Annual Report - Li Ning

108
Li Ning Company Limited . Annual Report 2006
Notes to the Consolidated Financial Statements (Continued)
(All amounts in RMB unless otherwise stated)
29. Cash flow statement (Continued)
(b) Disposal of a subsidiary
On 1 March 2006, the Group disposed of Hangzhou Edosports Goods Sales Co., Ltd., a company incorporated in the PRC
and principally engaged in sale of sports goods, to two individuals unrelated to the Group, for a cash consideration of
RMB1,630,000.
Major assets and liabilities of Hangzhou Edosports Goods Sales Co., Ltd. as at 1 March 2006 are as follows:
Property, plant and equipment 505
Inventories 8,579
Accounts receivable 1,570
Other receivables and prepayments 1,973
Cash and cash equivalents 1,739
’000
14,366
Trade payables (16,263)
Other payable and accruals (1,443)
(17,706)
Net liabilities (3,340)
Consideration 1,630
Gain on disposal 4,970
Analysis of cash outflow from disposal:
Consideration in cash 1,630
Less: Cash and cash equivalents disposed (1,739)
Net cash outflow (109)
30. Commitments
(a) Capital commitments
Capital expenditure authorised but not contracted and contracted but not paid at the balance sheet date is as follows:
’000
2006 2005
’000 ’000
Property, plant and equipment
– authorised but not contracted 5,243 98,000
– contracted but not paid 102,601 –
Land use right
– contracted but not paid – 12,000
107,844 110,000