NOTES TO
FINANCIAL STATEMENTS
December 31, 2015
115
CITIC ENVIROTECH LTD.
Annual
Report
2015
22 FINANCE LEASES
Group
Company
Present value
Present value
Minimum
lease payments
of minimum
lease payments
Minimum
lease payments
of minimum
lease payments
December
31, 2015
$’000
March
31, 2015
$’000
December
31, 2015
$’000
March
31, 2015
$’000
December
31, 2015
$’000
March
31, 2015
$’000
December
31, 2015
$’000
March
31, 2015
$’000
Within one year
114
55
180
47
26
22
17
16
In the second to fifth
year inclusive
356
173
218
148
96
86
76
73
After the fifth year
21
32
38
32
7
23
7
23
Total
491
260
436
227
129
131
100
112
Less: Future finance
charges
(55)
(33)
NA
NA
(29)
(19)
NA
NA
Present value of lease
obligations
436
227
436
227
100
112
100
112
Less: Due within one
year
(180)
(47)
(17)
(16)
Due after one year
256
180
83
96
The average remaining lease terms for the Group and the Company are 3 to 5 years and 4 years
(March 31, 2015 : 3 to 5 years and 5 years) respectively. For the year ended December 31, 2015, the
average effective borrowing rates for both the Group and the Company were 4.3% to 5.2% (March
31, 2015 : 4.2% to 6.4%) per annum. Interest rates are fixed at the contract date, and thus expose
the Group and Company to fair value interest rate risk. All leases are on a fixed repayment basis and
no arrangements have been entered into for contingent rental payments.
The fair values of the Group’s and Company’s lease obligations approximate their carrying amounts.
23 CONVERTIBLE BONDS
On October 4, 2011, the Company issued $137,264,000 (equivalent to US$113,800,000), 2.5%
convertible bonds. The convertible bonds entitle the holders to convert them into ordinary shares
of the Company (unless previously redeemed, converted or purchased and cancelled) at any time on
or after October 4, 2011 up to the close of business on September 28, 2016 at a conversion price
(subject to adjustments) of $0.450 per share at a fixed exchange rate of $1.20619 per US$. Unless
previously redeemed, purchased or cancelled, the convertible bonds will be redeemed on October
3, 2016. Interest of 2.5% will be paid annually in arrears with the first interest payment date falling on
October 3, 2012.
Unless previously redeemed or converted and cancelled, the convertible bonds will be redeemed
at a redemption price equivalent to United States dollars (“USD”) principal amount plus accrued
interest at 100 per cent on the maturity. Meanwhile, the holders will have a right to require the
Company to redeem the bonds at a redemption price equivalent to USD principal amount together
with the interest accrued on that date following occurrence of relevant events (as defined in the
Offering Circular).
