Annual Report 2020

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2020 91 The United Laboratories International Holdings Limited Annual Report 2020 10. DISPOSAL OF A SUBSIDIARY (Continued) Note: The consideration receivables are measured at fair value at the date of disposal, based on the present value of the estimated future cash flow discounted using the effective interest rate of 12% per annum and carried at amortised cost subsequently. The effective interest rates were determined by the directors of the Company by reference to a valuation performed by WeValue. WeValue is an independent qualified professional valuer which is not connected with the Group. In determining the discount rate of the deferred considerations, the management of the Group has worked closely with WeValue to perform the valuation and establish the appropriate valuation techniques and inputs to the model in deriving an appropriate discount rate. The net assets at the date of disposal were as follows: Analysis of assets and liabilities of which control was lost: At 6 November 2019 RMB’000 Properties held for development (Note 19a) 255,723 Investment properties (Note 19b) 629,372 Deferred tax liabilities (Note 31) (212,685) Net assets disposed of 672,410 Gain on disposal of a subsidiary: Consideration receivables 873,693 Net assets disposed of (672,410) Other tax arising from the disposal (312) Transaction costs arising from the disposal (526) Gain on disposal 200,445 Cash inflow arising on disposal: Consideration received during the year ended 31 December 2019 100,000 Consideration received during the year ended 31 December 2020 300,000