NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
Financial Statements
145
Annual Report 2014
37.
Segment information
(continued)
Geographical information
The Group’s business segments operate in two main geographical areas:
People’s Republic of China - the operations in this area are principally in ship repair, ship building
and marine engineering; and
Singapore - the operations in this area are principally in shipping, ship repair and marine related
activities and rental of property.
Sales are based on the country in which the services are rendered to the customer. Non-current assets are
shown by the geographical area where the assets are located.
Sales
Non-current assets
2014
2013
2014
2013
$’000
$’000
$’000
$’000
People’s Republic of China
4,189,859
3,435,034
2,438,684
2,385,232
Singapore *
70,846
73,100
134,114
138,140
4,260,705
3,508,134
2,572,798
2,523,372
*
The Group’s shipping companies operate in worldwide shipping routes. Hence, it would not be meaningful to
allocate sales to any geographical segments for shipping activities.
Revenue of approximately $Nil (2013: $491,272,000) is derived from a single customer. This revenue is
attributable to the People’s Republic of China ship repair, ship building and marine engineering segment.
38.
Contingent liability
On 5 August 2013, a customer of a subsidiary served notice of termination on alleged grounds of delay
in the delivery of a vessel, the construction of which is substantially completed. On 5 September 2013,
the customer submitted a request for arbitration in London for which the customer claimed for a refund
of the first instalment paid on the contract amounting to US$110 million together with interest thereon,
damages and interest thereon, indemnity for future losses, further or other relief and costs. On 7 October
2013, the customer rejected the subsidiary’s without prejudice proposal to settle the matter. The subsidiary
has appointed legal advisers in London in relation to the arbitration and is responding to the request for
arbitration accordingly. Given the current stage of arbitration proceedings, the directors are of the opinion
that it is difficult to quantify the eventual financial impact of the arbitration, if any, as at the date of these
financial statements.
Notwithstanding the arbitration proceedings, the subsidiary has on 13 January 2014 refunded the first
instalment paid of US$110 million together with payment of interest thereon amounting to US$8.1 million to
the customer.
