Sun Art Retail Group Limited - TodayIR.com

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 4 PROFIT BEFORE TAXATION (CONTINUED) (b) Staff costs (continued) (ii) Contributions to Employee Trust Benefit Schemes The Group has established an Employee Trust Benefit Scheme for employees of its subsidiary, Concord Investment (China) Co., Ltd. (“CIC”) and its subsidiaries (“the RT- Mart Scheme”) and an Employee Trust Benefit Scheme for employees of its subsidiary, Auchan (China) Hong Kong Limited (“ACHK”) and its subsidiaries (“the Auchan Scheme”). Under each scheme, an annual profit sharing contribution, calculated based on the consolidated results of CIC for the RT-Mart Scheme, and on the consolidated results of ACHK for the Auchan Scheme, and the number of eligible employees, is payable to a trust, the beneficial interests in which are allocated to participating eligible employees in accordance with the relevant Employee Trust Benefit Scheme rules. The trusts are administered by independent trustees and invest the amounts received in either cash and cash equivalents (“cash-like assets”) or equity of CIC in the case of the RT-Mart Scheme, or cash-like assets or equity of ACHK’s subsidiary, Auchan (China) Investment Co., Ltd. (“ACI”) in the case of the Auchan Scheme, respectively. The annual profit sharing contributions are accrued in the year in which the associated services are rendered by the eligible employees. In addition to the annual profit sharing contributions made by the Group, subject to certain conditions, eligible employees are entitled to acquire additional beneficial interests in the relevant Employee Trust Benefit Scheme trust using their own funds. Any excess of the capital injected by the trusts to CIC or ACI over the attributable share of their consolidated net assets acquired is credited to capital reserve within equity. (iii) Share-based payments On 7 December 2011, the Company granted a total of 296,790 share appreciation rights to a director and a member of key management whereby, provided they meet certain vesting criteria, the individuals will be entitled to a future cash payment, calculated based on the increase (capped at 3.5 times) in the Company’s share price after a six year period from its opening share price on 6 December 2011 of HKD10.52. Based on the fair value of HKD3.08 per right as at 31 December 2012, determined using the Monte Carlo Method, RMB0.1 million has been recognised as a staff cost expense in the Group’s statement of comprehensive income for the year ended 31 December 2012. ACHK granted certain rights to a number of senior management of ACHK whereby, provided they meet certain vesting criteria, the individuals will be entitled to a future cash payment, calculated based on the increase in the fair value of ACHK. Based on the fair value of ACHK valued by an independent valuer and estimated by the directors, RMB45 million has been recognised as a staff cost expense in the Group’s statement of comprehensive income for the year ended 31 December 2012. In addition to the above, share-based payments includes RMB6 million in respect of stock options and shares in the Group’s joint controlling shareholder, Groupe Auchan S.A., granted by Groupe Auchan S.A. to certain employees of the Group in respect of their service to the Group. Details of share options and shares are set out in the Report of Directors. Sun Art Retail Group Limited Annual Report 2012 77
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 4 PROFIT BEFORE TAXATION (CONTINUED) (c) Other items Year ended 31 December 2012 2011 RMB million RMB million Cost of inventories 61,579 54,127 Depreciation – assets leased out under operating leases – investment properties 129 115 – other property, plant and equipment 183 167 – assets held for own use 1,510 1,171 1,822 1,453 Amortisation – land use rights 128 75 – intangible assets 2 2 130 77 Operating lease charges (i) contingent rents – assets leased for own use 402 308 – assets sublet to others 107 78 (ii) minimum lease payments – assets leased for own use 1,076 866 – assets sublet to others 148 122 (iii) fees to Contracted Store Owners 43 73 Total 1,776 1,447 Loss on disposal of property, plant and equipment 23 28 Net foreign exchange (gain)/loss (14) 18 Listing expenses – 46 Auditors’ remuneration – audit services 19 19 – IPO related services – 10 Donations 5 2 Rental income from investment properties – gross (632) (501) – direct operating expenses 41 34 Net (591) (467) 78 Sun Art Retail Group Limited Annual Report 2012
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Sun Art Retail Group Limited (Incor
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CORPORATE INFORMATION DIRECTORS Exe
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CHAIRMAN’S STATEMENT Dear Shareho
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