ESR Group Limited Annual Report 2023 213 Notes to the Consolidated Financial Statements 31 December 2023 36. DISPOSAL OF SUBSIDIARIES (continued) Dongguan Hongshang Pursuant to the Company’s announcements on 27 November 2023, certain wholly-owned subsidiaries of the Company entered into equity transfer agreements to dispose 100% interest in six stabilised logistics and warehousing facilities (“stabilised assets”) in China to RMB Income Fund. Following completion of the transaction, the Group continues to maintain an interest in the RMB Income Fund and acts as the investment manager of the RMB Income Fund and asset manager of its property assets and earns management fees for such services. As of 31 December 2023, the disposal of two out of six stabilised assets have been completed. The details of assets and liabilities deconsolidated on disposal date are as follows. US$’000 Net assets disposed of: Investment properties 134,042 Cash and bank balances 2,510 Other assets 11,092 Bank and other borrowings (18,107) Other liabilities (27,611) 101,926 Exchange fluctuation reserve 3,431 Gain on disposal of subsidiaries 21,954 127,311 Satisfied by: Other receivables 127,311 An analysis of the net outflow of cash and cash equivalents in respect of the disposal of subsidiaries is as follows: US$’000 Cash consideration — Cash and bank balances of subsidiaries disposed of (2,510) Net outflow of cash and cash equivalents included in cash flows related to investing activities (2,510) CORPORATE GOVERNANCE FINANCIAL STATEMENTS STRATEGIC REPORTS
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