11-05-2017, 01:02 AM
(10-05-2017, 10:54 AM)Mushy Wrote: They did not state any figures during agm. Chairman just say that he personally interviewed a few candidates who eanted to rent that land incl the building. I was thinking why not just get an agent to help rent out. I checked the annual report but there was no record of the size or lease remainding or value of the shanghai plant. This is unlike some other company reports that listed all their properties and details.
If you dig into historical Annual reports you can find the details on the Shanghai Manufacturing plant.
Land area: 47,035m2
Lease: 50 years from 14.06.1999 to 13.06.2049
Extracted from their 2016 AR as follows
"During the financial year ended 31 December 2016, plant and machineries and leasehold property (comprising land and building) of YHIMS of $9,100,000 and $11,600,000 respectively were subjected to impairment test. Indicator of impairment exists for these assets as YHIMS’s production had stopped on 30 December 2016 (Note 31). The recoverable amount of these assets were determined based on fair value less cost to sell.
For the plant and machineries, the fair values were assessed by an independent external valuer using replacement cost method. Under this valuation technique, the valuer applied judgement and estimation in deriving at the replacement cost based on information gathered from the market. The valuer also considered adjustments to the replacement costs to factor in the remaining useful lives of these plant and machineries. For the leasehold property, management made reference to sale prices of comparable plots for its fair value. Management applied judgement on the comparability of those plots and made adjustments on those sale prices for remaining land tenure.
No impairment were required as the fair value less cost to sell for these assets were higher than their book values as at 31 December 2016."