Sun Art Retail Group Limited - TodayIR.com

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
10 FIXED ASSETS (CONTINUED)
(i)
All the Group’s fixed assets are located in the PRC.
(ii)
Land use rights represent the fees and related expenses in obtaining land use rights for
periods ranging from 40 to 70 years. As at 31 December 2012, the Group had not obtained
land use rights certificates for certain land use rights with an aggregate carrying amount of
RMB900 million (2011: RMB226 million). Notwithstanding this, the directors are of the opinion
that the Group owned the beneficial title to these land use rights as at 31 December 2012
and 2011.
(iii)
As at 31 December 2012, the Group had not obtained property ownership certificates for
certain buildings with an aggregate carrying amount of RMB2,114 million (2011: RMB2,447
million). Notwithstanding this, the directors are of the opinion that the Group owned the
beneficial title to these buildings as at 31 December 2012 and 2011.
(iv)
As set out in note 1(h), the Group has applied the cost model for its investment properties.
The directors have estimated the fair value of the investment properties as at 31 December
2012 to be RMB5,880 million, using discounted cash flow techniques based on contracted
and expected cash inflows and outflows arising from the investment properties (2011:
RMB4,585 million). The investment properties were not valued by an independent valuer as
at 31 December 2012 and 2011.
(v)
The Group leases out investment properties and certain other property, plant and equipment
within the hypermarket buildings under operating leases which typically run for an initial
period of 1 to 3 years. The Group’s total future minimum lease receipts under non-cancellable
operating leases are receivable as follows:
Year ended 31 December
2012 2011
RMB million RMB million
Within 1 year 1,426 1,274
After 1 year but within 5 years 811 625
After 5 years 281 175
2,518 2,074
In addition to the minimum amounts disclosed above, certain lessees have commitments
to pay additional rent to the Group if their sales revenue exceeds predetermined levels.
Contingent rental receivables are not included in the above.
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Sun Art Retail Group Limited
Annual Report 2012