Annual Report 2019

222 CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED Notes to the Consolidated Financial Statements For the year ended 31 December 2019 40. ACQUISITION OF SUBSIDIARIES (CONTINUED) For the year ended 31 December 2018 (Continued) Had the TCP Acquisition been completed on 1 January 2018, total group revenue for the year ended 31 December 2018 would have been HK$10,287 million, and profit for the year ended 31 December 2018 would have been HK$7,976 million. The pro forma information is for illustrative purposes only and is not necessarily an indication of revenue and results of operations of the Group that actually would have been achieved had the TCP Acquisition been completed on 1 January 2018, nor is it intended to be a projection of future results. In determining the ‘pro-forma’ revenue and profit of the Group had the TCP Acquisition been completed at the beginning of 2018, the directors of the Company had: • calculated depreciation of property, plant and equipment and amortisation of intangible assets acquired on the basis of the fair values arising in the accounting for the acquisition rather than the carrying amounts recognised in the pre- acquisition financial statements; and • determined borrowing costs based on the funding levels, credit ratings and debt/equity position of the Group after the acquisition. 41. ACQUISITION OF ASSETS THROUGH ACQUISITION OF A SUBSIDIARY For the year ended 31 December 2018 In September 2018, a non-wholly-owned subsidiary of the Company completed the acquisition of an additional 80% equity interest in Shenzhen Haixing Xiaoyetian Logistics Development Company Limited (“Shenzhen Xiaoyetian”) from an independent third party (the “Xiaoyetian Acquisition”). After the Xiaoyetian Acquisition, the Group’s equity interest in Shenzhen Xiaoyetian had increased from 20% to 100%. Shenzhen Xiaoyetian was previously recognised as a financial asset at FVTPL. The total cash consideration was RMB133 million (equivalent to approximately HK$153 million). The transaction was accounted for as acquisition of assets during the year ended 31 December 2018 as the acquisition did not meet the definition of business combination. HK$’million Consideration Cash 153 Fair value of previously held equity interest in Shenzhen Xiaoyetian 49 Total consideration 202