ESR Interim Report 2020 (EN)

Notes to Condensed Consolidated Financial Information 30 June 2020 61 NOTES TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION ESR Interim Report 2020 18. DISPOSAL OF SUBSIDIARIES During the six months ended 30 June 2020, the Group through its wholly-owned subsidiaries, Gamma Offshore Holdings (BVI) Limited and Destiny offshore Holdings (BVI) Limited, entered into certain agreements with a joint venture of the Group to dispose of 100% interests in three operating subsidiaries namely Jieyang Yian Warehousing Services Co., Ltd., Wenzhou Yirui Warehousing Services Co., Ltd., and Pinghu Yixing Warehousing Services Co., Ltd.; 95% interests of Qingyuan Anqing Information Technology Development Co., Ltd., a subsidiary; and 90% interests of Fujian Pingfu Technology Development Company Limited, a subsidiary. US$’000 Net assets disposed of: Cash and bank balances 21,601 Prepayments, trade and other receivables and other assets 5,163 Investment properties 92,864 Deferred tax assets 329 Trade payables, accruals, other payables and income tax payable (107,414) Deferred tax liabilities (4,590) Non-controlling interests (1,969) 5,984 Exchange fluctuation reserve 6,623 Gain on disposal of subsidiaries 5,494 18,101 Satisfied by: Cash 19,812 Consideration payable (1,711) 18,101 An analysis of the net outflow of cash and cash equivalents in respect of the disposal of subsidiaries is as follows: US$’000 Cash consideration 19,812 Cash and bank balances of disposed subsidiaries (21,601) Net outflow of cash and cash equivalents included in cash flows used in investing activities (1,789) * Subsequent to the disposal, the Group holds 51% interest in the disposed subsidiaries, which is accounted as investment in joint venture.