Interim Results for the 6 months ended 31 Dec 09

RNS Number : 5141J

VinaLand Limited

31 March 2010

 

31 March 2010

 

VinaLand Limited

Interim results for the 6 months ended 31 December 2009

 

VinaLand Limited (the "Company" or "VNL"), an investment company established to target key growth segments within Vietnam's emerging real estate market, today announces its interim results for the six months ended 31 December 2009 ("the Period").

 

Financial highlights

·; Net profit of USD19.3 million (HY08: net loss of USD68.6 million)

·; Net profit per share of USD0.01 (HY08: net loss of USD0.08 per share)

·; Cash and cash equivalents as at 31 December 2009 of USD64.6 million

·; Net asset value at 31 December 2009 of USD694 million representing USD1.39 per share

 

Operational highlights

·; Sale of 52.5 percent equity stake in the Hilton Hanoi Opera Hotel, resulting in an IRR of 23 percent over the three years since the stake was acquired and an exit at 10 percent above the carrying value of the asset.

 

·; VinaCapital Commerical Centre Ltd signed a USD23.9 million loan agreement with the Bank for Investment and Development of Vietnam (BIDV) for the development of a luxury apartment tower, the first phase in the WTC Danang project. VNL holds a 38.25 percent equity stake in Phase 1 of the project, and 75 percent in Phase 2.

 

·; Continued progress with residential villa sales at The Ocean Villas, part of the Danang Beach Resort project. At the Period end, VNL had sold or booked reservations for 97 of the 115 villas.

 

Commenting, Don Lam, Director of VinaLand Limited:

"The demand for residential projects in Vietnam remains strong, as evidenced in the excellent results of our sales and reservations. We will continue to capitalise on this in the coming year by beginning construction on five new residential and retail projects, and through the launch of a retail sales brand, VinaLiving, which will be the first of its kind in Vietnam. We have only had limited exposure to the poorer performance of the hospitality and office sectors, but nonetheless we expect to see a gradual recovery in these areas in 2010 and the opening up of further opportunities."

 

 

Notes to Editors:

 

VinaCapital Group is a leading asset management, investment banking and real estate consulting firm with unrivalled experience in the Vietnamese market. VinaCapital Group was founded in 2003 and has grown from a single USD10 million fund to a diversified investment firm with over USD1.7 billion in assets under management as of December 2009.

 

VinaCapital Investment Management Ltd manages three closed-end funds trading on the AIM Market of the London Stock Exchange. These are:

·; Vietnam Opportunity Fund (VOF) is a USD785 million diversified investment fund that has consistently been among the top performing Vietnam funds.

·; VinaLand Limited (VNL) is a USD694 million real estate fund that was the top performing Vietnam investment fund in 2008.

·; Vietnam Infrastructure Limited (VNI) is a USD267 million fund established in July 2007 as the first overseas fund to invest solely in Vietnam's infrastructure sector.

 

VinaCapital also co-manages the USD32 million DFJ VinaCapital technology venture capital fund with Draper Fisher Jurvetson, and owns a dominant stake in VinaSecurities JSC, a brokerage. More information is available at www.vinacapital.com.

 

More information on Vietnam Infrastructure Limited is available at www.vinacapital.com/vni

 

Enquiries:

 

Michael L. Gray

VinaCapital Investment Management Limited

Communications

+84 8 821 9930

[email protected] 

 

Hiroshi Funaki +44 20 7845 5960

LCF Edmond de Rothschild Securities, Broker

[email protected]

 

Alastair Hetherington

Financial Dynamics, Public Relations (Hong Kong)

+852 3716 9802

[email protected]

 

Andrew Walton

Financial Dynamics, Public Relations (London)

+44 20 7269 7204

[email protected]

 

Philip Secrett

Grant Thornton Corporate Finance, Nominated Adviser

+44 20 7383 5100

[email protected]

 

Chairman's Statement

Dear Shareholders,

 

We are pleased to present the interim financial statements of VinaLand Limited (AIM: VNL) for the six month period ended 31 December 2009.

 

During 2009, Vietnam's real estate market saw falling rental rates and lower occupancy in the office and hospitality markets, while residential and retail shopping saw a stable, healthy performance. There is a clear reason for the divergent performance trends - the office and hospitality markets are influenced to a greater degree by the global economy, while housing and shopping trends depend more on the domestic economy.

 

Vietnam's comparatively strong 2009 economic performance, with GDP growth of 5.3 percent, was based largely on the strength of its domestic economy. The government's stimulus package was successful in increasingly liquidity in the banking sector, with the result of kick-starting a significant number of infrastructure and real estate projects that were slowed or halted in 2008.

 

VNL also benefited in this environment, receiving over USD100 million in project financing commitments from domestic banks.

 

VNL over the past six months saw its NAV increase slightly to USD1.33 per share at 31 December from USD1.32 per share at 30 June 2009. For the 2009 calendar year, however, VNL's NAV declined 11.3 percent, due primarily to unrealised write-downs reflecting the impact of the global economic crisis on Vietnam's real estate market.

 

Although we believe the write-downs were prudent, the recovery in the second half of the year of the domestic economy and the health of the real estate market indicate the cycle of downward revaluations may be at an end. Only the office sector will see a slow recovery going forward, and VNL has no active office projects to weigh down the fund's performance.

The past six months have seen great progress with residential sales and marketing at projects including The Ocean Villas, Cham Condominiums and The Azura apartment tower in Danang, and at the Golden Westlake apartments in Hanoi. Construction work began at the Dai Phuoc Lotus township and the resettlement portion of the Century 21 project.

 

In addition, VNL announced the sale of its stakes in the Hilton Hanoi Opera Hotel and the Oasis residential project in District 7, Ho Chi Minh City.

 

The focus for 2010 is on the execution of projects, both sales and marketing, and construction and development. The hospitality sector is recovering as travel numbers increase, and the demand for more residential and retail shopping facilities shows no signs of abating. Vietnam's residential market is in no immediate risk of a speculative property bubble, as residential buying is dominated by a rising number of middle class consumers looking for high-quality, affordable accommodation.

 

To address the residential market demand, VNL's investment manager will soon launch a retail sales brand, VinaLiving, as an integrated sales and marketing vehicle for all residential holdings. This unique brand will be the first of its kind in Vietnam. Furthermore, to better ensure project delivery, the investment manager has entered a joint venture with the region's leading project and construction management firm, inProjects. The new company, VinaProjects, will be the sole supplier of project delivery services for majority-owned VNL development projects.

 

We believe the combined impact of VinaLiving and VinaProjects will ensure VNL remains at the forefront of the real estate investment market in Vietnam, with substantial long-term benefits for our shareholders. As always, we will keep you closely informed of our progress.

 

Thank you for your continued support.

 

 

Nicholas Brooke

Chairman

VinaLand Limited

31 March 2010

 

 

 

Consolidated Financial Statements

Condensed Consolidated Interim Statement of Financial Position

 

	Note	31 December 2009	30 June 2009
		USD'000	USD'000
ASSETS
Non-current
Investment properties	7	649,316	489,068
Property, plant and equipment		82,767	72,161
Intangible assets		13,200	12,091
Investments in associates	8	74,768	104,764
Goodwill	6	3,923	-
Prepayments for operating lease assets		11,572	17,334
Prepayments for acquisitions of investments	9	57,035	66,097
Deferred tax assets		186	286
Other long-term financial assets		2,134	1,112
Non-current assets		894,901	762,913
Current
Inventories		456	146
Trade and other receivables	10	112,366	109,901
Receivables from related parties		5,691	2,572
Short-term investments	11	29,139	34,888
Financial assets at fair value through statement of income	12	33,589	46,298
Cash and cash equivalents		64,594	50,274
Current assets		245,835	244,079
Assets classified as held for sale		-	85,321
Total assets		1,140,736	1,092,313

 

 

	Note	31 December 2009	30 June 2009
		USD'000	USD'000
EQUITY AND LIABILITIES
EQUITY
Equity attributable to shareholders of the parent
Share capital	13	4,999	4,999
Additional paid-in capital	14	588,870	588,870
Revaluation reserve	15	3,919	10,799
Translation reserve		(21,115)	(16,147)
Retained earnings		89,978	72,008
		666,651	660,529
Non-controlling interests		218,947	166,445
Total equity		885,598	826,974
LIABILITIES
Non-current
Borrowings and debts	16	60,307	21,841
Long-term payables to related parties		77,476	65,018
Deferred tax liabilities	17	18,264	14,629
Other liabilities		1,275	912
Non-current liabilities		157,322	102,400
Current
Borrowings and debts	16	12,382	20,584
Trade and other payables		59,755	74,354
Payables to related parties		25,679	49,943
Current liabilities		97,816	144,881
Liabilities included in disposal group held for sale		-	18,058
Total liabilities		255,138	265,339
Total equity and liabilities		1,140,736	1,092,313
Net assets per share attributable to equity shareholders of the parent (USD per share)	23	1.33	1.32

 

Condensed Consolidated Interim Statement of Changes in Equity

		Equity attributable to shareholders of the parent										Non-controlling interests		Total equity
		Share capital		Additional paid-in capital		Revaluation reserve		Translation reserve		Retained earnings
		USD'000		USD'000		USD'000		USD'000		USD'000		USD'000		USD'000
Balance at 1 July 2008		4,999		588,870		13,844		(4,623)		201,437		219,868		1,024,395
Capital contributions in subsidiaries		-		-		-		-		-		22,736		22,736
Acquisition of subsidiaries		-		-		-		-		-		12,552		12,552
Comprehensive income
Losses for the period from 1 July 2008 to 31 December 2008		-		-		-		-		(41,377)		(27,242)		(68,619)
Exchange differences on translation of foreign operations		-		-		-		(7,608)		-		(4,021)		(11,629)
Reversal of gains on the revaluation of lands and buildings		-		-		(5,124)		-		-		(4,092)		(9,216)
Total comprehensive income		-		-		(5,124)		(7,608)		(41,377)		(35,355)		(89,464)
Balance at 31 December 2008		4,999		588,870		8,720		(12,231)		160,060		219,801		970,219
Balance at 1 July 2009		4,999		588,870		10,799		(16,147)		72,008		166,445		826,974
Dividend distributions		-		-		-		-		-		(587)		(587)
Capital contribution in subsidiaries		-		-		-		-		-		19,290		19,290
Acquisition of subsidiaries		-		-		-		-		-		44,119		44,119
Gain on part disposal of non-controlling interest in subsidiary (Note 28)		-		-		-		-		4,917		-		4,917
Equity interest acquired by non-controlling interests		-		-		-		-		(1,638)		1,638		-
Disposal of assets and liabilities held for sale		-		-		-		-		-		(20,104)		(20,104)
Disposal of subsidiary (Note 15)		-		-		(7,756)		-		7,756		-		-
Comprehensive income
Profit for the period from 1 July 2009 to 31 December 2009		-		-		-		-		6,935		12,317		19,252
Exchange differences on translation of foreign operations		-		-		-		(4,968)		-		(4,453)		(9,421)
Gains on revaluation of land and buildings (Note 15)		-		-		876		-		-		282		1,158
Total comprehensive income		-		-		876		(4,968)		6,935		8,146		10,989
Balance at 31 December 2009		4,999		588,870		3,919		(21,115)		89,978		218,947		885,598

 

 

Condensed Consolidated Interim Statement of Income

 

	Note	Six month period ended
		31 December 2009	31 December 2008
		USD'000	USD'000
			(Reclassified)
Revenue		9,507	18,080
Cost of sales	18	(4,928)	(9,320)
Gross profit		4,579	8,760
Operating, selling and administration expenses	18	(21,466)	(17,405)
Net gain/(loss) on fair value adjustments of investment properties	19	40,686	(44,637)
Net changes in fair value of financial assets at fair value through statement of income		1,031	2,838
Other income	20	14,102	748
Other expenses	21	(8,534)	(17,623)
Profit/(loss) from continuing operations		30,398	(67,319)
Finance income		2,945	5,168
Finance costs		(1,849)	(873)
Finance income - net		1,096	4,295
Share of losses of associates		(7,729)	(9,449)
		(6,633)	(5,154)
Profit/(loss) before income tax from continuing and total operations		23,765	(72,473)
Deferred income tax (expense)/income	22	(3,655)	4,465
Income tax expense	22	(858)	(611)
Net profit/(loss) for the period from continuing and total operations		19,252	(68,619)
Attributable to equity shareholders of the parent		6,935	(41,377)
Attributable to non-controlling interests		12,317	(27,242)
		19,252	(68,619)
Earnings/(loss) per share (continuing and total operations) - basic and diluted (USD per share)	23	0.01	(0.08)

 

Condensed Consolidated Interim Statement of Comprehensive Income

 

	Note	Six month period ended
		31 December 2009	31 December 2008
		USD'000	USD'000
Profit/(loss) for the period		19,252	(68,619)
Comprehensive income
Gain/(loss) on revaluation of land and buildings in the period	15	1,158	(9,216)
Exchange differences on translating foreign operations		(9,421)	(11,629)
Comprehensive income for the period		(8,263)	(20,845)
Total comprehensive income for the period		10,989	(89,464)
Attributable to equity shareholders of the parent		2,843	(54,109)
Attributable to non-controlling interests		8,146	(35,355)
		10,989	(89,464)

 

Condensed Consolidated Interim Statement of Cash Flows

  

	Six month period ended
	31 December 2009	31 December 2008
	USD'000	USD'000
		(Reclassified)
Operating activities
Net profit/(loss) before tax	23,765	(72,473)
Adjustment for:
Depreciation and amortisation	2,589	4,074
(Gain)/loss on revaluation of investment properties	(40,686)	44,637
Net changes in fair value of financial assets at fair value through statement of income	(1,031)	(2,838)
Gains on acquisition of subsidiaries	(4,986)	(369)
Impairment of assets	6,933	17,217
Write-off of assets	1,386	399
Gain on disposal of investment rights	(7,592)	-
Share of associate's losses	7,729	9,449
Unrealised loss/(gain) on foreign exchange differences	544	(84)
Interest expense	1,225	655
Interest income	(2,800)	(4,965)
Net losses before changes in working capital	(12,924)	(4,298)
Change in trade and other receivables	4,146	22,272
Change in inventory	(310)	(3)
Change in trade and other payables	(16,525)	27,486
Corporate income tax paid	(1,174)	(624)
	(26,787)	44,833
Investing activities
Interest and dividends received	3,324	3,353
Purchases of investment properties, tangible and intangible fixed assets	(32,413)	(45,684)
Acquisitions of subsidiaries, net of cash	(12,624)	(7,121)
Prepayments for acquisitions of investments	(7,017)	(5,900)
Proceeds from disposal of held for sale assets/liabilities and financial assets	36,349	3,287
Investments in associates	(4,850)	(44,478)
Acquisitions of long-term assets	(3,052)	(2,804)
Net proceeds from related party shareholder loans	22,650	15,450
	2,367	(83,897)

 

 

	Six month period ended
	31 December 2009	31 December 2008
	USD'000	USD'000
Financing activities
Additional capital contributions from non-controlling interests shareholders	8,290	-
Loan proceeds from banks	46,866	6,050
Loan repayments to banks	(15,841)	(4,617)
Dividends paid to non-controlling interest shareholders	(587)	-
Loan proceeds from non-controlling interest shareholders	12	-
Interest paid	-	(1,650)
	38,740	(217)
Net changes in cash and cash equivalents for the period	14,320	(39,281)
Cash and cash equivalents at the beginning of the period	50,274	80,806
Cash and cash equivalents at the end of the period	64,594	41,525

 

 

 

 

Notes to the Condensed Consolidated Interim Financial Statements

 

1. General information

 

VinaLand Limited ("the Company") is a limited liability company incorporated in the Cayman Islands. The registered office of the Company is PO Box 309GT, Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands. The Company's primary objective is to focus on key growth segments within Vietnam's emerging real estate market, namely residential, office, retail, industrial and leisure projects in Vietnam and the surrounding countries in Asia. The Company is listed on the AIM Market of the London Stock Exchange under the ticker symbol VNL.

 

The condensed interim consolidated financial statements for the period from 1 July 2009 to 31 December 2009 were approved for issue by the Board of Directors on 31 March 2010.

 

2. Basis of preparation

 

These condensed interim consolidated financial statements for the period from 1 July 2009 to 31 December 2009 (the "period") have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting" as issued by the International Accounting Standards Board (IASB). They do not include all of the information required in annual financial statements in accordance with International Financial Reporting Standards (IFRS). Accordingly, these reports are to be read in conjunction with the annual consolidated financial statements of the Group for the year ended 30 June 2009.

 

The condensed interim consolidated financial statements are presented in United States Dollars (USD), and all values are rounded to the nearest thousand ('000) unless otherwise indicated.

 

3. Significant accounting policies

 

These condensed consolidated interim financial statements have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year ended 30 June 2009, except for the adoption of:

 

·; IAS 1 Presentation of Financial Statements (Revised 2007)

·; IFRS 8 Operating Segments

·; IFRS 3 Business Combinations (Revised 2008)

·; IAS 27 Consolidated and Separate Financial Statements (Revised 2008)

·; Amendment to IFRS 7 Financial Instruments: Disclosures: Improving disclosures about financial instruments

 

The adoption of IAS 1 (Revised 2007) makes certain changes to the format and titles of the primary financial statements and to the presentation of some items within these statements. It also gives rise to additional disclosures. The measurement and recognition of the Group's assets, liabilities, income and expenses is unchanged. However, some items that were recognised directly in equity are now recognised in the Statement of other comprehensive income, for example revaluations of property, plant and equipment and exchange differences on translation of foreign operations. IAS 1 affects the presentation of changes in owners' equity and introduces a "Statement of Comprehensive Income". As the changes in the requirements of IAS 1 only impact presentation aspects, there is no impact on the historic, current or future earnings per share ratio.

 

IAS 1 (Revised 2007) requires an entity to present the statement of financial position for two comparative periods in the following situations: where the Group (i) applies an accounting policy retrospectively, (ii) makes a retrospective restatement of items in its financial statements, or (iii) reclassifies items in the financial statements. There have been no such circumstances during the period therefore the Group presents only one comparative period (30 June 2009) in the condensed interim consolidated statement of financial position.

 

The adoption of IFRS 8 has not affected the identified operating segments for the Group. However, reported segment results are now based on internal management reporting information that is regularly reviewed by the Investment Manager. In the previous annual and interim financial statements, segments were identified by reference to the way the Investment Manager manages and monitors the risks and returns of the Group. As the change in accounting policy only results in additional disclosures, there is no impact on the historic, current or future earnings per share ratio.

 

The adoption of IFRS 3 Business Combinations (Revised 2008) continues to apply the acquisition method to business combinations, with some significant changes. For example, all acquisition related costs are expensed in the period in which the costs are incurred rather than included in the costs of investment. There is a choice on an acquisition by acquisition basis to measure the non-controlling interest in the acquiree at fair value or at the non-controlling interest's proportionate share of the acquiree's net assets. The Group have applied IFRS 3 (Revised 2008) prospectively to all business combinations from 1 July 2009.

 

The adoption of IAS27 (Revised 2008) introduces the changes in accounting for additional acquisitions of interests in subsidiaries and for the loss of control of a subsidiary. Where the Group increases or decreases its interest in subsidiaries but there is no change in control, the effects of all transactions between the Group with non-controlling interests no longer result in goodwill or any gains or losses in the statement of income, but are recorded in equity. When control is lost, any remaining interest in the entity is re-measured to fair value, and a gain or loss is recognised in the statement of income. The revaluation surpluses of disposed subsidiaries previously recognised in equity are transferred directly to retained earnings when control is lost. The Group applied IAS 27 (Revised 2008) prospectively to transactions with non-controlling interests and disposals of subsidiaries from 1 July 2009.

 

The adoption of IFRS 7 (Revised 2007) requires enhanced disclosures about fair value measurement and liquidity risk. In particular, the amendment requires disclosure of fair value measurements by level of a fair value measurement hierarchy to be disclosed in the annual consolidated financial statements. As the amendment to the accounting policy only results in additional disclosures, there is no impact on the historic, current or future earnings per share ratio.

 

The accounting policies have been applied consistently throughout the Group for the purposes of the preparation of these condensed interim consolidated financial statements.

 

4. Critical accounting estimates and judgements

 

The condensed interim consolidated financial statements undertake a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses. The actual results may differ from the judgements, estimates and assumptions made by management, and may not equal the estimated results. Information about significant judgements, estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses are discussed below:

 

Fair value of investment properties, land and buildings

The investment properties, leasehold land and buildings held by subsidiaries and associates of the Group are stated at fair value in accordance with accounting policy 3.10 of the annual consolidated financial statements. The fair values of investment properties, leasehold land and buildings have been determined by independent professional valuers including: CB Richard Ellis, Savills, Jones Lang LaSalle, Colliers, Sallmanns and HVS. These valuations are based on certain assumptions, which are subject to uncertainty and might materially differ from the actual results. Valuations are reviewed by the Valuation Committee and approved by the Board of Directors. Discount rates from 13% to 16% are considered appropriate for revalued properties during the review period in different locations. Where the Valuation Committee considers the discount rate applied by the independent valuers to be too low or if there are factors that the external independent valuers have not considered in their determination of a property's fair value, they will adjust the discount rate and other assumptions in the discounted cash flow projections, whereby changing the property's valuation. In making its judgement, the Valuation Committee considers information from a variety of sources, including:

 

(i) current prices in an active market for properties of different nature, condition or location (or subject to different lease or other contracts), adjusted to reflect those differences;

(ii) recent prices of similar properties in less active markets, with adjustments to reflect any changes in economic conditions since the date of the transactions that occurred at those prices;

(iii) recent developments and changes in laws and regulations that might affect zoning and/or the Group's ability to exercise its rights in respect to properties and therefore fully realise the estimated values of such properties; and

(iv) discounted cash flow projections based on reliable estimates of future cash flows, derived from the terms of external evidence such as current market rents and sales prices for similar properties in the same location and condition, and using discount rates that reflect current market assessments of the uncertainty in the amount and timing of the cash flows.

 

Impairment

Investment properties, leasehold land and buildings

Whenever there is an indication of impairment of an investment property, leasehold land and buildings the Valuation Committee and management will assess the need for an impairment adjustment. The estimation of impairment adjustments is based on the same principles used to adjust the periodic independent valuations mentioned above.

 

In the process of reviewing for impairment, the Group's management makes assumptions about future cash flows and discount rates associated with market risk and asset specific risk factors. The impairment assessment is an estimate and consequently the actual results achieved if the assets were disposed at the reporting date may differ to the current carrying value recorded by the Group.

 

Other assets

The Group's trade and other receivables, goodwill, intangible assets, prepayments for operating lease assets, prepayments for acquisitions of investments, short-term investments and investments in associates are subject to impairment testing in accordance with the accounting policy 3.15 of the annual consolidated financial statements.

 

Business combinations

On initial recognition, the assets and liabilities of the acquired business are included in the consolidated statement of financial position at their fair values. In measuring fair value management uses estimates about future cash flows and discount rates or independent valuation for investment properties, land and buildings.

 

Useful lives of depreciable assets

Management reviews useful lives of depreciable assets at each reporting date. At 31 December 2009, management assesses that the useful lives represent the expected utility of the assets to the Group.

 

5. Segment analysis

 

In identifying its operating segments, management generally follows the Group's investment and geographical segments. The investment segments are based on the Investment Manager's management and monitoring of investments, and include real estate sectors of commercial, residential, hospitality, and mixed use. The Group's geographical segments include North, Central, and South Vietnam, and the regions outside Vietnam.

 

These operating segments are managed and monitored individually by the Investment Manager. The adoption of IFRS 8 has not affected the identified operating segments for the Group compared to the recent annual consolidated financial statements but affects the presentation of the operating segments presented in the following tables. Under IFRS 8, reported segments are based on internal management reporting information that is regularly reviewed by the Investment Manager, and is reconciled to Group profit or loss on the following pages. The Investment Manager assesses segment profit or loss using a measure of operating profit or loss from the investment assets. Although IFRS 8 requires measurement of segmental profit or loss, however the majority of expenses are common to all segments therefore cannot be individually allocated. The measurement policies the Group uses for segment reporting under IFRS 8 are the same as those used in its condensed interim consolidated financial statements.

 

	Six month period ended 31 December 2009
	Commercial	Residential	Hospitality	Mixed used	Total
	USD'000	USD'000	USD'000	USD'000	USD'000
Geographical segment financial information
North
Revenue	-	-	3,559	-	3,559
Other income	-	-	423	-	423
Finance income	-	-	455	-	455
Net gain/(loss) on fair value adjustments of investment properties	-	-	82	15,845	15,927
Net changes in fair value of financial assets at fair value through statement of income	-	1,031	-	-	1,031
	-	1,031	4,519	15,845	21,395
South
Revenue	-	937	5,011	-	5,948
Other income	-	7,592	1,012	5,070	13,674
Finance income	195	672	394	799	2,060
Net gain/(loss) on fair value adjustments of investment properties	(1,268)	6,495	147	21,812	27,186
Share of losses of associates	(127)	(7,573)	-	(25)	(7,725)
	(1,200)	8,123	6,564	27,656	41,143
Central
Other income	-	-	5	-	5
Finance income	-	12	105	313	430
Net gain/(loss) on fair value adjustments of investment properties	-	(3,124)	(497)	1,194	(2,427)
Share of losses of associates	-	-	(4)	-	(4)
	-	(3,112)	(391)	1,507	(1,996)
Total	(1,200)	6,042	10,692	45,008	60,542
Cost of sales					(4,928)
Operating, selling and administration expenses					(21,466)
Other expenses					(8,534)
Finance costs					(1,849)
Profit/(loss) before tax					23,765
Deferred income tax (expense)/income					(3,655)
Income tax expenses					(858)
Net profit/(loss) for the period					19,252

 

For the comparative period:

	Six month period ended 31 December 2008
	Commercial	Residential	Hospitality	Mixed used	Total
	USD'000	USD'000	USD'000	USD'000	USD'000
Geographical segment financial information
North
Revenue	-	-	8,439	-	8,439
Other income	-	28	228	-	256
Finance income	-	-	153	100	253
	-	28	8,820	100	8,948
South
Revenue		3,631	6,010	-	9,641
Other income	-	-	-	84	84
Finance income	177	1,746	195	2,181	4,299
Net gain/(loss) on fair value adjustments of investment properties	-	(16,790)	(654)	-	(17,444)
Net changes in fair value of financial assets at fair value through statement of income	-	(185)	-	3,023	2,838
Share of losses of associates	(1)	(12,782)	-	5,132	(7,651)
	176	(24,380)	5,551	10,420	(8,233)
Central
Other income	-	-	372	36	408
Finance income	-	21	107	488	616
Net gain/(loss) on fair value adjustments of investment properties	-	-	-	(27,193)	(27,193)
Share of losses of associates			(1,798)	-	(1,798)
	-	21	(1,319)	(26,669)	(27,967)
Total	176	(24,331)	13,052	(16,149)	(27,252)
Cost of sales					(9,320)
Operating, selling and administration expenses					(17,405)
Other expenses					(17,623)
Finance costs					(873)
Profit/(loss) before tax					(72,473)
Deferred income tax (expense)/income					4,465
Income tax expenses					(611)
Net profit/(loss) for the period					(68,619)

 

 

 

	As at 31 December 2009
	Commercial	Residential	Hospitality	Mixed use	Cash and short-term investments	Total
	USD'000	USD'000	USD'000	USD'000	USD'000	USD'000
Geographical segment assets information
North
Investment properties	-	23,406	6,072	47,807	-	77,285
Property, plant and equipment	-	19	20,368	-	-	20,387
Goodwill and intangible assets	-	-	4,757	-	-	4,757
Cash and cash equivalents	-	-	-	-	4,038	4,038
Trade and other receivables	-	1,667	13,406	236	-	15,309
Prepayments for acquisitions of investments	-	-	1,315	-	-	1,315
Financial assets at fair value through statement of income	-	26,001	-	-	-	26,001
Other assets	-	15	3,302	2,089	-	5,406
	-	51,108	49,220	50,132	4,038	154,498
South
Investment properties	7,599	134,227	7,470	215,005	-	364,301
Property, plant and equipment	30	1	32,002	101	-	32,134
Goodwill and intangible assets	1	3,926	8,350	-	-	12,277
Cash and cash equivalents	-	-	-	-	40,163	40,163
Trade and other receivables	593	19,335	8,181	35,801	-	63,910
Investment in associates	17,331	1,293	-	49,873	-	68,497
Prepayments for acquisitions of investments	2,148	43,860	1,087	1,098	-	48,193
Financial assets at fair value through statement of income	-	2,557	5,031	-	-	7,588
Short-term investments	-	-	-	-	21,590	21,590
Other assets	33	94	332	5,703	-	6,162
	27,735	205,293	62,453	307,581	61,753	664,815
Central
Investment properties	-	57,086	63,406	87,238	-	207,730
Property, plant and equipment	-	47	30,125	74	-	30,246
Goodwill and intangible assets	-	-	83	6	-	89
Cash and cash equivalents	-	-	-	-	18,860	18,860
Trade and other receivables	-	29,437	2,587	1,123	-	33,147
Investment in associates	-	-	6,271	-	-	6,271
Prepayments for acquisitions of investments	-	2,800	3,809	918	-	7,527
Short-term investments	-	-	-	-	7,549	7,549
Other assets	-	35	7,752	684	-	8,471
	-	89,405	114,033	90,043	26,409	319,890
Outside Vietnam	-	-	-	-	1,533	1,533
Total assets	27,735	345,806	225,706	447,756	93,733	1,140,736

 

For the comparative year end:

	As at 30 June 2009
	Commercial	Residential	Hospitality	Mixed use	Cash and short-term investments	Total
	USD'000	USD'000	USD'000	USD'000	USD'000	USD'000
Geographical segment assets information
North
Investment properties	-	23,052	5,970	32,080	-	61,102
Property, plant and equipment	-	23	24,521	1	-	24,545
Goodwill and intangible assets	-	-	4,512	-	-	4,512
Cash and cash equivalents	-	-	-	-	2,825	2,825
Trade and other receivables	-	32	13,102	253	-	13,387
Prepayments for acquisitions of investments	-	-	1,143	-	-	1,143
Financial assets at fair value through statement of income	-	27,965	-	-		27,965
Other assets	-	23	89,899	2,687	-	92,609
	-	51,095	139,147	35,021	2,825	228,088
South
Investment properties	12,136	85,681	1,975	119,988	-	219,780
Property, plant and equipment	35	2	32,424	107	-	32,568
Goodwill and intangible assets	-	4	7,564	-	-	7,568
Cash and cash equivalents	-	-	-	-	22,456	22,456
Trade and other receivables	504	32,223	5,549	20,006	-	58,282
Investment in associates	17,458	1,050	-	79,930	-	98,438
Prepayments for acquisitions of investments	20	54,355	1,303	6,280	-	61,958
Financial assets at fair value through statement of income	-	13,301	5,032	-	-	18,333
Short-term investments	-	-	-	-	19,723	19,723
Other assets	35	132	6,531	1,882	-	8,580
	30,188	186,748	60,378	228,193	42,179	547,686
Central
Investment properties	-	61,333	62,222	84,631	-	208,186
Property, plant and equipment	-	53	14,927	68	-	15,048
Goodwill and intangible assets	-	-	5	6	-	11
Cash and cash equivalents	-	-	-	-	7,596	7,596
Trade and other receivables	-	31,311	5,760	1,161	-	38,232
Investment in associates	-	-	6,326	-	-	6,326
Prepayments for acquisitions of investments	-	-	2,240	756	-	2,996
Short-term investments	-	-	-	-	15,165	15,165
Other assets	-	37	5,545	-	-	5,582
	-	92,734	97,025	86,622	22,761	299,142
Outside Vietnam	-	-	-	-	17,397	17,397
Total assets	30,188	330,577	296,550	349,836	85,162	1,092,313

 

To determine the geographical segments for investments and cash the following rules have been applied:

·; Real estate − location of property; and

·; Cash and short-term investments − place of deposit.

 

6. Acquisition of subsidiaries

 

Additional acquisition of Vina Alliance Company Limited (Vinataba Project)

At 30 June 2009, the Group held 49% equity interest of Vina Alliance Company Limited. In October 2009, the Group acquired a further 13% equity interest for consideration of USD7.2 million which was settled in cash and brings the Group's total interest in the project to 62% at the reporting date. The Group's share of the fair value of the assets acquired was USD12.2 million resulting in negative goodwill of USD5.0 million which has been recognised in the Statement of Income (Note 20).

 

Acquisition of Phu Hoi City Company Limited (Licogi 16 Project)

The Group previously made a deposit of USD 9 million in respect of this project which was classified as a Prepayment for acquisition of investments at 30 June 2009. In addition to the 22.5% interest in the project held by the Group through the investment licence, in September 2009 the Group acquired a further 30% interest from a local partner. The amount of USD5.1 million was reclassified from Prepayment for acquisition of investments to represent part of the consideration of USD16 million. Of the remaining consideration of USD10.9 million, USD 5.45 million was settled in cash during the period and USD5.45 will be settled in February and March 2010 which has been accrued at the reporting date and is included in Trade and other payables in the Statement of Financial Position. The Group's share of the fair value of the assets acquired was USD12.1 million resulting in goodwill of USD3.9 million which has been recognised in Statement of Financial Position. The investment licence and the approval of 1/500 by the local authorities are the two key factors which results in the goodwill recognition and cannot be measured separately from the land. As a result, the Group's total interest in the project is 52.5% at the reporting date.

 

7. Investment properties

 

	31 December 2009	30 June 2009
	USD'000	USD'000
Opening balance (1 July 2009/1 July 2008)	489,068	579,356
Acquisitions of subsidiaries	108,207	41,074
Additions during the period/year	15,589	31,166
Net gain/(loss) from fair value adjustments of investment properties (Note 19)	40,686	(153,544)
Net loss from liquidation of investment property	-	(1,618)
Transferred from prepayments for operating lease assets	5,475	2,589
Investment property disposed in the year	-	(2,714)
Translation differences	(9,709)	(7,241)
Closing balance	649,316	489,068

 

The leasehold land held by Vinh Thai Urban Development Corporation, a subsidiary of the Group, with a carrying value of USD57.1 million as at 31 December 2009 is pledged as security for bank borrowing at the reporting date. Under the contractual arrangements agreed between the parties and a decision issued by the People's Committee of Khanh Hoa Province, the land held by Vinh Thai Urban Development Corporation in Nha Trang City, referred to as Vinh Thai Urban Residential project, will receive the land use right from a local partner once the issuance of the land use right is approved by the Prime Minister of Vietnam.

 

8. Investments in associates

 

	31 December 2009	30 June 2009
	USD'000	USD'000
Opening balance (1 July 2009/1 July 2008)	104,764	26,270
Additions during the year (*)	4,919	61,962
Reduction due to change from investment in associate to subsidiary (**)	(27,134)	-
Transferred from prepayments for acquisition of investments	-	19,874
Dividend received	(52)	-
Share of losses of associates	(7,729)	(3,342)
Closing balance	74,768	104,764

 

(*)  The Group invested USD4.65 million in AquaCity Joint Stock Company and USD0.27 million in Long An SEA Industrial Park Development Co. Ltd. during the period.

 

(**) The amount represents the carrying value of the investment in the equity interest of 49% in Vina Alliance Company Limited.

 

Particulars of operating associates and their summarised financial information, extracted from their financial statements as at 31 December 2009 are as follows:

 

	Incorpor-ation	Equity interest held	Principle activity	Assets	Liabilities	Revenue	Profit/ (loss)	Share of (loss)/ profit to the Group
			%		USD'000	USD'000	USD'000	USD'000
Long An S.E.A Industrial Park Development Co. Ltd.	Vietnam	20.0	Property development	5,602	1,191	-	(124)	(25)
Aqua City Joint Stock Company	Vietnam	50.0	Property development	16,201	21	80	(15,170)	(*)(7,585)
Thang Loi Land Joint Stock Company	Vietnam	49.0	Property development	11,862	36	78	25	12
Romana Resort and Spa	Vietnam	50.0	Hospitality	5,139	2,476	706	(8)	(4)
Savico-Vinaland Co. Ltd.	Vietnam	49.5	Property development	18,433	281	58	(257)	(127)
				57,237	4,005	922	(15,534)	(7,729)

 

(*) The amount includes an impairment of the leasehold land of USD7.57 million.

 

9. Prepayments for acquisitions of investments

 

	31 December 2009	30 June 2009
	USD'000	USD'000
Prepayments for acquisitions of investments	62,195	71,257
Allowance for loss on prepayments for acquisitions of investments	(5,160)	(5,160)
	57,035	66,097

 

These prepayments are payments made by the Group to property vendors where the final transfer of the property is pending the approval of the relevant authorities and/or is subject to either the Group or the vendor completing certain performance conditions set out in agreements.

 

10. Trade and other receivables

 

	31 December 2009	30 June 2008
	USD'000	USD'000
Trade receivables	2,148	294
Loans to third parties	31,973	42,922
Advances to property vendors and contractors	15,261	20,644
Receivable as compensation for property exchanged	11,692	10,723
Receivables from minority shareholders	16,164	16,366
Receivable from disposal of investment rights (Note 20)	18,083	-
Interest receivables (*)	6,663	7,132
Other receivables	11,844	13,318
Other current assets	95	56
	113,923	111,455
Receivables allowance	(1,557)	(1,544)
	112,366	109,901

 

(*) The amount includes the interest receivables from bank secured deposit as mentioned in Note 11 of USD6.1 million at the reporting date.

 

All other trade and other receivables are short-term in nature and their carrying value is considered a reasonable approximation of their fair value at reporting date.

 

 

11. Short-term investments

 

	31 December 2009	30 June 2009
	USD'000	USD'000
Short-term deposits	16,584	21,865
Bank secured deposit (*)	12,555	13,023
	29,139	34,888

 

As short-term deposits have terms to maturity between three months and one year, their carrying value is considered a reasonable approximation of their fair value as at reporting date.

 

(*) On 8 December 2007, the Group deposited VND560.8 billion (equivalent to USD35 million) with a local bank. Under the terms of the original agreement, the deposit would earn interest at 13% and was repayable within one year. Under the terms of the agreement, the deposit could be withdrawn by Thai Thinh Capital Joint Stock Company (TTC), provided that it was fully replenished before the due date. The bank guaranteed to ensure the full repayment of the deposit and associated accrued interest thereon to the Group upon expiry of the deposit term.

 

On expiry of the deposit term, TTC was unable to replenish the deposit account and associated accrued interest. Since that date VND328.9 billion (equivalent to USD19 million) has been repaid to the Group under this arrangement and the parties have held formal negotiations to enable the full recovery of the remaining outstanding balance. Any such arrangement may result in the Group accepting alternative assets with a fair value at least equal to the carrying value of the outstanding deposit and associated accrued interest. A repayment plan to facilitate the recovery of the outstanding amounts has been signed, which provides for certain assets of TTC to be held for the benefit of the Group. When these assets of TTC are realised in the future, the proceeds will be remitted to the deposit account for withdrawal by the Group. However the terms and obligations of each party under the original agreement will continue to prevail, including the bank guarantee.

 

12. Financial assets at fair value through statement of income

 

	31 December 2009	30 June 2009
	USD'000	USD'000
Designated at fair value through statement of income:
Financial assets in Vietnam
Trustee loans	28,557	41,266
Ordinary shares - unlisted	5,032	5,032
Total financial assets designated at fair value through statement of income	33,589	46,298

 

The carrying amounts disclosed above are the Group's maximum possible credit risk exposure in relation to these instruments. See Note 44 of the annual consolidated financial statements for further information on the Group's exposure to credit risk.

 

13. Share capital

 

	31 December 2009		30 June 2009
	Number of shares	USD'000	Number of shares	USD'000
Authorised: Ordinary shares of USD0.01 each	500,000,000	5,000,000	500,000,000	5,000,000
Issued and fully paid:
Opening balance	499,967,622	4,999	499,967,622	4,999
Closing balance	499,967,622	4,999	499,967,622	4,999

 

 

14. Additional paid-in capital

 

Additional paid-in capital represents the excess of consideration received over the par value of shares issued.

	31 December 2009	30 June 2009
	USD'000	USD'000
Opening balance (1 July 2009/1 July 2008)	588,870	588,870
Closing balance	588,870	588,870

 

15. Revaluation reserve

 

	31 December 2009	30 June 2009
	USD'000	USD'000
Opening balance (1 July 2009/1 July 2008)	10,799	13,844
Unrealised gain/(loss) of revaluations of leasehold land and buildings	1,158	(5,589)
Less: Share of unrealised gain/(loss) attributable to non-controlling interests	(282)	2,544
Disposal of subsidiary (*)	(7,756)	-
Closing balance	3,919	10,799

 

The Group's share of valuation gains/(losses) resulting from the revaluation of subsidiaries' hospitality properties has been recorded directly in the Group's revaluation reserve under shareholders' equity.

 

(*) The amount represents the transfer of the revaluation reverse surplus arising on Opera Hotel Ltd. (Hilton project) to retained earnings when control of the subsidiary transferred to the buyer in the period.

 

16. Borrowings and debts

 

	31 December 2009	30 June 2009
	USD'000	USD'000
Non-current financial liabilities carrying at amortised cost at the reporting date:
Bank borrowings (*)	67,125	40,944
Debts borrowed from non-controlling interest shareholders	1,493	1,481
-	68,618	42,425
Less:
Current portion of long-term borrowings and debts	(8,311)	(20,584)
	60,307	21,841
Current
Bank borrowings (*)	4,071	-
Current portion of long-term borrowings	8,311	20,584
	12,382	20,584
Total borrowings and debts	72,689	42,425

 

(*) Details of the bank borrowings at the reporting date are as follows:

 

 

Lenders	USD'000	Loan period	Repayment term	Interest
Non-current
Seabank - Ho Chi Minh City branch, Vietnam (Movepick Hotel Hanoi project and Mecure La Gare project)	27,593	Six years	Monthly	12-month lender saving rate plus a 2.5% margin
Eximbank - Ho Chi Minh City branch, Vietnam (Sheraton Nha Trang Hotel project)	30,257	Fifteen years	Quarterly	12-month lender saving rate plus a 4% margin for VND and 2% margin for USD
Dong A bank - Ho Chi Minh City branch, Vietnam (Vinh Thai Urban project)	9,275	Three years	Quarterly from March 2010	15% for 2009 and base rate of State Bank of Vietnam for subsequent years
	67,125
Current
SHB bank - Da Nang branch, Vietnam (Danang Golf Course project)	4,016	One year	20 October 2010	0.875%/month
Eximbank - Nha Trang branch, Vietnam (Vinh Thai Urban Residential project)	55	One year	22 January 2010	1%/month
	4,071
Total bank borrowings	71,196

 

For all borrowings, the lenders have security over the assets of the subsidiaries.

 

17. Deferred tax liabilities

 

	31 December 2009	30 June 2009
	USD'000	USD'000
Opening balance (1 July 2009/1 July 2008)	14,629	29,959
Increase/(utilised) during the period/year, net	3,635	(15,330)
Closing balance	18,264	14,629

 

On recognition of investment properties, leasehold land and buildings at their fair value, the eventual recovery of the carrying amount of these assets may result in a taxable flow of economic benefits to the entity. As the amount that will be deductible for tax purposes will differ from the amount of those economic benefits, a temporary difference arises between the carrying amount of the revalued asset and its tax base. In the event that the fair value is greater than the cost the assets, these temporary differences give rise to a deferred tax liability.

 

18. Cost of sales, operating, selling and administration expenses

 

	Six month period ended
	31 December 2009	31 December 2008
	USD'000	USD'000
Management fees	6,624	7,681
Professional and consultancy fees	7,203	1,829
Staff costs (*)	2,698	3,691
Depreciation and amortisation (*)	2,589	4,074
Outside service costs (*)	1,967	1,929
Material costs (*)	1,058	3,796
Other general and administration expenses (*)	4,255	3,725
	26,394	26,725

 

(*) These costs primarily relate to the operating activities of the Group's subsidiaries.

 

 

19. Net gain/(loss) on fair value adjustments of investment properties

 

	Six month period ended
	31 December 2009	31 December 2008
	USD'000	USD'000
		(Reclassified)
By real estate sector:
- Mixed used	39,007	(27,193)
- Hospitality	3,215	(16,789)
- Commercial	(1,268)	-
- Residential	(268)	(655)
Net gain/(loss) on fair value adjustments of investment properties	40,686	(44,637)

 

The net loss on fair value adjustments of investment properties for the six month period ended 31 December 2008 is adjusted for deferred tax liabilities of USD4.5 million for comparison with the current period presentation (Note 22).

 

20. Other income

 

	Six month period ended
	31 December 2009	31 December 2008
	USD'000	USD'000
Gain on disposal of investment rights (*)	7,592	-
Negative goodwill (Note 6)	4,986	-
Other income	1,524	748
	14,102	748

 

(*) The amount relates to the gain from disposal of the right to invest in a project for USD18 million in the period. The original investment and subsequent costs incurred were previously included in Prepayments for acquisitions of investments.

 

21. Other expenses

 

	Six month period ended
	31 December 2009	31 December 2008
	USD'000	USD'000
Allowances for impairments of assets (*)	6,933	15,914
Losses from written-off assets	1,386	1,303
Other expenses	215	406
	8,534	17,623

 

(*) The impairments primarily relate to the Prodigy Pacific Vietnam Ltd. (Mecure La Gare project) of USD0.6 million and Roxy Vietnam Ltd. (Movenpick Hanoi project) of USD4.9 million.

 

22. Corporate income tax

 

VinaLand Limited is domiciled in the Cayman Islands. Under the current laws of the Cayman Islands, there is no income, corporation, capital gains or other taxes payable by the Company.

 

The majority of the Group's subsidiaries are domiciled in the British Virgin Islands (BVI) and so have a tax exempt status. A number of subsidiaries are established in Vietnam and are subject to corporate income tax in Vietnam. A provision of USD858,000 has been made for corporate income tax payable by these Vietnamese subsidiaries for the period (period from 1 July 2008 to 31 December 2008: USD611,000).

 

The relationship between the expected tax expense based on the applicable tax rate of 0% and the tax expense actually recognised in the condensed consolidated statement of income can be reconciled as follows:

 

	Six month period ended
	31 December 2009	31 December 2008
	USD'000	USD'000
Group profit/(loss) before tax	23,765	(72,473)
Group profit/(loss) multiplied by applicable tax rate (0%)	-	-
Effect of:
Deferred income tax (expense)/income	(3,655)	4,465
Income tax expense of Vietnamese subsidiaries	(858)	(611)
Tax income/(expense)	(4,513)	3,854

 

23. Earnings per share

 

(a) Basic

Basic earnings per share is calculated by dividing the profit/(loss) attributable to equity shareholders of the Company by the weighted average number of ordinary shares on issue during the period.

 

	Six month period ended
	31 December 2009	31 December 2008
Profit/(loss)/ attributable to equity shareholders of the parent (USD'000)	6,935	(41,377)
Weighted average number of ordinary shares on issue	499,967,622	499,967,622
Basic earnings/(loss) per share (USD per share)	0.01	(0.08)

 

(b) Diluted

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Group has no category of potential dilutive ordinary shares. Therefore, diluted earnings per share are equal to basic earnings per share.

 

(c) Net asset value per share

Net asset value (NAV) per share is calculated by dividing the net asset value attributable to equity shareholders of the Company by the weighted average number of outstanding ordinary shares as at the reporting date. Net asset value is determined as total assets less total liabilities and non-controlling interests.

 

	31 December 2009	30 June 2009
Net asset value attributable to equity shareholders of the Company (USD'000)	666,652	660,529
Weighted average number of ordinary shares on issue	499,967,622	499,967,622
Net asset value per share (USD/share)	1.33	1.32

 

24. Seasonality

 

The Group's management believes that the impact of seasonality on the condensed interim consolidated financial information is not material.

 

25. Contingent liabilities

 

Taxation

Although the Company and its direct subsidiaries are incorporated in the Cayman Islands and the British Virgin Islands where they are exempt from tax, the Group's activities are primarily focused on Vietnam. In accordance with the prevailing tax regulations in Vietnam, if an entity was treated as having a permanent establishment, or as otherwise being engaged in a trade or business in Vietnam, income attributable to or effectively connected with such permanent establishment or trade or business may be subject to tax in Vietnam. As at the date of this report the following information cannot be determined:

 

·; Whether the Company and/or its subsidiaries are considered as having permanent establishments in Vietnam; and

·; The amount of tax that may be payable, if the income is subject to tax.

 

The implementation and enforcement of tax regulations in Vietnam can vary depending on numerous factors, including the identity of the tax authority involved. The administration of laws and regulations by government agencies may be subject to considerable discretion. The Directors believe that it is unlikely that the Group will be exposed to tax liabilities in Vietnam. If tax is imposed on income arising in Vietnam, it will not be applied retrospectively.

 

As at 31 December 2009, due to the uncertainties mentioned above, except for the tax provision mentioned in Note 22, no other corporate tax liabilities have been recognised in the interim financial information.

 

26. Commitments

 

As at 31 December 2009, the Group was committed under lease agreements to paying the following future amounts:

	31 December 2008	30 June 2009
	USD'000	USD'000
Within one year	955	919
From two to five years	3,397	3,407
Over five years	12,776	12,776
	17,128	17,102

 

As at 31 December 2009, the Group was also committed under construction agreements to paying USD19.7 million (30 June 2009: USD17.9 million) for future construction works of the Group's properties held by subsidiaries.

 

The Group has a broad range of arrangements under investment licences it has received, and other agreements it has entered into, to acquire and develop, or make additional investments in investment properties and leasehold land in Vietnam. Further investment in any of these arrangements is at the Group's discretion.

 

27. Related party transactions

 

During the period, VinaCapital Vietnam Opportunity Fund Limited, a related party under common management, acquired 8,492,839 ordinary shares in the Company for USD6.7 million, bringing the total number of shares held by this related party to 23,241,883 ordinary shares, representing a 4.65% holding in the Company.

 

28. Subsequent events after the reporting date

 

Disposal of Golden Gain Vietnam

Following the disposal of 10% of the share capital of Golden Gain Vietnam to a local buyer, the Group have entered into an Option Agreement and subject to the completion of specific conditions, a further stake of 75% of Golden Gain Vietnam will be transferred to the buyer. In March 2010, the Group received additional payments of USD17 million from the buyer, bringing total receipt of USD21.9 million at the reporting date and control of the 75% interest will pass to the buyer when the remaining sale conditions are met.

 

 

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