Annual Report 2020

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the year ended 31 December 2020 43 The United Laboratories International Holdings Limited Annual Report 2020 Capital reserve represents the PRC statutory reserve which must be provided for before declaring dividends to the shareholders as approved by the board of directors in accordance with the PRC regulations applicable to the Company’s PRC subsidiaries until the fund reaches 50% of the registered capital of the respective subsidiaries. Included in special reserve is an amount of RMB203,263,000 which represents the portion of registered capital of the two PRC subsidiaries contributed by certain beneficial owners of the Company. The remaining amount of RMB73,837,000 represents the difference between the carrying amount of the non-controlling interests acquired and the fair value of considerations paid for acquisition of additional interests in subsidiaries in prior years. Revaluation reserve represents the fair value adjustments of certain land use rights of the Group situated in Chengdu, the PRC, attributable to the change of land use from owner-occupied lands to investment properties upon cessation of production together with associated deferred tax charge arising from the fair value change. The excess of fair value over the carrying value of lands is recognised as a revaluation surplus included in revaluation reserve in equity. The revaluation reserve was transferred to retained profits upon disposal of a subsidiary during the year ended 31 December 2019.