Notes to the consolidated financial statementsfor the year ended 31 December <strong>2007</strong>14. PROPERTY, PLANT AND EQUIPMENT (Continued)Furniture andfixtures, officeConstruction Plant and Leasehold equipment andin progress machinery improvements motor vehicles TotalHK$’000 HK$’000 HK$’000 HK$’000 HK$’000DEPRECIATIONAt 1 January 2006 – 1,078 83 310 1,471Exchange adjustments – 44 – 5 49Charge for the year – 1,100 131 172 1,403Disposals – (14 ) – (14 ) (28 )At 31 December 2006 – 2,208 214 473 2,895Exchange adjustments – 92 – 10 102Charge for the year – 1,536 349 397 2,282Disposals – (3) – (54 ) (57 )At 31 December <strong>2007</strong> – 3,833 563 826 5,222NET BOOK VALUEAt 31 December <strong>2007</strong> 7,165 19,815 2,603 2,663 32,246At 31 December 2006 – 11,252 247 783 12,282GEELY AUTOMOBILE HOLDINGS LIMITED83ANNUAL REPORT 2 0 0 7
Notes to the consolidated financial statementsfor the year ended 31 December <strong>2007</strong>15. INTEREST IN ASSOCIATES<strong>2007</strong> 2006HK$’000HK$’000Share of net assets 2,106,516 1,666,999Goodwill 18,940 –2,125,456 1,666,999Represented by:Cost of investments in associatesUnlisted 846,642 1,033,937Listed in overseas 203,732 –Share of post-acquisition profits and reserves 1,056,142 633,062Goodwill 18,940 –2,125,456 1,666,999Fair value of listed investments 495,378 –During the year, the Group, a related party and Manganese Bronze Holdings plc (“MBH”), a <strong>com</strong>panywhich shares are listed on the London Stock Exchange, jointly set up a sino-foreign equity joint venture,Shanghai LTI Automobile Components Company Limited (“Shanghai LTI”) in which the Group, the relatedparty and MBH own 51%, 1% and 48% respectively. MBH raised the funds required for satisfying its share ofthe capital contribution to Shanghai LTI by issuing 5,700,000 ordinary shares to the Group. As a result, theGroup be<strong>com</strong>es the holder of 22.83% of the equity shares of MBH and MBH be<strong>com</strong>es an associate of theGroup. Details of the incorporation of Shanghai LTI and the acquisition of interest in MBH are set out in theCompany’s circular dated 2 April <strong>2007</strong>.At 31 December <strong>2007</strong>, the Group had interest in the following associates:Attributableequity interestPlace of establis<strong>hm</strong>entsindirectly heldName of <strong>com</strong>pany and operations Paid-up capital by the Group Principal activities PRC USD231,008,000 46.8% Research, development,Zhejiang Geely Automobile Company Limited*production, marketing and salesof sedans and related automobile<strong>com</strong>ponents in the PRCGEELY AUTOMOBILE HOLDINGS LIMITED84ANNUAL REPORT 2 0 0 7