Annual Report 2021

233 2021 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 34 Material related party transactions (continued) (c) Applicability of the Listing Rules relating to connected transactions (continued) The related party transaction as described in notes 34(a)(iv), 34(a)(vii) and 34(a)(viii) above constitute continuing connected transaction of the Company as defined in Chapter 14A of the Listing Rules. However, they are exempt from the disclosure requirements in Chapter 14A of the Listing Rules pursuant to Rule 14A.76. The related party transaction as described in notes 34(a)(v) and 34(a)(vi) above constitute connected transactions of the Company as defined in Chapter 14A of the Listing Rules. The relevant reporting requirements pursuant to Chapter 14A of the Listing Rules have been complied with by including disclosures in the Company’s annual report published immediately following the entering into of such transactions. 35 Partial disposal of a subsidiary resulting in loss of control On 9 November 2020, a subsidiary of the Company entered into a sale and purchase agreement with Mega Odyssey Limited, an indirect wholly-owned subsidiary of SHKP, to dispose of its 50% equity interest in TMPI for a total consideration of $750,512,000. The transaction was completed on 29 December 2020 (“date of disposal”). The assets and liabilities of TMPI at the date of disposal and a reconciliation to gain arising from the disposal are as follows: $’000 Investment properties (note 13(a)) 1,844 Deferred tax assets (note 28(b)) 21 Accounts receivable 843 Deposits and prepayments 170 Bank deposits and cash 5,777 Accounts payable and accruals (5,704) Current tax payable (note 28(a)) (83) Net assets disposed of 2,868 Gain arising from the disposal: Net assets disposed of (2,868) Professional charges (2,608) Cash consideration received 750,512 Retained interest at fair value 750,512 1,495,548 Net cash inflow arising from the disposal: Cash consideration received 750,512 Cash and cash equivalents disposed of (5,777) 744,735