2006 - TCL Communication Technology Holdings Limited

More documents

Recommendations

Info

TCL COMMUNICATION TECHNOLOGY HOLDINGS LIMITED Notes to Financial Statements 31 December 2006 26. TRADE AND NOTES PAYABLES An aged analysis of the Group’s trade and notes payables as at the balance sheet date, based on the invoice date, is analysed as follows: Group Company 2006 2005 2006 2005 HK$’000 HK$’000 HK$’000 HK$’000 Within 6 months 1,138,334 1,690,543 2,097 3,330 7 to 12 months 65,618 42,248 – – More than 1 year 8,718 7,819 – – 1,212,670 1,740,610 2,097 3,330 Trade and notes payables are non-interest-bearing and have an average term of three months. All trade and notes payables are not secured by the pledged deposits. 27. PROVISION FOR WARRANTIES The movement of provision for warranties during the year is summarised as follows: Group 2006 2005 HK$’000 HK$’000 At beginning of year 108,294 143,248 Provision 102,502 156,470 Utilized (133,751) (179,052) Exchange difference 3,950 (12,372) At end of year 80,995 108,294 The Group generally provides one to two years warranty to its customers on all products, under which faulty products are repaired or replaced. The amount of the provision for the warranties is estimated based on sales volumes and past experience of the level of repairs and return. The estimation basis is reviewed on an ongoing basis and revised where appropriate. During the year, the provision of warranties was not discounted, as the effect of discounting was not material. 92 Annual Report 2006
TCL COMMUNICATION TECHNOLOGY HOLDINGS LIMITED Notes to Financial Statements 31 December 2006 28. CONVERTIBLE NOTES On 11 May 2005, the Company entered into the subscription agreement with TCL Corporation, its ultimate controlling shareholder, for the issue of an aggregate of Euro 20,000,000 principal amount (equivalent to HK$185,100,000) of 3% Convertible Notes (“CN”) to TCL Corporation. The CN was issued on 29 July 2005. As at the balance sheet date, there was no movement in the number of these CN. The CN has a term of 3 years and TCL Corporation has the right to convert the CN at the conversion price of HK$0.58175 per share in whole or in part in the principal amount into ordinary shares in amounts of not less than HK$10,000,000 on each conversion. Subsequent to the open offer completed on 27 February 2006, the conversion price of CN is adjusted to HK$0.528324 per share. The Company has the option to redeem, in whole or any part, the CN at 100% of their principal amount plus interest accrued to but excluding the date of redemption after 24 months from the issue date. The fair value of the liability component was estimated at the issuance date using an equivalent market interest rate for a similar note without a conversion option. The residual amount is assigned as the equity component and is included in shareholder’s equity. The convertible notes have been split as to the liability and equity components, as follows: 2006 2005 HK$’000 HK$’000 Nominal value of convertible note issued 185,100 185,100 Equity component (19,430) (19,430) Liability component at the issuance date 165,670 165,670 Interest expense 5,553 2,373 Interest paid (2,799) – Liability component at 31 December 168,424 168,043 Annual Report 2006 93
Page 1 and 2:
TCL COMMUNICATION TECHNOLOGY HOLDIN
Page 3 and 4:
e EYE-CATCHING Contents Financial H
Page 5 and 6:
Page 7 and 8:
Page 9 and 10:
One of the winning factors in the m
Page 11 and 12:
Page 13 and 14:
TIME for style We believe that styl
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Attraction TALKS We offer a wide ra
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44: TCL COMMUNICATION TECHNOLOGY HOLDIN
Page 93: TCL COMMUNICATION TECHNOLOGY HOLDIN
Page 111 and 112: Designed & Produced by Capital Fina
show all

2006 - TCL Communication Technology Holdings Limited

Create successful ePaper yourself

Delete template?

Save as template?