Fluent Essays

1. Critically analyse the allocation of acquisition cost to goodwill by considering the following questions  a. Is the allocation of acquisition cost to goodwill subjective? Discuss.  b. How does the allocation of acquisition cost to goodwill affect profit and cash flows in subsequent years? For your critical analysis, you could compare the effect of the accounting treatment of goodwill in subsequent years with the effect of the accounting treatment of property, plant and equipment (or intangibles with finite useful lives) in subsequent years. [word limit: 250 words]  2. The reported goodwill on the Balance Sheet may reveal managers’ private information of a firm’s future cash flows. However, research argues that subsequent treatment of goodwill may provide opportunities for earnings management. Discuss whether the accounting treatment of goodwill in subsequent years could be a concern for financial reporting. [word limit: 400 words]  the attached file is the case study to which the questions are to be referred to. Associate Professor Patricia Tan and Associate Professor Jian Ming prepared this case using published sources. As the case is not intended to illustrate either effective or ineffective practices or policies, the information presented reflects the authors’ interpretation of events and serves merely to provide opportunities for classroom discussions. COPYRIGHT © 2014 Nanyang Technological University, Singapore. All rights reserved. No part of this publication may be copied, stored, transmitted, altered, reproduced or distributed in any form or medium whatsoever without the written consent of Nanyang Technological University. The Asian Business Case Centre, Nanyang Business School, Nanyang Technological University, Nanyang Avenue, Singapore 639798. Phone: +65-6790-4864/6552, E-mail: [email protected] BIOSENSORS INTERNATIONAL GROUP: VALUATION AND IMPAIRMENT TESTING OF INTANGIBLES HBSP No.: NTU053 Ref No.: ABCC-2014-009 Date: 07 July 2014 Patricia Tan and Jian Ming Biosensors International Group (BIG), a biotechnology company listed in Singapore Exchange, acquired JW Medical Systems Ltd. in 2011. This resulted in a significant increase in reported goodwill and other intangible assets. On 2 July 2012, Matthew Tay, an analyst with MMB Ltd. (an equity research company in Singapore), sat staring at the balance sheets of BIG. The sum total of intangible assets and goodwill constituted 62% of total assets, compared to 4% the year before. He knew that the huge increase was due to the acquisition of JW Medical Systems in 2011. He wondered what these intangible assets and goodwill represented, how they were accounted for and how they should be interpreted. This case study deals with the valuation and the impairment testing of intangibles (including goodwill) reported in the financial statements of BIG, and describes the acquisition transaction and BIG’s post-acquisition financial position. This document is authorized for use only in Dr Dharmendra Naidu's ACC2100 & ACF2100 Semester 2 2021 at Monash University from Aug 2021 to Feb 2022. Page 2 ABCC-2014-009 On 2 July 2012, Matthew Tay, an analyst with MMB Ltd. (an equity research company in Singapore), sat staring at the balance sheets of Biosensors International Group (BIG). The sum total of intangible assets and goodwill constituted 62% of total assets, compared to 4% the year before. He knew that the huge increase was due to the acquisition of JW Medical Systems in 2011. He wondered what these intangible assets and goodwill represented, how they were accounted for and how they should be interpreted. BIOSENSORS INTERNATIONAL GROUP BIG was incorporated on 28 May 1998 and listed on the Singapore Stock Exchange Mainboard on 20 May 2005. BIG was engaged in the investment holding and licensing of medical technology. The Group developed, manufactured and commercialised innovative medical devices for interventional cardiology and critical care procedures. It operated in three segments: the interventional cardiology segment, which supplied its drug- eluting stent (DES) products, coronary bare-metal stents, accompanying stent delivery balloon catheter systems, angioplasty balloons and catheters; the critical care segment, which supplied catheter systems and related accessories used during surgery and intensive care treatment and monitoring; and the licensing revenue segment, which related to payments and royalties associated with the licensing of its DES technology. Interventional cardiology and licensing revenue accounted for 67% of the total revenue and more than 60% of the gross profit reported by BIG for the year ending 31 March 2012. (See Exhibit 1 – Principal Products of BIG.) Since 1990, BIG has manufactured and marketed critical care catheter systems and related devices that were used during heart surgery and intensive care treatment and monitoring. In 2000, the Group entered the interventional cardiology market with the introduction of its proprietary coronary bare-metal stent, along with stent delivery balloon catheter system, followed by an expansion of the product line to include angioplasty balloons and catheters. It then positioned itself to be a developer, manufacturer and marketer of innovative medical devices with primary focus on DES, an evolving therapy that was rapidly gaining market share from traditional therapies such as bare-metal stenting and open-heart surgery. The Group had internally developed technology to address each component of a DES system, including a stent, a stent delivery catheter, a polymer and a proprietary drug. BIG’s DES was unique in that the stent’s biodegradable polymer allowed it to be absorbed into the human body over six to nine months after medical procedures. It also limited side effects such as thrombosis, which were common in the older DES technologies.1 As a result, BIG derived a large part of its profits from the sales and licensing revenue associated with its DES technology. BIG’S ACQUISITION OF JWMS In 2003, BIG established a strategic relationship with Shandong Weigao Group Medical Polymer Co. Ltd. (Weigao) in Shandong, China to manufacture critical care products in China. JW Medical Systems Ltd. (JWMS), a 50:50 joint venture, was formed. JWMS was a DES manufacturer based in Weihai, Shandong Province. Weigao offered manufacturing and cost advantages in China as well as a strong distribution network.2 The core product for JWMS was the Excel DES, which was the first stent in China with a biodegradable polymer coating. In less than a year after commercialisation of its Excel DES, JWMS reported sales of 1 No Longer Just One Nice Stent. (2012, February 6). CIMB Research Report. 2 ibid. This document is authorized for use only in Dr Dharmendra Naidu's ACC2100 & ACF2100 Semester 2 2021 at Monash University from Aug 2021 to Feb 2022. Page 3 ABCC-2014-009 approximately US$20 million and net income of approximately US$8.5 million.3 By August 2008, JWMS had become the third largest DES player in China in terms of market share. In BIG’s 2007 news release, Mr Lu Yoh Chie, Chairman and CEO of BIG, said: The quality of the Excel stent, JWMS’s strong Chinese distribution network and the rapidly growing market in China position JWMS for continued growth. On 3 October 2011, BIG acquired the remaining 50% interest in JWMS from Weigao through a cash and stock deal (including convertible notes). The consideration for the 50% equity interest acquired was US$478 million.4 Weigao reported an accounting gain of RMB2.6 billion (approximately US$421 million) from the disposal of its 50% share in JWMS to BIG.5 Upon successful completion of the transaction, JWMS became a fully owned subsidiary of BIG, while Weigao owned 21.6% of BIG upon full conversion of the notes and became BIG’s single largest shareholder. (See Exhibit 2 – Corporate Structure of BIG as at 31 March 2012; and Exhibit 3 – Substantial Shareholders as at 13 June 2012.) The restructuring provided BIG with greater access to the China market, and at the same time allowed Weigao to leverage BIG’s international experience and sales network to sell its cardiology consumables.6 BIG’s press release on 3 October 2011 on the acquisition of JWMS said:7 Coronary artery disease (CAD) is the second-biggest killer in China, accounting for 20% of all deaths in 2009. More than 95% of percutaneous coronary intervention (PCI) procedures, commonly known as coronary angioplasty, use a DES. Three-quarters of DES are manufactured domestically. The overall China market is currently estimated at close to half a billion US dollars and is expected to continue to grow rapidly in coming years. ‘We now have a unique opportunity for Biosensors to become a major player in China’s substantial and rapidly growing DES market,’ commented Biosensors Co-CEO Jack Wang. ‘In addition to JWMS’s current product range, we can use their established distribution network and domestic manufacturing capability to introduce Biosensors product lines in China. With Weigao’s active involvement in Biosensors, we also gain access to the resources and expertise of one of China’s leading medical device companies.’ ‘The deal is not only good news for Biosensors in China, but also for our other global markets,’ added Biosensors Co-CEO Jeffrey B. Jump. ‘It provides us with an additional manufacturing facility to service global demand, as well as giving us access to Weigao’s complete product range outside China.’ A report by OCBC Investment Research on 14 June 2011 outlined BIG’s rationale for the acquisition:8 3 Biosensors International Group. Biosensors Announces Agreement to Acquire Fifty Percent of JW Medical Systems Limited. (2007, August 10). Retrieved March 15, 2014 from http://biosensors.listedcompany.com/ newsroom/Press_Release_JWMSL_Acquisition.pdf. 4 BIG reported its share of profit in JWMS at USD 19 million for the financial year ending 31 March 2011. The payment of US$478 million for the remaining 50% means that JWMS was valued at approximately 25x JWMS FY2011 profit after tax. 5 Shandong Weigao Group Medical Polymer Company Limited. (2011). Annual Report. 6 No Longer Just One Nice Stent. (2012, February 6). CIMB Research Report. 7 Biosensors International Group. JWMS Now Wholly-Owned Subsidiary of Biosensors: Weigao Becomes Key Shareholder. (2011, October 3). Retrieved March 15, 2014 from http://www.biosensors.com/intl/sites/ default/files/pdfs/newsroom/press/jwms_completion_news_update_3.10.11.pdf 8 Biosensors International Group. (2011, June 14). OCBC Investment Research. This document is authorized for use only in Dr Dharmendra Naidu's ACC2100 & ACF2100 Semester 2 2021 at Monash University from Aug 2021 to Feb 2022. Page 4 ABCC-2014-009 Management believes that China is one of the fastest growing DES markets in the world, with industry sources estimating the current market size to be worth approximately US$500 m. The new healthcare reform initiative by the Chinese government has also allowed stent treatment to be reimbursable under China’s basic medical insurance coverage. This would likely result in lower costs and increase the demand for stent treatments. Moreover, the changing demographics in China towards an ageing population and increasing prevalence of coronary diseases also augurs well for the DES market. Hence this acquisition is in line with BIG’s strategy to expand and consolidate its DES business in China. Nevertheless, we note that the industry is undergoing ASP9 erosion due to increasing competition although this should be mitigated by strong volume growth. THE MEDICAL DEVICE INDUSTRY FOR CARDIOLOGY AND CRITICAL CARE PROCEDURES BIG’s primary product, coronary stents, were used during coronary balloon angioplasty to treat Coronary Artery Disease (CAD).10 CAD occurs when coronary arteries become narrowed or blocked by plaque. Over time, the arteries become hardened and less flexible resulting in the heart not getting the oxygen it needs. This could ultimately lead to chest pain and heart attack. There are several treatment options for CAD. Current treatments range from drug therapy to surgical intervention to restore the flow of oxygen to the heart. The aim of these therapies is to dilate the coronary vessels and increase blood supply to the heart. Current procedures used to treat CAD include stenting, balloon angioplasty and bypass surgery.11 Bypass surgery is considered more effective in some cases, but is invasive and costly. Balloon angioplasty, also known as Percutaneous Coronary Intervention (PCI), is a non-surgical procedure used to treat CAD. During PCI, a catheter containing a small balloon is inserted into arteries around the heart. The balloon is inflated, enlarging the inner diameter of the artery and increasing the blood flow. The balloon is then deflated and the catheter is removed. In the 1980s, PCI was taken one step further with the use of stents. A stent is a tiny, expandable metal coil that is inserted into the newly opened area of the artery following PCI, to help keep the artery from narrowing, closing or being blocked again (restenosis). Stenting reduces the rate of restenosis considerably, and the use of DES further reduces the rate of restenosis. The DES technology was introduced in the early 2000s and built on the use of bare-metal stent by coating drugs on them.12 With this technology, the drugs in the coating are slowly released into the artery wall around the stent to limit scar tissues during the healing process.13 The pros and cons of the treatment options for CAD are summarised in Exhibit 4 – Treatment Options for CAD. Approximately four million cases of PCI were conducted around the world annually in the 2010s. 14 According to Millennium Research Group, the overall Asia Pacific interventional cardiology market was expected to grow at a strong average rate of 12% per year through 2017. Most of this growth would come 9 Average selling price. 10 Yatsko, P. (2011). Biosensors International and China (A). Singapore-Stanford Biodesign Program Case. Retrieved March 15, 2014 from http://biodesign.stanford.edu/bdn/resources/casestudies/chin-01- A_biosensors_111812.pdf. 11 No Longer Just One Nice Stent. (2012, February 6). CIMB Research Report. 12 Yatsko, P. (2011). Biosensors International and China (A). Singapore-Stanford Biodesign Program Case. Retrieved March 15, 2014 from http://biodesign.stanford.edu/bdn/resources/casestudies/chin-01- A_biosensors_111812.pdf. 13 No Longer Just One Nice Stent. (2012, February 6). CIMB Research Report. 14 Deutsche Bank Markets Research. (2013, February 13). Competitive DES Launches in Near Term. This document is authorized for use only in Dr Dharmendra Naidu's ACC2100 & ACF2100 Semester 2 2021 at Monash University from Aug 2021 to Feb 2022. Page 5 ABCC-2014-009 from increased number of procedures in China and India, while procedural growth in Australia and South Korea will be flat.15 Market data also showed growing demand for DES within Asia Pacific outside of Japan. In the case of China, increasing urbanisation, disposable income and consumer purchasing power with a rapidly greying population, together with rising government expenditure in healthcare contributed to brisk growth in the country’s medical device market.16 In 2008, there were more than 180,000 PCI surgical cases in China. Stents used in PCI surgeries increased to 298,000 sets in 2008 from 40,000 sets in 2002.17 Market research firm Frost & Sullivan predicted China’s coronary stent market to expand at a 2007–2014 compound annual growth rate of 24%, with DES, used in 95% of cases, slated to dominate sales.18 Competition in the DES market in China was intense with a number of strong local competitors such as Ji Wei and Lepu Medical. Local companies tended to offer considerably cheaper devices, and had good long- term relationships with hospitals and doctors. Foreign companies were increasingly trying to level the playing field by creating local manufacturing and training centres, expanding their sales force, and through mergers and acquisitions.19 Furthermore, there was severe criticism about the extraordinary profit margin in the industry. 20 From early 2010s, to control healthcare costs, the Chinese government required hospitals to procure high-value devices through competitive tenders, which contributed to downward pressure on prices of these medical devices. Analysts expected that this ongoing tendering process would force a price reduction of 15–20% by mid-2010s, which would in turn impact the margin.21 POST-ACQUISITION FINANCIAL STATEMENTS AND ANALYSIS Matthew studied BIG’s annual report for FY2012 which showed the consolidated effects after the acquisition of JWMS. The balance sheets as at 31 March 2012 reported US$162 million of intangible assets and US$622 million of goodwill. Together, these two items constituted 95% of BIG’s non-current assets and 70% of its net assets as reported in the balance sheets. (See Exhibits 5, 6 and 7.) He further scrutinised the notes to the financial statements, which provided further details of these assets – US$156 million of intangible assets and US$608 million of goodwill – arising from consolidation were recognised following the acquisition of JWMS. He noted that BIG had performed an impairment review of the goodwill arising from the acquisition of JWMS and concluded that no impairment charge was necessary. (See Exhibit 8 – Excerpts from Notes to Financial Statements.) 15 Millennium Research Group. (2012, December). Asia Pacific Interventional Cardiology Market to Grow at a Strong Annual Rate of 12 Percent through 2017. 16 Yatsko, P. (2011). Biosensors International and China (A). Singapore-Stanford Biodesign Program Case. Retrieved March 15, 2014 from http://biodesign.stanford.edu/bdn/resources/casestudies/chin-01- A_biosensors_111812.pdf 17 Huidian Research. (2013). Research and Development Forecast of China’s Coronary Stent Industry, 2013–2017. Retrieved March 15, 2014 from http://www.reportbuyer.com/business_government/ misc_business_services/research_development_forecast_china_s_coronary_stent_industry_2013_2017.html#utm _source=prnewswire&utm_medium=pr&utm_campaign=Research_and_Development. 18 Yats Yatsko, P. (2011). Biosensors International and China (A). Singapore-Stanford Biodesign Program Case. Retrieved March 15, 2014 from http://biodesign.stanford.edu/bdn/resources/casestudies/chin-01- A_biosensors_111812.pdf 19 Millennium Research Group. (2012, December). Asia Pacific Interventional Cardiology Market to Grow at a Strong Annual Rate of 12 Percent through 2017. 20 China Youth. (2012, October 14). Half of the stents are not reasonably placed or priced. Retrieved March 15, 2014, from http://zqb.cyol.com/html/2012-10/14/nw.D110000zgqnb_20121014_2-02.htm. 21 OCBC Investment Research. (2013, April 9). Challenges Apparent, but Seeking Market Share Gains. This document is authorized for use only in Dr Dharmendra Naidu's ACC2100 & ACF2100 Semester 2 2021 at Monash University from Aug 2021 to Feb 2022. Page 6 ABCC-2014-009 Matthew was aware that overpaying for acquisitions was a key risk confronting many companies. He recalled reading a report by KPMG:22 Recent years have been characterised by continuously high M&A activity with business combinations offering companies a way of increasing and stabilising their earnings. As a result, businesses have sold at high prices. However, as well as opportunities, acquisitions have also presented risks. As an accounting consequence of their purchases, many companies have recognised high values of intangible assets, such as customer relationships, technology, brands and goodwill on their balance sheets. In some cases, these values even exceeded the amount of equity. For these purchasers there will be a significant negative impact on earnings in future periods due to the scheduled amortisation of intangible assets arising from their acquisitions. Furthermore, there is a possibility that any goodwill arising from the business combination may be considered impaired in future periods, with the associated impairment charge reducing earnings further. Matthew checked the closing share price of BIG for the day (2 July 2012) and noted that it was S$1.23. With 1,723 million shares outstanding, he computed BIG’s market value at S$2,119 million as at 2 July 2012, which translated to US$1,670 million, with an exchange rate of S$1.2686/US$ as at 2 July 2012.23 He extracted the 52-week (July 2011 to July 2012) share price range (Yahoo! Finance) for BIG. At a price range between S$1.09 to S$1.70, the implied range of market value for BIG within this period was S$1,878 million to S$2,929 million (US$1,480 million to US$2,309 million). He compared this with the net book value per the annual report for FY2012. Matthew decided to take a closer look into the acquisition of JWMS so as to better understand the assets that were acquired and how the transaction was accounted for in the financial statements of BIG. In particular, he felt that special attention should be given to the impairment review of the goodwill arising from the acquisition of JWMS since it was a highly significant amount and impairment reviews were highly judgemental processes. 22 KPMG. (2010). Intangible Assets and Goodwill in the Context of Business Combinations an Industry Study. KPMG AG Wirtschaftsprüfungsgesellschaft. 23 International Monetary Fund. Retrieved March 15, 2014 from https://www.imf.org/external/np/fin/data/ rms_mth.aspx?SelectDate=2012-07-31&reportType=CVSDR This document is authorized for use only in Dr Dharmendra Naidu's ACC2100 & ACF2100 Semester 2 2021 at Monash University from Aug 2021 to Feb 2022. Page 7 ABCC-2014-009 EXHIBIT 1 PRINCIPAL PRODUCTS OF BIG Source: No Longer Just One Nice Stent. (2012, February 6). CIMB Research Report. The table below shows the Group’s revenue and the principal components of the revenue, as a percentage of total revenue, for the respective years indicated: FY2012 FY2011 US$’000 % US$’000 % Critical care 14,624 5 12,988 8 Interventional cardiology 196,739 67 126,434 81 Total product revenue 211,363 72 139,422 89 Licensing revenue 80,778 28 17,171 11 Total revenue 292,141 100 156,592 100 Source: BIG. (2011/12). Annual Report, p 10. This document is authorized for use only in Dr Dharmendra Naidu's ACC2100 & ACF2100 Semester 2 2021 at Monash University from Aug 2021 to Feb 2022. Page 8 ABCC-2014-009 Interventional cardiology $’000 Critical care $’000 Licensing revenue $’000 Total $’000 2012 Segment revenue 196,739 14,624 80,778 292,141 Segment gross profit 147,748 6,043 80,778 234,569 Segment results 33,497 (8,258) 80,778 106,017 Unallocated corporate income 279,724 Unallocated corporate expenses (24,278) Financial income 2,178 Financial expenses (6,022) Share of results of joint-venture company 8,012 Profit before tax 365,631 Income tax (1,363) Net profit for the year 364,268 Source: BIG. (2011/12). Annual Report, p 125. This document is authorized for use only in Dr Dharmendra Naidu's ACC2100 & ACF2100 Semester 2 2021 at Monash University from Aug 2021 to Feb 2022. Page 9 ABCC-2014-009 EXHIBIT 2 CORPORATE STRUCTURE OF BIG AS AT 31 MARCH 2012 Source: BIG. (2011/12). Annual Report. This document is authorized for use only in Dr Dharmendra Naidu's ACC2100 & ACF2100 Semester 2 2021 at Monash University from Aug 2021 to Feb 2022. Page 10 ABCC-2014-009 EXHIBIT 3 SUBSTANTIAL SHAREHOLDERS (AS SHOWN IN THE REGISTER OF SUBSTANTIAL SHAREHOLDERS) AS AT 13 JUNE 2012 Direct Interest Deemed Interest Name of Substantial Shareholders No. of Shares % No. of Shares % 1. Weigao Holding Company Limited(a) - - 370,000,000 21.47 2. Shandong Weigao group Medical Polymer Company Limited(b) - - 370,000,000 21.47 3. Weigao International Medical Company Limited(c) - - 370,000,000 21.47 4. Wellford Capital Limited - - 370,000,000 21.47 5. Autumn Eagle Limited 269,312,200 15.63 - - 6. Hony Capital Fund 2008 LP.(d) - - 269,312,200 15.63 7. Hony Capital Fund 2008 GP LP.(e) - - 269,312,200 15.63 8. Hony Capital Fund 2008 GP Limited(f) - - 269,312,200 15.63 9. Hony Capital Fund Management Limited(g) - - 269,312,200 15.63 10. Right Lane Limited(h) - - 269,312,200 15.63 11. Legend Holdings Limited(i) - - 269,312,200 15.63 12. John Zhao(j) - - 269,312,200 15.63 13. Atlantis Capital Holdings Limited(k) - - 130,346,000 7.56 14. Ever Union Capital Limited 108,162,900 6.28 - - (1) FMR LLC; (2) FIL Limited; and (3) Edward C. Johnson 3rd(l) - - 99,004,000 5.75 Notes: (a) Weigao Holding Company Limited (Weigao Holding) owns about 49.5% of Shandong Weigao Group Medical Polymer Company Limited (Shandong Weigao) which owns 100% of equity interest in Weigao International Medical Company Limited and Wellford Capital Limited. Weigao Holding is therefore deemed interested in the 370,000,000 shares which in turn owns 100% of Wellford Capital Limited. (b) Shandong Weigao Group Medical Polymer Company Limited (Shandong Weigao) owns 100% of Weigao International Medical Company Limited (Weigao International) which in turn owns 100% of Wellford Capital Limited. Shandong Weigao is therefore deemed interested in the 370,000,000 shares held by Wellford Capital Limited. (c) Weigao International Medical Company Limited (Weigao International) owns 100% of Wellford Capital Limited. Weigao International is therefore deemed interested in the 370,000,000 shares held by Wellford Capital Limited. This document is authorized for use only in Dr Dharmendra Naidu's ACC2100 & ACF2100 Semester 2 2021 at Monash University from Aug 2021 to Feb 2022. Page 11 ABCC-2014-009 (d) Hony Capital Fund 2008 L.P. owns 100% of Autumn Eagle Limited. Accordingly, Hony Capital Fund 2008 L.P. is deemed interested in the shares held by Autumn Eagle Limited. (e) Hony Capital Fund 2008 GP L.P. is the general partner of Hony Capital Fund 2008 L.P. which in turn owns 100% of Autumn Eagle Limited. Accordingly, Hony Capital Fund 2008 L.P. is deemed interested in the shares held by Autumn Eagle Limited. (f) Hony Capital Fund 2008 GP Limited is the general partner of Hony Capital Fund 2008 GP L.P., which in turn is the general partner of Hony Capital Fund 2008 GP L.P. Hony Capital Fund 2008 L.P. owns 100% of Autumn Eagle Limited. Accordingly, Hony Capital Fund 2008 GP Limited is deemed interested in the shares held by Autumn Eagle Limited. (g) Hony Capital Management Limited has a controlling interest in Hony Capital Fund 2008 GP Limited which in turn is the general partner of Hony Capital Fund 2008 L.P. Hony Capital Fund 2008 GP L.P. is the general partner of Hony Capital Fund 2008 L.P. which in turn owns 100% of Autumn Eagle Limited. Accordingly, Hony Capital Management Limited is deemed interested in the shares held by Autumn Eagle Limited. (h) Right Lane Limited has a shareholding interest in Hony Capital Management Limited which in turn has a controlling interest in Hony Capital Fund 2008 GP Limited. Hony Capital Fund 2008 GP Limited is the general partner of Hony Capital Fund 2008 GP L.P. Hony Capital Fund 2008 GP L.P. is the general partner of Hony Capital Fund 2008 L.P. which in turn owns 100% of Autumn Eagle Limited. Accordingly, Right Lane Limited is deemed interested in the shares held by Autumn Eagle Limited. (i) Legend Holdings Limited owns 100% of Right Lane Limited. Right Lane Limited has a shareholding interest in Hony Capital Management Limited which in turn has a controlling interest in Hony Capital Fund 2008 GP Limited. Hony Capital Fund 2008 GP Limited is the general partner of Hony Capital Fund 2008 GP L.P. Hony Capital Fund 2008 GP L.P. is the general partner of Hony Capital Fund 2008 L.P. which in turn owns 100% of Autumn Eagle Limited. Accordingly, Legend Holdings Limited is deemed interested in the shares held by Autumn Eagle Limited. (j) John Zhao is the Chief Executive Officer of Hony Capital. Mr Zhao has a shareholding interest in Hony Capital Management Limited which in turn has a controlling interest in Hony Capital Fund 2008 GP Limited. Hony Capital Fund 2008 GP Limited is the general partner of Hony Capital Fund 2008 GP L.P. Hony Capital Fund 2008 GP L.P. is the general partner of Hony Capital Fund 2008 L.P. which in turn owns 100% of Autumn Eagle Limited. Accordingly, Mr Zhao is deemed interested in the shares held by Autumn Eagle Limited. (k) Atlantis Capital Holdings (Atlantis) is deemed to be interested in the 130,346,000 shares held in discretionary accounts managed by Atlantis. (l) FID FDS – SOUTHEAST ASIA POOL; FID FDS – ASEAN POOL; FID FDS – PACIFIC POOL; FIDELITY SOUTH EAST ASIA FUND; FID FDS – SINGAPORE POOL; FA INT SOUTH EAST ASIA SUB; FID INFORMTN TECH CENTRAL FD; FID KOREA ASEAN EQ IT MTHR; SELECT TECHNOLOGY; FIJ IT JPN ASIA GROWTH MOTHER; VIP TECHNOLOGY PORTFOLIO; FA TECHNOLOGY FUND; FID PACIFIC BASIN FUND FIDELITY CHINA SPECIAL SIT PLC and FID FDS – ASIAN SMALLER COS PL are deemed interested in the shares held by (1) FMR LLC; (2) FIL Limited; and (3) Edward C. Johnson 3d. Source: BIG. (2011/12). Annual Report, p 130. This document is authorized for use only in Dr Dharmendra Naidu's ACC2100 & ACF2100 Semester 2 2021 at Monash University from Aug 2021 to Feb 2022. Page 12 ABCC-2014-009 EXHIBIT 4 TREATMENT OPTIONS FOR CAD Treatment Options for CAD Procedure Advantages Disadvantages Coronary Bypass Surgery During coronary artery bypass surgery, the …