NOTES TO FINANCIAL STATEMENTS
December 31, 2015
37
CONTINGENCIES AND GUARANTEES
As at December 31, 2015, the Group has provided guarantees of approximately RMB7.577 billion (2014 : RMB2.515
billion) to banks for the benefit of its customers in respect of mortgage loans provided by the banks to these customers
for the purchase of the Group’s development properties. Should such guarantees be called upon, there would be an
outflow of cash (previously collected by the Group) from the Group to the banks to discharge the obligations. The
management has made enquiries with the banks and considered the profile of customers who bought the Group’s
properties and concluded that the likelihood of these guarantees being called upon is low. These guarantees provided
by the Group to the banks would be released upon receiving the building ownership certificate of the respective
properties by the banks from the customers as security for the mortgage loan granted.
As described in Note 30, the additional LAT tax exposure in the event of future re-assessment by the tax authorities
has been estimated by management to be approximately RMB598 million (2014 : RMB599 million) (before effects of
deductibility for income tax assessment purpose and adjustment for non-controlling interests).
As at December 31, 2015, the Company, together with five of its subsidiaries, has provided a joint guarantee in
respect of senior notes issued by a wholly-owned subsidiary amounting to RMB1.871 billion (2014 : RMB2.000
billion) for a remaining term of less than one year up to May 22, 2016.
As at December 31, 2015, the Company, together with five of its subsidiaries, has provided joint guarantees to banks
in respect of the following loan facilities granted to a subsidiary:
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(equivalent to US$385 million)) for a remaining term of less than two years up to June 23, 2017. As at
December 31, 2015, an amount of RMB2.156 billion (equivalent to US$332 million) (2014 : RMB1.909 billion
(equivalent to US$312 million)) has been drawn down.
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remaining term of less than three years up to May 4, 2018. The loan facility was fully drawn down as at the
end of 2015.
As at December 31, 2014, the Company, together with five of its subsidiaries, had provided a joint guarantee to banks
in respect of the following loan facility granted to a subsidiary:
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one year up to May 13, 2015. The loan facility was fully drawn down as at the end of 2014. On May 13, 2015
the loan and interest payable were fully repaid and the loan facility was cancelled accordingly.
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one year up to December 30, 2015. The loan facility was fully drawn down as at the end of 2014. On May 13,
2015, the loan and interest payable were fully repaid and the loan facility was cancelled accordingly.
As at December 31, 2015, the Company has provided a guarantee to a bank in respect of a loan facility granted to a
subsidiary amounting to RMB230 million (equivalent to S$50 million) (2014 : RMB116 million (equivalent to S$25
million)) for a remaining term of less than three years up to March 30, 2018. As at December 31, 2015, an amount of
RMB115 million (equivalent to S$25 million) (2014 : RMB116 million (equivalent to S$25 million)) has been drawn
down.
YANLORD LAND GROUP LIMITED
ANNUAL REPORT 2015
130
