ESR AR 2019 EN

Notes to the Consolidated Financial Statements 31 December 2019 204 Focused 32. DISPOSAL GROUP HELD FOR SALE In October 2019, the Group, through its wholly-owned subsidiary Redwood Phoenix China Investment Fund Pte. Ltd. (“RPCIF”), entered into a sale and purchase agreement to divest 65% equity interest in Mingyue Logistics Pte. Ltd. (“Mingyue Logistics”) and its subsidiary Guangzhou Mingyue Warehousing Co., Ltd. (“Guangzhou Mingyue”). The divestment is expected to be completed within the next financial year. Accordingly, all the assets and liabilities held by Mingyue Logistics and Guangzhou Mingyue were reclassified as disposal group held for sale as at 31 December 2019. Details of assets and liabilities classified as held for sale as at 31 December 2019 are as follows: As at 31 December 2019 Notes USD’000 Assets Property, plant and equipment 2 Investment properties 19 83,519 Prepayments, other receivables and other assets 215 Cash and cash equivalents 10,195 Assets classified as held for sale 93,931 Liabilities Bank and other borrowings 26 14,672 Trade payables, accruals and other payables 6,184 Income tax payable 115 Deferred tax liabilities 286 Liabilities directly associated with the assets classified as held for sale 21,257 Net assets directly associated with the disposal group 72,674 Profit for the year from the disposal group was USD3,035,000. As at 31 December 2019, the bank and other borrowings of USD14,672,000 bears fixed interest rate of 5.225% per annum with maturity in year 2022. The loan will become payable within one year after the completion of divestment. The investment property with a fair value of USD83,519,000 was pledged to secure bank and other borrowings granted to Guangzhou Mingyue. The fair value of the investment properties under the disposal group held for sale as at 31 December 2019 was measured based on the agreed transaction price (Level 2).