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SIA Annual Report 04/05 97
Notes to the Financial Statements
31 March 2005
CC
฀MOD: CN1323
M Y
C K
While every effort has been taken to carry out instruction to customers satisfaction
NO RESPONSIBILITY liablilty will be accepted for errors
CUSTOMERS ARE THEREFOREURGED TO CHECK THOROUGHLY BEFORE
AUTHORISING PRINTRUNS
DALIM
1 2 3 4 5 6 7 8 9 10 OK TS
CC196777 DLMAC13 10.06.2005 150#
1
3col
22 Long-Term Investments (in $ million)
The Group The Company
31 March 31 March
2005 2004 2005 2004
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Quoted investments at cost
Equity investments – 51.4 – 432.0
Provision for diminution – – – (380.6)
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
– 51.4 – 51.4
Non-equity investments 389.8 291.3 389.8 291.3
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
389.8 342.7 389.8 342.7
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Unquoted investments at cost
Trade investments 71.6 74.3 47.2 47.2
Non-equity investments – 40.2 – 40.2
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
71.6 114.5 47.2 87.4
Provision for diminution (27.8) (27.7) (27.8) (27.7)
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
43.8 86.8 19.4 59.7
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Long-term loans 42.7 45.7 – –
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
476.3 475.2 409.2 402.4
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Market value of quoted investments
Equity investments – 131.5 – 131.5
Non-equity investments 390.4 297.0 390.4 297.0
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
390.4 428.5 390.4 428.5
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Analysis of provision for diminution in value
of quoted and unquoted investments
Balance at 1 April 27.7 25.9 408.3 406.5
Provided during the year 0.1 1.8 0.1 1.8
Provision written off during the year – – (380.6) –
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Balance at 31 March 27.8 27.7 27.8 408.3
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Non-equity investments of $389.8 million (2004: $331.5 million) for the Group and the Company relate to interest-
bearing investments with an effective annual interest rate of 1.71% (2003-04: 1.75%).
The Group’s long-term loans comprise:-
(a) Loan to August Skyfreighter 1994 Trust of $42.7 million (2004: $43.5 million) is unsecured and bears interest
between 1.56% and 3.19% (2003-04: 1.47% to 1.74%) per annum. The loan is repayable on 28 March 2007; and
(b) Shareholders’ loan to Hong Kong Aero Engine Services Limited of US$1.3 million was repaid during the financial
year.
In October 2004, the Company completed its placement of 37,833,309 (after share consolidation of five to one ratio)
ordinary shares in Air New Zealand at a price of NZ$1.63 per share, representing a 3% discount on the previous closing
price. The proceed from disposal of the entire 6.47% equity interest in Air New Zealand was $68.5 million. Surplus on
disposal of the investment was $45.7 million (refer to note 9 to the financial statements).
In May 2004, the Company received $13.9 million capital distribution from Raffles Hotels Limited as part of its capital
reduction exercise from par value of $0.50 per share to $0.32 per share. On 3 March 2005, the Company disposed of its
entire shareholding in Raffles Hotels Limited for $47.3 million. Surplus on disposal of the investment was $32.6 million
(refer to note 9 to the financial statements).
On 15 October 2004, SIAEC disposed of its entire 5% equity interest in Taikoo (Xiamen) Aircraft Engineering Company
Limited to Hong Kong Aircraft Engineering Company Limited for a total cash consideration of $11.7 million (US$7.5
million). Surplus on disposal of the investment was $9.0 million (refer to note 9 to the financial statements).