Accordingly the losses of Juxian Hengbao Farming Co Ltd which is engaged in

Accordingly the losses of juxian hengbao farming co

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Juxian Hengbao Farming Co., Ltd which is engaged in duck farming business are disregarded given that the profits arising from livestock and poultry breeding are exempted from tax.Unappropriated profits Pursuant to the PRC Corporate Income Tax Law, a 10% withholding tax is levied on the dividends to foreign investors from foreign investment enterprises established in Mainland China. The requirement is effective from 1 January 2008 and applies to earnings after 31 December 2007. As at 31 December 2017, the PRC subsidiaries have unappropriated profits amounting to RMB266,100,000 (2016: RMB240,553,000) which has not yet been utilised.Unrecognised deferred tax liabilities As at 31 December 2017, the aggregate amount of temporary differences relating to undistributed profits of subsidiaries for which deferred tax liabilities have not been recognised is RMB26,610,000 (2016: RMB24,055,300). No deferred tax liability has been recognised because the Group is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future.
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NOTES TO THE FINANCIAL STATEMENTSFINANCIAL YEAR ENDED 31 DECEMBER 2O17 (cont’d)HB GLOBAL LIMITED lAnnual Report 20177527. PROFIT/(LOSS) PER SHAREThe basic and diluted profit/(loss) per share attributable to the owners of the Company is computed as follows:Group 2017 2016Net profit/(loss) attributable to owners of the Company (RMB’000) 22,109 (24,885)Weighted average number of ordinary shares in issue (‘000) 468,000 468,000 Profit/(Loss) per share - Basic (RMB cents) 4.72 (5.32)- Diluted (RMB cents) 4.72 (5.32)Diluted profit/(loss) per share are the same as basic profit/(loss) per share as the Company does not have potential dilutive shares.28. PURCHASE OF PROPERTY, PLANT AND EQUIPMENTGroup 2017 2016RMB’000 RMB’000Property, plant and equipment (Note 9) 2,684 4,931 Unpaid balances included under other payables (Note 11) - (219)Paid balance previously included under other payables (Note 11) 219 - Cash paid during the financial year 2,903 4,712 29. EMPLOYEE BENEFITS EXPENSEGroup 2017 2016RMB’000 RMB’000Salaries, bonuses and related costs (including directors’ remuneration) 26,145 26,782 Employer’s contributions to Central Provident Fund 680 1,052 26,825 27,834
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NOTES TO THE FINANCIAL STATEMENTSFINANCIAL YEAR ENDED 31 DECEMBER 2O17 (cont’d)HB GLOBAL LIMITED lAnnual Report 20177630. COMMITMENTS(a) Capital commitmentsCapital expenditure contracted for as at the end of the reporting period but not recognised in the financial statements are as follows:Group 2017 2016RMB’000 RMB’000Construction of duck and poultry slaughter factory 52,720 52,720 Construction of feed mill plant 30,000 30,000 Construction of production factory 1,700 - Installation of cold room and production facilities 9,531 9,531 93,951 92,251 (b) Lease commitments - as lesseeIn addition to the land use rights disclosed in Note 10, the Group has entered into commercial leases on certain lands. These leases comprise non-cancellable leases and have an average tenure of between ten and fifteen years, with option to renew the leases after the expiry dates. The operating leases do not contain any escalation clauses and do not provide for contingent rents.
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