| 20. | INTEREST IN JOINT VENTURES |
| 2016 | 2017 | |||||||
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Share of net assets |
1,175 | 2,368 | ||||||
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Details of the Group’s interest in the joint venture, which is accounted for using the equity method in the consolidated financial statements, are as follows:
|
Name |
Form of |
Place of |
Proportion of ownership interest held by a subsidiary |
Paid up capital |
Principal activities |
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|
Merchants Union Consumer Finance Company Limited (“MUCFC”) |
Incorporated |
The PRC |
50 | % |
RMB 3,200,000,000* |
Consumer finance consulting in the PRC |
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Smart Steps Digital Technology Co., Ltd |
Incorporated |
The PRC |
55 | % |
RMB 116,000,000 |
Information technology service and software research and development service in the PRC |
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| * | Each of the Group and China Merchants Bank injected RMB600 million to MUCFC in December 2017. |
Summarized financial information of the material joint venture, adjusted for any differences in accounting policies, and reconciled to the carrying amount in the consolidated financial statements, are disclosed below:
| MUCFC | ||||||||
| 2016 | 2017 | |||||||
|
Assets |
18,548 | 46,980 | ||||||
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Liabilities |
(16,296 | ) | (42,339 | ) | ||||
|
Equity |
(2,252 | ) | (4,641 | ) | ||||
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Revenue |
1,191 | 4,163 | ||||||
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Income for the year |
336 | 1,189 | ||||||
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Total comprehensive income for the year |
336 | 1,189 | ||||||
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Reconciled to the Group’s interests in the joint venture: |
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Net assets of the joint venture |
2,252 | 4,641 | ||||||
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Group’s effective interest |
50 | % | 50 | % | ||||
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Carrying amount in the consolidated financial statements |
1,126 | 2,321 | ||||||
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