2006 - TCL Communication Technology Holdings Limited

TCL COMMUNICATION TECHNOLOGY HOLDINGS LIMITED
Notes to Financial Statements
31 December 2006
8. REVENUE, OTHER INCOME AND GAINS
Revenue, which is also the Group’s turnover, represents the net invoiced value of mobile phones and related
components sold and services rendered during the year, after allowances for returns and trade discounts. All
significant intra-group transactions have been eliminated on combination.
An analysis of turnover, other income and gains is as follows:
2006 2005
HK$’000
HK$’000
Revenue
Sale of mobile phones and related components 5,501,627 5,663,696
Other income
Interest income 12,760 16,522
Subsidy income 30,438 22,043
Value-added services income 4,745 19,521
Excess fund contributed from minority interest
for the release of intellectual properties royalties guarantee – 91,791
Reversal of restructuring reserves contributed from minority interest – 24,258
Deemed gain on dilution of interest in an associate** 32,435 –
Exchange gain 4,479 –
Royalty income 18,646 –
Insurance claim income 3,465 –
Others 16,720 6,604
123,688 180,739
Gains
Gain on disposal of items of property, plant and equipment 19,293 –
Excess over the cost of business combination* – 6,812
19,293 6,812
Other income and gains 142,981 187,551
* Excess over the cost of business combination represents the portion of negative goodwill arising on acquisition in
expectation of identified future losses and expenses, which did not represent identifiable liabilities as at the date of
acquisition, recognised in 2005.
** The deemed gain on dilution of interest in an associate for the year ended 31 December 2006 represented the gain on
the dilution of the Company’s shareholding interest in JRD Communication Inc. (“JRDC”) from 46.25% to 38.54%, net of
the disposal of the related positive goodwill of approximately HK$733,000 as a result of the receipt by JRDC of US$16
million for the new share issue in June 2006.
Annual Report 2006
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