Annual Report 2020

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2020 90 The United Laboratories International Holdings Limited Annual Report 2020 10. DISPOSAL OF A SUBSIDIARY (Continued) Given that neither the Group has power over Chengdu Company and exposure or rights to variable returns from its involvement nor has any ability to direct the relevant activities that significantly affect the Chengdu Company’s return, the directors of the Company consider that the Group has lost the control in respect of Chengdu Company and has no significant influence over Chengdu Company for its remaining 33% equity interest and the Transaction is considered as a disposal of the 100% equity interest of Chengdu Company to Evergrande Chengdu on 6 November 2019 (i.e. the date of the Share Subscription) although the Group legally held 33% equity interest of Chengdu Company at 31 December 2019. During the year ended 31 December 2019, the first installment of RMB100,000,000 was received by the Group in December 2019 and the carrying amount of the consideration receivables is RMB760,310,000, with allowances for credit losses of approximately RMB13,383,000, with the consideration amount of RMB880,000,000 at 31 December 2019. During the year ended 31 December 2020, the remaining 33% Equity Interest of Chengdu Company has been transferred to Evergrande Chengdu and installments of RMB300,000,000 were settled by cash. Installment of RMB237,000,000 has been settled through commercial bills issued by Evergrande Chengdu and guaranteed by Evergrande Real Estate Group Limited that will be matured subsequent to the end of the reporting period (Note 43). The carrying amount of the consideration receivables is RMB263,679,000, with allowances for credit losses of approximately RMB44,709,000, with the consideration amount of RMB343,000,000 at 31 December 2020. 31/12/2020 31/12/2019 06/11/2019 Net Net Net Undiscounted carrying Undiscounted carrying Undiscounted carrying amount amount amount amount amount amount RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Consideration receivables: Cash consideration receivables within 12 months 171,500 158,000 537,000 483,947 637,000 597,330 Cash consideration receivables after 12 months 171,500 105,679 343,000 276,363 343,000 276,363 Total cash consideration receivables (Note) 343,000 263,679 880,000 760,310 980,000 873,693