Annual Report 2021

ANNUAL REPORT 2021 205 45. STATEMENT OF FINANCIAL POSITION AND RESERVES OF THE COMPANY (CONTINUED) Note: The reserves of the Company at 31 December 2021 and 2020 are as follows: Capital Retained reserve earnings Total HK$’million HK$’million HK$’million (Note) As at 1 January 2021 2,353 2,878 5,231 Profit and total comprehensive income for the year — 3,203 3,203 Contribution from immediate holding company 16 — 16 Reversal of contribution from immediate holding company (17) — (17) Dividends — (2,690) (2,690) As at 31 December 2021 2,352 3,391 5,743 Retained earnings as at 31 December 2021 representing: Reserves 665 Proposed dividend 2,726 3,391 As at 1 January 2020 2,340 2,779 5,119 Profit and total comprehensive income for the year — 2,748 2,748 Contribution from immediate holding company 13 — 13 Dividends — (2,649) (2,649) As at 31 December 2020 2,353 2,878 5,231 Retained earnings as at 31 December 2020 representing: Reserves 1,011 Proposed dividend 1,867 2,878 Note: 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.