Annual Report 2021

152 Notes to the Financial Statements Annual Report 2021 Miramar Hotel and Investment Company, Limited 10 Investment properties, other property, plant and equipment (Continued) (f) Impairment loss on other property, plant and equipment Indicators of impairment are identified in certain hotel, food and beverage outlets, travel branches and a freehold land for which each hotel/outlet/travel segment/land is identified as a single cash- generating unit (“CGU”). During the year, in view of the loss sustained by certain hotel, food and beverage outlets and travel segment and decline in valuation of a freehold land due to COVID-19, management considered indicators of impairment of other property, plant and equipment associated with these CGUs existed at 31 December 2021 and performed an impairment assessment thereon. Based on the impairment assessment conducted by management, impairment losses of HK$31,603,000 (2020: HK$34,237,000) were recognised in profit or loss during the year ended 31 December 2021. The aggregate recoverable amounts of certain food and beverage outlets, a hotel and a freehold land amounted to HK$51,650,000, HK$28,574,000 and HK$36,548,000, respectively. Apart from the above, the recoverable amounts of the remaining impaired other property, plant and equipment of the remaining food and beverage outlet and the travel segment were minimal. The recoverable amount is determined based on the higher of value-in-use and the fair value less costs of disposal. For certain hotel, food and beverage outlets and travel branches, the estimate of recoverable amounts were based on value-in-use calculations by adopting discounted cash flow forecast of each CGU with pre-tax discounted rate of 6.5% (2020: 5.5%) per annum. For the freehold land, the estimate of recoverable amount were based on its fair value less costs of disposal with capitalisation rate of 9%. 11 Investments in subsidiaries The following list contains only the particulars of subsidiaries which principally affected the results, assets or liabilities of the Group. All of these are subsidiaries as defined under note 1(d) and have been consolidated into the Group’s financial statements. Proportion of ownership interest Name of company Place of incorporation Place of operation Particulars of issued and paid up capital Group’s effective interest Held by the Company Held by a subsidiary Principal activity All Best Resources Limited Hong Kong The PRC HK$100 100% – 100% Property rental Chitat Construction Limited Hong Kong The PRC HK$10,000 100% 99% 1% Property rental Contender Limited Hong Kong Hong Kong HK$200,000 100% 100% – Hotel operation and property rental East Dragon Resources Limited Hong Kong The PRC HK$100 100% – 100% Property rental Glory Light Holdings Limited Hong Kong Hong Kong HK$1 100% 100% – Restaurant operation Grand City Resources Limited Hong Kong The PRC HK$100 100% – 100% Property rental How Light Investments Limited* Hong Kong The PRC HK$100,000 100% – 100% Property sale