During 2013, the Group entered into joint-venture arrangements with INOAC Corporation. As a result, the Group has a 50% interest in Azote Asia Limited (a private company incorporated in Hong Kong). Azote Asia Limited commenced trading in 2014 and is the exclusive distributor of Zotefoams’ AZOTE® products in the Far East. The registered address and principal place of business is 1318-22, Park-In Commercial Centre, 56 Dundas Street, Kowloon. As at the end of the year, there were no contingent liabilities or commitments relating to the Group’s interest in the joint venture.
The joint venture has share capital consisting solely of ordinary shares which are held directly by the Group. Azote Asia Limited is a private company and there is no quoted market price available for its shares.
Set out below is the summarised financial information for Azote Asia Limited, which is accounted for using the equity method.
Summarised statement of financial position:
As at 31 December | ||
|---|---|---|
2025 | 2024 | |
Cash and cash equivalents | 743 | 684 |
Other assets (excluding cash) | 532 | 1,201 |
Total assets | 1,275 | 1,885 |
Financial liabilities (excluding trade payables) | – | – |
Other current liabilities (including trade payables) | (622) | (1,324) |
Total liabilities | (622) | (1,324) |
Net assets | 653 | 561 |
Summarised statement of comprehensive income:
2025 | 2024 | |
|---|---|---|
Revenue | 2,493 | 3,811 |
Finance costs | 2 | 6 |
Profit before tax | 84 | 141 |
Income tax expense | (20) | – |
Profit after tax | 64 | 141 |
Other comprehensive income | 28 | 7 |
Total comprehensive income | 92 | 148 |
Dividend received from joint venture | – | – |
The information above reflects the amounts presented in the financial statements of the joint venture. There are no material differences in accounting policies between the Group and the joint venture.
A reconciliation of the summarised financial information presented to the carrying amount of the interest in the joint venture is provided below:
2025 | 2024 | |
|---|---|---|
Opening net assets | 561 | 413 |
Profit for the year | 64 | 148 |
Other comprehensive income | 28 | – |
Closing net assets | 653 | 561 |
Interest in joint venture @ 50% | 327 | 281 |
2025 | 2024 | |
|---|---|---|
Information on the joint venture | ||
Carrying value at 1 January | 281 | 207 |
Share of profit for the year | 46 | 74 |
Carrying value at 31 December | 327 | 281 |