Annual Report 2019

238 CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED Notes to the Consolidated Financial Statements For the year ended 31 December 2019 47. STATEMENT OF FINANCIAL POSITION AND RESERVES OF THE COMPANY (CONTINUED) Note: The reserves of the Company at 31 December 2019 and 2018 are as follows: Capital Retained reserve earnings Total HK$’million HK$’million HK$’million (Note (i)) As at 1 January 2019 2,340 3,135 5,475 Profit and total comprehensive income for the year — 2,827 2,827 Dividends (Note (ii)) — (3,183) (3,183) As at 31 December 2019 2,340 2,779 5,119 Retained earnings as at 31 December 2019 representing: Reserves 779 Proposed dividend 2,000 2,779 As at 1 January 2018 2,340 4,088 6,428 Profit and total comprehensive income for the year — 1,712 1,712 Dividends (Note (ii)) — (2,665) (2,665) As at 31 December 2018 2,340 3,135 5,475 Retained earnings as at 31 December 2018 representing: Reserves 704 Proposed dividend 2,431 3,135 Notes: (i) The Company’s capital reserve, which arose in 1998 upon reduction of share premium as confirmed by the order of the High Court of the Hong Kong Special Administrative Region, is a non-distributable reserve and may be applied by the Company in paying up its unissued shares to be allotted to members of the company as fully paid bonus shares. (ii) Dividends recognised as distribution in the years are as follows: 2019 2018 HK$’million HK$’million Interim dividend of 22 HK cents (2018: 22 HK cents) per ordinary share 752 731 2018 final dividend of 73 HK cents (2018: 2017 final dividend of 59 HK cents) per ordinary share 2,431 1,934 3,183 2,665