directors of Energy Food, as well as its Chief Executive Officer and Chief Financial Officer. - There are no outstanding intragroup receivables or payables. - Tax rate is 16.5%. Ignore any deferred tax arising from consolidation. The following is the financial information in relation to Health Express, Diamond Water and Energy Food as at 31 December 2023: Health Express Limited ("Health Express") is a company listed on the Main Board in Hong Kong and is principally engaged in the production and distribution of health products. Health Express and its subsidiaries ("the Group") have a financial year end date at 31 December. Subsidiary 1: Diamond Water Limited On 1 April 2011, HEL acquires a 80\% interest in Diamond Water Limited ("Diamond Water") for HK\$250 million when the equity of Diamond Water at the acquisition date was: The carrying amounts of assets and liabilities of Diamond Water are the same as their fair values all the time. Subsidiary 2: Energy Food Limited On 1 January 2023, Health Express acquires a 35\% interest in Energy Food Limited ("Energy Food') for cash consideration of HKS92 million. The remaining shareholdings in Energy Food are widely held, with no other shareholder holding more than a 0.1% interest in the company. In addition, Health Express holds share options to purchase another 5% of Energy Food from identified existing shareholders. The share options are in-the-money as at 31 December 2023 but are not exercisable before 1 May 2024. Health Express intends to exercise these share options once they become exercisable. At the time of acquisition, the equity of Energy Food was: Required: At the time of acquisition, the equity of Energy Food was: The carrying amounts of assets and liabilities of Energy Food are the same as their fair values all the time. Additional information: - The Group's policy is to measure the non-controlling interests (" NCls- ) at fair value. The fair values of NCIs of Diamond Water and Energy Food at acquisition date were $80 million and $175 million respectively. Page 3 - Included in the plant and machinery of Health Express is a machine bought from Diamond Water on 1 January 2022 for HKS40 million. The machine had an original cost of HKS50 million and its carrying amount was HK\$25 million on 1 January 2023. Health Express depreciates the machine on a straight-line basis over 10 years, with no residual value. - During the year ended 31 December 2023, Health Express sold to Energy Food some inventory for HKS85 million while the inventory costed HKS70 million Health Express. Energy Food sold 40% of the inventory to third parties outside the group and still had 60% of the inventory on hand at 31 December 2023. - The retained earnings of Health Express and Diamond Water as at 1 January 2023 (i.e. opening retained earnings) were HK $310 million and HKS189 million respectively. - Health Express is entitled to and has appointed five of the eight directors on the board of directors of Energy Food, as well as its Chief Executive Officer and Chief Financial Officer