Annual Report 2021

CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED 162 Notes to the Consolidated Financial Statements For the year ended 31 December 2021 31. OTHER RESERVES (CONTINUED) Investment Capital revaluation Translation Statutory reserve reserve reserve reserves Total HK$’million HK$’million HK$’million HK$’million HK$’million (Note) As at 1 January 2020 597 279 (2,836) 2,977 1,017 OTHER COMPREHENSIVE INCOME Exchange differences from retranslation of investments in subsidiaries, associates and joint ventures — — 3,934 — 3,934 Release of reserves upon obtaining control of a non-wholly owned subsidiary — — (87) — (87) Share of reserves of associates and a joint venture — 12 — — 12 Other comprehensive income for the year, net of tax — 12 3,847 — 3,859 TRANSACTIONS WITH OWNERS Transfer from retained earnings — — — 348 348 Disposal of interests in subsidiaries to non- controlling equity holders without losing control therein 296 — — — 296 Acquisition of additional interests in subsidiaries (527) — (61) — (588) Obtaining control of a non-wholly owned subsidiary (4) — — (80) (84) Contribution from immediate holding company 17 — — — 17 Share of other changes in equity attributable to equity holders of associates 57 — — — 57 Total transactions with owners for the year (161) — (61) 268 46 As at 31 December 2020 436 291 950 3,245 4,922 Note: Amount mainly represents statutory reserve of the Group’s subsidiaries in the PRC. According to the relevant laws in the PRC, the Group’s subsidiaries established in the PRC are required to transfer at least 10% of their net profit after taxation, as determined under the PRC accounting regulations, to a non-distributable reserve fund until the reserve balance reaches 50% of their registered capital. The transfer to this reserve must be made before the distribution of a dividend to equity owners. Such reserve fund can be used to offset the previous years’ losses, if any, and is non-distributable other than upon liquidation.