# 21 AVAILABLE-FOR-SALE INVESTMENTS

<table><tr><td rowspan="2"></td><td>2017</td><td>2016</td></tr><tr><td>HK$’000</td><td>HK$’000</td></tr><tr><td>Listed equity securities, at fair value</td><td>61,501</td><td>51,408</td></tr><tr><td>Unlisted equity securities, at fair value (note)</td><td>5,282,793</td><td>4,804,782</td></tr><tr><td></td><td>5,344,294</td><td>4,856,190</td></tr></table>

Note: In 2016, the Group acquired an indirect equity interest of approximately 24.4% in Shanghai Krupp Stainless Co. Ltd. (“SKS”), which owns a project site in Pudong New Area, Shanghai (the “Project”). As the Group does not have any significant influence over financial and operating policies to Shanghai Krupp, the Group recorded its investments as available-for-sale investments. The investment cost in SKS amounting to HK\$3,425 million as at 31 December 2017 was included in the balance of unlisted equity securities.

The Group’s investment was made based on a public notice issued and approved in May 2016 by the Municipal Government on city planning regarding the conversion of the land usage from industrial to commercial and residential use. However, in August 2017, the Municipal Government issued and approved another development plan of Pudong Expo Cultural Park of which the underlying Project held by SKS fell within the area of park development.

As of the date of this report, there is no verbal or written notice issued by the government to SKS regarding the development of the site area and the rationale of the change in the development plan of the area and its implication to the original development plan of the Project. As of the date of this report, SKS remains as the registered owner of the land with all the rights conferred as per the original land grant.

Based on the above-mentioned situation and after taking into consideration the legal advice from an independent legal counsel, together with the current status of the project site, management considered SKS maintains reasonable grounds to negotiate with the Municipal Government in respect of the latest development plan of the Project including but not limited to explore a mutually acceptable solution and/or to pursue a negotiation for its damages and loss of profits, if any. Management has then engaged independent valuers, Cushman & Wakefield Limited, who hold a recognised relevant professional qualification, to estimate the fair value of the Group’s available-for-sale investments as at 31 December 2017 based on the original development plan of the Project as set out in the public notice issued in May 2016.

Cushman & Wakefield Limited adopted an asset-based valuation approach on the investment, which is a means of estimating the value of a business using methods based on the market value of individual business assets less liabilities and judgement was required to determine the fair value.

# 22 MORTGAGE LOANS RECEIVABLE

<table><tr><td rowspan="2"></td><td>2017</td><td>2016</td></tr><tr><td>HK$’000</td><td>HK$’000</td></tr><tr><td>Non-current mortgage loans receivable</td><td>3,641,905</td><td>1,001,386</td></tr><tr><td>Current portion of mortgage loans receivable</td><td>30,025</td><td>13,663</td></tr><tr><td>Total mortgage loans receivable</td><td>3,671,930</td><td>1,015,049</td></tr></table>

The balance included first mortgage loans of HK\$2,442,536,000 (2016: HK\$611,329,000) offered to buyers of certain properties developed by the Group in Hong Kong. For these first mortgage loans receivable, the fair value was calculated based on cash flows discounted using lending rates from financial institutions and assuming the loans will be repaid according to the contract terms. The valuation process of the Group is set out in note 3(c)(iv) to the consolidated financial statements.

The remaining amounts mostly represented the second mortgage loans receivable which are carried at amortised cost.

Mortgage loans receivable are denominated in Hong Kong dollars.

# 23 ACCOUNTS RECEIVABLE, PREPAYMENTS AND DEPOSITS

<table><tr><td rowspan="2"></td><td>2017</td><td>2016</td></tr><tr><td>HK$’000</td><td>HK$’000</td></tr><tr><td>Trade receivables (note (a))</td><td>4,332,017</td><td>347,788</td></tr><tr><td>Prepayments</td><td>223,230</td><td>928,753</td></tr><tr><td>Land bidding deposit (note (b))</td><td>–</td><td>168,652</td></tr><tr><td>Others</td><td>3,010,964</td><td>1,033,423</td></tr><tr><td></td><td>7,566,211</td><td>2,478,616</td></tr></table>

The carrying amounts of accounts receivable approximate their fair value.

The carrying amounts of the Group’s accounts receivable, prepayments and deposits are denominated in the following currencies:

<table><tr><td rowspan="2"></td><td>2017</td><td>2016</td></tr><tr><td>HK$’000</td><td>HK$’000</td></tr><tr><td>Hong Kong dollar</td><td>6,957,831</td><td>1,831,154</td></tr><tr><td>Renminbi</td><td>507,694</td><td>646,858</td></tr><tr><td>Other currencies</td><td>100,686</td><td>604</td></tr><tr><td></td><td>7,566,211</td><td>2,478,616</td></tr></table>