Lenovo 2012 Annual Report Download - page 167

2011/12 Annual Report Lenovo Group Limited 165
32 Significant related party transactions
(a) The Group had the following significant related party transactions in the normal course of business during the year:
2012 2011
US$’000 US$’000
閃聯信息技術工程中心有限公司
(IGRS Engineering Lab Limited) (an associate)
– Purchase of goods 6,197 815
北京聯想利泰軟件有限公司
(Beijing Legendsoft International Technology Company Limited) (an associate)
– Sales of goods –60
– Purchase of goods 81 281
– Service income 856 2,024
北京聯想調頻科技有限公司
(Beijing Legend Tiaopin Technology Limited) (a subsidiary of a substantial
shareholder of the Company)
– Purchase of goods 515 1,148
– Service income 142 102
Note: The English name of each company is a direct translation of its Chinese registered name.
(b) Key management compensation
Details on key management compensation are set out in Note 11.
33 Commitments
(a) Commitments to establish a joint venture company
OnSeptember26,2011,theCompanyenteredintoajointventureagreement(“JVAgreement”)withCompal
Electronics,Inc.(“Compal”)toestablishajointventurecompany(“JVCo”)tomanufacturenotebookcomputerproducts
and related parts. Pursuant to the JV Agreement, the Company and Compal will make capital contributions in cash
totaling US$300 million in two phases in accordance with their ownerships of 51% and 49% respectively. Subsequent to
the balance sheet date on April 10, 2012, US$100 million in respect of the first phase has been contributed into the JV
Co by both joint venturers in accordance with their respective equity interests.
Pursuant to the JV Agreement, the Company and Compal are respectively granted call and put options which entitle the
Company to purchase from Compal and Compal to sell to the Company the 49% Compal’s interests in the JV Co. The
call and put options will be exercisable at any time after October 1, 2019 and October 1, 2017 respectively. The exercise
price for the put and call options will be determined in accordance with the JV Agreement. The maximum exercise price
of the put option is US$750 million.
(b) Capital commitments
Apart from the disclosure in Note 33(a) above, at March 31, 2012, the Group had the following other capital
commitments:
2012 2011
US$’000 US$’000
Contracted but not provided for:
– Property, plant and equipment 49,960 4,662
– Intangible assets –8,525
– IT consulting services 2,992 –
52,952 13,187
Authorized but not contracted for:
– Property, plant and equipment 35,214 22,782
At March 31, 2012, the Company did not have any capital commitments (2011: Nil) other than as disclosed in Note
33(a) above.