Annual Report (in PDF) - Hongkong Land

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Notes to the Financial Statements 9 Share of results of joint ventures 2007 2006 US$m US$m By business Commercial property 6.5 (0.9 ) Residential property 17.5 0.7 24.0 (0.2) Increase in fair value of investment properties – Commercial property 352.8 46.7 – Residential property 9.0 3.1 361.8 49.8 Asset impairment provision, reversals and disposals 0.8 1.1 386.6 50.7 Results are shown after tax and minority interests. The share of revenue of joint ventures was US$128.7 million (2006: US$42.2 million). 10 Tax 2007 2006 US$m US$m Current tax (49.8) (21.8) Deferred tax – increase in fair value of investment properties (463.2) (340.2) – other temporary differences (6.4) (3.5) (469.6) (343.7) (519.4 ) (365.5 ) Reconciliation between tax expense and tax at the applicable tax rate Tax at applicable tax rate (521.7) (389.0) Changes in fair value of investment properties not deductible or taxable in determining taxable profit 0.8 16.3 Asset impairment provisions, reversals and disposals not taxable/(deductible) in determining taxable profit 1.7 (0.7) Expenses not deductible in determining taxable profit (4.3) (1.0) Other income not subject to tax 2.3 5.4 Utilisation of previously unrecognised tax losses 0.6 1.5 Overprovision in prior years 1.5 2.0 Losses not recognised (0.3) – (519.4 ) (365.5 ) The applicable tax rate for the year was 17.4% (2006: 16.4%) and represents the weighted average of the rates of taxation prevailing in the territories in which the Group operates. The increase in the applicable tax rate is caused by a change in the profitability of the Group’s subsidiaries in the respective territories. Share of tax of joint ventures of US$90.5 million (2006: US$12.8 million) are included in share of results of joint ventures. 34 Hongkong Land
11 Earnings per share Basic earnings per share are calculated on profit attributable to shareholders of US$2,839.6 million (2006: US$1,900.9 million) and on the weighted average number of 2,295.2 million (2006: 2,228.1 million) shares in issue during the year. Diluted earnings per share are calculated on profit attributable to shareholders of US$2,859.3 million (2006: US$1,920.4 million), which is after adjusting for the effects of the conversion of convertible bonds, and on the weighted average number of 2,399.1 million (2006: 2,332.0 million) shares in issue during the year. The number of shares for basic and diluted earnings per share is reconciled as follows: Ordinary shares in millions 2007 2006 Weighted average number of shares in issue 2,295.2 2,228.1 Adjustment for shares to be issued on conversion of convertible bonds 103.9 103.9 Weighted average number of shares for diluted earnings per share calculation 2,399.1 2,332.0 Earnings per share are additionally calculated based on underlying profit attributable to shareholders. The difference between underlying profit attributable to shareholders and profit attributable to shareholders is reconciled as follows: 2007 2006 Basic Diluted Basic Diluted earnings earnings earnings earnings per share per share per share per share US$m US¢ US¢ US$m US¢ US¢ Underlying profit attributable to shareholders 344.7 15.02 244.7 10.98 Non-trading items (see Note 12) 2,494.9 1,656.2 Profit attributable to shareholders 2,839.6 123.72 1,900.9 85.31 Interest expense on convertible bonds (net of tax) 19.7 19.5 Profit for calculation of diluted earnings per share 2,859.3 119.18 1,920.4 82.35 12 Non-trading items 2007 2006 US$m US$m Revaluation surpluses of investment properties 2,588.9 1,952.6 Deferred tax charges on revaluation surpluses of investment properties (463.2) (340.2) Share of revaluation surpluses of investment properties of joint ventures (net of deferred tax) 361.8 49.8 Asset impairment provisions, reversals and disposals 9.4 (5.8) Share of asset disposals of joint ventures 0.8 1.1 Minority interests (2.8) (1.3) 2,494.9 1,656.2 Annual Report 2007 35
Page 1 and 2: Hongkong Land Holdings Limited Annu
Page 3 and 4: Highlights • Continued strength i
Page 5 and 6: The newly refurbished retail areas
Page 7 and 8: The Singapore office market also wi
Page 9 and 10: Central portfolio at 31st December
Page 11 and 12: Residential Property The profit con
Page 13 and 14: Financial Review Financial Market R
Page 15 and 16: As Management considers that the Gr
Page 17 and 18: Directors’ Profiles Simon Keswick
Page 19 and 20: Consolidated Balance Sheet at 31st
Page 21 and 22: Consolidated Cash Flow Statement fo
Page 23 and 24: Amendments to IFRS 2, Share-based P
Page 25 and 26: g. Depreciation Depreciation is cal
Page 27 and 28: Certain derivative transactions, wh
Page 29 and 30: Price risk The Group is exposed to
Page 31 and 32: The Group determines the appropriat
Page 33 and 34: Underlying profit attributable to s
Page 35: 7 Operating profit 2007 2006 US$m U
Page 39 and 40: 14 Joint ventures 2007 2006 US$m US
Page 41 and 42: 17 Pension plans The Group has defi
Page 43 and 44: 18 Properties for sale 2007 2006 US
Page 45 and 46: 21 Non-current assets classified as
Page 47 and 48: 23 Borrowings continued Fixed rate
Page 49 and 50: 25 Revenue and other reserves conti
Page 51 and 52: 31 Derivative financial instruments
Page 53 and 54: 34 Related party transactions In th
Page 55 and 56: 36 Principal subsidiaries and joint
Page 57 and 58: 36 Principal subsidiaries and joint
Page 59 and 60: Five Year Summary 2003 2004 2005 20
Page 61 and 62: Directors’ Appointment, Retiremen
Page 63 and 64: Prior to completion and announcemen
Page 65 and 66: Shareholder Information Financial C
Page 67 and 68: Report of the Valuers To Hongkong L
Page 69 and 70: Residential Development Property fo
Page 71 and 72: 11 9 8 1 2 10 6 5 3 7 12 4 13
Page 73: Hongkong Land Holdings Limited Jard

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