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HYUNDAI MOTOR COMPANY Annual Report 2015
126 127
Investments in joint ventures and associates as of December 31, 2014 consist of the following:
In millions of Korean Won
Name of the company
Nature of
business Location
Ownership
Percentage Book value
Beijing-Hyundai Motor Company (BHMC) (*1) Manufacturing China 50.00% ￦ 2,179,636
Beijing Hyundai Qiche Financing Company
(BHAF) (*1, 3) Financing ˝53.00% 193,624
Hyundai WIA Automotive Engine (Shandong)
Company (WAE) Manufacturing ˝22.00% 164,090
Hyundai Motor Group China, Ltd. (HMGC) (*1) Investment ˝50.00% 158,287
Sichuan Hyundai Motor Company (CHMC) (*1) Manufacturing ˝50.00% 155,573
Kia Motors Corporation ˝Korea 33.88% 7,482,972
Hyundai Engineering & Construction Co., Ltd. Construction ˝20.95% 3,130,886
Hyundai WIA Corporation Manufacturing ˝25.35% 707,713
Hyundai Powertech Co., Ltd. ˝ ˝ 37.58% 380,815
Hyundai Dymos Inc. ˝ ˝ 47.27% 289,369
Hyundai Commercial Inc. Financing ˝50.00% 196,471
HMC Investment Securities Co., Ltd. Securities brokerage ˝27.49% 225,332
Eukor Car Carriers Inc. (*2) Transportation ˝12.00% 170,132
Hyundai HYSCO Co., Ltd. Manufacturing ˝29.37% 302,058
Others 420,376
￦ 16,157,334
(*1) Each of the joint arrangements in which the Group retains joint control is structured through a separate entity and there are no contractual terms stating that the parties
retain rights to the assets and obligations for the liabilities relating to the joint arrangement or other relevant facts and circumstances. As a result, the Group considers that
the parties that retain joint control in the arrangement have rights to the net assets and classifies the joint arrangements as joint ventures. Also, there are restrictions which
require consent from the director who is designated by the other investors, for certain transactions such as payment of dividend.
(*2) As the Group is considered to be able to exercise significant influence by representation on the board of directors of the investee and other reasons, although the total
ownership percentage is less than 20%, the investment was accounted for using the equity method.
(*3) As of December 31, 2014, the entity is categorized as a joint venture although the Group’s total ownership percentage is a majority share of 53%, because the Group does
not have control over the entity by virtue of an agreement with the other investors.
(2) The changes in investments in joint ventures and associates for the year ended December 31, 2015 are as follows:
In millions of Korean Won
Name of the company
Beginning of
the year
Acquisitions
/ (disposals)
Share of
profits (losses)
for the year Dividends Others (*)
End of
the year
BHMC ￦ 2,179,636 ￦ 236,164 ￦ 676,922 ￦ (936,483) ￦ 33,082 ￦ 2,189,321
BHAF 193,624 -23,017 -3,834 220,475
WAE 164,090 8,745 11,465 (1,447) 1,402 184,255
HMGC 158,287 -(25,032) -1,745 135,000
CHMC 155,573 -(57,269) -1,763 100,067
Kia Motors Corporation 7,482,972 -865,327 (137,318) (163,433) 8,047,548
Hyundai Engineering &
Construction Co., Ltd. 3,130,886 -47,690 (11,664) 13,581 3,180,493
Hyundai WIA Corporation 707,713 -107,273 (5,515) 4,942 814,413
Hyundai Powertech Co., Ltd. 380,815 -54,060 -(1,787) 433,088
Hyundai Dymos Inc. 289,369 -36,186 -884 326,439
Hyundai Commercial Inc. 196,471 -23,968 (11,050) 33,118 242,507
HMC Investment Securities Co., Ltd. 225,332 -13,845 (1,210) 34 238,001
Eukor Car Carriers Inc. 170,132 -19,472 (7,920) 9,784 191,468
Haevichi Hotels & Resorts Co., Ltd. -110,460 (204) -56 110,312
Hyundai HYSCO Co., Ltd. 302,058 (347,206) 14,033 (2,010) 33,125 -
Others 420,376 11,070 76,590 (15,275) 3,795 496,556
￦ 16,157,334 ￦ 19,233 ￦ 1,887,343 ￦ (1,129,892) ￦ (24,075) ￦ 16,909,943
(*) Others consist of changes in accumulated other comprehensive income, changes in ownership percentage and others.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014