTEES | To assist the Board in the
execution of its responsibilities, the Board delegates specific
functions to the various Board committees in execution of its
responsibilities, namely, Audit, Nominating and Remuneration
Committees. Each of these committees has its own terms of
reference and reports its activities regularly to the Board.
Nominating Committee | Board Membership
The NC comprises four members, namely, Mr Loh Soo Eng
– Chairman of NC, Tan Sri Dato’ Mohamed Noordin bin
Hassan, Mr Phua Bah Lee (all of whom are independent
non-executive directors) and Mr Cheng Wai Keung.
The NC has adopted specific written terms of reference. The
principal functions of the NC are to make recommendations to
the Board for the appointment and re-appointment of directors
to the Board and to review the independence of each director
annually. The NC will review the composition of the Board from
time to time and to search and identify suitable candidates with
the right qualifications, expertise and experience. Each candidate
will be evaluated based on his ability to enhance the Board
through his contributions in his area of expertise and to improve
the Group’s business strategies, controls or corporate governance.
All directors are required to submit themselves for re-nomination
and re-election once every three years. At least one-third of the
directors retire at each Annual General Meeting (“AGM”) subject
to re-election annually. Directors above the age of 70 are also
required under the Companies Act to retire and offer themselves for
re-appointment by the shareholders at every AGM.
Key information on the directors are set out on pages 11 to 13
of this Annual Report.
Board Performance | The NC’s assessment of the effectiveness
and performance of the Board as a whole is conducted on
an annual basis taking into account the level of participation
and contribution of individual directors towards the Board’s
effectiveness and competencies, strategic insight, financial
literacy, business judgment, sense of accountability and
maintenance of expertise relevant to the Group. The aim of the
evaluation is to assess if each director continues to contribute
effectively and demonstrate commitment to their respective
roles. When a director serves on multiple boards, that director
is to ensure that sufficient time and efforts are allocated to the
affairs of each company with assistance from Management, who
provides relevant and complete information on a regular basis
for effective discharge of his/her duties.
Access to Information | Prior to each meeting and when the
need arises, the Board is furnished with timely and adequate
information to enable full deliberation of issues to be considered.
To ensure that the Board is able to fulfill its responsibilities, the
Management provides the Board with periodic management
reports, forecasts/budgets, financial statements and other
relevant information of the Group.
The Board has independent access to the Management and the
Company Secretary at all times. The Board seeks independent
professional advice as and when necessary to enable it to
discharge its responsibilities effectively.
The Company Secretary attends all Board meetings and ensures
that Board procedures are followed. The Company Secretary
together with the Management also ensure that the Company
complies with all applicable statutory and regulatory rules.
17
REMUNERATION MATTERS | Remuneration Committee
The Remuneration Committee (“RC”) comprises four
members, all of whom are independent non-executive directors.
The RC members are Mr Lee Han Yang - Chairman of RC,
Mr Boey Tak Hap, Tan Sri Dato’ Mohamed Noordin bin
Hassan and Mr Loh Soo Eng.
The RC reviews the remuneration of directors and key
executives of the Group and obtains advice on remuneration
matters as and when required from human resource advisers
or consultants within and outside the Group. The RC approves
the structure of the remuneration package for the Directors
and key executives to ensure that the package is competitive
and sufficient to attract, retain and motivate key executives.
No director is involved in deciding his/her own remuneration.
Directors who participate in Board Committees receive higher
fees for the additional responsibilities. All directors’ fees are
approved by shareholders at the Annual General Meeting of
the Company before they are paid.
The breakdown (in percentage terms) of the directors’
remuneration for FY2011 are as follows:Remuneration
Bands
$3,000,000 to $3,250,000
Cheng Wai Keung
Fees Salary
(%)
(%)
–
Shares
granted
during the
year
36
64#
–
#
Edmund Cheng Wai Wing
–
35
65
–
$1,250,001 to $1,500,000
Tan Hwee Bin
–
31
69^
282,000
$1,000,000 to $1,250,000
Chng Chee Beow
–
30
70^
210,000
Below $250,000
Boey Tak Hap
100
–
–
Cheng Man Tak
100
–
–
Tan Sri Dato’ Mohamed
Noordin bin Hassan
66
#
–
34
–
–
100
–
–
–
Lee Kim Wah
91
–
9^
–
Loh Soo Eng
100
–
–
–
Phua Bah Lee
100
–
–
–
Paul Tong Hon To
100
–
–
–
^
Salary
(%)
Bonus, Allowance
& Other Benefits (%)
Above $750,000
Helen Chow
46
54
Helen Khoo
28
72^
$500,000 to $750,000
Dato’ Roger Chan Wan Chung
51
49#
Len Siew Lian
39
61^
Ng Kim Huat
46
54^
Karine Lim
45
55^
#
^
Includes allowance and other benefits from Wing Tai Malaysia Berhad.
Includes the cost of the fair value of share options, restricted shares and performance
shares (where applicable).
ACCOUNTABILITY AND AUDIT | Accountability
Shareholders are provided with the Company’s performance,
financial position and prospects on a quarterly basis, while
periodic management reports of the Company and its
businesses are furnished to the Board.
Members of the AC have sufficient financial management
expertise and experience to discharge its functions. It held
four meetings in FY2011. The functions of the AC include the
review of annual audit plan, internal audit process, the adequacy
of internal controls and interested person transactions. The AC
recommends to the Board the external auditors to be appointed
or re-appointed taking into account the independence and
objectivity of such external auditors as well as to review the
scope, results and cost effectiveness of their audit procedures.
The AC also reviews the quarterly and annual financial
statements before submitting to the Board for approval.
–
#
Lee Han Yang
#
Remuneration
Bands
Audit Committee | The Audit Committee (“AC”) comprises
four members, all of whom are independent non-executive
directors. The AC members are Mr Paul Tong Hon To Chairman of AC, Mr Boey Tak Hap, Mr Lee Han Yang and
Mr Phua Bah Lee.
Other than the restricted shares and performance shares
(“Shares”) granted to Ms Tan Hwee Bin and Mr Chng Chee
Beow, no Shares nor share options were granted to the rest of
the directors during the financial year.
Bonus,
Allowance &
Other Benefits
(%)
is set out below. A significant portion of the key executives’
remuneration is linked to corporate and individual performance.
Includes fees, allowance and other benefits from Wing Tai Malaysia Berhad.
Includes the cost of the fair value of share options, restricted shares and performance
shares (where applicable).
The breakdown of the remuneration of the top six key executives
(one of whom is related to the Managing Director) for FY2011
The key function of the AC is to maintain a high standard of
corporate governance and risk management. The AC
has full access to and co-operation of the Management.
The AC meetings are held with the internal and external
auditors without the presence of the Management once
during the year. It has the discretion to invite any director
and executive officer to attend its meetings. Having reviewed
the value of non-audit services by the external auditors to the
Group, the AC is satisfied that the nature and extent of such
services will not prejudice the independence and objectivity of
the external auditors.
18
Internal Controls | The Board recognises the importance
of sound internal controls and risk management practices
in relation to good corporate governance. The Group’s
internal controls provide reasonable assurance that assets
are safeguarded, proper accounting records are maintained,
reliability of financial information and compliance with
applicable laws and regulations. Regular management meetings
are held to report and monitor the performance of each
department. Management assists the Board in monitoring and
managing risks and internal controls of the Group.
The internal auditors report directly to the Chairman of the
Audit Committee. The Audit Committee ensures that the
internal auditors are adequately resourced and has appropriate
standing within the Company and ensures, on an annual basis,
the adequacy of the internal audit function.
The Board is satisfied that based on the information furnished
to it and on its own observations, the internal controls
(including financial, operational and compliance controls) and
risk management processes are adequate for the nature and size
of the Group’s operations and business.
Interested Person Transaction | The Company has established
an internal policy for transactions with interested persons
and has set out the procedures for review and approval of the
Company’s interested person transactions (IPT).
During FY2011, the AC reviewed the following IPT:Name of Interested Person
Sale of one condominium unit
Ressington Company Limited
Aggregate Value of all IPT during FY2011
S$’000
$16,715
The above IPT was entered into at arm’s length and on
normal commercial terms. Recurring IPTs are disclosed in the
Financial Statements.
Internal Audit | The Company has out-sourced its internal
audit function to KPMG Services Pte Ltd (“KPMG”) in May
2011. Prior to the appointment of KPMG, the Company’s
internal audit department carried out a review of the Group’s
property and retail operations as well as audit on the system
of internal controls and reports to the AC. In addition, the
Group’s external auditors also carry out a review of the internal
controls in the course of their statutory audit. The internal
auditors (“IA”) carry out their work based on the standards
for the Professional Practice of Internal Auditing set by the
Institute of Internal Auditors.
A set of internal controls which sets out approval limits for
expenditure, investments and divestments and cheque signatory
arrangements is adopted by the Company. The IA assists the
AC in its functions by reporting their audit findings to the AC
and to the Management.
The scope of the internal auditors is to perform detailed work
to assist the Audit Committee and Board in the evaluation of
internal controls and risk management. The IA submits its plans
and recommendations to the AC for approval. The AC reviews
the adequacy of the internal audit function through a review of
activities carried out by the IA on a quarterly basis and is satisfied
that there are adequate internal controls in the Company.
WHISTLEBLOWING POLICY | As part of the effort
in promoting good corporate governance practices amongst
its employees, the Group has put in place a policy on whistleblowing to facilitate the reporting of activities or practices which
are in violation of the Group’s work rules. The policy, with clearly
defined processes, conforms to the guidelines set out in the
Code of Corporate Governance which encourages employees to
raise concerns, in confidence, about possible irregularities to the
employees’ supervisors, IA or AC Chairman.
The AC has the responsibility of overseeing this policy, which
is administered with the assistance of the IA. The process of
raising the concerns has been communicated to all employees.
The Group assures that the whistle-blower’s identity will be kept
confidential unless required by the court or other regulatory
authorities to disclose the identity. Anonymous reports will be
reviewed and investigated on the basis of their merits.
Upon receipt of report of any violation of the Group’s work
rules or any unethical or unlawful business conduct or
dealings, the concerns raised and information provided
will be investigated in a timely manner.
RISK MANAGEMENT | Risk management plays an
essential role in the Group’s business activities and forms a key
component in its planning process. The Board is responsible in
ascertaining the nature of its business risks and ensures that risks
in existing and new businesses are properly managed, business
plans and strategies are in line with the risks appetite of the
Group to achieve its corporate objectives. The Board has the
AC to assist in its risk management oversight via reporting on
matters relating to the risk management policies of the Group.
The Group has a risk management framework to provide
the Board with a Group-wide view of the risks involved in
property development, investment and management, hospitality
management, apparel retailing and food franchise operations.
As part of the framework, a risk register was set up to identify
the risks and risk management objectives and to monitor
the overall risks positions. The risk management framework
19
specifies the significant business risks to be identified, assessed,
evaluated, monitored and managed. The procedures and
processes within the framework allow the Group to regularly
review its significant strategic business risks, consider the
effectiveness of the Group’s system of internal controls to limit,
mitigate and monitor identified risks and the implementation
of further action plans to manage strategic business risks.
The key risks below are managed within the Group’s risk
management framework:Business / Strategic Risks | In the course of its activities, the
Group is exposed to business risks relating to business factors
such as customers’ demand, growth, macro-economic conditions,
competition and regulatory environment. It is the Group’s
primary consideration to evaluate such risks to achieve overall
corporate growth. These risks include macro and project specific
risks analysis, financial modeling and sensitivity analysis on key
investment assumptions. Each investment proposal is evaluated
according to the corporate strategies and investment objectives.
Potential joint venture business risks are evaluated to ensure
joint venture partnership objectives and visions are aligned.
Operational Risks | The Group is exposed to operational risks
relating to product and service quality assurance, cost control,
sales and marketing, leasing, financial control and regulatory
compliances. Identification and assessment of such risks are
essential for the management and mitigation of these risks. The
implementation and use of a system of internal controls, operating,
reporting and monitoring processes and procedures, supported by
information technology systems and human resource skills, are
important elements of the risk management framework.
Financial Risks | The Group’s operations and the use of
financial instruments exposed it to financial risks, including
currency risk, interest rate risk, credit risk, liquidity risk
and capital risk. The Group seeks to minimise any adverse
effects from the unpredictability of financial markets through
identifying and evaluating such exposures and establishing
policies to monitor and manage these financial risks. Further
details on financial risk management are stipulated in the notes
to financial statements under “Financial Risk Management”.
Human Resource Risks | The Group recognises human
resource is an imperative factor towards the sustainable
growth of the organisation. Efforts are taken to enhance the
recruitment processes, compensation packages, employees’
training and development. Core competencies are identified
through the employee selection and development processes,
performance assessment as well as career development and
training programs. The Group’s human resource strategy aims to
improve the overall work performance, optimise competencies,
enhance staff commitment and retention and develop an
effective succession plan. In addition, the Group supports worklife harmony programs as part of its efforts to help employees
achieve a balanced life between work and family.
Crisis Risks | The Group’s operating environment exposed it
to risks arising from potential threats of terrorism, epidemic
outbreaks and information systems failure. The Group has
put in place a disaster recovery plan to mitigate the risks
of interruption and catastrophic loss to its operations and
information database arising from such potential threats.
COMMUNICATION WITH SHAREHOLDERS | In
line with the disclosure obligations under the SGX-ST Listing
Rules and the Companies Act, the Company promptly informs
shareholders of all major developments that impact the Group.
Shareholders are updated on the business and affairs of the
Company through the quarterly release of the Company’s
results. Material and price-sensitive information is publicly
released by the Company via SGXNET on an immediate
basis where required by the Singapore Exchange Securities
Trading Limited (SGX-ST). The Company does not practise
selective disclosure. Timely and detailed disclosure of pertinent
corporate information is communicated via SGXNET and the
Company’s website.
All shareholders receive the summary financial report and/or
annual report of the Company and notice of the AGM. The
notice (also advertised in the press) and results are published
via SGXNET. The Company also conducts media and analysts
briefing for its full-year results.
Shareholders are given the opportunity to raise relevant questions
and communicate their views at general meetings. A shareholder
can vote in person or by way of proxy at general meetings.
DEALINGS IN SECURITIES | The Company has adopted
and implemented an internal guideline on share dealings in
the Company’s securities in compliance with Rule 1207(18)
(c) of the Listing Manual of the SGX-ST. All the officers of
the Company are prohibited from dealing in securities of the
Company while in possession of price-sensitive information.
They are also prohibited from dealing in securities of the
Company during the closed period, which is two weeks before
the date of announcement of results for each of the first three
quarters of the Company’s financial year and one month before
the date of announcement of the full-year financial results.
20
Calendar of Events
Reflections
April 2011
July 2010
December 2010
Helios Residences Topping
Out, Singapore
Largest outside the UK
and US, Topshop/Topman
flagship store opened at
Knightsbridge, Singapore
L’VIV Groundbreaking,
Singapore
January 2011
August 2010
Announcement of full year
results for year ended
30 June 2010
September 2010
Belle Vue Residences
launch, Singapore
Associate of the Arts Award
conferred by National Arts
Council, Singapore
October 2010
46th Annual General
Meeting, Singapore
Won over 130 Excellent
Service Awards (EXSA),
Singapore
November 2010
Rebranded Wing Tai
Malaysia Berhad, from DNP
Holdings Berhad, Malaysia
First Uniqlo flagship store
opened in Kuala Lumpur,
Malaysia
Helios Residences obtained
Temporary Occupation
Permit, Singapore
Won Hurun Recommended
Singapore Luxury Property
Developer Award,
Shanghai, China
Joint venture agreement
signed with Singbridge
International Singapore to
develop residential project in
Sino-Singapore Guangzhou
Knowledge City, China
BCBG’s
appointed
franchisee in
Singapore and
Malaysia
UK high-street
brand Wallis
introduced in
Malaysia, and
in Singapore
in June
Jalan Langgak Golf site
acquired, Malaysia
May 2011
March 2011
Foresque Residences launched
for sale, Singapore
Foresque Residences
Groundbreaking, Singapore
Wing Tai Retail participated
in Singapore’s and Malaysia’s
Red Cross donation drive,
setting up donation boxes
in retail stores, and pledging
100% of March retail profit
from Uniqlo Singapore and
Uniqlo Malaysia, 1% of sales
turnover in March in all
stores in Isetan towards Japan
Disaster 2011
Participated in Earth
Hour Singapore 2011 in
demonstrated support towards
sustainable environment
Won BCI Asia Top 10
Developers Award 2011,
Singapore
Belle Vue Residences won
11th SIA Architectural Design
Awards 2011 for ResidentialApartments/Condominium
Category Honourable
Mention, Singapore
June 2011
Awarded Iconic Service
Organisation by the GEMS
(Go the Extra Mile for
Service) Up Committee for
pioneering Customer-Centric
Initiatives, Singapore
Financial Reports
For the Year 2011
22 / Five-Year Financial Summary
23 / Directors’ Report
29 / Statement by Directors
30 / Independent Auditor’s Report
31 / Consolidated Income Statement
32 / Consolidated Statement
of Comprehensive Income
33 / Balance Sheets
34 / Consolidated Statement
of Changes in Equity
36 / Consolidated Statement of Cash Flows
38 / Notes to the Financial Statements
103 / Shareholding Statistics
22
Five-Year Financial Summary
Revenue
Property
Retail
Investment and others
Profit before income tax
Profit after income tax but
before non-controlling interests
Profit attributable to equity
holders of the Company
Shareholders’ equity
Total assets
Total liabilities and non-controlling interests
Earnings per share* (cents)
Net tangible assets per share ($)
Dividends per share (cents)
– Cash dividends
– Special rights dividends
2011
$’000
2010
$’000
2009
$’000
2008
$’000
2007
$’000
649,073
438,149
202,350
8,574
405,494
821,851
626,709
179,683
15,459
274,823
501,843
324,605
160,934
16,304
39,960
428,173
197,340
161,654
69,179
300,354
981,634
787,540
135,216
58,878
499,906
357,401
222,018
28,995
255,234
441,751
314,180
1,919,095
3,765,833
1,846,738
40.32
2.46
160,750
1,694,673
3,673,958
1,979,285
20.66
2.18
20,982
1,575,916
3,268,935
1,693,019
2.68
2.03
229,355
1,605,524
3,232,634
1,627,110
30.11
2.03
381,835
1,489,349
3,133,185
1,643,836
52.08
2.07
7.00
–
5.00
–
4.00
–
6.00
–
8.00
25.00
* The number of shares used for this purpose are as follows:
2011
2010
2009
2008
2007
’000
779,181
777,945
782,796
761,618
733,173
Directors’ Report
23
for the financial year ended  june  
The directors present their report to the members together with the audited financial statements of the Group for the financial year
ended 30 June 2011 and the balance sheet of the Company as at 30 June 2011.
DIRECTORS
The directors of the Company at the date of this report are:
Cheng Wai Keung
(Chairman and Managing Director)
Edmund Cheng Wai Wing
(Deputy Chairman and Deputy Managing Director)
Boey Tak Hap
Cheng Man Tak
Tan Sri Dato’ Mohamed Noordin bin Hassan
Lee Han Yang
Lee Kim Wah
Loh Soo Eng
Phua Bah Lee
Paul Tong Hon To
Tan Hwee Bin
Chng Chee Beow
ARRANGEMENTS TO ENABLE DIRECTORS TO ACQUIRE SHARES AND DEBENTURES
Except as disclosed in the “Share Options” and “Share Plans” sections of this report, neither at the end of nor at any time during the
financial year was the Company a party to any arrangement, whose object was to enable the directors of the Company to acquire
benefits through the acquisition of shares in, or debentures of, the Company or any other body corporate.
24
Directors’ Report
for the financial year ended  june  
DIRECTORS’ INTERESTS IN SHARES OR DEBENTURES
(a) The interests of the directors holding office at the end of the financial year in the shares, share options and share plans of the
Company and related corporations according to the register of the directors’ shareholdings were as follows:
Holdings registered in
the name of director
Holdings in which a director
is deemed to have an interest
As at
01.07.2010
As at
30.06.2011
As at
01.07.2010
As at
30.06.2011
Ordinary Shares
Cheng Wai Keung
Edmund Cheng Wai Wing
Lee Han Yang
Lee Kim Wah
Loh Soo Eng
Phua Bah Lee
Tan Hwee Bin
Chng Chee Beow
–
–
330,000
937,600
412,800
275,000
90,000
318,400
–
–
330,000
937,600
412,800
275,000
219,900
412,900
318,156,564
310,601,664
–
–
–
–
–
15,800
325,856,564
310,601,664
–
–
–
–
–
15,800
Share Options
Lee Kim Wah
Tan Hwee Bin
Chng Chee Beow
409,200
390,500
234,300
409,200
390,500
234,300
–
–
–
–
–
–
Restricted Share Plan
Tan Hwee Bin
Chng Chee Beow
343,000
249,600
444,100
311,100
–
–
–
–
42,000
46,000
93,000
100,000
–
–
–
–
40,000
–
–
–
800,000
800,000
800,000
800,000
–
–
–
–
Name of directors
Performance Share Plan*
Tan Hwee Bin
Chng Chee Beow
RELATED CORPORATION
Wing Tai Malaysia Berhad
Ordinary Shares
Loh Soo Eng
Share Options
Cheng Wai Keung
Edmund Cheng Wai Wing
* Shares awarded are contingent upon achievement of threshold targets.
(b)
By virtue of Section 7 of the Companies Act (Cap. 50), Cheng Wai Keung and Edmund Cheng Wai Wing, who by virtue of
their interest of not less than 20% in the issued capital of the Company, are also deemed to have an interest in the shares of the
various subsidiary companies held by the Company.
(c)
There is no change in any of the above mentioned interest between 30 June 2011 and 21 July 2011.
25
Directors’ Report
for the financial year ended  june  
DIRECTORS’ CONTRACTUAL BENEFITS
Since the end of the preceding financial year, no director has received or become entitled to receive a benefit by reason of a contract
made by the Company or a related corporation with the director or with a firm of which he is a member or with a company in which
he has a substantial financial interest, except as disclosed in Note 33 to the financial statements.
SHARE OPTIONS
(a) The Wing Tai Holdings Limited (2001) Share Option Scheme (the “Scheme”)
The Scheme was approved and adopted by the members of the Company at an Extraordinary General Meeting (“EGM”)
held on 31 August 2001. The Scheme was terminated by the members of the Company at an EGM held on 30 October 2008
(without prejudice to the rights of holders of options thereunder in respect of options which have been granted).
The Scheme is administered by a committee comprising two directors, namely Cheng Wai Keung and Tan Hwee Bin.
No option was granted under the Scheme during the financial year. No controlling shareholder of the Company or his associate
participated in the Scheme.
The aggregate number of options granted since the commencement of the Scheme to the end of the financial year is as follows:
Aggregate options since commencement
of the Scheme to 30.06.2011
Aggregate number
of outstanding
Number of
options as at
options forfeited
30.06.2011
Number of
options granted
Number of
options exercised
877,200
645,500
616,300
468,000
255,000
382,000
–
–
–
409,200
390,500
234,300
Group Executives
2,139,000
11,070,300
1,105,000
5,025,500
–
2,910,800
1,034,000
3,134,000
Total
13,209,300
6,130,500
2,910,800
4,168,000
Name of participants
Directors of the Company
Lee Kim Wah
Tan Hwee Bin
Chng Chee Beow
Other than Lee Kim Wah, none of the participants of the Scheme received 5% or more of the total number of options granted
under the Scheme.
Details of the movement in the options granted under the Scheme on the unissued ordinary shares of the Company
during the year were as follows:
As at
01.07.2010
Number
of options
exercised
Number
of options
forfeited
As at
30.06.2011
02.11.2001
19.11.2004
30.09.2005
05.09.2006
06.09.2007
22,000
294,800
668,900
1,269,300
2,024,000
–
7,700
23,100
17,500
–
–
–
6,600
12,100
44,000
22,000
287,100
639,200
1,239,700
1,980,000
Total
4,279,000
48,300
62,700
4,168,000
Date of grant
Exercise
price ($)
0.616
0.849
1.300
1.645
3.136
Expiry date
01.11.2011
18.11.2014
29.09.2015
04.09.2016
05.09.2017
26
Directors’ Report
for the financial year ended  june  
SHARE OPTIONS (continued)
(b) The Wing Tai Malaysia Berhad (“WTM”) Employees’ Share Option Scheme (the “ESOS”)
WTM, a subsidiary company of the Group, implemented the ESOS approved by the shareholders of WTM at an EGM held
on 11 May 2005.
The directors (including non-executive directors) and employees of WTM who as at the date of offer are confirmed with at
least one year of continuous service in WTM and its subsidiary companies are eligible to participate in the scheme. The ESOS
will allow granting of options to all eligible directors and employees by giving them the right to subscribe for new shares of
RM1.00 each, subject to the terms and conditions of the by-laws of the ESOS. The details of the ESOS have been disclosed in
the Directors’ Report of WTM.
Details of the movement in the options granted under the ESOS on the unissued ordinary shares of WTM during the year
were as follows:
As at
01.07.2010
Number
of options
exercised
Number
of options
forfeited
As at
30.06.2011
01.12.2005
31.01.2007
19.05.2010
2,055,400
895,800
3,021,000
1,026,000
609,000
993,700
–
–
74,200
1,029,400
286,800
1,953,100
Total
5,972,200
2,628,700
74,200
3,269,300
Date of grant
Exercise
price (RM)
1.00
1.00
1.20
Expiry date
15.05.2015
15.05.2015
15.05.2015
Except for the above, no other options were granted by the Company or any subsidiary companies during the financial year and there
were no unissued shares under options at the end of the financial year.
SHARE PLANS
The Wing Tai Performance Share Plan (“Wing Tai PSP”) and the Wing Tai Restricted Share Plan (“Wing Tai RSP”) (collectively
referred to as the “Share Plans”) were adopted by the members of the Company at an EGM held on 30 October 2008.
The Share Plans are administered by a committee (the “Committee”) comprising two directors, namely Cheng Wai Keung and
Tan Hwee Bin.
(a)
Wing Tai PSP
One of the primary objectives of the Wing Tai PSP is to increase the Company’s flexibility and effectiveness in its continuous
efforts to reward, retain and motivate key management staff. The Wing Tai PSP is primarily targeted at executives in key
positions who are able to drive the growth of the Company through innovation, creativity and superior performance.
Full-time executives (including executive directors) of the Company, its subsidiary companies or associated companies who
hold such rank as may be designated by the Committee from time to time are eligible to participate in the Wing Tai PSP.
Under the Wing Tai PSP, performance conditions are set over a three-year performance period. A specified number of shares
will be released by the Committee to the participants at the end of the performance period, provided the threshold targets
are achieved.
27
Directors’ Report
for the financial year ended  june  
SHARE PLANS (continued)
(a) Wing Tai PSP (continued)
During the financial year, awards were granted by the Company pursuant to the Wing Tai PSP in respect of 175,000 shares,
of which 51,000 and 54,000 shares were granted to two executive directors, namely Tan Hwee Bin and Chng Chee Beow
respectively and 70,000 shares were granted to 4 executives of the Group.
Details of the movement in the awards of the Company during the year were as follows:
As at
01.07.2010
Number of
shares granted
As at
30.06.2011
03.09.2009
01.09.2010
146,000
–
–
175,000
146,000
175,000
Total
146,000
175,000
321,000
Date of grant
(b)
Wing Tai RSP
The objective of the Wing Tai RSP is to serve as an additional motivational tool to recruit and retain employees.
Full-time executives (including executive directors) of the Company, its subsidiary companies or associated companies who
hold such rank as may be designated by the Committee from time to time and non-executive directors are eligible to participate
in the Wing Tai RSP.
Under the Wing Tai RSP, performance conditions are set over a one-year performance period. A specified number of shares
will be awarded to eligible participants at the end of the performance period depending on the extent of achievement of the
performance conditions established. The shares have a vesting schedule of three years. The participant will receive fully paid
shares, without any cash consideration payable by the participant.
During the financial year, awards were granted by the Company pursuant to the Wing Tai RSP in respect of 2,125,000 shares,
of which 231,000 and 156,000 shares were granted to two executive directors, namely Tan Hwee Bin and Chng Chee Beow
respectively and 1,738,000 shares were granted to 42 executives of the Group.
Details of the movement in the awards of the Company during the year were as follows:
Date of grant
As at
01.07.2010
Number of
Number of
Number of
shares granted shares released shares forfeited
As at
30.06.2011
18.05.2009
03.09.2009
01.09.2010
1,474,900
1,257,000
–
–
–
2,125,000
632,100
377,100
–
–
9,100
22,000
842,800
870,800
2,103,000
Total
2,731,900
2,125,000
1,009,200
31,100
3,816,600
28
Directors’ Report
for the financial year ended  june  
AUDIT COMMITTEE
The Audit Committee consists of four non-executive independent directors. The members of the Committee at the date of this
report are:
Paul Tong Hon To
Boey Tak Hap
Lee Han Yang
Phua Bah Lee
(Chairman)
The Audit Committee reviewed the Group’s accounting policies and system of internal controls on behalf of the Board of Directors
and performed the functions specified in Section 201B(5) of the Companies Act (Cap. 50). In performing its functions, the
Committee reviewed:
(a)
the audit plans of the Company’s internal and external auditors and their evaluation of the system of internal controls arising
from their audit examinations;
(b)
the scope and results of internal audit procedures; and
(c)
the quarterly results and the full year consolidated financial statements of the Group for the financial year ended 30 June 2011
before their submission to the Board of Directors for approval and the auditor’s report on these financial statements.
The Audit Committee has nominated PricewaterhouseCoopers LLP for re-appointment as auditor of the Company at the
forthcoming Annual General Meeting.
INDEPENDENT AUDITOR
The independent auditor, PricewaterhouseCoopers LLP, has expressed its willingness to accept re-appointment.
On behalf of the directors
CHENG WAI KEUNG
Director
20 September 2011
EDMUND CHENG WAI WING
Director
Statement by Directors
29
for the financial year ended  june  
In the opinion of the directors,
(a)
the balance sheet of the Company and the consolidated financial statements of the Group as set out on pages 31 to 102 are
drawn up so as to give a true and fair view of the state of affairs of the Company and of the Group as at 30 June 2011 and of
the results of the business, changes in equity and cash flows of the Group for the financial year then ended; and
(b)
at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they fall due.
On behalf of the directors
CHENG WAI KEUNG
Director
20 September 2011
EDMUND CHENG WAI WING
Director
30
Independent Auditor’s Report
To the Members of Wing Tai Holdings Limited
for the financial year ended  june  
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Wing Tai Holdings Limited (the “Company”) and its subsidiary
companies (the “Group”) set out on pages 31 to 102, which comprise the consolidated balance sheet of the Group and the balance
sheet of the Company as at 30 June 2011, the consolidated income statement, the consolidated statement of comprehensive income,
the consolidated statement of changes in equity and the consolidated statement of cash flows of the Group for the financial year then
ended, and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions
of the Singapore Companies Act (the “Act”) and Singapore Financial Reporting Standards, and for devising and maintaining a
system of internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from
unauthorised use or disposition that transactions are properly authorised and that they are recorded as necessary to permit the
preparation of true and fair profit and loss accounts and balance sheets and to maintain accountability of assets.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance
with Singapore Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant
to the entity’s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal controls. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements of the Group and the balance sheet of the Company are properly drawn up in
accordance with the provisions of the Act and Singapore Financial Reporting Standards so as to give a true and fair view of the state
of affairs of the Group and of the Company as at 30 June 2011, and the results, changes in equity and cash flows of the Group for
the financial year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
In our opinion, the accounting and other records required by the Act to be kept by the Company and by those subsidiary companies
incorporated in Singapore of which we are the auditors, have been properly kept in accordance with the provisions of the Act.
PRICEWATERHOUSECOOPERS LLP
Public Accountants and Certified Public Accountants
Singapore
20 September 2011
31
Consolidated Income Statement
for the financial year ended  june  
Group
Note
Revenue
Cost of sales
3
2011
$’000
2010
$’000
649,073
(274,867)
821,851
(430,464)
374,206
391,387
80,837
20,417
Expenses
– Distribution
– Administrative and other
(89,507)
(84,395)
(81,875)
(75,481)
Operating profit
281,141
254,448
(39,868)
(31,295)
Share of profits of associated and joint venture companies
164,221
51,670
Profit before income tax
405,494
274,823
(48,093)
(52,805)
Total profit
357,401
222,018
Attributable to:
Equity holders of the Company
Non-controlling interests
314,180
43,221
160,750
61,268
357,401
222,018
Gross profit
Other gains – net
Finance costs
Income tax expense
4
7
8(a)
Earnings per share attributable to equity holders of the Company (cents)
Basic
9(a)
40.32
20.66
Diluted
9(b)
40.03
20.57
32
Consolidated Statement of Comprehensive Income
for the financial year ended  june  
Group
Note
Total profit
Other comprehensive (expense)/income:
Cash flow hedges
Currency translation differences
Revaluation gains on property, plant and equipment
Share of other comprehensive (expense)/income
of associated and joint venture companies
Other comprehensive expense, net of tax
8(a)
2011
$’000
2010
$’000
357,401
222,018
(5,403)
(69,085)
8,446
(3,674)
(13,736)
2,639
(1,396)
6,108
(67,438)
(8,663)
Total comprehensive income
289,963
213,355
Attributable to:
Equity holders of the Company
Non-controlling interests
254,763
35,200
146,550
66,805
289,963
213,355
33
Balance Sheets
as at  june  
Group
Company
2010
$’000
2011
$’000
504,235
212,651
18,784
1,275,151
5,758
48,644
594,054
42,821
16,466
1,423,002
2,967
38,089
188,991
277,284
–
–
–
2,615
331,807
271,072
–
–
–
2,887
2,065,223
2,117,399
468,890
605,766
7,170
197,790
554,027
189,769
–
560,210
191,644
7,170
222,689
514,662
149,457
–
486,028
176,553
3,189
618,554
–
–
252,392
–
6,951
3,189
496,070
–
–
252,392
82,000
14,937
1,700,610
3,765,833
1,556,559
3,673,958
881,086
1,349,976
848,588
1,454,354
222,338
81,808
167,126
152,061
45,787
110,655
162,128
3,506
–
161,932
5,214
100,000
471,272
308,503
165,634
267,146
Total liabilities
34,116
1,012,091
85,665
48,819
1,180,691
1,651,963
28,475
1,225,017
97,241
123,618
1,474,351
1,782,854
6,286
245,000
–
9,655
260,941
426,575
6,607
265,000
2,342
9,844
283,793
550,939
NET ASSETS
2,113,870
1,891,104
923,401
903,415
838,250
(12,750)
97,901
838,200
(8,713)
73,928
Note
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Development properties
Tax recoverable
Other current assets
Non-current assets
Available-for-sale financial assets
Trade and other receivables
Investment in an associated company
Investments in joint venture companies
Investments in subsidiary companies
Investment properties
Property, plant and equipment
10
12
13
14
15
16
17
18
19
20
21
22
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Current income tax liabilities
Borrowings
Non-current liabilities
Derivative financial instruments
Borrowings
Deferred income tax liabilities
Other non-current liabilities
EQUITY
Capital and reserves attributable to
equity holders of the Company
Share capital
Other reserves
Retained earnings
23
24
11
24
8(b)
26
27
28
29
2011
$’000
838,250
(65,412)
1,146,257
838,200
(8,800)
865,273
2010
$’000
Non-controlling interests
1,919,095
194,775
1,694,673
196,431
923,401
–
903,415
–
TOTAL EQUITY
2,113,870
1,891,104
923,401
903,415
34
Consolidated Statement of Changes in Equity
for the financial year ended  june  
Note
2011
Beginning of financial year
Total comprehensive
(expense)/income
Realisation of reserves
Cost of share-based payment
28(a)
Issue of shares on exercise of
share options
27
Reissuance of treasury shares
Ordinary and special dividends paid
25
Dividends paid by subsidiary
companies to non-controlling interests
Issue of shares by a subsidiary company
to non-controlling interests
Acquisition of additional interest
in a subsidiary company
Liquidation of subsidiary companies
Liquidation of joint venture companies
End of financial year
Attributable to equity holders of the Company
NonShare
Other
Retained
controlling
capital
reserves
earnings
Total
interests
$’000
$’000
$’000
$’000
$’000
Total
equity
$’000
838,200
(8,800)
865,273
1,694,673
196,431
1,891,104
–
–
–
(59,417)
(264)
3,254
314,180
264
–
254,763
–
3,254
35,200
–
159
289,963
–
3,413
–
–
(38,957)
50
15
(38,957)
50
–
–
–
15
–
–
–
–
–
–
(874)
–
–
–
–
335
(535)
6,371
–
–
838,250
(65,412)
1,146,257
–
–
–
–
50
15
(38,957)
(5,139)
(5,139)
(874)
2,065
1,191
6,371
335
(535)
(18,081)
(15,261)
(599)
(11,710)
(14,926)
(1,134)
1,919,095
194,775
2,113,870
Consolidated Statement of Changes in Equity
for the financial year ended  june  
Note
2010
Beginning of financial year
Total comprehensive
(expense)/income
Realisation of reserves
Cost of share-based payment
28(a)
Issue of shares on exercise of
share options
27
Ordinary and special dividends paid
25
Dividends paid by subsidiary companies
to non-controlling interests
Issue of shares by a subsidiary company
to non-controlling interests
Acquisition of additional interest
in a subsidiary company
End of financial year
Attributable to equity holders of the Company
NonShare
Other
Retained
controlling
capital
reserves
earnings
Total
interests
$’000
$’000
$’000
$’000
$’000
837,690
–
–
–
Total
equity
$’000
2,883
735,343
1,575,916
139,758
1,715,674
(14,200)
(290)
2,807
160,750
290
–
146,550
–
2,807
66,805
–
12
213,355
–
2,819
–
(31,110)
510
(31,110)
510
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
865,273
1,694,673
838,200
35
(8,800)
An analysis of the movements in each category within “Other reserves” is presented in Note 28.
–
–
(9,834)
846
(1,156)
196,431
510
(31,110)
(9,834)
846
(1,156)
1,891,104
36
Consolidated Statement of Cash Flows
for the financial year ended  june  
Group
2011
$’000
2010
$’000
357,401
222,018
48,093
11,100
389
(59)
(81)
(74,616)
238
14,840
1,824
(957)
(1,062)
335
(10,201)
(795)
(7,915)
39,868
(164,221)
3,413
5,591
52,805
12,149
411
(188)
(73)
(5,140)
68
–
135
(949)
–
–
–
–
(9,938)
31,295
(51,670)
2,819
(6,218)
223,185
247,524
11,958
128,225
(2,589)
(173,833)
21,107
(18,538)
(162,420)
450
17,700
43,334
Cash generated from operations
208,053
128,050
Income tax paid
(27,927)
Net cash generated from operating activities
180,126
Note
Cash flows from operating activities
Total profit
Adjustments for:
Income tax expense
Depreciation of property, plant and equipment
Write-off of property, plant and equipment
Write-back of impairment on property, plant and equipment
Dividend income
Fair value gains on investment properties
Fair value losses on derivative financial instruments
Allowance for foreseeable losses on development properties
Dilution loss on interest in an associated company
Gain on disposal of property, plant and equipment
Gain on liquidation of joint venture companies
Loss on liquidation of subsidiary companies
Gain on capital reduction of joint venture companies
Reversal of tax indemnity
Interest income
Interest expense
Share of profits of associated and joint venture companies
Share-based payment
Translation differences
Operating cash flow before working capital changes
Changes in operating assets and liabilities:
Balances with associated and joint venture companies
Development properties
Inventories
Trade and other receivables and other current assets
Trade and other payables
(8,580)
119,470
37
Consolidated Statement of Cash Flows
for the financial year ended  june  
Group
Note
Cash flows from investing activities
Acquisition of additional interest in a subsidiary company
Subscription of rights issue of an associated company
Acquisition of interest in joint venture companies
Additional expenditure on investment property
Additional expenditure on property, plant and equipment
Purchases of property, plant and equipment
Proceeds from disposal of property, plant and equipment
Distribution to non-controlling interests upon liquidation
of a subsidiary company
Proceeds from liquidation of joint venture companies
Proceeds from capital reduction of joint venture companies
Repayment of loans by joint venture companies
Dividends received
Interest received
Net cash generated from investing activities
2011
$’000
2010
$’000
(10,027)
–
(9,963)
(4,438)
(6,920)
(13,967)
1,997
(819)
(35,187)
–
–
–
(11,943)
3,452
(261)
2,129
12,201
17,753
20,706
2,701
–
67
–
18,394
53,065
2,464
11,911
29,493
50
510
Cash flows from financing activities
Proceeds from issue of ordinary shares
Proceeds from issue of ordinary shares by a subsidiary company
to non-controlling interests
Reissuance of treasury shares
(Repayment)/advancement of the loans from non-controlling interests
Proceeds from borrowings
Repayment of borrowings
Ordinary and special dividends paid
Dividends paid to non-controlling interests
Interest paid
1,191
15
(44,156)
213,907
(346,199)
(38,957)
(5,139)
(52,189)
478
–
2,687
286,438
(140,655)
(31,110)
(9,834)
(51,679)
Net cash (used in)/generated from financing activities
(271,477)
56,835
(79,440)
594,054
(10,379)
205,798
389,574
(1,318)
504,235
594,054
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of financial year
Effects of currency translation on cash and cash equivalents
Cash and cash equivalents at end of financial year
10
38
Notes to the Financial Statements
for the financial year ended  june  
These notes form an integral part of and should be read in conjunction with the accompanying financial statements.
1.
GENERAL INFORMATION
Wing Tai Holdings Limited (the “Company”) is incorporated and domiciled in Singapore and is listed on the Singapore
Exchange Securities Trading Limited. The address of its registered office is 3 Killiney Road, #10-01 Winsland House I,
Singapore 239519.
The principal activity of the Company is that of an investment holding company. The principal activities of the Company’s
subsidiary companies are shown in Note 35.
2.
2.1
SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PREPARATION
These financial statements have been prepared in accordance with Singapore Financial Reporting Standards (“FRS”).
The financial statements have been prepared under the historical cost convention, except as disclosed in the accounting
policies below.
The preparation of financial statements in conformity with FRS requires management to exercise its judgement in the process
of applying the Group’s accounting policies. It also requires the use of accounting estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenues and expenses during the financial year. Although these estimates are based
on management’s best knowledge of current events and actions, actual results may ultimately differ from those estimates. The
areas involving a higher degree of judgement or complexity are disclosed in Notes 2.7, 2.8 and 8.
Amendment to published standards effective in 2011
On 1 July 2010, the Group adopted the amended FRS that is mandatory for application from that date. Changes to the Group’s
accounting policies have been made as required, in accordance with the transitional provisions in the respective FRS.
The amended FRS that is relevant to the Group is as follows:
Amendment to FRS 7
Statement of Cash Flows
The adoption of this amended FRS has not resulted in any substantial changes to the Group’s and Company’s accounting
policies and had no material effect on the amounts reported for the current or prior financial years.
2.2
REVENUE RECOGNITION
Revenue for the Group comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary
course of the Group’s activities. Revenue is presented, net of goods and services tax, rebates and discounts, and after eliminating
sales within the Group.
The Group recognises revenue when the amount of revenue and related cost can be reliably measured, it is probable that future
economic benefits will flow to the entity and when the specific criteria for each of the Group’s activities are met as follows:
(a) Sale of goods
Revenue from the sale of goods is recognised when a Group entity has delivered the products to the customer, the customer
has accepted the products and collectability of the related receivable is reasonably assured, except for income from the sale
of development properties, which is recognised using the percentage of completion method as disclosed in Note 2.8.
Notes to the Financial Statements
for the financial year ended  june  
2.
2.2
39
SIGNIFICANT ACCOUNTING POLICIES (continued)
REVENUE RECOGNITION (continued)
(b) Rental income
Rental income from operating leases (net of any incentives given to the lessees) is recognised on a straight-line basis over
the lease term.
(c) Management fee
Management fee comprises charges for the management and maintenance of properties and finance and administration
fees. Revenue from management fee is recognised when management services are rendered.
(d) Dividend income
Dividend income is recognised when the right to receive payment is established.
(e) Interest income
Interest income is recognised using the effective interest method.
2.3
GROUP ACCOUNTING
(a) Subsidiary companies
(i) Consolidation
Subsidiary companies are entities over which the Group has power to govern the financial and operating policies,
generally accompanied by a shareholding of more than one half of the voting rights. The existence and effect of
potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group
controls another entity. Subsidiary companies are consolidated from the date on which control is transferred to the
Group. They are de-consolidated from the date on which control ceases.
In preparing the consolidated financial statements, transactions, balances and unrealised gains on transactions between
group entities are eliminated. Unrealised losses are also eliminated but are considered an impairment indicator of
the asset transferred. Accounting policies of subsidiary companies have been changed where necessary to ensure
consistency with the accounting policies adopted by the Group.
Non-controlling interests are that part of the net results of operations and of net assets of a subsidiary company
attributable to the interests which are not owned directly or indirectly by the equity holders of the Company. They are
shown separately in the consolidated income statement, consolidated statement of comprehensive income, consolidated
balance sheet and consolidated statement of changes in equity. Total comprehensive income is attributed to the
non-controlling interests based on their respective interests in a subsidiary company, even if this results in the noncontrolling interests having a deficit balance.
(ii) Acquisition of businesses
The acquisition method of accounting is used to account for business combinations by the Group.
The consideration transferred for the acquisition of a subsidiary company comprises the fair value of the assets
transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred also
includes the fair value of any contingent consideration arrangement and the fair value of any pre-existing equity
interest in the subsidiary company.
40
2.
2.3
Notes to the Financial Statements
for the financial year ended  june  
SIGNIFICANT ACCOUNTING POLICIES (continued)
GROUP ACCOUNTING (continued)
(a) Subsidiary companies (continued)
(ii) Acquisition of businesses (continued)
Acquisition-related costs are expensed as incurred.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited
exceptions, measured initially at their fair values at the acquisition date.
On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree at the date
of acquisition either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s identifiable
net assets.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the
acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets
acquired is recorded as goodwill. Please refer to Note 2.4 for the accounting policy on goodwill on acquisitions.
(iii) Disposals of subsidiary companies or businesses
When a change in the Company’s ownership interest in a subsidiary company results in a loss of control over the
subsidiary company, the assets and liabilities of the subsidiary company including any goodwill are derecognised.
Amounts recognised in other comprehensive income in respect of that entity are also reclassified to the income
statement or transferred directly to retained earnings if required by a specific FRS.
Any retained interest in the entity is remeasured at fair value. The difference between the carrying amount of the
retained investment at the date when control is lost and its fair value is recognised in the income statement.
Please refer to Note 2.5 for the accounting policy on investments in subsidiary companies in the separate financial statements
of the Company.
(b) Transactions with non-controlling interests
Changes in the Company’s ownership interest in a subsidiary company that do not result in a loss of control over the
subsidiary company are accounted for as transactions with equity owners of the Group. Any difference between the change
in the carrying amounts of the non-controlling interest and the fair value of the consideration paid or received is recognised
in a separate reserve within equity attributable to the equity holders of the Company.
(c) Associated and joint venture companies
Associated companies are entities over which the Group has significant influence, but not control, generally accompanied
by a shareholding of between and including 20% and 50% of the voting rights. Joint venture companies are entities over
which the Group has contractual arrangements to jointly share the control over the economic activity of the entities with
one or more parties.
Investments in associated and joint venture companies are accounted for in the consolidated financial statements using the
equity method of accounting less impairment losses, if any.
Notes to the Financial Statements
for the financial year ended  june  
2.
2.3
41
SIGNIFICANT ACCOUNTING POLICIES (continued)
GROUP ACCOUNTING (continued)
(c) Associated and joint venture companies (continued)
Investments in associated and joint venture companies are initially recognised at cost. The cost of an acquisition is measured
at the fair value of the assets given, equity instruments issued or liabilities incurred or assumed at the date of exchange, plus
costs directly attributable to the acquisition. Goodwill on associated and joint venture companies represents the excess of the
cost of acquisition of the associated and joint venture companies over the Group’s share of the fair value of the identifiable
net assets of the associated and joint venture companies and is included in the carrying amount of the investments. Please
refer to Note 2.4 for the accounting policy on goodwill on acquisitions.
In applying the equity method of accounting, the Group’s share of its associated and joint venture companies’ postacquisition profits or losses are recognised in the income statement and its share of post-acquisition other comprehensive
income is recognised in other comprehensive income. These post-acquisition movements and distributions received from
the associated and joint venture companies are adjusted against the carrying amount of the investments. When the Group’s
share of losses in an associated or joint venture company equals or exceeds its interest in the associated or joint venture
company, including any other unsecured non-current receivables, the Group does not recognise further losses, unless it has
obligations or has made payments on behalf of the associated or joint venture company.
Unrealised gains on transactions between the Group and its associated and joint venture companies are eliminated to the
extent of the Group’s interest in the associated and joint venture companies. Unrealised losses are also eliminated unless
the transaction provides evidence of an impairment of the asset transferred. The accounting policies of associated and joint
venture companies have been changed where necessary to ensure consistency with the accounting policies adopted by
the Group.
Gains and losses arising from partial disposals or dilutions in investments in associated and joint venture companies are
recognised in the income statement.
Investments in associated and joint venture companies are derecognised when the Group loses significant influence. Any
retained interest in the entity is remeasured at its fair value. The difference between the carrying amount of the retained
investment at the date when significant influence is lost and its fair value is recognised in the income statement.
Please refer to Note 2.5 for the accounting policy on investments in associated and joint venture companies in the separate
financial statements of the Company.
2.4
GOODWILL ON ACQUISITIONS
Goodwill on acquisitions of subsidiary companies on or after 1 July 2009 represents the excess of the consideration transferred,
the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in
the acquiree over the fair value of the identifiable net assets acquired.
Goodwill on acquisitions of subsidiary companies prior to 1 July 2009 and on acquisitions of associated and joint venture
companies represents the excess of the cost of the acquisitions over the fair value of the Group’s share of the identifiable net
assets acquired.
Goodwill on subsidiary companies is recognised separately as intangible assets and carried at cost less accumulated impairment
losses. Goodwill on associated and joint venture companies is included in the carrying amount of the investments.
42
Notes to the Financial Statements
for the financial year ended  june  
2.
2.4
SIGNIFICANT ACCOUNTING POLICIES (continued)
GOODWILL ON ACQUISITIONS (continued)
Gains and losses on the disposal of subsidiary, associated and joint venture companies include the carrying amount of goodwill
relating to the entity sold, except for goodwill arising from acquisitions prior to 1 July 2001. Such goodwill was adjusted against
retained earnings in the year of acquisition and is not recognised in the income statement on disposal.
2.5
INVESTMENTS IN SUBSIDIARY, ASSOCIATED AND JOINT VENTURE COMPANIES
Investments in subsidiary, associated and joint venture companies are carried at cost less accumulated impairment losses in
the Company’s balance sheet. On disposal of investments in subsidiary, associated and joint venture companies, the difference
between disposal proceeds and the carrying amounts of the investments are recognised in the income statement.
2.6
PROPERTY, PLANT AND EQUIPMENT
(a) Measurement
(i) Land and buildings
Land and buildings are initially recognised at cost.
Freehold and 999-year leasehold land are subsequently carried at the revalued amounts less accumulated impairment
losses. Buildings and leasehold land are subsequently carried at the revalued amounts less accumulated depreciation
and accumulated impairment losses.
Land and buildings are revalued by independent professional valuers once every three years and whenever their carrying
amounts are likely to differ materially from their revalued amounts. When an asset is revalued, any accumulated
depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset. The net amount is
then restated to the revalued amount of the asset.
Increases in carrying amounts arising from revaluation, including currency translation differences, are recognised in
other comprehensive income, unless they offset previous decreases in the carrying amounts of the same asset, in which
case, they are recognised in the income statement. Decreases in carrying amounts that offset previous increases of the
same asset are charged against other comprehensive income. All other decreases in carrying amounts are recognised in
the income statement.
(ii) Other property, plant and equipment
All other items of property, plant and equipment are initially recognised at cost and subsequently carried at cost less
accumulated depreciation and accumulated impairment losses.
(iii) Components of costs
The cost of an item of property, plant and equipment initially recognised includes its purchase price and any cost that
is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating
in the manner intended by management, including borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset. The projected cost of dismantlement, removal or restoration is also
recognised as part of the cost of property, plant and equipment if the obligation for the dismantlement, removal or
restoration is incurred as a consequence of either acquiring the asset or using the asset for purposes other than to
produce inventories.
Notes to the Financial Statements
for the financial year ended  june  
2.
2.6
43
SIGNIFICANT ACCOUNTING POLICIES (continued)
PROPERTY, PLANT AND EQUIPMENT (continued)
(b) Depreciation
Freehold and 999-year leasehold land are not depreciated. Depreciation on other items of property, plant and equipment is
calculated using the straight-line method to allocate their depreciable amounts over their estimated useful lives. The annual
depreciation rates are as follows:
Buildings and leasehold land
Motor vehicles
Office equipment
Furniture and fittings
1 – 3% or over the remaining lease period, whichever is shorter
20%
10 – 33%
10% or over the remaining lease period, whichever is shorter
The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and
adjusted as appropriate, at each balance sheet date. The effects of any revision are recognised in the income statement when
the changes arise.
(c) Subsequent expenditure
Subsequent expenditure relating to property, plant and equipment that has already been recognised is added to the carrying
amount of the asset only when it is probable that future economic benefits associated with the item will flow to the Group
and the cost of the item can be measured reliably. All other repair and maintenance expenses are recognised in the income
statement when incurred.
(d) Disposal
On disposal of an item of property, plant and equipment, the difference between the disposal proceeds and its carrying
amount is recognised in the income statement. Any amount in the asset revaluation reserve relating to that asset is transferred
to retained earnings directly.
2.7
INVESTMENT PROPERTIES
Investment properties are held for long-term rental yields and/or for capital appreciation and are not occupied substantially by
the Group.
Investment properties are initially recognised at cost and subsequently carried at fair value, determined annually by independent
professional valuers. Significant assumptions are required to determine the fair value. Changes in fair values are recognised in
the income statement.
If an investment property becomes substantially owner-occupied, it is reclassified as property, plant and equipment and its fair
value at the date of reclassification becomes its cost for accounting purposes.
Investment properties are subject to renovations or improvements at regular intervals. The cost of major renovations and
improvements is capitalised. The cost of maintenance, repairs and minor improvements is charged to the income statement
when incurred.
On disposal of an investment property, the difference between the disposal proceeds and the carrying amount is recognised in
the income statement.
44
2.
2.8
Notes to the Financial Statements
for the financial year ended  june  
SIGNIFICANT ACCOUNTING POLICIES (continued)
DEVELOPMENT PROPERTIES
(a) Properties under development
Properties under development are stated at cost plus attributable profits, less foreseeable losses and progress payments
received and receivable. An allowance is made where the estimated net realisable value of the properties has fallen below
their carrying value.
Cost includes cost of land and other direct and related expenditure, including interest on borrowings incurred in developing
the properties. Interest and other related expenditure are capitalised as and when the activities that are necessary to get the
asset ready for its intended development are in progress.
Revenue and cost on the sale of properties under development are recognised in the income statement using the percentageof-completion method based on the stage of completion as certified by the architects or quantity surveyors for the individual
units sold. When it is probable that the total development costs will exceed the total revenue, the expected loss is recognised
in the income statement immediately.
Significant assumptions are required to estimate the total contract costs. In making this estimate, management has relied
on past experience and the work of specialists.
(b) Properties held for sale
Properties held for sale are stated at the lower of cost and net realisable value. Net realisable value is the estimated selling
price in the ordinary course of business less selling expenses.
2.9
IMPAIRMENT OF NONFINANCIAL ASSETS
(a) Goodwill
Goodwill recognised separately as an intangible asset is tested for impairment annually and whenever there is indication
that the goodwill may be impaired.
For the purpose of impairment testing of goodwill, goodwill is allocated to each of the Group’s cash generating units
(“CGU”) expected to benefit from synergies arising from the business combination.
An impairment loss is recognised when the carrying amount of a CGU, including the goodwill, exceeds the recoverable
amount of the CGU. The recoverable amount of a CGU is the higher of the CGU’s fair value less cost to sell and value-inuse. The total impairment loss of a CGU is allocated first to reduce the carrying amount of goodwill allocated to the CGU
and then to the other assets of the CGU pro-rata on the basis of the carrying amount of each asset in the CGU.
An impairment loss on goodwill is recognised in the income statement and is not reversed in a subsequent period.
(b) Property, plant and equipment
Investments in subsidiary, associated and joint venture companies
Property, plant and equipment and investments in subsidiary, associated and joint venture companies are tested for
impairment whenever there is any objective evidence or indication that these assets may be impaired.
For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the
value-in-use) is determined on an individual asset basis unless the asset does not generate cash inflows that are largely
independent of those from other assets. If this is the case, the recoverable amount is determined for the CGU to which the
asset belongs.
Notes to the Financial Statements
for the financial year ended  june  
2.
2.9
45
SIGNIFICANT ACCOUNTING POLICIES (continued)
IMPAIRMENT OF NONFINANCIAL ASSETS (continued)
(b) Property, plant and equipment
Investments in subsidiary, associated and joint venture companies (continued)
If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of
the asset (or CGU) is reduced to its recoverable amount. The difference between the carrying amount and the recoverable
amount is recognised as an impairment loss in the income statement, unless the asset is carried at revalued amount, in
which case, such impairment loss is treated as a revaluation decrease. Please refer to Note 2.6 for the treatment of a
revaluation decrease.
An impairment loss for an asset other than goodwill is reversed if, and only if, there has been a change in the estimates used
to determine the asset’s recoverable amount since the last impairment loss was recognised. The carrying amount of this
asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that
would have been determined (net of any accumulated depreciation) had no impairment loss been recognised for the asset in
prior years.
A reversal of impairment loss for an asset other than goodwill is recognised in the income statement, unless the asset is
carried at revalued amount, in which case, such reversal is treated as a revaluation increase. However, to the extent that
an impairment loss on the same revalued asset was previously recognised in the income statement, a reversal of that
impairment is also recognised in the income statement.
2.10 FINANCIAL ASSETS
(a) Classification
The Group classifies its financial assets in the following categories: at fair value through profit or loss, loans and receivables
and available-for-sale. The classification depends on the nature of the assets and the purpose for which the assets were
acquired. Management determines the classification of its financial assets at initial recognition.
(i)
Financial assets, at fair value through profit or loss
Financial assets designated as at fair value through profit or loss at inception are those that are managed and their
performances are evaluated on a fair value basis, in accordance with a documented Group investment strategy.
Derivatives are categorised as financial assets at fair value through profit or loss unless they are designated as hedges.
Assets in this category are presented as current assets if they are expected to be realised within 12 months after the
balance sheet date.
(ii) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market. They are presented as current assets, except for those expected to be realised later than 12 months after
the balance sheet date which are presented as non-current assets. Loans and receivables are presented as “cash and cash
equivalents” and “trade and other receivables” on the balance sheet and also includes deposits and sundry receivables
classified as “other current assets”.
(iii) Available-for-sale financial assets
Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any
of the other categories. They are presented as non-current assets unless management intends to dispose of the assets
within 12 months after the balance sheet date.
46
Notes to the Financial Statements
for the financial year ended  june  
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
2.10 FINANCIAL ASSETS (continued)
(b) Recognition and derecognition
Regular way purchases and sales of financial assets are recognised on trade-date – the date on which the Group commits to
purchase or sell the asset.
Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been
transferred and the Group has transferred substantially all risks and rewards of ownership. On disposal of a financial asset,
the difference between the carrying amount and the sale proceeds is recognised in the income statement. Any amount in
the fair value reserve relating to that asset is transferred to the income statement.
(c) Initial measurement
Financial assets are initially recognised at fair value plus transaction costs except for financial assets at fair value through
profit or loss, which are recognised at fair value. Transaction costs for financial assets at fair value through profit or loss are
recognised immediately in the income statement.
(d) Subsequent measurement
Financial assets, both available-for-sale and at fair value through profit or loss are subsequently carried at fair value. Loans
and receivables are subsequently carried at amortised cost using the effective interest method.
Changes in the fair values of financial assets at fair value through profit or loss including the effects of currency translation,
interest and dividends are recognised in the income statement when the changes arise.
Interest and dividend income on available-for-sale financial assets are recognised separately in the income statement. Changes
in the fair values of available-for-sale equity securities (i.e. non-monetary items) are recognised in other comprehensive
income, together with the related currency translation differences.
(e) Impairment
The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of
financial assets is impaired and recognises an allowance for impairment when such evidence exists.
(i)
Loans and receivables
Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy, and default or significant
delay in payments are objective evidence that these financial assets are impaired.
The carrying amount of these assets is reduced through the use of an impairment allowance account which is calculated
as the difference between the carrying amount and the present value of estimated future cash flows, discounted at
the original effective interest rate. When the asset becomes uncollectible, it is written off against the allowance
account. Subsequent recoveries of amounts previously written off are recognised against the same line item in the
income statement.
The allowance for impairment loss account is reduced through the income statement in a subsequent period when the
amount of impairment loss decreases and the related decrease can be objectively measured. The carrying amount of the
asset previously impaired is increased to the extent that the new carrying amount does not exceed the amortised cost
had no impairment been recognised in prior periods.
Notes to the Financial Statements
for the financial year ended  june  
47
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
2.10 FINANCIAL ASSETS (continued)
(e) Impairment (continued)
(ii) Available-for-sale financial assets
A significant or prolonged decline in the fair value of an equity security below its cost is considered as an indicator that
the available-for-sale financial asset is impaired.
If any evidence of impairment exists, the cumulative loss that was recognised in the fair value reserve is transferred
to the income statement. The cumulative loss is measured as the difference between the acquisition cost (net of any
principal repayments and amortisation) and the current fair value, less any impairment loss previously recognised in
the income statement. The impairment losses recognised in the income statement on equity securities are not reversed
through the income statement.
2.11 FINANCIAL GUARANTEES
The Company has issued corporate guarantees to banks for borrowings of its subsidiary and joint venture companies. These
guarantees are financial guarantees as they require the Company to reimburse the banks if the subsidiary and joint venture
companies fail to make principal or interest payments when due in accordance with the terms of their borrowings.
Financial guarantees are initially recognised at their fair values plus transaction costs in the Company’s balance sheet.
Financial guarantees are subsequently amortised to the income statement over the period of the subsidiary and joint venture
companies’ borrowings, unless it is probable that the Company will reimburse the bank for an amount higher than the
unamortised amount. In this case, the financial guarantees shall be carried at the expected amount payable to the bank in the
Company’s balance sheet.
Intra-group transactions are eliminated on consolidation.
2.12 INVENTORIES
Inventories are carried at the lower of cost and net realisable value. Cost is determined using the weighted average method. The
cost of finished goods and work-in-progress comprises raw materials, direct labour, other direct costs and related production
overheads (based on normal operating capacity) but excludes borrowing costs. Net realisable value is the estimated selling price
in the ordinary course of business less applicable variable selling expenses.
2.13 BORROWINGS AND BORROWING COSTS
Borrowings are presented as current liabilities unless the Group has an unconditional right to defer settlement for at least 12
months after the balance sheet date.
Borrowings are initially recognised at fair value (net of transaction costs) and subsequently carried at amortised cost. Any
difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income statement over
the period of the borrowings using the effective interest method.
Borrowing costs are recognised in the income statement using the effective interest method except for those costs that are
directly attributable to borrowings acquired specifically for the construction or development of properties. The actual borrowing
costs incurred during the period up to the issuance of the temporary occupation permit less any investment income on temporary
investment of these borrowings, are capitalised in the cost of the property under development.
48
Notes to the Financial Statements
for the financial year ended  june  
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
2.14 DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
A derivative financial instrument is initially recognised at its fair value on the date the contract is entered into and is subsequently
carried at its fair value. The method of recognising the resulting gain or loss depends on whether the derivative is designated as
a hedging instrument, and if so, the nature of the item being hedged.
Fair value changes on derivatives that are not designated or do not qualify for hedge accounting are recognised in the income
statement when the changes arise.
The Group documents at the inception of the transaction the relationship between the hedging instruments and hedged items,
as well as its risk management objective and strategies for undertaking various hedge transactions. The Group also documents
its assessment, both at hedge inception and on an ongoing basis, on whether the derivatives designated as hedging instruments
are highly effective in offsetting changes in cash flows of the hedged items.
The carrying amount of a derivative designated as a hedge is presented as a non-current asset or liability if the remaining
expected life of the hedged item is more than 12 months, and as a current asset or liability, if the remaining expected life of the
hedged item is less than 12 months.
The Group has entered into interest rate and cross currency swaps that are cash flow hedges for the Group’s exposure to interest
rate and currency risks on its borrowings. These contracts entitle the Group to receive interest at floating rates on notional
principal amounts and oblige the Group to pay interest at fixed rates on the notional principal amounts that are denominated
in the same or different currency, thus allowing the Group to raise borrowings at floating rates and swap them into fixed rates
that are lower than those available if they borrowed at fixed rates directly.
The fair value changes on the effective portion of interest rate and cross currency swaps designated as cash flow hedges are
recognised in other comprehensive income and transferred to the income statement when the interest expense on the borrowings
are recognised in the income statement. The fair value changes on the ineffective portion of the interest rate and cross currency
swaps are recognised immediately in the income statement.
Currency forwards are entered into to manage exposure to fluctuations in foreign currency exchange rates on highly probable
forecast transactions. These contracts do not qualify for hedge accounting.
2.15 FAIR VALUE ESTIMATION OF FINANCIAL ASSETS AND LIABILITIES
The fair values of financial instruments traded in active markets (such as exchange-traded and over-the-counter securities and
derivatives) are based on quoted market prices at the balance sheet date. The quoted market prices used for financial assets are
the current bid prices; the appropriate quoted market prices for financial liabilities are the current asking prices.
The fair values of financial instruments that are not traded in an active market are determined by using valuation techniques.
The Group uses a variety of methods and makes assumptions that are based on market conditions existing at each balance sheet
date. Where appropriate, quoted market prices or dealer quotes for similar instruments are used. Valuation techniques, such as
discounted cash flow analyses, are also used to determine the fair values of the financial instruments.
The fair values of interest rate and cross currency swaps are calculated as the present value of the estimated future cash flows
discounted at actively quoted interest and forward exchange rates. The fair values of currency forwards are determined using
actively quoted forward exchange rates.
Notes to the Financial Statements
for the financial year ended  june  
49
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
2.15 FAIR VALUE ESTIMATION OF FINANCIAL ASSETS AND LIABILITIES (continued)
The fair values of financial liabilities carried at amortised cost are estimated by discounting the future contractual cash flows at
the current market interest rates that are available to the Group for similar financial liabilities.
The fair values of current financial assets and liabilities carried at amortised cost approximate their carrying amounts.
2.16 OPERATING LEASES
(a) When the Group is the lessee:
Leases where substantially all risks and rewards incidental to ownership are retained by the lessors are classified as operating
leases. Payments made under operating leases (net of any incentives received from the lessors) are recognised in the income
statement on a straight-line basis over the period of the lease.
Contingent rents are recognised as an expense in the income statement when incurred.
(b) When the Group is the lessor:
Leases of investment properties where the Group retains substantially all risks and rewards incidental to ownership are
classified as operating leases. Rental income from operating leases (net of any incentives given to the lessees) is recognised
in the income statement on a straight-line basis over the lease term.
2.17 INCOME TAXES
Current income tax for current and prior periods is recognised at the amount expected to be paid to or be recovered from the
tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.
Deferred income tax is recognised for all temporary differences arising between the tax bases of assets and liabilities and
their carrying amounts in the financial statements except when the deferred income tax arises from the initial recognition of
goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable
profit or loss at the time of the transaction.
A deferred income tax liability is recognised on temporary differences arising on investments in subsidiary, associated and joint
venture companies, except where the Group is able to control the timing of the reversal of the temporary difference and it is
probable that the temporary difference will not reverse in the foreseeable future.
A deferred income tax asset is recognised to the extent that it is probable that future taxable profit will be available against
which the deductible temporary differences and tax losses can be utilised.
Deferred income tax is measured:
(a) at the tax rates that are expected to apply when the related deferred income tax asset is realised or the deferred income
tax liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the balance sheet
date; and
(b) based on the tax consequence that will follow from the manner in which the Group expects, at the balance sheet date, to
recover or settle the carrying amounts of its assets and liabilities.
50
Notes to the Financial Statements
for the financial year ended  june  
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
2.17 INCOME TAXES (continued)
Current and deferred income taxes are recognised as income or expense in the income statement, except to the extent that the
tax arises from a business combination or a transaction which is recognised directly in equity. Deferred income tax arising from
a business combination is adjusted against goodwill on acquisition.
2.18 PROVISIONS
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is more
likely than not that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated.
2.19 EMPLOYEE COMPENSATION
(a) Defined contribution plans
Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into
separate entities such as the Central Provident Fund on a mandatory, contractual or voluntary basis. The Group has no
further payment obligations once the contributions have been paid.
(b) Share-based payment
The Group operates an equity-settled, share-based payment plan. The value of the employee services received in exchange
for the grant of shares and share options is charged to the income statement with a corresponding increase in the sharebased payment reserve over the vesting period. The total amount to be recognised over the vesting period is determined by
reference to the fair value of the shares and share options granted on the date of the grant. Non-market vesting conditions
are included in the estimation of the number of shares and share options that are expected to vest on the vesting date. At
each balance sheet date, the Group revises its estimates of the number of shares and share options that are expected to vest
on the vesting date and recognises the impact of the revision of the estimates in the income statement, with a corresponding
adjustment to the share-based payment reserve over the remaining vesting period.
2.20 CURRENCY TRANSLATION
(a) Functional and presentation currency
Items included in the financial statements of each entity in the Group are measured using the currency of the primary
economic environment in which the entity operates (“functional currency”). The financial statements are presented in
Singapore Dollars, which is the functional currency of the Company.
(b) Transactions and balances
Transactions in a currency other than the functional currency (“foreign currency”) are translated into the functional currency
using the exchange rates at the dates of the transactions. Currency translation differences resulting from the settlement
of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the
closing rates at the balance sheet date are recognised in the income statement, unless they arise from borrowings in foreign
currencies qualifying as net investment in foreign operations. Those currency translation differences are recognised in other
comprehensive income in the consolidated financial statements and transferred to the income statement as part of the gain
or loss on disposal of the foreign operation.
Non-monetary items measured at fair values in foreign currencies are translated using the exchange rates at the date when
the fair values are determined.
Notes to the Financial Statements
for the financial year ended  june  
51
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
2.20 CURRENCY TRANSLATION (continued)
(c) Translation of Group entities’ financial statements
The results and financial position of all the Group entities that have a functional currency different from the presentation
currency are translated into the presentation currency as follows:
(i) Assets and liabilities are translated at the closing exchange rates at the date of the balance sheet;
(ii) Income and expenses are translated at average exchange rates (unless the average is not a reasonable approximation of
the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated
using the exchange rates at the dates of the transactions); and
(iii) All resulting currency translation differences are recognised in other comprehensive income.
Goodwill and fair value adjustments arising on the acquisition of foreign operations on or after 1 July 2005 are treated
as assets and liabilities of the foreign operations and translated at the closing rates at the date of the balance sheet. For
acquisitions prior to 1 July 2005, the exchange rates at the dates of acquisition are used.
2.21 SEGMENT REPORTING
Operating segments are reported in a manner consistent with the Group’s principal activities and internal reporting provided
to management who are responsible for allocating resources and assessing the performance of the operating segments.
Sales between segments are carried out at arm’s length. The revenue from external parties reported to management is measured
in a manner consistent with that in the income statement.
Management assesses the performance of the operating segments based on a measure of Earnings/(Losses) before interest and
tax (“EBIT”). Interest income and finance costs are not allocated to the segments.
The amounts provided to management with respect to total assets and liabilities are measured in a manner consistent with
that of the financial statements. These assets and liabilities are allocated based on the operations of the segment. All assets and
liabilities are allocated to reportable segments other than tax recoverable and current and deferred income tax.
Segment capital expenditure is the total cost incurred during the financial year to acquire property, plant and equipment and
investment properties.
2.22 CASH AND CASH EQUIVALENTS
For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents include interest-bearing
bank accounts, fixed deposits with financial institutions and cash and bank balances, which are subject to an insignificant risk
of change in value.
2.23 SHARE CAPITAL AND TREASURY SHARES
Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares are
deducted against the share capital account.
52
Notes to the Financial Statements
for the financial year ended  june  
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
2.23 SHARE CAPITAL AND TREASURY SHARES (continued)
When any entity within the Group purchases the Company’s ordinary shares (“treasury shares”), the consideration paid
including any directly attributable incremental cost is presented as a component within equity attributable to the Company’s
equity holders, until they are cancelled, sold or reissued.
When treasury shares are subsequently cancelled, the cost of treasury shares are deducted against the share capital account if the
shares are purchased out of capital of the Company, or against the retained earnings of the Company if the shares are purchased
out of earnings of the Company.
When treasury shares are subsequently sold or reissued pursuant to the employee share plans and share option scheme, the cost
of the treasury shares is reversed from the treasury share account.
2.24 DIVIDENDS TO EQUITY HOLDERS OF THE COMPANY
Dividends to equity holders of the Company are recognised when the dividends are approved for payment.
2.25 TRADE AND OTHER PAYABLES
Trade and other payables are initially recognised at fair value, and subsequently carried at amortised cost, using the effective
interest method.
3.
REVENUE
Group
Revenue from sale of:
– development properties
– goods
Rental income
Management fees
Dividend income
2011
$’000
2010
$’000
401,094
205,895
37,055
4,948
81
589,894
186,452
36,815
8,617
73
649,073
821,851
53
Notes to the Financial Statements
for the financial year ended  june  
4.
OTHER GAINS/LOSSES  NET
Group
Interest income from:
– joint venture companies
– banks
Gain on disposal of property, plant and equipment
Fair value gains on investment properties
Allowance for foreseeable losses on development properties
Gain on capital reduction of joint venture companies
Other miscellaneous gains
5.
2011
$’000
2010
$’000
5,257
2,658
957
74,616
(14,840)
10,201
1,988
7,544
2,394
949
5,140
–
–
4,390
80,837
20,417
EXPENSES BY NATURE
Group
2011
$’000
Depreciation of property, plant and equipment
Employee compensation
Fair value losses on derivative financial instruments
Write-back of impairment on property, plant and equipment
Write-down of inventory
Write-off of property, plant and equipment
Rental expense on operating leases
Foreign exchange loss
Development cost included in cost of sales
Raw materials and finished goods
2010
$’000
11,100
75,892
238
(59)
1,108
389
48,219
1,387
188,446
78,863
12,149
68,575
68
(188)
508
411
47,253
1,371
335,299
70,305
Included in the Group’s rental expense on operating leases is contingent rent amounting to $3.1 million (2010: $3.8 million).
6.
EMPLOYEE COMPENSATION
Group
Wages and salaries (including directors’ remuneration)
Employer’s contribution to defined contribution plans
including Central Provident Fund
Share-based payment
Please refer to Note 33(b) for directors’ remuneration.
2011
$’000
2010
$’000
66,750
60,364
5,729
3,413
5,392
2,819
75,892
68,575
54
7.
Notes to the Financial Statements
for the financial year ended  june  
FINANCE COSTS
Group
Interest expense to banks
8.
2011
$’000
2010
$’000
39,868
31,295
INCOME TAXES
(a) Income tax expense
Group
2011
$’000
2010
$’000
Tax expense attributable to profit is made up of:
Current income tax
– Singapore
– Foreign
50,634
12,510
26,704
8,758
Deferred income tax
63,144
(1,618)
35,462
17,829
61,526
53,291
(Over)/under provision in preceding financial years
– Current income tax
– Deferred income tax
(2,161)
(11,272)
(639)
153
48,093
52,805
The Group is subject to income taxes in numerous jurisdictions. Significant judgement is required in estimating the
capital allowances and the deductibility of certain expenses in determining the provision for income taxes. There are many
transactions and calculations during the ordinary course of business for which the ultimate tax determination is uncertain.
The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due.
Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences
will impact the current and deferred income tax provisions in the period in which such determination is made.
The income tax expense on profit differs from the amount that would arise using the Singapore standard rate of income tax
as explained below:
Group
Singapore standard rate of income tax
Different tax rates in other countries
Expenses not deductible for tax purposes
Income not subject to tax
Tax losses not recognised
Utilisation of previously unrecognised tax losses and capital allowances
2011
%
2010
%
17.0
1.0
3.9
(7.4)
0.8
(0.1)
17.0
1.0
3.6
(2.8)
0.9
(0.3)
15.2
19.4
55
Notes to the Financial Statements
for the financial year ended  june  
8.
INCOME TAXES (continued)
(a) Income tax expense (continued)
The tax charge relating to each component of other comprehensive (expense)/income is as follows:
Before tax
$’000
2011
Cash flow hedges
Currency translation differences
Revaluation gains on property, plant and equipment
Share of other comprehensive expense of associated and
joint venture companies
(5,403)
(69,085)
10,340
(1,396)
2010
Cash flow hedges
Currency translation differences
Revaluation gains on property, plant and equipment
Share of other comprehensive income of associated and
joint venture companies
Group
Tax charge
$’000
After tax
$’000
–
–
(1,894)
(5,403)
(69,085)
8,446
–
(1,396)
(65,544)
(1,894)
(67,438)
(3,674)
(13,736)
4,186
–
–
(1,547)
(3,674)
(13,736)
2,639
6,108
(7,116)
–
6,108
(1,547)
(8,663)
(b) Deferred income taxes
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current income tax
assets against current income tax liabilities and when the deferred income taxes relate to the same fiscal authority. The
amounts, determined after appropriate offsetting, are shown on the balance sheet as follows:
Group
Deferred income tax liabilities to be settled
after one year
Company
2011
$’000
2010
$’000
2011
$’000
2010
$’000
85,665
97,241
–
2,342
Deferred income tax assets are recognised for tax losses carried forward to the extent that realisation of the related
tax benefits through future taxable profits is probable. The Group had unrecognised tax losses of $179.0 million
(2010: $176.4 million) at the balance sheet date which can be carried forward and used to offset against future taxable
income subject to meeting certain statutory requirements by those companies with unutilised tax losses in their respective
countries of incorporation. These tax losses have no expiry date.
56
8.
Notes to the Financial Statements
for the financial year ended  june  
INCOME TAXES (continued)
(b) Deferred income taxes (continued)
The movement in deferred income tax assets and liabilities (prior to offsetting of balances within the same tax jurisdiction)
during the financial year is as follows:
Deferred income tax liabilities – Group
Accelerated tax
depreciation
$’000
2011
Beginning of financial year
Currency translation differences
Charged/(credited) to:
– other comprehensive income
– income statement
Revaluation
gains
$’000
Recognition
of profits on
percentage of
completion
$’000
Others
$’000
Total
$’000
4,898
(75)
49,181
(521)
44,197
–
358
(4)
98,634
(600)
–
1,508
1,894
1,292
–
(16,451)
–
(198)
1,894
(13,849)
6,331
51,846
27,746
156
86,079
4,713
21
46,328
541
27,307
–
230
7
78,578
569
–
164
1,547
765
–
16,890
–
121
1,547
17,940
4,898
49,181
44,197
358
98,634
Accelerated tax
depreciation
$’000
Provisions
$’000
Tax
losses
$’000
Others
$’000
Total
$’000
End of financial year
2010
Beginning of financial year
Currency translation differences
Charged to:
– other comprehensive income
– income statement
End of financial year
Deferred income tax assets – Group
2011
Beginning of financial year
Currency translation differences
(Charged)/credited to income statement
End of financial year
2010
Beginning of financial year
Currency translation differences
Credited/(charged) to income statement
End of financial year
1,126
–
(1,126)
20
(1)
–
247
(17)
101
–
(2)
66
1,393
(20)
(959)
–
19
331
64
414
992
–
134
19
1
–
354
11
(118)
57
1
(58)
1,422
13
(42)
1,126
20
247
–
1,393
57
Notes to the Financial Statements
for the financial year ended  june  
8.
INCOME TAXES (continued)
(b) Deferred income taxes (continued)
Deferred income tax liabilities – Company
Revaluation
gains/ (losses)
$’000
2011
Beginning of financial year
Credited to income statement
End of financial year
2010
Beginning of financial year
Charged to:
– other comprehensive income
– income statement
End of financial year
3,310
(3,310)
Others
$’000
158
(158)
Total
$’000
3,468
(3,468)
–
–
–
2,960
158
3,118
312
38
–
–
312
38
3,310
158
3,468
Deferred income tax assets – Company
Accelerated tax
depreciation
$’000
2011
Beginning of financial year
Charged to income statement
End of financial year
2010
Beginning of financial year
Credited to income statement
End of financial year
1,126
(1,126)
–
992
134
1,126
58
9.
Notes to the Financial Statements
for the financial year ended  june  
EARNINGS PER SHARE
(a) Basic earnings per share
Basic earnings per share is calculated by dividing the net profit attributable to equity holders of the Company by the
weighted average number of ordinary shares in issue during the financial year.
Group
Net profit attributable to equity holders of the Company ($’000)
Weighted average number of ordinary shares in issue for basic earnings per share (’000)
Basic earnings per share (cents)
2011
2010
314,180
779,181
160,750
777,945
40.32
20.66
(b) Diluted earnings per share
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue to assume
issuance of all dilutive potential ordinary shares from share plans and share options. A calculation is done to determine
the number of shares that could have been acquired at fair value (determined as the average share price of the Company’s
shares for the financial year) based on the monetary value of the subscription rights attached to outstanding share options.
The number of shares calculated as above is compared with the number of shares that would have been issued assuming the
exercise of the share options. The difference is added to the denominator as an issue of ordinary shares for no consideration.
Group
2011
$’000
2010
$’000
Net profit attributable to equity holders of the Company
Adjustments for share options of:
– a subsidiary company
– an associated company
314,180
160,750
Net profit used to determine diluted earnings per share
313,535
160,665
’000
779,181
’000
777,945
3,758
287
2,644
386
783,226
780,975
40.03
20.57
Weighted average number of ordinary shares in issue for basic earnings per share
Adjustments for:
– share plans
– share options
Number of ordinary shares used to determine diluted earnings per share
Diluted earnings per share (cents)
(77)
(568)
(23)
(62)
59
Notes to the Financial Statements
for the financial year ended  june  
10. CASH AND CASH EQUIVALENTS
Group
Fixed deposits with financial institutions
Cash and bank balances
Company
2011
$’000
2010
$’000
2011
$’000
2010
$’000
411,818
92,417
540,254
53,800
173,971
15,020
327,364
4,443
504,235
594,054
188,991
331,807
Included in cash and cash equivalents of the Group are amounts held under Housing Developers (Project Account)
(Amendment) Rules 1997, totalling $70.9 million (2010: $45.2 million), the use of which is subject to restrictions imposed by
the aforementioned rules.
The carrying amounts of cash and cash equivalents approximated their fair values.
11. DERIVATIVE FINANCIAL INSTRUMENTS
Group
2011
Cash flow hedges
– Interest rate and cross currency swaps
Non-hedging instruments
– Currency forwards
Company
Contract
notional
amount
$’000
Fair
value
liability
$’000
Contract
notional
amount
$’000
530,252
(33,817)
125,000
10,331
(299)
–
(34,116)
2010
Cash flow hedges
– Interest rate and cross currency swaps
Non-hedging instruments
– Currency forwards
(6,286)
–
(6,286)
655,940
(28,414)
125,000
10,503
(61)
–
(28,475)
Fair
value
liability
$’000
(6,607)
–
(6,607)
As at 30 June 2011, the fixed interest rate on HKD interest rate swap is 4.4% (2010: 4.4%) per annum, the fixed interest rate on
USD interest rate swap is 2.8% (2010: 2.8%) per annum and the fixed interest rates on SGD interest rate swaps vary from 2.4%
to 5.5% (2010: 2.4% to 5.5%) per annum. The main floating rates are Hong Kong Interbank Offered Rate, London Interbank
Offered Rate and Singapore Swap Offered Rate.
Interest rate swaps are entered into to hedge floating rate borrowings that will mature between March 2012 to October
2014. Fair value gains and losses on the interest rate swaps recognised in the cash flow hedge reserve are reclassified to the
income statement as part of finance costs or capitalised in the costs of the properties under development over the period of
the borrowings.
Please refer to Note 2.14 for details of the financial instruments and hedging policies.
60
Notes to the Financial Statements
for the financial year ended  june  
12. TRADE AND OTHER RECEIVABLES  CURRENT
Group
2011
$’000
Trade receivables
Allowance for impairment of receivables
Company
2010
$’000
2011
$’000
2010
$’000
187,749
(920)
27,088
(1,704)
–
–
40
–
186,829
25,384
–
40
–
–
–
–
436,749
(159,821)
424,040
(153,327)
–
–
276,928
270,713
18,144
17,437
356
319
Due from non-controlling interests
– non-trade [Note 12(ii)]
4,892
–
–
–
Dividend receivable
2,786
–
–
–
212,651
42,821
277,284
271,072
Due from subsidiary companies
– non-trade [Note 12(i)]
Allowance for impairment of receivables
Due from associated and joint venture
companies - non-trade [Note 12(ii)]
Total current receivables
(i) Amounts due from subsidiary companies are unsecured and repayable on demand. Included in the amounts due from
subsidiary companies are fixed interest rate receivables of $223.7 million (2010: $231.9 million).
(ii) Amounts due from associated and joint venture companies and non-controlling interests are unsecured, interest-free and
repayable on demand.
The carrying amounts of current trade and other receivables approximated their fair values.
13. INVENTORIES
Group
Raw materials
Work-in-progress
Finished goods
2011
$’000
2010
$’000
918
68
17,798
1,204
392
14,870
18,784
16,466
The cost of inventories recognised as expense and included in “cost of sales” amounted to $78.9 million (2010: $70.3 million).
61
Notes to the Financial Statements
for the financial year ended  june  
14. DEVELOPMENT PROPERTIES
Group
2011
$’000
2010
$’000
1,011,084
531,074
142,269
919,307
455,178
128,329
Attributable profits
Allowance for foreseeable losses
1,684,427
504,880
(75,200)
1,502,814
407,673
(67,687)
Progress payments received and receivable
2,114,107
(980,440)
1,842,800
(438,737)
1,133,667
141,484
1,404,063
18,939
1,275,151
1,423,002
894,205
1,147,841
11,071
21,618
Properties under development
Land, at cost
Development costs
Overhead expenditure capitalised
Properties held for sale
Value of properties under development mortgaged to secure long term
banking facilities granted (Note 24)
Total interest capitalised during the financial year
The major development properties are as follows:
Location
Type of
development
Singapore
Helios Residences at 140 units of
Cairnhill Circle
apartments
Tenure
% of
completion
Expected
at completion
30.06.2011
date
Land
area
(Sq m)
Gross Group’s
floor interest in
area property
(Sq m)
(%)
Freehold
100
n/a
7,399
20,717
100
Belle Vue Residences 176 units of
at Oxley Walk
condominium
housing
Freehold
100
n/a
23,004
32,205
60
L’VIV
at Newton Road
147 units of
apartments
Freehold
15
2013
3,984
11,156
100
Le Nouvel
Ardmore at 1A,
Ardmore Park
43 units of
condominium
housing
Freehold
7
2013
5,624
15,746
100
Leasehold
5
2014
22,744
47,763
100
Foresque Residences 496 units of
at Petir Road
condominium
housing
62
Notes to the Financial Statements
for the financial year ended  june  
14. DEVELOPMENT PROPERTIES (continued)
Location
Type of
development
Tenure
% of
completion
Expected
at completion
30.06.2011
date
Malaysia
Sering Ukay at
Mukim of
Ulu Klang,
Gombak,
Selangor
187 units of
semi-detached
houses and
bungalows
Freehold Phase 3
Verticas Residences
at Section 57, Town
of Kuala Lumpur
423 units of
condominium
housing
Freehold Towers
A, B, C, D
Kondominium
Le Nouvel at
Section 43, Town
of Kuala Lumpur
197 units of
condominium
housing
Kondominium
Nobleton Crest
at Jalan U-Thant,
Town of
Kuala Lumpur
Land
area
(Sq m)
Gross Group’s
floor interest in
area property
(Sq m)
(%)
–
–
188,151
68,655
60.4
36
2012
9,764
91,748
60.4
Freehold
–
2014
6,084
50,033
60.4
25 units of
condominium
housing
Freehold
–
2013
4,047
12,935
60.4
Taman Seri Impian
at Mukim 14 and 15,
Daerah Seberang
Perai Tengah,
Pulau Pinang
34 units of
terrace and semidetached houses,
bungalows and
shop offices
Freehold Phase 6
32
2012
4,517
8,140
60.4
Taman Nagasari
at Mukim 6,
Province Wellesley
Central, 13600
Pulau Pinang
310 units of
flats and
vacant land
Freehold Blocks A, B
–
–
27,883
19,068
60.4
Taman Bukit
Minyak Utama
at Mukim 14,
Daerah Seberang
Perai Tengah,
Pulau Pinang
492 units of
terrace and
semi-detached
houses and
shop houses
Freehold Phase 1A
Phase 2
Phase 3
Phase 4
78
96
14
–
2011
2011
2013
2014
118,164
113,989
60.4
63
Notes to the Financial Statements
for the financial year ended  june  
14. DEVELOPMENT PROPERTIES (continued)
Location
Malaysia (continued)
Sentral Greens
at Mukim 13,
Tempat Relau,
Daerah Timur
Laut, Pulau Pinang
Plaza DNP at
14-A and 59 Jalan
Dato Abdullah
Tahir, 80300
Johor Bahru, Johor
Type of
development
Tenure
% of
completion
Expected
at completion
30.06.2011
date
Land
area
(Sq m)
Gross Group’s
floor interest in
area property
(Sq m)
(%)
54 units of
terrace and
semi-detached
houses
Freehold
100
n/a
18,666
14,035
60.4
594 units of
apartment and
commercial
podium
Freehold Phase 1
Phase 2
100
–
n/a
–
37,367
265,139
60.4
58
2012
41,578
69,921
60.4
Impiana Commercial 83 units of
Hub at Mukim 14, shop houses
Daerah Seberang
Perai Tengah,
Pulau Pinang
Freehold
Vacant land
at Pekan Penaga,
District of Petaling,
Selangor
–
99-year
lease expiring
2093
–
–
38,155
n/a
60.4
Vacant land at
Section 89A,
Town of
Kuala Lumpur
–
Freehold
–
–
8,645
n/a
60.4
Vacant land
at Mukim 14 - 16,
Daerah Seberang
Perai Tengah,
Pulau Pinang
–
Freehold
–
–
707,011
n/a
60.4
Vacant land at
Mukim 17,
Batu Ferringhi,
Pulau Pinang
–
Freehold
–
–
2,282
n/a
60.4
64
Notes to the Financial Statements
for the financial year ended  june  
14. DEVELOPMENT PROPERTIES (continued)
Location
Type of
development
% of
completion
Expected
at completion
30.06.2011
date
Tenure
Land
area
(Sq m)
Gross Group’s
floor interest in
area property
(Sq m)
(%)
The People’s Republic of China
The Lakeview at
190 units
No. 63 Xinggang
of apartments
Street, Suzhou
Industrial Park
70-year Phase 3
lease
expiring
2066
60
2011
9,740
31,528
75
The Lakeside
at No.1 Xingzhou
Street, Suzhou
Industrial Park
70-year Phase 2
lease
expiring
2066
–
–
19,518
18,990
75
Mixed
development
comprising
townhouses,
bungalows and
apartments
n/a: not applicable
15. OTHER CURRENT ASSETS
Group
Deposits
Prepayments
Sundry receivables
Company
2011
$’000
2010
$’000
2011
$’000
2010
$’000
10,704
29,045
8,895
9,832
22,197
6,060
49
543
2,023
163
697
2,027
48,644
38,089
2,615
2,887
The carrying amounts of deposits and sundry receivables approximated their fair values.
16. AVAILABLEFORSALE FINANCIAL ASSETS
Group
Beginning and end of financial year
Company
2011
$’000
2010
$’000
2011
$’000
2010
$’000
7,170
7,170
3,189
3,189
The available-for-sale financial assets comprised unquoted equity shares in Singapore.
65
Notes to the Financial Statements
for the financial year ended  june  
17. TRADE AND OTHER RECEIVABLES  NONCURRENT
Group
Loans to subsidiary companies [Note 17(i)]
Allowance for impairment of receivables
Loans to joint venture companies [Note 17(ii)]
Allowance for impairment of receivables
Loans to non-controlling interests
[Note 17(iii)]
Total non-current receivables
Company
2011
$’000
2010
$’000
2011
$’000
2010
$’000
–
–
–
–
631,936
(13,382)
507,178
(11,108)
–
–
618,554
496,070
205,739
(11,928)
213,587
(12,541)
–
–
–
–
193,811
201,046
–
–
3,979
21,643
–
–
197,790
222,689
618,554
496,070
(i) Loans to subsidiary companies are unsecured, have no fixed terms of repayment and are not expected to be repayable within
the next 12 months. Included in the loans to subsidiary companies are fixed interest rate receivables of $210.1 million
(2010: $277.6 million).
The interest-free loans to subsidiary companies are intended to be a long-term source of additional capital for the subsidiary
companies. As a result, management considers such loans to be in substance part of the Company’s net investment in these
subsidiary companies and has accounted for these loans in accordance with Note 2.5.
(ii) Loans to joint venture companies are unsecured, have no fixed terms of repayment and are not expected to be repayable
within the next 12 months. Included in the loans to joint venture companies are fixed interest rate receivables of
$204.2 million (2010: $211.9 million).
The interest-bearing loans to joint venture companies amounting to $186.4 million (2010: $191.1 million) are
subordinated to banking facilities of $893.8 million (2010: $893.8 million) granted by banks to the said joint
venture companies.
(iii) Loans by certain subsidiary companies to non-controlling interests are made proportionate to the shareholders’ equity
stake in the subsidiary companies on a pari passu basis. The loans are unsecured, interest-free, have no fixed terms of
repayment and are not expected to be repayable within the next 12 months.
The carrying amounts of non-current trade and other receivables approximated their fair values.
66
Notes to the Financial Statements
for the financial year ended  june  
18. INVESTMENT IN AN ASSOCIATED COMPANY
Group
2011
$’000
2010
$’000
Carrying amount of quoted investment in an associated company
554,027
514,662
The above carrying amount included the following:
– Share of an associated company’s other comprehensive income
– Share of an associated company’s net profit
7,379
105,761
6,390
24,177
The summarised financial information of an associated company, not adjusted for the proportionate ownership interest held by
the Group, is as follows:
Group
2011
$’000
Assets
Liabilities
Revenue
Net profit
Share of an associated company’s contingent liabilities
incurred jointly with other investors
Market value of quoted equity shares
3,127,945
(1,188,076)
306,043
384,865
2010
$’000
3,072,658
(1,308,648)
445,928
115,907
–
26,469
231,200
187,199
As at 30 June 2011, the carrying value of quoted equity shares is higher than the market value. The directors consider the
carrying value of investment in the associated company appropriate, after having evaluated various qualitative and quantitative
factors including the historical financial performance of the associated company.
Details of the Group’s associated company are listed in Note 35 to the financial statements.
67
Notes to the Financial Statements
for the financial year ended  june  
19. INVESTMENTS IN JOINT VENTURE COMPANIES
The following amounts represent the Group’s share of the assets, liabilities, revenue and expenses of the joint venture companies
which are included in the consolidated balance sheet and consolidated income statement using equity accounting.
Group
2011
$’000
2010
$’000
725,492
40,504
686,650
28,666
765,996
715,316
(142,609)
(433,618)
(163,636)
(402,223)
(576,227)
(565,859)
189,769
149,457
262,447
(191,703)
(12,284)
150,581
(118,024)
(5,064)
58,460
27,493
Assets
– Current assets
– Non-current assets
Liabilities
– Current liabilities
– Non-current liabilities
Net assets
Revenue
Expenses
Income tax expense
Net profit
The Group’s share of the capital commitments of the joint venture companies were as follows:
Group
Contracted but not provided for
2011
$’000
2010
$’000
147,122
179,651
Details of the Group’s joint venture companies are listed in Note 35 to the financial statements.
20. INVESTMENTS IN SUBSIDIARY COMPANIES
Company
2011
$’000
2010
$’000
Beginning of financial year
Write-back of allowance for impairment
252,392
–
250,369
2,023
End of financial year
252,392
252,392
Details of the Group’s subsidiary companies are listed in Note 35 to the financial statements.
68
Notes to the Financial Statements
for the financial year ended  june  
21. INVESTMENT PROPERTIES
Group
2011
$’000
Company
2010
$’000
Beginning of financial year
Fair value gains recognised in income statement
Transfer from/(to) property, plant and equipment
Transfer to development properties
Additional expenditure
Disposals
Currency translation differences
486,028
74,616
701
(1,856)
4,438
–
(3,717)
480,883
5,140
(2,075)
–
–
–
2,080
End of financial year
560,210
486,028
2011
$’000
2010
$’000
82,000
–
–
–
–
(82,000)
–
82,000
–
–
–
–
–
–
–
82,000
The major investment properties are as follows:
Location
Description
Tenure
9-storey warehouse
and office building
Freehold
Winsland House I
at 3 Killiney Road
(1st to 9th floor)
10-storey
commercial
building
Winsland House II
at 163 Penang Road
Singapore
105 Tampines Road
Lettable
area
(Sq m)
Group’s interest
in property
(%)
9,257
100
99-year
lease
expiring 2082
13,287
100
8-storey
commercial
building
99-year
lease
expiring 2093
7,287
100
Winsland House II
at 165 Penang Road
Conservation
house
99-year
lease
expiring 2093
534
100
Lanson Place
Winsland Residences
at 167 Penang Road
9-storey serviced
apartments
99-year
lease
expiring 2093
6,030
100
132 units of
condominium
housing
Freehold
22,702
60.4
8-storey
commercial
building
50-year lease
expiring 2046
8,255
75
Malaysia
Lanson Place
Kondominium No. 8
at Section 89A,
Town of Kuala Lumpur
The People’s Republic of China
Singa Plaza
at No. 8 Jinji Hu Road,
Suzhou Industrial Park
69
Notes to the Financial Statements
for the financial year ended  june  
21. INVESTMENT PROPERTIES (continued)
Investment properties are carried at fair values at the balance sheet date as determined by independent professional valuers
based on the Direct Market Comparison Method and Investment Method.
Investment properties are leased to third parties under operating leases (Note 30).
Investment properties with a total valuation of $508.4 million (2010: $443.8 million) were mortgaged to banks to secure long
term banking facilities granted to the subsidiary companies (Note 24).
The following amounts are recognised in the income statement:
Group
Rental income
Direct operating expenses arising from
investment properties that generated rental income
2011
$’000
2010
$’000
31,584
33,366
(9,998)
(9,812)
70
Notes to the Financial Statements
for the financial year ended  june  
22. PROPERTY, PLANT AND EQUIPMENT
Freehold land Leasehold land
and buildings and buildings
$’000
$’000
Motor
vehicles
$’000
Office
Furniture
equipment and fittings
$’000
$’000
Total
$’000
GROUP
2011
Cost or valuation
Beginning of financial year
Cost
Valuation
–
101,278
1,147
49,473
4,676
–
16,230
–
40,741
–
62,794
150,751
Transfer to investment properties
Additions
Additional expenditure on property
Disposals
Write-off
Revaluation (losses)/gains
Currency translation differences
101,278
–
1
6,920
(898)
–
(1,056)
(2,169)
50,620
(701)
2
–
–
–
7,615
(507)
4,676
–
1,496
–
(616)
–
–
(208)
16,230
–
2,837
–
(442)
(146)
–
(755)
40,741
–
9,631
–
(361)
(2,798)
–
(1,241)
213,545
(701)
13,967
6,920
(2,317)
(2,944)
6,559
(4,880)
End of financial year
104,076
57,029
5,348
17,724
45,972
230,149
Representing:
Cost
Valuation
–
104,076
–
57,029
5,348
–
17,724
–
45,972
–
69,044
161,105
104,076
57,029
5,348
17,724
45,972
230,149
1,342
1,082
–
–
–
(2,072)
(40)
2,141
1,011
(506)
–
–
–
(142)
7,189
2,135
(318)
–
(119)
–
(709)
24,395
6,174
(111)
–
(2,436)
–
(961)
36,992
11,100
(1,277)
67
(2,555)
(3,907)
(1,915)
Accumulated depreciation
and impairment losses
Beginning of financial year
Depreciation charge
Disposals
Impairment loss
Write-off
Revaluation adjustments
Currency translation differences
1,925
698
(342)
67
–
(1,835)
(63)
End of financial year
450
312
2,504
8,178
27,061
38,505
Net book value
End of financial year
103,626
56,717
2,844
9,546
18,911
191,644
71
Notes to the Financial Statements
for the financial year ended  june  
22. PROPERTY, PLANT AND EQUIPMENT (continued)
Freehold land Leasehold land
and buildings and buildings
$’000
$’000
Motor
vehicles
$’000
Office
Furniture
equipment and fittings
$’000
$’000
Total
$’000
GROUP
2010
Cost or valuation
Beginning of financial year
Cost
Valuation
–
99,462
491
49,066
4,237
–
13,118
–
40,485
–
58,331
148,528
Transfer from investment properties
Additions
Disposals
Write-off
Revaluation gains
Currency translation differences
99,462
–
–
(55)
–
306
1,565
49,557
2,075
874
(3,000)
–
734
380
4,237
–
1,039
(701)
(41)
–
142
13,118
–
3,032
(125)
(429)
–
634
40,485
–
6,998
(22)
(7,602)
–
882
206,859
2,075
11,943
(3,903)
(8,072)
1,040
3,603
End of financial year
101,278
50,620
4,676
16,230
40,741
213,545
Representing:
Cost
Valuation
–
101,278
1,147
49,473
4,676
–
16,230
–
40,741
–
62,794
150,751
101,278
50,620
4,676
16,230
40,741
213,545
Accumulated depreciation
and impairment losses
Beginning of financial year
Depreciation charge
Disposals
Impairment loss/(write-back
of impairment)
Write-off
Revaluation adjustments
Currency translation differences
3,549
696
–
1,428
1,033
(765)
–
–
(2,368)
48
366
–
(778)
58
1,569
1,008
(529)
–
–
–
93
5,522
2,125
(103)
23,634
7,287
(3)
35,702
12,149
(1,400)
(595)
(368)
–
608
41
(7,293)
–
729
(188)
(7,661)
(3,146)
1,536
End of financial year
1,925
1,342
2,141
7,189
24,395
36,992
Net book value
End of financial year
99,353
49,278
2,535
9,041
16,346
176,553
72
Notes to the Financial Statements
for the financial year ended  june  
22. PROPERTY, PLANT AND EQUIPMENT (continued)
COMPANY
2011
Cost or valuation
Beginning of financial year
Cost
Valuation
Additions
Disposals
Freehold land
and buildings
$’000
Motor
vehicles
$’000
Office
Furniture
equipment and fittings
$’000
$’000
–
8,400
1,659
–
4,935
–
2,401
–
8,995
8,400
8,400
–
(8,400)
1,659
755
(292)
4,935
628
(145)
2,401
–
(329)
17,395
1,383
(9,166)
Total
$’000
End of financial year
–
2,122
5,418
2,072
9,612
Representing:
Cost
–
2,122
5,418
2,072
9,612
Accumulated depreciation
Beginning of financial year
Depreciation charge
Disposals
–
9
(9)
957
349
(292)
735
82
(43)
766
205
(98)
2,458
645
(442)
End of financial year
–
1,014
774
873
2,661
Net book value
End of financial year
–
1,108
4,644
1,199
6,951
73
Notes to the Financial Statements
for the financial year ended  june  
22. PROPERTY, PLANT AND EQUIPMENT (continued)
Freehold land
and buildings
$’000
Motor
vehicles
$’000
COMPANY
2010
Cost or valuation
Beginning of financial year
Cost
Valuation
–
8,094
2,184
–
3,439
–
7,445
–
13,068
8,094
Additions
Disposals
Write-off
Revaluation gain
8,094
–
–
–
306
2,184
–
(525)
–
–
3,439
1,721
(20)
(205)
–
7,445
–
(88)
(4,956)
–
21,162
1,721
(633)
(5,161)
306
End of financial year
8,400
1,659
4,935
2,401
17,395
Representing:
Cost
Valuation
–
8,400
1,659
–
4,935
–
2,401
–
8,995
8,400
8,400
1,659
4,935
2,401
17,395
5,352
253
–
(4,839)
–
8,603
853
(405)
(5,043)
(1,550)
Accumulated depreciation
Beginning of financial year
Depreciation charge
Disposals
Write-off
Revaluation adjustment
1,505
45
–
–
(1,550)
Office
Furniture
equipment and fittings
$’000
$’000
947
411
(401)
–
–
799
144
(4)
(204)
–
Total
$’000
End of financial year
–
957
735
766
2,458
Net book value
End of financial year
8,400
702
4,200
1,635
14,937
The freehold and leasehold land and buildings of the Group and the Company were valued by independent professional valuers
based on the Direct Market Comparison Method and Investment Method at the balance sheet date.
If the freehold and leasehold land and buildings stated at valuation were included in the financial statements at cost less
accumulated depreciation, their net book values would be as follows:
Group
Freehold land and buildings
Leasehold land and buildings
Company
2011
$’000
2010
$’000
2011
$’000
2010
$’000
43,574
45,852
39,948
48,334
–
–
718
–
74
Notes to the Financial Statements
for the financial year ended  june  
22. PROPERTY, PLANT AND EQUIPMENT (continued)
The major properties included in freehold and leasehold land and buildings are as follows:
Location
Lettable
area (Sq m)
Description
Tenure
10-storey warehouse and office
building and a 5-storey canteen
Freehold
18,043
19 Valley Road
16 units of apartments
in a 4-storey building
Freehold
1,665
Winsland House I
at 3 Killiney Road (Basement 1 and 10th floor)
10-storey commercial building
99-year lease
expiring 2082
2,764
Malaysia
166-A, Rifle Range Road, 11400 Pulau Pinang
5-storey commercial building
99-year lease
expiring 2109
11,136
Lanson Place Ambassador Row Residences
at 1 Jalan Ampang Hilir, 55000 Kuala Lumpur
221 units of serviced apartments
in a 20-storey building
Freehold
17,452
Singapore
107 Tampines Road
Property, plant and equipment with net book values amounting to $78.2 million (2010: $74.9 million) were mortgaged to
banks to secure long term banking facilities granted to subsidiary companies (Note 24).
23. TRADE AND OTHER PAYABLES
Group
Company
2011
$’000
2010
$’000
2011
$’000
2010
$’000
–
–
152,385
150,105
22,766
4,843
–
–
4,378
4,378
–
–
Due to non-controlling interests
– non-trade [Note 23(iii)]
34,933
–
–
–
Accrued project costs
Accrued operating expenses
Trade creditors
Other creditors
Tenancy deposits
58,308
57,667
29,171
12,649
2,466
39,369
48,930
28,785
22,767
2,989
–
8,046
–
1,697
–
–
9,832
–
1,801
194
160,261
142,840
9,743
11,827
222,338
152,061
162,128
161,932
Due to subsidiary companies
– non-trade [Note 23(i)]
Due to associated and joint venture
companies – non-trade [Note 23(ii)]
Due to an investee company
– non-trade [Note 23(ii)]
Total trade and other payables
(i) Non-trade amounts due to subsidiary companies are unsecured and repayable on demand. Included in the amounts due
to subsidiary companies are fixed interest rate payables of $29.4 million (2010: $40.7 million) and floating interest rate
payables of $17.7 million (2010: $19.7 million).
75
Notes to the Financial Statements
for the financial year ended  june  
23. TRADE AND OTHER PAYABLES (continued)
(ii) Non-trade amounts due to associated, joint venture and investee companies are unsecured, interest-free and repayable
on demand.
(iii) Non-trade amounts due to non-controlling interests are unsecured and repayable on demand. Included in the amounts due to
non-controlling interests are fixed interest rate payables of $11.4 million (2010: Nil).
The carrying amounts of trade and other payables approximated their fair values.
24. BORROWINGS
Group
Current
– Secured term loans
– Unsecured bank loans
– Unsecured medium term notes due 2011
Non-current
– Secured bank loans
– Unsecured bank loans
– Unsecured medium term notes due 2015
Total borrowings
Company
2011
$’000
2010
$’000
2011
$’000
2010
$’000
160,239
6,887
–
2,906
7,749
100,000
–
–
–
–
–
100,000
167,126
110,655
–
100,000
588,871
303,220
120,000
761,623
343,394
120,000
–
125,000
120,000
–
145,000
120,000
1,012,091
1,225,017
245,000
265,000
1,179,217
1,335,672
245,000
365,000
The carrying amounts of borrowings approximated their fair values.
(a) Interest rate risks
The exposure of the borrowings of the Group and of the Company to interest rate changes and the contractual repricing
dates at the balance sheet date are as follows:
Group
Less than one year
Between one and two years
Between two and five years
Over five years
Company
2011
$’000
2010
$’000
2011
$’000
2010
$’000
556,997
166,654
386,566
69,000
491,093
–
844,579
–
–
100,000
145,000
–
120,000
–
245,000
–
1,179,217
1,335,672
245,000
365,000
(b) Security granted
The Group’s secured borrowings are generally secured by mortgages on certain development properties (Note 14), investment
properties (Note 21) and property, plant and equipment (Note 22) and assignment of all rights, titles and benefits with
respect to the properties.
76
Notes to the Financial Statements
for the financial year ended  june  
25. DIVIDENDS
Group and Company
2011
2010
$’000
$’000
Dividends paid in respect of the preceding financial year
First and final dividend of 3 cents per share (2010: 3 cents per share)
Special dividend of 2 cents per share (2010: 1 cent per share)
23,374
15,583
23,332
7,778
38,957
31,110
The directors have recommended a first and final dividend in respect of the financial year ended 30 June 2011 of 3 cents per
share and a special dividend of 4 cents per share. These financial statements do not reflect these proposed dividends, which will
be accounted for in the shareholders’ equity as an appropriation of retained earnings in the financial year ending 30 June 2012.
The proposed first and final dividend and special dividend in respect of the financial year ended 30 June 2010 have been
accounted for in the shareholders’ equity as an appropriation of retained earnings in the current financial year.
26. OTHER NONCURRENT LIABILITIES
Group
Tenancy deposits
Loans from non-controlling interests
Retention payable
Others
Company
2011
$’000
2010
$’000
2011
$’000
2010
$’000
4,948
28,559
8,042
7,270
3,874
105,636
11,042
3,066
–
–
–
9,655
189
–
–
9,655
48,819
123,618
9,655
9,844
Loans from non-controlling interests are unsecured, have no fixed terms of repayment and are not expected to be repayable
within the next 12 months. Included in the loans from non-controlling interests are fixed interest rate amounts of
Nil (2010: $52.5 million).
The carrying amounts of other non-current liabilities approximated their fair values.
27. SHARE CAPITAL
Group and Company
Issued share capital
Number of ordinary shares
Amount
’000
$’000
2011
Beginning of financial year
Issue of shares on exercise of share options
793,889
38
838,200
50
End of financial year
793,927
838,250
2010
Beginning of financial year
Issue of shares on exercise of share options
793,460
429
837,690
510
End of financial year
793,889
838,200
77
Notes to the Financial Statements
for the financial year ended  june  
27. SHARE CAPITAL (continued)
The issued and paid up capital increased due to the issuance of 38,500 (2010: 428,300) new ordinary shares upon the exercise
of employee share options. The newly issued shares rank pari passu in all respects with the previously issued shares.
All issued ordinary shares are fully paid. There is no par value for these ordinary shares.
(a) The Wing Tai Holdings Limited (2001) Share Option Scheme (the “Scheme”)
The Scheme was approved and adopted by the members of the Company at an Extraordinary General Meeting (“EGM”)
held on 31 August 2001. The Scheme was terminated by the members of the Company at an EGM held on 30 October
2008 (without prejudice to the rights of holders of options thereunder in respect of options which have been granted).
Details of the movement in the options granted under the Scheme on the unissued ordinary shares of the Company during
the year were as follows:
As at
01.07.2010
Number
of options
exercised
Number
of options
forfeited
As at
30.06.2011
2011
02.11.2001
19.11.2004
30.09.2005
05.09.2006
06.09.2007
22,000
294,800
668,900
1,269,300
2,024,000
–
7,700
23,100
17,500
–
–
–
6,600
12,100
44,000
22,000
287,100
639,200
1,239,700
1,980,000
Total
4,279,000
48,300
62,700
4,168,000
As at
01.07.2009
Number
of options
exercised
2010
02.11.2001
19.11.2004
30.09.2005
05.09.2006
06.09.2007
22,000
480,700
808,900
1,419,000
2,079,000
–
185,900
132,300
110,100
–
–
–
7,700
39,600
55,000
22,000
294,800
668,900
1,269,300
2,024,000
Total
4,809,600
428,300
102,300
4,279,000
Date of grant
Date of grant
Number
of options
As at
forfeited 30.06.2010
Exercise
price ($)
0.616
0.849
1.300
1.645
3.136
Exercise
price ($)
0.616
0.849
1.300
1.645
3.136
Expiry
date
01.11.2011
18.11.2014
29.09.2015
04.09.2016
05.09.2017
Expiry
date
01.11.2011
18.11.2014
29.09.2015
04.09.2016
05.09.2017
Out of the outstanding options on 4,168,000 (2010: 4,279,000) shares, options on 4,168,000 (2010: 3,429,000) shares are
exercisable. Options exercised during the financial year resulted in 38,500 (2010: 428,300) new ordinary shares being issued
and 9,800 (2010: Nil) treasury shares being reissued at an average price of $1.35 (2010: $1.19) per share. The weighted
average share price at the time of exercise was $1.73 (2010: $1.84) per share.
(b) Share Plans
The Wing Tai Performance Share Plan (“Wing Tai PSP”) and the Wing Tai Restricted Share Plan (“Wing Tai RSP”) (collectively
referred to as the “Share Plans”) were adopted by the members of the Company at an EGM held on 30 October 2008.
78
Notes to the Financial Statements
for the financial year ended  june  
27. SHARE CAPITAL (continued)
(b) Share Plans (continued)
Wing Tai PSP
On 1 September 2010, awards were granted by the Company to qualifying employees pursuant to the Wing Tai PSP in
respect of 175,000 shares of the Company. Under the Wing Tai PSP, performance conditions are set over a three-year
performance period. A specified number of shares will be released by the Committee to the participants at the end of the
performance period, provided the threshold targets are achieved.
Details of the movement in the awards of the Company during the year were as follows:
As at
01.07.2010
Number of
shares granted
Number of
shares forfeited
As at
30.06.2011
2011
03.09.2009
01.09.2010
146,000
–
–
175,000
–
–
146,000
175,000
Total
146,000
175,000
–
321,000
As at
01.07.2009
Number of
shares granted
Number of
shares forfeited
As at
30.06.2010
–
163,000
17,000
146,000
Date of grant
Date of grant
2010
03.09.2009
Wing Tai RSP
On 1 September 2010, awards were granted by the Company to qualifying employees pursuant to the Wing Tai RSP in
respect of 2,125,000 shares of the Company. Under the Wing Tai RSP, performance conditions are set over a one-year
performance period. A specified number of shares will be awarded to eligible participants at the end of the performance
period depending on the extent of achievement of the performance conditions established. The shares have a vesting schedule
of three years. The participant will receive fully paid shares, without any cash consideration payable by the participant.
Details of the movement in the awards of the Company during the year were as follows:
As at
01.07.2010
Number of
shares granted
Number of
shares released
Number of
shares forfeited
As at
30.06.2011
2011
18.05.2009
03.09.2009
01.09.2010
1,474,900
1,257,000
–
–
–
2,125,000
632,100
377,100
–
–
9,100
22,000
842,800
870,800
2,103,000
Total
2,731,900
2,125,000
1,009,200
31,100
3,816,600
As at
01.07.2009
Number of
shares granted
Number of
shares released
Number of
shares forfeited
As at
30.06.2010
2010
18.05.2009
03.09.2009
2,246,000
-
1,344,000
663,300
-
107,800
87,000
1,474,900
1,257,000
Total
2,246,000
1,344,000
663,300
194,800
2,731,900
Date of grant
Date of grant
79
Notes to the Financial Statements
for the financial year ended  june  
27. SHARE CAPITAL (continued)
(b) Share Plans (continued)
The fair values of the awards granted pursuant to the Wing Tai PSP and the Wing Tai RSP on 1 September 2010
(2010: 3 September 2009) determined using the Monte Carlo simulation model was $0.2 million (2010: $0.2 million) and
$3.2 million (2010: $2.2 million) respectively. The significant inputs into the model were share price at grant date of
$1.61 (2010: $1.71) per share, standard deviation of expected share price returns of 58.3% (2010: 58.5%), dividend yield of
3.4% (2010: 2.1%) and annual risk-free interest rates of 0.4% [one-year], 0.5% [two-years] and 0.5% [three-years] (2010:
0.4% [one-year], 0.5% [two-years] and 0.6% [three-years]). The volatility measured at the standard deviation of expected
share price returns is based on the statistical analysis of monthly share prices over the past three years.
28. OTHER RESERVES
Group
Share-based payment reserve
Cash flow hedge reserve
Asset revaluation reserve
Share of capital reserves of associated
and joint venture companies
Currency translation reserve
Treasury shares reserve
Statutory reserve
(a) Share-based payment reserve
Beginning of financial year
Employee share plans and share option scheme:
– Value of employee services (Notes 6 and 27)
– Reissuance of treasury shares
Attributable to non-controlling interests
End of financial year
(b) Cash flow hedge reserve
Beginning of financial year
Fair value losses
Transfer to:
– development properties
– income statement
End of financial year
Company
2011
$’000
2010
$’000
2011
$’000
2010
$’000
9,829
(33,817)
89,294
7,705
(28,414)
82,181
9,359
(6,286)
–
7,433
(6,607)
7,429
18,840
(134,707)
(15,823)
972
20,476
(74,752)
(16,968)
972
–
–
(15,823)
–
–
–
(16,968)
–
(65,412)
(8,800)
(12,750)
(8,713)
7,705
5,641
7,433
5,383
3,413
(1,130)
(159)
2,819
(743)
(12)
3,056
(1,130)
–
2,793
(743)
–
9,829
7,705
9,359
7,433
(28,414)
(21,411)
(24,740)
(19,581)
(6,607)
(3,095)
(3,226)
(6,679)
3,382
12,626
4,509
11,398
–
3,416
–
3,298
(33,817)
(28,414)
(6,286)
(6,607)
80
Notes to the Financial Statements
for the financial year ended  june  
28. OTHER RESERVES (continued)
Group
2011
$’000
(c) Asset revaluation reserve
Beginning of financial year
82,181
Revaluation gains on property, plant
and equipment
10,466
Deferred income tax charged to equity
[Note 8(b)]
(1,894)
Transfer to retained earnings upon realisation
(317)
Reversal of impairment loss to income statement
(126)
Attributable to non-controlling interests
(1,016)
End of financial year
(d) Share of capital reserves of
associated and joint venture companies
Beginning of financial year
Share of capital reserves of:
– an associated company
– joint venture companies
Attributable to non-controlling interests
End of financial year
(e) Currency translation reserve
Beginning of financial year
Translation of financial statements of
foreign subsidiary, associated and
joint venture companies
Translation of foreign currency denominated
loans which form part of net investment in
subsidiary companies
Liquidation of joint venture companies
Liquidation of subsidiary companies
Attributable to non-controlling interests
End of financial year
(f ) Treasury shares reserve
Beginning of financial year
Reissuance of treasury shares
End of financial year
Company
2010
$’000
2011
$’000
2010
$’000
79,855
7,429
5,885
4,186
–
1,856
(1,547)
(879)
–
566
–
(7,429)
–
–
(312)
–
–
–
89,294
82,181
–
7,429
20,476
14,576
–
–
–
–
–
–
–
–
7,379
(8,775)
(240)
6,390
(282)
(208)
18,840
20,476
–
–
(74,752)
(55,512)
–
–
(61,783)
(3,329)
–
–
(7,302)
(819)
335
9,614
(10,407)
–
–
(5,504)
–
–
–
–
–
–
–
–
(134,707)
(74,752)
–
–
(16,968)
1,145
(17,711)
743
(16,968)
1,145
(17,711)
743
(15,823)
(16,968)
(15,823)
(16,968)
81
Notes to the Financial Statements
for the financial year ended  june  
28. OTHER RESERVES (continued)
Group
2011
$’000
(g) Statutory reserve
Beginning of financial year
Liquidation of a joint venture company
Transfer from retained earnings
Attributable to non-controlling interests
End of financial year
Total other reserves
Company
2010
$’000
2011
$’000
2010
$’000
972
(315)
–
315
774
–
264
(66)
–
–
–
–
–
–
–
–
972
972
–
–
(65,412)
(8,800)
(12,750)
(8,713)
Capital reserves of associated and joint venture companies arise from currency translation and other reserves which are
not distributable.
Included in the issued ordinary shares of the Company as at 30 June 2011 was 14,139,700 (2010: 15,158,700) treasury
shares held by the Company.
The Company reissued 1,019,000 (2010: 663,300) treasury shares during the financial year pursuant to the Wing Tai RSP
and share options. The purchase cost of the treasury shares reissued amounted to $1.1 million (2010: $0.7 million). The total
consideration for the treasury shares reissued which comprised the value of employee services amounted to $1.1 million
(2010: $0.7 million).
29. RETAINED EARNINGS
(a) Retained earnings of the Group are distributable except for accumulated retained earnings of associated and joint venture
companies amounting to $326.1 million (2010: $185.5 million), and the amount of $15.8 million (2010: $17.0 million)
utilised to purchase treasury shares. Retained earnings of the Company are distributable except for the amount of $15.8 million
(2010: $17.0 million) utilised to purchase treasury shares.
(b) Movement in retained earnings for the Company were as follows:
Company
Beginning of financial year
Net profit
Realisation of reserves
Dividends paid (Note 25)
End of financial year
2011
$’000
2010
$’000
73,928
55,501
7,429
(38,957)
73,242
31,796
–
(31,110)
97,901
73,928
82
Notes to the Financial Statements
for the financial year ended  june  
30. COMMITMENTS
(a) Capital commitments
Capital expenditures contracted for at the balance sheet date but not recognised in the financial statements, excluding those
relating to investments in joint venture companies (Note 19), are as follows:
Group
Commitments in respect of contracts placed
2011
$’000
2010
$’000
289,073
102,621
(b) Operating lease commitments – where the Group is a lessee
The Group leases various retail units under non-cancellable operating lease agreements. The leases have varying terms,
escalation clauses and renewal rights.
The future minimum lease payables under non-cancellable operating leases contracted for at the balance sheet date but not
recognised as liabilities, are as follows:
Group
Not later than one year
Between one and five years
2011
$’000
2010
$’000
39,903
55,988
36,080
65,518
95,891
101,598
(c) Operating lease commitments – where the Group is a lessor
The Group and the Company lease out office units and serviced apartments under non-cancellable operating lease agreements.
The leases have varying terms, escalation clauses and renewal rights.
The future minimum lease receivables under non-cancellable operating leases contracted for at the balance sheet date but not
recognised as receivables, are as follows:
Group
Not later than one year
Between one and five years
Company
2011
$’000
2010
$’000
2011
$’000
2010
$’000
23,338
33,192
18,245
12,986
–
–
1,175
826
56,530
31,231
–
2,001
83
Notes to the Financial Statements
for the financial year ended  june  
31. CONTINGENT LIABILITIES
The details and estimates of maximum amounts of contingent liabilities, excluding those relating to investment in an associated
company (Note 18), are as follows:
Group
Financial guarantees issued to banks for
credit facilities granted to:
– subsidiary companies
– joint venture companies
Company
2011
$’000
2010
$’000
2011
$’000
2010
$’000
–
8,280
–
16,912
221,120
8,280
251,938
16,912
8,280
16,912
229,400
268,850
The Company has given financial guarantees for all liabilities incurred under a tender bond facility of a subsidiary company
amounting to $15.0 million (2010: $15.0 million) granted by a bank to the subsidiary company.
32. FINANCIAL RISK MANAGEMENT
FINANCIAL RISK FACTORS
The Group’s activities expose it to market risk (including currency risk and interest rate risk), credit risk and liquidity risk. The
Group’s overall risk management strategy seeks to minimise any adverse effects from the unpredictability of financial markets
on the Group’s financial performance. After identifying and evaluating its exposure to the financial risks, the Group establishes
policies to monitor and manage these risks in accordance with its risk management philosophy. The Group uses financial
instruments such as currency forwards, cross currency swaps, interest rate swaps and foreign currency borrowings to hedge
certain financial risk exposures.
(a) Market risk
(i) Currency risk
The Group operates in Asia with dominant operations in Singapore, Malaysia, Hong Kong SAR and the People’s
Republic of China. Entities in the Group may transact in currencies other than their respective functional currencies.
Currency risk arises within entities in the Group when transactions are denominated in foreign currencies. To manage
the currency exposure, the Group enters into currency forwards with banks.
The Group also holds long-term overseas investments and its net assets are exposed to currency translation risk. The
Group uses natural hedging opportunities, like borrowing in the currency of the country in which these investments are
located whenever practicable. The exchange differences arising from such translations are captured under the currency
translation reserve. These translation differences are reviewed and monitored on a regular basis.
84
Notes to the Financial Statements
for the financial year ended  june  
32. FINANCIAL RISK MANAGEMENT (continued)
(a) Market risk (continued)
(i) Currency risk (continued)
The Group’s currency exposure is as follows:
2011
Financial assets
Cash and cash equivalents
Available-for-sale financial assets
Trade and other receivables
(current and non-current)
Other financial assets
Financial liabilities
Trade and other payables
Borrowings
Other financial liabilities
Net financial (liabilities)/assets
Net financial liabilities/(assets)
denominated in the respective
entities’ functional currencies
Firm commitments and highly
probable forecast transactions
in foreign currencies
Currency forwards and
cross currency swaps
Currency exposure
SGD
$’000
RM
$’000
USD
$’000
HKD
$’000
Other
$’000
Total
$’000
391,557
7,170
35,419
–
46,594
–
1,373
–
29,292
–
504,235
7,170
367,634
16,843
34,745
2,498
695
2
7,366
16
1
240
410,441
19,599
783,204
72,662
47,291
8,755
29,533
941,445
(174,593)
(931,962)
(33,037)
(36,290)
(90,035)
(4,249)
(3,006)
(30,895)
(4,263)
(1,801)
(126,325)
–
(6,648)
(222,338)
– (1,179,217)
–
(41,549)
(1,139,592)
(130,574)
(38,164)
(128,126)
(6,648)
(356,388)
(57,912)
9,127
(119,371)
22,885
(501,659)
334,917
59,810
26,342
(7,193)
(25,673)
388,203
–
–
(735)
–
(60,015)
–
3,100
60,015
(81,486)
1,898
37,834
(66,549)
(1,443,104)
(5,136)
(5,871)
6,970
10,070
(954)
(109,257)
85
Notes to the Financial Statements
for the financial year ended  june  
32. FINANCIAL RISK MANAGEMENT (continued)
(a) Market risk (continued)
(i) Currency risk (continued)
2010
Financial assets
Cash and cash equivalents
Available-for-sale financial assets
Trade and other receivables
(current and non-current)
Other financial assets
Financial liabilities
Trade and other payables
Borrowings
Other financial liabilities
Net financial (liabilities)/assets
Net financial liabilities/(assets)
denominated in the respective
entities’ functional currencies
Firm commitments and highly
probable forecast transactions
in foreign currencies
Currency forwards and
cross currency swaps
Currency exposure
SGD
$’000
RM
$’000
USD
$’000
HKD
$’000
Other
$’000
Total
$’000
467,670
7,170
36,466
–
51,890
–
1,108
–
36,920
–
594,054
7,170
239,667
12,248
22,524
3,010
1,256
116
2,059
16
4
502
265,510
15,892
726,755
62,000
53,262
3,183
37,426
882,626
(105,709)
(1,113,723)
(112,214)
(33,716)
(44,555)
(2,974)
(2,805)
(34,830)
(5,364)
(2,330)
(142,564)
–
(7,501)
(152,061)
– (1,335,672)
–
(120,552)
(1,331,646)
(81,245)
(42,999)
(144,894)
(7,501)
(604,891)
(19,245)
10,263
(141,711)
29,925
(725,659)
581,849
28,337
1,670
(1,744)
(32,867)
577,245
–
–
(2,433)
(68,009)
–
4,486
(91,051)
9,092
13,986
–
(1,608,285)
(4,247)
(6,680)
68,009
5,820
10,306
(75,446)
(1,369)
(144,788)
86
Notes to the Financial Statements
for the financial year ended  june  
32. FINANCIAL RISK MANAGEMENT (continued)
(a) Market risk (continued)
(i) Currency risk (continued)
The Company’s currency exposure is as follows:
2011
Financial assets
Cash and cash equivalents
Available-for-sale financial assets
Trade and other receivables
(current and non-current)
Other financial assets
Financial liabilities
Trade and other payables
Borrowings
Net financial assets
Net financial assets denominated in
the Company’s functional currency
Currency exposure
2010
Financial assets
Cash and cash equivalents
Available-for-sale financial assets
Trade and other receivables
(current and non-current)
Other financial assets
Financial liabilities
Trade and other payables
Borrowings
Other financial liabilities
Net financial assets/(liabilities)
Net financial assets denominated in
the Company’s functional currency
Currency exposure
SGD
$’000
RM
$’000
USD
$’000
HKD
$’000
Total
$’000
185,382
3,189
1,100
–
1,289
–
1,220
–
188,991
3,189
799,143
2,068
2,674
–
50,194
1
43,827
3
895,838
2,072
989,782
3,774
51,484
45,050
1,090,090
(120,679)
(245,000)
–
–
(4,623)
–
(36,826)
–
(162,128)
(245,000)
(365,679)
–
(4,623)
(36,826)
(407,128)
3,774
46,861
8,224
682,962
–
–
–
–
3,774
46,861
8,224
58,859
330,769
3,189
–
–
9
–
1,029
–
331,807
3,189
675,631
2,185
–
–
32,407
2
59,104
3
767,142
2,190
1,011,774
–
32,418
60,136
1,104,328
(96,890)
(365,000)
(189)
–
–
–
(3,539)
–
–
(61,503)
–
–
(161,932)
(365,000)
(189)
(462,079)
–
(3,539)
(61,503)
(527,121)
549,695
–
28,879
(1,367)
577,207
(549,695)
–
–
–
28,879
624,103
(624,103)
–
–
(1,367)
(624,103)
(549,695)
27,512
87
Notes to the Financial Statements
for the financial year ended  june  
32. FINANCIAL RISK MANAGEMENT (continued)
(a) Market risk (continued)
(i) Currency risk (continued)
If the RM, USD and HKD change against the SGD by 1% (2010: 1%) each with all other variables including tax rate
being held constant, the effects arising from the net financial asset/liability position will be as follows:
Increase/(Decrease)
Profit after tax
2011
2010
$’000
$’000
Group
RM against SGD
– strengthened
– weakened
19
(19)
91
(91)
USD against SGD
– strengthened
– weakened
386
(386)
164
(164)
HKD against SGD
– strengthened
– weakened
(665)
665
(754)
754
Company
RM against SGD
– strengthened
– weakened
38
(38)
USD against SGD
– strengthened
– weakened
469
(469)
289
(289)
HKD against SGD
– strengthened
– weakened
82
(82)
(14)
14
–
–
(ii) Cash flow and fair value interest rate risks
Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. Fair value interest rate risk is the risk that the fair value of a financial instrument will
fluctuate due to changes in market interest rates.
The Group’s and the Company’s exposure to cash flow interest rate risks arises mainly from floating rate borrowings. The
Group manages these cash flow interest rate risks by maintaining a prudent mix of fixed and floating rate borrowings
and using floating-to-fixed interest rate swaps.
88
Notes to the Financial Statements
for the financial year ended  june  
32. FINANCIAL RISK MANAGEMENT (continued)
(a) Market risk (continued)
(ii) Cash flow and fair value interest rate risks (continued)
The Group’s borrowings at floating rates on which effective hedges have not been entered into are denominated mainly
in SGD and RM. If the SGD and RM interest rates increase/decrease by 1% (2010: 1%) with all other variables
including tax rate being held constant, the profit after tax would have been lower/higher by $1.5 million (2010: $2.0
million) as a result of higher/lower interest expense on these borrowings. Other comprehensive income would have
been higher by $10.5 million (2010: $16.3 million) or lower by $10.5 million (2010: $16.4 million) mainly as a result of
higher/lower fair value of interest rate swaps designated as cash flow hedges of floating rate borrowings.
The Company’s borrowings at floating rates on which effective hedges have been entered into are denominated in SGD.
If the SGD interest rates increase/decrease by 1% (2010: 1%) with all other variables including tax rate being held
constant, other comprehensive income would have been higher/lower by $2.3 million (2010: $3.5 million) as a result of
higher/lower fair value of interest rate swaps designated as cash flow hedges of floating rate borrowings.
(b) Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to
the Group. The major classes of financial assets of the Group and of the Company are bank deposits and trade and other
receivables. The Group has no significant concentration of credit risk with any single entity. The Group has policies in place
to ensure that the sales of products and the rendering of services are to customers with acceptable credit standing. Derivative
counterparties and cash transactions are limited to high credit quality financial institutions. The Group has policies that
limit the amount of credit exposure to any financial institution.
As the Group and the Company do not hold any collateral, the maximum exposure to credit risk for each class of financial
instruments is the carrying amount of that class of financial instruments presented on the balance sheet, except as disclosed
in Note 31.
The credit risk for trade receivables is as follows:
Group
By business segments
Development properties
Investment properties
Retail
Others
Company
2011
$’000
2010
$’000
2011
$’000
2010
$’000
182,048
742
2,407
1,632
20,270
965
2,281
1,868
–
–
–
–
–
–
–
40
186,829
25,384
–
40
(i) Financial assets that are neither past due nor impaired
Bank deposits that are neither past due nor impaired are mainly deposits with banks with high credit-ratings assigned by
international credit-rating agencies. Trade and other receivables that are neither past due nor impaired are substantially
companies with a good collection track record with the Group.
(ii) Financial assets that are past due and/or impaired
There is no other class of financial assets that is past due and/or impaired except for trade and other receivables.
89
Notes to the Financial Statements
for the financial year ended  june  
32. FINANCIAL RISK MANAGEMENT (continued)
(b) Credit risk (continued)
The age analysis of trade receivables past due but not impaired is as follows:
Group
Past due less than 3 months
Past due 3 to 6 months
Past due over 6 months
Company
2011
$’000
2010
$’000
2011
$’000
2010
$’000
4,925
606
1,154
7,218
174
1,185
–
–
–
40
–
–
6,685
8,577
–
40
The carrying amount of trade and other receivables individually determined to be impaired and the movement in the related
allowance for impairment are as follows:
Group
Gross amount
Less: Allowance for impairment
Company
2011
$’000
2010
$’000
12,848
(12,848)
14,245
(14,245)
–
Beginning of financial year
Allowance (written back)/made
Allowance utilised
Currency translation differences
14,245
(1,239)
(6)
(152)
End of financial year
12,848
–
9,963
4,337
–
(55)
14,245
2011
$’000
2010
$’000
296,863
(173,203)
360,321
(164,435)
123,660
195,886
164,435
8,768
–
–
157,469
6,966
–
–
173,203
164,435
The impaired trade and other receivables arose mainly from loans to subsidiary and joint venture companies for which
recoverability is uncertain.
(c) Liquidity risk
The Group actively manages its debt maturity profile, operating cash flows and the availability of funding so as to ensure that
all refinancing, repayment and funding needs are met. The Group adopts prudent liquidity risk management by maintaining
sufficient cash and the availability of funding through an adequate amount of committed credit facilities. The Group raises
committed funding from both capital markets and financial institutions and prudently balances its portfolio with short
term funding so as to achieve overall cost effectiveness.
90
Notes to the Financial Statements
for the financial year ended  june  
32. FINANCIAL RISK MANAGEMENT (continued)
(c) Liquidity risk (continued)
The table below analyses the maturity profile of the Group’s and the Company’s financial liabilities (including derivative
financial liabilities) based on contractual undiscounted cash flows. Balances due within 12 months equal their carrying
amounts as the impact of discounting is not significant.
GROUP
2011
Net-settled interest rate swaps
Gross-settled cross currency swap
– Receipts
– Payments
Gross-settled currency forwards
– Receipts
– Payments
Trade and other payables
Borrowings
Other financial liabilities
2010
Net-settled interest rate swaps
Gross-settled cross currency swap
– Receipts
– Payments
Gross-settled currency forwards
– Receipts
– Payments
Trade and other payables
Borrowings
Other financial liabilities
Less than
1 year
$’000
Between 1
and 2 years
$’000
Between 2
and 5 years
$’000
Over 5
years
$’000
12,553
8,602
2,581
–
(1,915)
3,724
(1,909)
3,713
(62,182)
72,586
–
–
(10,070)
10,331
222,855
192,699
–
–
–
–
201,220
37,212
–
–
–
791,822
4,294
–
–
–
89,479
43
430,177
248,838
809,101
89,522
14,292
13,650
12,469
–
(2,120)
3,714
(2,097)
3,673
(73,674)
78,794
–
–
(10,409)
10,556
152,061
142,745
–
–
–
–
390,622
115,013
–
–
–
890,599
6,355
–
–
–
8,014
1,283
310,839
520,861
914,543
9,297
91
Notes to the Financial Statements
for the financial year ended  june  
32. FINANCIAL RISK MANAGEMENT (continued)
(c) Liquidity risk (continued)
Less than
1 year
$’000
Between 1
and 2 years
$’000
Between 2
and 5 years
$’000
3,520
163,860
5,846
3,494
–
105,823
166
–
152,708
173,226
109,317
152,874
3,333
163,676
109,663
–
3,342
–
26,365
110
3,562
–
259,196
79
276,672
29,817
262,837
COMPANY
2011
Net-settled interest rate swaps
Trade and other payables
Borrowings
2010
Net-settled interest rate swaps
Trade and other payables
Borrowings
Other financial liabilities
In addition to the above, the Group and the Company issued financial guarantees of $8.3 million (2010: $16.9 million) and
$229.4 million (2010: $268.9 million) respectively (Note 31).
(d) Capital risk
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern and to
maintain an optimal capital structure so as to maximise shareholder value. In order to maintain or achieve an optimal capital
structure, the Group may adjust the amount of dividend payment, return capital to shareholders, issue new shares, buy back
issued shares, obtain new borrowings or sell assets to reduce borrowings.
Management monitors capital based on debt-equity ratio. The debt-equity ratio is calculated as net debt divided by
shareholders’ equity. Net debt is calculated as borrowings less cash and cash equivalents.
Group
2011
$’000
Borrowings
Less: Cash and cash equivalents
Net debt
Shareholders’ equity
Debt-equity ratio
Company
2010
$’000
2011
$’000
2010
$’000
1,179,217
(504,235)
1,335,672
(594,054)
245,000
(188,991)
365,000
(331,807)
674,982
741,618
56,009
33,193
1,919,095
1,694,673
923,401
903,415
35%
44%
6%
4%
The Group and the Company are required by some banks to maintain a certain level of the debt-equity ratio. The Group and
the Company are in compliance with all externally imposed capital requirements for the financial years ended 30 June 2010
and 2011.
92
Notes to the Financial Statements
for the financial year ended  june  
32. FINANCIAL RISK MANAGEMENT (continued)
(e) Fair value measurements
The following table presents assets and liabilities measured at fair value and classified by level of the following fair value
measurement hierarchy:
(i) quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
(ii) inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices) (Level 2); and
(iii) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3)
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
GROUP
2011
Assets
Available-for-sale financial assets
–
–
7,170
7,170
Liabilities
Derivative financial instruments
–
34,116
–
34,116
2010
Assets
Available-for-sale financial assets
–
–
7,170
7,170
Liabilities
Derivative financial instruments
–
28,475
–
28,475
COMPANY
2011
Assets
Available-for-sale financial assets
–
–
3,189
3,189
Liabilities
Derivative financial instruments
–
6,286
–
6,286
2010
Assets
Available-for-sale financial assets
–
–
3,189
3,189
Liabilities
Derivative financial instruments
–
6,607
–
6,607
The fair value of interest rate and cross currency swaps is calculated as the present value of the estimated future cash
flows. The fair value of currency forwards is determined using quoted forward currency rates at the balance sheet date.
These instruments are classified as Level 2 and comprise derivative financial instruments. The valuation technique for
available-for-sale financial assets is based on unobservable inputs, as such, these assets are classified as Level 3. Any changes
to these unobservable inputs will not have a material impact on the fair value of these available-for-sale financial assets.
93
Notes to the Financial Statements
for the financial year ended  june  
32. FINANCIAL RISK MANAGEMENT (continued)
(f ) Financial instruments by category
The carrying amount of the different categories of financial instruments is as disclosed on the face of the balance sheets and
in Notes 11 and 16 to the financial statements, except for the following:
Group
Loans and receivables
Financial liabilities at
amortised cost
Company
2011
$’000
2010
$’000
2011
$’000
2010
$’000
934,275
875,456
1,086,901
1,101,139
1,443,104
1,608,285
407,128
527,121
33. RELATED PARTY TRANSACTIONS
In addition to the related party information disclosed elsewhere in the financial statements, the following significant transactions
took place between the Group and related parties during the financial year at terms agreed between the parties:
(a) Rendering of services
Group
Commission income received from joint venture companies
Management and service fees received from joint venture companies
Management fees paid to an associated company
Payments on behalf of joint venture companies
2011
$’000
2010
$’000
1,965
2,708
835
9,551
4,465
3,877
885
7,442
(b) Key management personnel compensation
Key management personnel compensation is as follows:
Group
Salaries and other short term employee benefits
Share-based payment
2011
$’000
2010
$’000
11,698
1,330
9,346
1,220
13,028
10,566
Included in the above is compensation to directors of the Company which amounted to $8.1 million (2010: $6.6 million).
94
Notes to the Financial Statements
for the financial year ended  june  
34. SEGMENT INFORMATION
The Group is organised into three main business segments – development properties, investment properties and retail. Other
operations of the Group comprise mainly garment manufacturing and investment holding, neither of which constitutes a
separately reportable segment. The segment information for the reportable segments is as follows:
2011
Development Investment
properties properties
$’000
$’000
Retail
$’000
Others
$’000
Group
$’000
Revenue
401,094
37,055
202,350
8,574
649,073
EBIT
Interest income
187,648
97,911
19,900
(32,233)
273,226
7,915
Operating profit
281,141
Finance costs
Share of profits/(losses) of associated and joint
venture companies
(39,868)
68,115
97,746
2,448
(4,088)
164,221
Profit before income tax
405,494
Income tax expense
(48,093)
Total profit
357,401
Segment assets
Investment in an associated company
Investments in joint venture companies
Due from associated and joint venture companies
1,886,061
166,523
141,119
178,546
730,709
352,669
12,743
6,563
66,609
4,923
23,573
1,221
120,945
29,912
12,334
25,625
2,804,324
554,027
189,769
211,955
2,372,249
1,102,684
96,326
188,816
3,760,075
Tax recoverable
5,758
Consolidated total assets
Segment liabilities
Borrowings
3,765,833
119,209
532,505
16,431
223,492
30,052
–
139,581
423,220
305,273
1,179,217
651,714
239,923
30,052
562,801
1,484,490
Current income tax liabilities
Deferred income tax liabilities
81,808
85,665
Consolidated total liabilities
1,651,963
Capital expenditure
Depreciation
625
255
12,524
1,816
10,066
5,549
2,110
3,480
25,325
11,100
95
Notes to the Financial Statements
for the financial year ended  june  
34. SEGMENT INFORMATION (continued)
2010
Development Investment
properties properties
$’000
$’000
Retail
$’000
Others
$’000
Group
$’000
Revenue
589,894
36,815
179,683
15,459
821,851
EBIT
Interest income
235,971
30,702
15,818
(37,981)
244,510
9,938
Operating profit
254,448
Finance costs
Share of profits/(losses) of associated and joint
venture companies
(31,295)
29,671
21,262
1,654
(917)
51,670
Profit before income tax
274,823
Income tax expense
(52,805)
Total profit
222,018
Segment assets
Investment in an associated company
Investments in joint venture companies
Due from associated and joint venture companies
1,958,955
187,147
106,891
187,448
542,643
300,108
10,357
7,884
50,516
2,932
15,277
954
236,275
24,475
16,932
22,197
2,788,389
514,662
149,457
218,483
2,440,441
860,992
69,679
299,879
3,670,991
Tax recoverable
2,967
Consolidated total assets
Segment liabilities
Borrowings
3,673,958
153,762
558,360
15,303
213,918
28,080
–
107,009
563,394
304,154
1,335,672
712,122
229,221
28,080
670,403
1,639,826
Current income tax liabilities
Deferred income tax liabilities
45,787
97,241
Consolidated total liabilities
1,782,854
Capital expenditure
Depreciation
525
201
1,222
1,690
6,628
6,833
3,568
3,425
11,943
12,149
96
Notes to the Financial Statements
for the financial year ended  june  
34. SEGMENT INFORMATION (continued)
The Group’s three main business segments operate in three main geographical areas – Singapore, Malaysia and the People’s
Republic of China (“PRC”)/Hong Kong SAR.
Revenue
Non-current assets
2011
2010
2011
2010
$’000
$’000
$’000
$’000
Singapore
Malaysia
PRC/Hong Kong SAR
487,025
161,149
899
667,926
145,099
8,826
1,018,880
106,658
575,072
917,117
106,119
533,323
649,073
821,851
1,700,610
1,556,559
35. COMPANIES IN THE GROUP
Information relating to the companies in the Group is given below, with the exception of inactive and dormant
companies. Singapore-incorporated subsidiary and joint venture companies are audited by PricewaterhouseCoopers LLP,
Singapore unless otherwise indicated.
Equity held
Country of
by the Group
incorporation/
Principal
2011
2010
Name of companies
place of business
activities
%
%
(a) Wing Tai Holdings Limited
(b) Subsidiary companies
Wing Tai Malaysia Berhad
(formerly known as DNP
Holdings Berhad)
!
Singapore-Quoted on
Singapore Exchange
Securities Trading Limited
Investment holding
n/a
n/a
Malaysia-Quoted on
Bursa Malaysia
Securities Berhad
Investment holding
60.4
55.5
Angel Wing (M)
Sdn. Bhd.
*, !
Malaysia
Property development
60.4
55.5
Angkasa Indah Sdn. Bhd.
*, !
Malaysia
Property development
60.4
55.5
British Virgin Islands
(“BVI”)/Hong Kong SAR
Investment holding
89.4
89.4
Malaysia
Property development
60.4
55.5
BVI/Hong Kong SAR
Investment holding
100
100
Brave Dragon Ltd
*, %
Chanlai Sdn Bhd
*, !
Crossbrook Group Ltd
#
DNP Clothing Sdn. Bhd.
*, !
Malaysia
Retailing of garments
60.4
55.5
DNP Fashion Sdn. Bhd.
*, !
Malaysia
Retailing of garments
60.4
55.5
DNP Hartajaya Sdn. Bhd.
*, !
Malaysia
Property development
60.4
55.5
DNP Jaya Sdn. Bhd.
*, !
Malaysia
Property investment
60.4
55.5
DNP Land Sdn. Bhd.
*, !
Malaysia
Property development
60.4
55.5
n/a: not applicable
97
Notes to the Financial Statements
for the financial year ended  june  
35. COMPANIES IN THE GROUP (continued)
Country of
incorporation/
place of business
Name of companies
Principal
activities
Equity held
by the Group
2011
2010
%
%
(b) Subsidiary companies (continued)
DNP Property
*, !
Management Sdn. Bhd.
Malaysia
Project management and
maintenance of properties
60.4
55.5
D & P-Ejenawa Sdn. Bhd.
Malaysia
Property development
60.4
55.5
Singapore
Retailing of garments
100
100
Fox Fashion Apparel
(S) Pte Ltd
*, !
*
Grand Eastern Realty
& Development Sdn. Bhd.
*, !
Malaysia
Property development
60.4
55.5
Harta-Aman Sdn. Bhd.
*, !
Malaysia
Property development
60.4
55.5
Hartamaju Sdn. Bhd.
*, !
Malaysia
Property development
60.4
55.5
Jiaxin (Suzhou) Property
Development Co., Ltd
*, >
PRC
Property development,
investment and management
75
75
Quality Frontier Sdn. Bhd.
*, !
Malaysia
Property development
60.4
55.5
Seniharta Sdn. Bhd.
*, !
Malaysia
Property investment
60.4
55.5
Sri Rampaian Sdn. Bhd.
*, !
Malaysia
Manufacture of
textile garments
60.4
55.5
Starpuri Development
Sdn. Bhd.
*, !
Malaysia
Property development
60.4
55.5
Suzhou Property
Development Pte Ltd
*
Singapore
Property development and
investment holding
75
75
Tanahnaga Sdn. Bhd.
*, !
Malaysia
Property development
60.4
55.5
*
Singapore
Investment holding
100
100
Wincharm Investment Pte Ltd *
Singapore
Investment holding
100
100
Wincheer Investment Pte Ltd *
Singapore
Property investment
and development
100
100
Windeal Investment Pte Ltd
Singapore/PRC
Property investment
100
100
Singapore
Investment holding
100
100
Winace Investment Pte Ltd
*
Wingold Investment Pte Ltd *
98
Notes to the Financial Statements
for the financial year ended  june  
35. COMPANIES IN THE GROUP (continued)
Equity held
by the Group
2011
2010
%
%
Name of companies
Country of
incorporation/
place of business
Principal
activities
(b) Subsidiary companies (continued)
Winglow Investment Pte. Ltd *
Singapore
Investment holding
100
100
Winmax Investment Pte Ltd
*
Singapore
Property investment
100
100
Winnervest Investment
Pte Ltd
*
Singapore
Property investment
and development
100
100
Winnorth Investment
Pte Ltd
*
Singapore
Property investment
and development
100
100
Winquest Investment
Pte Ltd
*
Singapore
Property investment
and development
60
60
Winrose Investment
Pte Ltd
*
Singapore
Property investment
and development
100
100
Winshine Investment
Pte Ltd
*
Singapore
Property investment
100
100
Winsland Investment
Pte Ltd
*
Singapore
Property investment
100
100
Winsmart Investment
Pte Ltd
*
Singapore
Property investment
and development
100
100
Winswift Investment
Pte Ltd
*
Singapore
Investment holding
60.4
55.5
Wintrust Investment
Pte Ltd
*
Singapore
Property investment and
development and
investment holding
100
100
Winworth Investment
Pte Ltd
*
Singapore
Property investment
and development
85
85
Malaysia
Property investment
60.4
55.5
Wing Mei (M) Sdn. Bhd.
*, !
Wing Tai (China)
Investment Pte. Ltd.
*
Singapore
Investment holding
100
100
Wing Tai Branded
Lifestyle Pte. Ltd.
*
Singapore
Café operator
100
100
Wing Tai Clothing Pte Ltd
*
Singapore
Retailing of garments
100
100
99
Notes to the Financial Statements
for the financial year ended  june  
35. COMPANIES IN THE GROUP (continued)
Name of companies
(b) Subsidiary companies (continued)
Wing Tai Investment
& Development
Pte Ltd
Wing Tai Investment
Management Pte Ltd
*
Wing Tai Land Pte Ltd
Wing Tai Property
Management Pte Ltd
*
Wing Tai Retail Pte. Ltd.
Equity held
by the Group
2011
2010
%
%
Country of
incorporation/
place of business
Principal
activities
Singapore
Investment holding
100
100
Singapore
Management of
investment properties
100
100
Singapore
Investment holding
100
100
Singapore
Project management and
maintenance of properties
100
100
Singapore
Investment holding
100
100
Wing Tai Retail
Management Pte. Ltd.
*
Singapore
Management of
retail operations
100
100
Yoshinoya (S) Pte Ltd
*
Singapore
Restaurant operator
100
100
33.9
(c) Associated company
Wing Tai Properties
Limited
*, %
Bermuda-Quoted
on The Stock
Exchange of Hong
Kong Limited/
Hong Kong SAR
Property development,
33.8
property investment and
management, hospitality
investment and management,
garment manufacturing,
branded products distribution
and investing activities
(d) Joint venture companies
Choice Homes Beta
Pte Ltd
*, ^
Singapore
Property investment
and development
30
30
*
Singapore
Property investment
and development
40
40
*, &
Singapore
Property investment
and development
50
50
*
Singapore
Property investment
and development
40
40
Burlington Square
Investment Pte Ltd
*, &
Singapore
Property investment
50
50
Burlington Square
Properties Pte Ltd
*, &
Singapore
Property trading
50
50
Orwin Development
Limited
Summervale Properties
Pte Ltd
Winpride Investment
Pte. Ltd.
100
Notes to the Financial Statements
for the financial year ended  june  
35. COMPANIES IN THE GROUP (continued)
Name of companies
(d) Joint venture companies (continued)
G2000 Apparel (S)
*
Pte Ltd
Equity held
by the Group
2011
2010
%
%
Country of
incorporation/
place of business
Principal
activities
Singapore
Retailing of garments
45
45
Uniqlo (Singapore)
Pte. Ltd.
*, ~
Singapore
Retailing of garments
49
49
Uniqlo (Malaysia)
Sdn. Bhd.
*, !
Malaysia
Retailing of garments
27.2
–
* Held by Group companies.
! Audited by Ernst and Young, Malaysia.
# These companies are not required to be audited by law in the country of incorporation.
% Audited by PricewaterhouseCoopers, Hong Kong.
& Audited by KPMG LLP, Singapore.
^ Audited by Deloitte & Touche LLP, Singapore.
~ Audited by Ernst and Young LLP, Singapore.
> Audited by RSM, China.
In accordance to Rule 716 of the Singapore Exchange Securities Trading Limited – Listing Rules, the Audit Committee
and the Board of Directors of the Company confirmed that they are satisfied that the appointment of different auditors
for its significant subsidiary and associated companies would not compromise the standard and effectiveness of the audit of
the Company.
36. EVENTS OCCURRING AFTER BALANCE SHEET DATE
On 5 August 2011, DNP Land Sdn. Bhd., a subsidiary company of the Group, has entered into a conditional Sale and Purchase
Agreement with Aeon Co. (M) Bhd for the disposal of 2 pieces of freehold land under GRN 83570, Lot No. 1379 and GRN
3282, Lot 14344 of Mukim 15, Daerah Seberang Perai Tengah, Pulau Pinang, Malaysia with a total land area of approximately
78,000 square metres for a total cash consideration of $20.4 million (RM50.1 million).
37. NEW OR REVISED ACCOUNTING STANDARDS AND INTERPRETATIONS
Below are the mandatory standards and amendments to existing standards that have been published, and are relevant for the
Group’s accounting periods beginning on or after 1 July 2011 or later periods and which the Group has not early adopted:
(a) Amendments to FRS 24 Related Party Disclosures (effective for annual periods beginning on or after 1 January 2011)
Amendments to FRS 24 clarifies and simplifies the definition of a related party. However, the revised definition of a related
party will mean that some entities will have more related parties and will be required to make additional disclosures.
Management is currently considering the revised definition to determine whether any additional disclosures will be required.
It is therefore not possible to disclose the financial impact, if any, of the amendment on the related party disclosures.
101
Notes to the Financial Statements
for the financial year ended  june  
37. NEW OR REVISED ACCOUNTING STANDARDS AND INTERPRETATIONS (continued)
(b) INT FRS 115 Agreements for the Construction of Real Estate (effective for annual periods beginning on or after 1 January 2011)
On 26 August 2010, the Accounting Standards Council issued INT FRS 115 with an accompanying note that explains the
application of the Interpretation to property development sales in Singapore by considering the Singapore legal framework.
INT FRS 115 supersedes RAP 11 Pre-Completion Contracts for the Sale of Development Property and becomes effective for
annual periods beginning on or after 1 January 2011. When adopted, INT FRS 115 is to be applied retrospectively.
INT FRS 115 clarifies when revenue and related expenses from a sale of real estate unit should be recognised if an
agreement between a developer and a buyer is reached before the construction of real estate is completed. INT FRS
115 determines that contracts which are not classified as construction contracts in accordance with FRS 11 can only
be accounted for using the percentage-of-completion (“POC”) method if the entity continuously transfers to the buyer
control and the significant risks and rewards of ownership of the work in progress in its current state as construction
progresses. For residential projects under deferred payment scheme in Singapore and overseas residential projects, the
revenue and related expenses will be accounted for under the completion of construction (“COC”) method as stipulated in
INT FRS 115, where applicable.
The Group’s current accounting policy for all residential property sales is to recognise revenue using the POC method as
construction progresses. When the Group applies INT FRS 115 in 2012 retrospectively, the 2011 comparatives for revenue
and net profit are expected to increase by approximately $102.0 million and $57.1 million respectively. The development
properties as at 30 June 2011 is expected to decrease by approximately $36.5 million.
RAP 11 Pre-Completion Contracts for the Sale of Development Property
For the current financial year, RAP 11 is still applicable in Singapore. In the RAP, it is mentioned that a property
developer’s sales and purchase agreement is not a construction contract as defined in FRS 11 Construction Contract and
the POC method of recognising revenue, which is allowed under FRS 11 for construction contract, may not be applicable
for property developers. The relevant standard for revenue recognition by property developers is FRS 18 Revenue, which
addresses revenue recognition generally for all types of entities. However, there is no clear conclusion in FRS 18 whether
the POC method or the COC method is more appropriate for property developers.
The Group uses the POC method for recognising revenues from partially completed residential projects which are held for
sale. Had the COC method been adopted, the impact on the financial statements of the Group will be as follows:
Group
2011
$’000
(Decrease)/increase in:
– opening retained earnings
– revenue recognised for the financial year
– net profit attributable to equity holders of the Company
– carrying value of development properties
– carrying value of investments in associated and joint venture companies
(100,398)
117,404
13,248
(36,498)
(69,375)
2010
$’000
(148,678)
121,415
48,280
(108,858)
(18,351)
102
Notes to the Financial Statements
for the financial year ended  june  
37. NEW OR REVISED ACCOUNTING STANDARDS AND INTERPRETATIONS (continued)
(c) Amendments to FRS 12 Income Taxes (effective for annual periods beginning on or after 1 January 2012)
The amendment introduces a presumption that an investment property is recovered entirely through sale. Accordingly,
unless the presumption is rebutted, the measurement of the deferred tax liability or deferred tax asset shall reflect the
tax consequences of recovering the carrying amount of the investment property entirely through sale. This presumption
is rebutted if the investment property is depreciable and is held within a business model whose objective is to consume
substantially all of the economic benefits embodied in the investment property over time, rather than through sale.
Currently, the Group recognises deferred tax liability on its investment properties on the basis that the carrying amount of
its investment properties are recovered through use.
Management is still in the process of assessing the amendment to FRS 12 to determine the impact on the financial
statements and whether additional disclosures will be required. It is therefore not possible to disclose the financial impact
of the amendment to FRS 12.
38. AUTHORISATION OF FINANCIAL STATEMENTS
These financial statements have been authorised for issue in accordance with a resolution of the Board of Directors on
20 September 2011.
Shareholding Statistics
103
as at  september  
SHARE CAPITAL
No. of Issued Shares:
No. of Issued Shares (excluding Treasury Shares):
No./percentage of Treasury Shares:
Class of Shares:
Voting Rights (excluding Treasury Shares):
793,927,260
780,791,660
13,135,600 (1.68%)
Ordinary Shares
1 vote per share
DISTRIBUTION OF SHAREHOLDERS
Size of Shareholdings
No. of Shareholders
%
No. of Shares
%
1 to 999
1,000 to 10,000
10,001 to 1,000,000
1,000,001 and above
454
10,702
2,752
31
3.26
76.78
19.74
0.22
147,912
45,018,506
87,536,072
648,089,170
0.02
5.77
11.21
83.00
Total
13,939
100.00
780,791,660
100.00
No. of Shares
%
Wing Sun Development Private Limited
Citibank Nominees Singapore Pte Ltd
DBS Nominees Pte Ltd
Winlyn Investment Pte Ltd
HSBC (Singapore) Nominees Pte Ltd
DBSN Services Pte Ltd
UOB Kay Hian Pte Ltd
United Overseas Bank Nominees Pte Ltd
Empire Gate Holdings Limited
Raffles Nominees (Pte) Ltd
Liu Hing Yuen Patricia
DBS Vickers Securities (Singapore) Pte Ltd
OCBC Nominees Singapore Pte Ltd
Winway Investment Pte Ltd
Mayban Nominees (Singapore) Pte Ltd
OCBC Securities Private Ltd
Kim Eng Securities Pte Ltd
Morgan Stanley Asia (Singapore) Securities Pte Ltd
CIMB Securities (Singapore) Pte Ltd
Hong Leong Finance Nominees Pte Ltd
222,235,490
85,714,399
76,864,376
72,717,436
49,875,621
23,716,562
22,574,130
15,312,540
12,119,572
9,252,586
8,293,069
6,132,312
5,389,933
3,529,166
3,315,603
3,101,338
3,087,500
2,393,072
2,279,275
2,188,000
28.46
10.98
9.84
9.31
6.39
3.04
2.89
1.96
1.55
1.19
1.06
0.79
0.69
0.45
0.42
0.40
0.40
0.31
0.29
0.28
Total
630,091,980
80.70
TWENTY LARGEST SHAREHOLDERS
Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
PERCENTAGE OF SHAREHOLDING HELD IN THE HANDS OF PUBLIC
As at 9 September 2011, approximately 52.17% of the issued ordinary shares of the Company are held by the public. Rule 723 of the
Listing Manual of the Singapore Exchange Securities Trading Limited has accordingly been complied with.
104
Shareholding Statistics
as at  september  
SUBSTANTIAL SHAREHOLDERS AS SHOWN IN THE REGISTER OF SUBSTANTIAL SHAREHOLDERS
Name
Cheng Wai Keung
Edmund Cheng Wai Wing
Christopher Cheng Wai Chee
Edward Cheng Wai Sun
Deutsche Bank International Trust Co. (Cayman) Limited
Deutsche Bank International Trust Co. ( Jersey) Limited
Wing Sun Development Private Limited
Wing Tai Asia Holdings Limited
Winlyn Investment Pte Ltd
Terebene Holdings Inc
Metro Champion Limited
European Investors, Inc.
Interest (No. of Ordinary Shares)
326,831,5641
310,601,6642
307,194,9983
307,072,4984
307,072,4984
307,072,4984
222,235,490
234,355,0625
72,717,436
72,717,4366
72,717,4367
39,801,470
1 Includes 326,831,564 shares beneficially owned by Wing Sun Development Private Limited, Winlyn Investment Pte Ltd,
Winway Investment Pte Ltd, Empire Gate Holdings Limited and Wilma Enterprises Limited.
2 Includes 310,601,664 shares beneficially owned by Wing Sun Development Private Limited, Winlyn Investment Pte Ltd,
Winway Investment Pte Ltd and Empire Gate Holdings Limited.
3 Includes 307,072,498 shares beneficially owned by Wing Sun Development Private Limited, Winlyn Investment Pte Ltd and
Empire Gate Holdings Limited and 122,500 shares owned by a nominee, DBS Vickers Securities (S) Pte Ltd.
4 Includes 307,072,498 shares beneficially owned by Wing Sun Development Private Limited, Winlyn Investment Pte Ltd and
Empire Gate Holdings Limited.
5 Includes 234,355,062 shares beneficially owned by Wing Sun Development Private Limited and Empire Gate Holdings Limited.
6 Shares beneficially owned by Winlyn Investment Pte Ltd in which Terebene Holdings Inc is deemed to have an interest.
7 Shares beneficially owned by Winlyn Investment Pte Ltd in which Metro Champion Limited is deemed to have an interest.
TO GIVE IS TO GROW.
Integral to Wing Tai’s culture is its
care for the community, with an
appreciation for heritage, design
and the arts. Ever attentive to the
harmony between people and their
environments, Wing Tai believes in
giving back.
Its commitment to building trust
and long-term winning relationships
has inspired partners to join Wing Tai
in enabling individuals to live up to
the unbounded potential of the
community.
A heart for giving, a flair for living.
Helios Residences as captured in light, shadow and form.