On October 31, 2023, the Group entered into a sale agreement to dispose of JAPAN HAI Co., Ltd, which was incorporated on September 15, 2023 and primarily engages in hotel management and operation and holds the license for developing hot springs in Japan. Prior to the incorporation of JAPAN HAI Co., Ltd, such hotel business and license were directly held by the Group’s subsidiary Haidilao Japan Co., Ltd. The disposal was completed on October 31, 2023, on which date control of JAPAN HAI Co., Ltd passed to the acquirer.


		2023
		USD’000
Non-current assets
Property, plant and equipment		13,840
Intangible assets		9
Deposit		29
Current assets
Trade and other receivables and prepayments		4,681
Current liabilities
Trade payables		(3)
Other payables		(562)
Net assets disposed off		17,994
Consideration received and net cash inflow arising on disposal
Cash		17,389
Loss on disposal
Consideration received		17,389
Net assets derecognized		(17,994)
Loss on disposal		605

The loss on disposal is included in the profit for the year recorded under “Other gains (losses) — net”.

The hotel business of JAPAN HAI Co., Ltd, which was held under Haidilao Japan Co., Ltd before September 15, 2023, contributed loss of USD1,319,000 for the year ended December 31, 2023. The impact to the Group’s profit (loss) for the year is not material.