Annual Report 2023

189 ANNUAL REPORT 2023 37. DISPOSAL OF A SUBSIDIARY For the year ended 31 December 2023 In August 2023, the Group completed the disposal of its entire 45% equity interest in Ningbo Daxie China Merchants International Terminals Co., Ltd. (“Ningbo Daxie”), a non-wholly-owned subsidiary of the Company, to Ningbo Zhoushan Port Company Limited for a total cash consideration of approximately RMB1,845 million (equivalent to approximately HK$2,021 million (the “Disposal”). Upon completion of the Disposal, Ningbo Daxie ceased to be a subsidiary of the Company. The net assets of Ningbo Daxie at the date of disposal were as follows: HK$’million Analysis of assets and liabilities of Ningbo Daxie over which control was lost: Property, plant and equipment (note 16) 2,634 Right-of-use assets 1,233 Debtors, deposits and prepayments 167 Cash and bank balances 35 Other financial assets 20 Inventories 10 Deferred tax liabilities (note 33) (424) Creditors and accruals (110) Other non-current liabilities (28) Taxation payable (7) Net assets disposed of 3,530 Gain on disposal: Consideration 2,021 Net assets disposed of (3,530) Non-controlling interests 1,941 Goodwill (note 15) (206) Cumulative reserves reclassified from equity to profit or loss upon disposal (109) Costs directly attributable to the disposal (2) Gain on disposal 115 Net cash inflow arising on disposal: Cash consideration received during the year 2,021 Less: Cash and bank balances disposed of (35) Payment of tax arising on disposal (143) Payment of costs attributable to the disposal (2) 1,841