10. Interests in affiliates

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Interests in affiliates

10  Interests in affiliates   Investments in affiliates are accounted for using the equity method of accounting.   The Group acquired 20% equity interests in Zhejiang Tianlan Environmental Protection Technology Co. Ltd, (“Tianlan”), a company incorporated in the PRC for a total consideration of US$4,648,000 in 2007. In 2010, Tianlan increased its share capital and the Group further invested US$262,000 in order to maintain the share holding of 20% in Tianlan. In 2011, Tianlan increased its share capital and the Group further invested US$435,000 in order to maintain the share holding of 20% in Tianlan.   A summary of the financial information of the affiliate, Zhejiang Tianlan Environmental Protection Technology Co. Ltd, is set forth below:

	2012			2011
Balance Sheet:	US$’000			US$’000
Current assets		57,431			49,064
Non-current assets		9,605			10,322
Total assets		67,036			59,386
Total liabilities		(42,889	)		(35,154	)
Total shareholders’ equity		24,147			24,232

	2012			2011
Operating results:	US$’000			US$’000
Net sales		44,543			45,966
Operating profits		616			6,899
Net (loss)/profits		(196	)		6,407

The Group acquired 20% of the equity interests in Zhejiang Jia Huan Electronic Co. Ltd., (“Jia Huan”), a company incorporated in the PRC, for approximately US$2,610,000 in 2008. Jia Huan has been in the environmental protection business since 1969 and is based in Jin Hua, Zhejiang.

A summary of the financial information of the affiliate, Zhejiang Jia Huan Electronic Co. Ltd, is set forth below:

	2012			2011
Balance Sheet:	US$’000			US$’000
Current assets		17,371			16,645
Non-current assets		5,650			5,402
Total assets		23,021			22,047
Total liabilities		(9,893	)		(9,295	)
Total shareholders’ equity		13,128			12,752

	2012		2011
Operating results:	US$’000		US$’000
Net sales		12,631		8,151
Operating profits/(losses)		74		(903	)
Net profits/(losses)		243		(749	)