0175 Geely Automobile Holdings Limited Annual Report 2011

Annual Report 2011Geely Automobile Holdings LimitedNOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTSFor the year ended 31 December 201126. Borrowings2011 2010Note RMB’000 RMB’000Bank loans secured by the Group’s assets (a) 2,068,965 1,560,381Bank loans guaranteed by the ultimate holdingcompany (b) 691,319 931,000Other bank loans (c) 268,000 167,600Bank loans, unsecured (d) 331,281 –Total bank borrowings 3,359,565 2,658,981Loan from government (e) 15,000 –3,374,565 2,658,981At the balance sheet date, the Group’s borrowings were repayable as follows:2011 2010RMB’000RMB’000On demand or within one year 2,531,639 1,096,669In the second year 691,926 845,417In the third to fifth year 151,000 716,8953,374,565 2,658,981Less: amounts due within one year shown under current liabilities (2,531,639) (1,096,669)842,926 1,562,312Note:(a)These bank loans, together with notes payable, are secured by the Group’s property, plant and equipment ofRMB1,188,331,000 (2010: RMB896,554,000), prepaid land lease payments of RMB855,875,000 (2010: RMB502,856,000),notes receivable of RMB457,370,000 (2010: nil) (note 21(b)) and bank deposits of RMB353,532,000 (2010:RMB242,582,000) and carry interest at 5.32% to 6.98% (2010: 5.04% to 5.56%) per annum.(b) These bank loans are guaranteed by the Company’s ultimate holding company and carry interest at 3.37% to 6.9%(2010: 5.04% to 5.76%) per annum.(c)(d)(e)Other bank loans represent bank loans obtained by a subsidiary of the Company which are guaranteed by other thirdparties and carry interest at 5.6% to 6.65% (2010: 5.31%) per annum.Unsecured bank loans carry interest at 2.26% to 6.65% (2010: nil) per annum.During the year ended 31 December 2011, the Group received an interest-free loan of RMB15 million from the governmentfor financing the new plant construction. The loan is interest-free, secured by the Group’s prepaid land lease paymentsof RMB24,962,000 and repayable on demand.Of the above total borrowings, approximately RMB1,435,500,000 (2010: RMB1,318,600,000) and RMB1,939,065,000(2010: RMB1,340,381,000) are fixed-rate borrowings and variable-rate borrowings respectively.102