Sun Art Retail Group Limited - TodayIR.com
Sun Art Retail Group Limited - TodayIR.com
Sun Art Retail Group Limited - TodayIR.com
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br />
10 FIXED ASSETS (CONTINUED)<br />
(i)<br />
All the <strong>Group</strong>’s fixed assets are located in the PRC.<br />
(ii)<br />
Land use rights represent the fees and related expenses in obtaining land use rights for<br />
periods ranging from 40 to 70 years. As at 31 December 2012, the <strong>Group</strong> had not obtained<br />
land use rights certificates for certain land use rights with an aggregate carrying amount of<br />
RMB900 million (2011: RMB226 million). Notwithstanding this, the directors are of the opinion<br />
that the <strong>Group</strong> owned the beneficial title to these land use rights as at 31 December 2012<br />
and 2011.<br />
(iii)<br />
As at 31 December 2012, the <strong>Group</strong> had not obtained property ownership certificates for<br />
certain buildings with an aggregate carrying amount of RMB2,114 million (2011: RMB2,447<br />
million). Notwithstanding this, the directors are of the opinion that the <strong>Group</strong> owned the<br />
beneficial title to these buildings as at 31 December 2012 and 2011.<br />
(iv)<br />
As set out in note 1(h), the <strong>Group</strong> has applied the cost model for its investment properties.<br />
The directors have estimated the fair value of the investment properties as at 31 December<br />
2012 to be RMB5,880 million, using discounted cash flow techniques based on contracted<br />
and expected cash inflows and outflows arising from the investment properties (2011:<br />
RMB4,585 million). The investment properties were not valued by an independent valuer as<br />
at 31 December 2012 and 2011.<br />
(v)<br />
The <strong>Group</strong> leases out investment properties and certain other property, plant and equipment<br />
within the hypermarket buildings under operating leases which typically run for an initial<br />
period of 1 to 3 years. The <strong>Group</strong>’s total future minimum lease receipts under non-cancellable<br />
operating leases are receivable as follows:<br />
Year ended 31 December<br />
2012 2011<br />
RMB million RMB million<br />
Within 1 year 1,426 1,274<br />
After 1 year but within 5 years 811 625<br />
After 5 years 281 175<br />
2,518 2,074<br />
In addition to the minimum amounts disclosed above, certain lessees have <strong>com</strong>mitments<br />
to pay additional rent to the <strong>Group</strong> if their sales revenue exceeds predetermined levels.<br />
Contingent rental receivables are not included in the above.<br />
86<br />
<strong>Sun</strong> <strong>Art</strong> <strong>Retail</strong> <strong>Group</strong> <strong>Limited</strong><br />
Annual Report 2012