wing tai holdings limited annual report 2012 annual report 2012... · 2019-01-16 · helios...

The Value of TenacityAnnual Report 2012

Wing

Tai Ho

lding

s Limited

Annual R

epo

rt 2012

The front cover shows the architectural lines of Foresque Residences, Wing Tai’s new residential development that is set above the largest expanse of nature in the Upper Bukit Timah precinct. Designed by Arc Studio Architecture + Urbanism.

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Contents

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chairman’s me s sage

property

hospitality

retail

c orporate data

board of directors

key management

c orporate g overnance

awards

calendar of events

financial reports

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chairman’smessage

overviewThe Singapore economy grew by 4.9% in 2011. On a quarter-on-quarter seasonally-adjusted annualised basis, the economy contracted by 0.7% in the second quarter of 2012, reversing the 9.5% growth in the previous quarter. In view of the uncertainties in global economic conditions, the Ministry of Trade and Industry has narrowed the economic growth forecast for 2012 from 1% - 3% to 1.5% - 2.5%.

For the whole of 2011, 15,904 new residential units were sold in Singapore; this was a dip of 2.4% compared with 2010. While many analysts predicted that buying sentiment would be moderate in 2012, there was a record 11,928 new residential units sold in the first half of 2012, compared to 8,039 units sold in the first half of 2011. The URA residential property price index increased by 0.4% in the second quarter of 2012, as compared to the 0.1% decrease in the previous quarter.

group performanceFor the financial year ended 30 June 2012, the Group recorded a total revenue of S$624.9 million. This was 17% lower than the S$751.1 million revenue recorded in the previous year, as Helios Residences obtained its Temporary Occupation Permit in January 2011 and the revenue for all the units sold under the deferred payment scheme had been fully recognised.

Revenue from development properties for the current year was mainly attributable to the additional units sold in Helios Residences and Belle Vue Residences as well as the progressive sales recognised from Foresque Residences and L’Viv in Singapore.

The Group’s net profit attributable to shareholders for the current year is S$242.2 million, a decrease of 35% over the net profit of S$371.4 million recorded in the previous year. Without the adoption of the Interpretations of Financial Reporting Standards (INT FRS)

Above: Seeds, by Andrew Mckeown, is a cast iron installation commissioned for Helios Residences.

Wing Tai Annual Report 2012

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115, the Group’s underlying net profit (excluding the fair value gains on investment properties) is S$169.5 million in the current year, as compared to the S$182.2 million reported in the previous year, a drop of 7%.

The Group’s net asset value per share as at 30 June 2012 was S$2.69 as compared to S$2.43 as at 30 June 2011. The Group’s net gearing ratio has been reduced from 0.36 times as at 30 June 2011 to 0.18 times as at 30 June 2012.

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 463 residential units in Singapore and Malaysia, with a total sales value of S$725 million. On land acquisition, the Group continues to be prudent and strategic, and aim for value. The Group shall continue to build its land bank with selective acquisitions. In Singapore, plans are underway to redevelop the land at 105 and 107 Tampines Road into a freehold residential development. Designed by multiple award-winning architects Arc Studio Architecture + Urbanism, the development comprising 337 residential units and 1 commercial unit is targeted for launch in early 2013.

The Group’s investment properties comprising commercial developments and serviced apartments continued to do well, with a revenue of S$37.9 million. Lanson Place Bukit Ceylon Serviced Residences in Kuala Lumpur is scheduled for opening by mid 2013.

The retail division also performed well, achieving an overall sales growth of 22% for all brands under the Group’s management, amidst a challenging retail environment. The Group’s retail square footage has expanded, exceeding 450,000 square feet in over 200 stores across Singapore and Malaysia.

prospectsWith the imposition of the Additional Buyer’s Stamp Duty (ABSD) in December 2011, the luxury and high-end property market appears to be further consolidating. The Group will continue to grow its business with prudence and expediency. It will continue to watch the market closely and seize opportunities to expand the business. It will continue to invest in its human capital and long-term growth capabilities. While greater challenges are expected ahead, the Group shall respond with keen vigilance and tenacity.

appreciationI would like to thank our shareholders, customers, bankers and business partners for their unstinting support, and members of the Board for their invaluable insight and counsel. I also wish to thank the management and staff for their tireless energy and determination to drive positive results, and for keeping our brand strong.

We shall look forward to an exciting and progressive year, as we prepare to celebrate the Group’s 50th founding anniversary next year.

CHENG WAI KEUNGChairman18 September 2012

“On land acquisition, the Group continues to be prudent and strategic, and aim for value. The Group shall continue to build its land bank with selective acquisitions.”

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property

singaporeAs of 30 June 2012, the multiple award-winning Belle Vue Residences, a 176-unit freehold development designed by master architect Toyo Ito, was 88% (154 units) sold. Ascentia Sky, a 373-unit leasehold development at Alexandra View was 98% sold, with 364 units sold. Topping out of the development was held in May 2012 and Temporary Occupation Permit is expected to be obtained in the last quarter of 2012.

Helios Residences, a 140-unit freehold condominium in Singapore’s prime Orchard/Cairnhill area sold 90 units. Units at the development were handled over to homebuyers from July 2011. L’Viv, a 147-unit freehold development at Newton Road, was 82% sold, with 120 units sold. The new sales gallery of the development was available at Winsland House I, to facilitate buyer interest in viewing the finishes and architecture model of the development. Floridian, a 336-unit freehold development at Bukit Timah was over 99% sold, with two units remaining for sale.

Foresque Residences, a 496-unit leasehold development at Petir Road, continues to receive good response from homebuyers for the releases of Phase 1 and 2 totaling 404 units. It was 59% (238 units) sold.

Above: The iconic clubhouse of Belle Vue Residences makes a lasting impression.


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Construction of Nouvel 18 at Anderson Road and Le Nouvel Ardmore at Ardmore Park, both designed by eminent Pritzker Prize laureate Jean Nouvel, is underway. Topping out of Nouvel 18 was held in May 2012 and Temporary Occupation Permit is expected in 2013.

The lingering economic uncertainty has adversely affected the demand for office space as companies hold off expansion plans. Large new office supply coupled with weak demand in the first half of 2012 have led to a continued drop in occupancy and downward pressure on office rents islandwide. Nonetheless, the Group’s investment properties fared well and achieved average occupancy of 93% for Winsland House I and Winsland House II as of 30 June 2012.

Sixty-six office units in Burlington Square, a mixed development owned by Wing Tai and a joint venture partner, were sold to Guthrie and Sun Venture for S$89.3 million in May 2012; the sale was completed in July 2012.

malaysiaThe Group’s property business activities in Malaysia are conducted through its subsidiary company, Wing Tai Malaysia Berhad.

As of 30 June 2012, Verticas Residences, a 423-unit freehold development at Bukit Ceylon in Kuala Lumpur, was 69% (293 units) sold. The development is currently under construction, with completion expected in the last quarter of 2012. Nobleton Crest at U-Thant, which comprises 3 blocks of 5-storey residential units located within the prestigious Ampang and U-Thant vicinity, is currently under construction, with completion targeted for early 2013. Sales launch of the development is tentatively planned in end 2012. Le Nouvel@KLCC, a high-end twin-tower freehold development at Jalan Ampang is currently under construction, with expected completion in the last quarter of 2014.

The Bandar Sunway site, a 9.4-acre land planned for 76 units of 3-storey semi-detached houses, is awaiting layout approval from the Malaysian authorities, with sales launch tentatively planned in early 2013. At Jalan Langgak Golf site, layout submission was made to the Malaysian authorities in July 2012, for 28 units of high-end condominium and 6 units of 4-storey villas in a 2.14-acre plot.

In Penang, Phase 2 of Taman BM Utama which comprises 215 units of 2-storey terrace and semi-detached houses, was completed and 96% sold; while 7 units of 2-storey commercial shops were completed and 67% leased. Phase 3 which comprises 141 units of 2-storey and 3-storey terrace houses was completed and 66% sold.

Right: Nobleton Crest, nestled in the diplomatic enclave of Kuala Lumpur, encapsulates heritage in modernity.

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Above: Seymour’s expansive lobby beautifully balances classic and modern elegance.

Jesselton Hills, a high-end freehold development in Bukit Mertajam was officially launched in August 2011. Phase 1 which comprises 143 units of 2-storey and 3-storey semi-detached houses, and bungalows was 53% completed and 58% sold. Impiana Commercial Hub, which comprises 2-storey and 3-storey shop offices along Impiana Boulevard and Impiana Avenue were 99% and 98% completed, respectively.

hong kongThe Group’s property interests in Hong Kong are represented by investment in its associated company, Wing Tai Properties Limited.

In May 2012, the Group announced a series of transactions, aiming to streamline the corporate structure of Wing Tai Properties and reduce discount on the asset portfolio previously held by Winsor Properties Holdings Limited, and to enhance the Group’s financial strength.

Seymour, a 82-unit high-end development at Seymour Road in Mid-levels obtained its Occupation Permit in the second half of 2011 and was 85% sold. Over 90% of the pre-sold units were handed over to homebuyers in the first quarter of 2012. Forfar, a 43-unit development at Forfar Road in Kowloon, was fully sold.

The Warren, the Group’s wholly-owned premier development in Tai Hang, Causeway Bay, was launched for pre-sale in November 2011, and was 55% sold with completion scheduled for 2014. At Providence Bay at Tai Po Town, Lot No. 186 was launched for pre-sale in November 2011, and was over 45% sold while applications for presale consent were submitted for Lot Nos. 187 and 188. The development is expected to be completed in phases between 2012 and 2013.

The residential development at No. 1-2 Coronation Terrace in Mid-Levels West, a sought-after Hong Kong address, was named The Pierre in February 2012. The high-end development offers 77 apartment units and has a gross floor area of approximately 40,000 square feet. Foundation work is progressing, with completion scheduled for 2014. In April 2011, the Group formed a 50-50 joint venture with the Nan Fung Group to acquire a premier residential development site at Ko Shan Road, Hung Hom. The site, which has a gross floor area of approximately 160,000 square feet, is scheduled for completion in 2015.

Landmark East, a Grade-A commercial twin-tower building in Kowloon East recorded near-full occupancy, with spot rent continuing to rise due to its market positioning in the Kowloon East vicinity and limited availability of high quality commercial properties.

chinaThe Group’s property business activities in China are conducted through its subsidiary companies, Jiaxin (Suzhou) Property Development Co., Ltd and Wing Tai (China) Investment Pte Ltd.

At The Lakeview in the Suzhou Industrial Park, Phase 3, which comprises 190 units in two residential towers, is scheduled to receive Temporary Occupation Permit in end 2012. Show flats and sales gallery of the two towers were completed in April 2012.

At the Sino-Singapore Guangzhou Knowledge City, Horizon Lakeview will be the first residential property development in the Knowledge City. Developed by the Group with Singbridge International Singapore Pte Ltd, construction of the landmark development is expected to commence in the last quarter of 2012.

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The Group’s hospitality business under the Lanson Place chain of branded hospitality services continues to grow steadily, in terms of both occupancy and rental rate.

In Singapore, Lanson Place Winsland Serviced Residences achieved healthy occupancy of 85%. In Malaysia, Ambassador Row Serviced Suites and Kondominium No. 8 did relatively well, with Lanson Place Bukit Ceylon Serviced Residences tentatively scheduled for opening in first half of 2013.

In Hong Kong, Lanson Place Hotel has continued to be popular with travellers, and won prestigious awards viz. the “2011 China Best Design Hotels Award – The Best Urban Hotel” in January 2012; as well as “Asia’s Leading Boutique Hotel” and “Hong Kong’s Leading Hotel” in October 2011 at the World Travel Awards 2011.

In China, both Lanson Place Jinlin Tiandi Serviced Residences in Shanghai and Lanson Place Central Park Serviced Residences in Beijing achieved high occupancy of over 90%.

Lanson Place also secured 10-year management contracts to manage two high-end serviced residences viz. Lu Xiang Yuan Serviced Suites in Shanghai and Lanson Place Xanadu Serviced Residences in Beijing in October 2011 and February 2012, respectively, with both residences targeted for opening by 2013. Including these two contracts, Lanson Place has a total of 10 management contracts in Hong Kong, China and Southeast Asia.

The Group will continue on its path to expand its hospitality business in China and in key Asian gateway cities.

“Lanson Place also secured 10-year management contracts to manage two high-end serviced residences viz. Lu Xiang Yuan Serviced Suites in Shanghai and Lanson Place Xanadu Serviced Residences in Beijing in October 2011 and February 2012, respectively, with both residences targeted for opening by 2013.”

hospitality

Above: Lanson Place Winsland offers travellers the luxury of leisured living and discreet service.

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The retail environment remains highly competitive and challenging due to high operating costs arising from rental, tight labour and high inflation. There is also an apparent air of optimism in Asia with influx of foreign owner operated brands into Singapore in 2011.

Embracing a Customer Centricity Business Focus, the Group’s retail division has its key business strategy to defend and grow its market share. It won two top industry awards under Wing Tai Clothing in October 2011, viz. the Annual Business Awards, a second win in four years organised by the British Chamber of Commerce in the category of Customer Service Excellence; as well as Best Customer Service Professionals (Retail) at the Singapore Experience Awards organised by the Singapore Tourism Board. This reinforces Wing Tai’s leadership in the area of customer service in the industry.

retail

Above: Winning styles of Dorothy Perkins and Karen Millen.


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The retail division has also increased its investment and resources to enhance its customer engagement program on multi-prongs digital platform. This allows the company to respond to expectations of well-informed consumers, who are accustomed to multi-channel platforms of engagement.

As of 30 June 2012, the Group’s retail square footage exceeded 450,000 square feet, with over 200 stores across Singapore and Malaysia. Uniqlo, Japan’s No. 1 casual wear brand, continues to expand its presence in Singapore, with the opening of its sixth store at Parkway Parade in April 2012; and its seventh and largest store at Bugis+ in June 2012. Laline, a leading bath and body care line, was launched at Marina Square in Singapore in April 2012. The brand complements the Group’s existing portfolio of fashion and lifestyle brands and promotes a pampering, healthy lifestyle.

The retail division performed well, achieving an overall sales growth of 22% for all brands under the Group’s management. This was largely accrued to an increased contribution from Uniqlo in Singapore and Malaysia, as well as a strong showing from its Malaysian business.

“ As of 30 June 2012, the Group’s retail square footage exceeded 450,000 square feet, with over 200 stores across Singapore and Malaysia.”

Exciting fashion and lifestyle brands.Clockwise: Miss Selfridge, Topman, Laline

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board of directorsExecutive Cheng Wai Keung Chairman/Managing Director

Edmund Cheng Wai Wing Deputy Chairman/Deputy Managing Director

Tan Hwee Bin Executive Director

Non-Executive Boey Tak Hap Independent

Cheng Man Tak

Tan Sri Dato’ Mohamed Noordin bin Hassan Independent

Lee Han Yang Independent

Lee Kim Wah Independent

Loh Soo Eng Independent

Phua Bah Lee Independent

Paul Tong Hon To Independent

audit committeePaul Tong Hon To Chairman

Boey Tak Hap

Lee Han Yang

Phua Bah Lee

nominatingcommitteeLee Han Yang Chairman

Cheng Wai Keung

Tan Sri Dato’ Mohamed Noordin bin Hassan

Loh Soo Eng

remunerationcommitteeLoh Soo Eng Chairman

Boey Tak Hap

Tan Sri Dato’ Mohamed Noordin bin Hassan

Phua Bah Lee

companysecretariesGabrielle Tan

Ooi Siew Poh

executive officersLen Siew Lian General Manager, Property

Ng Kim Huat Chief Financial Officer

Karine Lim General Manager Group Human Resource

subsidiarycompaniesWing Tai Malaysia Berhad Dato’ Roger Chan Wan Chung Executive Director

Wing Tai Property Management Pte Ltd Lye Kuan Loy Project Director

Helen Chow Director

Wing Tai Retail Pte Ltd Helen Khoo Executive Director

registered office3 Killiney Road #10-01 Winsland House I Singapore 239519 Tel: 6280 9111 Fax: 6732 9956 www.wingtaiasia.com.sg

registrar & transfer officeTricor Barbinder Share Registration Services (A division of Tricor Singapore Pte. Ltd.) 80 Robinson Road #02-00 Singapore 068898

auditorsPricewaterhouseCoopers 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 bankersDBS 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 Tokyo–Mitsubishi UFJ, Ltd 9 Raffles Place #01-01 Republic Plaza Singapore 048619

United Overseas Bank Limited 80 Raffles Place UOB Plaza Singapore 048624

corporatedata

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board of directors

cheng wai keungCheng 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 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 wingEdmund 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; and Singapore’s National Arts Council. He is a member of 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 27 October 2011.

boey tak hapBoey 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 27 October 2011.

cheng man takCheng 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.

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tan sri dato’ mohamed noordin bin hassanTan 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 27 October 2011.

lee han yangLee Han Yang has served as a non-executive director since 3 January 1989. He is Chairman of the Nominating 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 27 October 2011.

lee kim wahLee 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 27 October 2011.

loh soo engLoh Soo Eng has served as a non-executive director since 1 June 2004, after retiring as Director-Property. He is Chairman of the Remuneration Committee and a member of the Nominating Committee. 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 27 October 2011.

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phua bah lee Phua Bah Lee has served as a non-executive director since 11 January 1989 and is a member of both the Audit Committee and Remuneration 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 27 October 2011.

paul tong hon to Paul Tong Hon To has served as a non-executive director since 16 August 2007 and is 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.

tan hwee binTan 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 Unity 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. She was awarded the Public Service Medal (PBM) in 2011. Ms Tan was re-elected director on 28 October 2009.

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key management

dato’ roger chan wan chungDato’ 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.

lye kuan loyLye Kuan Loy joined Wing Tai Property Management Pte Ltd as Project Director on 3 September 2012 to lead the Project and Property Management division of the Group. He is a Professional Engineer (Civil) with over 30 years’ experience in general, project and property management, engineering design and construction, and was awarded the Public Administration Medal (Bronze) in 1996. A Colombo Plan scholar, Mr Lye graduated with a Bachelor of Engineering (First Class Honours) degree from Monash University, and obtained his Master’s of Science (Civil Engineering) degree from the National University of Singapore. He is a Fellow with the Society of Project Managers.

helen chowHelen 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 khooHelen Khoo is Executive Director of Wing Tai Retail Pte Ltd and drives the growth and expansion of the Company’s portfolio of retail brands. She was conferred the WDA’s Singapore Workforce Skills Qualifications Champion 2011,

Retail Leadership Award 2008 and International Management Action Award (IMAA) 2007. She chairs WDA’s Retail Industry Skills and Training Council and is a member of Spring Singapore’s Policy Advisory Committee, as well as Honorary Secretary of Singapore Retailers Association and Honorary Treasurer of Orchard Road Business Association. She graduated with a Bachelor of Arts (Honours) degree from the University of Hong Kong.

len siew lianLen Siew Lian is General Manager (Property) of Wing Tai Holdings Limited. She oversees residential marketing and project launches of development properties for sale, and asset management of commercial/investment properties. She joined the Company in September 1989 where she was involved in commercial leasing of both office and retail. 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 huatNg 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 limKarine 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.


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corporate governance

Directors’ Attendance at Board and Board Committee Meetings for FY2012

Audit Remuneration NominatingName Board Committee Committee Committee

Meetings Meetings Meetings Meetings Held: 7 Held: 4 Held: 2 Held: 1

Meetings Meetings Meetings Meetings Attended Attended Attended Attended

Cheng Wai Keung 4* 1Edmund Cheng Wai Wing 4* Boey Tak Hap 7 4 2 Cheng Man Tak 4* Tan Sri Dato’ Mohamed Noordin bin Hassan 7 2 1Lee Han Yang 7 4 2 Lee Kim Wah 7 Loh Soo Eng 7 2 1Phua Bah Lee 6 4 1Paul Tong Hon To 7 4 Tan Hwee Bin 7 Chng Chee Beow 3**

* Cheng Wai Keung, Edmund Cheng Wai Wing and Cheng Man Tak abstained from participating in 3 out of the 7 Board meetings as they were deemed interested under Section 156 of the Companies Act, Cap.50.

** Resigned as director with effect from 31 May 2012.

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 the 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 FY2012, the seminars attended by Directors were “Heat & Hope: The New Realities in Corporate Governance” and “How Boards can Satisfy Requirements on Internal Controls”.

Corporate governance is constantly evolving and responding to new regulations, standards and market conditions. The Company recognises the importance of good corporate governance and is committed to continuously maintain high standards of corporate governance to ensure corporate transparency, continued growth and success. 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 mattersThe Board’s Conduct of its AffairsThe 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 seven 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:

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Board Composition and BalanceThe Board currently comprises a majority of non-executive directors, with more than one-half of the Board being independent directors. The Nominating Committee 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 currently 11 members on the Board (since Mr Chng Chee Beow’s resignation as director of the Company on 31 May 2012), three of whom are executive directors and eight are non-executive directors (inclusive of seven independent directors).

Given the present scope and nature of the Company’s operations, 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 DirectorThe 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 non-executive 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 committeesTo 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 CommitteeBoard MembershipThe Nominating Committee (“NC”) comprises four members, namely, Mr Lee Han Yang – Chairman of NC, Tan Sri Dato’ Mohamed Noordin bin Hassan, Mr Loh Soo Eng (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 10 to 12 of this Annual Report.

Board PerformanceThe 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 the Management, who provides relevant and complete information on a regular basis for effective discharge of his/her duties.

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Access to InformationPrior 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 at the Company’s expense as and when necessary to enable the Directors (whether individually or as a group) to discharge their 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.

remuneration mattersRemuneration CommitteeThe Remuneration Committee (“RC”) comprises four members, all of whom are independent non-executive directors. The RC members are Mr Loh Soo Eng – Chairman of RC, Mr Boey Tak Hap, Tan Sri Dato’ Mohamed Noordin bin Hassan and Mr Phua Bah Lee.

The RC reviews and recommends to the Board 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 reviews 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. The review by the RC covers all aspects of remuneration, including but not limited to director’s fees, salaries, allowances, bonuses and share plans. 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.

Other than the restricted shares and performance shares (“Shares”) granted to Ms Tan Hwee Bin and Mr Chng Chee Beow (who resigned on 31 May 2012), no Shares nor share options were granted to the rest of the Directors during the financial year.

The breakdown (in percentage terms) of the Directors’ emuneration for FY2012 are as follows:

Bonus, Shares Allowance & grantedRemuneration Fees Salary Other Benefits during theBands (%) (%) (%) year

$3,500,001 to $3,750,000Cheng Wai Keung – 35 65# –

$3,250,000 to $3,500,000Edmund Cheng Wai Wing – 34 66# –

$1,500,000 to $1,750,000Tan Hwee Bin – 30 70^ 260,000

$500,000 to $750,000Chng Chee Beow* – 52 48^ 195,000**

Below $250,000Boey Tak Hap 100 – – –Cheng Man Tak 100 – – –Tan Sri Dato’ Mohamed Noordin bin Hassan 84# – 16# –Lee Han Yang 100 – – –Lee Kim Wah 94 – 6 –Loh Soo Eng 100 – – –Phua Bah Lee 100 – – –Paul Tong Hon To 100 – – –

* Resigned as director with effect from 31 May 2012** Shares were granted but lapsed due to resignation.# Includes fees, allowance and other benefits from Wing Tai Malaysia Berhad.^ Includes the cost of the fair value of 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 FY2012 is set out below. A significant portion of the key executives’ remuneration is linked to corporate and individual performance.

Bonus, AllowanceRemuneration Bands Salary (%) & Other Benefits (%)

Above $750,000 Helen Chow 43 57Helen Khoo 29 71^

$500,000 to $750,000 Dato’ Roger Chan Wan Chung 65 35#

Len Siew Lian 44 56^

Ng Kim Huat 41 59^

Karine Lim 40 60^

# Includes allowance and other benefits from Wing Tai Malaysia Berhad.^ Includes the cost of the fair value of restricted shares and performance

shares (where applicable).

There is also an employee who is related to the Deputy Chairman whose remuneration exceeded $150,000 during FY2012.

accountability and auditAccountabilityIn presenting the annual financial statements and announcements of financial results to shareholders, it is the aim of the Board to provide shareholders with a balanced and understandable assessment of the Company’s performance, financial position and prospects on a quarterly basis, as well as other price-sensitive public reports, and reports to regulators, if required.

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The Board is furnished with periodic management reports which present a balanced and understandable assessment of the Company and its businesses, and all other information that enable the Board to make a balanced and informed assessment of the Company’s performance, position and prospects.

Audit CommitteeThe 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.

The Board considers the members of the AC appropriately qualified to discharge their responsibilities of the AC. The majority of the members of the AC, including the Chairman, having sufficient financial management expertise and experience. The AC held four meetings in FY2012. The AC meetings are held with the internal and external auditors without the presence of the Management once during the year.

The AC is guided by the written terms of reference which set out its authority and duties. The AC has explicit authority to investigate any matter within its terms of reference, full access to and co-operation by the Management and full discretion to invite any Director or executive officer to attend its meeting, and reasonable resources to enable it to discharge its functions properly.

The AC maintains a high standard of corporate governance and risk management by reviewing the annual audit plan, internal audit process, the adequacy of internal controls and interested person transactions. The AC also reviews the quarterly and annual financial statements before submitting to the Board for approval.

The AC meets on a periodic basis to perform, inter alia, the following: to recommend the appointment, reappointment and removal of the external auditor, to review the scope, results of the audit and its cost effectiveness, and objectivity of the external auditors. 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.

The Group has complied with Rule 712 and 715 of the Listing Manual issued by the Singapore Exchange Securities Trading Limited in relation to its external auditors.

Risk Management/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, financial information

are reliable and applicable laws and regulations are properly complied with.

The Board ensures the Management maintains a sound system of internal controls, including financial, operational and compliance. The Board has the AC to review and report annually on the adequacy and effectiveness of the controls and assist it in its risk management oversight.

The Group has a risk management framework to provide the Board with a Group-wide view of the risks in the respective business units. As part of the framework, a risk register was set up to document the identified risks and mitigating actions. The procedures and processes within the framework allow the Group to regularly review the significance and adequacy of its key 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.

As part of the continuing efforts in improving the risk management policies and systems, the Group, with the assistance of KPMG Risk Consulting, carried out an exercise to consolidate and review the Group’s current internal controls and the risk register. Dialogue sessions are carried out with the Management to identify, assess and prioritise the risks with each risk owner. Mitigating actions in managing the key risks, as well as action plans to address the gaps are considered and documented.

Risk tolerance limits are set to align with the risk appetite and are subject to review annually. Operating within risk tolerances provides the Management with greater assurance that the Group remains within its risk appetite.

The key and material risks below are managed within the Group’s risk management framework:

Financial RisksThe 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”.

Operational RisksThe Group is exposed to operational risks relating to product and service quality assurance, cost control, sales and marketing, leasing and financial control. 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

17


information technology systems and human resource skills, are important elements of the risk management framework.

Compliance RisksThe Group has a robust system in meeting the relevant authorities’ regulatory requirement, and this is built into the operating process at various stages. External expertise will be sought when necessary. The Group also maintains close working relationships with business associates and regulators to anticipate change and adjust business plans as and when required.

Based on the internal controls established and the reviews conducted by the internal and external auditors, the Board, with the concurrence of the AC, is satisfied that there are adequate internal controls in place within the Group addressing material financial, operational and compliance risks to meet the needs of the Group in its current business environment as at 30 June 2012.

The system of internal controls established by the Group provides reasonable, but not absolute, assurance that the Group will not be adversely affected by any event that can be reasonably foreseen as it strives to achieve its business objectives. The Board, however, note that no system of internal controls can provide absolute assurance in this regard, or absolute assurance against poor judgement in decision making, human error, losses, fraud or other irregularities.

The Group has put in place a policy on whistle-blowing to facilitate the reporting of activities or practices which are in violation of the Group’s work rules. The AC has the responsibility of overseeing this policy, which is administered with the assistance of the internal auditors. The process of raising the concerns has been communicated to all employees. It is believed that this will encourage openness, promote transparency and act as a form of check and balance against the internal controls and risk management practices of the Group.

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 FY2012, other than the recurring IPTs that are disclosed in the Financial Statements, there was no other IPT.

Internal Audit The internal audit function of the Group is carried out by KPMG Services Pte Ltd (“KPMG”). KPMG, 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.

The IA reports directly to the Chairman of the AC. The AC ensures that the IA is adequately resourced and has

appropriate standing within the Company and ensures, on an annual basis, the adequacy of the internal audit function.

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 AC and the 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.

communication with shareholdersIn 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 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 securitiesThe Company has adopted and implemented an internal guideline on share dealings in the Company’s securities in compliance with Rule 1207(19)(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.

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awards

september 2011Associate of the Arts Award conferred by National Arts Council, Singapore

october 2011Belle Vue Residences awarded FIABCI Singapore Property Awards in Residential (Low-rise), Singapore

Helios Residences awarded SIA-NParks Skyrise Greenery Awards (Second), Singapore

Retail division awarded Customer Service Excellence at Annual Business Awards organised by British Chamber of Commerce, Singapore

BCBG staff won Singapore Experience Awards for Best Customer Service Professionals (Retail) by Singapore Tourism Board, Singapore

april 2012Foresque Residences awarded BCA Green Mark Gold Award, Singapore

may 2012Belle Vue Residences awarded Runner-Up at FIABCI Prix D’Excellence in Residential (Low-rise), Russia

Helios Residences and Belle Vue Residences won Silver and Bronze awards respectively at BCA Universal Design Awards, Singapore

november 2011Awarded Highly Commended for Best Developer (Singapore); Belle Vue Residences and Verticas Residensi clinched Highly Commended for Best Condo Development at South East Asia Property Awards, Singapore

Belle Vue Residences and Helios Residences won Gold and Bronze awards respectively at MIPIM Asia Awards (Best Residential Developments), Hong Kong

Retail division won over 160 Excellent Service Awards (EXSA), Singapore

Foresque Residences

Excellent Retail Service

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calendar of events

august 2011 Announcement of full year results for year ended 30 June 2011

october 201147th Annual General Meeting, Singapore

Lanson Place contracted to manage Lu Xiang Yuan Serviced Suites in Shanghai, China

february 2012Lanson Place contracted to manage Lanson Place Xanadu Serviced Residences in Beijing, China

march 201266 strata-titled office units in Burlington Square put up for sale, subsequently sold in May 2012, Singapore

Participated in Earth Hour Singapore 2012 in demonstrated support towards environmental sustainability

Dorothy Perkins celebrated 10th anniversary in Singapore

april 2012Laline, a popular bath and body care range opened at Marina Square, Singapore

Uniqlo opened its 6th store at Parkway Parade, Singapore

may 2012Nouvel 18 and Ascentia Sky Topping Out, Singapore

june 2012Uniqlo opened its largest store at Bugis+, Singapore

Nouvel 18

Uniqlo

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22

23

30

31

32

33

34

35

37

39

115

directors’ report

five-year financial summary

statement by directors

independent auditor’s report

c ons olidated inc ome statement

c ons olidated statement of c omprehensive inc ome

statements of financial position

c ons olidated statement of change s in equity

c ons olidated statement of cash flows

note s to the financial statements

shareholding statistic s

FinancialReportsfor the financial year 2012


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2012 20111 20101 2009 2008 $’000 $’000 $’000 $’000 $’000

Revenue 624,888 751,109 821,851 501,843 428,173 Property 401,810 540,185 626,709 324,605 197,340 Retail 216,462 202,350 179,683 160,934 161,654 Investmentandothers 6,616 8,574 15,459 16,304 69,179Profitbeforeincometax 300,183 465,675 274,823 39,960 300,354Profitafterincometaxbutbefore non-controllinginterests 263,225 407,691 222,018 28,995 255,234Profitattributabletoequityholders oftheCompany 242,175 371,377 160,750 20,982 229,355Shareholders’equity 2,106,556 1,895,099 1,613,216 1,575,916 1,605,524Totalassets 3,929,860 3,727,770 3,573,473 3,268,935 3,232,634Totalliabilitiesandnon-controllinginterests 1,823,304 1,832,671 1,960,257 1,693,019 1,627,110Earningspershare2(cents) 31.02 47.66 20.66 2.68 30.11Nettangibleassetspershare($) 2.69 2.43 2.07 2.03 2.03Cashdividendspershare(cents) 7.00 7.00 5.00 4.00 6.00

Notes:

1. From1July2011,theGrouphadadoptedINTFRS115Agreements for the Construction of Real Estate,underwhichoverseaspropertiesandSingaporeresidentialpropertiesunderthedeferredpaymentschemeareaccountedforusingthecompletionofconstructionmethod.The2011incomestatement,andthe2010and2011statementsoffinancialpositionhavebeenrestated,asdisclosedinpages39and40ofthefinancialstatements.Consequently,theaffectedfinancialratioshavebeenrestatedaccordingly.

2. Thenumberofsharesusedforthispurposeareasfollows:

’000 2012 780,803 2011 779,181 2010 777,945 2009 782,796 2008 761,618

five-year financial summary

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ThedirectorspresenttheirreporttothememberstogetherwiththeauditedfinancialstatementsoftheGroupforthefinancialyearended30June2012andthestatementoffinancialpositionoftheCompanyasat30June2012.

directors

ThedirectorsoftheCompanyatthedateofthisreportare:

ChengWaiKeung (Chairman and Managing Director)EdmundChengWaiWing (Deputy Chairman and Deputy Managing Director)BoeyTakHapChengManTakTanSriDato’MohamedNoordinbinHassanLeeHanYangLeeKimWahLohSooEngPhuaBahLeePaulTongHonTo TanHweeBin

arrangements to enable directors to acquire shares and debentures

Exceptasdisclosedinthe“ShareOptions”and“SharePlans”sectionsofthisreport,neitherattheendofnoratanytimeduringthefinancialyearwastheCompanyapartytoanyarrangement,whoseobjectwastoenablethedirectorsoftheCompanytoacquirebenefitsthroughtheacquisitionofsharesin,ordebenturesof,theCompanyoranyotherbodycorporate.

directors’ reportFor the financial year ended 30 June 2012

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directors’ interests in shares or debentures

(a) Theinterestsofthedirectorsholdingofficeattheendofthefinancialyearintheshares,shareoptionsandshareplansoftheCompanyandrelatedcorporationsaccordingtotheregisterofthedirectors’shareholdingswereasfollows:

Holdingsregistered Holdingsinwhichadirector inthenameofdirector isdeemedtohaveaninterest

Asat Asat Asat Asat Asat Asat Nameofdirectors 01.07.2011 30.06.2012 21.07.2012 01.07.2011 30.06.2012 21.07.2012

OrdinaryShares ChengWaiKeung – – – 325,856,564 326,831,564 395,038,656 EdmundChengWaiWing – – – 310,601,664 310,601,664 310,601,664 LeeHanYang 330,000 330,000 280,500 – – – LeeKimWah 937,600 937,600 796,960 – – – LohSooEng 412,800 412,800 412,800 – – – PhuaBahLee 275,000 275,000 233,750 – – – TanHweeBin 219,900 449,100 381,735 – – –

ShareOptions LeeKimWah 409,200 409,200 409,200 – – – TanHweeBin 390,500 390,500 390,500 – – –

RestrictedSharePlan TanHweeBin 444,100 397,900 397,900 – – –

PerformanceSharePlan* TanHweeBin 93,000 170,000 170,000 – – –

Related corporation

WingTaiMalaysiaBerhad

ShareOptions ChengWaiKeung 800,000 800,000 800,000 – – – EdmundChengWaiWing 800,000 800,000 800,000 – – –

*Sharesawardedarecontingentuponachievementofthresholdtargets.

(b) ByvirtueofSection7oftheCompaniesAct(Cap.50),ChengWaiKeungandEdmundChengWaiWing,whobyvirtueoftheirinterestofnotlessthan20%intheissuedcapitaloftheCompany,arealsodeemedtohaveaninterestinthesharesofthevarioussubsidiarycompaniesheldbytheCompany.

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directors’ contractual benefits

Since theendof theprecedingfinancialyear,nodirectorhas receivedorbecomeentitled to receiveabenefitby reasonofacontractmadebytheCompanyorarelatedcorporationwiththedirectororwithafirmofwhichheisamemberorwithacompanyinwhichhehasasubstantialfinancialinterest,exceptasdisclosedinNote33tothefinancialstatements.

share options

(a) TheWingTaiHoldingsLimited(2001)ShareOptionScheme(the“Scheme”) TheSchemewasapprovedandadoptedbythemembersoftheCompanyatanExtraordinaryGeneralMeeting(“EGM”)

heldon31August2001.TheSchemewasterminatedbythemembersoftheCompanyatanEGMheldon30October2008(withoutprejudicetotherightsofholdersofoptionsthereunderinrespectofoptionswhichhavebeengranted).

TheSchemeisadministeredbyacommitteecomprisingtwodirectors,namelyChengWaiKeungandTanHweeBin.

NooptionwasgrantedundertheSchemeduringthefinancialyear.NocontrollingshareholderoftheCompanyorhisassociateparticipatedintheScheme.

TheaggregatenumberofoptionsgrantedsincethecommencementoftheSchemetotheendofthefinancialyearisasfollows:

Aggregateoptionssincecommencement oftheSchemeto30.06.2012

Numberof Numberof Numberof Nameofparticipants optionsgranted optionsexercised optionsforfeited

DirectorsoftheCompany LeeKimWah 877,200 468,000 – 409,200 TanHweeBin 645,500 255,000 – 390,500

1,522,700 723,000 – 799,700 GroupExecutives 11,686,600 5,466,900 3,171,500 3,048,200

Total 13,209,300 6,189,900 3,171,500 3,847,900

OtherthanLeeKimWah,noneoftheparticipantsoftheSchemereceived5%ormoreofthetotalnumberofoptions

grantedundertheScheme.


Aggregatenumberof

outstandingoptionsasat

30.06.2012

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share options (continued)(a) TheWingTaiHoldingsLimited(2001)ShareOptionScheme(the“Scheme”) (continued)

DetailsofthemovementintheoptionsgrantedundertheSchemeontheunissuedordinarysharesoftheCompanyduringtheyearwereasfollows:

Number Number Asat ofoptions ofoptions Asat ExerciseDateofgrant 01.07.2011 exercised forfeited 30.06.2012 price($) Expirydate

02.11.2001 22,000 22,000 – – 0.616 01.11.2011 19.11.2004 287,100 37,400 – 249,700 0.849 18.11.2014 30.09.2005 639,200 – 37,400 601,800 1.300 29.09.2015 05.09.2006 1,239,700 – 85,800 1,153,900 1.645 04.09.2016 06.09.2007 1,980,000 – 137,500 1,842,500 3.136 05.09.2017

Total 4,168,000 59,400 260,700 3,847,900

(b) TheWingTaiMalaysiaBerhad(“WTM”)Employees’ShareOptionScheme(the“ESOS”) WTM,asubsidiarycompanyoftheGroup,implementedtheESOSapprovedbytheshareholdersofWTMatanEGMheld

on11May2005.

TheESOSisadministeredbyacommitteecomprisingtwodirectorsofWTM,namelyChengWaiKeungandTanSriDato’MohamedNoordinbinHassan.

Thedirectors(includingnon-executivedirectors)andemployeesofWTMwhoasatthedateofofferareconfirmedwithatleastoneyearofcontinuousserviceinWTManditssubsidiarycompaniesareeligibletoparticipateinthescheme.TheESOSwillallowgrantingofoptionstoalleligibledirectorsandemployeesbygivingthemtherighttosubscribefornewsharesofRM1.00each,subjecttothetermsandconditionsoftheby-lawsoftheESOS.ThedetailsoftheESOShavebeendisclosedintheDirectors’ReportofWTM.

DetailsofthemovementintheoptionsgrantedundertheESOSontheunissuedordinarysharesofWTMduringtheyearwereasfollows:

Number Number Asat ofoptions ofoptions Asat ExerciseDateofgrant 01.07.2011 exercised forfeited 30.06.2012 price(RM) Expirydate

01.12.2005 1,029,400 – 24,400 1,005,000 1.00 15.05.2015 31.01.2007 286,800 45,000 54,200 187,600 1.00 15.05.2015 19.05.2010 1,953,100 311,400 – 1,641,700 1.20 15.05.2015

Total 3,269,300 356,400 78,600 2,834,300

Exceptfortheabove,nootheroptionsweregrantedbytheCompanyoranysubsidiarycompaniesduringthefinancialyearandtherewerenounissuedsharesunderoptionsattheendofthefinancialyear.


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share plans

(a) TheWingTaiPerformanceSharePlan(“WingTaiPSP”)andtheWingTaiRestrictedSharePlan(“WingTaiRSP”) TheWingTaiPSPandtheWingTaiRSP(collectivelyreferredtoasthe“WingTaiSharePlans”)wereadoptedbythe

membersoftheCompanyatanEGMheldon30October2008.

The Wing Tai Share Plans are administered by a committee (the “Committee”) comprising two directors, namely ChengWaiKeungandTanHweeBin.

(i) Wing Tai PSP OneoftheprimaryobjectivesoftheWingTaiPSPistoincreasetheCompany’sflexibilityandeffectivenessinits

continuouseffortstoreward,retainandmotivatekeymanagementstaff.TheWingTaiPSPisprimarily targetedatexecutivesinkeypositionswhoareabletodrivethegrowthoftheCompanythroughinnovation,creativityandsuperiorperformance.

Full-timeexecutives(includingexecutivedirectors)oftheCompany,itssubsidiarycompaniesorassociatedcompanieswhoholdsuchrankasmaybedesignatedbytheCommitteefromtimetotimeareeligibletoparticipate intheWingTaiPSP.

UndertheWingTaiPSP,performanceconditionsaresetoverathree-yearperformanceperiod.AspecifiednumberofshareswillbereleasedbytheCommitteetotheparticipantsattheendoftheperformanceperiod,providedthethresholdtargetsareachieved.

DetailsofthemovementintheawardsoftheCompanyduringtheyearwereasfollows:

Asat Numberof Numberof Asat Dateofgrant 01.07.2011 sharesgranted sharesforfeited 30.06.2012

03.09.2009 146,000 – 46,000 100,000 01.09.2010 175,000 – 54,000 121,000 08.09.2011 – 265,000 82,000 183,000

Total 321,000 265,000 182,000 404,000

(ii) Wing Tai RSP TheobjectiveoftheWingTaiRSPistoserveasanadditionalmotivationaltooltorecruitandretainemployees.

Full-time executives (including executive directors) of the Company, its subsidiary companies or associatedcompanieswhoholdsuch rankasmaybedesignatedby theCommittee from time to timeandnon-executivedirectorsareeligibletoparticipateintheWingTaiRSP.

UndertheWingTaiRSP,performanceconditionsaresetoveraone-yearperformanceperiod.Aspecifiednumberofshareswillbeawardedtoeligibleparticipantsattheendoftheperformanceperioddependingontheextentofachievementoftheperformanceconditionsestablished.Theshareshaveavestingscheduleofthreeyears.Theparticipantwillreceivefullypaidshares,withoutanycashconsiderationpayablebytheparticipant.


27



share plans (continued)(a) The Wing Tai Performance Share Plan (“Wing Tai PSP”) and the Wing Tai Restricted Share Plan (“Wing Tai

RSP”) (continued)(ii) Wing Tai RSP (continued)


Asat Numberof Numberof Numberof Asat Dateofgrant 01.07.2011 sharesgranted sharesreleased sharesforfeited 30.06.2012

18.05.2009 842,800 – 829,200 13,600 – 03.09.2009 870,800 – 373,200 50,000 447,600 01.09.2010 2,103,000 – 630,900 157,500 1,314,600 08.09.2011 – 2,086,000 – 149,000 1,937,000

Total 3,816,600 2,086,000 1,833,300 370,100 3,699,200

TheinformationonadirectoroftheCompanyparticipatingintheWingTaiPSPandWingTaiRSPisasfollows:

Aggregateawards Aggregateawards grantedsince releasedsince Aggregateawards Awards commencementof commencementof outstanding grantedduring planstothe planstothe asatthe

Nameofdirector theyear endoftheyear endoftheyear endoftheyear

TanHweeBin WingTaiPSP 77,000 170,000 – 170,000 WingTaiRSP 183,000 847,000 449,100 397,900

(b) TheWingTaiMalaysiaRestrictedSharePlan(“WTMRSP”)

WTMimplementedtheWTMRSPapprovedbytheshareholdersofWTMatanEGMheldon29November2011.

TheWTMRSPisadministeredbyacommitteecomprisingtwodirectorsofWTM,namelyChengWaiKeungandTanSriDato’MohamedNoordinbinHassan.

TheemployeesanddirectorsofWTManditssubsidiarycompaniesbutexcludesubsidiarycompanieswhicharedormant(the“WTMGroup”)whoseemploymentareconfirmedinwritingonorbeforethedateofoffer,areeligibletoparticipateinthescheme.

TheRestrictedShareAward represents the rightof aparticipant to receive fullypaidsharesonavestingdate, theirequivalentvalueorcombinationsthereof,withoutanycashconsiderationpayablebytheparticipant,upontheparticipantachievingpre-determinedperformanceconditionsand/orotherwisehavingperformedwell and/ormadea significantcontributiontotheWTMGroup.ThedetailsoftheWTMRSPhavebeendisclosedintheDirectors’ReportofWTM.

NosharesweregrantedbyWTMundertheWTMRSPtoitseligibleemployeesordirectorsinthecurrentyear.

28

audit committee

TheAuditCommitteeconsistsoffournon-executiveindependentdirectors.ThemembersoftheCommitteeatthedateofthisreportare:

PaulTongHonTo (Chairman)BoeyTakHapLeeHanYangPhuaBahLee

The Audit Committee reviewed the Group’s accounting policies and system of internal controls on behalf of the Board ofDirectorsandperformedthefunctionsspecifiedinSection201B(5)oftheCompaniesAct(Cap.50).Inperformingitsfunctions,theCommitteereviewed:

(a) theauditplansoftheCompany’sinternalandexternalauditorsandtheirevaluationofthesystemof internalcontrolsarisingfromtheirauditexaminations;

(b) thescopeandresultsofinternalauditprocedures;and

(c) thequarterlyresultsandthefullyearconsolidatedfinancialstatementsoftheGroupforthefinancialyearended30June2012beforetheirsubmissiontotheBoardofDirectorsforapprovalandtheauditor’sreportonthesefinancialstatements.

The Audit Committee has nominated PricewaterhouseCoopers LLP for re-appointment as auditor of the Company at theforthcomingAnnualGeneralMeeting.

independent auditor

Theindependentauditor,PricewaterhouseCoopersLLP,hasexpresseditswillingnesstoacceptre-appointment.

Onbehalfofthedirectors

CHENGWAIKEUNGDirector18September2012


EDMUNDCHENGWAIWINGDirector

29


Intheopinionofthedirectors,

(a) thestatementoffinancialpositionoftheCompanyandtheconsolidatedfinancialstatementsoftheGroupassetoutonpages32to114aredrawnupsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyandoftheGroupasat30June2012andoftheresultsofthebusiness,changesinequityandcashflowsoftheGroupforthefinancialyearthenended;and

(b) atthedateofthisstatement,therearereasonablegroundstobelievethattheCompanywillbeabletopayitsdebtsasandwhentheyfalldue.

Onbehalfofthedirectors

CHENGWAIKEUNGDirector18September2012

statement by directorsFor the financial year ended 30 June 2012

EDMUNDCHENGWAIWINGDirector

30

report on the financial statements

We have audited the accompanying financial statements ofWing Tai Holdings Limited (the “Company”) and its subsidiarycompanies(the“Group”)setoutonpages32to114,whichcomprisetheconsolidatedstatementoffinancialpositionoftheGroupandthestatementoffinancialpositionof theCompanyasat30June2012, theconsolidated incomestatement, theconsolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidatedstatementofcashflowsoftheGroupforthefinancialyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.

Management’sResponsibilityfortheFinancialStatementsManagement is responsible for thepreparationoffinancialstatements thatgivea trueand fairview inaccordancewith theprovisionsof theSingaporeCompaniesAct (the “Act”) andSingaporeFinancialReportingStandards, and for devising andmaintainingasystemofinternalaccountingcontrolssufficienttoprovideareasonableassurancethatassetsaresafeguardedagainst loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded asnecessarytopermitthepreparationoftrueandfairprofitandlossaccountsandbalancesheetsandtomaintainaccountabilityofassets.

Auditor’sResponsibilityOurresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithSingaporeStandardsonAuditing.ThoseStandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor’sjudgement,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’spreparationoffinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

OpinionInouropinion,theconsolidatedfinancialstatementsoftheGroupandthestatementoffinancialpositionoftheCompanyareproperlydrawnupinaccordancewiththeprovisionsoftheActandSingaporeFinancialReportingStandardssoastogiveatrueandfairviewofthestateofaffairsoftheGroupandoftheCompanyasat30June2012,andoftheresults,changesinequityandcashflowsoftheGroupforthefinancialyearendedonthatdate.

report on other legal and regulatory requirements

In our opinion, the accounting andother records requiredby theAct tobe keptby theCompanyandby those subsidiarycompaniesincorporatedinSingaporeofwhichwearetheauditors,havebeenproperlykeptinaccordancewiththeprovisionsoftheAct.

PRICEWATERHOUSECOOPERSLLPPublicAccountantsandCertifiedPublicAccountants

Singapore18September2012

independent auditor’s report tothe members of wing tai holdings limited

31


Group 2012 2011 (restated) Note $’000 $’000

Revenue 3 624,888 751,109Costofsales (319,497) (311,847)

Grossprofit 305,391 439,262

Othergains–net 4 18,493 80,837 Expenses –Distribution (95,637) (89,507)–Administrativeandother (62,740) (84,395)

Operatingprofit 165,507 346,197 Financecosts 7 (37,161) (39,868) Shareofprofitsofassociatedandjointventurecompanies 171,837 159,346

Profitbeforeincometax 300,183 465,675

Incometaxexpense 8(a) (36,958) (57,984)

Totalprofit 263,225 407,691

Attributableto:EquityholdersoftheCompany 242,175 371,377Non-controllinginterests 21,050 36,314

263,225 407,691

EarningspershareattributabletoequityholdersoftheCompany(cents) Basic 9(a) 31.02 47.66

Diluted 9(b) 30.79 47.33

consolidated income statementFor the financial year ended 30 June 2012

32


Totalprofit 263,225 407,691

Othercomprehensiveincome/(expense): Cashflowhedges 13,668 (5,403)Currencytranslationdifferences 595 (67,147)Revaluationgainsonproperty,plantandequipment 9,489 8,446Shareofothercomprehensiveexpenseofassociatedand jointventurecompanies (4,429) (1,396)

Othercomprehensiveincome/(expense),netoftax 8(a) 19,323 (65,500)

Totalcomprehensiveincome 282,548 342,191

Attributableto: EquityholdersoftheCompany 262,361 313,452Non-controllinginterests 20,187 28,739

282,548 342,191

consolidated statement of comprehensive incomeFor the financial year ended 30 June 2012

33


Group Company 2012 2011 2010 2012 2011 (restated) (restated) Note $’000 $’000 $’000 $’000 $’000

assetsCurrentassetsCashandcashequivalents 10 848,686 504,235 594,054 441,660 188,991Tradeandotherreceivables 12 83,404 212,651 42,821 436,899 277,284Inventories 13 20,771 18,784 16,466 – –Developmentproperties 14 1,093,139 1,238,805 1,326,119 – –Taxrecoverable 1,740 5,758 2,967 – –Othercurrentassets 15 75,112 56,678 40,295 4,462 2,615

2,122,852 2,036,911 2,022,722 883,021 468,890

Non-currentassetsAvailable-for-salefinancialassets 16 7,170 7,170 7,170 3,189 3,189Tradeandotherreceivables 17 205,461 197,790 222,689 452,565 608,899Investmentinanassociatedcompany 18 657,886 544,276 508,854 – –Investmentsinjointventurecompanies 19 161,432 189,769 149,457 – –Investmentsinsubsidiarycompanies 20 – – – 252,392 252,392Investmentproperties 21 578,085 560,210 486,028 – –Property,plantandequipment 22 196,974 191,644 176,553 7,828 6,951

1,807,008 1,690,859 1,550,751 715,974 871,431

Totalassets 3,929,860 3,727,770 3,573,473 1,598,995 1,340,321

liabilitiesCurrentliabilitiesTradeandotherpayables 23 230,005 222,338 152,061 162,980 162,128Currentincometaxliabilities 83,561 81,808 45,787 5,879 3,506Borrowings 24 25,749 167,126 110,655 – –

339,315 471,272 308,503 168,859 165,634

Non-currentliabilitiesDerivativefinancialinstruments 11 20,669 34,116 28,475 3,503 6,286Borrowings 24 1,199,986 1,012,091 1,225,017 370,000 245,000Deferredincometaxliabilities 8(b) 66,389 85,665 82,839 – –Othernon-currentliabilities 26 33,407 44,611 123,618 – –

1,320,451 1,176,483 1,459,949 373,503 251,286

Totalliabilities 1,659,766 1,647,755 1,768,452 542,362 416,920

net assets 2,270,094 2,080,015 1,805,021 1,056,633 923,401

equityCapitalandreservesattributableto equityholdersoftheCompanySharecapital 27 838,250 838,250 838,200 838,250 838,250Otherreserves 28 (40,751) (64,067) (8,915) (6,821) (12,750)Retainedearnings 29 1,309,057 1,120,916 783,931 225,204 97,901

2,106,556 1,895,099 1,613,216 1,056,633 923,401Non-controllinginterests 163,538 184,916 191,805 – –

total equity 2,270,094 2,080,015 1,805,021 1,056,633 923,401

statements of financial positionAs at 30 June 2012

34

AttributabletoequityholdersoftheCompanyNon-

Share Other Retained controlling Total capital reserves earnings Total interests equity Note $’000 $’000 $’000 $’000 $’000 $’000

2012Beginningoffinancialyear, aspreviouslyreported 838,250 (65,412) 1,146,257 1,919,095 194,775 2,113,870EffectofadoptingINTFRS115 2.1 – 1,345 (25,341) (23,996) (9,859) (33,855)

Asrestated 838,250 (64,067) 1,120,916 1,895,099 184,916 2,080,015 Totalcomprehensiveincome – 20,186 242,175 262,361 20,187 282,548Realisationofreserves – (75) 75 – – –Costofshare-basedpayment 28(a) – 3,160 – 3,160 37 3,197Reissuanceoftreasuryshares – 45 – 45 – 45Ordinaryandspecialdividendspaid 25 – – (54,660) (54,660) – (54,660)Dividendspaidbysubsidiary companiestonon-controlling interests – – – – (34,392) (34,392)Issueofsharesbyasubsidiary companytonon-controlling interests – – (83) (83) 254 171Acquisitionofadditionalinterestin asubsidiarycompany – – 634 634 (2,172) (1,538)Liquidationofasubsidiarycompany – – – – (5,292) (5,292)

Endoffinancialyear 838,250 (40,751) 1,309,057 2,106,556 163,538 2,270,094

consolidated statement of changes in equityFor the financial year ended 30 June 2012

35


AttributabletoequityholdersoftheCompanyNon-

Share Other Retained controlling Total capital reserves earnings Total interests equity Note $’000 $’000 $’000 $’000 $’000 $’000

2011Beginningoffinancialyear, aspreviouslyreported 838,200 (8,800) 865,273 1,694,673 196,431 1,891,104EffectofadoptingINTFRS115 2.1 – (115) (81,342) (81,457) (4,626) (86,083)

Asrestated 838,200 (8,915) 783,931 1,613,216 191,805 1,805,021

Totalcomprehensive (expense)/income – (57,957) 371,377 313,420 28,771 342,191Realisationofreserves – (264) 264 – – –Costofshare-basedpayment 28(a) – 3,254 – 3,254 159 3,413Issueofsharesonexerciseof shareoptions 27 50 – – 50 – 50Reissuanceoftreasuryshares – 15 – 15 – 15Ordinaryandspecialdividendspaid 25 – – (38,957) (38,957) – (38,957)Dividendspaidbysubsidiary companiestonon-controlling interests – – – – (5,139) (5,139)Issueofsharesbyasubsidiary companytonon-controlling interests – – (763) (763) 1,954 1,191Acquisitionofadditionalinterest inasubsidiarycompany – – 5,064 5,064 (16,774) (11,710)Liquidationofsubsidiarycompanies – 335 – 335 (15,261) (14,926)Liquidationofjointventurecompanies – (535) – (535) (599) (1,134)

Endoffinancialyear 838,250 (64,067) 1,120,916 1,895,099 184,916 2,080,015

Ananalysisofthemovementsineachcategorywithin“Otherreserves”ispresentedinNote28.

consolidated statement of changes in equityFor the financial year ended 30 June 2012

36


CashflowsfromoperatingactivitiesTotalprofit 263,225 407,691Adjustmentsfor: Incometaxexpense 36,958 57,984 Depreciationofproperty,plantandequipment 11,938 11,100 Write-offofproperty,plantandequipment 442 389 Write-backofimpairmentonproperty,plantandequipment – (59) Dividendincome (91) (81) Fairvaluegainsoninvestmentproperties (15,713) (74,616) Fairvalue(gains)/lossesonderivativefinancialinstruments (368) 238 Allowanceforforeseeablelossesondevelopmentproperties – 14,840 Dilutionlossoninterestinanassociatedcompany 2,613 1,824 Gainondisposalofproperty,plantandequipment (1,489) (957) Lossondisposalofinvestmentproperty 172 – Gainonliquidationofjointventurecompanies – (1,062) Lossonliquidationofsubsidiarycompanies – 335 Gainoncapitalreductionofjointventurecompanies – (10,201) Reversaloftaxindemnity – (795) Interestincome (8,058) (7,915) Interestexpense 37,161 39,868 Shareofprofitsofassociatedandjointventurecompanies (171,837) (159,346) Share-basedpayment 3,197 3,413 Translationdifferences (17,807) 5,572

Operatingcashflowbeforeworkingcapitalchanges 140,343 288,222

Changesinoperatingassetsandliabilities: Balanceswithassociatedandjointventurecompanies (1,373) 11,958 Developmentproperties 149,423 69,209 Inventories (2,071) (2,589) Tradeandotherreceivablesandothercurrentassets 111,267 (175,505) Tradeandotherpayablesandothernon-currentliabilities 164 16,758

Cashgeneratedfromoperations 397,753 208,053

Incometaxpaid (52,079) (27,927)

Netcashgeneratedfromoperatingactivities 345,674 180,126

consolidated statement of cash flows For the financial year ended 30 June 2012

37



CashflowsfrominvestingactivitiesAcquisitionofadditionalinterestinasubsidiarycompany (3,221) (10,027)Acquisitionofinterestinjointventurecompanies – (9,963)Additionalexpenditureoninvestmentproperty – (4,438)Additionalexpenditureonproperty,plantandequipment – (6,920)Purchasesofproperty,plantandequipment (9,265) (13,967)Proceedsfromdisposalofinvestmentproperty 602 –Proceedsfromdisposalofproperty,plantandequipment 3,210 1,997Distributiontonon-controllinginterestsuponliquidationofa subsidiarycompany (5,292) (261)Proceedsfromliquidationofjointventurecompanies – 2,129Proceedsfromcapitalreductionofjointventurecompanies – 12,201Repaymentofloansbyassociatedand jointventurecompanies 1,809 17,753Dividendsreceived 106,907 20,706Interestreceived 2,991 2,701

Netcashgeneratedfrominvestingactivities 97,741 11,911

CashflowsfromfinancingactivitiesProceedsfromissueofordinaryshares – 50Proceedsfromissueofordinarysharesbyasubsidiarycompany tonon-controllinginterests 171 1,191Reissuanceoftreasuryshares 45 15Repaymentoftheloansfromnon-controllinginterests (14,103) (44,156)Proceedsfromborrowings 274,737 213,907Repaymentofborrowings (231,611) (346,199)Ordinaryandspecialdividendspaid (54,660) (38,957)Dividendspaidtonon-controllinginterests (31,675) (5,139)Interestpaid (44,838) (52,189)

Netcashusedinfinancingactivities (101,934) (271,477)

Netincrease/(decrease)incashandcashequivalents 341,481 (79,440)Cashandcashequivalentsatbeginningoffinancialyear 504,235 594,054Effectsofcurrencytranslationoncashandcashequivalents 2,970 (10,379)

Cashandcashequivalentsatendoffinancialyear 10 848,686 504,235

consolidated statement of cash flowsFor the financial year ended 30 June 2012

38

Thesenotesformanintegralpartofandshouldbereadinconjunctionwiththeaccompanyingfinancialstatements.

1. general information

WingTaiHoldingsLimited(the“Company”)isincorporatedanddomiciledinSingaporeandislistedontheSingaporeExchangeSecuritiesTradingLimited.Theaddressofitsregisteredofficeis3KillineyRoad,#10–01WinslandHouseI,Singapore239519.

TheprincipalactivityoftheCompanyisthatofaninvestmentholdingcompany.TheprincipalactivitiesoftheCompany’ssubsidiarycompaniesareshowninNote35.

2. significant accounting policies

2.1 Basis of preparation

Thesefinancialstatementshavebeenprepared inaccordancewithSingaporeFinancialReportingStandards(“FRS”).Thefinancialstatementshavebeenpreparedunderthehistoricalcostconvention,exceptasdisclosedintheaccountingpoliciesbelow.

Thepreparationoffinancialstatements inconformitywithFRSrequiresmanagementtoexercise its judgement intheprocessofapplyingtheGroup’saccountingpolicies.Italsorequirestheuseofaccountingestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesanddisclosureofcontingentassetsandliabilitiesatthedateofthefinancialstatements,andthereportedamountsofrevenuesandexpensesduringthefinancialyear.Althoughtheseestimatesarebasedonmanagement’sbestknowledgeofcurrenteventsandactions,actualresultsmayultimatelydifferfromthoseestimates.Theareas involvingahigherdegreeof judgementorcomplexityaredisclosed inNotes2.7,2.8and8.

Amendmentsandinterpretationstopublishedstandardseffectivein2012 On1July2011,theGroupadoptedtheamendedFRSandInterpretationstoFRS(“INTFRS”)thataremandatoryfor

applicationfromthatdate.ChangestotheGroup’saccountingpolicieshavebeenmadeasrequired,inaccordancewiththetransitionalprovisionsintherespectiveFRSandINTFRS.

TheFRSandINTFRSthatarerelevanttotheGroupareasfollows:

AmendmenttoFRS24 Related Party Disclosures INTFRS115 Agreements for the Construction of Real Estate

TheadoptionoftheaboveamendedFRSandINTFRSdidnotresultinanysignificantimpactonthefinancialstatementsoftheGroup,exceptforINTFRS115 Agreements for the Construction of Real Estate.

INTFRS115appliesretrospectivelyforannualperiodsbeginningonorafter1July2011.PriortotheadoptionofINTFRS115,revenuefromsalesofdevelopmentproperties(bothSingaporeandoverseasproperties)wasrecognisedusingthepercentage-of-completionmethod.

Upon adoption of INTFRS115, revenue from sale of Singapore residential properties thatwaswithin the scope asdescribedinparagraph2oftheAccompanyingNotecontinuestoberecognisedonapercentage-of-completionmethod.However, forthesaleofoverseaspropertiesandsaleofSingaporeresidentialpropertiesunderthedeferredpaymentscheme,revenueisrecognisedonlyuponcompletionofconstruction.

notes to the financial statementsFor the financial year ended 30 June 2012

39


2. significant accounting policies (continued)2.1 Basis of preparation (continued) Amendmentsandinterpretationstopublishedstandardseffectivein2012 (continued)

Thechangeinaccountingpolicyhasbeenappliedretrospectivelyandthecomparativeshavebeenrestatedaccordingly.Theeffectsonadoptionareasfollows:

ConsolidatedIncomeStatement Group 2012 2011 $’000 $’000

Increase/(decrease)in: –Revenue (113,818) 102,036 –Costofsales (64,547) 36,980 –Shareofprofitsofassociatedandjointventurecompanies 9,936 (4,875) –Incometaxexpense (11,315) 9,891 –Totalprofit (28,020) 50,290

Increase/(decrease)intotalprofitattributableto: –EquityholdersoftheCompany (17,615) 57,197 –Non-controllinginterests (10,405) (6,907)

(28,020) 50,290

Increase/(decrease)in: –Basicearningspershare(cents) (2.25) 7.34 –Dilutedearningspershare(cents) (2.24) 7.30

StatementOfFinancialPosition Group 2011 2010 $’000 $’000

Increase/(decrease)in: –Otherreserves 1,345 (115) –Retainedearnings (25,341) (81,342) –Non-controllinginterests (9,859) (4,626) –Developmentproperties (36,346) (96,883) –Othercurrentassets 8,034 2,206 –Investmentinanassociatedcompany (9,751) (5,808) –Deferredincometaxliabilities – (14,402) –Othernon-currentliabilities (4,208) –


40

2. significant accounting policies (continued)

2.2 Revenue recognition

RevenuefortheGroupcomprisesthefairvalueoftheconsiderationreceivedorreceivableforthesaleofgoodsintheordinarycourseoftheGroup’sactivities.Revenueispresented,netofgoodsandservicestax,rebatesanddiscounts,andaftereliminatingsaleswithintheGroup.

TheGrouprecognisesrevenuewhentheamountofrevenueandrelatedcostcanbereliablymeasured,itisprobablethatfutureeconomicbenefitswillflowtotheentityandwhenthespecificcriteriaforeachoftheGroup’sactivitiesaremetasfollows:

(a) Saleofgoods RevenuefromthesaleofgoodsisrecognisedwhenaGroupentityhasdeliveredtheproductstothecustomer,the

customerhasacceptedtheproductsandcollectabilityoftherelatedreceivableisreasonablyassured,exceptforincomefromthesaleofdevelopmentpropertiesasdisclosedinNote2.8.

(b) Rentalincome Rental incomefromoperatingleases(netofanyincentivesgiventothelessees) isrecognisedonastraight-line

basisovertheleaseterm.

(c) Managementfee Management fee comprises charges for the management and maintenance of properties and finance and

administrationfees.Revenuefrommanagementfeeisrecognisedwhenmanagementservicesarerendered.(d) Dividendincome Dividendincomeisrecognisedwhentherighttoreceivepaymentisestablished.

(e) Interestincome Interestincomeisrecognisedusingtheeffectiveinterestmethod.

2.3 Group accounting

(a) Subsidiarycompanies(i) Consolidation Subsidiarycompaniesareentitiesoverwhich theGrouphaspower togovern thefinancial andoperating

policies,generallyaccompaniedbyashareholdingofmorethanonehalfofthevotingrights.TheexistenceandeffectofpotentialvotingrightsthatarecurrentlyexercisableorconvertibleareconsideredwhenassessingwhethertheGroupcontrolsanotherentity.SubsidiarycompaniesareconsolidatedfromthedateonwhichcontrolistransferredtotheGroup.Theyarede-consolidatedfromthedateonwhichcontrolceases.

Inpreparingtheconsolidatedfinancialstatements,transactions,balancesandunrealisedgainsontransactionsbetweengroupentitiesareeliminated.Unrealisedlossesarealsoeliminatedbutareconsideredanimpairmentindicatorof theasset transferred.AccountingpoliciesofsubsidiarycompanieshavebeenchangedwherenecessarytoensureconsistencywiththeaccountingpoliciesadoptedbytheGroup.

Non-controllinginterestsarethatpartofthenetresultsofoperationsandofnetassetsofasubsidiarycompanyattributabletotheinterestswhicharenotowneddirectlyorindirectlybytheequityholdersoftheCompany.Theyareshownseparatelyintheconsolidatedincomestatement,consolidatedstatementofcomprehensiveincome,consolidatedstatementoffinancialpositionandconsolidatedstatementofchangesinequity.Totalcomprehensiveincomeisattributedtothenon-controllinginterestsbasedontheirrespectiveinterestsinasubsidiarycompany,evenifthisresultsinthenon-controllinginterestshavingadeficitbalance.


41


2. significant accounting policies (continued)2.3 Group accounting (continued)

(a) Subsidiarycompanies(continued)

(ii) Acquisition of businesses TheacquisitionmethodofaccountingisusedtoaccountforbusinesscombinationsbytheGroup.

The consideration transferred for the acquisitionof a subsidiary company comprises the fair valueof theassets transferred, the liabilities incurredand theequity interests issuedby theGroup.Theconsiderationtransferredalsoincludesthefairvalueofanycontingentconsiderationarrangementandthefairvalueofanypre-existingequityinterestinthesubsidiarycompany.

Acquisition-relatedcostsareexpensedasincurred.

Identifiableassetsacquiredandliabilitiesandcontingentliabilitiesassumedinabusinesscombinationare,withlimitedexceptions,measuredinitiallyattheirfairvaluesattheacquisitiondate.

On an acquisition-by-acquisition basis, theGroup recognises any non-controlling interest in the acquireeat thedateofacquisitioneitherat fair valueorat thenon-controlling interest’sproportionateshareof theacquiree’sidentifiablenetassets.

Theexcessoftheconsiderationtransferred,theamountofanynon-controllinginterestintheacquireeandtheacquisition-datefairvalueofanypreviousequityinterestintheacquireeoverthefairvalueoftheidentifiablenetassetsacquiredisrecordedasgoodwill.PleaserefertoNote2.4fortheaccountingpolicyongoodwillonacquisitions.

(iii) Disposals of subsidiary companies or businesses Whenachange in theCompany’sownership interest inasubsidiarycompany results ina lossofcontrol

over the subsidiary company, the assets and liabilities of the subsidiary company including any goodwillare derecognised. Amounts recognised in other comprehensive income in respect of that entity are alsoreclassifiedtotheincomestatementortransferreddirectlytoretainedearningsifrequiredbyaspecificFRS.

Anyretainedinterestintheentityisremeasuredatfairvalue.Thedifferencebetweenthecarryingamountoftheretainedinvestmentatthedatewhencontrolislostanditsfairvalueisrecognisedintheincomestatement.

PleaserefertoNote2.5fortheaccountingpolicyoninvestmentsinsubsidiarycompaniesintheseparatefinancialstatementsoftheCompany.


42

2. significant accounting policies (continued)2.3 Group accounting (continued)

(b) Transactionswithnon-controllinginterests ChangesintheCompany’sownershipinterestinasubsidiarycompanythatdonotresultinalossofcontrolover

thesubsidiarycompanyareaccountedforastransactionswithequityownersoftheGroup.Anydifferencebetweenthechangeinthecarryingamountsofthenon-controllinginterestandthefairvalueoftheconsiderationpaidorreceivedisrecognisedinaseparatereservewithinequityattributabletotheequityholdersoftheCompany.

(c) Associatedandjointventurecompanies 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 venturecompaniesareentitiesoverwhich theGrouphascontractualarrangements to jointlyshare thecontrolover theeconomicactivityoftheentitieswithoneormoreparties.

Investmentsinassociatedandjointventurecompaniesareaccountedforintheconsolidatedfinancialstatementsusingtheequitymethodofaccountinglessimpairmentlosses,ifany.

Investmentsinassociatedandjointventurecompaniesareinitiallyrecognisedatcost.Thecostofanacquisitionismeasuredat the fairvalueof theassetsgiven,equity instruments issuedor liabilities incurredorassumedatthedateofexchange,pluscostsdirectlyattributabletotheacquisition.GoodwillonassociatedandjointventurecompaniesrepresentstheexcessofthecostofacquisitionoftheassociatedandjointventurecompaniesovertheGroup’sshareofthefairvalueoftheidentifiablenetassetsoftheassociatedandjointventurecompaniesandisincludedinthecarryingamountoftheinvestments.PleaserefertoNote2.4fortheaccountingpolicyongoodwillonacquisitions.

Inapplying theequitymethodofaccounting, theGroup’s shareof itsassociatedand joint venturecompanies’post-acquisitionprofitsor lossesarerecognisedintheincomestatementanditsshareofpost-acquisitionothercomprehensive income is recognised in other comprehensive income. These post-acquisitionmovements anddistributionsreceivedfromtheassociatedandjointventurecompaniesareadjustedagainstthecarryingamountoftheinvestments.WhentheGroup’sshareoflossesinanassociatedorjointventurecompanyequalsorexceedsits interest in the associated or joint venture company, including any other unsecured non-current receivables,theGroupdoesnot recognise further losses,unless it hasobligationsorhasmadepaymentsonbehalfof theassociatedorjointventurecompany.

UnrealisedgainsontransactionsbetweentheGroupanditsassociatedandjointventurecompaniesareeliminatedto theextentof theGroup’s interest in theassociatedand joint venturecompanies.Unrealised lossesarealsoeliminatedunless the transactionprovides evidenceof an impairment of the asset transferred. The accountingpoliciesofassociatedandjointventurecompanieshavebeenchangedwherenecessarytoensureconsistencywiththeaccountingpoliciesadoptedbytheGroup.

Gainsandlossesarisingfrompartialdisposalsordilutionsininvestmentsinassociatedandjointventurecompaniesarerecognisedintheincomestatement.

Investments in associated and joint venture companies are derecognised when the Group loses significantinfluence.Any retained interest in theentity is remeasuredat its fairvalue.Thedifferencebetween thecarryingamountoftheretainedinvestmentatthedatewhensignificantinfluenceislostanditsfairvalueisrecognisedintheincomestatement.

PleaserefertoNote2.5fortheaccountingpolicyoninvestmentsinassociatedandjointventurecompaniesintheseparatefinancialstatementsoftheCompany.


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2.4 Goodwill on acquisitions

Goodwillonacquisitionsofsubsidiarycompaniesonorafter1July2009represents theexcessof theconsiderationtransferred,theamountofanynon-controllinginterestintheacquireeandtheacquisition-datefairvalueofanypreviousequityinterestintheacquireeoverthefairvalueoftheidentifiablenetassetsacquired.

Goodwillonacquisitionsofsubsidiarycompaniespriorto1July2009andonacquisitionsofassociatedandjointventurecompaniesrepresentstheexcessofthecostoftheacquisitionsoverthefairvalueoftheGroup’sshareoftheidentifiablenetassetsacquired.

Goodwillonsubsidiarycompaniesisrecognisedseparatelyasintangibleassetsandcarriedatcostlessaccumulatedimpairment losses. Goodwill on associated and joint venture companies is included in the carrying amount of theinvestments.

Gainsandlossesonthedisposalofsubsidiary,associatedandjointventurecompaniesincludethecarryingamountofgoodwillrelatingtotheentitysold,exceptforgoodwillarisingfromacquisitionspriorto1July2001.Suchgoodwillwasadjustedagainstretainedearningsintheyearofacquisitionandisnotrecognisedintheincomestatementondisposal.

2.5 Investments in subsidiary, associated and joint venture companies

Investmentsinsubsidiary,associatedandjointventurecompaniesarecarriedatcostlessaccumulatedimpairmentlossesintheCompany’sstatementoffinancialposition.Ondisposalofinvestmentsinsubsidiary,associatedandjointventurecompanies,thedifferencebetweendisposalproceedsandthecarryingamountsoftheinvestmentsarerecognisedintheincomestatement.

2.6 Property, plant and equipment

(a) Measurement(i) Land and buildings Landandbuildingsareinitiallyrecognisedatcost.

Freeholdand999-year leasehold landaresubsequentlycarriedattherevaluedamounts lessaccumulatedimpairment losses. Buildings and leasehold land are subsequently carried at the revalued amounts lessaccumulateddepreciationandaccumulatedimpairmentlosses.

Landandbuildingsarerevaluedbyindependentprofessionalvaluersonceeverythreeyearsandwhenevertheircarryingamountsarelikelytodiffermateriallyfromtheirrevaluedamounts.Whenanassetisrevalued,anyaccumulateddepreciationatthedateofrevaluationiseliminatedagainstthegrosscarryingamountoftheasset.Thenetamountisthenrestatedtotherevaluedamountoftheasset.

Increases in carrying amounts arising from revaluation, including currency translation differences, arerecognisedinothercomprehensiveincome,unlesstheyoffsetpreviousdecreasesinthecarryingamountsofthesameasset,inwhichcase,theyarerecognisedintheincomestatement.Decreasesincarryingamountsthatoffsetpreviousincreasesofthesameassetarechargedagainstothercomprehensiveincome.Allotherdecreasesincarryingamountsarerecognisedintheincomestatement.

(ii) Other property, plant and equipment Allotheritemsofproperty,plantandequipmentareinitiallyrecognisedatcostandsubsequentlycarriedat

costlessaccumulateddepreciationandaccumulatedimpairmentlosses.


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2. significant accounting policies (continued)2.6 Property, plant and equipment (continued)

(a) Measurement (continued)

(iii) Components of costs Thecostofanitemofproperty,plantandequipmentinitiallyrecognisedincludesitspurchasepriceandany

costthatisdirectlyattributabletobringingtheassettothelocationandconditionnecessaryforittobecapableofoperatinginthemannerintendedbymanagement,includingborrowingcoststhataredirectlyattributabletotheacquisition,constructionorproductionofaqualifyingasset.Theprojectedcostofdismantlement,removalorrestorationisalsorecognisedaspartofthecostofproperty,plantandequipmentiftheobligationforthedismantlement,removalorrestorationisincurredasaconsequenceofeitheracquiringtheassetorusingtheassetforpurposesotherthantoproduceinventories.

(b) Depreciation Freehold and 999-year leasehold land are not depreciated. Depreciation on other items of property, plant and

equipmentiscalculatedusingthestraight-linemethodtoallocatetheirdepreciableamountsovertheirestimatedusefullives.Theannualdepreciationratesareasfollows:

Buildingsandleaseholdland 1–3%orovertheremainingleaseperiod,whicheverisshorterMotorvehicles 20%Officeequipment 10–33%Furnitureandfittings 10%orovertheremainingleaseperiod,whicheverisshorter

Theresidualvalues,estimatedusefullivesanddepreciationmethodofproperty,plantandequipmentarereviewed,andadjustedasappropriate,attheendofeachreportingperiod.Theeffectsofanyrevisionarerecognisedintheincomestatementwhenthechangesarise.

(c) Subsequentexpenditure Subsequentexpenditurerelatingtoproperty,plantandequipmentthathasalreadybeenrecognisedisaddedtothe

carryingamountoftheassetonlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheGroupandthecostoftheitemcanbemeasuredreliably.Allotherrepairandmaintenanceexpensesarerecognisedintheincomestatementwhenincurred.

(d) Disposal Ondisposalofan itemofproperty,plantandequipment, thedifferencebetweenthedisposalproceedsand its

carryingamountisrecognisedintheincomestatement.Anyamountintheassetrevaluationreserverelatingtothatassetistransferredtoretainedearningsdirectly.


45



2.7 Investment properties

Investmentpropertiesareheldforlong-termrentalyieldsand/orforcapitalappreciationandarenotoccupiedsubstantiallybytheGroup.

Investment properties are initially recognised at cost and subsequently carried at fair value, determined annually byindependentprofessionalvaluers.Significantassumptionsarerequiredtodeterminethefairvalue.Changesinfairvaluesarerecognisedintheincomestatement.

Ifaninvestmentpropertybecomessubstantiallyowner-occupied,itisreclassifiedasproperty,plantandequipmentanditsfairvalueatthedateofreclassificationbecomesitscostforaccountingpurposes.

Investmentpropertiesaresubject to renovationsor improvementsat regular intervals.Thecostofmajor renovationsandimprovementsiscapitalised.Thecostofmaintenance,repairsandminorimprovementsischargedtotheincomestatementwhenincurred.

On disposal of an investment property, the difference between the disposal proceeds and the carrying amount isrecognisedintheincomestatement.

2.8 Development properties

(a) Propertiesunderdevelopment Propertiesunderdevelopmentarestatedatcostplusattributableprofits, less foreseeable lossesandprogress

paymentsreceivedandreceivable.Anallowanceismadewheretheestimatednetrealisablevalueofthepropertieshasfallenbelowtheircarryingvalue.

Costincludescostof landandotherdirectandrelatedexpenditure, includinginterestonborrowingsincurredindevelopingtheproperties.Interestandotherrelatedexpenditurearecapitalisedasandwhentheactivitiesthatarenecessarytogettheassetreadyforitsintendeddevelopmentareinprogress.

Salesofdevelopmentpropertiesunderconstructioninrespectofsaleandpurchaseagreementsenteredintopriortocompletionofconstructionarerecognisedwhenthepropertiesaredeliveredtothebuyers,exceptforincaseswherethecontrolandriskandrewardsofthepropertyaretransferredtothebuyersasconstructionprogresses.

Forsalesofdevelopmentpropertiesof theGroup thatarewithin thescopeasdescribed inparagraph2of theAccompanyingNote to INT FRS 115 – Agreements for theConstruction of Real Estate, theGroup recognisesrevenueforsalesofsuchdevelopmentpropertiesbyreferencetothestageofcompletionoftheproperties.

The stage of completion ismeasuredby reference to the physical surveys of constructionwork completed ascertifiedby the architects or quantity surveyors for the individual units sold.When it is probable that the totaldevelopmentcostswillexceedthetotalrevenue,theexpectedlossisrecognisedasexpenseimmediately.

Significantassumptionsarerequiredtoestimatethetotalcontractcosts.Inmakingthisestimate,managementhas

reliedonpastexperienceandtheworkofspecialists.


46

2. significant accounting policies (continued)2.8 Development properties (continued)

(b) Propertiesheldforsale Propertiesheldforsalearestatedatthelowerofcostandnetrealisablevalue.Netrealisablevalueistheestimated

sellingpriceintheordinarycourseofbusinesslesssellingexpenses.

2.9 Impairment of non-financial assets

(a) Goodwill Goodwill recognised separately as an intangible asset is tested for impairment annually andwhenever there is

indicationthatthegoodwillmaybeimpaired.

Forthepurposeofimpairmenttestingofgoodwill,goodwillisallocatedtoeachoftheGroup’scashgeneratingunits(“CGU”)expectedtobenefitfromsynergiesarisingfromthebusinesscombination.

An impairment loss is recognised when the carrying amount of a CGU, including the goodwill, exceeds therecoverableamountoftheCGU.TherecoverableamountofaCGUisthehigheroftheCGU’sfairvaluelesscosttosellandvalue-in-use.ThetotalimpairmentlossofaCGUisallocatedfirsttoreducethecarryingamountofgoodwillallocatedtotheCGUandthentotheotherassetsoftheCGUpro-rataonthebasisofthecarryingamountofeachassetintheCGU.

Animpairmentlossongoodwillisrecognisedintheincomestatementandisnotreversedinasubsequentperiod.

(b) Property,plantandequipment Investmentsinsubsidiary,associatedandjointventurecompanies Property,plantandequipmentandinvestmentsinsubsidiary,associatedandjointventurecompaniesaretestedfor

impairmentwheneverthereisanyobjectiveevidenceorindicationthattheseassetsmaybeimpaired.

Forthepurposeofimpairmenttesting,therecoverableamount(i.e.thehigherofthefairvaluelesscosttosellandthevalue-in-use)isdeterminedonanindividualassetbasisunlesstheassetdoesnotgeneratecashinflowsthatarelargelyindependentofthosefromotherassets.Ifthisisthecase,therecoverableamountisdeterminedfortheCGUtowhichtheassetbelongs.

Iftherecoverableamountoftheasset(orCGU)isestimatedtobelessthanitscarryingamount,thecarryingamountoftheasset(orCGU)isreducedtoitsrecoverableamount.Thedifferencebetweenthecarryingamountandtherecoverableamount isrecognisedasanimpairment lossintheincomestatement,unlesstheasset iscarriedatrevaluedamount,inwhichcase,suchimpairmentlossistreatedasarevaluationdecrease.PleaserefertoNote2.6forthetreatmentofarevaluationdecrease.

An impairment loss foranassetother thangoodwill is reversed if, andonly if, therehasbeenachange in theestimatesusedtodeterminetheasset’srecoverableamountsincethelastimpairmentlosswasrecognised.Thecarryingamountofthisassetisincreasedtoitsrevisedrecoverableamount,providedthatthisamountdoesnotexceed the carrying amount that would have been determined (net of any accumulated depreciation) had noimpairmentlossbeenrecognisedfortheassetinprioryears.

Areversalofimpairmentlossforanassetotherthangoodwill isrecognisedintheincomestatement,unlesstheassetiscarriedatrevaluedamount,inwhichcase,suchreversalistreatedasarevaluationincrease.However,totheextentthatanimpairmentlossonthesamerevaluedassetwaspreviouslyrecognisedintheincomestatement,areversalofthatimpairmentisalsorecognisedintheincomestatement.


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2.10 Financial assets

(a) Classification TheGroupclassifiesitsfinancialassetsinthefollowingcategories:atfairvaluethroughprofitorloss,loansand

receivablesandavailable-for-sale.Theclassificationdependsonthenatureoftheassetsandthepurposeforwhichtheassetswereacquired.Managementdeterminestheclassificationofitsfinancialassetsatinitialrecognition.

(i) Financial assets, at fair value through profit or loss Financialassetsdesignatedasatfairvaluethroughprofitorlossatinceptionarethosethataremanagedand

theirperformancesareevaluatedonafairvaluebasis,inaccordancewithadocumentedGroupinvestmentstrategy.Derivativesarecategorisedasfinancialassetsat fairvalue throughprofitor lossunless theyaredesignatedashedges.Assets in thiscategoryarepresentedascurrentassets if theyareexpected toberealisedwithin12monthsafterthereportingdate.

(ii) Loans and receivables Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenot

quotedinanactivemarket.Theyarepresentedascurrentassets,exceptforthoseexpectedtoberealisedlater than 12 months after the end of the reporting period which are presented as non-current assets.Loansandreceivablesarepresentedas“cashandcashequivalents”and“tradeandotherreceivables”onthestatementof financialpositionandalso includesdepositsandsundry receivablesclassifiedas “othercurrentassets”.

(iii) Available-for-sale financial assets Available-for-salefinancialassetsarenon-derivativesthatareeitherdesignatedinthiscategoryornotclassified

in any of the other categories. They are presented as non-current assets unlessmanagement intends todisposeoftheassetswithin12monthsaftertheendofthereportingperiod.

(b) Recognitionandderecognition Regularwaypurchasesandsalesoffinancialassetsarerecognisedontrade-date–thedateonwhichtheGroup

commitstopurchaseorselltheasset.

FinancialassetsarederecognisedwhentherightstoreceivecashflowsfromthefinancialassetshaveexpiredorhavebeentransferredandtheGrouphastransferredsubstantiallyallrisksandrewardsofownership.Ondisposalofafinancialasset,thedifferencebetweenthecarryingamountandthesaleproceedsisrecognisedintheincomestatement.Anyamountinthefairvaluereserverelatingtothatassetistransferredtotheincomestatement.

(c) Initialmeasurement Financialassetsareinitiallyrecognisedatfairvalueplustransactioncostsexceptforfinancialassetsatfairvalue

throughprofitorloss,whicharerecognisedatfairvalue.Transactioncostsforfinancialassetsatfairvaluethroughprofitorlossarerecognisedimmediatelyintheincomestatement.


48

2. significant accounting policies (continued)2.10 Financial assets (continued)

(d) Subsequentmeasurement Financialassets,bothavailable-for-saleandatfairvaluethroughprofitorlossaresubsequentlycarriedatfairvalue.

Loansandreceivablesaresubsequentlycarriedatamortisedcostusingtheeffectiveinterestmethod.

Changesinthefairvaluesoffinancialassetsatfairvaluethroughprofitor lossincludingtheeffectsofcurrencytranslation,interestanddividendsarerecognisedintheincomestatementwhenthechangesarise.

Interest and dividend income on available-for-sale financial assets are recognised separately in the incomestatement.Changesinthefairvaluesofavailable-for-saleequitysecurities(i.e.non-monetaryitems)arerecognisedinothercomprehensiveincome,togetherwiththerelatedcurrencytranslationdifferences.

(e) Impairment TheGroupassessesattheendofeachreportingperiodwhetherthereisobjectiveevidencethatafinancialassetor

agroupoffinancialassetsisimpairedandrecognisesanallowanceforimpairmentwhensuchevidenceexists.

(i) Loans and receivables Significantfinancialdifficultiesofthedebtor,probabilitythatthedebtorwillenterbankruptcy,anddefaultor

significantdelayinpaymentsareobjectiveevidencethatthesefinancialassetsareimpaired.

Thecarryingamountoftheseassetsisreducedthroughtheuseofanimpairmentallowanceaccountwhichiscalculatedasthedifferencebetweenthecarryingamountandthepresentvalueofestimatedfuturecashflows,discountedattheoriginaleffective interestrate.Whentheassetbecomesuncollectible, it iswrittenoffagainsttheallowanceaccount.Subsequentrecoveriesofamountspreviouslywrittenoffarerecognisedagainstthesamelineitemintheincomestatement.

Theallowanceforimpairmentlossaccountisreducedthroughtheincomestatementinasubsequentperiodwhentheamountofimpairmentlossdecreasesandtherelateddecreasecanbeobjectivelymeasured.Thecarryingamountoftheassetpreviouslyimpairedisincreasedtotheextentthatthenewcarryingamountdoesnotexceedtheamortisedcosthadnoimpairmentbeenrecognisedinpriorperiods.

(ii) Available-for-sale financial assets Asignificantorprolongeddecline inthefairvalueofanequitysecuritybelowitscost isconsideredasan

indicatorthattheavailable-for-salefinancialassetisimpaired.

If any evidenceof impairment exists, the cumulative loss thatwas recognised in the fair value reserve istransferredtotheincomestatement.Thecumulativelossismeasuredasthedifferencebetweentheacquisitioncost(netofanyprincipalrepaymentsandamortisation)andthecurrentfairvalue,lessanyimpairmentlosspreviouslyrecognisedintheincomestatement.Theimpairmentlossesrecognisedintheincomestatementonequitysecuritiesarenotreversedthroughtheincomestatement.


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2.11 Financial guarantees

TheCompanyhasissuedcorporateguaranteestobanksforborrowingsofitssubsidiaryandjointventurecompanies.TheseguaranteesarefinancialguaranteesastheyrequiretheCompanytoreimbursethebanksifthesubsidiaryandjointventurecompaniesfailtomakeprincipalorinterestpaymentswhendueinaccordancewiththetermsoftheirborrowings.

Financialguaranteesare initially recognisedat their fairvaluesplus transactioncosts in theCompany’sstatementoffinancialposition.

Financialguaranteesaresubsequentlyamortisedto the incomestatementover theperiodof thesubsidiaryand jointventurecompanies’borrowings,unlessitisprobablethattheCompanywillreimbursethebankforanamounthigherthantheunamortisedamount.Inthiscase,thefinancialguaranteesshallbecarriedattheexpectedamountpayabletothebankintheCompany’sstatementoffinancialposition.

Intra-grouptransactionsareeliminatedonconsolidation.

2.12 Inventories

Inventoriesarecarriedat the lowerof costandnet realisable value.Cost isdeterminedusing theweightedaveragemethod.Thecostoffinishedgoodsandwork-in-progresscomprisesrawmaterials,directlabour,otherdirectcostsandrelatedproductionoverheads(basedonnormaloperatingcapacity)butexcludesborrowingcosts.Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslessapplicablevariablesellingexpenses.

2.13 Borrowings and borrowing costs

BorrowingsarepresentedascurrentliabilitiesunlesstheGrouphasanunconditionalrighttodefersettlementforatleast12monthsaftertheendofthereportingperiod.

Borrowingsare initially recognisedat fairvalue (netof transactioncosts)andsubsequentlycarriedatamortisedcost.Anydifferencebetweentheproceeds(netoftransactioncosts)andtheredemptionvalueisrecognisedintheincomestatementovertheperiodoftheborrowingsusingtheeffectiveinterestmethod.

Borrowingcostsarerecognisedintheincomestatementusingtheeffectiveinterestmethodexceptforthosecoststhataredirectlyattributabletoborrowingsacquiredspecificallyfortheconstructionordevelopmentofproperties.Theactualborrowingcostsincurredduringtheperioduptotheissuanceofthetemporaryoccupationpermitlessanyinvestmentincomeontemporaryinvestmentoftheseborrowings,arecapitalisedinthecostofthepropertyunderdevelopment.


50


2.14 Derivative financial instruments and hedging activities

Aderivativefinancial instrument is initially recognisedat its fair valueon thedate thecontract isentered intoand issubsequently carried at its fair value. Themethodof recognising the resulting gain or lossdependsonwhether thederivativeisdesignatedasahedginginstrument,andifso,thenatureoftheitembeinghedged.

Fairvaluechangesonderivativesthatarenotdesignatedordonotqualifyforhedgeaccountingarerecognisedintheincomestatementwhenthechangesarise.

TheGroupdocumentsattheinceptionofthetransactiontherelationshipbetweenthehedginginstrumentsandhedgeditems,aswellasitsriskmanagementobjectiveandstrategiesforundertakingvarioushedgetransactions.TheGroupalsodocumentsitsassessment,bothathedgeinceptionandonanongoingbasis,onwhetherthederivativesdesignatedashedginginstrumentsarehighlyeffectiveinoffsettingchangesincashflowsofthehedgeditems.

Thecarryingamountofaderivativedesignatedasahedgeispresentedasanon-currentassetorliabilityiftheremainingexpectedlifeofthehedgeditemismorethan12months,andasacurrentassetorliability,iftheremainingexpectedlifeofthehedgeditemislessthan12months.

TheGrouphasenteredintointerestrateandcrosscurrencyswapsthatarecashflowhedgesfortheGroup’sexposuretointerestrateandcurrencyrisksonitsborrowings.ThesecontractsentitletheGrouptoreceiveinterestatfloatingratesonnotionalprincipalamountsandobligetheGrouptopayinterestatfixedratesonthenotionalprincipalamountsthataredenominatedinthesameordifferentcurrency,thusallowingtheGrouptoraiseborrowingsatfloatingratesandswapthemintofixedratesthatarelowerthanthoseavailableiftheyborrowedatfixedratesdirectly.

Thefairvaluechangesontheeffectiveportionofinterestrateandcrosscurrencyswapsdesignatedascashflowhedgesarerecognisedinothercomprehensiveincomeandtransferredtotheincomestatementwhentheinterestexpenseontheborrowingsarerecognisedintheincomestatement.Thefairvaluechangesontheineffectiveportionoftheinterestrateandcrosscurrencyswapsarerecognisedimmediatelyintheincomestatement.

Currency forwardsareentered into tomanageexposure tofluctuations in foreigncurrencyexchange ratesonhighlyprobableforecasttransactions.Thesecontractsdonotqualifyforhedgeaccounting.

2.15 Fair value estimation of financial assets and liabilities

Thefairvaluesoffinancialinstrumentstradedinactivemarkets(suchasexchange-tradedandover-the-countersecuritiesandderivatives)arebasedonquotedmarketpricesattheendofthereportingperiod.Thequotedmarketpricesusedforfinancialassetsarethecurrentbidprices;theappropriatequotedmarketpricesforfinancialliabilitiesarethecurrentaskingprices.

The fair values of financial instruments that are not traded in an active market are determined by using valuationtechniques.TheGroupusesavarietyofmethodsandmakesassumptionsthatarebasedonmarketconditionsexistingattheendofeachreportingperiod.Whereappropriate,quotedmarketpricesordealerquotesforsimilarinstrumentsareused.Valuationtechniques,suchasdiscountedcashflowanalyses,arealsousedtodeterminethefairvaluesofthefinancialinstruments.

The fairvaluesof interest rateandcrosscurrencyswapsarecalculatedas thepresentvalueof theestimated futurecashflowsdiscountedatactivelyquotedinterestandforwardexchangerates.Thefairvaluesofcurrencyforwardsaredeterminedusingactivelyquotedforwardexchangerates.


51


2. significant accounting policies (continued)2.15 Fair value estimation of financial assets and liabilities (continued)

ThefairvaluesoffinancialliabilitiescarriedatamortisedcostareestimatedbydiscountingthefuturecontractualcashflowsatthecurrentmarketinterestratesthatareavailabletotheGroupforsimilarfinancialliabilities.

Thefairvaluesofcurrentfinancialassetsandliabilitiescarriedatamortisedcostapproximatetheircarryingamounts.

2.16 Operating leases

(a) WhentheGroupisthelessee: Leaseswheresubstantiallyallrisksandrewardsincidentaltoownershipareretainedbythelessorsareclassified

asoperatingleases.Paymentsmadeunderoperatingleases(netofanyincentivesreceivedfromthelessors)arerecognisedintheincomestatementonastraight-linebasisovertheperiodofthelease.

Contingentrentsarerecognisedasanexpenseintheincomestatementwhenincurred.

(b) WhentheGroupisthelessor: LeasesofinvestmentpropertieswheretheGroupretainssubstantiallyallrisksandrewardsincidentaltoownership

areclassifiedasoperatingleases.Rentalincomefromoperatingleases(netofanyincentivesgiventothelessees)isrecognisedintheincomestatementonastraight-linebasisovertheleaseterm.

2.17 Income taxes

Currentincometaxforcurrentandpriorperiodsisrecognisedattheamountexpectedtobepaidtoorberecoveredfromthetaxauthorities,usingthetaxratesandtaxlawsthathavebeenenactedorsubstantivelyenactedbytheendofthereportingperiod.

Deferredincometaxisrecognisedforalltemporarydifferencesarisingbetweenthetaxbasesofassetsandliabilitiesandtheircarryingamountsinthefinancialstatementsexceptwhenthedeferredincometaxarisesfromtheinitialrecognitionofgoodwilloranassetorliabilityinatransactionthatisnotabusinesscombinationandaffectsneitheraccountingnortaxableprofitorlossatthetimeofthetransaction.

Adeferredincometaxliabilityisrecognisedontemporarydifferencesarisingoninvestmentsinsubsidiary,associatedandjointventurecompanies,exceptwheretheGroupisabletocontrolthetimingofthereversalofthetemporarydifferenceanditisprobablethatthetemporarydifferencewillnotreverseintheforeseeablefuture.

Adeferredincometaxassetisrecognisedtotheextentthatitisprobablethatfuturetaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencesandtaxlossescanbeutilised.

Deferredincometaxismeasured:(a) atthetaxratesthatareexpectedtoapplywhentherelateddeferredincometaxassetisrealisedorthedeferred

incometaxliabilityissettled,basedontaxratesandtaxlawsthathavebeenenactedorsubstantivelyenactedbytheendofthereportingperiod;and


52

2. significant accounting policies (continued)2.17 Income taxes (continued)

(b) basedon the taxconsequence thatwill follow from themanner inwhich theGroupexpects,at theendof thereportingperiod,torecoverorsettlethecarryingamountsofitsassetsandliabilities.

Currentanddeferredincometaxesarerecognisedasincomeorexpenseintheincomestatement,excepttotheextentthatthetaxarisesfromabusinesscombinationoratransactionwhichisrecogniseddirectlyinequity.Deferredincometaxarisingfromabusinesscombinationisadjustedagainstgoodwillonacquisition.

2.18 Provisions

ProvisionsarerecognisedwhentheGrouphasapresent legalorconstructiveobligationasaresultofpastevents, itismore likelythannotthatanoutflowofresourceswillberequiredtosettletheobligationandtheamounthasbeenreliablyestimated.

2.19 Trade and other payables

Tradeandotherpayablesare initially recognisedat fairvalue,andsubsequentlycarriedatamortisedcost,using theeffectiveinterestmethod.

2.20 Employee compensation

(a) Definedcontributionplans Definedcontributionplansarepost-employmentbenefitplansunderwhichtheGrouppaysfixedcontributionsinto

separateentitiessuchastheCentralProvidentFundonamandatory,contractualorvoluntarybasis.TheGrouphasnofurtherpaymentobligationsoncethecontributionshavebeenpaid.

(b) Share-basedpayment TheGroupoperatesanequity-settled,share-basedpaymentplan.Thevalueof theemployeeservicesreceived

inexchangeforthegrantofsharesandshareoptionsischargedtotheincomestatementwithacorrespondingincreaseintheshare-basedpaymentreserveoverthevestingperiod.Thetotalamounttoberecognisedoverthevestingperiodisdeterminedbyreferencetothefairvalueofthesharesandshareoptionsgrantedonthedateofthegrant.Non-marketvestingconditionsareincludedintheestimationofthenumberofsharesandshareoptionsthatareexpectedtovestonthevestingdate.Attheendofeachreportingperiod,theGrouprevisesitsestimatesofthenumberofsharesandshareoptionsthatareexpectedtovestonthevestingdateandrecognisestheimpactoftherevisionoftheestimatesintheincomestatement,withacorrespondingadjustmenttotheshare-basedpaymentreserveovertheremainingvestingperiod.


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2.21 Currency translation

(a) Functionalandpresentationcurrency ItemsincludedinthefinancialstatementsofeachentityintheGrouparemeasuredusingthecurrencyoftheprimary

economicenvironmentinwhichtheentityoperates(“functionalcurrency”).ThefinancialstatementsarepresentedinSingaporeDollars,whichisthefunctionalcurrencyoftheCompany.

(b) Transactionsandbalances Transactionsinacurrencyotherthanthefunctionalcurrency(“foreigncurrency”)aretranslatedintothefunctional

currencyusingtheexchangeratesatthedatesofthetransactions.Currencytranslationdifferencesresultingfromthesettlementofsuchtransactionsandfromthetranslationofmonetaryassetsandliabilitiesdenominatedinforeigncurrenciesattheclosingratesattheendofthereportingperiodarerecognisedintheincomestatement,unlesstheyarisefromborrowingsinforeigncurrenciesqualifyingasnetinvestmentinforeignoperations.Thosecurrencytranslationdifferencesarerecognisedinothercomprehensiveincomeintheconsolidatedfinancialstatementsandtransferredtotheincomestatementaspartofthegainorlossondisposaloftheforeignoperation.

Non-monetaryitemsmeasuredatfairvaluesinforeigncurrenciesaretranslatedusingtheexchangeratesatthedatewhenthefairvaluesaredetermined.

(c) TranslationofGroupentities’financialstatements The results and financial position of all the Group entities that have a functional currency different from the

presentationcurrencyaretranslatedintothepresentationcurrencyasfollows:

(i) Assetsandliabilitiesaretranslatedattheclosingexchangeratesattheendofthereportingperiod;

(ii) Income and expenses are translated at average exchange rates (unless the average is not a reasonableapproximationofthecumulativeeffectoftheratesprevailingonthetransactiondates,inwhichcaseincomeandexpensesaretranslatedusingtheexchangeratesatthedatesofthetransactions);and

(iii) Allresultingcurrencytranslationdifferencesarerecognisedinothercomprehensiveincome.

Goodwill and fair value adjustments arising on the acquisition of foreign operations are treated as assets andliabilitiesoftheforeignoperationsandtranslatedattheclosingratesattheendofthereportingperiod.


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2.22 Segment reporting

OperatingsegmentsarereportedinamannerconsistentwiththeGroup’sprincipalactivitiesandinternalreportingprovidedtomanagementwhoareresponsibleforallocatingresourcesandassessingtheperformanceoftheoperatingsegments.

Salesbetweensegmentsarecarriedoutatarm’slength.Therevenuefromexternalpartiesreportedtomanagementismeasuredinamannerconsistentwiththatintheincomestatement.

Managementassesses theperformanceof theoperatingsegmentsbasedonameasureofEarnings/(Losses)beforeinterestandtax(“EBIT”).Interestincomeandfinancecostsarenotallocatedtothesegments.

Theamountsprovidedtomanagementwithrespecttototalassetsandliabilitiesaremeasuredinamannerconsistentwiththatofthefinancialstatements.Theseassetsandliabilitiesareallocatedbasedontheoperationsofthesegment.Allassetsandliabilitiesareallocatedtoreportablesegmentsotherthantaxrecoverableandcurrentanddeferredincometax.

Segmentcapitalexpenditureisthetotalcostincurredduringthefinancialyeartoacquireproperty,plantandequipmentandinvestmentproperties.

2.23 Cash and cash equivalents

Forthepurposeofpresentationintheconsolidatedstatementofcashflows,cashandcashequivalentsincludeinterest-bearingbankaccounts,fixeddepositswithfinancialinstitutionsandcashandbankbalances,whicharesubjecttoaninsignificantriskofchangeinvalue.

2.24 Share capital and treasury shares

Ordinarysharesareclassifiedasequity.Incrementalcostsdirectlyattributabletotheissuanceofnewordinarysharesaredeductedagainstthesharecapitalaccount.

When any entity within the Group purchases the Company’s ordinary shares (“treasury shares”), the considerationpaid includinganydirectlyattributable incrementalcost ispresentedasacomponentwithinequityattributabletotheCompany’sequityholders,untiltheyarecancelled,soldorreissued.

Whentreasurysharesaresubsequentlycancelled, thecostof treasurysharesaredeductedagainst thesharecapitalaccountifthesharesarepurchasedoutofcapitaloftheCompany,oragainsttheretainedearningsoftheCompanyifthesharesarepurchasedoutofearningsoftheCompany.

Whentreasurysharesaresubsequentlysoldorreissuedpursuanttotheemployeeshareplansandshareoptionscheme,thecostofthetreasurysharesisreversedfromthetreasuryshareaccount.

2.25 Dividends to equity holders of the Company

DividendstoequityholdersoftheCompanyarerecognisedwhenthedividendsareapprovedforpayment.


55


3. revenue

Group 2012 2011 (restated) $’000 $’000

Revenuefromsaleof: –developmentproperties 363,919 503,130 –goods 219,126 205,895 Rentalincome 37,891 37,055 Managementfees 3,861 4,948 Dividendincome 91 81

624,888 751,109

4. other gains/(losses) – net

Group 2012 2011 $’000 $’000

Interestincomefrom: –jointventurecompanies 5,140 5,257 –banks 2,918 2,658 Gainondisposalofproperty,plantandequipment 1,489 957 Fairvaluegainsoninvestmentproperties 15,713 74,616 Lossondisposalofinvestmentproperty (172) – Lossondefaultedsalesofdevelopmentproperties (6,540) – Dilutionlossoninterestinanassociatedcompany (2,613) (1,824) Allowanceforforeseeablelossesondevelopmentproperties – (14,840) Gainoncapitalreductionofjointventurecompanies – 10,201 Othermiscellaneousgains 2,558 3,812

18,493 80,837


56

5. expenses by nature

Group 2012 2011 $’000 $’000

Depreciationofproperty,plantandequipment 11,938 11,100 Employeecompensation 74,101 75,892 Auditors’remunerationpaid/payableto: –auditoroftheCompany 325 338 –otherauditors 210 234 Otherfeespaid/payableto: –auditoroftheCompany 20 7 –otherauditors 230 69 Fairvalue(gains)/lossesonderivativefinancialinstruments (368) 238 Write-backofimpairmentonproperty,plantandequipment – (59) Write-downofinventory 1,188 1,108 Write-offofproperty,plantandequipment 442 389 Rentalexpenseonoperatingleases 52,017 48,219 Foreignexchange(gain)/loss (12,506) 1,387 Developmentcostincludedincostofsales 196,510 188,446 Rawmaterialsandfinishedgoodsincludedincostofsales 81,497 78,863

Included in the Group’s rental expense on operating leases is contingent rent amounting to $3.2 million (2011: $3.1million).

6. employee compensation

Group 2012 2011 $’000 $’000

Wagesandsalaries(includingdirectors’remuneration) 63,962 66,750 Employer’scontributiontodefinedcontributionplans includingCentralProvidentFund 6,942 5,729 Share-basedpayment 3,197 3,413

74,101 75,892

PleaserefertoNote33(b)fordirectors’remuneration.


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7. finance costs

Group 2012 2011 $’000 $’000

Interestexpensetobanks 37,161 39,868

8. income taxes

(a) Incometaxexpense Group 2012 2011 (restated) $’000 $’000

Taxexpenseattributabletoprofitismadeupof: Currentincometax –Singapore 47,485 50,634 –Foreign 7,441 7,999

54,926 58,633 Deferredincometax (18,026) 12,784

36,900 71,417 Under/(over)provisioninprecedingfinancialyears –Currentincometax 2,726 (2,161) –Deferredincometax (2,668) (11,272)

36,958 57,984

TheGroup issubject to income taxes innumerous jurisdictions.Significant judgement is required inestimatingthe capital allowancesand thedeductibility of certain expenses indetermining theprovision for income taxes.Therearemany transactionsandcalculationsduring theordinarycourseofbusiness forwhich theultimate taxdeterminationisuncertain.TheGrouprecognisesliabilitiesforanticipatedtaxauditissuesbasedonestimatesofwhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecorded,suchdifferenceswillimpactthecurrentanddeferredincometaxprovisionsintheperiodinwhichsuchdeterminationismade.


58

8. income taxes (continued)(a) Incometaxexpense (continued) TheincometaxexpenseonprofitdiffersfromtheamountthatwouldariseusingtheSingaporestandardrateof

incometaxasexplainedbelow:

Group 2012 2011 (restated) % %

Singaporestandardrateofincometax 17.0 17.0 Differenttaxratesinothercountries 0.5 0.6 Expensesnotdeductiblefortaxpurposes 3.6 2.8 Incomenotsubjecttotax (10.8) (6.2) Taxlossesnotrecognised 2.0 1.2 Utilisationofpreviouslyunrecognisedtaxlossesandcapitalallowances – (0.1)

12.3 15.3

Thetaxchargerelatingtoeachcomponentofothercomprehensiveincome/(expense)isasfollows:

Group Beforetax Taxcharge Aftertax $’000 $’000 $’000

2012 Cashflowhedge 13,668 – 13,668 Currencytranslationdifferences 595 – 595 Revaluationgainsonproperty,plantandequipment 10,964 (1,475) 9,489 Shareofothercomprehensiveexpenseof associatedandjointventurecompanies (4,429) – (4,429)

20,798 (1,475) 19,323

2011(restated) Cashflowhedge (5,403) – (5,403) Currencytranslationdifferences (67,147) – (67,147) Revaluationgainsonproperty,plantandequipment 10,340 (1,894) 8,446 Shareofothercomprehensiveincomeof associatedandjointventurecompanies (1,396) – (1,396)

(63,606) (1,894) (65,500)


59


8. income taxes (continued)

(b) Deferredincometaxes Deferredincometaxassetsandliabilitiesareoffsetwhenthereisalegallyenforceablerighttooffsetcurrentincome

tax assets against current income tax liabilities andwhen the deferred income taxes relate to the same fiscalauthority.Theamounts,determinedafterappropriateoffsetting,areshownonthestatementoffinancialpositionasfollows:

Group 2012 2011 2010 (restated) $’000 $’000 $’000

Deferredincometaxliabilities tobesettledafteroneyear 66,389 85,665 82,839

Deferredincometaxassetsarerecognisedfortaxlossescarriedforwardtotheextentthatrealisationoftherelatedtaxbenefitsthroughfuturetaxableprofitsisprobable.TheGrouphadunrecognisedtaxlossesof$175.6million(2011:$179.0million)attheendofthereportingperiodwhichcanbecarriedforwardandusedtooffsetagainstfuture taxable incomesubject tomeetingcertainstatutory requirementsbythosecompanieswithunutilisedtaxlossesintheirrespectivecountriesofincorporation.Thesetaxlosseshavenoexpirydate.


60

8. income taxes (continued)(b) Deferredincometaxes (continued)

Themovement indeferred income taxassetsand liabilities (prior tooffsettingofbalanceswithin the same taxjurisdiction)duringthefinancialyearisasfollows:

Deferred income tax liabilities–Group

Recognition Accelerated ofprofitson tax Revaluation percentage depreciation gains ofcompletion Others Total $’000 $’000 $’000 $’000 $’000

2012 Beginningoffinancialyear 6,331 51,846 27,746 156 86,079 Currencytranslationdifferences (13) 137 – – 124 Charged/(credited)to: –othercomprehensiveincome – 1,258 – – 1,258 –incomestatement (1,239) 3,541 (21,426) 71 (19,053)

Endoffinancialyear 5,079 56,782 6,320 227 68,408

2011(restated) Beginningoffinancialyear 4,898 49,181 29,795 358 84,232 Currencytranslationdifferences (75) (521) – (4) (600) Charged/(credited)to: –othercomprehensiveincome – 1,894 – – 1,894 –incomestatement 1,508 1,292 (2,049) (198) 553

Endoffinancialyear 6,331 51,846 27,746 156 86,079

Deferred income tax assets–Group

Accelerated tax depreciation Provisions Taxlosses Others Total $’000 $’000 $’000 $’000 $’000

2012 Beginningoffinancialyear – 19 331 64 414 Currencytranslationdifferences – – (5) (30) (35) Creditedtoincomestatement – – 70 1,570 1,640

Endoffinancialyear – 19 396 1,604 2,019

2011 Beginningoffinancialyear 1,126 20 247 – 1,393 Currencytranslationdifferences – (1) (17) (2) (20) (Charged)/creditedto incomestatement (1,126) – 101 66 (959)

Endoffinancialyear – 19 331 64 414


61


9. earnings per share

(a) Basicearningspershare BasicearningspershareiscalculatedbydividingthenetprofitattributabletoequityholdersoftheCompanybythe

weightedaveragenumberofordinarysharesinissueduringthefinancialyear.

Group 2012 2011 (restated)

NetprofitattributabletoequityholdersoftheCompany($’000) 242,175 371,377 Weightedaveragenumberofordinarysharesinissuefor basicearningspershare(’000) 780,803 779,181

Basicearningspershare(cents) 31.02 47.66

(b) Dilutedearningspershare Dilutedearningspershareiscalculatedbyadjustingtheweightedaveragenumberofordinarysharesinissueto

assumeissuanceofalldilutivepotentialordinarysharesfromshareplansandshareoptions.Acalculationisdonetodeterminethenumberofsharesthatcouldhavebeenacquiredatfairvalue(determinedastheaveragesharepriceoftheCompany’ssharesforthefinancialyear)basedonthemonetaryvalueofthesubscriptionrightsattachedtooutstandingshareoptions.Thenumberofsharescalculatedasaboveiscomparedwiththenumberofsharesthatwouldhavebeenissuedassumingtheexerciseoftheshareoptions.Thedifferenceisaddedtothedenominatorasanissueofordinarysharesfornoconsideration.

Group 2012 2011 (restated) $’000 $’000

NetprofitattributabletoequityholdersoftheCompany 242,175 371,377 Adjustmentsforshareoptionsof: –asubsidiarycompany (20) (77) –anassociatedcompany (597) (568)

Netprofitusedtodeterminedilutedearningspershare 241,558 370,732

’000 ’000

Weightedaveragenumberofordinarysharesinissueforbasicearningspershare 780,803 779,181 Adjustmentsfor: –shareplans 3,750 3,758 –shareoptions 79 287

Numberofordinarysharesusedtodeterminedilutedearningspershare 784,632 783,226

Dilutedearningspershare(cents) 30.79 47.33


62

10. cash and cash equivalents Group Company 2012 2011 2012 2011 $’000 $’000 $’000 $’000

Fixeddepositswithfinancialinstitutions 694,293 411,818 402,350 173,971 Cashandbankbalances 154,393 92,417 39,310 15,020

848,686 504,235 441,660 188,991

Included in cash and cash equivalents of theGroup are amounts held underHousingDevelopers (Project Account)(Amendment)Rules1997,totalling$65.0million(2011:$70.9million),theuseofwhichissubjecttorestrictionsimposedbytheaforementionedrules.

Thecarryingamountsofcashandcashequivalentsapproximatedtheirfairvalues.

11. derivative financial instruments

Group Company Contract Fairvalue Contract notional (liability)/ notional Fairvalue amount asset amount liability $’000 $’000 $’000 $’000

2012 Cashflowhedges –Interestrateandcrosscurrencyswaps 375,703 (20,738) 125,000 (3,503) Non-hedginginstruments –Currencyforwards 10,369 69 – –

(20,669) (3,503)

2011 Cash flow hedges –Interestrateandcrosscurrencyswaps 530,252 (33,817) 125,000 (6,286) Non-hedging instruments –Currencyforwards 10,331 (299) – –

(34,116) (6,286)

Asat30June2012,thefixedinterestrateonHKDinterestrateswapis5.5%(2011:4.4%)perannum,thefixedinterestrateonUSDinterestrateswapis2.8%(2011:2.8%)perannumandthefixedinterestratesonSGDinterestrateswapsvaryfrom2.5%to5.5%(2011:2.4%to5.5%)perannum.ThemainfloatingratesareHongKongInterbankOfferedRate,LondonInterbankOfferedRateandSingaporeSwapOfferedRate.

InterestrateswapsareenteredintotohedgefloatingrateborrowingsthatwillmaturebetweenAugust2012toOctober2014.Fairvaluegainsandlossesontheinterestrateswapsrecognisedinthecashflowhedgereservearereclassifiedtotheincomestatementaspartoffinancecostsorcapitalisedinthecostsofthepropertiesunderdevelopmentovertheperiodoftheborrowings.

PleaserefertoNote2.14fordetailsofthefinancialinstrumentsandhedgingpolicies.


63


12. trade and other receivables – current Group Company 2012 2011 2012 2011 $’000 $’000 $’000 $’000

Tradereceivables 57,033 187,749 – – Allowanceforimpairmentofreceivables (245) (920) – –

56,788 186,829 – –

Duefromsubsidiarycompanies –non-trade[Note12(i)] – – 621,718 436,749 Allowanceforimpairmentofreceivables – – (185,179) (159,821)

– – 436,539 276,928

Duefromassociatedandjointventurecompanies –non-trade[Note12(ii)] 24,491 18,144 360 356

Duefromnon-controllinginterests –non-trade[Note12(ii)] 2,125 4,892 – –

Dividendreceivable – 2,786 – –

Totalcurrentreceivables 83,404 212,651 436,899 277,284

(i) Amountsduefromsubsidiarycompaniesareunsecuredandrepayableondemand.Includedintheamountsduefromsubsidiarycompaniesarefixedinterestratereceivablesof$236.8million(2011:$223.7million).

(ii) Amountsduefromassociatedandjointventurecompaniesandnon-controllinginterestsareunsecured,interest-freeandrepayableondemand.

Thecarryingamountsofcurrenttradeandotherreceivablesapproximatedtheirfairvalues.


64

13. inventories

Group 2012 2011 $’000 $’000

Rawmaterials 471 918 Work-in-progress 73 68 Finishedgoods 20,227 17,798

20,771 18,784

The cost of inventories recognised as expense and included in “cost of sales” amounted to $81.5 million (2011: $78.9million).

14. development properties

Group 2012 2011 2010 (restated) (restated) $’000 $’000 $’000

Propertiesunderdevelopment –Land,atcost 712,791 1,011,084 919,307 –Developmentcosts 452,907 531,074 455,178 –Overheadexpenditurecapitalised 73,064 142,269 128,329

1,238,762 1,684,427 1,502,814 –Attributableprofits 41,841 468,534 310,790 –Allowanceforforeseeablelosses (76,973) (75,200) (67,687)

1,203,630 2,077,761 1,745,917 –Progresspaymentsreceivedandreceivable (323,641) (980,440) (438,737)

879,989 1,097,321 1,307,180 Propertiesheldforsale 213,150 141,484 18,939

1,093,139 1,238,805 1,326,119

Valueofpropertiesunderdevelopmentmortgagedtosecure longtermbankingfacilitiesgranted(Note24) 737,917 867,032 1,058,454

Totalinterestcapitalisedduringthefinancialyear 9,173 11,071 21,618


65


14. development properties (continued)

Themajordevelopmentpropertiesareasfollows:

%of Gross Group’s completion Expected Land floor interestin Typeof at completion area area property Location development Tenure 30.06.2012 date (Sqm) (Sqm) (%)

Singapore HeliosResidences 140unitsof Freehold 100 n/a 7,399 20,717 100 atCairnhillCircle apartments BelleVue 176unitsof Freehold 100 n/a 23,004 32,205 60 Residences condominium atOxleyWalk housing L’VIV 147unitsof Freehold 33 2013 3,984 11,156 100 atNewtonRoad apartments LeNouvelArdmore 43unitsof Freehold 24 2013 5,624 15,746 100 at1A,ArdmorePark condominium housing Foresque 496unitsof Leasehold 29 2014 22,744 47,763 100 Residences condominium atPetirRoad housing Malaysia SeringUkay 187units Freehold Phase3 – – 188,151 52,955 61.1 atMukimofUlu ofsemi- Klang,Gombak, detached Selangor housesand bungalows VerticasResidences 423 Freehold TowersA, 72 2012 9,764 91,748 61.1 atSection57,Town unitsof B,C,D ofKualaLumpur condominium housing KondominiumLe 197unitsof Freehold 13 2015 6,084 50,033 61.1 NouvelatSection condominium 43,Townof housing KualaLumpur

Kondominium 25unitsof Freehold 46 2013 4,047 15,078 61.1 NobletonCrest condominium atJalanU-Thant, housing Townof KualaLumpur


66



Malaysia (continued)

TamanSeriImpianat 34unitsof Freehold Phase6 82 2012 4,517 8,140 61.1 Mukim14and15, 2-3storey DaerahSeberang shopoffices PeraiTengah, PulauPinang

TamanNagasariat 310unitsof Freehold BlocksA, – – 27,863 50,026 61.1 Mukim6,Province flatsand B,C WellesleyCentral, vacantland 13600PulauPinang

TamanBukitMinyak 492unitsof Freehold Phase1A 100 n/a 118,164 113,989 61.1 Utamaat terraceand Phase2 100 n/a Mukim14, semi- Phase3 73 2013 DaerahSeberang detached Phase4 – – PeraiTengah, houses PulauPinang andshop houses

SentralGreens 54unitsof Freehold 100 n/a 18,666 14,035 61.1 atMukim13, terraceand TempatRelau, semi- DaerahTimur detached Laut,PulauPinang houses

PlazaDNPat 594unitsof Freehold Phase1 100 n/a 37,367 265,139 61.1 14-Aand59 apartments Phase2 – – JalanDatoAbdullah and Tahir,80300Johor commercial Bahru,Johor podium

ImpianaCommercial 83unitsof Freehold 88 2012 41,578 69,921 61.1 HubatMukim14, shophouses DaerahSeberang PeraiTengah, PulauPinang

JesseltonHillsat 810unitsof Freehold Phase1 45 2013 468,671 34,129 61.1 Mukim15, terraceand Phase2-5 – – DaerahSeberang semi- PeraiTengah, detached PulauPinang houses


67




Malaysia (continued)

Vacantland – 99-year – – 38,155 n/a 61.1 atPekanPenaga, lease DistrictofPetaling, expiring Selangor 2093

Vacantlandat – Freehold – – 8,645 n/a 61.1 Section89A, Townof KualaLumpur

Vacantland – Freehold – – 437,573 n/a 61.1 atMukim14–16, DaerahSeberang PeraiTengah, PulauPinang

Vacantlandat – Freehold – – 2,282 n/a 61.1 Mukim17, BatuFerringhi, PulauPinang

ThePeople’sRepublicofChina TheLakeview 193unitsof 70-year Phase3 90 2013 9,740 41,337 75 atNo.63Xinggang apartments lease Street,Suzhou expiring IndustrialPark 2066

TheLakeside Mixed 70-year Phase2 – – 19,518 18,990 75 atNo.1Xingzhou development lease Street,Suzhou comprising expiring IndustrialPark townhouses, 2066 bungalows and apartments

n/a:notapplicable


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15. other current assets

Group Company 2012 2011 2010 2012 2011 (restated) (restated) $’000 $’000 $’000 $’000 $’000

Deposits 12,079 10,704 9,832 71 49 Prepayments 60,970 37,079 24,403 2,043 543 Sundryreceivables 2,063 8,895 6,060 2,348 2,023

75,112 56,678 40,295 4,462 2,615

Thecarryingamountsofdepositsandsundryreceivablesapproximatedtheirfairvalues.

16. available-for-sale financial assets

Group Company 2012 2011 2012 2011 $’000 $’000 $’000 $’000

Beginningandendoffinancialyear 7,170 7,170 3,189 3,189

Theavailable-for-salefinancialassetscomprisedunquotedequitysharesinSingapore.


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17. trade and other receivables – non-current

Group Company 2012 2011 2012 2011 $’000 $’000 $’000 $’000

Loanstosubsidiarycompanies[Note17(i)] – – 467,037 622,281 Allowanceforimpairmentofreceivables – – (14,472) (13,382)

– – 452,565 608,899

Loanstojointventurecompanies[Note17(ii)] 213,602 205,739 – – Allowanceforimpairmentofreceivables (15,022) (11,928) – –

198,580 193,811 – –

Loanstonon-controllinginterests[Note17(iii)] 6,881 3,979 – –

Totalnon-currentreceivables 205,461 197,790 452,565 608,899

(i) Loans to subsidiary companies are unsecured, have no fixed terms of repayment and are not expected to berepayablewithinthenext12months.Includedintheloanstosubsidiarycompaniesarefixedinterestratereceivablesof$202.5million(2011:$210.1million)andfloatinginterestratereceivablesof$12.4million(2011:Nil).

Theinterest-freeloanstosubsidiarycompaniesareintendedtobealong-termsourceofadditionalcapitalforthesubsidiarycompanies.Asaresult,managementconsiderssuchloanstobeinsubstancepartoftheCompany’snetinvestmentinthesesubsidiarycompaniesandhasaccountedfortheseloansinaccordancewithNote2.5.

(ii) Loans to joint venture companies are unsecured, have no fixed terms of repayment and are not expected toberepayablewithinthenext12months. Included inthe loansto jointventurecompaniesarefixed interestratereceivablesof$213.4million(2011:$204.2million).

The interest-bearing loans to joint venture companies amounting to $196.4 million (2011: $186.4 million) aresubordinated to banking facilities of $893.8 million (2011: $893.8 million) granted by banks to the said joint venturecompanies.

(iii) Loansbycertainsubsidiarycompanies tonon-controlling interestsaremadeproportionate to theshareholders’equitystakeinthesubsidiarycompaniesonaparipassubasis.Theloansareunsecured,interest-free,havenofixedtermsofrepaymentandarenotexpectedtoberepayablewithinthenext12months.

Thecarryingamountsofnon-currenttradeandotherreceivablesapproximatedtheirfairvalues.


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18. investment in an associated company


Carryingamountofquotedinvestmentinanassociatedcompany 657,886 544,276 508,854

Theabovecarryingamountincludedthefollowing: –Shareofanassociatedcompany’sothercomprehensive (expense)/incomefortheyear (4,854) 7,379 6,390 –Shareofanassociatedcompany’snetprofitfortheyear 106,674 100,886 18,278

Thesummarisedfinancialinformationofanassociatedcompany,notadjustedfortheproportionateownershipinterestheldbytheGroup,isasfollows:


Assets 3,646,401 3,091,095 3,048,827 Liabilities (1,390,107) (1,192,821) (1,301,388) Revenue 402,635 263,850 385,761 Netprofit 335,858 370,845 99,075

Shareofanassociatedcompany’scontingent liabilitiesincurredjointlywithotherinvestors – – 26,469

Marketvalueofquotedequityshares 308,870 231,200 187,199

Asat30June2012,thecarryingvalueofquotedequitysharesishigherthanthemarketvalue.Thedirectorsconsiderthecarryingvalueofinvestmentintheassociatedcompanyappropriate,afterhavingevaluatedvariousqualitativeandquantitativefactorsincludingthehistoricalfinancialperformanceoftheassociatedcompany.

DetailsoftheGroup’sassociatedcompanyarelistedinNote35tothefinancialstatements.


71


19. investments in joint venture companies

ThefollowingamountsrepresenttheGroup’sshareoftheassets,liabilities,revenueandexpensesofthejointventurecompanies which are included in the consolidated statement of financial position and consolidated statement ofcomprehensiveincomeusingequityaccounting.

Group 2012 2011 $’000 $’000

Assets –Currentassets 755,864 725,492 –Non-currentassets 34,602 40,504

790,466 765,996

Liabilities –Currentliabilities (182,124) (142,609) –Non-currentliabilities (446,910) (433,618)

(629,034) (576,227)

Netassets 161,432 189,769

Revenue 328,262 262,447 Expenses (250,265) (191,703) Incometaxexpense (12,834) (12,284)

Netprofit 65,163 58,460

TheGroup’sshareofthecapitalcommitmentsofthejointventurecompanieswereasfollows:

Group 2012 2011 $’000 $’000

Contractedbutnotprovidedfor 48,714 147,122

DetailsoftheGroup’sjointventurecompaniesarelistedinNote35tothefinancialstatements.


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20. investments in subsidiary companies

Company 2012 2011 $’000 $’000

Beginningandendoffinancialyear 252,392 252,392

DetailsoftheGroup’ssubsidiarycompaniesarelistedinNote35tothefinancialstatements.

21. investment properties

Group Company 2012 2011 2012 2011 $’000 $’000 $’000 $’000

Beginningoffinancialyear 560,210 486,028 – 82,000 Fairvaluegainsrecognisedinincomestatement 15,713 74,616 – – Transferfromproperty,plantandequipment – 701 – – Transferfrom/(to)developmentproperties 2,795 (1,856) – – Additionalexpenditure – 4,438 – – Disposals (774) – – (82,000) Currencytranslationdifferences 141 (3,717) – –

Endoffinancialyear 578,085 560,210 – –

Themajorinvestmentpropertiesareasfollows:

Group’s Lettable interestin area property Location Description Tenure (Sqm) (%)

Singapore 105TampinesRoad 9-storeywarehouse Freehold 9,257 100 andofficebuilding

WinslandHouseI 10-storey 99-year 13,287 100 at3KillineyRoad commercialbuilding lease (1stto9thfloor) expiring2082

WinslandHouseII 8-storey 99-year 7,287 100 at163PenangRoad commercialbuilding lease expiring2093


73


21. investment properties (continued)

Group’s Lettable interestin area property Location Description Tenure (Sqm) (%)

Singapore (continued)

WinslandHouseII Conservation 99-year 534 100 at165PenangRoad house lease expiring2093

LansonPlaceWinsland 9-storey 99-year 6,030 100 ServicedResidences servicedapartments lease at167PenangRoad expiring2093

Malaysia LansonPlace 132unitsof Freehold 22,702 61.1 KondominiumNo.8 condominium atSection89A,Townof housing KualaLumpur

SeringUkay 10unitsofshopoffices Freehold 2,872 61.1 atJalanSU1E, Selangor

ThePeople’sRepublicofChina SingaPlaza 8-storeycommercialbuilding 50-yearlease 8,255 75 atNo.8JinjiHuRoad, expiring2046 SuzhouIndustrialPark

InvestmentpropertiesarecarriedatfairvaluesattheendofthereportingperiodasdeterminedbyindependentprofessionalvaluersbasedontheDirectMarketComparisonMethodandInvestmentMethod.

Investmentpropertiesareleasedtothirdpartiesunderoperatingleases(Note30).

Investmentpropertieswithatotalvaluationof$516.1million(2011:$508.4million)weremortgagedtobankstosecurelongtermbankingfacilitiesgrantedtothesubsidiarycompanies(Note24).

Thefollowingamountsarerecognisedintheincomestatement:

Group 2012 2011 $’000 $’000

Rentalincome 31,962 31,584 Directoperatingexpensesarisingfrominvestmentpropertiesthatgeneratedrentalincome (10,801) (9,998)


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22. property, plant and equipment

Freehold Leasehold landand landand Motor Office Furniture buildings buildings vehicles equipment andfittings Total $’000 $’000 $’000 $’000 $’000 $’000

Group 2012 Cost or valuation Beginningoffinancialyear Cost – – 5,348 17,724 45,972 69,044 Valuation 104,076 57,029 – – – 161,105

104,076 57,029 5,348 17,724 45,972 230,149 Additions – 432 776 2,997 5,060 9,265 Disposals (1,247) (581) (27) (276) (31) (2,162) Write-off – – – (545) (3,724) (4,269) Revaluationgains 9,150 361 – – – 9,511 Currencytranslationdifferences (537) (159) (39) (191) (363) (1,289)

Endoffinancialyear 111,442 57,082 6,058 19,709 46,914 241,205

Representing: Cost – – 6,058 19,709 46,914 72,681 Valuation 111,442 57,082 – – – 168,524

111,442 57,082 6,058 19,709 46,914 241,205

Accumulated depreciation and impairment losses Beginningoffinancialyear 450 312 2,504 8,178 27,061 38,505 Depreciationcharge 621 1,155 1,068 2,209 6,885 11,938 Disposals (140) (8) – (269) (24) (441) Write-off – – – (482) (3,345) (3,827) Revaluationadjustments (525) (928) – – – (1,453) Currencytranslationdifferences (4) (8) (29) (176) (274) (491)

Endoffinancialyear 402 523 3,543 9,460 30,303 44,231

Net book value Endoffinancialyear 111,040 56,559 2,515 10,249 16,611 196,974


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22. property, plant and equipment (continued)

Freehold Leasehold landand landand Motor Office Furniture buildings buildings vehicles equipment andfittings Total $’000 $’000 $’000 $’000 $’000 $’000

Group 2011 Cost or valuation Beginningoffinancialyear Cost – 1,147 4,676 16,230 40,741 62,794 Valuation 101,278 49,473 – – – 150,751

101,278 50,620 4,676 16,230 40,741 213,545 Transfertoinvestmentproperties – (701) – – – (701) Additions 1 2 1,496 2,837 9,631 13,967 Additionalexpenditureonproperty 6,920 – – – – 6,920 Disposals (898) – (616) (442) (361) (2,317) Write-off – – – (146) (2,798) (2,944) Revaluation(losses)/gains (1,056) 7,615 – – – 6,559 Currencytranslationdifferences (2,169) (507) (208) (755) (1,241) (4,880)

Endoffinancialyear 104,076 57,029 5,348 17,724 45,972 230,149

Representing: Cost – – 5,348 17,724 45,972 69,044 Valuation 104,076 57,029 – – – 161,105

104,076 57,029 5,348 17,724 45,972 230,149

Accumulated depreciation and impairment losses Beginningoffinancialyear 1,925 1,342 2,141 7,189 24,395 36,992 Depreciationcharge 698 1,082 1,011 2,135 6,174 11,100 Disposals (342) – (506) (318) (111) (1,277) Impairmentloss 67 – – – – 67 Write-off – – – (119) (2,436) (2,555) Revaluationadjustments (1,835) (2,072) – – – (3,907) Currencytranslationdifferences (63) (40) (142) (709) (961) (1,915)

Endoffinancialyear 450 312 2,504 8,178 27,061 38,505

Net book value Endoffinancialyear 103,626 56,717 2,844 9,546 18,911 191,644


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Freehold landand Motor Office Furniture buildings vehicles equipment andfittings Total $’000 $’000 $’000 $’000 $’000

Company 2012 Beginningoffinancialyear Cost – 2,122 5,418 2,072 9,612 Additions – – 1,558 29 1,587 Disposals – – (94) – (94) Write-off – – (4) – (4)

Endoffinancialyear – 2,122 6,878 2,101 11,101

Accumulated depreciation Beginningoffinancialyear – 1,014 774 873 2,661 Depreciationcharge – 425 84 201 710 Disposals – – (94) – (94) Write-off – – (4) – (4)

Endoffinancialyear – 1,439 760 1,074 3,273

Net book value Endoffinancialyear – 683 6,118 1,027 7,828


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Freehold landand Motor Office Furniture buildings vehicles equipment andfittings Total $’000 $’000 $’000 $’000 $’000

Company 2011 Cost or valuation Beginningoffinancialyear Cost – 1,659 4,935 2,401 8,995 Valuation 8,400 – – – 8,400

8,400 1,659 4,935 2,401 17,395 Additions – 755 628 – 1,383 Disposals (8,400) (292) (145) (329) (9,166)

Endoffinancialyear – 2,122 5,418 2,072 9,612

Representing: Cost – 2,122 5,418 2,072 9,612

Accumulated depreciation Beginningoffinancialyear – 957 735 766 2,458 Depreciationcharge 9 349 82 205 645 Disposals (9) (292) (43) (98) (442)

Endoffinancialyear – 1,014 774 873 2,661

Net book value Endoffinancialyear – 1,108 4,644 1,199 6,951


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ThefreeholdandleaseholdlandandbuildingsoftheGroupandtheCompanywerevaluedbyindependentprofessionalvaluersbasedontheDirectMarketComparisonMethodandInvestmentMethodattheendofthereportingperiod.

Ifthefreeholdandleaseholdlandandbuildingsstatedatvaluationwereincludedinthefinancialstatementsatcostless

accumulateddepreciation,theirnetbookvalueswouldbeasfollows:

Group 2012 2011 $’000 $’000

Freeholdlandandbuildings 41,860 43,574 Leaseholdlandandbuildings 44,714 45,852

Themajorpropertiesincludedinfreeholdandleaseholdlandandbuildingsareasfollows:

Lettable area Location Description Tenure (Sqm)

Singapore 107TampinesRoad 10-storeywarehouse Freehold 18,061 andofficebuilding anda5-storeycanteen 19ValleyRoad 16unitsofapartmentsin Freehold 1,665 a4-storeybuilding WinslandHouseI 10-storeycommercial 99-yearlease 2,764 at3KillineyRoad building expiring2082 (Basement1and10thfloor)

Malaysia 166-A,RifleRangeRoad, 5-storeycommercial 99-yearlease 11,136 11400PulauPinang building expiring2109 AmbassadorRow 221unitsofserviced Freehold 17,452 ServicedSuites apartmentsina at1JalanAmpangHilir, 20-storeybuilding 55000KualaLumpur

Property,plantandequipmentwithnetbookvaluesamountingto$80.2million(2011:$78.2million)weremortgagedtobankstosecurelongtermbankingfacilitiesgrantedtosubsidiarycompanies(Note24).


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23. trade and other payables

Group Company 2012 2011 2012 2011 $’000 $’000 $’000 $’000

Duetosubsidiarycompanies –non-trade[Note23(i)] – – 155,982 152,385

Duetoassociatedandjointventurecompanies –non-trade[Note23(ii)] 30,956 22,766 – –

Duetoaninvesteecompany –non-trade[Note23(ii)] 4,378 4,378 – –

Duetonon-controllinginterests –non-trade[Note23(iii)] 43,174 34,933 – –

Accruedprojectcosts 43,703 58,308 – – Accruedoperatingexpenses 59,134 57,667 5,007 8,046 Tradecreditors 27,980 29,171 – – Othercreditors 17,005 12,649 1,991 1,697 Tenancydeposits 3,675 2,466 – –

151,497 160,261 6,998 9,743

Totaltradeandotherpayables 230,005 222,338 162,980 162,128

(i) Non-tradeamountsduetosubsidiarycompaniesareunsecuredandrepayableondemand.Includedintheamountsdue to subsidiary companies are fixed interest rate payables of $29.4million (2011: $29.4million) and floatinginterestratepayablesof$17.7million(2011:$17.7million).

(ii) Non-trade amounts due to associated, joint venture and investee companies are unsecured, interest-free andrepayableondemand.

(iii) Non-trade amounts due to non-controlling interests are unsecured and repayable on demand. Included in theamountsduetonon-controllinginterestsarefixedinterestratepayablesofNil(2011:$11.4million).

Thecarryingamountsoftradeandotherpayablesapproximatedtheirfairvalues.


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24. borrowings

Group Company 2012 2011 2012 2011 $’000 $’000 $’000 $’000

Current –Securedtermloans 18,568 160,239 – – –Unsecuredbankloans 7,181 6,887 – –

25,749 167,126 – –

Non-current –Securedbankloans 634,184 588,871 – – –Unsecuredbankloans 320,802 303,220 125,000 125,000 –Unsecuredmediumtermnotesduein2015 120,000 120,000 120,000 120,000 –Unsecuredmediumtermnotesduein2016 65,000 – 65,000 – –Unsecuredmediumtermnotesduein2018 60,000 – 60,000 –

1,199,986 1,012,091 370,000 245,000

Totalborrowings 1,225,735 1,179,217 370,000 245,000

Thecarryingamountsofborrowingsapproximatedtheirfairvalues.

(a) Interestraterisks TheexposureoftheborrowingsoftheGroupandoftheCompanyto interestratechangesandthecontractual

repricingdatesattheendofthereportingperiodareasfollows:

Group Company 2012 2011 2012 2011 $’000 $’000 $’000 $’000

Lessthanoneyear 585,933 556,997 – – Betweenoneandtwoyears – 166,654 – 100,000 Betweentwoandfiveyears 510,802 386,566 185,000 145,000 Overfiveyears 129,000 69,000 185,000 –

1,225,735 1,179,217 370,000 245,000

(b) Securitygranted TheGroup’ssecuredborrowingsaregenerallysecuredbymortgagesoncertaindevelopmentproperties(Note14),

investmentproperties(Note21)andproperty,plantandequipment(Note22)andassignmentofallrights,titlesandbenefitswithrespecttotheproperties.


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25. dividends

GroupandCompany 2012 2011 $’000 $’000

Dividendspaidinrespectoftheprecedingfinancialyear Firstandfinaldividendof3centspershare(2011:3centspershare) 23,426 23,374 Specialdividendof4centspershare(2011:2centpershare) 31,234 15,583

54,660 38,957

Thedirectorshaverecommendedafirstandfinaldividendinrespectofthefinancialyearended30June2012of3centspershareandaspecialdividendof4centspershare.Thesefinancialstatementsdonotreflecttheseproposeddividends,whichwillbeaccountedforintheshareholders’equityasanappropriationofretainedearningsinthefinancialyearending30June2013.

Theproposedfirstandfinaldividendandspecialdividendinrespectofthefinancialyearended30June2011havebeenaccountedforintheshareholders’equityasanappropriationofretainedearningsinthecurrentfinancialyear.

26. other non-current liabilities

Group 2012 2011 (restated) $’000 $’000

Tenancydeposits 3,946 4,948Loansfromnon-controllinginterests 9,015 28,559Retentionpayable 17,390 8,042Others 3,056 3,062

33,407 44,611

Loans from non-controlling interests are unsecured, have no fixed terms of repayment and are not expected to berepayablewithinthenext12months.

Thecarryingamountsofothernon-currentliabilitiesapproximatedtheirfairvalues.


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27. share capital

GroupandCompany Issuedsharecapital Numberof ordinary shares Amount ’000 $’000

2012 Beginningandendoffinancialyear 793,927 838,250

2011 Beginningoffinancialyear 793,889 838,200 Issueofsharesonexerciseofshareoptions 38 50

Endoffinancialyear 793,927 838,250

In2011,theCompanyissued38,500newordinarysharesupontheexerciseofemployeeshareoptions.Thenewlyissuedsharesrankparipassuinallrespectswiththepreviouslyissuedshares.

Allissuedordinarysharesarefullypaid.Thereisnoparvaluefortheseordinaryshares.

(a) TheWingTaiHoldingsLimited(2001)ShareOptionScheme(the“Scheme”) TheSchemewasapprovedandadoptedbythemembersoftheCompanyatanExtraordinaryGeneralMeeting

(“EGM”)heldon31August2001.TheSchemewasterminatedbythemembersoftheCompanyatanEGMheldon30October2008(withoutprejudicetotherightsofholdersofoptionsthereunderinrespectofoptionswhichhavebeengranted).

DetailsofthemovementintheoptionsgrantedundertheSchemeontheunissuedordinarysharesoftheCompanyduringtheyearwereasfollows:

Number Number Asat ofoptions ofoptions Asat Exercise Expiry Dateofgrant 01.07.2011 exercised forfeited 30.06.2012 price($) date

2012 02.11.2001 22,000 22,000 – – 0.616 01.11.2011 19.11.2004 287,100 37,400 – 249,700 0.849 18.11.2014 30.09.2005 639,200 – 37,400 601,800 1.300 29.09.2015 05.09.2006 1,239,700 – 85,800 1,153,900 1.645 04.09.2016 06.09.2007 1,980,000 – 137,500 1,842,500 3.136 05.09.2017

Total 4,168,000 59,400 260,700 3,847,900


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27. share capital (continued)(a) TheWingTaiHoldingsLimited(2001)ShareOptionScheme(the“Scheme”) (continued)

Number Number Asat ofoptions ofoptions Asat Exercise Expiry Dateofgrant 01.07.2010 exercised forfeited 30.06.2011 price($) date

2011 02.11.2001 22,000 – – 22,000 0.616 01.11.2011 19.11.2004 294,800 7,700 – 287,100 0.849 18.11.2014 30.09.2005 668,900 23,100 6,600 639,200 1.300 29.09.2015 05.09.2006 1,269,300 17,500 12,100 1,239,700 1.645 04.09.2016 06.09.2007 2,024,000 – 44,000 1,980,000 3.136 05.09.2017

Total 4,279,000 48,300 62,700 4,168,000

Alltheoutstandingshareoptionsareexercisable.OptionsexercisedduringthefinancialyearresultedinNil(2011:38,500)newordinarysharesbeingissuedand59,400(2011:9,800)treasurysharesbeingreissuedatanaveragepriceof$0.76(2011:$1.35)pershare.Theweightedaveragesharepriceatthetimeofexercisewas$1.28(2011:$1.73)pershare.

(b) SharePlans TheWingTaiPerformanceSharePlan(“WingTaiPSP”)andtheWingTaiRestrictedSharePlan(“WingTaiRSP”)

(collectivelyreferredtoasthe“SharePlans”)wereadoptedbythemembersoftheCompanyatanEGMheldon30October2008.

Wing Tai PSP On8September2011,awardsweregrantedbytheCompanytoqualifyingemployeespursuanttotheWingTaiPSP

inrespectof265,000sharesoftheCompany.UndertheWingTaiPSP,performanceconditionsaresetoverathree-yearperformanceperiod.AspecifiednumberofshareswillbereleasedbytheCommitteetotheparticipantsattheendoftheperformanceperiod,providedthethresholdtargetsareachieved.


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27. share capital (continued)(b) Shareplans (continued) Wing Tai PSP (continued)



2012 03.09.2009 146,000 – 46,000 100,000 01.09.2010 175,000 – 54,000 121,000 08.09.2011 – 265,000 82,000 183,000

Total 321,000 265,000 182,000 404,000


2011 03.09.2009 146,000 – – 146,000 01.09.2010 – 175,000 – 175,000

Total 146,000 175,000 – 321,000

Wing Tai RSP On8September2011,awardsweregrantedbytheCompanytoqualifyingemployeespursuanttotheWingTaiRSP

inrespectof2,086,000sharesoftheCompany.UndertheWingTaiRSP,performanceconditionsaresetoveraone-yearperformanceperiod.Aspecifiednumberofshareswillbeawardedtoeligibleparticipantsattheendoftheperformanceperioddependingontheextentofachievementoftheperformanceconditionsestablished.Theshareshaveavestingscheduleofthreeyears.Theparticipantwillreceivefullypaidshares,withoutanycashconsiderationpayablebytheparticipant.



2012 18.05.2009 842,800 – 829,200 13,600 – 03.09.2009 870,800 – 373,200 50,000 447,600 01.09.2010 2,103,000 – 630,900 157,500 1,314,600 08.09.2011 – 2,086,000 – 149,000 1,937,000

Total 3,816,600 2,086,000 1,833,300 370,100 3,699,200


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27. share capital (continued)(b) Shareplans (continued) Wing Tai RSP (continued)


2011 18.05.2009 1,474,900 – 632,100 – 842,800 03.09.2009 1,257,000 – 377,100 9,100 870,800 01.09.2010 – 2,125,000 – 22,000 2,103,000

Total 2,731,900 2,125,000 1,009,200 31,100 3,816,600

ThefairvaluesoftheawardsgrantedpursuanttotheWingTaiPSPandtheWingTaiRSPon8September2011(2011:1September2010)determinedusingtheMonteCarlosimulationmodelwas$0.2million(2011:$0.2million)and$2.6million (2011:$3.2million)respectively.Thesignificant inputs intothemodelweresharepriceatgrantdateof$1.35(2011:$1.61)pershare,standarddeviationofexpectedsharepricereturnsof50.2%(2011:58.3%),dividendyieldof4.4%(2011:3.4%)andannualrisk-freeinterestratesof0.1%[one-year],0.1%[two-years]and0.3%[three-years](2011:0.4%[one-year],0.5%[two-years]and0.5%[three-years]).Thevolatilitymeasuredatthestandarddeviationofexpectedsharepricereturnsisbasedonthestatisticalanalysisofmonthlysharepricesoverthepastthreeyears.

28. other reserves

Group Company 2012 2011 2012 2011 (restated) $’000 $’000 $’000 $’000

Share-basedpaymentreserve 10,921 9,829 10,392 9,359 Cashflowhedgereserve (20,149) (33,817) (3,503) (6,286) Assetrevaluationreserve 98,708 89,294 – – Shareofcapitalreservesofassociated andjointventurecompanies 14,566 18,840 – – Currencytranslationreserve (132,059) (133,362) – – Treasurysharesreserve (13,710) (15,823) (13,710) (15,823) Statutoryreserve 972 972 – –

(40,751) (64,067) (6,821) (12,750)

(a) Share-basedpaymentreserve Beginningoffinancialyear 9,829 7,705 9,359 7,433 Employeeshareplansandshareoptionscheme: –Valueofemployeeservices(Notes6and27) 3,197 3,413 3,101 3,056 –Reissuanceoftreasuryshares (2,068) (1,130) (2,068) (1,130) Attributabletonon-controllinginterests (37) (159) – –

Endoffinancialyear 10,921 9,829 10,392 9,359


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28. other reserves (continued)


(b) Cashflowhedgereserve Beginningoffinancialyear (33,817) (28,414) (6,286) (6,607) Fairvaluelosses (1,178) (21,411) (636) (3,095) Transferto: –developmentproperties 1,426 3,382 – – –incomestatement 13,420 12,626 3,419 3,416

Endoffinancialyear (20,149) (33,817) (3,503) (6,286)

(c) Assetrevaluationreserve Beginningoffinancialyear 89,294 82,181 – 7,429 Revaluationgainsonproperty,plantandequipment 10,964 10,466 – – Deferredincometaxchargedtoequity[Note8(b)] (1,475) (1,894) – – Transfertoretainedearningsuponrealisation (51) (317) – (7,429) Reversalofimpairmentlosstoincomestatement – (126) – – Attributabletonon-controllinginterests (24) (1,016) – –


(d) Shareofcapitalreservesof associatedandjointventurecompanies Beginningoffinancialyear 18,840 20,476 – – Shareofcapitalreservesof: –anassociatedcompany (4,854) 7,379 – – –jointventurecompanies 425 (8,775) – – Attributabletonon-controllinginterests 155 (240) – –


(e) Currencytranslationreserve Beginningoffinancialyear (134,707) (74,752) – – EffectofadoptingINTFRS115 1,345 (115) – – Translationoffinancialstatementsofforeign subsidiary,associatedandjointventure companies 12,997 (59,845) – – Translationofforeigncurrencydenominated loanswhichformpartofnetinvestmentin subsidiarycompanies (12,402) (7,302) – – Liquidationofjointventurecompanies – (819) – – Liquidationofsubsidiarycompanies – 335 – – Attributabletonon-controllinginterests 708 9,136 – –

Endoffinancialyear (132,059) (133,362) – –


87


28. other reserves (continued)


(f) Treasurysharesreserve Beginningoffinancialyear (15,823) (16,968) (15,823) (16,968) Reissuanceoftreasuryshares 2,113 1,145 2,113 1,145

Endoffinancialyear (13,710) (15,823) (13,710) (15,823)

(g) Statutoryreserve Beginningoffinancialyear 972 972 – – Liquidationofajointventurecompany – (315) – – Attributabletonon-controllinginterests – 315 – –

Endoffinancialyear 972 972 – –

Totalotherreserves (40,751) (64,067) (6,821) (12,750)

Capitalreservesofassociatedandjointventurecompaniesarisefromcurrencytranslationandotherreserveswhicharenotdistributable.

IncludedintheissuedordinarysharesoftheCompanyasat30June2012was12,247,000(2011:14,139,700)treasurysharesheldbytheCompany.

TheCompanyreissued1,892,700(2011:1,019,000)treasurysharesduringthefinancialyearpursuanttotheWingTaiRSPandshareoptions.Thepurchasecostofthetreasurysharesreissuedamountedto$2.1million(2011:$1.1million).Thetotalconsiderationforthetreasurysharesreissuedwhichcomprisedthevalueofemployeeservicesamountedto$2.1million(2011:$1.1million).


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29. retained earnings

(a) Retained earnings of the Group are distributable except for accumulated retained earnings of associated andjointventurecompaniesamountingto$381.1million (2011(restated):$315.3million)andtreasurysharereserveamountingto$13.7million(2011:$15.8million).RetainedearningsoftheCompanyaredistributableexceptforthetreasurysharereserveof$13.7million(2011:$15.8million).

(b) MovementinretainedearningsfortheCompanywereasfollows:

Company 2012 2011 $’000 $’000

Beginningoffinancialyear 97,901 73,928 Netprofit 181,963 55,501 Realisationofreserves – 7,429 Dividendspaid(Note25) (54,660) (38,957)

Endoffinancialyear 225,204 97,901

30. commitments

(a) Capitalcommitments Capitalexpenditurescontractedforattheendofthereportingperiodbutnotrecognisedinthefinancialstatements,

excludingthoserelatingtoinvestmentsinjointventurecompanies(Note19),areasfollows:

Group 2012 2011 $’000 $’000

Commitmentsinrespectofcontractsplaced 224,864 289,073

(b) Operatingleasecommitments–wheretheGroupisalessee TheGroupleasesvariousretailunitsundernon-cancellableoperatingleaseagreements.Theleaseshavevarying

terms,escalationclausesandrenewalrights.

Thefutureminimumleasepayablesundernon-cancellableoperatingleasescontractedforattheendofthereportingperiodbutnotrecognisedasliabilities,areasfollows:

Group 2012 2011 $’000 $’000

Notlaterthanoneyear 42,685 39,903 Betweenoneandfiveyears 42,935 55,988

85,620 95,891


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30. commitments (continued)

(c) Operatingleasecommitments–wheretheGroupisalessor TheGroupandtheCompanyleaseoutofficeunitsandservicedapartmentsundernon-cancellableoperatinglease

agreements.Theleaseshavevaryingterms,escalationclausesandrenewalrights.

The futureminimum lease receivablesunder non-cancellableoperating leases contracted for at the endof thereportingperiodbutnotrecognisedasreceivables,areasfollows:

Group 2012 2011 $’000 $’000

Notlaterthanoneyear 20,911 23,338 Betweenoneandfiveyears 19,450 33,192

40,361 56,530

31. contingent liabilities

Thedetailsandestimatesofmaximumamountsofcontingent liabilities,excluding those relating to investment inanassociatedcompany(Note18),areasfollows:

Group Company 2012 2011 2012 2011 $’000 $’000 $’000 $’000

Financialguaranteesissuedtobanksforcredit facilitiesgrantedto: –subsidiarycompanies – – 208,702 221,120 –jointventurecompanies 11,743 8,280 8,280 8,280

11,743 8,280 216,982 229,400

TheCompanyhasgivenfinancialguaranteesforallliabilitiesincurredunderatenderbondfacilityofasubsidiarycompanyamountingto$15.0million(2011:$15.0million)grantedbyabanktothesubsidiarycompany.


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32. financial risk management

Financial risk factors TheGroup’sactivitiesexpose it tomarket risk (includingcurrency riskand interest rate risk), credit riskand liquidity

risk.TheGroup’soverallriskmanagementstrategyseekstominimiseanyadverseeffectsfromtheunpredictabilityoffinancialmarketsontheGroup’sfinancialperformance.Afteridentifyingandevaluatingitsexposuretothefinancialrisks,theGroupestablishespoliciestomonitorandmanagetheserisksinaccordancewithitsriskmanagementphilosophy.TheGroupusesfinancialinstrumentssuchascurrencyforwards,crosscurrencyswaps,interestrateswapsandforeigncurrencyborrowingstohedgecertainfinancialriskexposures.

(a) Marketrisk(i) Currency risk TheGroupoperatesinAsiawithdominantoperationsinSingapore,Malaysia,HongKongSARandthePeople’s

Republic ofChina. Entities in theGroupmay transact in currencies other than their respective functionalcurrencies.Currency riskariseswithinentities in theGroupwhen transactionsaredenominated in foreigncurrencies.Tomanagethecurrencyexposure,theGroupentersintocurrencyforwardswithbanks.

TheGroupalsoholdslong-termoverseasinvestmentsanditsnetassetsareexposedtocurrencytranslationrisk.TheGroupusesnaturalhedgingopportunities, likeborrowing in thecurrencyof thecountry inwhichtheseinvestmentsarelocatedwheneverpracticable.Theexchangedifferencesarisingfromsuchtranslationsarecapturedunderthecurrencytranslationreserve.Thesetranslationdifferencesarereviewedandmonitoredonaregularbasis.


91


32. financial risk management (continued)(a) Marketrisk(continued)

(i) Currency risk (continued)

TheGroup’scurrencyexposureisasfollows:

SGD RM USD HKD Other Total $’000 $’000 $’000 $’000 $’000 $’000

2012 Financialassets Cashandcashequivalents 748,443 21,068 58,390 5,767 15,018 848,686 Available-for-sale financialassets 7,170 – – – – 7,170 Tradeandotherreceivables (currentandnon-current) 253,028 28,276 676 6,885 – 288,865 Otherfinancialassets 11,407 2,531 3 7 194 14,142

1,020,048 51,875 59,069 12,659 15,212 1,158,863

Financialliabilities Tradeandotherpayables (187,278) (34,735) (2,286) (474) (5,232) (230,005) Borrowings (1,017,238) (101,695) (44,800) (62,002) – (1,225,735) Otherfinancialliabilities (15,772) (10,163) (4,416) – – (30,351)

(1,220,288) (146,593) (51,502) (62,476) (5,232) (1,486,091)

Netfinancial(liabilities)/ assets (200,240) (94,718) 7,567 (49,817) 9,980 (327,228) Netfinancialliabilities/ (assets)denominated intherespectiveentities’ functionalcurrencies 110,668 101,012 46,501 (7,577) (12,868) 237,736 Firmcommitmentsand highlyprobableforecast transactionsinforeign currencies – – (1,584) – (3,915) (5,499) Currencyforwardsand crosscurrencyswaps (62,370) – 4,638 62,370 5,858 10,496

Currencyexposure (151,942) 6,294 57,122 4,976 (945) (84,495)


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32. financial risk management (continued)(a) Marketrisk (continued)


SGD RM USD HKD Other Total $’000 $’000 $’000 $’000 $’000 $’000

2011 Financial assets Cashandcashequivalents 391,557 35,419 46,594 1,373 29,292 504,235 Available-for-sale financialassets 7,170 – – – – 7,170 Tradeandotherreceivables (currentandnon-current) 367,634 34,745 695 7,366 1 410,441 Otherfinancialassets 16,843 2,498 2 16 240 19,599

783,204 72,662 47,291 8,755 29,533 941,445

Financial liabilities Tradeandotherpayables (174,593) (36,290) (3,006) (1,801) (6,648) (222,338) Borrowings (931,962) (90,035) (30,895) (126,325) – (1,179,217) Otherfinancialliabilities (33,037) (4,249) (4,263) – – (41,549)

(1,139,592) (130,574) (38,164) (128,126) (6,648) (1,443,104)

Net financial (liabilities)/ assets (356,388) (57,912) 9,127 (119,371) 22,885 (501,659)

Netfinancialliabilities/ (assets)denominated intherespectiveentities’ functionalcurrencies 334,917 59,810 26,342 (7,193) (25,673) 388,203 Firmcommitmentsand highlyprobableforecast transactionsinforeign currencies – – (735) – (5,136) (5,871) Currencyforwardsandcross currencyswaps (60,015) – 3,100 60,015 6,970 10,070

Currencyexposure (81,486) 1,898 37,834 (66,549) (954) (109,257)


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TheCompany’scurrencyexposureisasfollows:

SGD RM USD HKD Total $’000 $’000 $’000 $’000 $’000

2012 Financialassets Cashandcashequivalents 430,963 5,639 16 5,042 441,660 Available-for-salefinancialassets 3,189 – – – 3,189 Tradeandotherreceivables (currentandnon-current) 735,211 2,633 97,774 53,846 889,464 Otherfinancialassets 2,414 – 1 4 2,419

1,171,777 8,272 97,791 58,892 1,336,732

Financialliabilities Tradeandotherpayables (113,176) – (49,594) (210) (162,980) Borrowings (370,000) – – – (370,000)

(483,176) – (49,594) (210) (532,980)

Netfinancialassets 688,601 8,272 48,197 58,682 803,752 Netfinancialassetsdenominatedinthe Company’sfunctionalcurrency (688,601) – – – (688,601)

Currencyexposure – 8,272 48,197 58,682 115,151


94



SGD RM USD HKD Total $’000 $’000 $’000 $’000 $’000

2011 Financial assets Cashandcashequivalents 185,382 1,100 1,289 1,220 188,991 Available-for-salefinancialassets 3,189 – – – 3,189 Tradeandotherreceivables (currentandnon-current) 799,143 2,674 40,539 43,827 886,183 Otherfinancialassets 2,068 – 1 3 2,072

989,782 3,774 41,829 45,050 1,080,435

Financial liabilities Tradeandotherpayables (120,679) – (4,623) (36,826) (162,128) Borrowings (245,000) – – – (245,000)

(365,679) – (4,623) (36,826) (407,128)

Net financial assets 624,103 3,774 37,206 8,224 673,307

Netfinancialassetsdenominatedinthe Company’sfunctionalcurrency (624,103) – – – (624,103)

Currencyexposure – 3,774 37,206 8,224 49,204


95




IftheRM,USDandHKDchangeagainsttheSGDby1%(2011:1%)eachwithallothervariablesincludingtaxratebeingheldconstant,theeffectsarisingfromthenetfinancialasset/liabilitypositionwillbeasfollows:

Increase/(decrease) Profitaftertax 2012 2011 $’000 $’000

Group RMagainstSGD –strengthened 63 19 –weakened (63) (19)

USDagainstSGD –strengthened 587 386 –weakened (587) (386)

HKDagainstSGD –strengthened 50 (665) –weakened (50) 665

Company RMagainstSGD –strengthened 83 38 –weakened (83) (38)

USDagainstSGD –strengthened 482 372 –weakened (482) (372)

HKDagainstSGD –strengthened 587 82 –weakened (587) (82)

(ii) Cash flow and fair value interest rate risks Cashflowinterestrateriskistheriskthatthefuturecashflowsofafinancialinstrumentwillfluctuatebecause

ofchanges inmarket interest rates.Fairvalue interest rate risk is the risk that the fairvalueofafinancialinstrumentwillfluctuateduetochangesinmarketinterestrates.


96


(ii) Cash flow and fair value interest rate risks (continued)

TheGroup’sand theCompany’sexposure tocashflow interest rate risksarisesmainly fromfloating rateborrowings.TheGroupmanagesthesecashflowinterestraterisksbymaintainingaprudentmixoffixedandfloatingrateborrowingsandusingfloating-to-fixedinterestrateswaps.

TheGroup’sborrowingsatfloatingratesonwhicheffectivehedgeshavenotbeenenteredintoaredenominatedmainlyinSGDandRM.IftheSGDandRMinterestratesincrease/decreaseby1%(2011:1%)withallothervariablesincludingtaxratebeingheldconstant,theprofitaftertaxwouldhavebeenlower/higherby$0.7million(2011:$1.5million)asaresultofhigher/lowerinterestexpenseontheseborrowings.Othercomprehensiveincomewouldhavebeenhigher/lowerby$5.3million(2011:$10.5million)asaresultofhigher/lowerfairvalueofinterestrateswapsdesignatedascashflowhedgesoffloatingrateborrowings.

TheCompany’sborrowingsatfloatingratesonwhicheffectivehedgeshavebeenenteredintoaredenominatedinSGD.IftheSGDinterestratesincrease/decreaseby1%(2011:1%)withallothervariablesincludingtaxratebeingheldconstant,othercomprehensiveincomewouldhavebeenhigher/lowerby$1.0million(2011:$2.3million)asaresultofhigher/lowerfairvalueofinterestrateswapsdesignatedascashflowhedgesoffloatingrateborrowings.

(b) Creditrisk Creditriskreferstotheriskthatacounterpartywilldefaultonitscontractualobligationsresultinginfinancialloss

to theGroup. Themajor classes of financial assets of theGroup and of theCompany are bank deposits andtradeandotherreceivables.TheGrouphasnosignificantconcentrationofcreditriskwithanysingleentity.TheGrouphaspolicies inplacetoensurethatthesalesofproductsandtherenderingofservicesaretocustomerswithacceptablecreditstanding.Derivativecounterpartiesandcashtransactionsarelimitedtohighcreditqualityfinancialinstitutions.TheGrouphaspoliciesthatlimittheamountofcreditexposuretoanyfinancialinstitution.

AstheGroupandtheCompanydonotholdanycollateral,themaximumexposuretocreditriskforeachclassoffinancial instruments isthecarryingamountofthatclassoffinancial instrumentspresentedonthestatementoffiancialposition,exceptasdisclosedinNote31.


97


32. financial risk management (continued)(b) Creditrisk (continued)

Thecreditriskfortradereceivablesisasfollows:

Group Company 2012 2011 2012 2011 $’000 $’000 $’000 $’000

Bybusinesssegments Developmentproperties 50,092 182,048 – – Investmentproperties 939 742 – – Retail 2,614 2,407 – – Others 3,143 1,632 – –

56,788 186,829 – –

(i) Financial assets that are neither past due nor impaired Bankdepositsthatareneitherpastduenorimpairedaremainlydepositswithbankswithhighcredit-ratings

assignedby internationalcredit-ratingagencies.Tradeandother receivables thatareneitherpastduenorimpairedaresubstantiallycompanieswithagoodcollectiontrackrecordwiththeGroup.

(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

otherreceivables.

Theageanalysisoftradereceivablespastduebutnotimpairedisasfollows:

Group Company 2012 2011 2012 2011 $’000 $’000 $’000 $’000

Pastduelessthan3months 2,608 4,925 – – Pastdue3to6months 769 606 – – Pastdueover6months 553 1,154 – –

3,930 6,685 – –


98

32. financial risk management (continued)(b) Creditrisk (continued)

Thecarryingamountoftradeandotherreceivablesindividuallydeterminedtobeimpairedandthemovementintherelatedallowanceforimpairmentareasfollows:

Group Company 2012 2011 2012 2011 $’000 $’000 $’000 $’000

Grossamount 15,267 12,848 401,253 296,863 Less:Allowanceforimpairment (15,267) (12,848) (199,651) (173,203)

– – 201,602 123,660

Beginningoffinancialyear 12,848 14,245 173,203 164,435 Allowancemade/(writtenback) 3,155 (1,239) 26,448 8,768 Allowanceutilised (730) (6) – – Currencytranslationdifferences (6) (152) – –

Endoffinancialyear 15,267 12,848 199,651 173,203

Theimpairedtradeandotherreceivablesarosemainlyfromloanstosubsidiaryandjointventurecompaniesforwhichrecoverabilityisuncertain.

(c) Liquidityrisk 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 liquidityriskmanagementbymaintaining sufficient cashand theavailability of funding throughanadequate amountofcommittedcreditfacilities.TheGroupraisescommittedfundingfrombothcapitalmarketsandfinancialinstitutionsandprudentlybalancesitsportfoliowithshorttermfundingsoastoachieveoverallcosteffectiveness.


99


32. financial risk management (continued)(c) Liquidityrisk (continued)

The table below analyses the maturity profile of the Group’s and the Company’s financial liabilities (includingderivativefinancialliabilities)basedoncontractualundiscountedcashflows.Balancesduewithin12monthsequaltheircarryingamountsastheimpactofdiscountingisnotsignificant.

Between Between Lessthan 1and2 2and5 Over5 1year years years years $’000 $’000 $’000 $’000

Group 2012 Net-settledinterestrateswaps 7,868 2,092 380 – Gross–settledcrosscurrencyswap –Receipts (2,078) (2,078) (62,657) – –Payments 3,713 3,713 68,873 – Gross-settledcurrencyforwards –Receipts (10,496) – – – –Payments 10,369 – – – Tradeandotherpayables 230,005 – – – Borrowings 59,779 277,708 746,733 274,452 Otherfinancialliabilities – 24,175 6,139 37

299,160 305,610 759,468 274,489

2011 Net-settledinterestrateswaps 12,553 8,602 2,581 – Gross-settledcrosscurrencyswap –Receipts (1,915) (1,909) (62,182) – –Payments 3,724 3,713 72,586 – Gross-settledcurrencyforwards –Receipts (10,070) – – – –Payments 10,331 – – – Tradeandotherpayables 222,855 – – – Borrowings 192,699 201,220 791,822 89,479 Otherfinancialliabilities – 37,212 4,294 43

430,177 248,838 809,101 89,522


100

32. financial risk management (continued)(c) Liquidityrisk (continued)

Between Between Lessthan 1and2 2and5 Over5 1year years years years $’000 $’000 $’000 $’000

Company 2012 Net-settledinterestrateswaps 3,313 175 – – Tradeandotherpayables 164,717 – – – Borrowings 10,657 10,657 206,656 189,845

178,687 10,832 206,656 189,845

2011 Net-settledinterestrateswaps 3,520 3,494 166 – Tradeandotherpayables 163,860 – – – Borrowings 5,846 105,823 152,708 –

173,226 109,317 152,874 –

In addition to the above, the Group and the Company issued financial guarantees of $11.7 million (2011: $8.3million)and$217.0million(2011:$229.4million)respectively(Note31).


101


32. financial risk management (continued)

(d) Capitalrisk TheGroup’sobjectiveswhenmanagingcapitalaretosafeguardtheGroup’sabilitytocontinueasagoingconcern

andtomaintainanoptimalcapitalstructuresoastomaximiseshareholdervalue.Inordertomaintainorachieveanoptimalcapitalstructure,theGroupmayadjusttheamountofdividendpayment,returncapitaltoshareholders,issuenewshares,buybackissuedshares,obtainnewborrowingsorreduceborrowings.

Managementmonitorscapitalbasedondebt-equityratio.Thedebt-equityratioiscalculatedasnetdebtdividedbyshareholders’equity.Netdebtiscalculatedasborrowingslesscashandcashequivalents.

Group Company 2012 2011 2010 2012 2011 (restated) (restated) $’000 $’000 $’000 $’000 $’000

Borrowings 1,225,735 1,179,217 1,335,672 370,000 245,000 Less:Cashandcash equivalents (848,686) (504,235) (594,054) (441,660) (188,991)

Netdebt 377,049 674,982 741,618 (71,660) 56,009

Shareholders’equity 2,106,556 1,895,099 1,613,216 1,056,633 923,401 Debt-equityratio 18% 36% 46% (7%) 6%

TheGroupandtheCompanyarerequiredbysomebankstomaintainacertainlevelofthedebt-equityratio.TheGroupandtheCompanyareincompliancewithallexternallyimposedcapitalrequirementsforthefinancialyearsended30June2012and2011.


102

32. financial risk management (continued)

(e) Fairvaluemeasurements Thefollowingtablepresentsassetsandliabilitiesmeasuredatfairvalueandclassifiedbylevelofthefollowingfair

valuemeasurementhierarchy:

(i) quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities(Level1);

(ii) inputsother thanquotedprices includedwithinLevel1 thatareobservable for theassetor liability,eitherdirectly(i.e.asprices)orindirectly(i.e.derivedfromprices)(Level2);and

(iii) inputsfortheassetorliabilitythatarenotbasedonobservablemarketdata(unobservableinputs)(Level3)

Level1 Level2 Level3 Total $’000 $’000 $’000 $’000

Group 2012 Assets Available-for-salefinancialassets – – 7,170 7,170

Liabilities Derivativefinancialinstruments – 20,669 – 20,669

2011 Assets Available-for-salefinancialassets – – 7,170 7,170


Company 2012 Assets Available-for-salefinancialassets – – 3,189 3,189


2011 Assets Available-for-salefinancialassets – – 3,189 3,189



103


32. financial risk management (continued)(e) Fairvaluemeasurements (continued)

Thefairvalueofinterestrateandcrosscurrencyswapsiscalculatedasthepresentvalueoftheestimatedfuturecashflows.Thefairvalueofcurrencyforwardsisdeterminedusingquotedforwardcurrencyratesattheendofthereportingperiod.TheseinstrumentsareclassifiedasLevel2andcomprisederivativefinancialinstruments.Thevaluationtechniqueforavailable-for-salefinancialassetsisbasedonunobservableinputs,assuch,theseassetsareclassifiedasLevel3.Anychangestotheseunobservableinputswillnothaveamaterialimpactonthefairvalueoftheseavailable-for-salefinancialassets.

(f) Financialinstrumentsbycategory Thecarryingamountofthedifferentcategoriesoffinancialinstrumentsisasdisclosedonthefaceofthestatements

offinancialpositionandinNotes11and16tothefinancialstatements,exceptforthefollowing:


Loansandreceivables 1,151,693 934,275 1,333,543 1,077,246 Financialliabilitiesatamortisedcost 1,486,091 1,443,104 532,980 407,128


104

33. related party transactions

In addition to the related party information disclosed elsewhere in the financial statements, the following significanttransactions took place between the Group and related parties during the financial year at terms agreed between theparties:

(a) Renderingofservices

Group 2012 2011 $’000 $’000

Commissionincomereceivedfromjointventurecompanies 1,076 1,965 Managementandservicefeesreceivedfromjointventurecompanies 2,542 2,708 Managementfeespaidtoanassociatedcompany 833 835 Paymentsonbehalfofjointventurecompanies 6,754 9,551

(b) Keymanagementpersonnelcompensation Keymanagementpersonnelcompensationisasfollows:

Group 2012 2011 $’000 $’000

Salariesandothershorttermemployeebenefits 11,452 11,698 Share-basedpayment 1,075 1,330

12,527 13,028

Included in the above is compensation to directors of the Company which amounted to $7.5 million (2011:$8.1million).


105


34. segment information

The Group is organised into three main business segments – development properties, investment properties andretail.OtheroperationsoftheGroupcomprisemainlygarmentmanufacturingandinvestmentholding,neitherofwhichconstitutesaseparatelyreportablesegment.Thesegmentinformationforthereportablesegmentsisasfollows:

Development Investment properties properties Retail Others Group 2012 $’000 $’000 $’000 $’000 $’000

Revenue 363,919 37,891 216,462 6,616 624,888

EBIT 118,960 39,138 21,540 (22,189) 157,449 Interestincome 8,058

Operatingprofit 165,507

Financecosts (37,161) Shareofprofits/(losses)ofassociated andjointventurecompanies 75,382 90,519 8,138 (2,202) 171,837

Profitbeforeincometax 300,183

Incometaxexpense (36,958)

Totalprofit 263,225

Segmentassets 1,946,475 744,254 62,473 132,529 2,885,731 Investmentinanassociatedcompany 157,129 463,090 4,621 33,046 657,886 Investmentsinjointventurecompanies 101,517 13,589 33,793 12,533 161,432 Duefromassociatedand jointventurecompanies 186,738 6,108 1,748 28,477 223,071

2,391,859 1,227,041 102,635 206,585 3,928,120

Taxrecoverable 1,740

Consolidatedtotalassets 3,929,860

Segmentliabilities 109,110 13,964 29,144 131,863 284,081 Borrowings 429,056 230,877 – 565,802 1,225,735

538,166 244,841 29,144 697,665 1,509,816

Currentincometaxliabilities 83,561 Deferredincometaxliabilities 66,389

Consolidatedtotalliabilities 1,659,766

Capitalexpenditure 306 994 5,143 2,822 9,265 Depreciation 264 1,805 6,304 3,565 11,938


106

34. segment information (continued)

Development Investment properties properties Retail Others Group 2011(restated) $’000 $’000 $’000 $’000 $’000

Revenue 503,130 37,055 202,350 8,574 751,109

EBIT 251,416 98,164 19,900 (31,198) 338,282 Interestincome 7,915

Operatingprofit 346,197

Financecosts (39,868) Shareofprofits/(losses)ofassociated andjointventurecompanies 63,240 97,746 2,448 (4,088) 159,346

Profitbeforeincometax 465,675

Incometaxexpense (57,984)

Totalprofit 407,691

Segmentassets 1,857,749 730,709 66,609 120,945 2,776,012 Investmentinanassociated company 156,772 352,669 4,923 29,912 544,276 Investmentsinjointventure companies 141,119 12,743 23,573 12,334 189,769 Duefromassociatedandjoint venturecompanies 178,546 6,563 1,221 25,625 211,955

2,334,186 1,102,684 96,326 188,816 3,722,012




647,506 239,923 30,052 562,801 1,480,282



Capitalexpenditure 625 12,524 10,066 2,110 25,325 Depreciation 255 1,816 5,549 3,480 11,100


107


34. segment information (continued)

Development Investment properties properties Retail Others Group 2010(restated) $’000 $’000 $’000 $’000 $’000

Segmentassets 1,864,278 542,643 50,516 236,275 2,693,712 Investmentinanassociatedcompany 181,339 300,108 2,932 24,475 508,854 Investmentsinjointventurecompanies 106,891 10,357 15,277 16,932 149,457 Duefromassociatedandjoint venturecompanies 187,448 7,884 954 22,197 218,483

2,339,956 860,992 69,679 299,879 3,570,506




712,122 229,221 28,080 670,403 1,639,826



TheGroup’s threemainbusinesssegmentsoperate in threemaingeographicalareas–Singapore,Malaysiaand thePeople’sRepublicofChina(“PRC”)/HongKongSAR.

Revenue Non-currentassets 2012 2011 2012 2011 2010 (restated) (restated) (restated) $’000 $’000 $’000 $’000 $’000

Singapore 507,576 636,706 1,015,635 1,018,880 917,117 Malaysia 116,426 113,504 106,769 106,658 106,119 PRC/HongKongSAR 886 899 684,604 565,321 527,515

624,888 751,109 1,807,008 1,690,859 1,550,751


108

35. companies in the group

InformationrelatingtothecompaniesintheGroupisgivenbelow,withtheexceptionofinactiveanddormantcompanies.Singapore-incorporatedsubsidiaryandjointventurecompaniesareauditedbyPricewaterhouseCoopersLLP,Singaporeunlessotherwiseindicated.

Equityheld Countryof bytheGroup incorporation/ 2012 2011 Nameofcompanies placeofbusiness Principalactivities % %

(a) WingTaiHoldingsLimited Singapore–Quotedon Investmentholding n/a n/a SingaporeExchange SecuritiesTrading Limited

(b) Subsidiarycompanies WingTaiMalaysiaBerhad ! Malaysia–Quotedon Investmentholding 61.1 60.4 BursaMalaysia SecuritiesBerhad

AngelWing(M)Sdn.Bhd. *,! Malaysia Propertydevelopment 61.1 60.4

AngkasaIndahSdn.Bhd. *,! Malaysia Propertydevelopment 61.1 60.4

BraveDragonLtd *,% BritishVirgin Investmentholding 89.4 89.4 Islands(“BVI”)/ HongKongSAR

ChanlaiSdn.Bhd. *,! Malaysia Propertydevelopment 61.1 60.4

CrossbrookGroupLtd # BVI/HongKongSAR Investmentholding 100 100

DNPClothingSdn.Bhd. *,! Malaysia Retailingofgarments 61.1 60.4

DNPFashionSdn.Bhd. *,! Malaysia Retailingofgarments 61.1 60.4

DNPHartajayaSdn.Bhd. *,! Malaysia Propertydevelopment 61.1 60.4

DNPJayaSdn.Bhd. *,! Malaysia Propertyinvestment 61.1 60.4

DNPLandSdn.Bhd. *,! Malaysia Propertydevelopment 61.1 60.4

DNPProperty *,! Malaysia Projectmanagementand 61.1 60.4 ManagementSdn.Bhd. maintenanceofproperties

D&P-EjenawaSdn.Bhd. *,! Malaysia Propertydevelopment 61.1 60.4

FoxFashionApparel * Singapore Retailingofgarments 100 100 (S)PteLtd

n/a:notapplicable


109


35. companies in the group (continued)


(b) Subsidiarycompanies (continued)

GrandEasternRealty& *,! Malaysia Propertydevelopment 61.1 60.4 DevelopmentSdn.Bhd.

Harta-AmanSdn.Bhd. *,! Malaysia Propertydevelopment 61.1 60.4 HartamajuSdn.Bhd. *,! Malaysia Propertydevelopment 61.1 60.4 Jiaxin(Suzhou)Property *,> PRC Propertydevelopment, 75 75 DevelopmentCo.,Ltd investmentand management

QualityFrontierSdn.Bhd. *,! Malaysia Propertydevelopment 61.1 60.4

SenihartaSdn.Bhd. *,! Malaysia Propertyinvestment 61.1 60.4

SriRampaianSdn.Bhd. *,! Malaysia Manufactureoftextile 61.1 60.4 garments

StarpuriDevelopmentSdn.Bhd.*,! Malaysia Propertydevelopment 61.1 60.4

SuzhouProperty * Singapore Propertydevelopmentand 75 75 DevelopmentPteLtd investmentholding

TanahnagaSdn.Bhd. *,! Malaysia Propertydevelopment 61.1 60.4

WinaceInvestmentPteLtd * Singapore Investmentholding 100 100

WincharmInvestmentPteLtd * Singapore Investmentholding 100 100

WincheerInvestmentPteLtd * Singapore Propertyinvestmentand 100 100 development

WindealInvestmentPteLtd * Singapore/PRC Propertyinvestment 100 100

WingoldInvestmentPteLtd * Singapore Investmentholding 100 100

WinglowInvestmentPte.Ltd. * Singapore Investmentholding 100 100

WinmaxInvestmentPteLtd * Singapore Propertyinvestment 100 100

WinnervestInvestmentPteLtd * Singapore Propertyinvestmentand 100 100 development


110




WinnorthInvestmentPteLtd * Singapore Propertyinvestmentand 100 100 development

WinquestInvestmentPteLtd * Singapore Propertyinvestmentand 60 60 development

WinroseInvestmentPteLtd * Singapore Propertyinvestmentand 100 100 development

WinshineInvestmentPteLtd * Singapore Propertyinvestment 100 100

WinslandInvestmentPteLtd * Singapore Propertyinvestment 100 100

WinsmartInvestmentPteLtd * Singapore Propertyinvestmentand 100 100 development

WinswiftInvestmentPteLtd * Singapore Investmentholding 61.1 60.4

WintrustInvestmentPteLtd * Singapore Propertyinvestmentand 100 100 developmentand investmentholding

WinworthInvestmentPteLtd * Singapore Propertyinvestmentand 85 85 development

WingMei(M)Sdn.Bhd. *,! Malaysia Propertyinvestment 61.1 60.4

WingTai(China) * Singapore Investmentholding 100 100 InvestmentPte.Ltd.

WingTaiClothingPteLtd * Singapore Retailingofgarments 100 100

WingTaiInvestment Singapore Investmentholding 100 100 &DevelopmentPteLtd

WingTaiInvestment * Singapore Managementof 100 100 ManagementPteLtd investmentproperties

WingTaiLandPteLtd Singapore Investmentholding 100 100


111





WingTaiProperty * Singapore Projectmanagementand 100 100 ManagementPteLtd maintenanceofproperties

WingTaiRetailPte.Ltd. Singapore Investmentholding 100 100

WingTaiRetail * Singapore Managementofretail 100 100 ManagementPte.Ltd. operations

Yoshinoya(S)PteLtd * Singapore Restaurantoperator 100 100

(c) Associatedcompany WingTaiPropertiesLimited *,% Bermuda–Quoted Propertydevelopment, 33.6 33.8 onTheStock propertyinvestmentand ExchangeofHong management,hospitality KongLimited/Hong investmentand KongSAR management,garment manufacturing,and investingactivities

(d) Jointventurecompanies ChoiceHomesBetaPteLtd *,^ Singapore Propertyinvestment 30 30 anddevelopment

OrwinDevelopmentLimited * Singapore Propertyinvestment 40 40 anddevelopment

SummervalePropertiesPteLtd *,& Singapore Propertyinvestment 50 50 anddevelopment

WinprideInvestmentPte.Ltd. * Singapore Propertyinvestment 40 40 anddevelopment

BurlingtonSquare *,& Singapore Propertyinvestment 50 50 InvestmentPteLtd

BurlingtonSquare PropertiesPteLtd *,& Singapore Propertytrading 50 50


112



(d) Jointventurecompanies (continued)

G2000Apparel(S)PteLtd * Singapore Retailingofgarments 45 45

Uniqlo(Singapore)Pte.Ltd. *,~ Singapore Retailingofgarments 49 49

Uniqlo(Malaysia)Sdn.Bhd. *,! Malaysia Retailingofgarments 27.5 27.2

OptimaInvestment& *,& Singapore Realestate 40 – DevelopmentPteLtd

KualitiGoldSdnBhd *,! Malaysia Propertyinvestment 30.5 30.2

* HeldbyGroupcompanies.

! AuditedbyErnstandYoung,Malaysia.

# Thesecompaniesarenotrequiredtobeauditedbylawinthecountryofincorporation.

% AuditedbyPricewaterhouseCoopers,HongKong.

& AuditedbyKPMGLLP,Singapore.

^ AuditedbyDeloitte&ToucheLLP,Singapore.

~ AuditedbyErnstandYoungLLP,Singapore.

> AuditedbyRSM,China.

In accordance to Rule 716 of the Singapore Exchange Securities Trading Limited – Listing Rules, the AuditCommitteeandtheBoardofDirectorsoftheCompanyconfirmedthattheyaresatisfiedthattheappointmentofdifferentauditorsforitssignificantsubsidiaryandassociatedcompanieswouldnotcompromisethestandardandeffectivenessoftheauditoftheCompany.


113


36. new or revised accounting standards and interpretations Belowarethemandatorystandardsandamendmentstoexistingstandardsthathavebeenpublished,andarerelevant

for theGroup’s accountingperiodsbeginningonor after 1 July 2012or laterperiodsandwhich theGrouphasnot earlyadopted:

AmendmentstoFRS12Income Taxes(effectiveforannualperiodsbeginningonorafter1January2012)

Theamendmentintroducesapresumptionthataninvestmentpropertyisrecoveredentirelythroughsale.Accordingly,unlessthepresumptionisrebutted,themeasurementofthedeferredtaxliabilityordeferredtaxassetshallreflectthetaxconsequencesofrecoveringthecarryingamountoftheinvestmentpropertyentirelythroughsale.Thispresumptionisrebuttediftheinvestmentpropertyisdepreciableandisheldwithinabusinessmodelwhoseobjectiveistoconsumesubstantially all of the economic benefits embodied in the investment property over time, rather than through sale.Currently,theGrouprecognisesdeferredtaxliabilityonitsinvestmentpropertiesonthebasisthatthecarryingamountofitsinvestmentpropertiesarerecoveredthroughuse.

TheGroupwill apply this amendment from financial year beginning on 1 July 2012 and the financial impactwill beadjustedretrospectively.Upon initialadoption, thedeferredtax liabilitiesontheGroup’s investmentpropertieswillberecognisedonthebasisofrecoverythroughsale.Basedonmanagement’sassessment,theGroup’sdeferredtaxliabilitiesandinvestmentinanassociatedcompanywilldecreaseandincreasebyapproximately$49.9millionand$78.5millionrespectively,tobeadjustedagainstretainedearnings.

37. authorisation of financial statements

ThesefinancialstatementshavebeenauthorisedforissueinaccordancewitharesolutionoftheBoardofDirectorson18September2012.


114

share capital No.ofIssuedShares: 793,927,260No.ofIssuedShares(excludingTreasuryShares): 783,278,060No./percentageofTreasuryShares: 10,649,200(1.36%)ClassofShares: OrdinarySharesVotingRights(excludingTreasuryShares): 1votepershare

distribution of shareholders

SizeofShareholdings No.ofShareholders % No.ofShares %

1to999 557 4.06 211,136 0.031,000to10,000 10,360 75.52 43,495,692 5.5510,001to1,000,000 2,774 20.22 98,214,797 12.541,000,001andabove 28 0.20 641,356,435 81.88

Total 13,719 100.00 783,278,060 100.00

twenty largest shareholders

Name No.ofShares %

1 WingSunDevelopmentPrivateLimited 222,235,490 28.372 DBSVickersSecurities(Singapore)PteLtd 73,706,366 9.413 WinlynInvestmentPteLtd 72,717,436 9.284 DBSNomineesPteLtd 59,659,354 7.625 CitibankNomineesSingaporePteLtd 50,051,405 6.396 HSBC(Singapore)NomineesPteLtd 40,805,182 5.217 DBSNServicesPteLtd 21,661,837 2.778 UOBKayHianPteLtd 21,206,739 2.719 UnitedOverseasBankNomineesPteLtd 14,109,089 1.8010 EmpireGateHoldingsLimited 12,119,572 1.5511 RafflesNominees(Pte)Ltd 9,751,084 1.2412 DBNominees(S)PteLtd 5,610,348 0.7213 LiuHingYuenPatricia@LiuPuiYuk 5,267,409 0.6714 OCBCNomineesSingaporePteLtd 5,230,328 0.6715 WinwayInvestmentPteLtd 3,529,166 0.4516 MaybankKimEngSecuritiesPteLtd 2,949,539 0.3817 CIMBSecurities(Singapore)PteLtd 2,605,732 0.3318 MorganStanleyAsia(Singapore)SecuritiesPteLtd 2,496,700 0.3219 NgBeeHar 2,106,000 0.2720 PhillipSecuritiesPteLtd 1,932,173 0.25

Total 629,750,949 80.41

percentage of shareholding held in the hands of public

Asat17September2012,approximately49.04%oftheissuedordinarysharesoftheCompanyareheldbythepublic.Rule723oftheListingManualoftheSingaporeExchangeSecuritiesTradingLimitedhasaccordinglybeencompliedwith.

shareholding statisticsAs at 17 September 2012

115


substantial shareholders as shown in the register of substantial shareholders

Name Interest(No.ofOrdinaryShares)

ChengWaiKeung 395,038,6561

EdmundChengWaiWing 310,601,6642

ChristopherChengWaiChee 307,207,2483

EdwardChengWaiSun 307,072,4983

DeutscheBankInternationalTrustCo.(Cayman)Limited 307,072,4983

DeutscheBankInternationalTrustCo.Limited 307,072,4983

WingSunDevelopmentPrivateLimited 222,235,490WingTaiAsiaHoldingsLimited 234,355,0624

WinlynInvestmentPteLtd 72,717,436TerebeneHoldingsInc 72,717,4365

MetroChampionLimited 72,717,4366

AscendCapitalLimited 68,207,092

1 Includes 395,038,656 shares beneficially ownedbyWingSunDevelopmentPrivate Limited,Winlyn InvestmentPte Ltd,WinwayInvestmentPteLtd,EmpireGateHoldingsLimited,WilmaEnterprisesLimitedandAscendCapitalLimited.

2 Includes 310,601,664 shares beneficially ownedbyWingSunDevelopmentPrivate Limited,Winlyn InvestmentPte Ltd,WinwayInvestmentPteLtdandEmpireGateHoldingsLimited.

3 Includes307,072,498sharesbeneficiallyownedbyWingSunDevelopmentPrivateLimited,WinlynInvestmentPteLtdandEmpireGateHoldingsLimited.

4 Includes234,355,062sharesbeneficiallyownedbyWingSunDevelopmentPrivateLimitedandEmpireGateHoldingsLimited.

5 SharesbeneficiallyownedbyWinlynInvestmentPteLtdinwhichTerebeneHoldingsIncisdeemedtohaveaninterest.

6 SharesbeneficiallyownedbyWinlynInvestmentPteLtdinwhichMetroChampionLimitedisdeemedtohaveaninterest.

shareholding statisticsAs at 17 September 2012

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Contents

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chairman’s me s sage

property

hospitality

retail

c orporate data

board of directors

key management

c orporate g overnance

awards

calendar of events

financial reports

Wing Tai AR_IFC-IBCSize:438X280mm Equus While every effort has been taken to carry out instruction to customers satisfaction


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The Value of TenacityAnnual Report 2012

Wing

Tai Ho

lding

s Limited

Annual R

epo

rt 2012

The cover shows the architectural lines of Foresque Residences, Wing Tai’s new residential development that is set above the largest expanse of nature in the Upper Bukit Timah precinct. Designed by Arc Studio Architecture + Urbanism.

Wing Tai AR_FC-BCSize:438X280mm Equus While every effort has been taken to carry out instruction to customers satisfaction


1 2 3 4 5 6 7 8 9 10 OK 12-011 SL

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wing tai holdings limited annual report 2012 annual report 2012... · 2019-01-16 · helios...

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