Annual Report 2020

164 Notes to the Financial Statements Annual Report 2020 Miramar Hotel and Investment Company, Limited 22 Total equity (Continued) (a) Movements in components of equity (continued) The Company (continued) Share capital Capital reserve General reserve Retained profits Total HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 Balance at 1 January 2020 2,227,024 1,019,874 300,000 3,687,634 7,234,532 Changes in equity for 2020: Profit and total comprehensive income for the year – – – 1,052,519 1,052,519 Final dividends approved in respect of the previous year (note 7(b)) – – – (234,926) (234,926) Interim dividends declared in respect of the current year (note 7(a)) – – – (152,011) (152,011) Balance at 31 December 2020 2,227,024 1,019,874 300,000 4,353,216 7,900,114 (b) Share capital Issued share capital 2020 2019 No. of shares Amount No. of shares Amount HK$’000 HK$’000 Ordinary shares, issued and fully paid: At 1 January and 31 December 690,959,695 2,227,024 690,959,695 2,227,024 (c) Nature and purpose of reserves The capital reserve represents positive goodwill arose from acquisition of subsidiaries and associates prior to 1 January 2001 which was taken directly to equity on acquisition. The exchange reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign operations. The reserve is dealt with in accordance with the accounting policy set out in note 1(v). The application of the general reserve is in accordance with Article 117 of the Company’s Articles of Association.