Annual Report 2021

ANNUAL REPORT 2021 191 39. OBTAINING CONTROL OF A NON-WHOLLY OWNED SUBSIDIARY (CONTINUED) For the year ended 31 December 2020 (continued) Gain on discontinuance of equity accounting for a joint venture (continued) Goodwill arose on obtaining control of Daxie Port because the cost of the combination included a control premium and the future profitability as at the date of obtaining control. These benefits were not recognised separately from goodwill because they did not meet the recognition criteria for identifiable intangible assets. Included in the profit and revenue of the Group for the year ended 31 December 2020 were net profit of HK$31 million and revenue of HK$83 million generated by Daxie Port. Had the above combination been completed on 1 January 2020, total group revenue for the year ended 31 December 2020 would have been HK$9,812 million, and profit for the year ended 31 December 2020 would have been HK$6,192 million. The pro forma information is for illustrative purposes only and is not necessarily an indication of revenue and results of operations of the Group that actually would have been achieved had the combination been completed on 1 January 2020, nor is it intended to be a projection of future results. In determining the ‘pro-forma’ revenue and profit of the Group had the combination been completed at the beginning of 2020, the directors of the Company had: ‧ calculated depreciation of property, plant and equipment acquired on the basis of the fair values arising in the accounting for the acquisition rather than the carrying amounts recognised in the pre-acquisition financial statements; and ‧ determined borrowing costs based on the funding levels, credit ratings and debt/equity position of the Group after the combination. 40. COMMITMENTS AND CONTINGENT LIABILITIES (a) Capital commitments for property, plant and equipment and intangible assets that are contracted but not provided for 2021 2020 HK$’million HK$’million Group Property, plant and equipment and intangible assets 1,482 2,348 Joint ventures Property, plant and equipment 56 23 1,538 2,371 (b) Capital commitments for investments that are contracted but not provided for 2021 2020 HK$’million HK$’million Group Ports projects 6 1,194 Joint Ventures Land development project 220 —