Annual Report 2019

218 CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED Notes to the Consolidated Financial Statements For the year ended 31 December 2019 39. DISPOSAL OF SUBSIDIARIES For the year ended 31 December 2018 In June 2018, the Company completed the disposal of its entire approximately 34% equity interest in CMPG (formerly known as Chiwan Wharf Holdings Limited), a non-wholly-owned subsidiary of the Company whose A shares and B shares are listed on the Shenzhen Stock Exchange, to subsidiaries of CMG, for a total cash consideration of HK$5,410 million. During the year ended 31 December 2018, China Nanshan Development (Group) Incorporation (“China Nanshan”), an associate of the Company also completed the disposal of its entire approximately 33% equity interest in CMPG for a consideration of HK$6,510 million to another subsidiary of CMG. This transaction, together with the above disposal of the CMPG Group by the Group, are collectively referred to as the “Disposal”. The Company was entitled to exercise the management rights and has the power to direct the voting rights of the approximately 33% equity interest of CMPG held by China Nanshan pursuant to an entrustment agreement entered into with China Nanshan in previous years, which had been terminated upon the completion of the Disposal during the year ended 31 December 2018 pursuant to an agreement to terminate the said entrustment agreement. Accordingly, upon completion of the Disposal, CMPG Group ceased to be subsidiaries of the Company. HK$’million Analysis of the aggregate assets and liabilities of CMPG Group over which control was lost: Goodwill (note 16) 473 Intangible assets (note 16) 141 Property, plant and equipment (note 17) 3,950 Investment properties (note 19) 73 Land use rights (note 20) 1,023 Interests in associates 897 Other financial assets 180 Other non-current assets 345 Deferred tax assets 13 Inventories 21 Debtors, deposits and prepayments 548 Taxation recoverable 29 Cash and bank balances 584 Bank and other borrowings (1,304) Other non-current liabilities (223) Deferred tax liabilities (48) Creditors and accruals (432) Taxation payable (94) Net assets disposed of 6,176 Gain on the Disposal: Cash consideration 5,410 Interests in associates (Note) 2,595 Net assets disposed of (6,176) Non-controlling interests 2,677 Cumulative reserves reclassified from equity to profit or loss upon disposal 98 Costs directly attributable to the disposal (204) Gain on the Disposal 4,400