Group
1998 1997
HK$'000 HK$'000
Cost:
At beginning and end of the year/period 10,500 10,500
Amortisation:
At beginning of the year/period 2,702 1,842
Provided during the year/period 737 860
------ ------
At end of the year/period 3,439 2,702
------ ------
Net book value
At end of the year/period 7,061 7,798
====== ======
The prepaid rental represents the capital contribution made by the joint venture partner of Dongguan Yifu Circuit Board Factory, a subsidiary of the Company, in the form of a right to use the property owned by the joint venture partner within the terms of the joint venture.
The prepaid rental is amortised on a straight-line basis over the underlying initial term of the joint venture of 15 years.
Group
1998 1997
HK$'000 HK$'000
Cost:
At beginning of the year/period 7,193 5,676
Additions 3,148 1,517
------ ------
At end of the year/period 10,341 7,193
------ ------
Amortisation:
At beginning of the year/period 3,239 2,205
Provided during the year/period 1,273 1,034
------ ------
At end of the year/period 4,512 3,239
------ ------
Net book value:
At end of the year/period 5,829 3,954
====== ======
Group
1998 1997
HK$'000 HK$'000
Cost:
At beginning and end of the year/period 6,713 6,713
----- -----
Amortisation:
At beginning of the year/period 2,247 895
Provided during the year/period 1,103 1,352
----- -----
At end of the year/period 3,350 2,247
----- -----
Net book value:
At end of the year/period 3,363 4,466
===== =====
Group
1998 1997
HK$'000 HK$'000
Unlisted shares, at cost 93,316 93,316
Due from subsidiaries 140,070 139,894
Due to subsidiaries (832) (460)
------- -------
232,554 232,750
======= =======
The balances with the subsidiaries are unsecured, interest-free and have no fixed terms of repayment.
Particulars of the subsidiaries are as follows:
Nominal value
of issued Percentage
Place of ordinary of equity
incorporation/ share capital/ attributable
registration registered to the Principal
Name and operations capital Company activities
Account Centre Hong Kong HK$2 100% Management
Limited services
Central Technology Hong Kong HK$100 100% Trading of
Limited electronic
components
and parts
E-Top PCB Limited Hong Kong HK$100 100% Trading and
sale of
printed
circuit
boards
Eastec Property Hong Kong HK$100 100% Property
Holding Limited holding
Eastec Purchasing The British US$1 100% Trading of
Limited Virgin Islands electronic
components
and parts
Eastec Technology The British US$1 100% Trading of
(China) Limited Virgin Islands electronic
components
and parts
Eastec Technology Hong Kong HK$2 100% Trading of
Limited electronic
components
and parts
Electronics Tomorrow The British US$100 100% Investment
Holdings Virgin Islands holding
Corporation
Electronics Tomorrow The British US$600 100% Investment
International Virgin Islands holding
Limited
Electronics Tomorrow Hong Kong HK$500,000 100% Manufacture
Limited and sale of
electronic
products
Electronic Tomorrow The British US$100 100% Investment
Manufactory Inc. Virgin Islands holding
Electronics Tomorrow The British US$100 100% Investment
Property Holdings Virgin Islands holding
Limited
Good Order The British US$100 100% Investment
International Virgin Islands holding
Inc.
Ingersoll The British US$100 100% Dormant
Incorporated Virgin Islands
Issegon Company Hong Kong HK$300,000 100% Property
Limited holding
Plentiful Light Ltd. The British US$100 100% Manufacture
Virgin Islands of printed
circuit
boards
Products Tomorrow Hong Kong HK$2 100% Development
Limited of new
electronic
products
Protech Holdings The British US$100 100% Dormant
Limited Virgin Islands
Team Force The British US$100 100% Investment
Corporation Virgin Islands holding
Dongguan Yifu The People's HK$64,160,000 84% Manufacture
Circuit Board Republic of printed
Factory of China circuit
boards
Gaojin Electronics The People's US$2,000,000 100% Manufacture
(Shenzhen) Co., Republic of electronic
Ltd. of China products
Other than Electronics Tomorrow International Limited, which is held directly by the Company, all subsidiaries are held indirectly by the Company.
Group
1998 1997
HK$'000 HK$'000
Share of net assets other than goodwill 23 --
Due from an associated company 2,762 2,732
Due to an associated company (2,422) (1,676)
----- -----
363 1,056
===== =====
The amount due from an associated company is unsecured, interest-free and has no fixed terms of repayment. The amount due to an associated company is unsecured, interest-free and repayable in accordance with normal trading terms.
Particulars of the associated companies are as follows:
Percentage
Place of of equity
incorporation/ attributable Principal
Name operation to the Group activities
Golden Bright Plastic Hong Kong 49% Trading of
Manufacturing Company plastic
Limited materials
Luxuriance Co., Limited The British 49% Manufacture
Virgin Islands and sale of
plastic
casings
Pursuant to an agreement signed between the Group and the majority shareholders of the associated companies, the Group is only liable for losses of the associated companies up to the Group's cost of investments in the associated companies and any further losses are to be borne wholly by the majority shareholders. Accordingly, the Group has only accounted for its share of accumulated losses of the associated companies in the financial statements up to its cost of investments.
Group Company
Note 1998 1997 1998 1997
HK$'000 HK$'000 HK$'000 HK$'000
Cash and bank balances 42,826 49,467 134 186
Accounts receivable, deposits
and prepayments 80,297 104,125 317 53
Inventories 16 74,920 102,538 -- --
Dividend receivable -- -- -- 800
------- ------- ------- -------
198,043 256,130 451 1,039
======= ======= ======= =======
Group
1998 1997
HK$'000 HK$'000
Raw materials 54,193 74,946
Work in progress 12,897 14,501
Finished goods 7,830 13,091
------- -------
74,920 102,538
======= =======
The above inventories were net of a general provision of HK$3,615,000 (1997: HK$910,000).
Group Company
Note 1998 1997 1998 1997
HK$'000 HK$'000 HK$'000 HK$'000
Bank borrowings 18 43,308 74,497 -- --
Accounts payable and
accrued liabilities 93,127 88,534 364 1,152
Finance lease payables -- 204 -- --
Taxation 2,103 2,262 -- --
------- ------- ------- -------
138,538 165,497 364 1,152
======= ======= ======= =======
Group
1998 1997
HK$'000 HK$'000
Secured 16,944 20,641
Unsecured 39,611 70,800
------ ------
56,555 91,441
====== ======
The maturities of the above amounts are as follows:
Group
1998 1997
Trust Trust
receipt Mortgage receipt Mortgage
loans loan Total loans loan Total
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
Amounts payable:
Within one year 39,611 3,697 43,308 70,800 3,697 74,497
In the second year -- 3,697 3,697 -- 3,697 3,697
In the third to
fifth years,
inclusive -- 9,550 9,550 -- 11,091 11,091
After five years -- -- -- -- 2,156 2,156
------ ------ ------ ------ ------ ------
39,611 16,944 56,555 70,800 20,641 91,441
Portion classified
as current
liabilities (39,611) (3,697) (43,308) (70,800) (3,697) (74,497)
------ ------ ------ ------ ------ ------
Long term portion -- 13,247 13,247 -- 16,944 16,944
====== ====== ====== ====== ====== ======
Certain leasehold land and buildings were pledged to secure the mortgage loan granted to the Group (note 9).
Group
1998 1997
HK$'000 HK$'000
Balance at beginning of year/period 1,196 1,325
Charge/(write-back) for the year/period (note 6) (1,196) (129)
----- -----
Balance at end of year/period -- 1,196
===== =====
The principal components of the Group's provision for deferred taxation liabilities are as follows:
Group
1998 1997
HK$'000 HK$'000
Accelerated depreciation allowances -- 568
Others -- 628
----- -----
-- 1,196
===== =====
There was no significant unprovided deferred tax in respect of the year (1997: Nil).
The revaluation surplus arising on the revaluation of the Group's leasehold land and buildings does not constitute a timing difference and consequently, the amount of potential deferred tax thereon has not been quantified.