NOTES TO FINANCIAL STATEMENTS
30 June 2016
109
Karin Technology Holdings Limited
Annual Report 2016
29. RESERVES
(a)
GROUP
The amounts of the Group’s reserves and the movements therein for the current and prior years are
presented in the consolidated statement of changes in equity of the financial statements.
(i)
The Group’s contributed surplus represents the difference between the aggregate of the nominal
value of issued share capital and the balance of the contributed surplus account the Company
acquired, and the nominal value of the shares of the Company issued in exchange therefor, pursuant
to a group restructuring completed in prior years.
(ii)
The land and buildings revaluation reserve is used to record increments and decrements in the fair
value of leasehold land and buildings, net of relevant deferred tax, to the extent that they offset
each other.
(iii)
In accordance with the relevant PRC regulations, each of the Group’s PRC subsidiaries is required
to transfer not less than 10% of its profit after tax, as determined in accordance with the PRC
accounting standards and regulations, to the general reserve until such reserve reaches 50%
of its registered capital. The quantum of the annual transfer is subject to the approval of the
respective boards of directors of the PRC subsidiaries in accordance with their respective articles
of association. No transfer was made in the current and prior years as the general reserves of the
relevant subsidiaries had reached 50% of their respective registered capital.
(b)
COMPANY
Share
Share
premium Contributed
option
Retained
account
surplus
reserve
profits
Total
Notes
HK$’000
HK$’000
HK$’000
HK$’000
HK$’000
At 1 July 2014
44,387
36,311
442
21,817
102,957
Profit for the year and total
comprehensive income
for the year
–
–
–
35,250
35,250
Issue of shares under the
2005 ESOS
27, 28(b)
1,037
–
(308)
–
729
Final 2014 dividend paid
–
–
–
(16,709)
(16,709)
Interim 2015 dividend paid
9
–
–
–
(18,423)
(18,423)
At 30 June 2015 and
at 1 July 2015
45,424
36,311
134
21,935
103,804
Profit for the year and total
comprehensive income
for the year
–
–
–
29,833
29,833
Issue of shares under the
2005 ESOS
27, 28(b)
58
–
(19)
–
39
Final 2015 dividend paid
9
–
–
–
(19,297)
(19,297)
Interim 2016 dividend paid
9
–
–
–
(10,675)
(10,675)
Distribution of treasury shares
27
105
–
–
–
105
At 30 June 2016
45,587
36,311
115
21,796
103,809
